HomeMy WebLinkAboutMinutes 1987-11-24 COUNTY SANITATION DISTRICT NO. 11
OF ORANGE COUNTY, CALIFORNIA
MINUTES OF ADJOURN REGULAR MEETING
November 24, 1987 - 5:30 p.m.
10844 Ellis Avenue
Fountain Valley, California
Pursuant to adjournment of the regular meeting of November 18, 1987, the Board
of Directors of County Sanitation District No. 11 of Orange County, California,
met in an adjourned regular meeting at the above hour and date.
The Chairman pro tem called the meeting to order at 5:42 p.m. The roll was
called and the Secretary reported a quorum present.
DIRECTORS PRESENT: Tom Mays, Chairman pro tem, Roger R.
Stanton and Grace Winchell
DIRECTORS ABSENT: None
STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager,
Rita J. Brown, Secretary, Thomas M.
Dawes, William H. Butler, W. N. Clarke
OTHERS PRESENT: Thomas L. Woodruff, General Counsel
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Staff report on implementation of The General Manager reported that
long-range financial program during the last year and a half
District 11 has held four special
meetings to consider alternative funding sources to finance operation and
capital requirements over the next ten-year period. The purpose of this
long-range financial planning is to assure adequate funding to carry out the
Districts' wastewater management program for the benefit of the communities
and the two million citizens which the Districts serve in metropolitan
Orange County.
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For same time projections have indicated that funding shortfalls in District
No. 11 would begin to occur as soon as 1989 and that the District would have
to consider additional revenue sources to meet the District's long-term
funding requirements for sewerage facilities improvements and expansion, and
ongoing operations and maintenance costs. Operating shortfalls would total
approximately $24 million and capital shortfalls would be over $10 million
without additional funding.
In July 1986 the Board considered and rejected debt financing as an
alternative. Following further study, at an adjourned meeting on August 20,
1987, the Board approved initiation of proceedings to implement a
supplemental user fee program and increase the District's connection fees.
District 11
11/24/87
At the regular meeting on October 14, 1987, District 11 adopted Ordinance
No. 1107 increasing the connection fees to $1,500/dwelling unit and
$' O
$300/1,000 sq. ft. for crcial and other non-residential property.
1 The proposed supplemental user fee program would be effective on July 1,
1988, with the initiation of the following fees beginning with the 1988-89
' fiscal year
Annual Charge
Effective
Class of User Basis of Charge July 1, 1988
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I _ Single-Family Annual Charge $26.40
Dwellings/Condominiums per Dwelling
Is
Unit
Multi-Family Annual e� Y Charge $15.85
', Dwellings/Apartments/ per Dwelling
Mobile Homes Unit
Commercial/Industrial/ Annual Charge per $18.90
Other 1,000 Sq. Ft, of
f ,{ Building
Based on the July 1988 implementation date, the District's operating fund would
remain solvent through 1991-92 with the initial rates in place. Staff advised
' j.T : that once implemented, the user fee amounts would have to be evaluated annually
i , to make sure that the program provides adequate revenues to meet the District's O
ongoing funding needs. It is anticipated that the user fee will need to be
s `{{ increased to $45.00 in 1991 to cover future shortfalls. The Director of Finance
pointed out, however, that the District could elect to phase-in the increase in
! smaller increments but in that case, would need to revise the ordinance sooner
f than 1991.
The General Manager commented that the pending issue of annexation of the Bolsa
i Chica area to the District will have an effect on District 11's financial
y position, but that effect cannot be determined at this time. It was explained
4
,, that construction of the proposed Coast Trunk Sewer to serve the Bolsa Chica area
9 {p would be financed by connection fees paid by developers, not by user fees.
I Regardless of the eventual outcome of the Bolsa Chica annexation, implementation
ajof the proposed supplemental user fee program is necessary.
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,3V The General Counsel reported that the proposed ordinance establishing sanitary
'' sewer service charges had been written in the same format as those in effect in
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g' Districts 1, 5 and 6 which have previously adopted a supplemental user fee
program.
A First Reading of Proposed Moved, seconded and unanimously carried:
9
Ordinance No. 1108
[ i ; That proposed Ordinance No. 1108, An
Ordinance of the Board of Directors of County Sanitation District No. 11 of
t , Orange County, California, Establishing Sanitary Sewer Service Charges, be
§ + read by title only; and, 01
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FURTHER MOVM: That reading of said ordinance in its entirety be, and is
hereby, waived.
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District ll
11/24/87
Following the reading of Ordinance No. 1108 by title only, it was moved,
seconded and duly carried:
That Ordinance No. 1108, An Ordinance of the Board of Directors of County
Sanitation District No. 11 of Orange County, California, Establishing
Sanitary Sewer Service Charges, be introduced and passed to second reading
on December 91 1987.
Directing staff to proceed with Following a discussion of the
planning for implementation of user procedures for completing implementa-
fee program and authorizing tion of the supplemental user fee
issuance of purchase order to O.C. program and utilization of the
Assessor for computer programming annual property tax bill for
and EDP processing collecting the yearly fee, it was
moved, seconded and duly carried:
That staff be, and is hereby, directed to proceed with planning for
implementation of the proposed user fee program in accordance with the
revised implementation schedule; and,
FCTRTf�R MWED: That the staff be, and is hereby, authorized to issue a
purchase order to the Orange County Assessor in an amount not to exceed
$75,000 for ccmputer programming and EDP processing to provide data base
information, mailing labels and parcel charge tapes relative to planning and
implementation of user fees to be collected on the property tax bills in
District No. 11.
Adjournment Moved, seconded and duly carried:
That this meeting of the Board of Directors of County Sanitation District
No. 11 be adjourned. The Chairman pro tem then declared the meeting so
adjourned at 6:00 p.m., November 24, 1987.
Secretary, Boar of Directors
County Sanitation District No. 11 of
Orange County, California
-3-
STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
Pursuant to California Government Code Section 54954 .2 ,
I hereby certify that the Agenda for the Adjourned Regular Board
Meeting of District No. % \ held on a-y , 1987 was
duly posted for public inspection at the main lobby of the
District' s offices on 1987 .
IN WITNESS WHEREOF, I have hereunto set my hand this
day of , 1987 .
Rita J. Brown, Secretary of the
Board of Directors of County
Sanitation District No.
of Orange County, California
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