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2000-01-26
FILED IN THE OFFICE OF THE SECRETARY ORANGE COUNTY SANITATION DISTRICT Revised FES 2 3 2000 MINUTES OF STEERING COMMITTEE MEETING P Wednesday, January 26, 2000 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, January 26, 2000 at 5 p.m., In the Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: Directors Present: OTHERS PRESENT: Jan Debay, Chair of the Board Thomas L. Woodruff, General Counsel Peer Swan,Vice Chair Ryal Wheeler Pat McGuigan, Chairman, OMTS Committee Director Shawn Boyd Norm Eckenrode, Chairman, PDC Committee STAFF PRESENT: Directors Absent: Don McIntyre, General Manager Tom Saltarelli, Chairman, FAHR Committee Blake Anderson, Asst. General Manager Jim Silva, County Supervisor Jean Tappan, Committee Secretary Michelle Tuchman, Director of Communications Gary Streed, Director of Finance Bob Ghirelli, Director of Technical Services Mike Moore, ECM Manager (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the December 15, 1999 and January 12, 2000 Steering Committee meetings were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR The Committee Chair welcomed Director Shawn Boyd. She will be inviting one Board member a month to the Steering Committee meeting to acquaint the Board members with the activities of the Steering Committee. Minutes of the Steering Committee Page 2 January 26, 2000 (6) REPORT OF THE GENERAL MANAGER General Manager Don McIntyre asked Bob Ghirelli to report on several Items. A. Biosolids Samolina Request. The EPA and NRC are conducting a national survey to determine the level of radioactivity In biosolids and whether a regulatory fix is required. The radioactivity results from medical research, and also occurs naturally in soil. The District is one of 300 facilities that has been asked to submit samples. A guidance manual report will be made public in about a year. B. Status of Kenn County Real Estate Transactions. The contract has been signed with Tule Ranch and Yakima. The Kings County property is in escrow. The Yakima project is moving forward. The CUP will be presented to the Board of Supervisors in May or June. The design of the project has moved from windrow to static pile to help control odors. Dialogue continues with the neighbors. LACSD is a partner in the project C. Report on Huntington Beach City Council Study Session. Director Swan reported on the meeting. The City Council members preferred a question and answer session rather than the planned presentation. The two issues that were raised were 1)the time frame for less than 50150 treatment and 2) urban runoff. Mr. McIntyre indicated that the Regional Board is reviewing the development plans for two projects in the service area. At this time they are considering disapproving the projects because the District has not agreed to a long-term solution to discussion of dry weather urban runoff. At this time only one- year permits are allowed. Staff needs more information on impacts to treatment process(quality and quantity of the flow) before a decision can be made on accepting dry weather urban runoff on a permit basis. Several suggestions were made regarding placing conditions on future permits, including permits for developments in ecologically sensitive areas only, disallowing street parking, and monitoring runoff. A panel of experts is convening at the end of February and this could be a separate discussion item. It was agreed that the approval of a resolution supporting Proposition 13, the Water Bond, would be presented to the Directors for additional to the Board meeting agenda. (7) REPORT OF GENERAL COUNSEL General Counsel did not make a report. (8) DISCUSSION ITEMS (Items A-C) A. Legislative Issues. 1. Existing legislation (AB 709). The impact of the bill on the District and other non- point sources for NPDES permit penalties was discussed. The bill provides for a mandatory$3000 fine per occurrence. General Counsel Tom Woodruff indicated that the bill needs some technical corrections, but at this time litigation is not planned. The Regional and State Water Boards will be required to report Minutes of the Steering Committee Page 3 January 26, 2000 on these spills, which could result in third-party lawsuits. Mr. Ghirelli indicated that only agencies that have permits with numerical limits would be required to pay the penalties. 2. Proposed legislation (Polanco Bill re State Control over Biosolids). There is concern that this proposed legislation would be viewed as taking away county or home rule over land-use decisions. This bill still does not have a sponsor, though Polanco is considering it, and if one isn't identified by February 25 the bill is dead. Mike Moore reported that staff is working with Kings County supervisors on a biosolids ordinance sponsored by the Ag Board. At this time it looks like approval will be granted in March or April. B. Consolidation of Revenue Areas Recommend adoption of a financial plan to consolidate bookkeeping and rate-setting practices for the District as follows: 1. Combine the assets and liabilities for the separate Revenue Area Nos. 1, 2, 3, 5, 6, 11, and 13 into on consolidated Revenue Area; 2. Adopt one financial plan for the consolidated Revenue Areas; 3. Adopt one user fee rate for the consolidated Revenue Area Nos. 1, 2, 3, 5,6, 11 and 13; 4. Continue to fund Revenue Area 7 through adopted sewer service user fees; 5. Continue to fund Revenue Area 14 by contract with the Irvine Ranch Water District. Director of Finance Gary Streed provided a brief history and discussed the reasons for pulling out Areas 7 and 14 from the consolidated financial plan at this time. Staff was seeking direction from the Committee in order to being the budget process for this program. It was moved, seconded and approved to begin the Committee approval process prior to submitting to the Board. C. The February Agenda Items scheduled to be reviewed by the Board's working committees were reviewed. Because of a lack of OMTS action items, Director Pat McGuigan, OMTS Committee Chair, cancelled the February 2 meeting (9) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,IF ANY OMTS Chair McGuigan asked that Jim Ferryman be invited to the February Steering Committee meeting; and PDC Chair North Eckenrode asked that Brian Donahue attend the March Steering Committee meeting. Chair Debay will extend the invitations at the Board meeting. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Steering Committee Page 4 January 26,2000 (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for February 23, 2000 at 5 p.m. The next Board Meeting is scheduled for February 23, 2000 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:32 p.m. in Closed Session, pursuant to Section 54956.8, to confer with General Counsel re BRE/South Coast LCC and McCarthy Cook& Co.—South Coast LLC's offer to sell, purchase price and terms of payment for easement. Minutes of the Closed Session are on file with the Board Secretary. The minutes of the Board Meeting will report on the actions when they are approved. At 6:58 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:58 p.m. Submitted by: 101 Tappan e ring Committe Secretary NlwpNaYpentlh52EEFING COMM"EaObJA 125o05GMi,ulextlx STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, January 26, 2000, was duly posted for public inspection in the main lobby of the District's offices on-Thurgra January 2tf `-h``//ccccGGYYay� a/ z000. U IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of January, 2000. / � Z4( Penny Kyle, Secret f t o rd of Directors of Orange County! do strict Posted: / a / , 2000, 3G p.m. By: ignature w dcOgmWrtr mmlpcsling.fm ORANGE COUNTY SANITATION DISTRICT BOARD SECRETARY (2) phone: (719)982-2411 memos addral FRO, Box 3127 Fidel Valley.CA B2�2B-B12'I NOTICE OF MEETING ".at address: 1Z aIIS Avenue STEERING COMMITTEE Fountain Valley,CA 92708-7018 ORANGE COUNTY SANITATION DISTRICT Mamter Agencies 0 WEDNESDAY, JANUARY 26, 2000 - 5 P.M. Cities Intention Brad DISTRICT'S ADMINISTRATIVE OFFICE Brad Buena Park 10844 ELLIS AVENUE Fountalnh Valley FOUNTAIN VALLEY, CALIFORNIA 92708 Fullerton Garden Grove Huntington Beech Irvine Le Habra to Palms A regular meeting of the Steering Committee of the Board of Directors of Les Alamitos Newport Beach Orange County Sanitation District, will be held at the above location, date and Orange time. Placards Santa In Seal Beach Stanton Tustin Who Perk Yorbe Linda County or Orange Sanitary Districts Costa Mae. Midway City all Districts Irvine Parch 'To Protect the Public Health and the Environment Enough&cellence in Wastewater Systems' STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, January 26, 2000 Wednesday, February 23, 2000 Wednesday, March 22, 2000 Wednesday, April 26, 2000 Wednesday, May 24, 2000 Wednesday, June 28, 2000 Wednesday, July 19, 2000' Wednesday, August 23, 2000 Wednesday, September27, 2000 Wednesday, October 25, 2000 Wednesday, November 15, 2000' Wednesday, December 20, 2000' Wednesday, January 24, 2001 'Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: January 26, 2000 Meeting Time: 5 p.m. Meeting Adjourned: Committee Members Jan Debay, Chair of the Board ............................ Peer A. Swan, Vice Chair................................... _ Norm Eckenrode, Chair, PDC Committee ..............— Pat McGuigan, Chair, OUTS Committee .............. Tom Saltarelli, Chair, FAHR Committee ................ - Jim Silva. Supervisor........................................ Others Thomas L.Woodruff, General Counsel.....................— DonHughes...............................................................— Staff Present Donald F. McIntyre, General Manager......................_ Blake P. Anderson,Asst. General Manager..............— Jean Tappan. Secretary.............................................— Bob Ghirelli, Director of Technical Services..............