HomeMy WebLinkAbout1967-01-31; City Council; Minutes0
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; Minutes of: CITY COUNCIL (Adjourned Meeting) i '\ '\ ' \ ', '\ ',
4 Time of Meeting: 7:30 P. M. i Place of LVeeting: Council Chambers
i ROLL, CALL was answered by Councilmen Worthing,
I Neiswender, ALikinson, Dunne and Jardine. Also present i i were City Manager Mamaux, City Attorney Wilson and i
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; Date of Meeting: January 31, 1967 . I : pizme ., *: # : of '\3
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\ City Clerk Adams. 6 1
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I b i The Mayor announced the purpose of this meeting was to i i ; discuss various phases of the Capital Improvement Pro- i
I gram submitted by the City Manager. 1 4
i The City Manager informed the Council Mr. Richard ; Bartie of Bartie Wells Associates, was present this i ever,ing to discuss the Draft of the Financial Report of : ; the city's water system. This Financial Report fs based i
! on the Water System Engineering Report submitted by I ; Wayne Lill and Jack Kubota in January, 1966. 1 I
: MR. RICHARD BARTLE was introduced aad stated the i i purpose of the Draft submitted was to have the Council t t discuss various areas. They based their study on the i i Engineering Report prepared by Wayne Lill and Jack L I : Kubota. The Engineering Report listed existing system i g deficiencies and other needs in the system into 1975. Ap-: I proximately $1,188, 600. 00 improvements are needed I imrr,ediately, with $682, 900. 00 additional improvements ; ; by 1975, Their firm then looked at the resour.ces avail- i i able in the Water Department. I I
I I There is a two-part water charge (a) Meter charge; and. I : (b) Quantity charge. These rates have stayed substan- i
: in 1958. The city has done a remarkable job in holding i
; the rates down all these years. Several of the cost ele- i : ments have increased. The largest water element of i i cost is the transportation and importation of water. The :
. I Carlsbad Municipal Water District has been increasing i ! their rates to the city since 1960 and will continue to I I : increase the rate at approximately $3. 00 per acre-foot i i per year. 70% of the meters in existence are the 5(8" :
i meter. 85% are 5/8" and 3/4" meters, As to the revenuf i ,obtained, approximately 317~ of the revenue is the meter 1 : charge. 69 to 70 percent is obtained from the quantity i I charge. They did not include the revenue from North :
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i I tially the same since the city took over the water system ;
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Carlsbad users as it was their understanding that this
is likely to be so Id to Oceanside.
The variom rnexh~ds of financing these improvements
were outlined by Mr. Bartle. The city is limited in financing due to the existing revenue bonds. There are
long as they comply with the original requirements of
the resolutions. Xet revenues must meet 1, 35 coverage for existing and proposed new revenue bonds. 75% of
any estimated revenues may be used in the formula to
qualify issuance of additional revenue bonds. To comply with this requirement water sale income must be in-
creased 37% of the adjusted 1965-66 total.
General Obligation bonds may be used to finance water
syste-m improvements. These bonds are secured by the full faith and credit of the city. As of November 2,
1966, the city's direct konded indebtedness is 6. 29% of
the 1966-67 assessed valuation. Under the law the city is allowed i5% of the assessed valuation, therefore, approximately $3, 300, 000. 00 additional bonds can be
sold. However, there are two problerns involved. (1)
General Obligations bonds must be approved by two-
thirds majority vote, while revenue bonds only require
a majority vote; and (2) Due to other obligations of the
city as set forth in the Capital.1mprovement Program
submitted by the City Manager, most of which are not
two bonds in existence, Other bonds can be required as
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I 1 I ! revenue producing, "hey reconmend that the city take a S 1
0 i long look at other means of financing. 1
i In conclusion Mr. Bartle outlined the foliowing:
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I 1. The city has the ability to issue additional i
2. It will be necessary to acquire additional 1
I 3. The city should take a long look at, other I i Capital Improvement Obligations before considering t ; General Obligation bonds.
i revenue bonds.
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< 4. If the revenue were increased 40% an initial i i revenue bond issue of $1, 500, 000.00 would be permitted ; ; and $520, 000. 00 of additional bonds could be sold as soon: i as increased revenues were reflected in a fiscal year I : audit statement. This would indicate an annual surplus i i of $93, GOO. 00. I'
i of 1. 56 after $1, 500, 000. 00 bonds were sold, providing i I : a safety factor to protect against any unexpected future ; ; decline in needed revenues. I
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4 L. I 5. A 40% increase wodd produce net coverage ; 3
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6. Meter charges should be higher than the i I present 3170.
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i 7. The proposed new rate schedule would in- : I : crease meter charges by 75% and all water by 5 cents i ! per 100 cubic feet.
