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HomeMy WebLinkAbout1971-11-09; Water Committee Ad Hoc; MinutesMINUTES OF: Water Committee Meeting DATE OF MEETING: November 9, 1971 (4:00 p.m.) PLACE OF MEETING: City .Manager's Conference Room Present: Chairman Bob Watson, Mayor Dunne, Bill Esterline, Win Pri- day, Councilman McComas, Hunter Cook, Chief Anear, Bob Neely, Bert Stalker, Thelma Sowell, and Knox Williams Absent: City Manager Jack Arnold, Bill Cannon, Ray Barrett, and Al Moe Others Present: Mrs. Sharon Morgan of Carlsbad Journal Chairman Watson opened the meeting at 4:10 p.m. He stated that he had met with Mayor Dunne earlier this week and wanted to offer the results of their discussion to the Committee for consideration to- day. It had been suggested that there is a need to improve the Water De- partment and attain better control in administrative monetary re- quirements. The responsibility would fall under Mr. Priday's juris- diction. It was also suggested that possibly we obtain a full charge department head in the form of a Civil Engineer who would concern him- self with day-to-day operation, budget, construction, and property management. Mr. Watson would like to have the Water Committee mem- bers become better acquainted with the water budget and lend their recommendations. Mayor Dunne would like a recommendation from the Committee as to whether a full charge department head is a prudent step in the right direction. To date, Bob Neely has been performing field and engineering needs, and control has been handled in the Finance Department. Mr. Watson recommended correlating these three departments and having one per- son handle these functions. Bob Neely is very concerned with oper- ational aspects but doesn't find time for any of the legal aspects, nor does Mrs. Sowell. The Committee can make recommendations to the Council, as well as the Public Works Director. The City Coun- cil may consider transfer of any funds when they are needed. Mr. Watson stressed the need to have one person concentrate on the re- quirements of the Water Department. Chairman sited one legal problem that should be resolved, namely our position regarding the source of water rights in the San Luis Rey Valley. Mr. Watson doesn't feel that it is just one depart- ment head's responsibility to follow through on a particular prob- lem. The Water Department's budget was discussed with Mrs. Sowell this afternoon and Mr. Watson determined that it could be improved. Bob Neely distributed a report on our adopted water rates for study by the Committee inasmuch as there may be a future increase. The channels through which we obtain our water, as well as present rates, were discussed. Presently we are purchasing untreated water at Water Committee Minutes - 2 - November 9, 1971 $48.00/acre ft., to which the Metropolitan Water District adds $1.25, CMWD adds $14.00, for a total delivered cost of $63.25 dur- ing the fiscal year 1971-72. During 1973-74 there will be no unfil- tered water available; consequently, it will be necessary to pay the filtered rate. Colorado River water will cost $63. Adding $15.25 (assuming there are no CMWD increases), the delivered cost will be $78.25, which is an approximate 23 or 24% increase. The very least that we can expect in the next two years will be a 25% increase. The statements issued by the Metropolitan Water District are to- day's projected figures. Mayor Dunne questioned whether the City was receiving an agricul- tural rate. Presently Paul Ecke is the only person receiving a special rate on water. In the future we will be selling more and more domestic and less agricultural water. Considering the poten- tial water rate increase and our bond requirements, our budget cur- rently is in a precarious situation. Mayor Dunne asked Mrs. Sowell whether the City had a cash-flow pro- jection for the next fiscal year. Mrs. Sowell stated that the bond projection is on page three of the auditor's report. We show a net loss of $22,000 but do not show the accrued revenue. With the sub- sequent month's billing we would have a zero balance for the first quarter, which is the best quarter for water usage. Beginning bal- ance June 30, 1971 is $211,000. The Water Department has no profit at this particular time. We are paying CMWD $1,000 more than we had budgeted for 1971-72. Mayor Dunne stated that standby meter charges should cover administrative costs, overhead, and maintenance. The charge for water usage should pay off CMWD and our bonds. With the surcharge on the rate we are paying CMWD there isn't much profit, as the cost and sales figures are very close. Bob Neely advised there is more profit during a dry than a wet season; however, the City still has the operating costs during either season. Ready-to-serve charges have never been increased. Mr. Watson stated that if there is a deficiency, some- thing should be done. Mr. Friday remarked that our base rate of $64.44 does not hold true throughout all our metering. It varies within districts. Our water loss during the last fiscal year was less than in previous years. The water loss was due to the manner in which CMWD was bill- ing the City. We were absorbing theirs as well as our loss. Here- tofore our water loss was 11 to 32%. Now CMWD has a higher loss Capprox. 