— c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, JANUARY 26, 2000 AT 5 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative Office not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the District subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted not less than 72 hours prior to the meeting date. (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee except as authorized by Section 54954.2(b). (4) APPROVE MINUTES OF PREVIOUS MEETING A. Approve draft minutes of the December 15, 1999 Steering Committee meeting. y -2. January 26, 2000 Agenda B. Approve draft minutes of the January 12, 2000 Special Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. Biosolids Sampling Request (Bob Ghirelli) B. Status of Kern County Real Estate Transactions (Bob Ghirelli) C. Report on Huntington Beach City Counsel Study Session Presentation (Bob Ghirelli) (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-C) A. Legislative Issues (Don McIntyre) 1. Existing Legislation (AB709-Penalties) 2. Pending Legislation (Polanco Bill re State Control over Biosolids) B. Consolidation of Revenue Zones (Gary Streed) C. Review Agenda Items Scheduled to be Presented to Committees in February (Information item only) (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m.,Wednesday, February 23, 2000. The next Board Meeting is scheduled for 7 p.m., Wednesday, February 23, 2000. -3- January 26, 2000 Agenda (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee,the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects, the minutes will reflect all required disclosures of information. A. Confer with Real Property Negotiators (General Counsel, General Manager, Assistant General Manager and Director of Engineering) re BRE/South Coast LLC and McCarthy Cook 8 Co.—South Coast LLC's offer to sell, purchase price and terms of payment for easement (Government Code Section 54956.8) B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT jt H:\WRDTANGENGAWEEFUNG COMMmEEWNJM ➢i] AGENDA WmI NOME MD ROLL CALL SHEET.DOC Notice to Committee Members: For any questions on the agenda or to place items on the agenda,Committee members should contact the Committee Chair or the Secretary ten days In advance of the Committee mee0ng. Committee Chair: Jan Debay (949)644.3004(Newport Beach City Hall) Secretary: Jean Tappan (714)593-7101 (714)962-0356(Fax) E-mail: Ita Dpart0ocsd.com DRAFT MINUIES OF STEERING COMMITTEE MEETING Wednesday, December 15, 1999 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, December 15, 1999 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: Directors Present: OTHERS PRESENT: Jan Debay, Chair of the Board Thomas L. Woodruff, General Counsel Pat McGuigan, Chairman, OMTS Committee Vince Murdico, MAP Norm Eckenrode, Chairman, PDC Committee Don Hughes Jim Silva, County Supervisor John Collins, Past Chairman of the Board STAFF PRESENT: Directors Absent: Don McIntyre, General Manager Tom Saltarelli, Chairman, FAHR Committee Blake Anderson, Asst. General Manager Peer Swan, Vice Chair Jean Tappan, Committee Secretary Bob Ghirelli, Director of Technical Services Michelle Tuchman, Director of Communications Gary Streed, Director of Finance (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the November 17, 1999 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR The Committee Chair did not make a report. 1 Minutes of the Steering Committee Page 2 December 15, 1999 (6) REPORT OF THE GENERAL MANAGER A. The General Manager introduced Vince Murdico,with the firm of Management Action Programs, Inc. He is the facilitator for the Executive Management Team's retreat that is scheduled for January 27-28. Mr. Murdico will interview the members of the Steering Committee prior to the retreat to help develop the program. The General Manager reported on an automobile accident involving a District employee, who sustained serious injuries and is expected to recover. The work being done by the entrance to the administration building is to provide drainage for a new awning over the front doors to provide better protection during wet weather. Labor negotiations with OCEA are anticipated to be finalized in the next week or so and the changes to the MOU will require Board approval. The Steering Committee decided to schedule a meeting of the FAHR Committee on January 12 at 5 p.m. to review the proposal before submitting to the full Board. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported on an annexation request that LAFCO is considering near Brea and the impacts on the District. LAFCO moved to consider the issue at a future meeting because of the questions raised regarding payment of the District's annexation fees and user fees. The Steering Committee recommended amending the annexation ordinance to allow the Directors to waive these fees under special circumstances. Staff will be preparing a report to the Directors. Mr. Woodruff also asked that the Directors consider adding an item to closed session to discuss a consultant report that could lead to litigation. It was moved, seconded and approved to add the item to closed session. (8) DISCUSSION ITEMS (Items A-B) A. Blake Anderson provided a review of the SAWPA Agreement for Desalter Brine Capacity Rights that is on tonight's Board Agenda. B. Mr. Anderson also discussed establishing a Community Advisory Committee for Odor Control Planning. The makeup of the committee was discussed. Director Silver suggested that the committee include a fifth member appointed by the Supervisor as a member at large representing the County, which was agreed to. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY A. The supplemental agenda item regarding adopting a policy for interim acceptance and treatment of dry weather urban run-off Bows was discussed. The Steering Committee recommended that the Board adopt the thirteen guiding principles as an interim policy and that the principles be the basis for a formal policy that will be presented to the Directors at a future meeting i Minutes of the Steering Committee Page 3 December 15, 1999 (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS There will be a special Steering Committee meeting on January 12, 2000 at 4 p.m. re the General Manager's position. The next regular Steering Committee meeting is scheduled for Wednesday, January 26, 2000 at 5 p.m. The next Board Meeting is scheduled for Wednesday, January 26 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:25 p.m. in Closed Session, pursuant to Section 54954.2(b), to discuss possible litigation. Minutes of the Closed Session are on file with the Board Secretary. The minutes of the Joint Board will report on the actions when they are approved. At 6:55 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Submitted by: Jean Tappan Steering Committee Secretary H.e emyo,ea�sr�Euwc cwewmeeaaoeaaireea sc u;,wro.>x DRAFT MINUTES OF SPECIAL STEERING COMMITTEE MEETING JANUARY 12, 2000 A Special meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, January 12, 2000 at 3:30 p.m., In the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: None Jan Debay, Chair of the Board Peer Swan, Vice Chair STAFF PRESENT: Pat McGuigan, Chairman, OMTS Committee Don McIntyre, General Manager Norm Eckenrode, Chairman, PDC Committee Blake Anderson, Assistant General Manager Tom Saltarelli, Chairman, FAHR Committee Jim Silva, County Supervisor Directors Absent: None (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) CLOSED SESSION "The Chair reported to the Committee the need for a closed session, as authorized by Government Code Section 54957 to discuss and consider the item that is specked as Item No. 4A on the published agenda. The Committee convened in dosed session at 3:45 p.m. Confidential Minutes of the closed session held by the Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Meetings. A report of the action taken will be publicly reported at the time the approved action becomes final re Agenda Item No. 4. At 4:55 p.m.,the Committee reconvened in regular session." OCSD"P.O.Box 8127"Fwntaln Valley,CA 92728-9127"(714)962-2411 Minutes of the Special Steering Committee Meeting Page 2 January 12, 2000 (5) ADJOURNMENT The Chair adjourned the meeting at 4:56 p.m. especttully submitted: �eao Tappan e ring Committee Secretary FROMr LR_SRNRTION iPX NO. : 562 695 0660 01-19-00 10:390 P.01 tlrlw4rr J COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY 1955 Workman Mill Rood,Whinier,CA 90601.I400 Moiling Address: P.O. Boa d998, Whinier,CA 90607-4996 CHARLES W CARRY Telephone 15621 699.7411,FAX: 15621 699dA22 Chief Engineer and Geneml Mono9er FAX TRANSMITTAL TO: Blake Anderson FROM: Jim Stahl / Cheryl Sanchez County Sanitation Districts FAX/(562)695-6660 DATE: January 19, 2000 NUMBER OF PAGES 6 (including this page): TELECOPY OPERATOR: Cheryl Sanchez/(562) 699-7411, ext. 1502 Per my phone message to you this morning, attached is the biosolids spot bill and more specific language that we hope to introduce at a later point in the process. we are 90%sure Polanco will carry the bill,but we don't have the final confirmation. Please call if you have any questions. Jim Stahl Agenda Item (8)A 2. FROM: LF_SNNRTIBN FAX NO.: 562 695 8668 81-19-88 18:39R P.82 A II(IIIt118tl COUNTY SANITATION DISTRICTS 4 OF LOS ANGELES COUNTY 1955 Wo•4mon MITI Rood,Whieie,CA 90601.1 d00 Moiling Address.P.O.Box A998, Wh9Ner.CA 906074998 CHARlES W CARRY Telephone.