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~
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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
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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
________
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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%
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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