Minutes 69-09-03438
MINUTES OF AN ADJOURNED REGULAR MEETING
OF THE CYPRESS CITY COUNCIL
HELD
September 3, 1969
An adjourned regular meeting of the Cypress City CounCil was called to order
at 8:00 p.m. at the Cypress County Water District, 9471 South Walker Street,
Cypress, California, Mayor Delno G. Kanode presiding.
PRESENT: Councilmen Bowen, Harvey, Kanel, Noe and Kanode
ABSENT: None
Also present were City Manager/City Clerk Darrell Essex, Cypress County Water
District Manager Daniel T. Mackay, and the following members of the Board of
Directors of the Cypress County Water District: A.E. Arnold, Martin McCarney,
Victor Sherron and Robert Stahovich.
The City Manager outlined the purpose of the meeting, which was to develop an
agreement between the City and the Water District providing for dissolution of
the Cypress County Water District as of June 30, 1970 without further litigation.
In this regard, Director Arnold presented the following proposals for
consideration:
Proposal No. 1:
1. On July 1, 1970, the District would terminate its manager, engineer
and attorney.
The District and City would enter into a contract whereby the City
would assume control of all District facilities and would provide
sewer service to all areas of the District. (Also plan checking and
supervision of new construction.)
The City would provide the Board of Directors of the District with a
place to hold periodic meetings to determine whether the contract
was being observed.
4. The City would hire Ginger at her current salary.
Each year the City would bill the District for its costs of operating
the system. This would be paid by the District to the City from funds
available if possible and if not, the District would levy a tax rate
to raise only this sum.
6. The District will deannex all areas not being served by the District
or which other cities wish to serve themselves.
7. The District offices, vehicle, etc., could be sold to raise funds to
pay the City's charges for several years.
When the total area of the City equals more than 80% of the assessed
value of the land of the District, the City could take over the
District entirely. The members of the City Council could become the
Board of Directors of the District and thereafter do with the District
what it pleases.
Proposal No. 2:
An election is to be set for the June primaries. If the election
finds that the District is to be dissolved, the City of Cypress is to
take over the business on July 1, 1970.
Assets of the District shall be distributed amonK the several cities
and counties within the District, each receivinR according to the
percentage of its area within the District. The share which belongs
to the unincorporated areas of Orange County shall be held in trust
by the Board of Supervisors.
Adjourned City Council Meeting
September 3, 1969
3. The District office building is to be sold and the proceeds handled
in the same manner as the other assets of the District.
4. The office secretary is to be guaranteed a Job at her rate of pay as
of June, 1970, with regular cost-of-living increases.
As a result of general discussion regarding these proposals, it was agreed that
Proposal No. 1 did not apply since the City Council had initiated dissolution
proceedings, which had been approved by the Local Agency Formation Commission.
In reference to Proposal No. 2, considerable discussion was held regarding the
best possible date to hold a dissolution election in the District, with the
Water District officials desiring a consolidation with the June Primary and
the City Council generally favoring consolidation with the Cypress General
Election scheduled for April.
Following discussion as to the advantages and disadvantages of these two
dates, it was generally agreed that the dissolution election should be
scheduled for April of 1970.
The City Manager expressed an objection to the condition in Proposal No. 2
which proposed the sale of the Cypress County Water District offices with
the resulting assets to be distributed according to the Government Code. The
City Manager stated that although the division of assets is governed by the
provisions of the State Code, the agreement for dissolution could contain a
provision which would credit the County area with the percentage of the value
of the Water District facilities in lieu of selling the facilities and
distributing the assets as suggested in Director Arnold's proposal. It was
generally agreed that this compromise solution would be acceptable.
Following further discussion regarding the provisions of the proposed agree-
ment, it was generally agreed that the Cypress County Water District Board
would not expend moneys to oppose the dissolution proceedings or involve
themselves in the dissolution election, and would further refrain from
incurring any long-term indebtedness during the current fiscal year.
It was further agreed that if an acceptable agreement is executed by both
parties, the Cypress County Water District would retain the Water District
facilities and would also withdraw all litigation involved in the dissolution
proceedings.
During discussion, it was generally agreed that the City would employ the
current secretary of the District and would set the dissolution date for
3une 30, 1970 regardless of the timing of the dissolution election.
ADJOURNMENT:
There being no further business to come before the City Council, it was moved
by Councilman Noe, seconded by Mayor Kanode and unanimously carried to adjourn
the meeting at 8:55 p.m.
It was moved by Director Sherron, seconded by Director McCarney and unanimously
carried to adjourn the Board of Directors meeting at 8:55 p.m.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
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