(562)699.7411. FAX 15621 6995622 Chief o.d Geee•ol Mono9e• FAX TRANSMITTAL TO: Jim Stahl, LACSD (hand deliver) Bob Horvath, LACSD (hand deliver) Dick Marsh, Knapp, Marsh, Jones & Doran Bob Garcia, Golden State Advocacy Bobbi Larson, CASA Leslie McFadden, City of Los Angeles FROM: Sharon Green Los Angeles County Sanitation Districts PHONE: (562) 699-7411, x-2503 FAX: (562) 692-6103 E-MAIL: sgreen@lacsd.org DATE: January 18, 2000 NUMBER OF PAGES (including this page): 3 TELECOPY OPERATOR: Emily Estrada, (562) 699-7411, ext. 2500 SUBJECT: Draft Language for Biosolids Legislation COMMENTS: Attached please find biosolids legislation spot bill language for your review and comment. Due to time constraints and the need to discuss several major issues with our working draft bill language, it appears that we should proceed with a spot bill rather than trying to finalize our bill language this week. Therefore, I drafted up the attached language for use as a spot bill. Please review it as soon as possible and let me know if it looks ok to proceed with this. Due to the imminent bill request deadline (Jan. 2161, we would like to finalize this by the end of today so that Senator Polanco's office will have time to review it! Thanks! R40aava0: 1110/00 0e42AMp 682 Sea OO©O — OCSD TECH SERVICES: P.O. 3 'PROMS LR_SRMRTION FAX NO. : 562 695 0660 01-19-00 10939O P.03 V JANUARY 18, 2000 DRAFT BIOSOLIDS LEGISLATION INTRODUCTION LANGUAGE SB xxxx, Local Government: Ordinances: land application An act to add Article 9 (commencing with Section 53160)to the Govemment Code, and to amend Section 13274 of the Water Code. I SECTION 1. Article 9 is added to Division 2, Part 1, Chapter 1 of the Government Code, 2 commencing with Section 53160, to read: 3 4 Section 53160. The Legislature hereby finds and declares all of the following: 5 6 (a) Publicly owned treatment works(POTWs)produce solid or semisolid residuals as a result of 7 wastewater treatment which must be disposed or reused on land or incinerated. When these 8 residuals have low concentrations of toxic contaminants and are treated to reduce pathogens 9 so that they may be safely reused, they are called biosolids. 10 11 (b) The State has an economic interest in promoting the cooperation between local governments 12 on matters such as biosolids reuse which inherently involve the interaction of urban and rural 13 areas, as well as an interest in continuing to provide for its wastewater treatment needs in an 14 orderly fashion to protect public health and the environment. is 16 SECTION 2. Section 13274 of the Water Code is amended to read: 17 18 Section 13274. Dewatered, treated, or chemically fixed sewage sludge or other biological solids; 19 general waste discharge requirements; fee;jurisdiction 20 21 (a)(1) The state board or a regional board, upon receipt of applications for waste discharge 22 requirements for discharges of dewatered, treated, or chemically fixed sewage-slodger-and-other 23 biological solids biosofidt, shall prescribe general waste discharge requirements for that-sludge-and 24 those-other so lids biosolids. General waste discharge requirements shall replace individual waste 25 discharge requirements for sewagesiadgcandvtherbinlogicahsvtids biosolids,and their prescription 26 shall be considered to be a ministerial action. 27 28 (2)Thegeneral waste discharge requirements shall set minimum standards for agronomic applications 29 of selvage-sledge and therhiological lids and-the-nsc-vf that-slndge-and-those-of'er-sal ds 30 biosofidsandthe use ofbiosolidsas a soilamendment or fertilizer in agriculture,forestry,and surface 31 mining reclamation, and may permit the transportation ofthatsludge dthosenthersolidsandthe 32 usevftbatsludgearrdthose-oth�lids bias'ofidsmid the use ajbiosalids at more than one site. The 33 requirements shall include provisions to mitigate significant environmental impacts, potential soil 34 erosion, odors, the degradation of surface water quality or 6sh or wildlife habitat, the accidental 35 release of hazardous substances, and any potential hazard to the public health or safety. 36 Re OLVOa: 1/10/00 9:42A ; 502 MUS eMea — ocso TECH SERVICES; Peao FROM1 I.a-sRNRTION FAX NO.r 962 695 0660 01-19-00 10:39A F.Oa 1 (b)The state board or a regional board,in prescribing general waste discharge requirements pursuant 2 to this section, shall comply with Division 13 (commencing with Section 21000) of the Public 3 Resources Code and guidelines adopted pursuant to that division,and shall consult with the State Air 4 Resources Board, the Department of Food and Agriculture, and the California Integrated Waste 5 Management Board. 6 7 (c) The state board or a regional board may charge a reasonable fee to cover the costs incurred by 8 the board in the administration of the application process relating to the general waste discharge 9 requirements prescribed pursuant to this section. 10 11 (d)Notwithstanding any other provision oflaw,except as specified in subdivisions(Q to(1),inclusive, 12 general waste discharge requirements prescribed by a regional board pursuant to this section 13 supersede regulations adopted by any other suite agency to regulate sewzp-s dgezndvther 14 biologiaFmlids 6icsolids applied directly to agricultural lands at agronomic rates. 15 16 (e)The slate board or a regional board shall review general waste discharge requirements for possible 17 amendment upon the request of any state agency, including, but not limited to, the Department of I8 Food and Agriculture and the State Department of Health Services, if the board determines that the 19 request is based on new information. 20 21 (f) Nothing in this section is intended to affect the jurisdiction of the California Integrated Waste 22 ManagementBoard to regulate the handling of sewage sludge u, or'erbiologiahsolids biosolidrfor 23 composting, deposit in a landfill, or other use. 24 25 (g)Nothing in this section is intended to affect thejurisdiction of the State Air Resources Board or 26 an air pollution control district or air quality management district to regulate the handling of sewage 27 sludge.. other-biological solids biosolidr for incineration. 28 29 (h) Nothing in this section is intended to affect the jurisdiction of the Department of Food and 30 Agriculture in enforcing Sections 14591 and 14631 of the Food and Agricultural Code and any 31 regulations adopted pursuant to those sections, regarding the handling of sewage-sladgeandvttter 32 biological-solids biosolidr sold or used as fertilizer or as a soil amendment 33 34 (1) Nothing in this section restricts the authority of a local government agency to regulate the 35 application of sewagesladgeand. her-biological-solids biosolids to land within the jurisdiction of 36 that agency,including, but not limited to,the planning authority oftbe Delta Protection Commission, 37 the resource management plan of which is required to be implemented by local government general 38 plans. 39 40 0)For thepurposesofthisscction, "biosolids"meanssolid,semisolid orlignidresidualsgenerated 41 during the treatment of domestic sewage in a wastewater treatment facility, including, but not 42 limited to, scum or .click removed in primary, secondary, or advanced wastewater treaament 43 processes. but do not include gril and screenings generated during the preliminary treatment of 44 domestic sewage. 45 .... act. 1 //tl/VV n.9dHm, btle ..b .... a OGSD TECH 3E.VI...; P.A. 6 .� FROM: LP_SPHPTIOH FAX NO. / 562 695 0660 01-19-00 1024 OR F.05 r PROPOSED LEGISLATION ON DIOSOLIDS MANAGEMENT The legislature finds and declares all of the following: (a) In order to protect the quality of the waters of the state, publicly owned treatment works(POTWs)have been subjected to increasingly stringent standards. POTWs have increased their level of treatment to reduce discharge of conventional pollutants and have adopted strict industrial source control programs to limit the discharge of toxic materials to the sewers. (b) POTWs produce solid or semisolid residuals as a result of wastewater treatment which must he disposed or reused on land or incinerated. When these residuals have low concentrations of tonics and are treated to reduce pathogens so that they may be safely reused,they are called biosolids. (c) USEPA did a comprehensive review of the risks associated with reuse of biosolids via application to the land and established standards for such reuse under 40 CFR Part 503. The National Research Council of the National Academy of Sciences reviewed these standards and judged them to be protective of human health and the environment. (d) The State has declared under AB939 that its policy is to maximize the recycling of materials that might otherwise be disposed to landfills;biosolids are a significant waste stream that have, in the past,been generally disposed in landfills, but have been increasingly recycled via application to agricultural land since standards were developed to assure the safety of the practice. Continuation of this recycling is important to the people of the State. (e) The Slate Water Resources Control Board is preparing an EIR for a statewide General Order for General Waste Discharge Requirements for the Discharge of Biosolids to Land for Use in Agricultural, Silvicultural,Horticultural, and Land Reclamation Activities in California. Through this process, scientifically defensible standards will be established which will address California's specific needs using a uniform approach to the issues. (f) A piecemeal approach to the regulation of biosolids has been developing, with some local governments establishing prohibitively restrictive requirements or bans on biosolids reuse. Other local governments are under increasing pressure to follow suit due to fear that biosolids will be forced into their jurisdictions in a short time frame which is not conducive to proper management and oversight. I:%arvath\bi,wlidv 011300 FRan: LP_SPNP1ION FAX NO. - 562 695 8660 el t! p Is 4aa Lu I Y (g) The State has an economic interest in promoting the cooperation between localities on matters such as biosolids reuse which inherently involve the interaction of urban and rural areas, as well as an interest in continuing to provide for its wastewater treatment needs in an orderly fashion to protect public health and the environment. The people of the State of California do enact as follows: (1) A local government may enact an ordinance, regulation,or resolution prescribing standards in addition to or more restrictive than those contained in the federal regulations 40 CFR Part 503 or the General Waste Discharge Requirements for Biosolids Land Application