HomeMy WebLinkAboutDistrict 05 Minutes 1951-06-1324~
MINUTES OF REGULAR MEETING
BOARD OF DIRECTORS
COUNTYSANITATI~)N DISTRICT NO.d 5
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.5 met
in regular session.
The joint meeting of the district bourds was called to order by
Chairman Braden Finch.
Directors present:Braden Finch (Chairman)
Ross Greeley
Heinz Kaiser
Directors absent:None
Others present:Nelson M.Launer,Administrative Officer
Nat H.Neff,Engineer
K.J.Harrison,Engineer
J.A.Woolley,Engineer
•C.Arthur Nisson,Jr.,Attorney
Ora Mae Merritt,~ecretary
MINUTES OF MEETING HELD A motion was made,duly seconded and
ON JUNE 13,1951 carried,approving the minutes of
the meeting held on June 13,1951,
as mailed out.
A motion was made,duly seconded
and carried,approving the Joint
Administrative Warrant Register
for signature and payment of the following:
Warrant
Deri~and
No.
JA—25~
259
261
262
263
264
265
In Favor Of
Bales Office Equipment Co.
Santa Ana Typewriter Co.
Orange County Stamp Co.
The Pacific Telephone &Te1egr~iph Co.
Ora Mae Merritt
City of Santa Ana
E.J.Marks and Adrian Marks
Kleen-Line Corporation
~1.24
15.00
63.55
3.45
90.93
275.00
3.62
~L55,~
ADMINISTRATIVE Nelson M.Launer.,Administrative Officer~
OFFICER’S i~EPORT reported that a check had been made with
the consulting engineero,and that the
following time schedule has been set up:
Modification:
Engineering
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
Total
Total
90 days for design of the ocean outfall
6 Months -bringing the engineering
schedule to the first of
the coming year.
90 days for making up contracts and
—
calling for bids~
9 Months
During the above nine-month period,the
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
1~
Th~contracts are now ~.fl.cQ~np1eted by
~he aztorneys and Jud~q M~r~s ~dvises
these cor~r~cts have been approved by Mr.Lindman of
JOINT ADMINISTRATIVE
WARRANT DEMANDS
245
Amount
Date Construction
Could Start
—2—
the law firm O’Melveny &Myers,bond attorneys.
1~owever,the Joint Construction and Operation
Ag±~eement 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 expendi
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 District
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 th~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’Mélveny &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 America’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 bond market for the p~t several
months h~showi~~çjefinite rise in interest ~te~~p this
type of bonds.H~~dvoc~tea,in order to get the most favorable
—3-.
247
rates,that data be presented to Dun and Bradstreet and to
Moody’s for obtaining 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 fee
being 5q~per coupon for the first $10,000 and a more favorable
fee for larger amounts.The Bank of America also recommends
selling the entire issue at the present time to secure 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 he cashed in at any time and would bear interest
at the rate of 1.44%for the first six months and increasing rates
up to i.8~%at the end of three years.
Mr.Goodrich stated that the Bank of America’s requirement
of financial data is relative simple:a map of each district
and an anlysis showing the dities and districts within it and theL
financial stat;ements 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 cities of
_________
Anaheim and Orange.In order to tr~ns
_____________
fer sufficient funds to make these pay
____________
ments on time,the County Auditor recom
mends that the Administrative Officer
he 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 i~’ead the
motions recommended by Mr.Launer.
Inventory The inventory of personal property as
set forth in paragraph 10 of the Agree
ment for Purchase and 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.
of
Principal and
Interest on____
Bonds assumed
from_the Cities
of~Anaheim and
Orange
________
-‘4.-
248
REPORT OF THE Robert H,Boney,Chairman of the
CHAIRMi~N OF THE Executive Committee reported that this
EXECUTIVE COV~~iITTEE 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 also save some ~4OO,OOO to $500,000 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)Use of two plants,which would include:
The present plant and an addition thereto.
An 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
be 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 ~‘250.0O per month to $300.00 per
month.
Mr.Boney then called upon Mr.Harrison for futher
comment upon the engineers’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,but so far,had found nothing that would
sugpest 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 roclama
tion which could be taken care of very readily by the addi
tions to the upper plant,the Magnolia arid 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 waters and non-salvable wastes could
be discharged into the ocean outfall.
A motion was made by Director ROSS
Greeley —
seconded by Director
Heinz Kaiser and duly carried
by members of the Board of Directors of
County Sanitation District No.5
authorizing the Administrative Officer or the General Manager
to insti’uct the County Auditor by letter 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 F’ebruary 2~,1951,as author..~zed 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 Operating 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
3
TV Vt 5
6
7
H
A motion was made by Director Ross Greeley
seconded by Director Heinz Kaiser
,
and duly carr:Led
by members of the Board of Directors of County Sanitation Dis
trict No?5
,au~hori~ing the Administrat~~~O~’f~.cer or the
Genera~.Mañ~g~to ~ns~ruct the County Auditor by 1~tter to
249
TRANSFER OF FUNDS
FOR PAYMJ~NTS ON
THE CITIES OF
ORANGE ~ND ANAHEIM
BONDS
Transfer From
Operating Fund
Of
%of Principal and/or
Interest Installment
When Due
‘I
25.35%
15.41%
4.51%
11.52%
19.46%
-~
.~:‘~/o
-6-
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 amountsto
pay the proportionate shares of Districts Nos.2,3,5,6,7
and 11 principal and interest installments as 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.
Transfer of funds to be made from the Operating Funds of
Districts Nos.2,3,5,6,7 and 11 to the Operating Fund.of
County Sanitation District No.1 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 Sanit~.tion District No.2
i~3
II 11 5
,~6
1?1?1?7
~11
A motion was made by i)irector Roas
Gi~ee1ey ,
seconded by Director
Heinz Kaiser
,
and duly carried
by members of the Board of Directors of County Sanitation Dist.
rict No.5
—
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
1,1951.
250
Transfer From
Operating Fund
Of
%of Principal and/or
Interest Installment
When Due
SECRETARY’~:)
SALAD.Y
25.35%
15.41%
4.51%
11.52%
19.46%
2.99%
-7-
A motion was made by Director i~.o~s
Greeley,seconded by Director Fleinz
Kaiser and unanimously carried by
the members of the Board of Directors of County Sanitation
District No.5,approving for signature and payment District
No.5 Operating Fund Warrant Register,covering:
Warrant
Demand
No.
5-45
46
1~7
48
49
Amount
17.47
5.82
35 .40
6
•60
75.00
~T7o.29
A DJ0tJRNMP.~NT Upon a motion,made by Director Ross
Greeley,seconded by Director Heinz
Kaiser,the Chairman declared the meeting of the Board of
Directors of County Sanitation District No.5 adjourned at
9:35 p.m.
ATTEST:
S~cretary,Board of D~’rectórs
County Sanitation District No.5
Orange County,California
C airman,Board of Directors
County Sanitation District No.5
Orange County,California
DISTRICT NO.5
OPERATING FUND
251
In Favor Of
Braden Finch
Heinz Kaiser
Ross Greeley
Braden Finch
Harry Ashton
-8-.