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HomeMy WebLinkAboutMinutes 1951-06-13CONDENSED MINUTES OF THE JOINT F’~ETING~OF BOARDS OF DIRECTORS,COUNTY SANITATION DISTRICTS ORANGE COUNTY,CALIFORNIA June 13,1951 Board of Supervisors’Room,Court House Santa Aria,California ROLL CALL DISTRICT NO.1 NO QUORUM ~irec€ors present:C.M.Featherly. Directors absent:Courtney R.Chandler (Chairman)and J.L.McBride DISTRICT NO.2 Directors present:Robert H.Boney (Chairman),Hugh W.Warden, I)on B.Haiber,Willard Smith,Charles E. Stevens,William H.Hirstein,Anton W.Wilson, Wil].is II.Warner,Ralph J.McFadden and Frank J.Schweitzer,Jr. Directors absent:None. D]:STRICT NO.3 Direc~ors present:Hugh W.Warden (Chairman),Charles Newson,Ralph J.McFadden,Willis H.Warner,C.R.Miller and A.C.Earley. Directors absent:Joseph Webber. DISTRICT NO 5 Directors pF’~ent:Braden Finch (Chairman),Ross Greeley and Heinz Kaiser. Directors absent:None. DISTRICT NO.6 Directors present:Heinz Kaiser (Chairman pro tern)and }3raden Finch. Directo~s absent:C.M.Nelson (Chairman). DIST~ICT NO.7 NO QUORUM Directors present:Willard Smith and Heinz Kaiser. Directhrs absent:Vincent L.Humeston (Chairman)and 1.L.McBride. DISTRICT NO.S ~irectors present Emerson B.Milnor (Chairman),Heinz Kaiser and Harold E.Edwards. Directprs ~h~pt;NQfle. ~TRICT_NO~4~ ~Lrp~tq~pre~en~.ç W~]~ie -~.Warner (Chairman),Jack Greer ~i Verpq~~4r~g~nbeck. Directors absent:None. Other~~Ne~~ç~iti M.Laun~r,m~nI~v~t~ye ç)ffic~ N~t H.Neff,Engineer K.J.Harrison,En~ineer J.A.Woolley,Engineer C.Arthur Nisson,Attorney Ora Mae Merritt,Secretary Chairman Finch called the joint meeting of the District I3oardn to order at 5:15 p.m. The roll was called and the Secretary reported a quorum present for all Boards except Districts Nos.1 and 7. A motion was made by Director }Jraden Finch,duly seconded and carried,appointing Director Heinz Kaiser Chairman pro tern of t;he Board of Directors of County Sanitation District No.6. MINUTES OF A motion was made,duly secondec1 and M~TING OF carried,by the Boards of Districts MAY 9,1951 Nos.2,3,5,6,~and 11,aporoving the minutes of the meeting held on May 9,1951,as mailed out. JOINT ADMINISTRATIVE A motion was made,duly seconded and WA~tt~a~hT DEMANDS carried,by the Boards of Districts Nos.2,3,5,6,and 11,approving the Joint Administrative Warrant Register covering: Warrant Demand No.In Favor Of Amount JA—25~Bales Office I~quipment Co.~1.24. 259 Santa Ama Trypewriter Co.15.00 260 Orange County Stamp Co.2.54 261 The Pacific Telephone &Telegraph Co.63.55 262 Ora Mae Merritt 3.4.5 263 City of Santa Ana 90.93 264 E.J.Marks and Adrian Marks 275.00 265 Kleen-Line Corporation 3.b2 ~4.55.3~ ADMI~ISTRATIVE Nelsop M.~aw1er,Ada ini~~tra~ive Officer, OFFICE~R’S R~F0RT reported tha~a check hadbeen rade with the consulting engineers,and that thE fei].owing time schedule has been set up: Modification:Plans to be completed by the consulting engineers by July 15,1951. ~~gineering:30 days for bids on the marine exploration i~ork for the ocean outfall. 60 days for the marine exploration ~ork. 90 days for design of the ocean outfall. Total •~months,bringing the engineering ~chedu1 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 1Jou1dSta~design and specifications for t;he plant and trunk lines could be completed, bringing the time schedule to April 1,1952,at which tini~ the work could be started on the ocean outfall and the plants. ~~ga1 Work The contracts are now a].1 completed by the attorneys and Judge Marks advises these contracts have been approved by Mr,Lindinan of 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. —2— Budgets Estimates on the Joint Adrninistrutive budget 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 operatingfunds,such asengineerin~, lega].,etc.,should submit the estimates of such expendi tures for the fiscal year 1951-52 by June 25~1951 so that the budgets can be prepared,tax rates set up ly 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 bdlance 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 dipcussed,with representatives of these two banks.The representative of th€~Security-First National Bank has a~vised that the data we wi1~have available on overlapping bond indebtedness and the approv~.~the bond attorneys,O’Melveny &Mycrs,and a report from the California Municipal Statistics,Inc. will be sufficient information for them to base their bids upon.He advised the California Municipal Statistics. Inc.will furnish them required.infornatinn on over lapping bond indebtedness and no fee to this firm shuuld 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 Oi’fi.ce in Los An~e1es brought out several new points in a lengthly conference the Administrative Officer had with h~m on Juno 12th.Mr.Goodrich stated that the bond market for the past several months has shown a definite rise in interest rates on this type of bonds. He advocated,in order to get the most favQrable rates, that data be presented to Dun and Bradstreet arid Moody’s for o~tainirig 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 rnsrfrr~ts. The Bank of America has just financed a bond issue for 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 co1lectin~agencies, the fee being 5ç~per coupon for the first 140,000 and a more favorable fee for larger amounts.