adopted by the State Water Resources Control Board under either or both of the following circumstances: (a) The operation of a biosolids land application site within that local jurisdiction will result in unreasonable adverse effects on the environment or public health within the local jurisdiction. The determination that unreasonable adverse effects on the environment or public health will exist shall be based on peer-reviewed, scientific evidence and shall take into consideration specific populations whose health may be adversely affected within the local jurisdiction. (b) The operation of a biosolids land application site within that local jurisdiction has resulted or will result in the local government being in violation of other existing state laws or federal laws. Nothing in this section shall restrict the authority of a local government to regulate land application of biosolids within the jurisdiction of the Delta Protection Commission. (2) An ordinance, regulation, or resolution enacted by a local government pursuant to subsection (1)shall not become effective until approved or conditionally approved by the State Water Resources Control Board, the Department of Health Services, and the Integrated Waste Management Board, and shall contain a provision to that effect. The local government shall comply with arty conditions of approval. (3) Except as otherwise provided for in subsection(1), a local government may not enact, maintain, or enforce an ordinance, regulation, or resolution that prescribes standards in addition to or more restrictive than the federal regulations 40 CFR Part 503 or the General Waste Discharge Requirements for Biosolids land Application adopted by the State Water Resources Control Board. (4) Section 13274(i)of the Water Code is repealed. (5) This bill shag not take effect until the State Water Resources Control Board hm adopted the General Waste Discharge Requirements for Biosohds Land Application or January 1, 2001, whichever is later. I%.mmhlaio lids.01130D STEERING COMMITTEE Mewing Date To ad.of Dir. 01/26/00 OV23100 AGENDA REPORT aem Number ,tan Number Orange County Sanitation District FROM: Donald F. McIntyre, General Manager Originator: Gary G. Streed, Director of Finance SUBJECT: PROPOSAL FOR FINANCIAL CONSOLIDATION OF REVENUE AREAS 1, 2, 3, 5, 6, 11, AND 13, AND FOR A SINGLE USER FEE RATE STRUCTURE FOR THE CONSOLIDATED REVENUE AREAS. (CURRENT REVENUE AREAS 7 AND 14 TO CONTINUE CURRENT REVENUE PROGRAM.) GENERAL MANAGER'S RECOMMENDATION The General Manager recommends adoption of a financial plan to consolidate bookkeeping and rate-setting practices for the District as follows: 1. Combine the assets and liabilities for the separate Revenue Area Nos. 1, 2, 3, 5, 6, 11 and 13 into one consolidated Revenue Area. 2. Adopt one financial plan for the consolidated Revenue Areas. 3. Adopt one user fee rate for the consolidated Revenue Area Nos. 1, 2, 3, 5, 6, 11 and 13. 4. Continue to fund Revenue Area 7 through adopted sewer service user fees. 5. Continue to fund Revenue Area 14 by contract with the Irvine Ranch Water District. SUMMARY Because of the variance in rates and abilities to pay among the Revenue Areas, the recent consolidation of the individual Districts into one District, and a shift in our service paradigm to a regional focus and mission, some Directors and staff have considered a basic change in the bookkeeping and rate-setting practices for the District. Basically, this change would combine the assets and liabilities for several of the separate Revenue Areas into one Revenue Area and then adopt one financial plan, including one user fee rate. Revenue Area 7 would continue to be funded through the adopted fee structure, and Revenue Area 14 would continue to be funded by the existing contracts with the Irvine Ranch Water District. There are certain advantages to a one District, one rate policy. • Bookkeeping and accounting are simplified • Auditing is simplified • Issuing long-term financing is simplified • Staffing and financing costs are reduced 1M Ww.dwo,wlG nelMERINO WMMMEFGU9dErtlOnR A. R•WxL: ermree Page i • Establishing sewer service fees is simplified The annual sewer service fee would have been decreased substantially for 203,620 EDUs in 1999-2000 (average decrease would have been $18.08). There are also disadvantages and special situations that must be taken into consideration. • The annual sewer service fee would have been increased for 651,000 EDUs in 1999-2000 (increase is $1/yr. for 548,700 EDUs and $11/yr. for 102,300 EDUs). • Revenue Area 7 is uniquely responsible for approximately 200 miles of local sewers. • Revenue Area 13 receives none of the property taxes paid by users. • Revenue Area 14 is funded by the IRW D and receives no property tax or user fees directly from property owners. • Revenue Areas 13 and 14 have very little debt and have paid "cash"for most of their share of facilities. • Each of the Revenue Areas has different levels of cash reserves and net assets. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION See attached Staff Report. ALTERNATIVES Some Directors may agree that the annual sewer service user fee in RA 1 is higher than may be appropriate, but may not yet be willing to consolidate the fees. A potential alternative is for the other RA's to compensate RA 1 for the assessed value and property tax lost to regional governmental tax-exempt properties. In order for the average assessed value per EDU in RA 1 to equal the average, $3,563,463,200 would need to be added to the RA 1 assessed value. At the equivalent tax rate in RA 1, that additional value would generate $983,337. Using the assessed value per capita method, the additional property taxes would be $1,861,197. If RA 1 had additional revenues of this amount, the 1999-2000 annual user fee for a SFR could be reduced from $110.04 to $84.70. \VWonWW1M9.CMNMItpvanNETEEPIeO COMM?TEETCwndWtlmeb.Crc wH.•a: ersam Page 2 CEQA FINDINGS N/A ATTACHMENTS 1. Staff Report 2. Summary Cash Flow Projection 3. One District-One Rate Cash Flow Projection 4. One District, Excluding RA7 and RA14, Cash Flow Projection 5. RA7 Summary Cash Flow Projection 6. RA14 Summary Cash Flow Projection 7. Chart—Annual SFR Rates Projection 8. Combining Balance Sheet, June 30, 1998 +�osaw�,omne�srmar,c crnaaxn:ecoivememrtnanac xeaem: vxise Page 3 January 20, 2000 STAFF REPORT Proposed Rate Structure In 1947 a blue-ribbon panel recommended the creation of individual Sanitation Districts to serve all of Orange County. In 1954 County Sanitation Districts of Orange County Nos. 1, 2, 3, 5, 6, 7 and 11 joined together to own and operate treatment and disposal facilities. Between 1954 and 1979 these Districts established annual budgets and property tax rates in order to provide necessary sewage collection treatment and disposal services. The individual property tax rates were a function of both financial need and property assessed valuation. The passage of Proposition 13 in 1978 changed the funding process. No longer were the Districts able to establish property tax rates sufficient to meet their needs. In fact, the Districts had no control over property tax rates. Additionally, assessed values were reduced for many parcels and future assessed value growth was limited. In 1979, in an effort to develop a permanent tax allocation method to implement Proposition 13, the State Legislature adopted Assembly Bill 8. Basically, AB 8 allocates the total "1% basic levy" collected within the County, adjusted first for redevelopment agencies, to each of the taxing agencies in the same ratios as those agencies received property taxes in 1979-80. Since both the ratios and the 1% rate are fixed, the only property tax variable is assessed value. Because the various Sanitation Districts had a pay-as-you-go philosophy and differing capital and operating funding needs in the late 1970's, they had differing property tax rates. The result of all of this is differing "effective tax rates" in each of the current Revenue Areas as follows: RIA 1998-99 AV Effective Tax Rate Tax Allocation 1 $ 6.513,664,662 .00027595 $1 797414 2 35.082 620,856 .00028162 9,879,842 3 33 838,165 681 .00031991 10,825,321 5 10.871,149,227 .00026484 2879162 6 5,934,887,167 .00022281 1322326 7 16,034,002.091 .00019568 31137 591 11 9,021892230 .00024819 2,239,175 13 2.796,831,476 0 0 14 14.495,514,969 0 0 OCSD " P.O.Box 8127 " Foumain valley,CA 9272&8127 " (714) 962-2411 Proposed Rate Structure ° Page 2 January 20. 