1990-01-23
MINUTES OF ADJOURNED REGULAR MEETING OF CARDIFF SANITATION DISTRICT
. BOARD OF DIRECTORS , JANUARY 23, 1990, 4;00 P.M., 535 ENCINITAS
BOULEVARD, SUITE 100, ENCINITAS, CALIFORNIA
1. CALL TO ORDER/ROLL CALL
.
Chairman Gaines called the meeting to order at 4:01 P.M.
Present: Chairman Gaines, Board Members Hano, Omsted, Shea and
Slater.
Also District Manaqer Shafer, Assistant City Manaqer Benson,
Present: Board Attorney Krauel, Board Clerk Pool, District
Enqineer Auqust, and Senior Office Specialist Greene.
There beinq a quorum present, the meetinq was in order.
2. PLEDGE OF ALLEGIANCE
3. ORAL COMMUNICATIONS
None.
4. CLOSING AND ADOPTION OF CONSENT CA~NDAR
Shea moved, OIDsted seconded to close and adopt the Consent
. Calendar. !lotion carried. Ayes: Gaines, Hano, omsted, Shea,
Slater; Hays: None.
A. ADproval of Minutes: Jal1uary 9. 1990.
B. ADDroval of Januarv 23. 1990. Warrants List.
5. NEW BUSINESS
A. 1. Authorizina Aaree~ent to Eau~liz, OwnershiD Interest of
the Cardiff and Solana Beach San~ol1 Districts in the
San Elijo Water Pollution Control Facilitv As Called for
by the UD9rade and ExDansion Aareement Entered Into by
the Parties.
City Manaqer Benson explained that on April 11, 1989, the Board of
Directors reviewed and approved the Upgrade and Expansion Aqreement
between the San Elijo Joint Powers Authority (JPA), Cardiff
Sanitation District (CSD) and Solana Beach Sanitation District
(SBSD) for the upqrade and expansion of the San Elijo Water
Pollution Control Facility (WPCF). The Upgrade and Expansion
Aqreement contemplated a 50-50 equalization of the ownership of the
WPCF between the CSD and SBSD, prior to assigninq the costs for the
project. The Upqrade and Expansion Aqreement was entered into by
. CSD Mins. 01/23/90 Page 1 MTG# 90- ~ BK#L, PAGEjßQ
. the parties on May 3, 1989. He stated further that in order to
carry out and implement the Upqrade Expansion Agreement, the
Aqreement to equalize the ownership interests of CSD and SBSD must
be approved and executed.
Staff's recommendation therefore, was that the Board approve the
Aqreement to equalize ownership interests of the Cardiff Sanitation
District and the Solana Beach Sanitation District in the San Elijo
Water Pollution Control Facility as called for by the Upqrade and
Expansion Aqreement.
Omsted moved, Shea second to accept Staff's recommendation. Motion
carried. Ayes: Gaines, Hano, 08sted, Shea, Slater; Nays: None.
2. Review of Construction Contract Award for San Eli;o Water
Pollution Control Facility UD9rade and EXDansion Pro;ect.
Discussion. Review and ADDroval of Resolution No. 90-03
Authorizina the Borrowina of Funds From the San ~li;o
. Joint 'Powers Authority in an Amount Not to Exceed
$14.435.000 Relating to the San Elijo Water Pollution
Control Facility UDarade and EXDansion Pro;ect. ADprovi..ng
a Loan in the PrinciDal Amount Not to Exceed $14.435.000.
ADprovina Sale of Bonds and Official Statement. and
Authorizinq Official Actions. Introduction of Ordinance
No. 90-01 ADprovina a Loan Agreement with the San Eli;o
. Joint Powers Authority.
John Murk of Murk Enqineering explained that the bids received for
the project were hiqher than they had hoped. The low bidder was
C. E. Wylie Co., San Dieqo and their references checked out well,
confirming that they had a lot of experience with projects of this
nature and size.
Mr. Murk said the reason the bids came in so high was because the
market for this kind of construction is siqnificantly more than
shown by any of the indexes used by the design enqineers doing the
forecastinq.
Further, the contract had been awarded to Wylie Co. with the
,.,.. contingency tha~ ~t would only be executed by the Chair of the
. BOard on successful completion of the financinq.
Bill Madison of Jones, Hall, Hill & White, told the Board the total
amount of the bonds approved was not to exceed $31,000,000 to be
secured by two loan aqreements, one to the Cardiff Sanitation
District and one to the Solana Beach Sanitation District. The loan
aqreement principal amount is not to exceed $14,435,000. The
proceeds of the loan aqreement will be used to finance the
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CSD Mins. 01/23/90 paqe 2 MTG# 90-eL BKIL, PAGEL
8' CSD MINUTES, 01/23/90
District's share of the proj ect but also refund outstanding revenue
bonds issued by the District in years past.
.
Board Member Omsted asked for the schedule for releasinq the bonds
and the amounts impactinq the rate payers.
Mr. Murk said the bonds would be issued all at one time, and that
no exact amounts to the rate payers was available as yet, but qave
an estimate of $80 to $90 per year per user.
cathy Bando of Security Pacific Merchant Bank explained the bank
was estimating the total bond issue includinq the refinancinq of
all existing debt to be $28,000,000. The parameters qo up to
$31,000,000 in case additiona¡ reserves are required.
Board Member Gaines asked for a breakdown of fiqures to show how
the funds are going to be used and how the costs and funds are
qoinq to affect the rate payers as well as the people who make new
connections.
District Manager Shafer said this was the most advantaqeous time
to market the bonds because rates are low. He said there should
be a substantial savings to the rate payers if the bonds are issued
. now.
At the direction of Board Chairman Gaines, Ordinance 90-01 was read
by title.
Bano moved, Slater seconded to waive further readinq and introduce
Ordinance 90-01. !lotion carried. Ayes: GaiheS, Bano, Omsted,
Shea, Slater; Hays: None.
Board !lember Slater moved to adopt Resolution 90-03 authorizinq
the borrowing of Funds from the san E1ijo Joint Powers Authority
in an amount not to exceed $14,435,000 relatinq to San E1ijo Water
Pollution Control Facility tJpqrade and Expansion project, Approvinq
a Loan in the principal Amount not to Exceed $14,435,000, Approvinq
SaJ.e,of DonaS Qø Official statement, and Authorizinq Official
Actions. Bano seconded. Motion carried. Ayes: Gaines, Bano,
omsted, shea, Slater; Nays: None.
6. ITEMS REMOVED FROM THE CONSENT CALENDAR BY BOARD MEMBERS
None.
7. BOARD/DISTRICT MANAGER REPORTS
None.
. CSD Mins. 01/23/90 Page 3 MTGI 90- ()3 BKI!-, PAGEIlC
CSD MINUTES, 01/23/90
8'
8. ADJOURNMENT
Chairman Gaines declared the meeting adjourned at 4:30 P.M.
-, , ád.¿wJ
Pool, Board Clerk
athyGreene, Senior
Office Specialist
.
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CSD Mins. 01/23/90 paqe 4 MTGI 90-03 BKIL, PAGEJ?1