‘The Bank of America also recommended selling the entire issue at the present time to secure the best rate of interest and depositing the excess money in the bank or prevail ing Treasury A bonds;the bank would pay 1-1/4%in terest 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 to pur chase Series A Treasury bonds which can be cashed in at any tine and would bear interest at the rate of 1.44%for the first six months and increasing rates up to l.~d%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 analysis sh~zing the cities and districts within it and their financial statements on bonds issued. —3— Payment of There will be annual payments of prin Principal and cipal and semiannual payments on interest Interest on bonds on the bonds assumed by the Agreement for Purchase and Sale from the cities of Anaheim and Orange.In order to transfer sufficient funds to make these payments 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 paragreph 10 of the agreement for Purchase and Sale,is now under way.There was a great deal more work on this inventory than had been anticipated, but the ~iork should be completed by next Wednesday.This jn\rentory will also be included in the Joint Construction and Operation Agreement. REPO)~T OF THE Robert H.Boriey,Chairman of the Executivc CH~IitMaN OF THE Committee reported that this Committee had ,~X1~CUTIVE C0J~T4ITTEE met with Messrs.Carollo,Hari.ison and Woolley of the consulting engineering finns on May 31st.The cons~ilting engineers reported: 1.Their studies of future population .~or all Districts show ~he estimated future population considerably lower than the figures in the Bacon report. 2.They estimated per capita sewage flow somewhat higher than shown in the Bacon report. 3.They had worked on seven different modification plans. 4.The plan which seemed the most feasible in every vt~y would also save some 3400,000 to $500,000 on tho overall project.This plan would involve: (a)A 60”line parallel to the present 4d”line, instead of an ~4”line down Bushard Stro~t, as propesed in the Bacon reports.- (b)Use of two plants,which would include: The present plant and an addition ther’to. An additional plant at the ic~or end,with clarifiers and primary treatment.The lower plant would require about JO acres of land,which would provide for the p].ant 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 also allow chioriration at either the upper or lower plants.And that the consu].ting engineers ad vise the report on this modified plan could he completed by June 21st. Mr.Boney reported that at the Executive Committee meeting held on May 31st the unanimous recommendation was made that the Secretary’s salary be increased from $250.01)per month to $300.00 per month. Mr.Boney then called upon Mr.Harrison for further comment upon the engineers’progress on the modification plans. Mr.Harrison stated that they were not in a position to make any definite commitments on the modification plans yet, -4- but so far,had found nothing that would suggest a change from the plan as outlined by Mr.Boney.The Bushard line, as proposed in the Bacon report,is very large;placing a 60”].ine parallel to the 4~”line would account for a great saving.Mr.Harrison stated that they had given considerable thought to future water reclamation which could be taken care of very readily by the additions to the upper plant; the Magnolia and Euclid trunks have been so designed to make possible segregation of salt brine,oil wastes and other chemicals or effluents which would be detrimental to re claimed water and non~salvàblc.wastes could be discharged into the ocean outfall. After a general discussion,a notion was made,duly seconded and carried by the Boards of Directors of County Sanitation Districts Nos.2,3,5, 6 and 11 authorl sing the Administrative Officer or General Manager to instruct the County Auditor by letter to make transfers of funds to County Sanitation District. No.1 Operating Fund from the Operating Funds of County Duni tation Districts Nos.2,3,5,6,7 and 11 sufficient amounts to pay the proportionate s}~’es of Districts Nec.2,3,~,6, 7 arid 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 Februaiy 2~,1951,as authorized by Resolution No.55 and adopted by each of the Boards ci’these Districts. Transfer p.