2000 ' "Supplemental" User Fees In 1979 the Board of Directors adopted a Revenue Program. Such a program was a requirement of the Federal Clean Water Act and of the Districts' participation in the Clean Water Grant program. The Revenue Program provided that property taxes would continue to be the basic revenue source for the Districts. All industrial users and large commercial users would pay an additional charge based upon their actual quantity and strength of sewage discharged to our system. Finally, as property tax and other revenues became insufficient to fund the costs of operating, maintaining, rehabilitating and constructing necessary sewerage facilities, a "supplemental" user fee was authorized for all users. The need for these supplemental user fees did not arise in each of the Districts at the same time or in the same magnitude. The following schedule indicates the initiation date and rate, the current rate, and the projected rate in ten years. The amounts shown are the annual rates for a single-family residence; different rates are charged for multi- family and for non-residential users. District or Projected Revenue Implementation Initial 1999.2000 2008.09 SFR Area Date SFR Rate SFR Rate Rate 1 19" $26.40 $110.04 $250.00 2 1990 55.00 76.00 102.00 3 1989 30.36 76.00 94.00 5 1982 26.40 87.50 87.50 6 1983 26.40 80.00 86.00 7 1991 40.00 66.00 129.00 11 1988 26.40 90.00 170.00 13 1985 70.00 100.00 100.00 14 NIA NIA I NIA I N/A Because of the variance in rates and abilities to pay among the Revenue Areas, the recent consolidation of the individual Districts into one District, and a shift in our focus to a regional viewpoint and mission, some Directors and staff have considered a basic change in the bookkeeping and rate-setting practices for the District. Basically, this change would combine the assets and liabilities for several of the separate Revenue Areas into one Revenue Area and then adopt one financial plan, including one user fee rate. Revenue Area 7 would continue to be funded through the adopted fee structure while other issues are resolved over the next year or two. Revenue Area 14 would continue to be funded by existing contracts with the Irvine Ranch Water District. There are certain advantages to a one District, one rate policy. • Bookkeeping and accounting are simplified • Proposed Rate Structure Page 3 January 20, 2000 • Auditing is simplified • Issuing long-term financing is simplified • Staffing and financing costs are reduced • Establishing sewer service fees is simplified • The annual sewer service fee would have been decreased substantially for 203,620 EDUs in 1999-2000 (average decrease is $18.08). There are also disadvantages and special situations that must be taken into consideration. • The annual sewer service fee would have been increased for 651,000 EDUs in 1999-2000 (increase is $1/yr. for 548,700 EDUs and $11/yr. for 102,300 EDUs). • Revenue Area 7 is uniquely responsible for approximately 200 miles of local sewers. • Revenue Area 13 receives none of the property taxes paid by users. • Revenue Area 14 is funded by the IRWD and receives no property tax or user fees directly from property owners. • Revenue Areas 13 and 14 have very little debt and have paid "cash"for most of their share of facilities. • Each of the Revenue Areas has different levels of cash reserves and net assets. Issues Outstanding Debt All of the Revenue Areas have issued some certificates of participation (COPs)to pay for collection and treatment facilities. The annual principal and interest payments are made from property taxes. User fees are used for some of the COP service in Revenue Area 1, and for all of it in Revenue Areas 13 and 14. The outstanding COPS in Revenue Areas 13 and 14 amount to $1,998,245. This debt could be sold to the District thereby taking it off the books of RA 13 and 14, along with an equal amount of cash, and putting it on the books of the District. In this manner the current debt service of the District would continue to be paid from property taxes. Since Revenue Areas 13 and 14 receive no property taxes and would have no outstanding COPS, they would not be participating. Future COPS would be issued by the District, and principal and interest payments would be made from future user fees. Cash Reserves and Net Assets While we all prefer to measure our economic or financial position by considering our cash and other assets, a more proper measure for the District would be net assets. In our case, net assets is the sum of our cash reserves and fixed assets, less the sum of Proposed Rate Structure ° Page 4 January 20, 2000 accumulated depreciation, outstanding debt and other liabilities. The distribution of net assets is shown in the following table: R/A NET ASSETS Total Per Per$1,000 RIA Net Assets Capita020;238 Per EDU Per Acre AV 1 $35,927 871 $ 159 $ 494 $2 983 $ 5.52 2 263 057.403 426 984 3 874 7.50 3 265,754 909 371 945 4 068 7.85 5 65881,509 1264 2,361 5600 6.06 6 43,303,875 403 993 4 414 7.30 7 97 507 794 614 953 4 362 6.08 11 62,853871 532 1,232 8 6.97 13 21 614 474 758 2 573 947 .18 14 69 025,873 WA 29 11 WA 1 187 24.68 Property Taxes We have previously discussed the differing shares of the property tax basic levy allocated to the individual Revenue Areas. One additional consideration is the total amount of the 1% basic levy. This tax levy is a result of Proposition 13, which limited the total basic property tax within the State to 1% of the assessed value. The base year assessed value was established as the value in 1975, thus removing four years of increased value from the tax roll. The District's service area includes a wide variety of property development, use, and value. There are very high value properties and very low value properties. There are properties with the 1975 value and there are properties developing and selling today. There are even properties with no assessed value. Whatever the assessed value, the District receives an average of 2.7%of the 1% basic levy. That is $27 a year for an assessed value of$100,000. Revenue Area 1 has the majority of the parcels with no assessed valuation, and which pay no property taxes. This is because the County seat and several State and Federal facilities are located in that area. It also has a concentration of some of the older homes and businesses in the County. The average assessed value in RA 1 is less than half of the average value per capita in RA 2-13, and only 64% of the average value per EDU. Clearly RA 1 receives a disproportionately low share of the property tax, because of this low assessed value, while providing a disproportionately large share of regional services such as courts,jails and county administration for our service area. Proposed Rate Structure Page 5 January 20, 2000 Revenue Area 7 Revenue Area 7 includes parts of the cities of Tustin, Irvine, Orange, Newport Beach and Santa Ana, as well as some major unincorporated areas. In 1986, the District took over the responsibility for local sewer service from the Seventh and Seventieth Sewer Maintenance Districts which were administered by the County. This action made then District 7 unique amongst the Sanitation Districts; it became the only District(Revenue Area)that is responsible for maintenance, rehabilitation, and replacement of local sewers. Local sewers are generally owned and operated by a city, sanitary district or water district. This is the case in all of the other Revenue Areas and in some parts of Revenue Area 7. The areas generally and loosely described as City of Tustin, Irvine Business Center, and unincorporated areas comprise the former Sewer Maintenance Districts. In these area, which includes the Tustin Air Base, Revenue Area 7 is responsible for approximately 200 miles of local, small-diameter sewers. There are several issues to be resolved involving these local sewers. Ultimately these local sewers will need to be rehabilitated or repaired. A 1998 review by RW Beck, an engineering firm, projected costs of$40 million between 2038 and 2040 without regard for inflation. Currently, these projected costs have not been included in the adopted annual sewer service user fees. In order to have these funds available when needed, an additional $9 would need to be added to the current annual SFR user fee. The impact on fees, if the funds are not accumulated in advance, would be an additional $185 per SFR in the first year, decreasing to $117 and $78 in the following years. Much of these former Sewer Maintenance Districts receive water service from the Irvine Ranch Water District. This includes all of the Irvine Business Center, parts of Tustin, and unincorporated areas. Additionally, the Tustin Air Base is scheduled to be served by the IRWD. The IRWD has proposed that local sewer service responsibilities be transferred from Revenue Area 7 to the IRWD wherever IRWD provides water service. This would be consistent with the rest of the IRWD service area and with Revenue Area 14. One of the reasons the Sanitation Districts assumed this local service responsibility in 1986 was to protect the property taxes. Approximately 48% and 67% of the property taxes would have been diverted to the Special District Augmentation Fund (SDAF), if the Sewer Maintenance Districts remained intact or if responsibilities were transferred to the cities. Staff has been able to reconstruct the property tax, user fee, and local sewer maintenance costs since 1986, but is still researching the allocation of joint works treatment operations and capital improvements. Preliminary estimates indicate there may be some residual funds available to begin to fund the rehabilitation and replacement needs discussed earlier. Of course, if the local sewer responsibilities were Proposed Rate Structure Page 6 January 20, 2000 transferred to IRWD, then the accumulated funds and future taxes would be transferred along with the fixed assets. While these local sewer related issues are being discussed, negotiated and resolved, staff recommends that Revenue Area 7 be excluded from the proposed consolidation of assets, liabilities and user fees. Once these issues are resolved and Revenue Area 7 is like the rest of the District, or there is a method to fund and account for local sewer rehabilitation and replacement, it will be appropriate to reconsider the final step of consolidation. Revenue Area 14 The Irvine Ranch Water District provides local sewer service to all of Revenue Area 14. There are several agreements and contracts dating back to 1985 that contain the details of the IRWD connection to the District. In the simplest of terms, the IRWD is billed directly for the Revenue Area 14 share of operating, maintenance, capital improvement, and certificate of participation costs. Treatment plant O&M and capital costs are based upon actual flows. Neither the alternative nor the proposal is expected to change any of the provisions of the existing agreements. It should be noted that the information for Revenue Area 14 in the tables that summarize the alternative and the proposal is estimated. IRWD bills its customers directly; the Revenue Area 14 user fee is not collected on the property tax bill. The number of users and the annual cost per user are estimated based upon the Strategic Plan estimate of 260 gallons per day per EDU; the actual Revenue Area 14 flow and the average annual O&M and capital charges to IRWD. Neither the alternative nor the proposal includes collecting Revenue Area 