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HomeMy WebLinkAboutOCSD-11 . REPFALED BY OCSD-15 ORDINANCE NO. OCSD-11 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND REPEALING ORDINANCE NO. OCSD-09 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 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, B. That the District has undertaken, commencing in 1997, a comprehensive update and revision of the Master Plan, which was adopted October 27, 1999, to hereafter be known as the"Strategic Plan ; and, C. That the District, in 1997, as part of its Strategic Plan studies, 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 the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system; and, D. That the Board of Directors has previously, by duly adopted Ordinances, commencing in 1969, 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 TLW:pi0113037'11116199-CLEAN 1 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, E. That the District's connection charge ordinances, included authority for the District to levy an excess capacity charge upon commercial and industrial users who discharge large quantities or high strength wastewater; and, F. That the District(s) adopted a revised, comprehensive excess capacity charge by ordinance, effective July 1, 1995, which ordinance(s) was subsequently repealed November 15, 1995 pending completion of the Financial Rates and Charges Report; and, G. That the District on February 22, 1996 adopted a moratorium on the collection of excess capacity charges until the Financial Rates and Charges Report was completed and a revised Capital Facilities Charge was adopted; and, H. That a final report (the 'Determination of Financial Rates and Charges 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'), was prepared and submitted to the Board of Directors to assist and guide it in its considerations for the adoption of Ordinance No. OCSD-09; and, I. 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, J. That following adoption of Ordinance No. OCSD-09 on July 21, 1999, certain ambiguities and uncertainties were discovered, relating to the implementation of the Ordinance. It is now appropriate, to insure ease of administration and clarity of understanding by those persons and entities governed by the Ordinance, that the provisions of Ordinance No. OCSD-09 be revised; and, K. 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, L. 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 TLW:p]3V113937:11/16/99-CLEAN 2 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, M. That the Capital Facilities Capacity Charges 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, N. 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, O. 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: 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 Supplemental Capital Facilities Capacity Charge, as provided for in Sections 6, 7, and 8 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis as determined by the District. 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. TLW:pj*113037:11/1699-CLEAN 3 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, Califomia, 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 Cal'domia, a county, city, district, school district, local or regional public authority, or any other political entity, 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 facilities, and the connection of local municipal sewerage facilities and laterals to the District's facilities. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under sections 305-305.6 of Ordinance No. OCSD-01 or as amended, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, 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 as authorized above 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. 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 approved, nor a permit issued, until a District Capital Facilities Capacity Charge is paid by the applicant. No connection permit shall be issued unless there is an TLW:pI:i1130.TT:1 WeM-CLEAN 4 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 exempt 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 newly connecting any property 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. TABLE 1 CAPITAL FACILITIES CAPACITY CHARGE Use Category Rate Basis Base Charge Commercial — Industrial Per 1,000 square feet' Low Demand Per 1,000 square feet $ 1101 Average Demand Per 1,000 square feet $ 675' High Demand Per 1,000 square feet $1,6001 z 1 Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $1,820; and all calculations shall be on a per square foot basis. 2The Base Capital Facilities Capacity Charge is established at$1,600 per 1,000 square feet, 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 per 1,000 sq.ft. Effective January 1,2000 $ 900 per 1,000 sq.ft. Effective July 1,2000 $1,130 per 1,000 sq.ft. TLW:q:F11 3 03 7-1111 6/9 9-CLEAN 5 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: Supplemental Capital Facilities Capacity Charoe: Significant Commercial— Industrial Users— Definitions. A. A Significant Commercial — Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Ordinance No. OCSD-01, Article 3, due to having federally-or District-regulated or significant discharges. B. An Existing SCIU is any SCIU discharger connected and discharging to the District's system prior to January 1, 2000. Effective January 1,2001 $1,360 per 1,000 sq.ft. Effective July 1,2001 $1,600 per 1,000 sq.ft. 