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I 8. A typical Carlsbad user pays about $61. 40 : i per year under present rates and with the increase would i i pay $86.25.
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I 9. The present improvement proposal should f I 'be treated as a comprehensive program to be voted on ! i at one time and the construckion over a period of years. i
i If revenue bonds are used authorization should be for i i $2,500, 000, The bonds should then be sold as needed. :
i If general obligation bonds.are used the principal amount i i can be smaller and $2, 350, 000. 00 is suggested. I
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1 1 I i In closing Mr. Bartie asked if the Council members had 1 :
I any questions they wished answered?
I I : Cmn. Jardine asked if by increasing the water rates 1 I : would this affect the voter in voting affirmative?' 1 l
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I t ; Mr. Eartle stated he did not know the voters in this area;; 0
1 not had an increase since'the city took over 'he oper- : i however , you must point out to the voters that they have i
: ation.
i Cmn. Dunne inquired as to whether a 40% increase was i
; a fair increase from 1958 to 1967?
i Mr. Sartle informed the Council this would probably I
! figure out as a 5y0 increase per year. This increase is i
; certainly in line with the service supplied.
i Cmn. Worthing pointed out the report indicated a 30% I
I increase in the cost to the city of purchasing water,
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I I I 1 Mr. Bartle indicated he would try a-a2 prepare a.more i i detailed statement. as to comparztive rates, and Cmn. I : Worthing stated he felt it would be well to add any tax i 1 rates that are included in the comparative statement. a
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b ; Cmn. Sardine asked if the report as submitted could be { i briefed for the general public to understand? 0
t Mr. Bartle stated he felt the report could be simplified i
f for the voter. t
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I I : Crnn. Dunne stated this report ties in with the Engineer- I
f ing Report showing the needs for the system. I
i The' Council complimented. Mr. Bartle on the report, and i : Mr. Bartle stated he would like to compli-ment the City i i Manager, the staff and all the other agencies and person- ; : ne1 who helped in the preparation of the report. 1
i The City Manager inquired of Mr. Bartle as to when the I i city could expect the final report?
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I : Mr. Bartle stated'he would like to have the Council I' : digest the draft for another week. In the meantime he : i would try to do more research, and anticipated the report:
f would be ready by February 28, 1967. Re requested that i i if any of the Council members had any questions that they: : relate them to the City Manager. 4
; Engineering Report: L I
: The City Manager informed the Council Mr. Lill and 1 I i Mr. Kubota were present this evening and perhaps they I : would like to have them point out the immediate needs i i or critical items. I
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1 I f I MR. WAYNE LiLL informed the Council their report listed several needed improvements. The most impor- !
tant is storage. The report indicates three reservoirs - ;
Ellery, Elm Avenue and Skyline. The next is redefining I the pressure zones. At present there are.7 and this % I could be reduced to 3. The Ellery Reservoir is needed i immediately, which would give a storage of 3 million ;
gallons. They have recommended that the Elm Avenue : and Skyline Feeders each have a storage capacity of 1 l/2 I
million gallons; making a total of 6 million gallons, I t
! i : Three diagrams were presented, indicating the present i i system, the propos,ed syste-m and the area covered by : I : the C. M. W. D. I 1
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1 Mr. Lill pointed out the city's system and the C. M. W. D. 1 system are separate systems, but they have to mesh I
together. Further, the city has some valuable water i I rights in the San Luis Rey Valley. This water can be ; I
transported if the quality is improved and the quantity is / i
increased.
MR. SACK KUBOTA informed the Councg the purpose of i
the improvements is to modernize the system. The aim i
of the 3 pressure zones is to provide 60 to 100 T. S. I. I
They have also proposed Telemetrying, which would 1 J continually meter 'he entire system. I
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I a 1 t i j ! Mr. Lill 2.d MY. Kubota VJere requested to be present i i at tlne regular meeting of February 21, 1967 to discuss i : their report further.
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1 I : Capital Improvement Program Schedule and Chart. The : ' * "i
i XEijEFFtXed he felt thescheduiiYnTchart preKnted by i : the City Manager was very good. q t I > 1 1 Cmn. Dunne stated he would like to recommend that only I : one member of the Council be appointed to the Public i i Safety Committee instead of tw'o as indicated on the chart.:
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1 i Cmn. Worthing stated he highly recommended that citizen$ 2 : be appointed to these committees, and suggested that , ; i these committees be set up now.
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b 4 I I 1 Mayor Atkinson stated he would appoint two members of i
1 the Council at the regular meeting scheduled for Febru- i i ary 7, 1967.
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1 I Y I i By proper motion the meeting was adjourned at 9:42 P. M.!
i Respectfully submitted,
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i-/@&.+& F @& i MAR&ET E. ADAMS : City erk
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