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HomeMy WebLinkAboutDistrict 02 Minutes 1951-06-132.1 MINUTES OF REGULAR MEETING BOARD OF DIRECTORS COUNTY SANITATION DISTRICT NO.2 June 13,1951 at ~:OO p.m. Board of Supervisors’Room Court House Santa Ana,California The Board of Directors of County Sanitation District No.2 met in regular session. The joint meeting of the district boards was called to order by Chairman Braden Finch. Directors present:Robert H.Boney (Chairman),Hugh W.Warden, Don B.Haiber,Frank J.Schweitzer,Jr., Ralph J.McFadden,Willard Smith,Charles E.Stevens,Willis H.Warner,William H. Hirstein and Anton W.Wilson, Directors absent:None. OtF~ers present:Nelson M.Launer,Administrative Officer Nat H.Neff,~ngineer K.J.Harrison,Engineer J.A.Woolley,i~ngineer C.Arthur Nissan,Jr.,Attorney Ora Mae Merritt,Secretary MINUTES OF MEETING A rnoti~on was made,duly seconded and OF MAY 9,1951 carried,approving the minutes of the meeting held on May 9,1951,as mailed out~ —1.~ 2G2 JOINT ADMINISTRATIVE A motion was made,duly seconded WARRANT DEMANDS and carried,approving the Joint Administrative Warrant Register for signature and payment of the following: Warrant Demand No JA—25~ 259 260 261 262 263 264 265 Total Total Amount 1.24 15.00 2.54 63.55 3 .45 90.93 275.00 3.62 q~) _____ 90 days for design of the ocean outfall 6 Months -bringing the engineering schedule to the first of tho coming year. 90 days for making up contracts and calling for bids. 9 Months Date Construction During the above nine-month period,the Could Start design and specifications for the plant and trunk lines could be completed, bringing the time schedule to April 1,1952,at which time. the work on the ocean outfall and the plants could be started. Legal Work The contr’~cts are now a~l co~npleted ~y ~e a~torr~eys and Ju4gp Mar~~dvises these con~r~ç~hav~been approved by Mr.Lindmàn of In Favor Of Bales Office Equipment Co. Santa Ana Typewriter Co. Orange County Stamp Co. The Pacific Telephone &Telegraph Co. Ora Mae Merritt City of Santa Ana E.J.Marks and Adrian Marks Kleen-Line Corporation ADMIN I STR~TIVE OFFICER’S REPORT following time schedule Modification: Engineering Nelson M.Launer,Administrative Officer~ reported that a check had been made with the consulting engineers,and that the has been set up: Plans to be completed by the consulting engineers by July 15,1951. 30 days for bids on the marine exploration for the ocean outfall 60 days for the marine exploration work —2- 2~3 the law firm O’Melveny &Myers,bond attorneys. However,the Joint Construction and Operation Agreement will perhaps have major changes due to the modification plans now being prepared by the consulting engineers.As the other contracts are to be signed at the same time the Joint Construction and Operation Agreement is executed,these contracts should all be held up until it is known what revisions will have to be made in the Joint Construction and Operation Agreement. Budgets Estimates on the Joint Administrative budgets are being prepared.The County Auditor desires to have all budgets by July 10th for checking.Each Director will be furnished a copy of the budget for the district or districts he represents and a copy of the Joint Administrative budget.However, before these budgets can be prepared,it is necessary that the District Boards contemplating special expendi tures from their operating funds,such as engineering, legal,etc.,should submit the estimates of such expend! tures for the fiscal year 1951-1952 by June 25,1951,so that the budgets can be prepared,tax rates set up by July 10th,and final budgets presented to the 1)istrict Boards for approval at the regular meeting to he held on July 25,1951. Preparation For Work has been in progress for the past Sale of Bonds 60 days to accumulate data on the over lapping bond indebtedness.The over lapping bond indebtedness for the County has now been completed by the County Auditor’s Office and the balance of the data will be compiled in the Joint Administrative Office. The financial data required by the bond departments of the Bank of America and the Security-First National Bank have been discussed with representatives of these two banks. The representative of the Security-First National Bank has advised that the data we will have available on overlapping bond indebtedness and the approval of the bond attorneys, O’Melveny &Myers,and a report from the California Municipal Statistics,Inc.,will be sufficient information for them to base their bids upon.He advised that the California Municipal Statistics,Inc.,will furnish them the required information on overlapping bond indebtedness and no fee to this firm should be paid by the County Sanitation Districts.We have written to the California Municipal Statistics people offering them our cooperation and requesting that they advise what information they