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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 6, 2008 <br />Action Agenda <br />Item No. ~ - G <br />SUBJECT: Efland Sewer Rate St <br />DEPARTMENT: County Manager <br />PUBLIC HEARING: (Y/N) 0 <br />ATTACHMENT(S): <br />1. Raftelis Rate Study Summary - <br />Powerpoint Slides from 10/21/08 <br />BOCC Meeting <br />2. Proposed Efland Sewer Rate <br />Schedule -Impact on Typical <br />Customers <br />3. Timeline for Establishing New Rate <br />Schedule <br />4. Summary of Water and Sewer Rate <br />Schedules for Other Local <br />Municipalities and Systems <br />5. Implications of Delaying New Rate <br />Schedule <br />6. Draft Letter to Customers Notifying <br />Them of the Public Hearing for New <br />Rates and Explaining the Need for a <br />Rate Increase <br />INFORMATION CONTACT: <br />Kevin Lindley, Engineering Specialist, <br />245-2313 <br />PURPOSE: To provide information for further discussion and BOCC decision on the new rate <br />schedule for the Efland Sewer System. <br />BACKGROUND: The Efland Sewer System was conceived in the early to mid-1980s as a <br />remedy for failing septic systems in the Efland Community. The Efland Sewer System was <br />established by Resolution of the BOCC in November 1985. The rates set at the time were <br />sufficient for the operation of the system. However, over the last twenty years of operation, the <br />costs of both operation and maintenance have increased steadily while the rates have remained <br />unchanged. At the present time, the revenue generated by the current rate structure accounts <br />for only 20-25% of the full cost of operating and maintaining the system. The remainder of the <br />system cost is paid from the Orange County General Fund. <br />With this in mind, the BOCC authorized Raftelis Financial, a consultant who specializes in rate <br />studies, to study the system and create arevenue/cost model. The model shows the system's <br />costs versus its revenue and shows how different rates affect customer's bills and the amount <br />of the County's General Fund contribution. This cost model, which is in the form of a multiple- <br />page spreadsheet, has been completed. Frank Davis, the Raftelis representative who headed <br />