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HomeMy WebLinkAboutMinutes 1987-12-17 F COUNTY SANITATION DISTRICT NO. 5 OF ORANGE COUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING December 17, 1987 - 2:00 p.m. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of December 9, 1987, the Board of Directors of County Sanitation District No. 5 of Orange County, California, met in an adjourned regular meeting at the above hour and date at the District' s Administrative Office. The Chairman called the meeting to order at 2:00 p.m. In the absence of the Board Secretary, Rita J. Brown, Penny Kyle was appointed Secretary pro tem. The roll was called and the Secretary pro tem reported a quorum present. DIRECTORS PRESENT: Evelyn Hart, Chairman, John C. Cox, Jr. and Don R. Roth DIRECTORS ABSENT: None STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Penny Kyle, Secretary pro tem, William H. Butler, Thomas M. Dawes, Dan Dillon OTHERS PRESENT: Thomas L. Woodruff, General Counsel , Bob Dixon, Bernard Maniscalco, Ronald Young * * * * * * * * * * * * * Staff report on connection fee The Director of Finance reported that program for capital financing, and connection fees charged to new downcoast sewerage facility development are the primary source of planning capital funds for the District. A portion of the annual supplemental user fee is also allocated for the capital facilities replacement program now underway in the District. Mr. Butler indicated that staff had recently completed a review of connection fees throughout the Districts based on an analysis of the historical costs of planning, designing and constructing facilities, both in the individual Districts' collection systems and in the joint works treatment and disposal facilities. The current cost of providing collection system and joint works capacity ranges from $1,485.00 to $1,688.00 per unit for single-family/multi-family units and from $297.00 to $337.00 per 1,000 square feet of commercial , industrial , governmental and other types of office facilities. He then reviewed the current connection fees in other Districts and the actions they have taken to increase their basic connection fees accordingly to cover the cost of providing capacity. Last year District 5 Directors modified their financial plan and adopted an ordinance increasing the basic connection fee with a phased-in schedule to provide additional capital funds, as follows: ALJ,L.._­ i L L_ District 5 12/17/87 O Single/Multi-Family Commercial/Industrial / Zone Dwelling Units Governmental /Other 1 $ 500 per dwelling unit 260 per 1,000 sq. ft. of bldg. 2 1,100 per dwelling unit 570 per 1,000 -sq. ft. of bldg. 3 1,500 per dwelling unit 2,400 per 1,000 sq. ft. of bldg. In addition, staff reported that they have recently completed an evaluation of the appropriate connection fee levels for District 5' s share of the cost of expanding the joint works treatment facilities, as well as the District's collection system. Mr. Butler pointed out that their analysis indicated that the basic fee for new connections to pay the cost of the treatment facility expansion and the backbone master-planned collection system in Pacific Coast Highway should be consistent with the fees in the other Districts and should reflect the flow ratios prevalent in the other Districts, as follows: Single/Multi-Family Dwelling Units Commercial Facilities $1,500 per dwelling unit $300 per 1,000 sq. ft. The present connection fee schedules in Zones 2 and 3 reflect payback A requirements under reimbursement agreements with developers which were approved by the Board in 1976 and 1981. Revenues from increases in the proposed basic fee will continue to be used to pay back the outstanding funds owed by the District under the terms and conditions of these reimbursement agreements. kf With regard to the proposed Zone No. 3 (downcoast) development and sewerage • service requirements, it was reported that for the past several ears the y District has maintained an ongoing dialogue with the Irvine Ranch Water District, :the local sewering agency in the downcoast area, and The Irvine Company, the property owner, to identify the specific development levels and evaluate the cost of planning, designing and construction the master-planned trunk sewer facilities to serve this area. Tt The Irvine Company recently received approval from the County Board of Supervisors and the California Coastal Commission to move forward with development in the downcoast area. As authorized by the Board, discussions were held relative to financing of the facilities necessary to serve the downcoast area. Staff reviewed a tentative plan that had been formulated which