will require from us. Mr.Goodrich of the Bank of i~merica’s Head Office in Los Angeles brought out several new points in a lengthly conference the Administrative Officer had with him on June 12th. Mr.Goodrich stated that the bonU market for the past several months ~s~ow~~ç1e~’ip~e rise ir~interest rate~pri this type of bonds.FTc 4dvôcated,in order to get the mést favorable -‘3— 2~4 rates,that data be presented to Dun and Bradstreet and to Moody’s for obtaininj~the highest rating on the bonds,as they are national organizations and that bonds of this type receive more favorable rates in the New York bond markets. The Bank of America has financed a bond issue for the City of San Diego in which they have five agencies listed for collection.There are five such agencies in New York and two in California who act as collecting agencies,the foe being 5 per coupon for the first ~l0,O0O and a more favorable fee for larger amounts.The Bank of America also recommends selling the entire issue at the present time to sec~ire the best rates of interest and then depositing the excess money in the bank or buying prevailing Treasury A bonds;the bank would pay 1-1/4%interest but would require reciprocal amounts of deposit from Orange County.As this would be practically impossible for Orange County,Mr.Goodrich suggested that the best method,therefore,seems to be purchasing Series A Treasury bonds which can be cashed in at any time and would bear interest at the rate of l.44~’o for the first six months and increasing rates up to i.~%at the end of three years. Mr.Goodrich stated that the Bank of America’srequirement of financial data is relative simple:a map of each district and an anlysis showing the dities and districts within it and thei. financial statements on bond issues. There will be annual payments of prin ________________ cipal and semiannual payments on interest ______________ on the bonds assumed by the Agreement for ___ Purchase and Sale from the citiesoj’ __________ Anaheim and Orange.In order to trans ________ fer sufficient funds to make these pay ____________ ments on time,the County Auditor recom mends that the Administrative Officer be delegated authority to request transfer of funds from the Operating Funds of Districts Nos.2,3,5,6,7,and 11 to the Operating Fund of District NO.~1 for these payments. At the request of Chairman Finch,the Secretary read the motions recommended by Mr.Launer. Inventory The inventory of personal property as set forth in paragraph 10 of the Agree ment for Purchase arid Sale,is now under way.There was a great deal more work on .this inventory than had been anticipated,but the work should be completed by next Wednesday.This inventory will also be included in the Joint Construction and Operation Agreement. Princip~1 and Interest on Bonds assumed from the Cities of Anaheim and ~a ________ -4- 2~5 REPORT OF THE Robert H,Boney,Chairman of the CHAIRMAN OF THE Executive Committee reported that this EXECUTIVE COPJ~ITTEE Committee had met with Messrs. Carollo,Harrison and Woolley of the consulting engineering firms on May 31st.The consulting engineers reported: 1.Their studies of future population for all Districts show the estimated future population considerably lower throughout the Countythan the estimates in the Bacon reports. 2.They estimate per capita sewage flow somewhat higher than the Bacon estimates. 3.They had worked on seven different modification plans. 4.The plan which seemed the most feasible in every way would als9 save some ~40O,00O to ~5OO,O0O on the overall project.This plan would involve: (a)A 60”line parallel to the present 4~line, instead of an ~4”line down Bushard Street, as proposed in the Bacon reports. - (b)~Jse of two plants,which would include: The present plant and an addition thereto. ~n additional plant at the lower end,with clarifiers and primary treatment.The lower plant would require about 30 acres of land,which would provide for the plant and concealing landscaping. That this plan would fully use the present plant and also provide for future water reclamation if that should become desirable.It would allow chlorination at either the upper or lower plants.And,that the consulting engineers advise this report on the modified plan will he completed by June 21st. Mr.Boney reported that a unanimous recommendation was made by members of the Executive Committee at the meeting held on May 31st that the Secretary’s salary be increased from ~250.OO per month to ~3OO.O0 per month. Mr.Boney then called upon Mr.Harrison for futher comment upon the engineerst progress report on the modification plans. —5— Mr.Harrison stated that they were not in a position to make any definite commitments on the modification plans at this time,‘out so far,had found nothing that would suggest a change from the plan as outlined by Mr.Boney. The Bushard Street line,as