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 needed to maintain and operate the District's sewer system, capital improvements, debt service requirements, and compliance with with State and Federal Waste Discharge Requirements.  The Board approved rates are applied to the sewer assessment to be filed with the County.

Typically, sewer user fees are included on the property owner or tenant's water bill since most of the Garden Grove Sanitary District receives water services from the City of Garden Grove.  In the areas of the District that do not receive a water bill from the City of Garden Grove, it is necessary to have sewer user fees be collected on property tax rolls.  

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 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 23, 2020, 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, which lists the proposed charges that will be placed on the property tax roll.

This action will provide for the collection of an estimated $264,000 in sewer service charges from properties located outside of the City of Garden Grove's city limits that receives sewer services from the Garden Grove Sanitary District.

It is recommended that the Sanitary District Board:

•  Conduct a public hearing for the report detailing charges 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 charges 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 service charges on the property tax bills.