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