~’funds to be made from the Operating Funds of Districts Nos.2,3 ,5,6 ,7 and 11 to the Operatimp, Fund of County Sanitation District No.1 for payment.fro.,~ that Fund to the City of i~naheim the aiourits of principal and interest as they become due and to be computed in thu following percentages: 2 3 5 6 7 I,II A motion was made,duly seconded and carried by the Boards of Directors of County Sanitation Districts Nos.2,3, 5,6,and 11,authorizing the Administrative Officer or the General Manager to instri,ict the County Auditor by letter to make transfers of funds to County Sanitation District No. 1 Operating Fund from the Operating Funds oP County Sani tation District.s Nos.2,3,5,6,7 and 11 sufficient amoun1..s to pay the proportionate shares of Districts Nos.2,3,5,6, 7 and 11 principal and interest installments as thuy-become due on the City of Orange bonds which were assumed by County San! tation Districts Nos.1,2,3,5,6,7 and 11 under the i~gree ment 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 Districts Nos.2,3,5,6,7 and 11 to the Operating Fund County Sanitation District No.1 for payment from that Fund the City of Orange the allounts of principal and interest they become due and to be computed in the following percent- TRANSFER OF FUNDS FO~P~YM~’NTS ON ORANGE ~ND ANAHEIM BONDS Transfer From Operating Fund Of County Sanitation District No. I,II TI 1? II II II I, %of Principal and/or Interest Installment When Due TI I? I, 25.35% 15.41% 4.51% 11.52% 19.46% 2.99% of of to as ages: —5— Transfer From Operating Fund Of No.2 I,3 ,,5 ti 6 tt 7 H %of Principal and/or Interest Installment When Due 25.35% 15.41% 4.51% 11.52% 19.46% 2.99% A motion was made,duly seconded and carried by the Boards of Directors of County Sanitation Districcs Nos.2,3, 5,6,~and 11 that the salary of Ora Mae Merritt,Secretary of the Joint Administra~ive Organization,Secretary of each of the Boards of Directors of County Sanitation Dist;ricts Nos,1,2, 3,5,6,7,d and 11,arId Secretary of the ~xecutive Committee,be raised from ~25O.OO per month to ~3~)u.Ci0 per month;said salary of ~3OO.OO per month to become effective as of June 1,1951. A motion was made by Director Willis H. Warner,seconded by Director Itaipli J. McFadden and duly carried by Boerd rnepbers present,approving for signature and pay ment District No.2 Operating Fund Warrant Register,covering: Wa r rant Demand No. 2-73 74 75 76 77 7d 79 do E~1 3—52 53 51+ 55 56 57 5~ 59 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.}3oney A.C.Earley C.R.Miller Charles Newson Joseph Webber Hugh W.Warden Ralph J.McFadden Willis H.Warner Hugh W.Warden Amount ~33.60 l7~25 34.50 24.50 17.25 17 .03 32 •93 12.10 32.25 34.2d 4.dO 260./.~ iT~mount $24.E~O 21.~,0 36.75 23 .90 17.25 17.25 12.10 6.(JO County Sanitation District IT H It I,It It ‘I ‘I SECRETARY’S Si~LARY DISfRICT 1’O.2 OPERATING FUND WAFLItAN T RJ.~GI STER DISTRICT No.3 OPEIt~~TING FUND WARRANT REGISTER riot No.3 Operating ~1arrant Demand No A notion was made by Director C.R.Mil1~r, seconded by Director Ralph J.McFadden, and duly carried by Board members present, approving for signature and payment Dist Fund Warrant Register covering: In Favor Of -6- DISTRICT NO.5 OPERATING FUND WARRANT Ri~GISTER of County Sanitation and payment District cov~riflg: A motion was made by Director Ross Greeley,seconded by Director Heinz Kaiser and unanimously carried by the members of the Board of Directors District No.5,approving fcr signature No.5 Operating Fund Warrant Register Want ))emari d No. 5-45 46 47 49 Braden Finch Heinz Kaiser Ross Greeley Braden Finch harry Ashton Amount $17.47 5.02 35.40 6 •60 75.00 A motion was made by Director Braden Finch,seconded by Director H~inz Kaiser and duly carried by roeinb:rs present of the Board of Direciors of. County Sanitation District No.6,approving for signeture and payment District No.6 Operating Fund Warrant R0gister,cover ing: Warrant Demand _~~Q~L~_In Favor of i:lOUIit 4I~17 • 33.60 2.40 1.65 75.00 31.25 ~167.21 A motion was made by Director Harold E. Edwards,seconded by Director Heinz Kaiser and unanimously carried by members of the Board of Directors of County Sani tation District No..~,approving for signature and payment District No.d Operating Fund Warrant Register covering: warrant Den~a rid No.In Favor Of Heinz Kaiser Emerson B.Mimer Harold E.Edwards JoirLt .~dministrative Fund of County Sanitation Districts Nos.1,2,3,5,6,7 and 11 An ow t $5.03 30.55 39.L~.5 i0O.v~ ~T~3~ A motion was made by Director Jack Greer, seconded by Director Vernon ~.Langenbe~~k and unanimousl.y carried by members of thr Board of Directors of County SaniLation 1)istrict No.11,approving District No.11 Operating Fund Warrant I~egister for signature and payment,dovering: In Favor Of DISTRICT NO.6 OPERATING FUND WARRANT REGI STER 6-49 50 51 52 53 54 55 Braden Finch Heinz Kaiser C.II.Nelson C.M.Nelson Heinz Kaiser Harry Ashton Francis H.Bulot DISTRICT NO.d OFER~iTING FUND WARRANT REGISTER 0—32 33 34 35 DISTRICT t~O.11 OPER~&TING FUND .JAIfl~.f~NT REGISTER -7— Warrant Demand No.In Favor Of Amount 11—31 Willis H.Warner ~12,10 32 -Vernon E.langonbeck 36,30 33 Jack Greer 36.30 34 Willis H.Warner 6~O ~~Lo~ The Chairman declared the joint meeting of the district boards adjourned at 9:35 p.m. O~z ~/2L~V?~ Secrot-iry ( -