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HomeMy WebLinkAboutMinutes 1990-04-05COUNTY SANITATION DISTRICT NO.5 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING April 5,1990 —8:00 a.m 10844 Ellis Avenue Fountain Valley,California Pursuant to adjournment of the regular meeting of March 14,1990,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. The Chairman called the meeting to order at 8:00 a.m.The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT:Evelyn Hart,Chairman,and Phil Sansone DIRECTORS ABSENT:Don R.Roth STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager, Rita J.Brown,Secretary,Thomas M. Dawes Gary G.Streed and Jack Vincent OTHERS PRESENT:Thomas L.Woodruff,General Counsel, and Bernard Maniscalco Status Report on District’s sewer The Director of Engineering reviewed rehabilitation program and Master the status of the District’s Plan of facilities rehaibilitation program and the master—planned facilities included in the Collection,Treatment and Disposal Facilities Master Plan approved by the Boards in 1989. There have been multiple contracts completed over the past eight or nine years and the Districts 5 and 6 dual force main in Pacific Coast Highway has been completely rehabilitated.The new Master Plan has identified additional future deficiencies with regard to the gravity sewer built in 1936 in Pacific Coast Highway but replacement of the sewer is not planned for several years depending on the District’s financial resources. Other upcoming major projects proposed in the Master Plan are improvements to the Bay Bridge Pump Station and the Bayside Drive Trunk Sewer,primarily to serve the downcoast area.With regard to serving the downcoast area, Mr.Dawes reported that it will also be necessary to build a sewer from the intersection of Bayside Drive and Marguerite Avenue southeasterly in Pacific Coast Highway in accordance with the agreement previously entered into with the Irvine Ranch Water District.Th.ey have prepaid the required connection fees and the agreement provides for payment of 100%of the cost for all of the facilities south of the existing City of Newport Beach limit.The cost for the facilities will be borne entirely by Irvine Ranch Water District. Mr.Dawes advised that a tunneling procedure would be used through the Corona del Mar comercial area in order to avoid disrupting the traffic as —1— 04/05/90 DISTRICT 5 much as possible.It was pointed out that the Sanitation District would be coodinating its rehabilitation program schedule with the City of Laguna Beach in order to schedule City improvements in the same area at the same time when possible.These projects will not begin until.Pelican Hills Road is open. Several of the projects will be required in the late 1990’s and Mr.Dawes reported that sewer system improvements over the next 10—year period would total over $17 million. The Director of Engineering outlined the rehabilitation program for the Corona del Mar Pump Station and Poppy Street Force Main,estimating the total cost of said repairs not to exceed $200,000.These will be interim improvements paid for by The Irvine Company to serve the downcoast development until the South Coast Sewer is built after opening of the new Pelican Hills Road. Directors then discussed at considerable length the facilities,timing and conditions of construction of the South Coast Sewer.Mr.Bernard Maniscalco,representing The Irvine Company,also addressed the Board on The Irvine Company’s various comitments relative to the project.He submitted a draft Memorandum of Understanding relative to the project for the Directors’consideration. Following a brief discussion,it was moved,seconded and duly carried: That the draft Memorandum of Understanding proposed by The Irvine Company between District No.5 and The Irvine Company,setting forth the interests of the respective parties relative to construction of facilities to serve the downcoast area,be,and is hereby,received,ordered filed and referred to staff and the District’s General Counsel for review and report back to the Board. Actions re Addendum No.2 to the Professional Services Agreement with Robert Bein,William Frost & Associates re design of Contract Nos.5-33 and 5—34 Verbal Staff Report The Director of Engineering reported that the project for design of Improvements to Bay Bridge Pump Station,Contract No.5-33, and Improvements to Bayside Drive Trunk Sewer,Contract No.5-34,had been extended beyond what was envisioned in 1988.He corwnented that since that time,the project,most notably the Bayside Drive Trunk Sewer extension (Contract No.5—34)had been subjected to changing conditions and requirements of several affected parties resulting in needed design changes along Bayside Drive and Pacific Coast Highway (PCH)through Corona del Mar.This contract has now been divided into three phases and three separate constuction contracts.Mr.Dawes reviewed some of the changes which include requirements to handle gasoline contamination at Bayside Drive and PCH;closer coordination with the City of Newport Beach regarding widening of PCH;coordination with the inclusion of the construction of a new City storm drain with the sewer on Bayside Drive -2- 1J4/05190 DISTRICT 5 from PCH to Marguerite Avenue (Contract 5—34—2);and substantial changes in the construction of the new sewer along PCH from Marguerite Avenue to the southerly Newport Beach city limits (Contract 5—34-3).The revisions are necessary because of numerous job constraints and phasing requirements,including a change from an open cut to a tunnel design for the southerly reach.In additional,traffic engineering changes from CALTRANS and the City of Newport Beach have resulted in additional work. Staff added that the delay in construction of the new sewer has also necessitated a study of the existing Corona del Mar sewer system, including the Corona del Mar Pump Station and Force Main in Poppy Avenue from PCH to Fifth Street.Mr.Dawes reported that interim pump station improvements are necessary,and possibly improvements to the Poppy Avenue Force Main to meet The Irvine Company coastal development schedule.He advised that The Irvine Company has requested that the necessary improvements be identified and corrected,and they have indicated that they would pay for the necessary work. Directors then discussed the consultant’s proposal and fee for additional services in connection with the expanded scope of work and