HomeMy WebLinkAboutMinutes 1989-06-07~,.~COUNTY SANITATION DISTRICT NO.11
OF ORANGE COUNTY,CALIFORNIA
MINUTES OF ADJOURNED REGULAR MEETING
June 7,1989 —5:30 p.m
10844 Ellis Avenue
Fountain Valley,California
Pursuant to adjournment of the adjourned regular meeting of May 17,1989,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 called the meeting to order at 5:40 p.m.The roll was called and the
Secretary reported a quorum present.
DIRECTORS PRESENT:Tom Mays,Chairman,Grace Winchell
DIRECTORS ABSENT:Roger R.Stanton
STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,
Rita J.Brown,Secretary,William N.
Clarke,Thomas M.Dawes and Gary G.Streed
OTHERS PRESENT:Thomas L.Woodruff,General Counsel ,Conrad
Hohener
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Update on long—range financial The General Manager reported that in
program and consideration of 1987 the Board modified their long-range
amendments to existing sanitary financial program and implemented a
sewer service charges supplemental user fee to make up the
shortfall of ad valorem tax revenues and
provide the additional financing necessary for both operations and maintenance
costs as well as major facilities’rehabilitation.User fees are charged to all
properties connected to the sewer.Funds for facilities’expansion are currently
provided from connection fees on new development paid by the developer.
In 1986 the Board also considered the issuance of Certificates of Participation
(COP’S)to partially finance their share of the joint works construction at the
treatment plants but the District 11 Board decided against this proposal.
Mr.Sylvester then reviewed the current fee schedules of the District,as
follows:
Single—Family Multi-Family Commercia/Industrial/
Fee Type Residential Residential Governmental/Other
One—time Connection $1,500 per $1,500 per $300 per 1,000 sq.
Fee dwelling unit dwelling unit ft.of building
Annual User Fee $26.40 per $15.83 per $18.90 per 1,000 sq.
dwelling unit dwelling unit ft.of building
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He further reported that the Districts all have a separate industrial user fee
billed annually by the Districts for users that place a higher demand on the
Districts’sewerage system.
The Acting Director of Finance then reviewed the District’s financial projections
for the next ten years.Based upon the Facilities’Master Plan and the Financial
Plan recommendations contained in the 30—year “Action Plan”now under
consideration by the Joint Boards,District No.11 will exhaust its capital funds
as soon as 1990.The “Action Plan”recommends that the District’s share of the
treatment plant construction and trunk sewer construction be financed by a
combination of borrowing (i.e.,COP’s)and increased connection fees.Debt
retirement and escalating operating and maintenance costs would be paid by
annually increasing the supplemental user fees..He noted that in the next few
years the user fees may have to escalate at an accelerated pace to maintain the
District’s financial integrity.However,there are several unknowns that may
have a major impact on the District’s cash flow requirements.
Staff reported that a considerable portion of the District’s major funding
shortfalls are for capital financing.Staff’s projections assume that all
construction projects proceed on schedule.Thus,the estimates can be considered
“worst case”scenarios.However,the Districts continue to experience delays in
major projects because of SCAQMD requirements.Further delays in these projects
would also delay,or at least spread out,the need for capital funds.
It was also pointed out that,conversely,as the Directors were aware,if the
secondary treatment waiver is not renewed in 1990,the Districts’capital needs
will increase substantially.All projections currently being submitted to the
Directors assume the renewal of the Districts’301(h)waiver permit.
Mr.Streed explained the District’s cash flow projections were based on several
assumptions.Scenario 2 of the “Action Plan”,which recommends continuation of
the current treatment levels Under the 301(h)waiver,is the staff’s preliminary
preferred.alternative recommendation.It represents the minimum probable level
of construction,operation and maintenance costs,For the first five years of
the planning period,the differences between Scenarios 2 and 3 (full secondary
treatment)would not be significant.Additional flow and sewer connection
assumptions are also consistent with the Master Plan.
With regard to connection fees,the Master Plan Financial Plan recommends a
change in the method of determining connection fees.The recommended change,
which Mr.Streed indicated was incorporated in the cash flow projections,is to
include the cost of future facilities on a per—unit basis.The reason for
including these costs is that the Districts currently operate near capacity and
any new flow will require new facilities.He noted that a determination would be
made by the Board after a decision is made on the permit renewal application and
any revised connection fees would probably be effective October 1,1989,when the
residential connection fee is projected to be $2,260 under Scenario 2.
