HomeMy WebLinkAboutOCSD-09 REPEALED BY
OCSD-11
ORDINANCE NO. OCSD-09
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF ORANGE COUNTY SANITATION DISTRICT
ADOPTING CAPITAL FACILITIES CAPACITY
CHARGES AND REPEALING ORDINANCE NO.
OCSD-04
WHEREAS, the Board of Directors of the District has received a
management report, including financial and system facilities needs of the District,
and wishes to reaffirm the policy of the District of imposing Capital Facilities
Capacity Charges when properties, either newly connect to the District's system
or expand the use of the property previously connected to the District, and to
adopt findings supporting the amount of the fees adopted pursuant to this
Ordinance.
The Board of Directors of Orange County Sanitation District does hereby
FIND:
A. That the Board of Directors has previously, by duly adopted
Ordinances, established Capital Facilities Capacity Charges, formerly known
commonly as "connection charges" or"fees" to be paid by all persons obtaining a
permit to connect to the District's system as a financial payment to have access
to and use of the District's wastewater collection, treatment and disposal facilities
in existence at the time of connecting to the system, and for future facilities to be
constructed; and,
B. That a comprehensive 30-year Master Plan of Capital Facilities
entitled, "Collection, Treatment and Disposal Facilities Master Plan - 1989",
hereinafter the "Master Plan", which includes detailed financial and engineering
reports, has been prepared, approved, and adopted by the Boards of Directors of
the Predecessor Districts in 1989, identifying the required future development of
District facilities, including the financial projections for providing sewer service to
all properties within the District's service areas; and,
C. That the District has undertaken, commencing in 1997, a
comprehensive update and revision of the Master Plan, which revisions are
scheduled for completion in the Year 2000, to thereafter be known as the
'Strategic Plan"; and
D. That the District, in 1997, undertook a comprehensive evaluation
and study of its operational and financial needs for the next 20 years, including a
detailed assessment of all types and categories of users; the demands on the
system and capacity needs of the system to provide necessary service to the
multiple categories of users; the total costs of the existing and future facilities in
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the system; and alternate methodologies for establishing fair and equitable
charges to connect to and gain access to the system; and
E. That a final report, based upon studies and reports of District's
engineering and financial advisors, and an extensive evaluation by an Advisory
Committee of industrial, commercial, and residential users of the system (the
'Rate Advisory Committee'), has been prepared and submitted to the Board of
Directors to assist and guide it in its considerations for the adoption of this
Ordinance (the°Determination of Financial Rates and Charges Report"); and
F. That the Report has been made available to the public and has
been subject to noticed public hearings, all in accordance with the provisions of
law; and,
G. That the revenues derived under the provisions of this Ordinance
will be used for the acquisition, construction, reconstruction, maintenance, and
operation of the wastewater collection, treatment and disposal facilities of the
District; to repay principal and interest on debt instruments; or to repay federal or
state loans for the construction and reconstruction of said sewerage facilities,
together with costs of administration and provisions for necessary reserves; and,
H. That the properties upon which the fees established by this
Ordinance are levied, will discharge wastewater to the District's collection,
treatment and disposal system facilities; that the costs of owning, operating, and
maintaining said facilities has constantly increased due in part to increased
regulatory requirements to upgrade the treatment process; and that said costs
will exceed the amounts of any ad valorem tax revenues derived from said
property; and,
I. That the connection fees imposed by authority of this Ordinance do
not exceed the estimated amount required to provide access to the sewer system
facilities and service for which the fee is levied, as provided in California
Constitution Article XIIID; and,
J That the fees adopted by this Ordinance are non-discriminatory, as
applied to all users of the system, and are established upon a rational basis
between the fees charged each category of property that is connecting, and the
service and facilities provided to each connected property by the District; and
K. That the adoption of this Ordinance is statutorily exempt under the
California Environmental Quality Act from further environmental assessment
pursuant to the provisions of California Public Resources Code Section
21080(b)(8), and 14 California Code of Regulations Section 15273(a).
NOW, THEREFORE, the Board of Directors of Orange County Sanitation
District does hereby ORDAIN:
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Section 1: Definitions
1.1 "Actual construction costs" include the cost of all activities
necessary or incidental to the construction of a District facility, such as financing,
planning, designing, acquisition of the property or interests in the property,
construction, reconstruction, rehabilitation, and repair.
1.2 "Capital Facilities Capacity Charge" means a one-time, non-
discriminatory charge imposed at the time a property is connected to the
District's system, directly or indirectly, or an existing structure or category of use
is expanded or increased. Said charge is to pay for District facilities in existence
at the time the charge is imposed, or to pay for new facilities to be constructed in
the future, that are of benefit to the property being charged. The additional
Capital Facilities Capacity Charges, as provided for in Section 6 of this
Ordinance, is a one-time charge, a portion of which is payable over a period of
time.
1.3 "Connection fee" means a fee equal to the cost necessary to
physically connect a property to the District's system, including, but not limited to
installation of meters, meter boxes, pipelines and appurtenances to make the
connection, that does not exceed the actual cost of labor, materials, and
overhead for the installation of those facilities.