proposed in the Bacon reports, is very large;placing a 60”line parallel to the 4~line would account for a great saving.Mr.Harrison stated that they had given considerable thought to future water reclama tion which could be taken care of very reddily by the addi tions to the upper plant,the Magnolia and Euclid trunks being so designed to make possible segregation of salt brine, oil wastes and other chemicals or effluents which would be detrimental to reclaimed water,and non-salvable wastes could be discharged into the ocean outfall. A motion was made by Director ~ McFadden , seconded by Director Wi11~d Smith and duly carried by members of the Board of Directors of County Sanitation District No.2 authorizing the Administrative Officer or the General Manager to instruct the County Auditor by lett;er to make transfers of funds to County Sanitation District No.1 Operating Fund from the Operating Funds of County Sanitation Districts Nos.2,3, 5,6,7 and 11 in sufficient amounts to pay the proportionate shares of Districts Nos.2,3,5,6,7 and 11 of principal and interest installments as they become due on the City of Anaheim bonds which were assumed by County Sanitation Districts Nos. 1,2,3,5,6,7 and 11 under the Agreement for Purchase and Sale,executed february 2~,1951,as authorized by Resolution No.55 which was adopted by each of the Boards of these Districts. Transfer of funds to be made from the Operating Funds of Districts Nos.2,3,5,6,7 and 11 to the Oper’ating Fund of County Sanitation District No.1 for payment from that Fund to the City of Anaheim the amounts of principal and interest as they become due and to be computed in the following percentages: County Sanitation District No.2 ii IV 3 IT I,5 ci ii 6 7 11 A motion was made by Director Willard Smith seconded by Director Ralph J.McFadden , and duly carried by members of the Board of Directors of County Sanitation Dis trict No,2 ,~u~horizing ~he Administrat4ye Officer or the Gener~1 Mahag~to instruct the County Auditpr by 1e~ter to 268 TRANSFER OF FUNDS FOR PAYMJ~NTS ON THE CITIES OF ORANGE JiND ANAHEIM BONDS Transfer From Operating Fund Of %of Principal and/or Interest Installment When Due ‘I 25.35% 15.41% 19.46% 2.99% -6- make transfers of funds to County Sanitation District No.1 Operating Fund from the Operating Fui~ds of County Sanitation Districts Nose 2,3,5,6,7 and 11 in sufficient amountsto pay the proportionate shares of Districts.Nos.2,•,5,6,7 and 11 principal and interest installments a.s they become due on the City of Orange bonds which were assumed by County Sanitation Districts Nos.1,2,3,5,6,7 and 11 under the Agreement for Purchase and Sale,executed February 2~,,1951, as authorized by Resolution No.55 and adopted by each of the Boards of these Districts. ‘r~anscer of funds to be made from the Operating Funds of Districts Nos.2,3,5,6,7 and ii to the Operating Fund of County Sanitation District No.I for payment from that Fund to the City of Orange the amounts of principal and interest as they become due and to be computed in the following percentages: County Sanitation District ~2 U U U 3 U U U 5 ~6 I?U U 7 U U H U 11 A motion was made by Director Ralph J. MeFad~en , seconded by Director~ WiiU~in H.Hirstei~and duly carr4,ed by members of the Board of Directors of County Sanitation Dist rict No.2 , that the salary of Ora Mae Merritt,Secretary of the Joint Administrative Organization,Secretary of each of the Boards of ‘Directors of’County Sanitation Districts Nos. 1,2,3,5,6,7,£~and 11 and Secretary of the Executive Committee,be raised from ~25O.OO per month to ~3OO.OO per month; said salary of ~3OO.OO per month to become effective as of June 1,195L 267 rllrayjsfer From Ope rati ng Fund Of %of Principal and/or Interest Installment When Due SECRETARY’S SALARY ,-~c •~))/0 15.41% 4.51’,~ l1.52Y~ 19.46% 2.997a -7- A motion was made by Director Willis H. Warner,seconded by Director Ralph J. McFadden and duly carried by members of the Board of Directors of County Sani tation District No.2,approving for signature and payment District No.2 Operating Fund Warrant Register,covering: Warrant Demand No. 2-73 74 75 76 77 79 In Favor Of Robert H.Boney Hugh W.Warden Don B.Haiber Frank J.Schweitzer,Jr. Ralph J.McFadden Willard Smith Charles E.Stevens Willis H.Warner William Hirstein Anton W,Wilson Robert H.Boney $33,60 17.25 34.50 24.50 17.25 17.03 32.93 12.10 32.25 34.2 ~ 4.00 $26O~T~ ADJOURNI’~1EN T __________ Upon a motion made by Director Ralph J.McFadden,seconded by Director Hugh W.Warden and duly carried,the Chairman declared the meeting of the Board of Directors of County Sanitation I)istrict No.2 adjourned at 9:35 p.m. ~oard of D~or~~ County Sanitation District ~o.2 Orange County,California ~?~Z Secretary,i3oard of directors County Sanitation District No.2 Orange County,California DISTRICT NO.2 OPERATiNG FUND WARRANT REGISTER 268 Amount