He further reported that over the next 10 years COP-type borrowing totaling
$54 million is projected to be needed to meet joint works treatment and District
sewer capital requirements.He indicated that a more detailed analysis would be
performed and presented to the Directors before any debt is issued.The cash
flow projections are for several small issues on the theory of borrowing as
little as possible and only when absolutely necessary.All issues are assumed to
be at a fixed rate of 8°!.for 20 years.
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It was pointed out that the Health and Safety Code permits user fees to repay
debt;and as the only controllable source of revenue for the District,they are
projected for use to repay the necessary new debt.
Staff reported that the projections assume that the Bolsa Chica will annex to the
District and that annexation fees in the amount of $3,020,000 will be received in
1989—90.However,if the annexation fees are not received in 1989—90,District
No.11 will probably have to accelerate its issuance of $30,000,000 in COP’s from
1990—91 to 1989—90.Sufficient information is not available to the District at
this time on the projected development of the Bolsa Chica to enable an estimate
of connection fee revenues from this area.Any connection fees received would
partially reduce the projected $54,000,000 estimated COP’s over the next 10—year
period.
The Board then entered into a léñgthy discussion of the District’s financial
condition and estimated fee schedules for the future.Considerable time was
devoted to alternatives relative to financing the capital facilities requirements
and a review of connection fees and the proposed development within the
District’s existing boundaries,as well as the anticipated annexation of the
Bolsa Chica,and a fee structure that provides that new development pays the
appropriate amount for sewerage system capacity.Staff reiterated that the
current annexation fee and the proposed connection fee formula recomended by the
Master Plan financial consultant assures that new development pays its fair share
of existing and needed future facilities.
The General Manager then reviewed the draft ordinance included with the agenda
material which increases the supplemental user fees,as follows:
Single—Family Multi—Family Coninercia/Industrial/
Fee Type Residential Residential Governmental/Other
Annual User Fee $40.00 per $24.00 per $29.00 per 1,000 sq.
dwelling unit dwelling unit ft.of building
Staff reiterated that no change in the connection fee schedule was recommended at
this time.After a final decision is made by the Boards regarding the NPDES
Permit renewal,staff will present their recommendations to the Board relative to
increasing the connection fees.Mr.Sylvester also reiterated that the
reconiT~ended change in the policy for computing connection fees would increase the
fee from $1,500 to $2,260.Thereafter,the connection fee would probably
increase 5%annually based on the construction cost index.He added that those
projections are based on the assumption of Scenario 2,continuing with the
current level of treatment.If the Boards choose to go to Scenario 3,full
secondary treatment,the current fee would increase to $2,500.
Actions re proposed Ordinance
No.1109
First reading of Proposed Moved,seconded and duly carried:
Ordinance No.1109
That proposed Ordinance No.1109,An
Ordinance of the Board of Directors of County Sanitation District No.11 of
Orange County,California,Amending Ordinance No.1108 Establishing Sanitary
Sewer Service Charges,be read by title only;and,
FURTHER MOVED:That reading of said ordinance in its entirety be,and is
hereby,waived.
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Following the reading of Ordinance No.1109 by title only,it was moved,
seconded and duly carried:
That Ordinance No.1109,An Ordinance of the Board of Directors of County
Sanitation District No.11 of Orange •County,California,Amending Ordinance
No.1108 Establishing Sanitary Sewer Service Charges,be introduced and
passed to second reading on June 14,1989,at 7:30 p.m.,at the Districts
administrative office.
Making finding that adoption of Following a verbal report by the
Ordinance No.1109 is categorically General Counsel,it was moved,
exempt per CEQA Guidelines seconded and duly carried:
That the Board of Directors hereby finds that adoption of Ordinance No.1109
is categorically exempt per California Environmental Quality Act (CEQA)
Guidelines Section 15273,in that the Ordinance establishes fees for
operation and maintenance expenses of the District.
Approving Professional Services
Agreement with John Carollo
Engineers for preparation of Phase I
Preliminary Project Report for
Slater Avenue Pump Station Sewage
System Improvements,
Contract No.11—17
Verbal report of staff The Director of Engineering reported
that the new sewerage facilities Master ~
Plan report prepared for the Joint Districts as part of the “Action Plan”
effort includes both the joint treatment and disposal facilities,as well as
the sewer conveyance systems for each of the sanitation districts.In
District 11 the consultants have found that Slater Avenue Pump Station and
certain trunk sewer facilities will be deficient for meeting future
short—term and long—term capacity requirements;the most notable deficiency
being the Slater Avenue Pump Station.
The long—term solution had been identified in previous master plan reports as
the extension of the Coast Trunk Sewer from its present terminus at Golden
West Street in Orange Avenue northwesterly through the Bolsa Chica area to
Edwards Street at Slater Avenue.Under this plan a line extending easterly
in Slater Avenue would relieve the Slater Avenue Pump Station,while a line
extended north in Edwards Street would relieve the Springdale Street sewer
collection facilities,all at an estimated cost of $21.9 million.
