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HomeMy WebLinkAboutMinutes 1982-03-24COUNTY SANITATION DISTRICT NO.3 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING March 24,1982 —6:00 p.m 10844 Ellis Avenue Fountain Valley,California Pursuant to adjournment of the regular meeting held March 10,1982,the Board of Directors of County Sanitation District No.3 of Orange County,California,met in an adjourned regular meeting at the above hour and date in the District’s administrative offices. The Chairman called the meeting to secretary reported a quorum present. DIRECTORS PRESENT: DIRECTORS ABSENT: STAFF MEMBERS PRESENT: OTHERS PRESENT: Receive and file letter from City of Brea,re appointment of Director for March 24,1982 Board Meeting the March 24,1982 adjourned regular received and ordered filed. order at 6:00 p.m.The roll was called and the Anthony van Dyke,Chairman,Marvin Adler, Norman Culver,Bruce Finlayson,Ruth Finley, Donald Fox,Frank Laszlo,Robert Luxembourger, Gerald Mullen,Lester Reese,Don Roth,Charles Sylvia,Burton Ward,Duane Winters Lawrence Romagnino,Harriett Wieder Fred A.Harper,General Manager,J.Wayne Sylvester,Secretary,Ray E.Lewis Thomas L.Woodruff,General Counsel,Joint Chairman Don Holt,Director Bob Perry,Don Martinson,Mike Swan Moved,seconded and duly carried: That the letter dated March 22,1982 from the City of Brea,appointing Councilman Donald L. Fox as the Director representing the City at meeting of the District,be,and is hereby, Declaring intent to repurchase Chairman van Dyke introduced Don Martinson of 4 MGD capacity in lower Miller Lowry and Associates,the consulting firm Holder Trunk Sewer from District engaged by the Board to update and consolidate No.11,subject to certain the Master Plan of Trunk Sewers along with conditions those of Districts 2 and 11.Mr.Martinson and his associate,Mike Swan,then reviewed the status of the work.Although the study is not complete,it appears from preliminary data that changing land use patterns in the cities within the District reflect increased densities that will require additional collection system capacity. In order to determine overall system requirements,the inter—district capacities of Districts 3 and 11 in the lower reaches of their respective trunk sewer facilities must be addressed. I— District 3 3/24/82 Ray Lewis,Chief Engineer,then reviewed the history of the inter—district capacity agreements between Districts No.3 and 11 to accommodate transportation of flows originating in one District through the facilities of the other to minimize construction and operating costs.In 1961,District No.11 purchased 4 MGD capacity in the District No.3 Miller—Holder Trunk Sewer from Hamilton Avenue to Treatment Plant No.2 at a cost of $155,970.In 1966 District No.3 purchased 4 MGD equity in the District No.11 Newland—Delaware Trunk Sewer,Newland Street Pumping Station and the Hamilton Avenue Force Main at a cost of $190,766.Because of recent completion of the first two reaches of the District No.11 backbone Coast Highway Trunk system,it no longer requires use of the lower Miller—Holder.District No.11 has received a favorable bid for the third reach of Coast Highway,however,presently has insufficient funding available to award the job.Mr.Lewis,noted that staff is presently assisting the consulting engineer in analyzing the existing system to determine the optimum operating mode to maximize utilization of existing capacity. A determination by the District No.3 Board concerning the possible repurchase from District No.11 of the 4 MGD lower Miller—Holder capacity,although not immediately needed,would aid the consulting engineers in completing their report and recommendations regarding future system requirements of each District and also provide the balance of funding needed by District No.11 to award the next reach of the Coast Highway Trunk. After review by the Chief Engineer of the original purchase price,the present worth and estimated replacement cost of the lower Miller—Holder equity,the Board entered into a lengthy debate concerning the possible repurchase of said capacity from District No.11.Considerable discussion centered around the appropriate method for establishing a facility valuation for such transactions.The staff also reviewed the District’s current financial status. It was then moved and seconded: That the District offer to repurchase the 4 MGD capacity in the lower Miller—Holder Trunk Sewer from District No.11 for the present worth of $770,361.47,based on the Engineering News Record (ENR)Index,as set forth on the supplemental staff report dated March 24,1982. During the discussion that followed,it was suggested that inasmuch as the need for the capacity was future rather than immediate,consideration of the repurchase should be deferred until the Master Plan update was completed.Also suggested was the formation of a committee of Directors to meet with District No.11 Board members to negotiate the capacity exchange. The motion was then withdrawn. Following additional consideration of facilities valuation methods and the possible precedent that the proposed action might set,it was then moved and seconded: That the Board of Directors hereby finds that $750,000 is the fair and equitable value of District No.il’s 4 MGD capacity in the Lower Miller—Holder Trunk Sewer, and, FURTHER MOVED:That the Board of Directors hereby declares its intent to offer to repurchase said capacity from District No.11 for the amount of $750,000. —2— I p — District 3 3/24/82 After further discussion concerning the propriety of repurchasing the lower Miller—Holder Trunk Sewer capacity before the Master Plan update is completed,it was moved and seconded to amend the motion to include the condition that the offer to repurchase said capacity be subject to: a)Provision in the agreement for purchase and sale that the repurchase amount shall not be due until District No.11 has expended appropriated funds and connection fees to be advanced by others for the Construction of the Coast Highway Trunk,Reach 3;and, b)Adoption of a policy by the Boards of Directors of District Nos.1,2,3,5, 6,7 and 11 agreeing that future inter—district transactions for the purchase and sale of capacities in collection system facilities (sewer and pump stations)shall be valued at the booked cost of said capacity escalated based on the Engineering News Record Construction Cost Index (ENR =100)to the agreed transaction date. The amended motion was passed by roll call vote. Adjournment That this meeting of the Board of Directors of County Sanitation District No.3 be adjourned.The Chairman then declared the meeting to adjourned at 7:25 p.m.,March 24,1982. Chairman of the Board of Directors County Sanitation District No.3 of Orange County,California Secretary of the Board of Directors County Sanitation District No.3 of Orange County,California —3—