HomeMy WebLinkAbout1971-12-14; Water Committee Ad Hoc; MinutesMINUTES OF: Water Committee Meeting
DATE OF MEETING: December 14, 1971 (4:00 p.m.)
PLACE OF MEETING; City Manager's Conference Room
Present: Chairman Bob Watson, Vice-Mayor McCoinas, Col. Bowen,
Bert Stalker, W. F. Friday, and Bob Neely
Absent: Bill Esterline, Knox Williams, Bill Cannon
Minutes of the Special Meeting November 23, 1971 were approved as
presented.
Boundary Agreement
Vice-Mayor McComas and Chairman Watson held a meeting with the CMWD
Study Committee and discussed the relocation of the Chestnut meter
as well as the boundary agreement. Mr. Priday explained the map de-
picting the various service areas which were approved by CMWD and
LAFCO in September, 1970. CMWD and LAFCO are operating on the prem-
ise of this map; however, there has never been any approval by the
City. Vice-Mayor McComas stated that LAFCO is going to ask for some
documentation with the advent of every annexation. Mr. Watson noted
that defining the two service areas would be advantageous to the
City as it would eliminate Legal Counsel and City Council time as
well as visitations to LAFCO meetings.
Mr. Stalker moved the Water Committee recommend to the City Council
that the boundaries be adopted according to the outlined map. Col.
Bowen seconded the motion which was unanimously carried.
Water Rate Revi ew
Chairman explained the cash flow projection submitted by the Finance
Director. Figures from the last three years' budgets were compared.
Mr. Watson discussed the report with Mrs. Sowell who felt that the
balance at the close of the current fiscal year would be between
$30,000 and $40,000.
Chairman asked for the projected requirements of the Water Department
and also what emergencies they would be confronted with during a cal-
endar year.
Bob Neely reported that the present construction program will be com-
pleted and operating sometime the latter part of 1972. After com-
pletion there still will be approximately six miles of totally sub-
standard lines. The estimated cost of a five-year program to cor-
rect all problem areas would be $60,000/year, over and above the nor-
mal operating figures, or a total of $300,000.
Vice-Mayor McComas noted that we will have some residue on the bond
money. If HUD refuses our additional requests, the Water Improvement
will have $90,200 in surplus, assuming that this budget is on sched-
ule. We probably will know prior to the '72-73 water budget prepara-
tion. If HUD participates and we continue with the project we will
have an excess of $97,400.
Water Committee Minutes - 2 - December 14, 1971
Col. Bowen mentioned that construction costs are escalating at the
rate of 1% per month. Chairman Watson stated the cost of purchas-
ing water from CMWD will be increased in July, 1972. Col. Bowen
advised that our projected revenues could be based on a curve. It
appears that we are going to be $100,000 short next year. Mr. Fri-
day suggested we check closing balances back to 1965, and then by
a graph determine our future rates.
Bob Neely explained his summation of a survey of water rates through-
out San Diego County Water Authority. Carlsbad is running behind
other cities. Chairman Watson stated that our minimum ready-to-serve
charge is not in balance with our operating cost.
The City raised the ready-to-serve charge eight years ago on all
meters with the exception of the 5/8 and 3/4 sizes, which always
have been very low. A year and a half ago the Council raised the
water rates approximately 60% on the 5/8 and 3/4 meters.as recom-
mended by the Water Committee. After passage of the new water rates
the Council reduced the 60% increase to 30% on the 5/8 and 3/4 meters
The '70-71 budget revenue was based on the 60% increase, and after be-
ing reduced to 30% by the Council there was a theoretical loss of
$43,000.
Mr. Stalker inquired as to the average household consumption. It
was determined that the average resident consumes one acre foot of
water in a normal year.
Chairman requested Mr. Friday to prepare for our next meeting a more
comprehensive projection on the cash flow. Vice-Mayor McComas stated
we need to know the changes from time to time and whether or not we
receive the additional HUD funds. Mr. Friday will have a report at
the next meeting and will also obtain a letter from CMWD regarding
their projected water cost for next year.
Legal Counsel's Report - Prewitt Property
To date information has not been received from our legal counsel.
Matter was continued until the next meeting.
San Luis Rey Transmission System
Mr. Friday will check with City Manager of Oceanside, and Mr. Watson
will talk to Mr. Arnold to determine what, if anything, can be done
about transmitting water from the San Luis Rey system. Mr. Friday
read the letter from Mr. Arnold to the Water Committee regarding the
San Luis Rey Watershed Planning Agency. At their December 7, 1971
meeting the City Council instructed the City Manager to include mem-
bership costs in the 1972-73 Water Division budget.
Vice-Mayor McComas moved that meeting be adjourned. Motion was sec-
onded by Mr. Stalker (6:00 p.m.) and unanimously carried.
Helen Lindsley, Recoding Secretary