included two major elements, as follows: IRWD will finance the full cost of all master-planned sewers in Zone No. 3 using existing general obligation bond authority. IRWD and/or The Irvine Company will pay advance connection fees to District No. 5 for development now approved by the County and the Coastal Commission for construction in Zone No. 3. -2- District 5 12/17/87 Staff reviewed the connection fees for Zone No. 3 recommended in the 1983 Master Plan Report which were based on a land use mix different from the currently-approved land use mix. The approved development plan calls for 3,400 residential units and 3,210,000 square feet of commercial facilities. It was pointed out that based on a connection fee of $1,500 per residential unit and $300 per 1,000 square feet of commercial development, the proposed development would generate upfront revenues of $6,063,000. The District's anticipated expenditures were also reviewed. The above-referenced tentative plan offers the District the opportunity to receive funds up front rather than on a sporadic basis as development occurs. The master-planned facilities required to support the downcoast area could then be designed and constructed in a timely fashion without the need for reimbursement agreements which require administration every year until the funds are fully repaid. Staff further reported on cash flow projections for the next ten years. If the current connection fees remain in place, the District would experience a deficit of $1,905,000 by the end of fiscal year 1989-90 and would continue to operate at a deficit over the next several years unless connection fees are increased or other revenue sources, such as debt financing, were employed to generate additional capital funds. The Board then discussed the following suggested proposals: 1. Approval of a District-wide basic connection fee of $1,500 per dwelling unit and $300 per 1,000 sq. ft. effective April 1, 1988, and elimination of separate zones. 2. Payment to District 5 on July 1, 1988 by IRWD/The Irvine Company of $6,063,000 in advance connection fees. 3. Provision for IRWD to fund $2,475,000 to construct master-planned sewerage facilties in Zone 3. Staff reported that if the above actions were implemented in the near future, the District would maintain a strong positive cash position in its capital fund and would have $10,613,000 in reserve at the end of the ten-year period. Directing staff to negotiate an Moved, seconded and duly carried: agreement with IRWD and/or The Irvine Company to provide advance That staff be, and is hereby, authorized funding for sewerage facilities to and directed to negotiate an agreement serve the downcoast area for future with the Irvine Ranch Water District consideration by the Board (IRWD) and/or The Irvine Company (TIC) to provide the prepayment of connection fees and advance funding necessary in order to construct sewerage facilities to serve the downcoast area, and to present said negotiated agreement to the Board for their consideration at a future meeting. Directing staff to draft a revised Moved, seconded and duly carried: connection fee ordinance for first reading at the January 13, 1988 That staff be, and is hereby, authorized Joint Board Meeting and directed to draft a revised connection fee ordinance for first reading at the next regularly-scheduled Joint Board Meeting on January 13, 1988, to establish the following basic District-wide connection fees: -3- District 5 12/17/87 Iu' Single/Multi-Family Commercial/Industrial/ O Dwelling Units Governmental/Other $1,500 per dwelling unit $300 per 1,000 sq. ft. Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District ui No. 5 be adjourned. The Chairman then declared the meeting so adjourned at µP , 2:30 p.m. , December 17, 1987. �x Secretary pr/J1teV16oard of Directors County Sani UtioMistrict No. 5 K i of Orange County, California I I lk 3 -4- Fd I certify that the minutes of the adjourned regular meeting of County Sanitation District No. 5 of Orange County, California, on December 17, 1987, reporting the actions of said District, are a true and correct report of said minutes. r an Board of Directors of County Sanitation District No. 5 of Orange County, California Sec�r�etary, Board of Directors of County Sanitation District No. 5 of Orange County, California • • f 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. -T held on 1*1 , 1987 was duly posted for public inspection at the main lobby of the District' s offices on % 0 , 1987 . IN WITNESS WHEREOF, I have hereunto set my hand this day of 1987 . Rita J. Brow , Secretary of the Board of Directors of County Sanitation District No. of Orange County, California a. .. p