The new master planning team reviewed this and other alternate ways to
provide the needed sewer improvements.The alternatives included diverting a
portion of the area tributary to the Slater Avenue Pump Station easterly to
the Knott Interceptor,thereby reducing the quantity of flow through the
Slater Avenue Pump Station at an estimated cost of $16.6 million;and
rebuilding the Slater Avenue Pump Station at an estimated cost of $14.2
million.The latter is the most economical method.
The Slater Avenue Pump Station is currently operating at or near capacity.
With continuing development taking place within the drainage area served by (fl~
the pump station,a project to correct the projected deficiencies is urgent1y(~.~
needed.
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DISTRICT 11
The pending Master Plan reconii~ends that the Slater Avenue Pump Station be
rebuilt at essentially the same location.It appears that the station could
best be built adjacent to the existing station on lands now owned by General
Telephone (GTE).
Three phases of work for Slater Avenue Pump Station Sewage System
Improvements,Contract No.11—17,are envisioned:
Phase I includes preparation of a project report detailing the size and
construction requirements of the pump station elevations and the trunk
sewer improvements tributary to the station.The engineering documents
will also provide the necessary data for acquisition of a site from GTE.
Phase II will include preparation of detailed construction plans and
specifications,and an addendum to the professional services agreement
will be negotiated and presented to the Directors for consideration at a
later date.
Phase III will be the actual construction of the facilities.
In February,staff reconniended that the Board proceed with the Phase I work
for preliminary engineering work in advance of the “Action Plan”completion
and certification in order to ensure that District 11 can continue to provide
adequate sewer service.The Board authorized solicitation of proposals for
the Phase I work.
Mr.Dawes reviewed the proposals received from John Carollo Engineers,Boyle
Engineering Corporation and Brown and Caldwell Consulting Engineers,and
recon~ended approval of a professional services agreement with John Carollo
Engineers for preparation of Phase I Preliminary Project Report for Slater
Avenue Pump Station Sewage System Improvements,Contract No.11-17,on an
hourly—rate basis including labor plus overhead,and fixed profit,for an
amount not to exceed $44,738.00.
Mr.Dawes also noted that it is anticipated that engineering services for
Phase II and Phase III will be negotiated upon completion of Phase I.This
portion of the contract will be negotiated separately and presented to the
Board for approval at that time.
Receive and file Staff Report Moved,seconded and duly carried:
dated May 31,1989
the Staff Report dated May 31,
for preparation of Phase I
Pump Station Sewage System
hereby,received and ordered
Approving Professional Services
Agreement with John Carollo
Engineers re Contract No.11—17 That the Board of Directors hereby
adopts Resolution No.89-50-11,
approving Professional Services Agreement with John Carollo Engineers for
preparation of Phase I Preliminary Project Report for Slater Avenue Pump
Station Sewage System Improvements,Contract No.11-17,on an hourly-rate
basis for labor plus overhead,plus fixed profit,for a total amount not to
exceed $44,738.00.A certified copy of this resolution is attached hereto
and made a part of these minutes.
That
1989 re selection of engineering consultant
Preliminary Project Report for Slater Avenue
Improvements,Contract No.11—17,be,and is
filed.
Moved,seconded and duly carried:
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Adjournment Moved,seconded and duly carried:
That this meeting of the Board of Directors of County Sanitation District No.11
be adjourned.The Chairman then declared the meeting so adjourned at 6:44 p.m.,
June 7,1989.
c~s~~
Secretary,Boar of Directors
County Sanitation District No.11 of
~0range County,California
S
0
I certify that the minutes of the adjourned regular meeting of County
Sanitation District No.11 of Orange County,California,on June 7,1989,
reporting the actions of said District,are a true and correct report of said
minutes.
Secretary,Board of Directors of
County Sanitation District No.11
of Orange County,California
~ai rman
Board of Directors of County
Sanitation District No.11
of Orange County,California
STATE OF CALIFORNIA)
SS.
COUNTY OF ORANGE
Pursuant to California Government Code Section 54954.2,
I hereby certify that the Agenda for the Adjourned Regular Board
Meeting of District No.~,held on ~ni ,19~was
duly posted for public inspection at the main lobby of the
District’s offices on ~~,19~j.
IN WITNESS WHEREOF,I have hereunto set my hand this
day of __________________,19 ~.
~~
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Board of Directors of County
Sanitation District No.$t
of Orange County,California