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HomeMy WebLinkAboutOCSD-42 Industrial Rates REPEALED BY OCSD-50 & OCSD-51 ORDINANCE NO. OCSD-42 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING ORDINANCE NO. OCSD-40 CONCERNING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES AND SOURCE CONTROL PERMITTEES. ADOPTING REVISED TABLE F RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES WHEREAS, The former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998; and WHEREAS, As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District ("District"), came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts; and WHEREAS, The District, as part of its maintenance and updating of its Master Plan, 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. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive 20-year Master Plan of Capital Facilities, entitled "1999 Strategic Plan" ("Master Plan"); and WHEREAS, The Master Plan, setting forth and identifying the required future development of District Facilities, including financial projections for providing sewer service to all properties within the District's service area, was approved and adopted by the Board of Directors on October 27, 1999 by OCSD Resolution No. 99-21, with updates adopted in 2002 and 2006, following a noticed public hearing, and in compliance with the provisions of the California Constitution and all other applicable laws; and 910708.1 1 WHEREAS, The Board of Directors approved the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, which resulted in the development of a Capital Improvement Program that provides for the implementation of secondary treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities; and WHEREAS, pursuant to Health and Safety Code section 5471, the Board of Directors is authorized to prescribe, revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished by the District in connection with its sewerage system; and WHEREAS, On May 26, 2010, the Board of Directors of the District adopted Ordinance No. OCSD40, establishing capital facilities capacity charges, along with miscellaneous charges and fees relating to industrial charges, source control permittees, and wastehaulers; and WHEREAS, on January 23, 2013, the Board of Directors was presented with and has reviewed the District's Wastewater Revenue and Rate Study dated January 2013 prepared by Carollo Engineers, on file with the District, which independently found that the proposed increases in the industrial user charges based on unit costs were appropriate and reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure; and WHEREAS, for purposes of ensuring that the District has sufficient revenues and reserves to meet the District's obligations and operations, it is the intent, by the adoption of this Ordinance, only to amend Table F of Ordinance No. OCSD-40 to establish new industrial user charges; and WHEREAS, Section 21080(b)(8) of the Public Resources Code states that "the establishment, modification, structuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of (A) meeting operating expenses, including employee wage rates and fringe benefits, (B) purchasing or leasing supplies, equipment, or materials, (C) meeting financial reserve needs and requirements, (D) obtaining funds for capital projects necessary to maintain service within existing service areas, or (E) obtaining funds necessary to maintain those intracity transfers as are authorized by city charter" is not subject to CEQA; and WHEREAS, Section 15273(a) of the California Code of Regulations states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of: (1) Meeting operating expenses, including 910708.1 2 employee wage rates and fringe benefits, (2) Purchasing or leasing supplies equipment, or materials, (3) Meeting financial reserve needs and requirements, (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter"; and WHEREAS, Notice of the Public Hearing regarding the proposed industrial user charges, which included the date, time, and location of the public hearing, as well as the charges, fees, and rates proposed for imposition, was mailed no less than 45 days prior to the public hearing by the District to the each industrial permitee upon which the charge is proposed for imposition; and WHEREAS, on Wednesday, March 27, 2013 at 6:30 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing in order to receive and consider comments, including objections, concerning the proposed industrial user; and WHEREAS, the Board of Directors has carefully reviewed the Wastewater Revenue and Rate Study dated January 2013, and has considered the public and Board comments, and the oral and written presentation by the District's staff and consultants made at the March 27, 2013 public hearing, as well as any written public comments. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. The Board of Directors hereby finds: A. That the industrial user charges and the annual adjustments to the industrial user charges (collectively referred hereafter as the "Sewer Service Charges") as established in Table F herein is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. B. That the revenues derived under the provisions of this Ordinance will be used for (i) the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District, (ii) to repay principal and interest on debt instruments, (iii) to repay federal and state loans issued for the construction and reconstruction of said sewerage 910708.1 3 facilities, together with costs of administration and provisions for necessary reserves, and (iv) to assist in the payment of costs to provide all regulatory administration and laboratory services related to the industrial dischargers and source control permittees of the OCSD's systems. C. