1997-05-14
. MINUTES OF CARDIFFSANITATION DISTRlCT ADJOURNED REGULAR
MEETING, MAY 14, 1997, 6:00 P.M, 505 S. VULCAN AVENUE
Chairperson Bond called the meeting to order at 6:07 P.M.
Present: Chairperson James Bond, Board Members Lou Aspen, Sheila Cameron, John
Davis, and Chuck Du Vivier.
Absent: None.
Also Board Manager Wasserman, Board Attorney Krauel, Board Clerk Cervone,
Present: Assistant Board Manager Benson, Public Works Director Nelson, Engineering
Services Director. Arclübald, Financial Services Manager Suelter, Management
Analyst Orozco, Dep~ Board Clerk Greene.
There being a quorum present, the meeting was in order.
A.GEMM.J:IEM
~. Cl. Public Heari.-. and In~u~n of Ordinence Nq. 97-02 Increasùic AnDlwl Sewer
Service Chaqes and I.~tio" of Ordinence Nq. 91-03 Decr~inl Sewer
Conn~tionlCapaci(y .. F~ for Cardiff SanÜ8tio" District. COBtact Persoa:
Management An.b'st Orozco.
Management Analyst Orozco stated that in 1990, the District issued $12.5 Million in bonds for the
expansion and upgrade of the San EliJo Water Ponution Control Facility. Per the bond covenant,
the District was required to meet bond coverage requirements each year until the total debt was
repaid in 2020.
On March 28, 1997, staff mailed all Cardiff Sanitation District customers a notice of the May 14,
public hearing to introduce Ordinance 97-02 to increase sewer service charges by 6%. Proposition
218 required that all customers be notified at least 45 days before the public meeting to consider the
proposed rate increase. On April 30, 1997, the District held a public workshop to review the need
for a 6% sewer service charge rate increase and to.decrease connection/capacity fees by 12.4%
Ms. Orozco said the. purpose of the proposed sewer service charge rate increase was to meet the
District's bond coverage requirements. The bond covenant required that the District's total annual
net revenues be at least 110% of the annual bond debt expenditures. Net revenues were defined. as
revenues remaining after payment of operating expenditures.
. Staff had determined two options for raising the sewer service charges to meet bond coverage
requirements.
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05/14/97 CSD Special Meeting
. Qptiog. One: Increase rates 6% ($16 per year)ftom $268 to $284 EDU (for flat rate customers) for
FY 97/98. The District's variable rates, based on water consumption, would also be increased by
6%.
Option Two: Rates would be raised only enough to meet minimum bond coverage requirements in
fiscal year 1997/98. The rate increase would be 3.336% in fiscal year 1997/98. StafIwould return
to the Board in the summer with.arate plan to increase rates again beginning in fiscal year 1998/99.
The rate plan would involve several increases over the upcoming two to five years.
The staff recommendation was to approve Option One to introduce Ordinance 97-02 that would
increase rates 6% ($16 per year) ftom $268 to $284 EDU (for flat rate customers) for FY 1997/98
and the District's variable rates, based on water ~nsumption would also be increased by 6%.
Staff also recommended introducing Ordinance 97-03 that would decrease the Cardiff Sanitation
District sewer connection fees ftom $3,900ÆDU to $3,417ÆDU.
Chairperson Bond opened the Public Hearing.
The fonowing people spoke in opposition to the staff recommendation: Ed Obermeyer and Corland
Prough.
. The Board Clerk read the Ordinances by title.
Davis moved, Bond seconded to waive further reading, introdu~e Ordinance 97-03 approving
Option One to increase rates 6% ($16p.,r year) from $268 to $284 EDU (for flat rate
customers) for FY 1997198 and the District's variable rates, based on water consumption
would also be increased by 6%; and introduce Ordinance 97-03 decreasing the Cardift'
Sanitation District sewer connection fees from S3,900IEDU to S3,417/EDU Motion carried.
Ayes: Bond, Cameron, Davis, DuVivier; Nays: Aspell.
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Chairperson Bond declared the meeting adjourned at 6:40 P.M.
~./
. rah rvone, Board Clerk
By: Kathy Greene,
Deputy Board Clerk
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