FROM: Robert Thompson, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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COMPENSATION TO GOVERNMENT ENTITIES AS A RESULT OF THE ORANGE COUNTY SANITATION DISTRICT ACQUIRING REAL PROPERTY IN THEIR JURISDICTION
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve a policy which states that Orange County Sanitation District (OC San) should not compensate government entities for potential loss of revenue, including sales tax, property tax or economic opportunity when OC San acquires real property in the entity's jurisdiction.
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BACKGROUND
During a recent OC San real property purchase process, the Board discussed whether OC San should be responsible for making up property and sales tax revenue another government entity might forego as a result of OC San acquiring real property for its operations.
The Board tasked staff and the General Counsel to research this issue and report back to the Board. Staff and General Counsel have completed the analysis and determined that OC San is not responsible for, and should not compensate government entities for, loss of revenue, real or estimated. OC San has no obligation or authority to pay the equivalent of private party taxes, real or estimated, to another government entity when acquiring property. OC San is responsible for paying its fair share of the cost of its operations including normal and customary cost recovery fees for cities such as permit fees, connection fees, inspection fees, traffic impact fees, and the like.
RELEVANT STANDARDS
* Protect OC San assets
* Ensure the public's money is wisely spent
* Build brand, trust, and support with policy makers and community leaders
PROBLEM
Currently, OC San does not have a policy regarding compensation to government entities when OC San acquires real property in another government entity's jurisdiction.
PROPOSED SOLUTION
Approve a policy stating OC Sa...
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