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
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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
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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:
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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.
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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.
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Secretary,Bo~rd of Directors
County Sanitation District No.5 of
Orange County,California
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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
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day of ~
,19q(.).
~ci~
Rita J.Brown,Secretary of the
Board of Directors of County
Sanitation District No.E
of Orange County,California
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