HomeMy WebLinkAboutOCSD-42 Industrial Rates REPEALED BY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
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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
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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
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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.
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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,
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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
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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
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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