design changes,as well as an adjustment to provide for inflation. Staff recomended that the proposal of Robert Bein,William Frost & Associates dated March 20,1990 be accepted and incorporated into Addendum No.2 to their design agreement. Approving Addendum No.2 to Professional Services Agreement with Robert Bein.William Frost & ___________________________________ That the Board of Directors Associates hereby adopts Resolution No.90-23-5,approving Addendum No.2 to the Professional Services Agreement with Robert Bein,William Frost &Associates for design and construction services required for Improvements to Bay Bridge Pump Station,Contract No.5—33,and Improvements to Bayside Drive Trunk Sewer,Contract No.5—34,providing for an expanded scope of work and design changes,on an hourly-rate basis for labor plus overhead,plus direct expenses and fixed profit, for an additional amount not to exceed $91,650.00,increasing the maximum authorized compensation from $170,425.00 to an amount not to exceed $262,075.00.Said resolution,by reference hereto,is hereby made a part of these minutes. Receive and file proposals from Moved,seconded and duly carried: Robert Bein,William Frost & Associates relative additional That the proposals from Robert services to be included in proposed Bein,William Frost &Associates, Addendum No.2 dated January 22,1990 and March 20,1990,relative to additional services in connection with the expanded scope of work and design changes included in proposed Addendum No.2 to the Professional Services Agreement with said consultant for design and construction services required for Improvements to Bay Bridge Pump Station,Contract No.5—33,and Improvements to Bayside Drive Trunk Sewer,Contract No.5—34,be,and are hereby,received and ordered filed. ____________________________________ Moved,seconded and duly carried: -3- 04/05/90 DISTRICT 5 Update on long—range financial The Director of Finance reported that program in 1981 District 5 was the first of the Districts to implement a supplemental user fee program to make up the shortfall of ad valorem tax revenues and provide needed additional financing for operations and major rehabilitation work on the sewer system.New development pays a separate connection fee for sewage system capacity. He further advised that when the program was originally presented to the public and adopted by the Board,it was anticipated that it would be necessary to increase the fees by approximately 77%beginning with the second year to finance the rehabilitation work on the trunk sewer system. Until 1989,the District had been able to delay any increase in the user fees originally adopted in 1981 due to a significant decline in inflation rates,receipt of favorable bids on various District and joint works construction and rehabilitation projects,and delays in various major plant projects,all of which have reduced District expenditures and cash flow requirements well below budgeted levels. In response to a State Water Resources Control Board ruling,the Directors ordered a change in the supplemental user fee program from a water-meter—size basis to a flat fee for single and multi—family residences, and fees for other facilities based on square footage of improvements.This change was effective for the 1987—88 fiscal year. The Director of Finance stated that following the Directors’review of long-range financing prior to the 1989-90 budget process,the user fees were increased for the first time,as follows: Single—Family Multi—Family Coninercial/Industrial/ Fee Type Residential Residential Governmental/Other Annual User Fee $45.00 per $27.00 per $32.00 per 1,000 sq.ft. dwelling unit dwelling unit of building Mr.Streed then reviewed the District’s financial projections for the next ten years.Based upon the Facilities’Master Plan and the Financial Plan recornnendations contained in the 30—year “Action Plan”approved by the Boards in 1989,District No.5 will exhaust its capital funds as soon as fiscal year 1990—91.The “Action Plan”reconinended 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 user fees. He then reviewed two alternative projections,one with the assumption that the District would issue $45 million in COP—type debt over the next 10 years,and the other outlined the District’s financial requirements without the issuance of debt.The Director of Finance pointed out that by issuing debt the Board could maintain a stable,but steadily increasing,user fee schedule.However,without issuance of debt,it would be necessary to substantially increase the fee over the next several years to fund the District’s capital requirements on a pay—as—you-go basis. -4- 04/05/90 DISTRICT 5 The Director of Finance noted that the user fee is projected to escalate to maintain the District’s financial integrity.However,there are several unknowns that will have a major impact on the District’s cash flow requi rements. 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 various permitting 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,if the secondary treatment waiver is not renewed,the Districts’capital needs will increase substantially. All the projections assume the renewal of the Districts’301(h)permit. Staff indicated that the Directors would be considering proposed adjustments to the District’s user fees and connection fees at the regular meeting of the Joint Boards on April 11,1990. Adjournment Moved,seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No.5 be adjourned.The Chairman then declared the meeting so adjourned at 9:15 a.m.,April 5,1990. 3r~~ Secretary,Bo~rd of Directors County Sanitation District No.5 of Orange County,California —5— a S S S I certify that the minutes of the adjourned regular meeting of County Sanitation District No.5 of Orange County,California,on April 5,1990, reporting the actions of said District,are a true and correct report of said minutes. Chairman / Board of Directors of County Sanitation District No.5 of Orange County,California Secretary,Bo rd of Directors of County Sanitation District No.5 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 Adlourned Regular Board Meeting of District No.S held on ~S ,was duly posted for public inspection at the main lobby of the District’s offices on ~c~.’7 , IN WITNESS WHEREOF,I have hereunto set my hand this _____ day of ~ ,19q(.). ~ci~ Rita J.Brown,Secretary of the Board of Directors of County Sanitation District No.E of Orange County,California S . .