14 user fees on the property tax bill. Alternative Proposal Some Directors may agree that the annual sewer service user fee in RA 1 is higher than may be appropriate, but are not yet willing to consolidate the fees. A potential alternative is for the other RA's to compensate RA 1 for the assessed value and property tax lost to regional governmental tax-exempt properties. In order for the average assessed value per EDU in RA 1 to equal the average, $3,563,463,200 would need to be added to the RA 1 assessed value. At the equivalent tax rate In RA 1, that additional value would generate $983,337. Using the assessed value per capita method, the additional property taxes would be $1,861,197. If RA 1 had additional revenues of this amount, the SFR annual user fee could be reduced from $110.04 to$84.70 as shown in the following table. Proposed Rate Structure Page 7 January 20, 2000 1999-2000 Prop Tax Revised RAMEDUSFR Rate Reimb/EDU SFR RATE 1 $110.04 $ 25.64 $84.70 2 76.00 2.13 78.13 3 76.00 2.13 78.13 587.50 2.13 89.63 6 80.00 2.13 82.13 7 66.00 2.13 68.13 11 90.00 2.13 92.13 13 100.00 2.13 102.13 14• 23,800 84.03 2.13 1 86.16 'RA 14 EDU and Rate are estimated from average daily flow and$2 million par year contdbutton. Proposed Consolidated Rate While the alternative may satisfy the financial equity considerations surrounding land use and regional general governmental facilities, it does not resolve the long-term regional sewerage service issues, nor does it bring the District's financial practices and policies into alignment with the streamlined governance provided by consolidation. This can only be accomplished through combining the financial records, plans, assets, liabilities, revenues and expenditures. The impact on the Individual ratepayer is minimal if the Financial Plan is redeveloped to consider the majority of the District as a single entity. The following table shows the changes needed in the annual SFR service fee in order to develop a regional Financial Plan: 1999-2000 Proposed Consolidated 2008-09 RA EDU SFR Rate Change Rate Cons. Rate 1 72,700 $110.04 $ 33.04 $77.00 $115.00 2 267,400 76.00 1.00 77.00 115.00 3 281300 76.00 1.00 77.00 115.00 5 27 900 87.50 10.50 77.00 115.00 6 43 620 80.00 3.00 77.00 115.00 7• 102,300 66.00 11 51,000 90.00 13.00 77.00 115.00 13 8 400 100.00 23.00 77.00 115.00 14•• 23,800 84.03 7.03 77.001 115.00 **RA 7 will be excluded from the proposal pending resolution of local sewer Issues. 'RA 14 EDU and Rate are estimated from average daily flow and$2 million per year contdbution. Proposed Rate Structure Page 8 January 20, 2000 Attachments Several documents are attached that will help the reader to make comparisons and to see the "big picture." A copy of the Summary Cash Flow Projection from the 1999-2000 Budget shows the ending cash and reserves for all of the Revenue Areas for each year to 2008-09, line 16, and the weighted average SFR user fee, line 17. This schedule has been revised as if all of the Revenue Areas, except 14, had been combined and titled, One District-One Rate Cash Flow Projection. The pertinent balances and rates are on the same lines. This schedule eliminates any intra-District payments such as loans, and the annual joint works equity purchase and sale. This schedule is included from previous staff reports and is for reference only. A further refinement of the Cash Flow Projection is the One District Excluding 7 & 14, One Rate Cash Flow Projections. This schedule is based upon the revised proposal and the original fund balance projections. User fee rates, on line 17, were maintained consistent with the original total consolidation proposal and the End of Year Accumulated Funds balance has decreased only by the RA7 and RA14 balances. Copies of the individual Summary Cash Flow Projections for RA7 and RA14 are included to complete the financial information. A two page Combining Balance Sheet schedule from the June 30, 1998 financial statements is enclosed. This schedule shows the assets, liabilities and fund equity of each of the Revenue Areas and the combined total for all of the Revenue Areas, or the District. The proposal would eliminate the accounting and accounts by Revenue Area, shown as "District No. V for 1998, and would result in the single column of accounts shown as "1998." The balances shown as "Due From Other Districts" and "Due to Other Districts" would be offset or eliminated. Books would continue to be maintained from Revenue Area 7 pending resolution of local sewer related issues. A chart showing the annual SFR rates projected in the budget for each year to 2008-09 is also included. Plotted across these columns are two line graphs. The first, the red line, is the weighted average of the currently projected rates. The second, the green line represents the proposed single rate for the entire District, except current Revenue Areas 7 and 14. Revenue Area 7 will continue to be funded by the adopted rates until local sewer issues are resolved. The Irvine Water District will continue to pay for RA14 in accordance with existing agreements. GGS:lc %VadonWaul7 wp.dt %hn%210kaane\STEERING COMMITTEE%SRConwlidahonRAs.doc Attachments COUNTY SANITATION DISTRICTS OF ORANGE COUIM Canel'iY Data.wheel June M,190 Y40 Cv 1-fte Tdell lo,lures]q 1B0 deVla Ol.11ltl olW DI GI.IM OleVkl Olal ONIMI lathes l4a I tl9.3 Nv..3 N2-5 N9.9 NeI NB a No.I tl215 it" IffiZ Cun.nl Cash metM men epuNa.M. ! 12 1144 6 5W5lst f 0M 261 1 11)5312 ! 2136.6]B { 5218.113 1 1410.65e S 328.a0 S M5.9a i 25283.0M i b1301M InreelmuYe 94891M 45 OIS OBI )2199.251 14.145160 1513e 8]3 152123^ +1115+32 245W 400119 1906Yf.2M 11913]B60 RenNeNee: Awunle 116,3M 1,4M,BM 1,137.4M 151,11444 182,501 221,M1 314,210 11,]62 0,151 5M890 10E68,811 Duafr tht.al 030,351 t,412,710 1,WINN M,4monno10 0m..]81 M9,)M 3M,Nl M,169 iM,131 5,0m,4B0 2,821,811 Du.Iran ether Ol.IrIN. 830,6M It),]10 eM,9m 208,110 40ma] 1M,03 3M,M1 14e,150 7,5M,6M 16.0004M 10.I0,7417 Ow from DIMr INvammw6tl epmGn 19]e 31,072 20,319 ]oath ],BIG ]1]9 6.N1 OZB 3,647 '00.181 1,11M.8M Total vaciN.Nn 1.M4 0.00104 3.]W.]69 ea.6D3 4454038 1204.137 1020 M8 2m.111 1.543.M3 24.5W323 201MJM Invemal.. 479626 1.21111131 1312814 ME 1a01e 140121 3M.M5 R= 1493M 4.3N 025 44M651 P....k aM OMr....1. 33.Mfi 09914 0,828 12NO 11 Al Mlil 213f9 3.M2 10.443 30).15] 183.BM Total am.nl ma. +3122.MB e3➢09.MS III?m.M9 16824132 21])4 We 16WL)]e 14 M2M0 11045B 131797M 246.327.620 21GA 9e Re.11bed asset.: Cash nth UM wWare. 4.WI.7M 16,0]g181 13,SM,459 3,OM.214 1,515,M3 2,929.103 2,110,99 B23.M3 411.M 401M,9M 0,39,BM Irtm.W.M. 2,4MJ70 43,242.M3 28,70,242 10,]6q]15 3,169,914 7,198,453 1,4M,208 6,113.497 3,M5,2M 1 AKIM 120143M1 Rewlva5le.: A.0 Merest M,M2 IM,672 im,00 25,M1 9,182 22.017 13,1t41 - M9M1 2,952,4M Caewtllm feu 31,793 mo.m 261,e13 31,3M 25),0]e 71.215 e64,M1 2M,2M - 2m1,1]6 7M,M3 Oue hem 09Mr M.Ift. - 6,3M,111 4.=.= - BM,821 - 33.411 - I. M.W MIS4.152 3,MD,430 Due Irem.l 'gvemmenitl ...a'Je. - - IM,MO 1mOm 161.515 Other 44.M3 25131] 2MM5 ee 245 33 ))M1 07M 2 6 M93@ IM 224 Talsl reelrklad ae.eb 7128315 M201315 45 MS d19 139M.M] 5]0].408 102B949 11010985 70935M 5021826 1]31346M 202W 130 Ow Dan other 9ovemnwwl eperxAee,mrKunam 5855&JA 'N.44342 2e21022s 51c±034 41M1M +94615 6521315 2271920 1206BM BB.MO.MO M.MOMO DelemEc ", �Q$-�3 M." eeo uz Meet e9.211 129391 140021 69: 4.053 2M.024 2.+e2.e6] Pmp".plant eM epukxram,at m.l'. Lend 1541.184 1.7m.979 1 Watt 239.413 Imam 19w.w 439,133 40,M1 4W.610 7.140,672 7.12l.W4 Mwa9e.1ses"No", 5,SM,4W 101,638,389 79,11a,070 ]1,92e)92 5,735,70 43.078.272 20,176,311 17),)21 M,132,028 M.M3,231 317,211,179 Ss ".Imam facials. M,01,033 Im,3M.6m IM,MB,420 a,1M,823 I9,M1,280 51,525,M2 35,851.411 5,11%. M 1144M,1M 513,]38,012 W.349,21l Seaape dNpeu11ec611eI 8,BM,M3 M,035.099 25.O01,M4 3.3M,713 3.039,621 6,208.149 5,875.010 931,105 2,228768 81030,012 M.M9,4112 G.-.l PI.N"9dnw.V.IN. ,.Mae 10,4M,311 27,09,1M "M2,)BS 3,656,116 3,M7,412 9,m1,113 6,m3,3M 4,113.421 3,226,005 M831,497 11OM1152B CONruabn th'm ... 15719M9 41,474,175 9,519M9 ).MOM 9M3.tm 15M0322 16422.9M 1,314,441 4.170.80 1M.142014 123.WU TOW pmpeOY.Want aM epWDmanl 1M.3505M 2147,121. M W.831.1542 10.Bm.8M 3903.914 1m.M9.142 M.966.3d 12,44Z475 M.181,759 1,1]],132438 1.130,M3.387 Late emm Ied dWadetbn 33.570.520 1126U412 114MOW 16]121n 11344518 41348851 28444.9M 3.127212 13.5124T1 376 M5M 343432]30 Nett tty.plant and mipmenl 08,703.1 Z31.SM.M2 233M7.952 e1t4M742 28336395 071304W 585233M 93151M MBM.ZM BMM38M )MM65) E... -u ... om over ewM raw on.c ved....l. 120104M 12ONA 12]44201 Other abel.,al Mtl,feu snnulsled emMlzelion 252MB 751.2m 7M640 121721 143.215 3i5628 452011 23,101 M899 2.021M7 23115M Tall W. 1 0.107.011 1 M55W2W S 384083117 6 SYM1114 1 W.140149 1 127931212 S 91.102.178 S 22.515.721 9 72270,372 S U24,7239% ! 131DAM1]] See eaemDanY^B M.'aMem aueNon'reperl (Cmllnead) COUNTY BRMTRTION DiSTNICTO OF OMNGE COUNTY CM1,1010 oaln Bnnl ICMInundI Jura 30,1B98 YMO Cornpalelive Taltl•for June b,1907 Ob91d D.Ur Dh9k1 04vid District DI•Irip Dh11M DI•bid Obldcl 112.j Na 2 NPJ NB.S N" Nat N911 NQ I N' 14 IBA 39QZ Clwenl IIabPeas payable from pneMeuela Aomunl4 payable i 577,15e ! +023,IoB S 1098,215 ! 233,120 3 1901,484 ! 533.615 7 494,137 3 6015] ! 179,ID1 ! 