FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
title
PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE CHARGES
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Motion to read Ordinance No. OC SAN-XX by title only and waive reading of said entire Ordinance;
B. Introduce Ordinance No. OC SAN-XX entitled, "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-49"; and
C. Set March 22, 2023 as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OC SAN-XX.
body
BACKGROUND
The Orange County Sanitation District's (OC San) current five-year sewer fee rate schedule expires at the end of the current fiscal year. 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 received and filed by the Board in December of 2022, and demonstrates that OC San's proposed fees are appropriate and reasonable and will support projected capital and operating requirements. Based upon the Study, the Facilities Master Plan, forecasted operating expenses, and cash flow modeling, staff recommends annual increases on average of 3.5%. It is anticipated that this increase will be less than average inflation rates and will support OC San's programs while maintaining appropriate reserves levels.
The proposed five-year rate schedule provides for equitable and proportionate distribution for the cost of service of operating OC San's wastewater system:
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
$358
$371
$384
$397
$411
RELEVANT STANDARDS
* Stable rates, no large unforeseen rate increas...
Click here for full text