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the Capital Improvement Plan, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facilities' needs are expected to be realized in each year as described in the reports. D. That the owners of properties, upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. F. That the Sewer Service Charges established by this Ordinance are reasonably related to, and do not exceed the cost of providing sewer services, and shall herein be levied on each parcel to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for different types of uses. G. That the basis for the respective charge is not based on potential or future use, but rather, is based upon the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service for actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. H. That the revenues derived from the Sewer Service Charges shall not be used for any purpose other than that for which the charge is imposed. I. That the Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the proportional cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. J. That the Sewer Service Charges established herein are not an incident of property ownership, are not an assessment, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. 910708.1 4 K. That the Sewer Service Charges adopted herein are established upon a reasonable basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. L. That the Sewer Service Charges adopted herein will not result in an expansion of facilities to provide for growth within or outside the existing service area. The adoption of these Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. M. That the District is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, at seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 at seq.) to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers. N. That the District is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. 0. That pursuant to these requirements, the Board of Directors has adopted a separate ordinance establishing Wastewater Discharge Regulations. P. That the District incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the OCSD's Wastewater Discharge Regulations and in administering the industrial and special discharge permit programs. Q. That the ordinance establishing Wastewater Discharge Regulations provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers who violate the OCSD's Wastewater Discharge Regulations. R. That the Sewer Service Charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger or source control use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance sampling, and related services associated with the OCSD's Source Control Program. S. That the Board of Directors is adopting the Sewer Service Charges herein to (i) meet operating expenses, (ii) purchase or lease supplies, equipment, or materials, (iii) meet financial reserve needs and requirements, and (iv) obtain funds for capital projects necessary to maintain service within existing service areas. Therefore, the Board finds and determines, based upon substantial evidence, 910708.1 5 that the establishment of the Sewer Service Charges are statutorily exempt from CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273(a) of the California Code of Regulations. T. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. Section II. Amendment. Table F of Ordinance No. OCSD40 is hereby deleted, effective June 30, 2013, in its entirety and replaced, effective July 1, 2013, with the following: "TABLE F ANNUAL INDUSTRIAL USER FEE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Flow (*) $ 1,284.74 $ 1,315.58 $1,347.15 $1,379.48 $1,412.59 B.O.D. (**) $ 610.67 $ 625.33 $ 640.33 $ 655.70 $ 671.44 S.S. (***) $ 649.55 $ 665.14 $ 681.10 $ 697.45 $ 714.19 Special Purpose Discharge Permit FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Flow (*) $ 1,284.74 $ 1,315.58 $ 1,347.15 $1,379.48 $1,412.59 (*) Flow per Million Gallons (**) BOD per Thousand Pounds (***) SS per Thousand Pounds All properties located within Revenue Area No. 14 pay no annual service fees. OCSD costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service." Section III. Effect of Amendment. Except as expressly amended in Section II herein and to the extent they have been expressly superseded herein, no other amendments, changes, or modifications are being made to the remaining portions of 910708.1 6 Ordinance No. OCSD-40. The remaining findings and provisions set forth in Ordinance No. OCSD-40, or portions thereof, not superseded herein shall continue in full force and effect. Section IV. 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 V. Effective Date. This Ordinance shall take effect July 1, 2013. Section VI. Repeal. Table F contained in Ordinance No. OCSD-40 is hereby repealed effective June 30, 2013. Section V. Certification and Publication. The Clerk 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 a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held March 27, 2013. TROY ElbGAP CHAIR, BOAPD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: ���MARIA E. AYA CLERK OF THE BOARD ORANGE COUNTY SANITATION DISTRICT APPROVED AS TO FORM: r BRADLEY/R. HOOIN, GE L COUNSEL 910708.1 7 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, MARIA E. AYALA, Clerk of the Board of the Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-42 was passed and adopted at a regular meeting of said Board on the 271" day of March, 2013, by the following vote, to wit: AYES: Troy Edgar, Chair; John Anderson; Tom Beamish; David Benavidez; Keith Curry; Jim Ferryman; Steve Jones; Lucille Kring; Michael Levitt; Brett Murdock; John Nielsen; Brad Reese; Joe Shaw; David Shawver; Fred Smith; Teresa Smith, Constance Underhill (Alternate); and John Withers. NOES: Steven Choi; Tyler Diep; Peter Kim; Mark McCurdy (Alternate); Prakash Narain; Janet Nguyen; and Greg Sebourn. ABSENT: None. IN WITNESS WHEREOF, I have hereunto set my hand this 271" day of March, 2013. Maria . Ayala Clerk of the Board Orange County Sanitation District