5,59],39) S 8?56.853 Rmoed e.gamea 501.629 1.558,999 1021,100 214048 192,604 534,228 369,184 50,120 181.03 5326,423 4,047,088 Other 241 853 01] 09 81 221 156 25 13 3213 Uri wrtenl l[WIMle• payable M1an oarenl eaaeb 1159028 2163.05] 3.324.697 445 get _3$S,M Iwe 202 0&10 120 BB5 360 NO 10031@29 11 Q134.1 Cunanl Ilpbilli spayable from nbklad..,at.r R.I...payable 224.241 004000 "750 52755 70,101 398,821 151,991 23,410 69.810 2,457,571 1.683,085 Inleren pryabb 717,070 1,719,146 1,539055 255,152 10 ,325 227,624 141,1611 935 5.494 4710,250 5,565,927 0ap'.9a 32,218 113,165 183,153 11.23E 32.293 07,428 31.361 25a 992..T 1,a17,148 2.921,291 Due to olMr DwUsA• 10.737,202 239,503 2.111,204 1.144,200 WOOD 4,921,982 4,701,228 510,902 1.530.599 21,142,849 14,309,210 Ck9n4 erW fudOmenl•pgmOb, oarenl portion astral 133,13B4 121,549 16,969 14.54C6 46,999 26.802 4.012 11.256 429.603 5245a6 Gan...I ob1i0.1ion bond•payable. nenl Won - - - - 15.000 - - 15,000 15.DCC C.MiIcaloa.1 plan.,mbn payebb, wna (podbn 1,502 NO 4099,750 3,644,020 005.855 472,610 850.381 813,583 8,160 411,000 12,105000 11]01850 Total cunenl W0,1114• p•rabl.9om ru0kl•E eaaata 13 50,12@ 11961859 4a61.40p 2N625B 19093.42 _E.i1912Q 6120107 540.46] __],Q44.1ss 48611237 N3Qs49Z Long term b8biAms Compmyled ebl once• 333,5C0 955300 910,200 12?100 104,200 335,400 181,300 34,300 Sg300 3,095,600 2,814800 Uern.eM IuEBmenl•peyeble, n.anl palbn 109.062 312.350 297.015 39,595 ]4,082 109,564 62,550 11,227 28.283 1002408 1783,935 NEbe..peyeble - - - - 180,+50 General pbtlga6pn I payable, nol93man1 pwlion - - - - 15,000 CMNlosw.d pa0k1pallon'.'able .enl poMbn.10 Obmwnt 46.531,908 122,286.291 118.131,104 20.501,335 15,651K6 25,495.426 23,527.078 290,3a 1,107.900 312653,011 354.611,740 Deferred revenln 47 32740 - 00400 80.4 Total plg arm I.bil lbr 4AffA55D 121.01LM 111125151B 208020]0 15.952.w6 358/0490 _$3.9]3.P 335012 +01415 319002G9] 359553030 Tdel bebllilbl _ 01393,79 M102323 129105524 21.155.153 1007379B 33.527 OR 30.19]B38 1.105353 401940a 430,401249 43914102tr F1me.mllY Contrlbded ospAel 5.95J,13$ 55,108447 35004213 14,930,543 5,4w.716 18,653,660 14,532.189 8,0364818 53.503.619 241,153.400 238,368.273 R•Ierad erW99 pmmul rim depot)o 25050218 196.119.433 219034.14D 4924143 36621634 75.749.574 45032059 13.373550 1160527913 60.169256 63510001tr T'1e11und amity 31601251 261527550 254.910351 64D21 Bat aj UyVN 944032J4 60,348.25Q _Zj 4 LOQ9_8 614598B0 008322050 611177.150 Total labl90a.am IunE aywly 3 83197,001 1 ]65590.203 3 Z04C03077 S 07021.134 3 60.10.140 1127031.212 3 01.1021TO 3 225/6721 S 72270372 3 I324125N05 3 1.310615.117 6ee.ucmpenying Mdepend.rI eudNmY rap'n. 11 r1/1999 2:19 PM Orange County Sanitation District One District, One Rate Cash Flow Projections Proposed Preliminary Preliminary P®liminary Preliminary Preliminary PrOhniftary Preliminary Preliminary Preliminary 10 Year Qel O�i� tun 1999-00 2000-01 2001-02 02=03 03-04 04=05 05_06 O6_0] 07-08 00_09 Total Revenues. 1 General User Fees 65,805.740 60,597,600 72,20,680 75,958.960 79.673.840 83.845.955 88.043.720 92.704.420 96,516.200 101.231.050 024,644,365 2 Purnihed User Fees 6.206000 6.362.000 8523.000 6,687,000 6,856.000 2,026,000 1,202.000 7,382000 7.566.000 7,755,000 69,564,000 3 Properly Tares 32,061,000 33,518.000 34.102,000 34,872,000 35.569.000 36.280.000 33.003.000 37,748,000 38,503,000 39,273,000 359,018.000 4 New COP Issues 151.000.000 - 180,000000 - 173,000.000 - 140.000,000 - 102.000.000 - 760,000000 5 Interest Revenues 26.712.000 28,294.000 DeN0000 25.257.000 24,431.000 25.561.000 26.045.000 21.9)4,000 27.461,000 26729.000 266,144,000 6 Connection Fees 5,182,000 5,301000 5.416000 5,529,000 5,6430DD 5,757,000 5,871,000 5,985. 00 6.099.000 6,213.000 57,000.000 3 Other Re•2nuss(Ind IRM) 61.331.000 1.289.000 4,292,000 4,79),000 4,301,000 4,305,000 3,809,000 3.813.000 3.817.000 3,813.000 95.571,000 B Revenues 355,102,740 143.361600 337,563.880 153,100,960 329.472,B40 162.994.955 30E.777,720 175,805,420 281962,200 185,018,050 2.432,741365 Requirements'. 9 OperB Mice EV 53,356,500 54,]]9,000 55,866,000 56.938.000 56.025,000 59,116,000 80.210000 61,308,000 62411,ODD 63.517,000 585,516.500 10 Capital Outlays.Ind GMS 92e00.000 150.678.000 159710.000 148.340.000 105.253.000 72,662.000 62.663,000 75,866000 )8,]05,000 BD.939,000 1.029,304,000 11 COP and GO Service 41,690.000 48.867.000 52,i6O0D0 65.981'000 73.992.000 81.987.000 80,388.000 94,759,000 99,631.000 104,385.000 756040,000 12 Other Requirements 1,122.000 1,122.000 1.122.000 1,122.000 1.122.000 1,122,000 1.122.000 1122.000 1,122.000 1,122,000 1 11,220,000 13 Requirements 188.568.500 256446,000 22],BSfi.000 Z]Z.381.000 238,392.00D 214,681,000 212,383,000 233055000 241,949,000 249.963,NO 2,380.080,500 14 Revenues-Requirements 166,534,240 (112,004A00) 63.707.680 (119,280,040) 91080,840 (52,112.045) 96,394.320 (57.448.580) 40,013,200 (64,944.950) 51860,865 A mulcted Funds: 15 B,,nnirg of Year 370,400.000 544.934240 432,049,040 40,557,720 377,2)2,600 468,358,520 416246A75 512,641.195 455,192,615 495205815 378A00,000 16 End of Year 544,934240 432,849,MO 496,557,720 333,222,680 468,358.520 416.246.475 512,641,195 455,192615 495,205,815 430.MO,BfiS 430.260,865 Sewer Semce User Feesi 13 Avg SFR Annual User Fee S73.00 $80.00 U4.00 $88.00 $92AD $96.50 $101.00 S106.00 $110.00 $11500 IB Percentage Change (201%) 3.90% 600% 4,76% 455% 489% 4.66% 4,95% 3.27% 4.55% 19 Eaulr4knt Pwlling Units B54,620 052.420 880320 W3.120 866020 068,870 871,720 874,570 822,420 800,270 20 SFR Connection Fee $1,020 $1.1360 $I'M $1.940 $1.980 $2.020 $2,060 $2.100 $2.140 $2,180 COP Co nnooe Ratios 21 Sent.Lien.Min 1.25 5.98 299 2.33 2,44 224 2.14 2.09 2,07 2,03 2ol 22 Junior Lien.Min 1.00 3.04 1,50 1.36 1.21 1.10 1,05 1,03 101 0.99 0.98 23 Sr Additional Bonds,1 25 5.98 299 2.23 2.44 2.24 2.14 2.09 202 2.03 2.01 24 Jr Additional Bonds, 1.00 5.16 2.00 1.31 1.41 1.20 1.10 105 f02 098 0.96 Gaeuel.salfin@101FY 1999-00\Revenue Area 99-00 Sud"ILAS One Dist,ale rate 112/1999 2'.18 PM Orange County Sanitation District Summary Cash Flow Projections, Revenue Areas 1 - 14 Proposed Preliminary Preliminary Platinum, Preliminary Pelrunary Preliminary Preliminary Preliminary Preliminary 10Year Ref DPtusa 199900 200001 2001.02 0202=03 N-04 N-05 05-06 06=07 07=08 OB_09 Tole] Revenues: 1 General User Fees 60095,000 213a8,000 75.515.000 79,105,000 82,907.000 87,046,000 91,136,000 95.219.000 99,461,000 103,82Q000 854238,000 2 Pamitled User Fees 5.206.000 6,382.M 6.523.000 6,882,000 6,855.000 2,026,000 1,20;000 7,382.000 1,586,000 7.765,000 69,564.000 3 PnopeOy Taxes 32.851,000 33,518.000 34,187,000 34.872.001 35,559,000 30,280,000 32,002,000 31,748,000 38,503,000 39,273,000 359.018,000 4 Nen COP Issues 157.000.000 - 186800.000 - 113,000,000 - 140,000,000 - 102.000,000 - 760,000,000 5 Interest Revenues 28."15.000 28A22,0o0 27,144,000 25.670,000 25,061.000 ".4125.000 27.948,000 29,314,000 29,W3,000 26.574.000 274,429,000 6 Con ia,a.0 Fees 5,187,000 5,3111.1101 5.415.000 5.529.000 5.643,000 5,251,000 5,871,000 5,985,000 8,091.000 6.213.000 57.000,000 T Other Revenues 81,331.0W 3,289,000 6.292.000 4,797,000 4301.000 9.305,000 3.809.000 3.813.000 3.811,000 3,812,000 119.521.000 8 Revenues 3T.458,000 1487W.000 3a3,UT6,Oo0 150,fifi0,000 333,416.000 106,839,000 312.913.000 179,461.000 206.489.000 189,458,000 2,494.820.000 Recuiraments: 9 Oper B Mt.Exp 53,358.900 W,TT9,000 55.856.000 56.936." 58,025,000 59,111 W,210,000 61.308.000 62.411,000 63,517,000 565.516.500 10 Caplel Ouusys.Ind GWRS 92.a00,000 150.678.000 159,718,000 148,340,000 105,253.000 72.W2,000 62.663,000 25,666.000 ]8.]85.000 W.939.000 1,022,304,000 11 COP and GO Service 41,690,000 48,887.000 57,160,000 85,981,000 03,992,000 61,987,001 88388.000 94759,000 99.631.000 ioems,000 758,840.000 12 Other Regunish.Ms 21,122,0110 Un,000 5,122,000 1.122,000 1,122.000 1,122,000 1,122,0o0 1,122,000 1,122,000 1,122,000 39.220.000 43 Regueemenls M.s88,500 259,445,000 227.856.000 2T2,381,000 238,392.000 214.867,000 212,M.W0 233.055.000 241,949.000 249,963,000 2,408880.500 14 Revenues-Rin mremenls 160,889.go0 (110.656,000) 65,220.000 (115.721.000) 95.024,1100 (48,048,000) 100,590,000 (53.594.000) M,540,000 (60,505,000) 85.139.900 A uhulatxl Funds: 15 BWnni,of Year 328.400,000 547,289,500 436.633.500 Wl.853.5W 385.132,500 481.15e500 433.1(10,500 533,696,500 480,104,500 524,W4,600 378.400.01I0 16 Endof Year 549.289,500 436.633,500 501853.500 355.1E2,500 451.156.500 433.IW.500 503.696.500 480.104,500 524,W4,500 46di.139,500 464,139,500 Serer Service User Fees: tT Avg SFR Annual User Fee $79.68 $8329 $8778 $91.641 595.83 3100.18 $104.55 61o8.88 $11336 $11295 18 Percentage Change 140% 5.16% 476% e40% 4.59% 4.54% 438% 4.14% 4,11% 4.05% 19 Equivalent Deelking Unds 854.620 857.470 650,320 W3,170 81 860.870 e71.720 874.570 877,420 880,270 20 SFR Connection Fee $1.820 $1.860 S1,900 $1340 $1,980 $2,020 $2.060 $2.100 $2.140 $2.180 COP Caveaege Raises 21 server Lt..Min 1.25 a.99 3.20 2.91 2.54 2.W 2.24 2.19 2.15 2.12 2.09 22 Junket Lien.Min 1 00 3.55 1.60 1.0 1.28 1.15 1.10 102 105 103 1 02 23 Sr AdiiOdWB 9.1,25 a.99 3.20 2.91 254 2.34 224 2A9 2.15 2.12 209 24 Jr Additional Bonds.100 8.20 2.21 1.90 1.51 1.30 1.20 114 1.10 1.07 1.W GJe+ceLtlla\fm210\FY 1999-00\Revenua Area W00 Budgatxls Budget All Dist Cash Flo r / 12n1111999 1:52 PM Orange County Sanitation District One District Excluding 7 & 14, One Rate Cash Flow Projections Proposed Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary 10 Year Ref Dexri n 109-00 2000-01 02 01.02 02_03 0104 04_06 0505=06 08=07 07=08 08_09 Total Revenues'. 1 General User Fees 57,920,640 60,397,600 93,640,080 68.903.760 70.188.840 73,877,505 77.590.220 81,712220 85,007,200 89.259,550 726,585,415 2 Permitted User Fees 5.591,000 6.732,000 5.877.000 8.025,000 6,176.MO 6.330.000 6,469,000 6,651,000 6,817,000 8.907,000 82875,000 3 ProPedy Tales 29,568,000 30,159,000 30,761,000 31,377,000 32,004.000 32,644,000 33,298,000 33.965,000 34,644,000 35,337.000 323,757,000 4 New COP Issues 127.000,000 - 158,000,000 - 148,000.000 - 125,000,000 - 87,000,000 - 645,000,000 5 Interest Revenues 23,825,000 25,073,000 24,266,000 23,124000 22.369.000 23.443.000 24.841.000 25,947,000 25,475,000 24,810.000 243,175.000 6 Correction Fee. 4,823,000 4,929,000 5,036,000 5,141,000 5,247,000 5,353,000 5.459.000 5.565,000 5.671,000 5,777.000 53,000,000 7 Other Rewrote(Ind IRM) 57,181,000 3,139,000 3.142,000 1,147,000 1,151, 00 1,155,000 1.159.000 1,163,000 1.167,000 1,167,000 71.571.000 B Revenues 305.016.640 129,429,600 290,723,080 133.717.760 285,135,640 142,802.505 273,036.220 155,003,220 245.861.200 163,337,550 2,125,763,415 Requirements: 9 Oper&Mks E.p 46,01 47,279,000 48.209,000 49,142,000 50,081,000 51,021.000 51,965,000 52,911,000 53.862.000 54,915.000 505,333.500 10 Capital Outlays,Ind GARS 81,270.000 126,08.000 125,610,000 127,774,000 92.433.000 58,474,000 55,231,000 67,062,000 60,623.000 71,913,000 875,466,000 11 COP and GO Sarvloe 37,953,000 43,765,000 50.723.000 58,174,000 65.046.000 71,909,000 77,949,000 83,647,000 87,824,000 91,890.000 668,880.000 12 Other Requirements 6,975,000 2,975,000 2,975.000 975.000 975,000 975,000 975.000 975,000 975,000 975,000 19,750,000 13 Requirement. 