FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
title
PROPOSITION 218 NOTICES
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Direct staff to prepare and mail Proposition 218 compliant notifications to affected property owners outlining a five-year regional sewer service fee schedule with annual increases of approximately 3.53 percent for fiscal year 2027-28 and 4.75 percent for fiscal years 2028-29 through 2031-32; and
B. Approve a Sole Source Purchase Order with United States Postal Service for postage to mail the Proposition 218 compliant notifications for an amount not to exceed $400,000.
body
BACKGROUND
The Orange County Sanitation District’s (OC San) current five-year sewer fee rate schedule expires at the end of fiscal year 2027-28. OC San staff proposes the Board adopt the next five-year regional sewer fee schedule a year earlier than anticipated to be able to assess fees on the customers transferred as part of the Flow Exchange Agreement with Irvine Ranch Water District. OC San engaged HDR Engineering, Inc, an engineering consulting firm, to provide an independent analysis of OC San’s cash flow modeling and a comprehensive cost of service study to ensure the appropriate allocation of costs and fees. This study has been completed and presented to the Administration Committee at this meeting as a separate agenda item. Based on this information, forecasted operating expenses, and cash flow modeling, staff recommends annual increases on average of 3.53% for fiscal year 2027-28 as previously adopted and 4.75% for fiscal years 2028-29 to 2031-32. The rates for fiscal year 2027-28 are proposed to remain the same as adopted in the previous five-year rate schedule.
RELEVANT STANDARDS
Stable rates based on a validated cost structure which minimizes unforeseen rate increases
PROBLEM
Proposition 218 requires that OC...
Click here for full text