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HomeMy WebLinkAboutDistrict 06 Minutes 1951-06-13248 MINUTES OF REGULAR MEETING BOARD OF DIRECTORS COUNTY SANITATION DISTRICT NC.6 ORANGE COUNTY,CALIFORNIA June 13,1951 at ~:OO pm. Board of Supervisors’Room Court House Santa Ana,California The Board of Directors of County Sanitation District No.6 met in regular session. The joint meeting of the district boards was called to order by Chairman Finch at ~:15 p.m. Directors present:Heinz Kaiser (Chairman pro torn)and Braden Finch. Directors absent:C.M.Nelson (Chairman). Others present:Nelson M.Launer,Administrative Officer Nat H.Neff,~ngineer K.J,Harrison,L~ngineer J.A.Woolley,Engineer C.Arthur Nisson,Jr.,Attorney Ora Mae Merritt,Secretary CHAIRMAN PRO TEM A motion was made by Director Braden Finch,duly seconded and carried,appointin~ Director Heinz Kaiser Chairman pro tern of the Board of Directors of County Sanitation District No.6. MINUTES OF MEETING A motion was made,duly seconded and OF MAY 9,1951 carried,approving the minutes of the meeting held or May 9,1951,as mailed out. JOINT ADMINISTRATIVE A motion was made,duly seconded WARRANT DEJ”IANDS 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 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 41 1.24 15.90 • 63.55 3.45 90.93 275.00 3.62 ~t 45s.:~ ADMINI STR~TIVE OFFICER’S REPORT following time schedule Modification: Engineering Total Nelson M.Luuner,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 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~ Total 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~ct~are now ~.ll completed by ~e ~tto~peys and Jüc~gp M~riç~p~dvises these cqntr~ct~~been approved by Mr.~Lindrrian of Amount —2— o1z 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 tii~ne 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 be 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 overl&ipping 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 bonU market for the past several months ~~iow~a ~.e~p4te r4,se in interest ~te~p~i this type of bonds.He 4dvQca~ed,ir~order.to get the most favorabl.e —3— 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 Sari 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 ~lO,OOO 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 monoy 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 1.44%for the first six months and increasing rates up to l.~%at the end of three years. Mr.Goodrich stated thdt 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 they. 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 cities of _________ 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 and Sale,is now under way.There was,a great deal more work on this inventory than had been antici~ted,but the work should be completed by next Wednesday.This inventory will also he included in the Joint Construction and Operation Agreement. ~y~,_of Principal and Interest_on_____ Bonds assumed from_the Cities of’Anaheim and Orange ______ -4-- 1)E~ REPORT OF THE Robert Fl,Boney,Chairman of the CHAIRMi•~N OF THE Executive Committee reported that this EXECUTIVE CO~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 modifidation 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 6O~’line parallel to the present 4~line, instead of an ~4”line down Bushard Street, as pronosed 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 ur~animous recommendation was made by members of the Executive Committee at the meeting held on May 31st that the Secretaryts salary be increased from ~250.00 per month to $300.00 per month. Mr.Boney then called upon Mr.Harrison for futher comment upon the engineerst progress report on the modification plans. —5— 253 Mr.Harrison stated that they were not in a position to make any definite commi.tments on the modification plans at this time,but 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 reclarna tion which could be taken care of very readily 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 he discharged into the ocean outfall. A motion was made by Director Braden Finch______, seconded by Director Hpi~7.K~r~ - and duly carried by members of the Board of Directors of County Sanitation District No.6 authorizing the Administrative Officer or the General Manager to instruct the Counìty 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 ii in sufficient amounts to pay the proportionate shares of Districts Nec.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 ii 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: A motion was made by Director Braden Finch seconded by Director Heinz Kaiser , and duly carried by members of the Board of Directors of County Sanitation Dis trict No.6 ,au~ho~i~ing the Adm~nistrat4ve O.~ficer or the General ~Ia~ag~to instruct the County Auditpr by letter to TRANSFEI?.OF FUNDS FOR PAY1h~NTS ON THE CITIES OF ORANGE AND ANAHEIM BONDS Transfer From Operating Fund Of %of Principal and/or. Interest Installment When Due County Sanitation District No.2 I?3 I?U 5 SI I,6 7?7 7?11 25.35% 15.41% 4.51% 11.52% 19.46% 2.99% -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 ii 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 Agroement 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 Sanitation District No.2 U U U U 3 U U U U 5 ~,6 U TI 1?1?7 U I?I?~ A motion was made by Director Braden Finch , seconded by Director Heinz Kaiser , and duly carried by members of the Board of’Directors of County Sanitation Dist rict No.6 , that the salary of Ora Mae Merritt,Secretary of the Joir~t 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 ~)OO.OO per month; said.salary of ~~3OO.OO per month to become effective as of June 1,1951. 25i~ Transfer From Operating Fund Of %of Principal and/or Interest Installment When Due SECRETARY’S SALARY 2~-) )~.)/0 15.41% 4.51% i1.527~ 19.46% 2.99% -7- 255 A motion was made by Director Braden Finch,seconded by Director Heinz Kaiser and duly carried by members of the Board of Directors of County ~Jani tation District No.6,approving for signature and payment District No.6 Operating Fund Warr~nt Register,covering: A DJOURN}~’IENT Amount ‘~ 33.60 2.40 1.65 75.00 31.25 $167.21 Upon a motion made by Director Braden Finch,seconded by Director Heinz Kaiser and duly carried by members of the Board of Directors of County Sanitation District ~Jo.6,the Chairman declared the meeting adjourned at 9:35 p.m. ATTEST: Secretary,~oard of ~ectors County Sanitation District No.6 Orange County,California Chairman pro tern,Board of Director County Sanitation District No.6 Orange County,California DISTRICT NO.6 OPERATING FUND WARRANT REGISTER Warrant Demand No,In Favor Of 6-l~9 50 51 52 53 54 .55 Braden Finch Heinz Kaiser C.NI.Nelson C.NI,Nelson Heinz Kaiser Harry Ashton Francis H.Bulot —