Loading...
HomeMy WebLinkAbout1972-01-11; Water Committee Ad Hoc; Minutesff MINUTES OF: Water Committee Meeting /' DATE OF MEETING: January 11, 1972 - 4:00 p.m. PLACE OF MEETING: City Manager's Conference Room Present: Chairman Bob Watson, Vice-Mayor McComas, Col. Bowen, Bill Cannon, Bill Esterline, Bert Stalker, Knox Williams, City Manager Arnold, W. F. Priday, City Engineer Cook, and Fi- nance Director Sowell Others Present: Chai rman J Wa ack tson Kubota , opened Gen the . Mgr . meeti i of Carl ig at 4 : sba 05 d P Muni . m . cipal Water District Minutes of the December 14, 1971 regular meeting were approved as cor- rected in the fourth paragraph on page two. "The average resident con- sumes 1/5 acre foot of water in a normal year rather than one acre foot." Vice-Mayor McComas moved that the minutes be accepted as amended. Mo- tion was seconded by Bill Esterline, and unanimously carried. Boundary Agreement Mr. Priday reported that Attorney Paul Swirsky is developing an operat- ing agreement which should be ready very shortly. Discussion was held on the boundary agreement between the City and CMWD. Vice-Mayor McComas brought Mr. Cannon up-to-date re changing the service boundaries. Legal Counsel's Report - Prewitt Property City Manager advised that City Attorney Moe suggested Mr. Prewitt en- gage, at his expense, Leroy Wright, attorney for the Water Authority, to research the feasibility of Mr. Prewitt's request and submit a re- port to us for City Council consideration. Mr. Watson gave Mr. Cannon some background material on this matter. Water Committee felt that communications with Mr. Wright should be be- tween the City and Mr. Wright, and not between Mr. Prewitt and Mr. Wright. City Manager will talk to City Attorney to resolve this mat- ter. San Luis Rey Transmission System Report City Manager stated that the Foussat property in Oceanside was being sold for taxes. On behalf of the City of Carlsbad the title company entered a bid of $4400. The title for this property will be researched in court. Mr. Cook talked to Oceanside regarding any possible joint use of pipe- lines for transmission of San Luis Rey water to the City of Carlsbad. Presently only thing available to us would be a line not used by Oceanside. In talking to Oceanside City officials a joint powers agreement was further suggested to jointly treat this water. Ocean- side is not pumping water anywhere because of its poor quality. Mr. Goodwill follow through on this matter. Mr. Arnold remarked that after the zoning information is procured we can determine whether there will be any use. Water Committee Minutes - 2 - January 11, 1972 Col. Bowen noted that we could lose our right to pump water if we fail to exercise our right for a given period of time. Other people could move in and appropriate it. The joint powers agree- ment which exists between the water using agencies and San Luis Rey will be part of the plan in the procedure for reclaiming water. There are 13 agencies that have an interest in making the water usable; however, Col. Bowen does not think that anyone will want to step in and usurp our use of the water. Water Rate Revi ew Chairman stated we should try to determine our financial status at the end of the fiscal year and also a year hence. Mr. Friday re- viewed the cash flow statement and noted that the two lines on the graph may rise sharply (total revenue may level to operating cost). We do have a tight budget at this point, and our operating expendi- tures are 10% less than what they theoretically could be. We will not be increasing the capital amount because we have a good stock of pipeline supplies, etc. to carry us through this fiscal year. Finance Director reported that the Water Department will be $12,000 short of cash on hand at the end of the fiscal year and estimated that our requirements would be about $40,000. Mr. Cannon pointed out that income anticipated for the entire year is over $600,886. Mr. Williams remarked that less than a 20% increase would cover this. Chairman noted that shortage at the end of the next fiscal year could possibly be $80,000 to $100,000. Mr. Williams recalled that the Committee recommended a considerable increase several years ago but it was not approved by the Council at that time. City Mana- ger announced that San Dieguito, just to the south of us, and San Clemente to the north of Pendleton, are paying higher water rates than Carlsbad residents. Vice-Mayor McComas' request for permission to leave at 5:05 p.m. was granted. Col. Bowen remarked that a recent study revealed that consumption of water dropped with increase in cost. Mr. Esterline thought it might be well for the staff to work out some rate increase for the remainder of this fiscal year, and then the following fiscal year, and also project it into future years. This could be accomplished in increments. It may be preferable to increase the water rate 10% this year, 13% next year, and 15% the following year rather than 30% at one time. Mr. Williams suggested we check the accuracy of the rates received from other districts and then publish them in the newspapers. If residents realize our rates are competitive they will more readily accept the increase. Mr. Arnold noted that San Diego is operating on a deficit and the balance is taken from their general fund. Mr. Stalker felt the citizens of Carlsbad will have a negative attitude toward an increase due to the publicity of City surplus funds. Mr. Arnold reiterated that the public will have to know our position in comparison with other cities. Water Committee Minutes - 3 -January 11, 1972 Mr. Esterline questioned the operations of the water system being taken over by CMWD and whether we considered this possibility in our rate recommendation. Vice-Mayor McComas reported that the Ad Hoc Water Committee will meet with CMWD on January 26 (9:00 a.m.) at City Hall,at which time Mr. Arnold and Mr. Kubota will have some figures. The committee is trying to develop the advantages and disadvantages and will submit a report to the Water Committee before making a recommendation to the City Council. Col. Bowen noted that we have projected a $64}000 loss in the Water Department for the fiscal year. Will this be recovered from our general fund or paid from water sales this fiscal year? City Manager replied tjiat if we are short we will have to borrow from the general fund operation and then repay it. Mr. Esterline moved that the Water Committee on increases 1972 through June 30, 1975. total water revenues more in costs in order to mendations should City staff make recommendations to the in water rates for the period May 1, These recommendations should bring the line with the total water operating preclude possible deficit operations. The recom- include such combinations of increases with re- spect to ready-to-serve charges and water use sufficient to allow the Water Committee to make an appropriate determination in the matter. Motion was seconded by Mr. Stalker and unanimously car- ried. Motion for adjournment at 5:35 p.m. was made by Mr. Stalker and seconded by Mr. Williams. City Engineer then called for an execu- tive session of all Water Committee members. HL Helen Lindsley Recording Secretary