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