HomeMy WebLinkAboutMinutes 1986-07-09 ACOUNTY SANITATION DISTRICTS NOS.5 &6
OF ORANGE COUNTY,CALIFORNIA
MINUTES OF SPECIAL MEETING
July 9,1986 —6:30 p.m.
10844 Ellis Avenue
Fountain Valley,California
Pursuant to the call of the Chairmen,the Boards of Directors of County
Sanitation Districts Nos.5 and 6 of Orange County,California met in a special
meeting at the above hour and date at the Districts’administrative office.
The Chairmen called the meeting to order at 6:30 p.m.The roll was called
and the Secretary reported a quorum present.
District 5
DIRECTORS PRESENT:Evelyn Hart,Chairman,Philip Maurer,
Roger Stanton
DIRECTORS ABSENT:None
District 6
DIRECTORS PRESENT:James Wahner,Chairman,Ruthelyn
Plummer,Roger Stanton
DIRECTORS ABSENT;None
STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,
Rita J.Brown,Secretary,William H.
Butler,Thomas N.Dawes
OTHERS PRESENT:Thomas L.Woodruff,General Counsel,
Joint Chairman Don R.Griffin,Ed
Long,Frank Coughlin,Jr.,Lora Stovall
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DISTRICTS 5 &6 Chairpersons Hart and Wahner reported
Report,discussion and actions re that the purpose of the Special Meeting
long—term debt financing for was to review and give further
funding capital construction consideration to the alternative of
projects partially funding the Districts’
long—term capital construction program
needs by issuance of tax—exempt certificates of participation,as discussed at
the regular meeting of the Boards on June 11,1986.
The Director of Finance then reviewed the five and ten—year updated fiscal
projections of the Districts based upon two sets of assumptions for the Joint
Works Master Plan Sewerage Facilities Construction Program requirements;and the
supplemental financial information prepared by staff and the Districts’financial
consultant,Bartle Wells Associates,which had been provided to the Directors.
He also reviewed the alternative financing methods for funding Districts’
operations as well as the capital expansion program including ad valorem taxes,
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Districts 5 &6
07/09/86
user and connection fees,federal and state construction grants,use of existing
reserves and long—term debt financing.District 5 projections indicate that it
is in relatively good financial condition.District 6 projections,however,
indicate that it will have a capital funding shortfall in the early 1990’s.
Considerable discussion centered around the potential availability of federal and
state construction grants.Both the U.S.Senate and the House have passed
different versions of proposed reauthorization of the Federal Clean Water Act.
The bill is awaiting resolution of the differences by the Conference Committee.
Both versions propose the phase out of the federal Clean Water Construction Grant
Program over the next few years by reducing the level of funding appropriations
each year until totally phased out,as well as a reduction in the federal
participation from 75%to 55%of projects deemed to be eligible.The Districts
do not anticipate receiving any major grant appropriations over the next five
years because our construction program is primarily for hydraulic capacity rather
than grant-fundable advanced treatment facilities.
Following a review-of financial projections reflecting the Districts’fiscal
position with and without issuance of long—term debt securities,and the impact
on the Districts’financial position by issuing debt instruments,the Board
entered into a lengthy discussion on the relative merits of issuing tax—exempt
certificates of participation to partially fund the Districts’share of joint
works capital construction requirements over the next three years.Also
discussed was the benefit to the Districts of issuing long—term debt securities
prior to September 1,1986,to take advantage of currently favorable tax laws,
versus issuance of such securities in future years because of pending changes in
the tax laws by Congress.
DISTRICT 5 It was moved,seconded and duly carried:
That the District not proceed with issuance of tax—exempt certificates of
participation to partially fund the District’s share of joint works sewerage
facility requirements.
DISTRICT 6 It was moved,seconded and duly carried:
That the District not proceed with issuance of tax—exempt certificates of
participation to partially fund the District’s share of joint works sewerage
facility requirements.
DISTRICT 5 Moved,seconded and duly carried:
Adj ournment
That this meeting of the Board of
Directors of County Sanitation District No.5 be adjourned.The Chairman then
declared the meeting so adjourned at 7:25 p.m.,July 9,1986.
DISTRICT 6 Moved,seconded and duly carried:
Adj ourument
That this meeting of the Board of
Directors of County Sanitation District No.6 be adjourned.The Chairman then
declared the meeting so adjourned at 7:25 p.m.,July 9,1986.
Secretary,Boards of Directors
County Sanitation Districts Nos.5 &6 of
Orange County,California
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