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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 11, 2008 <br />Action Agen a <br />Item No. ~ -q <br />SUBJECT: Efland Sewer Rate Schedule Change <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) NO <br />ATTACHMENT(S): <br />1. Proposed Efland Sewer Rate Change <br />Schedule -Impact on Typical <br />Customers <br />2. Text to Amend the Efland Sewer <br />System Ordinance Resolution <br />3. Existing Efland Sewer System <br />Ordinance Resolution <br />4. Alternate 5 Year Rate Change <br />Schedule <br />INFORMATION CONTACT: <br />Kevin Lindley, Engineering Specialist, <br />245-2313 <br />PURPOSE: To amend the Efland Sewer System Ordinance with a new rate schedule that <br />generates enough rate payer revenue to sustain the system without General Fund subsidy. <br />BACKGROUND: The Efland Sewer System (System) was established by Resolution of the <br />BOCC in November 1985 (Attachment 3). The rates set at the time were sufficient for the <br />operation of the System. However, over the last. twenty years the cost of both operations and <br />maintenance has increased steadily while the rates have remained unchanged. At the present <br />time the revenue generated by the current rate structure accounts for only 20-25% of the full <br />cost of operating and maintaining the System. The remainder of the System cost is paid from <br />the Orange County General Fund. <br />The BOCC authorized Raftelis Financial, a consultant who specializes in rate studies, to <br />analyze the System and create aself-supporting revenue/cost model. The model compares the <br />System costs versus revenue and analyzes how different rates will affect customer bills and the <br />County's General Fund contribution. The BOCC was presented the highlights of this model and <br />the results of the study on October 21, 2008. <br />Using this model, staff is proposing a three year plan to raise rates to the level needed to <br />adequately fund the System. This rate schedule (Attachment 1) was presented at a regular <br />BOCC meeting on November 6, 2008, and was also presented at a Public Hearing on <br />November 24, 2008. For comparison purposes a five year plan for rate increases is included at <br />Attachment 4. <br />Last spring, in anticipation of BOCC implementation of a new rate schedule, the General Fund <br />contribution to the System's budget was reduced by $40,000 this fiscal year. The proposed <br />