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HomeMy WebLinkAboutMinutes 1986-06-18 BCOUNTY SANITATION DISTRICT NO.3 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING June 18,1986 —8:00 P.M. 10844 Ellis Avenue Fountain Valley,California Pursuant to the adjournment of the regular meeting of June 11,1986,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 Districts’Administrative Offices. The Chairman called the meeting to order at 8:00 p.m.The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT:Richard Partin,Chairman,Frank Clift, Norman Culver,Don Griffin,James Neal, Carrey Nelson,Chris Norby,Richard Polis, Sal Sapien,Charles Sylvia,Dorothy Wedel, Dewey Wiles DIRECTORS ABSENT:Ruth Bailey,Dan Griset,Don Roth, Roger Stanton STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager, Thomas M.Dawes,William H.Butler, Rita J.Brown,Gary Streed OTHERS PRESENT:Thomas L.Woodruff,General Counsel, Director Peer Swan,Lora Stovall,Ed Long,Alan Watts ************* Report,discussion and activities Chairman Partin reported that the purpose re long—term debt financing for of this adjourned meeting was to give funding capital construction further consideration to the alternative projects of partially funding the District’s long—term capital construction program needs by issuance of tax—exempt certificates of participation,as discussed at the regular meeting of the Board on June 11. The Director of Finance then reviewed the five and ten—year fiscal projections of the District based upon two sets of assumptions for the Joint Works Master Plan sewerage facilities construction program requirements of the District,and the supplemental financial information which had been provided to the Directors.He also reviewed the alternative financing methods for funding District operations• as well as the capital expansion program,including ad valorem taxes,user and connection fees,federal and state construction grants and long—term debt financing,the anticipated time frame in which alternative funding sources would be required to be considered by the Board and the legal and procedural requirements for implementing the various financing alternatives. Ms.Lora Stovall of Bartle Wells,Districts’financial consultant,then reviewed financial projections prepared by her firm reflecting the District’s fiscal position with and without issuance of long—term debt securities and the impact on the District’s position by issuing debt securities. 06/18/86 In response to a question from the Board,staff reviewed the sewerage facilities projects proposed to be partially financed by issuance of certificates of participation pursuant to the approved Joint Works Master Plan and the existing provisions of federal law,and also commented on the comparative financial position of District 3 relative to other Sanitation Districts. The Board then entered into a lengthy discussion of all the alternative means of funding both the District’s short—term and long—term operating and capital requirements including ad valorem taxes,connection and user fees,grants,use of current reserves and debt financing,and the Board’s historical fiscal policies. With respect to fees,the Board also discussed the legal and procedural rquirements and limitations of the various alternatives and the potential fee amounts that would be necessary to fund the needs by this alternative. The Board also discussed at considerable length the relative merits of issuing tax—exempt certificates of participation to partially fund the District’s share of joint works capital construction requirements,including the advantages and disadvantages of fixed interest rate versus variable interest rate securities and the potential for increased investment returns based upon the spread between the District’s investment earnings on reserves and the currently lower interest rate for variable rate debt. It was then moved and seconded that the financial consultant,bond counsel and staff be directed to proceed with planning and preparation of necessary contracts,legal opinions,official statements and related documents required to prepare for issuance of tax—exempt certificates of participation to partially fund the District’s share of joint works sewerage facilities prior to the September 1,1986 deadline. A substitute motion was then offered to consider the implementation of user fees. The motion failed for lack of a second. Following a call for the question on the original motion,the vote was polled and the Secretary reported that the motion had passed. Director Norby requested that his vote in opposition to the motion be made a matter of record. It was then moved and seconded that the financial consultant and bond counsel be directed to proceed with planning for issuance of tax—exempt certificates of participation on a fixed interest rate basis. Following further discussion of the advantages and disadvantages of fixed—interest rate versus variable—interest rate debt financing,the vote was polled and the Secretary reported that the motion had passed. Director Norby requested that his abstention from voting on the motion be made a matter of record. Adjournment Moved,seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No.3 be adjourned.The Chairman then declared the meeting so adjourned at 9:27 p.m., June 18,1986. Secretary,Board of Directors County Sanitation District No.3 of Orange County,California —2—