Agenda - 06-02-2009 - 4gg - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 2, 2009 Action Agenda Item No. q SUBJECT: Efland Sewer Resolution Amendment -Rate Increase Schedule DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) NO ATTACHMENT(S): 1. Amendment to Efland Sewer Resolution - "Attachment A" 2. Efland Sewer Resolution 3. Typical Bills Under New Rate Structure INFORMATION CONTACT: Kevin Lindley, Engineering Specialist, 245-2313 PURPOSE: To amend the existing Efland Sewer Resolution by replacing the current rate structure with a new.rate structure and a four year schedule of rate increases. BACKGROUND: The Efland Sewer System was established by Resolution of the BOCC in November 1985. The rates set at the time were sufficient for the operation of the system. At the present time, however, the revenue generated by the current rate structure accounts for only 20-25% of the full cost of operating and maintaining the system. The remainder of the system cost is paid from the Orange County General Fund. On December 11, 2008 the BOCC authorized creation of a rate increase schedule that would take place over the next four fiscal years beginning on July 1, 2009. This rate increase schedule is designed to eliminate the Orange County General Fund subsidy of the System. In order for the rate increase schedule to become official, the page of the original Efland Sewer Resolution which lists the customer rates must be amended. In the original resolution, the page that shows the rate schedule is called "Attachment A." This amendment to the resolution would simply replace the existing "Attachment A" with the "Attachment A" shown in Attachment 1 of this abstract. For comparison, the original resolution has been included with this abstract as Attachment 2. There have been several citizens who have come forward to speak at recent Orange County Budget Public Hearings (May 21 and May 26, 2009) concerning the increase in sewer rates in Efland. The majority of the citizens who spoke recently have been associated with Habitat for Humanity, which has built several houses connected to the Efland Sewer System. All of the citizens who spoke felt that the rates required to fund the system would be too high for them to afford and the schedule to increase the rates to the required level was too abrupt. At least one person asked the BOCC to consider raising the rates gradually over the next 20 years to the level required to maintain the system. These comments echoed similar comments from other customers who spoke at the Public Hearing for the rate increase in Fall 2008.