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HomeMy WebLinkAbout1956-02-14; City Council; Minutes70 )OR THE CARLSBAD CITY COUNCIL February 14, 1956 The meeting was called to ,order at 7:ll P. M. by Raymond. C, Ede, Mayor. Present besides the Mayor were Councilmen Castorena and Helton, City Man- ager Nelson, City Attorney Smith, City Clerk Ewald, Also present were members of the .Municipal Water District Board of Directors, Directors of the Mutual Water Company, and members of the Mayor's Water Study Com- mittee, Cmn, Robinson was present after 7r30 P, M, Absent: Cmn. Sutton, City Attorney Smith presented Ordinance No. 6027, imposing a City Sales Tax and providing for enforcement of same by the State Board ,of Equaliza- tion, He briefly reviewed the contents of the ordinance for the inform- ation of the Council, Cmn. Castorena moved the adoption of Ordinance No, 6027 and that, with the reading of title and number, this constitut-e first reading, Seconded by Cmn. Helton, All ayes, motion carried. Resolution No. 198, urging the Board of Supervisors of the County of San Diego to adopt a County Sales and Use Tax Ordinance, was read and discussed, Dmn, Helton moved the adoption of Resolution No, 198, Seconded by Cmn, Castorena, Roll call vote: Helton, aye; Ede, aye; Castorena, aye; three ayes, no noes, absent, Cmn. Sutton, Cm. Robinson, Resolution adopted. Discussion was opened on the proposal of the City for the purchase of . , the Mutual and -Terramar FJater Companies. City Attorney Smith summarized recommendations contained in .the verbal report which was presented by the Mayor's Committee to the Council at the regular meeting on February 7, 1956, after which City Manager Nelson explained favorable action was taken by the Council at that time and it was felt an invitation should be extended to the Municipal i3oard and Mutual Board, along with members ofthe Mayor's Committee, to discuss which would be the better group or agency to assume operation of the companies, . President Fry, acting as spokesman for the Municipal Board, indicated the Boardts willingness to withdraw their offer for purchase of the Mu- tual in the event that the City takes agressive steps towards the acquis- ition of the -Mutual. He stressed .the Board's policy of wholesaling , water only, stating that the primary objective of the District is to ge,t water from the aqueduct to the District, He pledged the Board's support in the City's acquisition and integration of the companies and- requested that the City give support to the Municipal el-ection for the pipeline to the aqueduct, Mrs. Daun Gillette, a representative from the North Carlsbad area, called attention to the fact that the North Carlsbad area has been assured of a water supply, in the event that the area chooses not to annex to Ocean- side. City Attorney Smith confirmed this fact and informed the Council that legal provisions would be made to see .that the North Carlsbad area is protected, Director Zahler informed the group that the Municipal Water District comprises 22,000 acres and asked what the City plan is in regard to sup- . plying water to areas outside the City limits. City Manager Nelson ad- vised it is anticipated that if the City acquires the Mutual and Terra- mar Water Companies, the City would distribute water only to Terramar and areas presently serviced by the.Mutua1. City Attorney Smith advised . that areas outside the corporate 1imit.s of -the City, desiring to be ser- viced, would be obligated to take care of the cost of the pipelines and to pay a service charge to take care of the cost to the City. If using City lines, would be obliga.t;ed to pay for the use of the line. Director Rogers called attention tothe fact that the Mutual boundaries extend three mifes inland and the Xutual is also obligated to service these areas if requested by property owners in .the area. Director Kelly - 1 pointed out that the high cost of bringing water to the dry lands would discourage any request for service in those areas lying outhide the .City limits, In the event of any subdividing of parcels, the area would automatically annex to the City and agricultural areas would form an im- provement district .and come to the Municipal Water. District for water supply Mutual Director Engels stressed the importance -of the City bid being at- tractive enough to. be acceptable to the shareholders in the evknt that other offers should be submitted. He pointed out that the highest cash bid should take priority, calling attentisn to the fact that if a pri- vate owner utility group should come in and aake another offer of cash for the firms outright, it would be a more attractive offer than prescnt- 1Y offered by the City. Mrs. Gillett emphasized that from an economical 4L 1 .'4 standpoint .the City is. the logical .agencyy to assume nperation of the Mutual.'as water rates under City operation would be more reasonable than those under private utility supervision due to the fact that the City is not a profit-making activity, Vcs, Sutton called attention to the fact that the City'Attorney has ad- vised that the voting by the shareholders could be done by mail and, therefore, would 'not require a quorum at a meeting, Mr. Frank Smith called attention to the fact that, while %he Mutual ser- 'vice area is comprised 'of only 2,000 acres, the City embraces a total of 5,000 acres and he questioned what assurance the share-holders are go- ing to have that they will be given preferential rights on the water available. Birector Rogers informed him that is the question of pay- ment -- the citizen is kiving up his water rights, Mr.' Smith stressed the fact that the City would have to guarantee that the San Luis Rey water would not be taken outside the Mutual area as there must be a Preferential given to the Mutual shareholders on San Luis Reg Water. City Attorney advised that the Mutual area .would be given preference on the delivery of 5an Luis Rey water but pointed out that; water rights have. no value under the State Code and the City would inherit factual obligation to supply areas not presently serviced by the Mutual. I 3 -1 3 e 4 3 I .Mr,. C, I). McClellan questioned the advisability of including the pipeline issue and the acquisition of the water companies in one election for the reason that .combining the two would create too many isques. He expressed the opinion that acquisition of the two companies should be put aside un- til such time as the primary supply from the aqueduct is assured, Nr, Smith offeked the. suggestion that the Municipal build the connection to the Fallbrook lateral at 'a cost of approximately $200,000,00 rather than financing a' direct line