In accordance with Health and Safety Code section 6520.5, on September 13, 2005, and February 14, 2012, the Board of Directors adopted Ordinance No. 7 and Ordinance No. 10, respectively that established Sewer User Fees pursuant to a fee structure based on classification and individual customer water usage. The fee structure was designed to be fair for all residents and businesses.  The Sewer User Fees as established are calculated to provide funds required by the District to fund needed capital improvements, provide requisite debt service payments, properly maintain and operate the District’s sewer system, and to comply with State and Federal Waste Discharge Requirements.  The Board approved rates for residential and non-residential were applied to the sewer assessment to be filed with the County. As most of the Garden Grove Sanitary District receives water services from the City of Garden Grove, the adopted sewer rate is charged on the property owner’s water bill.  In the areas of the District that do not receive a water bill from the City of Garden Grove, it was necessary to implement the rate by charging it on the property owner’s property tax statement.

In order to place sewer charges on the tax roll, the Board must conduct a public hearing on whether to approve the report detailing charges proposed to be collected on the tax roll for sewer services in the areas of the District that extend beyond the Garden Grove city limits, and do not receive water services from the City of Garden Grove.  The report is on file and available for review in the office of the City Clerk, and will be available at the June 25, 2019, Sanitary District Board meeting.  The attached Resolution would approve the annual report detailing service charges for each parcel in the service area noted herein and direct that the sewer services charges be collected on the tax roll. 

In order for charges to be collected on the tax roll, the Board is required to conduct a public hearing before approval of the report detailing charges proposed to be collected on the tax roll.

This action will provide for the collection of Sewer Service Fees from properties located outside Garden Grove's city limits for which the Garden Grove Sanitary District provides sewer services.

It is recommended that the Garden Grove Sanitary District Board:

• Conduct a public hearing for the report detailing fees to be collected on the tax roll for sewer services outside the City limits;
  
  
• Adopt the attached Resolution approving the report and authorizing the collection on the tax roll of Sewer Service Fees for property served by the Garden Grove Sanitary District and located outside the city limits (by five (5) affirmative votes ); and
  
  
• Direct staff to file the necessary documentation with the County for the collection of the fees on the property tax bills.

By:  Jeff Kuramoto, Revenue Manager