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.
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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.
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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
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