1.4 "Nondiscriminatory' means that the Capital Facilities
Capacity Charge does not exceed an amount determined on the basis of the
same objective criteria and methodology applicable to comparable public or non-
public users, and is not in excess of the proportionate share of the cost of the
District's facilities of benefit to the person or property being charged, based upon
the proportionate share of use of those facilities.
1.5 "Predecessor Districts" means former County Sanitation
Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, which
jointly owned and administered the property and sewerage system facilities of the
District, which consolidated into the Orange County Sanitation District, as a
single entity, effective July 1, 1998.
1.6 "Public agency" means the United States or any of its
agencies, the State or any of its agencies, the Regents of the University of
California, a county, city, district, school district, public authority, or any other
political subdivision or public corporation of this State.
Section 2: Connection Permits: Required.
A. Connection permits are required of all dwelling units, buildings and
structures connecting directly or indirectly to the District's sewerage system
facilities. Included are the connections of laterals to local municipal sewerage
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facilities, and the connection of local municipal sewerage facilities and laterals to
the District's facilities.
B. No permit shall be valid unless the real property to be served by
use of the permit is included within the boundaries of the District and within the
boundaries of a local sewering agency authorized to maintain public sewering
facilities. However, a permit may be issued for property to be served outside the
boundaries of a local sewering agency if a local sewering agency makes
application for the issuance of such permit, or provides a written waiver of this
requirement to the District.
There will be a Nondiscriminatory Capital Facilities Capacity Charge
assessed to public agencies for connecting directly or indirectly to the District's
sewerage system facilities, and a connection permit must be obtained.
Section 3: Capital Facilities Capacity Charge: Payment Required. No
application for a permit for a connection to a District sewerage facility, or to any
sewerage facility which discharges into a District sewerage facility, shall be
issued until a District Capital Facilities Capacity Charge is paid by the applicant.
No connection permit shall be issued unless there is an established category of
use of the property to be served or a valid building permit issued which
establishes the category of use of said property.
Section 4: Capital Facilities Capacity Charge: Time of Payment.
4.1 Payment of the Capital Facilities Capacity Charge established by
this Ordinance for connection to the District's sewerage system facilities shall be
required at the time of issuance of the building permit for all construction within
the District, excepting in the case of a building legally exempt from the
requirement of obtaining a building permit. The payment of the Capital Facilities
Capacity Charge for such buildings will be required at the time of and prior to the
issuing of a plumbing connection permit for any construction within the territorial
limits of the District.
4.2 Upon application of any property seeking to connect to the District's
system, the Board of Directors of District, in its sole and absolute discretion and
upon a finding of compelling need, may, pursuant to the authority of California
Health & Safety Code Section 5474, approve of an agreement with the property
owner for the payment of the applicable connection charge in installments over a
period of not to exceed five (5) years, bearing an interest rate on the unpaid
balance of not to exceed ten (10%) percent per annum, and that the charges and
interest shall constitute a lien on the property.
Section 5: Capital Facilities Capacity Charge: Schedule of Amounts.
Every person or entity connecting to the District's system facilities shall pay a
Capital Facilities Capacity Charge in the amount for the applicable category of
use set forth in Table 1.
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TABLE 1
CAPITAL FACILITIES CAPACITY CHARGE
Use Category Rate Basis Base Charge
Commercial— Industrial 1,000 square feet
Low Demand 1,000 square feet $ 1101
Average Demand 1,000 square feet $ 6751
High Demand 1,000 square feet $1,6007z
Single Family Residential Per Unit
5+ Bedrooms Per Unit $2,530
4 Bedrooms Per Unit $2,165
3 Bedrooms Per Unit $1,820
2 Bedrooms Per Unit $1,475
1 Bedroom Per Unit $1,130
Multi-Family Residential Per Unit
4+ Bedrooms Per Unit $1,965
3 Bedrooms Per Unit $1,620
2 Bedrooms Per Unit $1,275
1 Bedroom Per Unit $ 910
Studio Per Unit $ 580
Section 6: Additional Capital Facilities Capacity Charge: Significant
Industrial Users. In addition to the Capital Facilities Capacity Charge, based
upon each 1,000 square feet of building area for commercial —industrial use
1 Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be
$1,820.
'The Base Capital Facilities Capacity Charge is established at$1.600, but shall be incrementally
increased from the present amount at Five(5) levels, and five (5)time periods as follows:
Effective September 1, 1999 $ 675
Effective January 1,2000 $ 900
Effective July 1,2000 $1,130
Effective January 1,2001 $1,360
Effective July 1, 2001 $1,600
A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office
of the Board Secretary of the District, and in the Building Department of each City within the
District.
'Low Demand connections are the following categories of users: Nurseries;Warehouses; Parking
Structures; RV Storage; Churches;Truck Terminals; RV Parks; Lumber/Construction Yards.
"High Demand connections are the following categories of users: Restaurants, Supermarkets;
Car Washes;Coin Laundries;Amusement Parks; Shopping Centers with Restaurants.