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; and other dischargers whose flow is similar in volume to these listed categories. —High Demand connections are the following categories of users: Restaurants, Supermarkets; Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with Restaurants; Food Processing Facilities;Textile Manufacturers; and other dischargers whose flow is similar in volume to these listed categories. ' All other connections are Average demand users. IrMpilH3037:1111&99-CLEAN 6 C. A New SCIU is any discharger who connects and discharges to the District's system pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraph A above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU. D. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Section 5 Table 1 above, is 25,000 gallons per day ("gpd"), or 150 pounds each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subparagraph E, shall be subject to the provisions of Section 7 or Section 8 hereof. E. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the District as of January 1, 2000. The baseline shall be based upon the discharge for the fiscal year 1998-99 or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIUs solely because of the requirements to obtain a Waste Discharge Permit pursuant to Section 6 above, shall have a minimum baseline established as follows: Flow — 25,000 gallons per day; BOD —150 pounds per day; and SS — 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge- F. The Supplemental Capital Facilities Capacity Charge as prescribed by Sections 7 and 8 below, shall be payable commencing with the effective date of this Ordinance. G. Within two (2) years from the date of the District's written notice to the SCIU of its baseline amounts, the SCIU shall have a right to appeal the District's established baseline for the SCIU. The appeal shall be to the General Manager, or his delegated representative, who shall have discretion, based upon extraordinary circumstances, wherein the established baseline is not representative of the historical average daily discharge by the SCIU for a yearly period, to modify the baseline amounts for the current year, or on a permanent basis, subject to terms and conditions as prescribed by the General Manager. The decision of the General Manager shall be final. Section 7. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table 1 for commercial — industrial use category properties, all New SCIUs shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the following amounts: TLW:gaT13M7:1111&99-CLEAN 7 Daily Charge Flow Gallons Per Day $0.00057 BOD Pounds Per Day $0.14461 SS Pounds Per Day $0.16025 Section 8: Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial —Industrial Users. A All Existing Significant Commercial — Industrial Users connected to and discharging to the District's system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd°), or 25% per day over its established baseline authorization, whichever is lesser, or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25%, each per day, whichever is lesser, over its established baseline authorization. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 8A above: Daily Charge Flow Gallons Per Day $0.00057 BOD Pounds Per Day $0.14461 SS Pounds Per Day $0.16025 C. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District. Section 9: 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, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table 1 that would be for the prior category of use which was terminated and removed. Section 10: 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, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table 1 for the prior category of use. TLW:pj M113037.11116199-CLEAN 8 Section 11: Payment of Capital Facilities Capacity Charoe: 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. Section 12: 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 13: Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 7 above. Section 14 : 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 15: 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 16 : Effective Date. This Ordinance shall take effect January 1, 2000. Section 17: Repeal. Ordinance No. OCSD-09 is hereby repealed as of the effective date of this Ordinance. Section 18 : 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. TLW:pj:ir73D37:r7/76M-CLEAN 9 PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a Regular Meeting held December 15, 1999. Ch r, oard of Director Orange County Sanitation District ATTEST: t I Secr ry of t Boar o I irectors /Ahomas L. Woodruff, District Ca nsel TLW:pJ*1 13037:11/16199-CLEAN 10 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-11 was passed and adopted at a regular meeting of said Board on the 15th day of December, 1999, by the following vote, to wit: AYES: Steve Anderson, Don Bankhead, Shawn Boyd, John Collins, Lynn Daucher, Jan Debay, Norman Z. Eckenrode, Peter Green, Mark Leyes, Patsy Marshall, Shirley McCracken, Pat McGuigan, Joy L. Neugebauer, Russell Patterson, Anna L. Piercy, Christina Shea, James Silva, Charles E. Sylvia, Paul Walker NOES: Don Bankhead ABSENT: Brian Donahue, James M. Ferryman, John M. Gullixson, Mark Murphy, Thomas R. Saltarelli, Peer A. Swan IN WITNESS WHEREOF, I have hereunto set my hand this 15th day of December, 1999. Penny M. K Secretary of the Board Directors Orange County Sanitation District H:\WP.DTAADMIN%WORDINANCES\1889`A ERTIFICATION.DOC