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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 ************* 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, —1— 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 —2—