" All other connections are Avemce demand users.
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category properties, all users that are required to obtain a Waste Discharge
Permit or Special Purpose Discharge Permit, as prescribed by Ordinance No.
OCSD-01, Article 3, due to having regulated or significant discharges, shall pay a
daily charge for each gallon of flow or pound of Biochemical Oxygen Demand
("BOD") or Suspended Solids ("SS") above the base use discharge maximums
included in the base Capital Facilities Capacity Charge in the amounts as set
forth below. The base use discharge maximums are 25,000 gallons per day, or
150 pounds each of BOD and SS.
Daily Fee
Flow Portion Gallons Per Day $0.00057
BOD Portion Pounds Per Day $0.14461
SS Portion Pounds Per Day $0.16025
This additional Capital Facilities Capacity Charge, based upon flow and
strength above the average allowed with the base Capital Facilities Capacity
Charge, shall be charged to the user on its quarterly invoice for the Sanitary
Sewer Service Charges (User Charge), as provided by District Ordinance No.
OCSD-05.
Section 7: Capital Facilities Capacity Charge: Replacement Structures.
For new construction replacing former structures, the Capital Facilities Capacity
Charge shall be calculated and paid to the District on the rate basis of the
category of the new use and the amounts as set forth in Table 1, less a credit
amount equal to a charge, as prescribed in Table 1 that would be for the prior
category of use which was terminated and removed.
Section 8: Capital Facilities Capacity Charge: Remodeled Structures.
In the case of existing structures connected to the District's system facilities, to
which new construction or alteration is made to change or increase the category
of use, a Capital Facilities Capacity Charge shall be calculated and paid to the
District on the rate basis of the category of the new use and the amounts as set
forth in Table 1, less a credit amount equal to a charge, as prescribed in Table 1
for the prior category of use.
Section 9: Payment of Capital Facilities Capacity Charge: Off-Site
Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A
charge for connection to off-site sewers which are not included as part of the
District Master Plan and for which a Non-Master Plan Reimbursement
Agreement has been entered into between the District and the property owner,
shall be paid in the amount provided for in said Agreement, to be known as a
Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in
said Agreement shall be the amount due, whether the original Agreement is still
in force, has been extended, or has expired. The Non-Master Plan Capital
Facilities Capacity Charge shall be in addition to the other Capital Facilities
Capacity Charges provided for in Sections 3 and 4 hereinabove, established for
property connecting to said facilities.
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Section 10: No Refund or Transfer. A Capital Facilities Capacity Charge
is paid for the connection of a specific parcel of property. No refund of any
charge shall be made because of non-use or change of use, or any other reason.
The connection permit is non-transferable to any other property.
Section 11 : Exceptions. The provisions of this Ordinance shall apply to
all owners of properties within the District, including those properties otherwise
deemed exempt from payment of taxes or assessments by provisions of the
State Constitution or statute, including properties owned by other public agencies
or tax-exempt organizations.
Section 12: Severability. If any provision of this Ordinance or the
application to any person or circumstances is held invalid by order of Court, the
remainder of the Ordinance, or the application of such provision to other persons
or other circumstances, shall not be affected.
Section 13 : Effective Date. This Ordinance shall take effect September
1, 1999.
Section 14: Repeal. Ordinance No. OCSD-04 is hereby repealed as of
the effective date of this Ordinance.
Section 15 : Certification and Publication. The Secretary of the Board
shall certify to the adoption of this Ordinance and shall cause a summary to be
published in a newspaper of general circulation as required by law.
PASSED AND ADOPTED by the affirmative vote of not less than two-
thirds of the Board of Directors of the Orange County Sanitation District at a
Regular Meeting held July 21, 1999.
Cha' , oard of Directo/r�J
Or n e County Sanit2ylon District
ATTE ✓✓
Secretary c he Bo of Directors
Ora a County Sa tion District
9a�
Thomas L. Woodruff, Distri t Counsel
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STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
I, PENNY KYLE, Secretary of the Board of Directors of Orange County
Sanitation District, do hereby certify that the above and foregoing Ordinance No.
OCSD-09 was passed and adopted at a regular meeting of said Board on the 21 st day
of July, 1999, by the following vote, to wit:
AYES: Steve Anderson, Shawn Boyd, John Collins, Jan Debay, Brian
Donahue, Norman Z. Eckenrode, James M. Ferryman, Peter
Green, Mark Leyes, Shirley McCracken, Pat McGuigan, Joy L.
Neugebauer, Russell Patterson, Anna L. Piercy, Thomas R.
Saltarelli, Charles E. Sylvia, Paul Walker
NOES: Don Bankhead, John Gullixson, Jack Mauller, Christina Shea, Jim
Silva
ABSENT: Lynn Daucher, Mark Murphy, Peer Swan
IN WITNESS WHEREOF, I have hereunto set my hand this 21 st day of July,
1999.
Penny M. K
th Secretary o e Boar f Directors
Orange County Sanitation District
H IWP.DTAWDMINS WRDINANCES\19S9 ERTIFICATION.DOC