5%) than they have ever had. Status of Construction Project City Engineer commented that the project undoubtedly would be com- pleted in eight months. We hope to have the complete system in operation neat summer. The contractor CDon Hubbard) is doing an excellent job and the complaint ratio has been very low. Mayor Water Committee Minutes - 3 - November 9, 1971 Dunne asked for a cost projection. City Engineer explained that we had sufficient funds with the KUD money to complete the project. The cost figured slightly below the budgeted amount. We are investigat- ing some of the lines that are not included in the contract and are working with HUD to recommend change orders. Costs (approx.$109,000) which have been incurred by public works forces will be studied to determine if HUD will approve them. Agreement with HUD specifically states that work should be done by contract. HUD has looked favor- ably on special circumstances whereby we had to do the work ourselves Land Acquisition for Construction Project (City Engineer) Negotiations have been completed with the Shefflers, and we are re- designing the Ellery site. City Council has authorized us to pur- chase the site for $42,000. We hope that Engineering Science will be able to complete the project economically. We have obtained a writ from the court, acquired all the necessary easements, and have awarded the contract for Schedule II for the reservoirs. The only reservoir to be resolved pricewise is the Adler one. It is the smallest of the sites (approx. $3800). Mayor Dunne questioned the reservoir height. Mr. Cook stated they will be approximately 10 ft. above the ground. Chairman questioned whether there were sufficient funds in the budget to finish the en- tire program of land acquisition, and whether HUD money would be over and above construction needs. Mr. Cook is analyzing certain lines that were not included in the original plans and will have a complete run-down on the total project at our next meeting. Bonds issued were $1,225,000. Based on present construction, which is under way, we will receive about $900,000 from HUD. Chairman asked City Engineer for a formal budget report which would cover the highlights. Mr. Watson suggested the appointment of a sub-committee to develop recommendations regarding a Water Department Coordinator to be pre- sented to the Water Committee and then to the City Council. Mayor Dunne requested the Chairman to furnish the Council with at least the titles of the various mutual water companies. Mr. Watson noted that we do not own the San Luis Rey sump on Mission Road. Quite some time ago our former City Attorney, Stu Wilson, was requested to check the land owned by the Water Department. It appears there is still a mutual water company, however, the title should be trans- ferred to the City of Carlsbad since we are paying the taxes. This legal matter should now be handled by our present City Attorney. Bob Neely will follow through on this project. Mayor Dunne requested the Finance Director to forecast the Water Department's position for the neat nine months in order that the Water Committee can determine if it will be necessary to increase water rates. Water Committee Minutes - 4 - November 9, 1971 Mayor Dunne mentioned the idea of CMWD absorbing the City water sys- tem. He stated our bond agreement stipulates we cannot turn it over to CMWD. Our City Auditor, Wayne Carroll, in his memorandum to our City Attorney dated 11-2-71, intimated the City will operate the water system. (Continuation of "Status of Construction Project") Mr. Cook reported that El Camino Real is also a CMWD water line. Any place we serve from a CMWD line we wind up putting in meter vaults. From an engineering and operational point of view, it would be desirable to move the Chestnut meter vault to El Camino Real. CMWD has requested, in writing, that City members meet with them to discuss the relocation of this meter vault. We mutually concurred that any agreement involved in moving the meter would have no effect on the final boundary negotiation. Mr. Friday sug- gested that the Committee concur with the staff's recommendation. City Engineer distributed a map of the John Prewitt property in Oceanside. Mr. Prewitt would like the City to vacate their rights so he can clear his title policy. The City will probably never use the water wells on this property. Committee members Williams and Esterline feel that this property is undoubtedly worth something, and Mr. Cook will investigate its value. Mr. Prewitt will be un- able to build as long as we have some rights on this property. Knox Williams moved that Mr. Watson and Mr. McComas meet with CMWD to resolve the relocation of the Chestnut reservoir site. Motion was seconded by Mr. Stalker, and unanimously carried. Knox Williams moved that a committee, consisting of Mr. Stalker, Mr. Esterline, and Chairman Watson, be established to propose rec- ommendations to the entire Water Committee and then the City Coun- cil regarding the Water Department rate as set by the Council, and the feasibility of a Water Department Head with a job description for same. Motion was seconded by Mr. McComas, and unanimously car- ried. Mr. Stalker moved that we schedule a Special Meeting, November 23, at 4:00 p.m., in the City Manager's Conference Room. The motion was seconded by Mr. Williams and unanimously carried. Meeting was adjourned at approximately 5:55 p.m. Helen Lindsley Recording Secretary hi