172,246.500 220.107,000 227.525.000 236,065,000 208,535000 183,3)9,000 186,120,000 204,595,000 212.284,000 219,593,000 2,069,449,500 14 Revenues-Requirements 133,670.140 (90,677,400) 63,198,080 (102.347,240) 76.600,640 (39.576.495) 87,716,220 (49.591.780) 33,577.200 (56,255,450) 55,313,915 Accumulated Funds. 15 Beginning of Year 344,963,000 478,623,140 387,945740 451,143,820 348.796.580 425,397,220 385,820,725 473,536,945 423,945,165 457.522,365 344,953,000 16 End of Year 478,623,140 387.945.740 451,143.820 348,796,580 425,397.220 385,820,725 473,536,945 423.945,165 457,522,365 401,266.915 401,2F6916 Sewer Service User Fees: 17 Avg SFR Annual User Fee $77.00 $8000 $84,00 $68.00 $02.00 $96.50 $101.00 $106.00 $11000 $115.00 18 Parcenlage Change (2.01%) 3.90% 500% 4,76% 4.55% 4.89% 4,06% 4,05% 3.77% 4.55% 19 Equivalent Dwelling Units 752.320 764.970 757.820 780,270 762,920 785.570 768,220 770,870 773,520 776,170 20 SFR Connection Fee $1.820 $1.860 $1.900 $1,940 $1s8a $2.020 $2,080 $2,100 $2,140 $2.180 COP CoveraOe Ratios 21 Senbr Lien,Min 1.25 5.90 3.03 2.72 2,38 2.20 2.12 2.08 2.05 2.02 2.00 22 Junior Lien.Mln 1.00 3.08 1.58 1.38 1.20 1.11 1.06 1.04 1.02 1.0 0.99 23 Sr Additional Bond..1.25 5.90 3.03 232 2,38 220 2.12 2.08 2.05 2.02 2.00 24 Jr Additional Bonds,1.00 5.34 2.14 1.77 1.40 1,21 1.12 1.07 IN 1.0/ 0.90 G:1Bxcel.dtaNO¢ID1FY 1999.0011e arrea Area 9940 Budget%7&14.oJe One 011 7&14.one rate 12/31/1999 1:53 PM Orange County Sanitation District,Revenue Area No 7 Summary Cash Flow Projectlons Proposed Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary 10 Year Ref Description 199 2000.01 2001-02 02-03 03_04 04_05 05_M 06-07 07_08 08-09 Total Revenues. 1 General User Fees 6.752.000 7.483,000 8,216,000 8.952.000 9.691.000 10,433,000 11.178.000 11.926.000 12.676,000 13,429,000 100.736,000 2 Permitted User Fees 615,000 630.000 646,DOD 662,000 679,000 696,000 713,000 731,000 749,000 768.000 6,889,0D0 3 Property Taxes 3,293,000 3,359,000 3,426.000 3.495.000 3,565,000 3,636,000 3,709,000 3,783.000 3,859,000 3,936,000 36,061,000 4 New COP Issues 30,000.000 30,000,000 25,000,000 - 15.000.000 - 15,000,000 - 115,D00,000 5 Interest Revenues 2,170.000 2,316,000 1.809,000 1.353.000 1,289.000 1.344,000 1.248.000 1,328,000 1,373,000 1,417.000 15,647,OD0 6 Connedion Fees 364,000 372.000 380,D00 388,OOO 398,000 404,0D0 412,000 420,000 428,000 436.000 4,OD0,000 7 Other Revenues 7,240.000 112,000 112,000 112.000 112,000 112,D00 112,000 112,000 112,000 112,DD0 8.248,000 B Revenues 50.434,D00 14.272.000 44,689,000 14,962,000 40.732,000 16,625,OD0 32.372,D00 18,300,000 34,197,000 20.098,000 286.581,000 Requirements: 9 Oper B Mlce Exp 5,910,500 6.065.000 6.184.000 6.305,000 6,425,D00 6,547.000 8.668,000 6.791,000 6.914.000 7.038.000 64,847,500 10 Capital Outlays 9,336,000 21.617.000 30.937.000 17.634,000 10,847,000 12,687,000 5,952.000 7.051,000 7,361,D00 7.249.000 130,671,0D0 11 COP and GO Service 3.577,000 4,940,000 6,276,D00 7.644,000 6,782.000 9,914.000 10,272,000 10.947.000 11.640,000 12.326,000 86,318,000 12 Other Requirements 8.117.000 117,000 117.000 117,000 117.000 117.000 117.000 117.000 117,000 117.000 9.170.000 13 Requirements 26,940.500 32,739,01D0 43,514,0D0 31,700,000 26,171,000 29,265.0D0 23.009.000 24,9D6,000 28.032,000 26,730,000 291,008,500 14 Revenues-Requirements 23,493,500 (18,467,00(1) 1,075,000 (16,738,D00) 14,561,000 (12,640,000) 9,363,000 (6,606,000) 8,165,D00 (6,632,000) (4,425.500) Auumulaled Funds: 15 Beginning of Year 25,818.000 49,311.500 30,844,500 31,919.500 15,181,500 29,742,500 17,102,500 26,465,500 19.859.500 28,024,500 25,B78,000 16 End of Year 49,311,500 30,044.500 31.919,500 15,181.500 29.742,500 17.102,500 26,465,500 19.859,500 28,024,600 21,392.500 21,392,500 Sewer Service Use,Fees: 17 SFR Annual User Fee $66.00 $73.00 $60.00 $87.00 $94.00 $1O1,00 $10600 $115,00 $122.00 $129.00 18 Percentage Change 10.00% 10.61% 9.59% 8.75% 8.05% 7,45% 6,93% 6.48% 6.09% 5.74% 19 Equivalent Dwelling Units 102,300 102.500 102,700 102,900 103,100 103,300 103,500 103,700 103.900 104.100 20 SFR Connedion Fee $1.820 $1.860 $1,900 $1,940 $1.980 $2,020 $2.060 $2.100 $2,140 $2.180 COP Coverage Ratios 21 Senior Lien,Min 1.25 8.92 3.29 2.55 2.15 2.00 1.92 2.05 2.06 2.07 2.08 22 Junior Lien,Min 1.00 3.66 1.37 1.11 0.94 0.88 0.55 0.88 0.89 0.90 0.91 23 Sr Add0lonal Bonds,1.25 8.92 3.29 2.58 2.15 2.00 1.92 2.05 2.D8 2.07 2.08 24 Jr Additional Bonds, 1.00 5.26 1.64 CIS 0.89 0.79 0.74 0.79 0.81 0.82 0.54 G:lexcel dIMfmi220Wudget\FY 1999-0MRevenue Area Summary\Revenue Area 99-DO Budget%7814 As DIet7Cesh8o 12/3111999 1.54 PM Orange County Sanitation District,Revenue Area No 14 Summary Cash Flow Projections Proposed Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary 10 Year Ref Description 1999-00 2000-01 2001-02 02-03 0304 04-05 05-06 06_07 07=08 08-09 Total Revenues: 1 General User Fees - - - - - - - - - - - 2 Permiged User Fees - - - - - - - - - - - 3 Property Taxes - - - - - - - - - - - 4 New COP Issues - 5 Interest Revenues 564.000 627,000 594.000 604,000 589.000 599,000 607.000 591,000 563,000 531,000 5,869,000 6 Connection Fees - - - - - - - - - - 7 Other Revenues 6,920,000 2,038,000 5,038.000 3,538.000 3,038,000 3,038,000 2,538,000 2,538,000 2,538.000 2,538,000 33,762,ODO 8 Revenues 7,484,000 2,665,000 5,632.000 4,142,000 3,627,000 3,637,000 3,145,000 3.129,000 3,101,000 3,059,000 39.631.000 Requirements: 9 Oper 8 New Exp 1,397,500 1,435,000 1,463." 1,491,b00 1,519.000 1.648.000 1.M,000 1,608000 1,635.000 1.664,000 15,335,500 10 Capital Outlays 1.794,000 2,973,000 3,163,000 2,932,000 t,973,000 1,501.000 1,480,000 1.753,000 1.801,000 1,777,000 21,147,000 11 COP and GO Service 160,0D0 162,000 161,000 163,000 164,ODO 1"." 167,000 165,000 167.000 169.000 1.642.000 12 Other Requirements 30,000 30,000 30,000 30,000 30.000 30,000 30,000 30,000 30,000 30,000 300,000 13 Requirements 3,381,500 4.600.000 4.817,000 4,616.000 3,686,000 3243.000 3,254.000 3,554.000 3,633,000 3.640,000 38,424,500 14 Revanues�Requlremenl3 4,102,500 (1,935,000) 815,000 (474.000) (59,000) 394.000 (109.000) (425,000) (532,000) (571,000) 1,2W,500 Accumulated Funds: 15 Beginning of Year 7,629,000 11.731,500 9,796,500 10,611,500 10,137,500 10,078,500 10,472,500 10,363,500 9.938.500 9.406,500 7,629,000 16 End of Year 11,731,500 9,796.500 10.611,500 10.137.500 10,078.500 10,472,500 10,363,500 9.938.500 9.406.500 8,835,500 8.835,500 Sewer Service Use,Fees: 17 SFR Annual User Fee $0.00 $0.00 50.00 $0,00 WOO $O.00 $0.00 $0.00 $0,00 50.00 18 Percentage Change 19 Equivalent Dwelling Units - - - - - - - - - - 20 SFR Connection Fee 51,820 51,860 51900 51940 $1980 $2,020 52,060 $2,100 $2,140 S2.1S0 G:texcel.dtaVmV201budget%FY 1999-00Utevenue Area Summary\Revenue Area 99-00 Budget X7&14.xis Distl4Cash8o Projected SFR User Fees $250 $200 - - - - $150 LL Q $100 $50 _1 $0 fln 1999-00 2000-01 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 O 1 O 2 =3 =5 =6 O 7 = 11 = 13 t One Rate �-Wtd Avg 01a02000 Rah ChM ChM 1 10:10AM STEERING COMMITTEE MeebngDate Tosd.ofDir. 1/26/00 AGENDA REPORT II1Number I Item Number Orange County Sanitation District FROM: Donald F. McIntyre, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: February Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the tentative agenda items scheduled for review by the Working Committees in February. SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Boards at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Committees in February: OMTS Committee: 1. Consider Source Control Ordinance 2. Consider contract to Evaluate Odor Control Program 3. Report on Plant 2 Earthquake Damage Contingency Plans 4. Provide update on District Assessment and Reinvention Team (DART) 5. Benchmarking Report PDC Committee: 1. Ratify Change Order No. 3 to Job No. P1-44-4, Seismic Retrofit of Four Structures 2. Ratify Change Order No. 1 to Job No. P2-39, Rehabilitation of Digesters at Plant No. 2 3. Ratify Change Order Nos. 1 and 2 and Approve Closeout Agreement and Notice of Completion for Contract No. 11-23, Huntington Beach Sewer and Abandonment 4. Ratify Change Order No. 2 and Approve Closeout Agreement and Notice of Completion for Contract No. 2-40, Replacement of Santa Ana River Interceptor Control Gate (SARI) 5. Ratify Change Order No. 9 and Approve Notice of Completion 6. Ratify Change Order No. 4, Contract No. 5-41-1, Relocation of Lido Pump Station 7. Ratify Change Order No. 2 and Approve Closeout Agreement and Notice of Completion for Contract No. 7-7-1, Improvements to Main Street Pump Station 8. Ratify Change Order No. 2 and Approve Closeout Agreement and Notice of Completion, Job No. P2-45, Warehouse at Plant No. 2 9. Award Purchase Contract for E-276 (Equipment for Job No. J-33-1, Standby Power and Reliability Improvements) 10. Approve professional services agreement re Job No. P2-66, Headworks Improvements at Plant No. 2 11. Report on Job No. J-47, Cable Tray Improvements 12. Discuss Change from Foster Rehabilitation to new OOBS Annex, Job No. J-59, Foster Pump Station FAHR Committee: 1. Consider 1999-00 Mid-Year Operational and Financial Report 2. 2000-01 CIP Budget Status Report 3. Consider General Manager's Approved Purchases Report 4. Quarterly Investment Program Report 5. Consider Update of Human Resources Policies & Procedures 6. Select Liquidity Provider and Trustee for COP Restructuring 7. Consider Meeting, Training and Travel Policy Revisions PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA jt Hhp.WayegalSIEERING coMwrtEearwauotxoo�;ud MSlaiM�ayar Mc Page 2