to the aqueduct, It was pointed out that this connection would not be adequate for the City's needs and that additional water will be. needed in the very near future. Director Rogers stressed the importance of urgency in the construction of the lineo if any assist- ance is to be forthcoming from- the SanO Marcos area or the San Diego later Authority, pointing out that if immediate steps are not taken, San Marcos will proceed with the construction of their own line for which they have set asiden $135,000.00 from the recent bond issue . Considerable discussion was held on the question of whether or not the two elections should be held simultaneously and Mrs, Gillett stated she would favor a "package" deal as' it was her opinion that by giving the voters assurance of a unified solution to the water problem, both issues would pass, Director Ingels spoke against combining the issues as he felt it would be putting too much before the voter at one time. Director Kelly urged that both proposals be put on the same ballot and be voted bn at the same time, Mr.Jay Hoffman offered the opinion Chat both elections should be held on the samk day as long as they.are so c,losely related and stressed the fact that, if the voters are pr&erly educated an the sub- ject, the bond issue would go through . Mrs. Sutton requested that members of the Mutual Board of Directors tx- press their views in regard to whether or not the Mutual should be sold. Director. Rogers eyphasi.zed that he does not favor giving the stock in the Mutual away, He pointed out that it would be posskble for the Com- 'pang to continue to operate on a regular assessment basis and to go ahead and rehabilitate the company but he stated he feels the City should go ahead and purchase the company. . Director Inge'ls stated that if the majority of the stockholders want to pay the small assessments, he feels it should remain as it is. Director Robinson informed ;the group that the Company has exhausted all possible ways of getting fund,s exccptt by as- sessmcnt*aand it cannot go outside for financing. He st,ated he feels the shareholders would be' interested in selling the Company. Director Bril- hart stated he feels that the solution is in the City taking over the Company and that the bond issues should be completed at/ one time as it would be more economical. Director Anthony expressed the same favorable opinion, stating he feels that the City is the logical one to take over operation of the Mutual. City Manager Nelson presented a prepared report outlinhg a program for personnel and administration for the integration of the' two companies into the City, The possibility of the City constructing the pipe-line ,to the aqueduct was discussed and Director Rogers pointed out that such a plan would not be practical as the City would be using up its bonding capacity and the City does not use enough water to afford to build a pipe-line, I .. The City-*s position, in the event the- Municipal pipeline bond. issue should fail, was considered and it was pointed out that the City would not be obligated to go ahead to issue thebonds if the issue fails. Mr. McClellan suggested that a provision could be written in, whereby the City would not exercise the right to issue the bonds in the event the pipeline fails. City Attorney Smith advised that this point will be - studied and perlhaps be incorporated into the bond issue. Discussion was Iheld on the most equitable means of obtaining a fair and firm figure for the purchase of the two companies. Mr. Cannon, owner . of the Terramar Water Company, indicated his preference for the hiring of an appraiser. Director Kell'y stated that, in his opinion, the origin- al offer of $4OO,OOO.OO is reasonable and stressed the fact that the public is aware of this price and has accepted it. Director Rogers offered the suggestion that the purchase price could be placed in brackets on the ballot in the event that the appraising of the two com- panies has not, been completed in sufficient time to allow the two bond issues to be presented at the same time. City Attorney Smith stressed the importance of a balance between the purchase price of Terramar and the Mutua1 Water Company. Nr. McClellan again stressed the importance of voting for the pipeline issue separately, stating that the combining of the issues would make the presentation so complex. Nrs. Sutton advised that it was the feeling of the Committee that a pro- portionate share of the appraisal price. would be paid for each of the twcr companies. Cmn, Castorena moved that the City instruct the City Manager to investi- gate the possibility of acquiring an appraiser to appraise both the Mu- tual Water Company and the Terramar Water Company and that both companies be given the opportunity of expressing themselves as to the acceptance of the appraiser. Seconded by Cmn, Helton. , Three ayes; Mayor Ede, Cmn. Castorena, Cmn. Helton. Cmn. Robinson abstaining from voting due to official connection with the Mutual Water Company. It was formally agreed that the cost of the appraisal will be borne by the City. It was generally agreed that the City bond election will not be sched- uled simultaneously with the pipeline election but, the plans will be set and will be ready 'to go shortly after. Mayor Ede informed the Municipal Board that the City will offer every effort and will do every- thing to help the pipeline issue pass. -e City Manager NeILson announced the League of California Cities dinner is to be held at the Twin Inns on Friday, February 15, 1956, and requested that reservations be placed with the C ity Clerk. Crnn. Helton moved for adjournment and it was seconded by Cmn. Castorena, The meeting was adjourned at 10:15 P. M. Respectfully submitted, - s /sgd/ M. 0. EFJALD, City Clerk """""""_-_-_-I_______________ MINUTES OF THE REGULAR WETING OF THE CARLSBAD CITY COUNCIL February 21, 1956 The meeting was called to order at 7:07 P. M. by Mayor Raymond C. Ede. Present besides the Mayor. were Councilmen Castorena, Helton, Sutton and Robinson, City Manager Nelson, City Attorney Smith, City Clerk Ewald, and Commissioner Yourell, representative from the Planning Commission . The minutes of the regular meeting of February 7, 1956 were reviewed and minor correction noted. Cmn, Helton moved the approval of the min- utes of the meel;ing of February 7, 1956. Seconded by Cmn. Castorena. All ayes, motion carried. After discussion of the minutes 0% the adjourned meeting of February 14, 1956, Cmn. Robinson moved the minutes of the meeting of February 14, 1956, be approved as corrected, Seconded by Cmn. Helton. All ayes, mo- tion carried, Correspondence was read by the City Clerk as follows: