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HomeMy WebLinkAbout1971-04-07; Municipal Water District; MinutesMINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT HELD ON APRIL 7, 1971, AT 2:OO P.M., AT 5780 EL CAMINO REAL, CARLSBAD, CALIFORNIA: President Maerkle called the meeting to order at 2:OO P.M. with Directors Carmichael , and Mac Leod answering roll call. Director Palmer arrived at 2:03 P.M. Director Kelly was absent. Also present were General Manager Kubota, Legal Counsel Swirsky, Public Relations Consultant Randall Mitchell (2:25 P.M.), Superintendent Henley and Executive Secretary. Mr. Win Priday, Public Works Director for the City of Carlsbad, was also present after 2:05 P.M. Approval of After discussion, upon motion of Director Carmichael , seconded by Minutes Director Mac Leod, and unanimously carried, the minutes of the regu- I lar meeting of March 17, 1971, were approved as written. Committee Reports : City of The Manager reported that he and James Gaiser, District Auditor, had met Carlsbad with City Finance Director Thelma Sowel 1 and Public Works Director Win turned in on the operational study. At that time, they also received all of the in- formation that was included in the Committee's original request, except for the final figures on the stock inventory. The District's Committee members will now get to- gether and prepare a draft of a proposed agreement, based'on these features, which wi 11 be submitted to the Board at the next meeting for approval and will then go to a scheduled meeting of the Committee on April 29, 1971. It was a1 so reported that a call was received from Editor Gary Mortenson that he wanted to be apprised of the study. He was given a summary status on the Committee's work, but in accordance with the ground rules of the Committee, no detailed release was made. Priday and went over in detail all of the material that the City had I Director Carmichael reported on his attendance at the City Council meeting of April 6, 1971, and reviewed the agenda items and action taken at that meeting. Mr. Win Priday reported on City of Carlsbad matters as follows: (1) Final figures on the City Water Department's stock inventory have been compiled and the total in- ventory figure will run about $130,000. (2) Action has been taken by the City to hold over the Jefferson Street project so that the funds can be applied to the Vista Way Overpass. Both Cities have passed resolutions requesting the State Highway De- partment to give priority to this project. (3) Steps are being taken by the City of Carlsbad to modify the Water Service Agreement on the Rancho Line connection to include the Bank of America building and Standard Service Station now under construc tion on the east side of El Camino Real at Marron Road. - I n-Li ne Val ye The Manager reported a request by the City of Carl sbad for District El Camino Real installation of an 18" plug valve just beyond the Laguna Riviera tion would a1 1 ow them to isolate the downstream zone from the Chestnut meter during certain phases of construction on their HUD project and also permit the District to service all of the City area off the "B" Reservoir by routing the water back through Kel ly Drive and around the 1 agoon area to Park Drive , thus giving them that addi - tional emergency storage. If the District is willing to use the 18" plug valve that was salvaged from the Cal avera Vault, the City has indicated it would pay for a1 1 material and labor to put this in. It is estimated that it will cost approximately $3,000 for material and labor in addition to the valve. The Manager pointed out that the District's master planning includes moving the Chestnut Avenue Metering Station back to this point, so this install ation has been designed so that a meter can be dropped in there in the future. After discussion, the Board agreed to participate with the City on this basis and the Manager was authorized to proceed with the projec Public Relations Mr. Mitchell reported that the weekend trip and tour of the Metro away with a better understanding of the water operation. President Maerkle suggested Vault on the main transmission line into the City. This installa- I politan District facilities was most enjoyable and that he came that the District look into scheduling a trip of our own so that other staff members and City officials could make this tour. The Carlsbad Journal did use one picture on the trip and there is a possibility they will be using the others in later re- leases, Mr. Mitchell reported. Publicity arrangements for the Water Agencies Assn. meeting were also discussed. Carl sbad Chamber Director Carmichael reported on his attendance at the regular of Commerce meeting of the Carlsbad Chamber of Commerce. I Legal Counsel : North Carlsbad Legal Counsel reported that he did have a conference with Mr. Smitl. De tachmen t the Interim Attorney for the City of Oceanside, regarding the Nortl try to get some legislation introduced on this North Carlsbad matter but the District part in the proceedings has been completed and no further action is required. With regard to the issue pending as to whether the meetings of the Ci ty-District Corn- mittee were legally permissible, Legal Counsel reported that the matter has now been resolved and the City Attorney has concurred with the District that these meetings are not in violation of the Brown Act. Squires Dam Legal Counsel presented copies of the draft of the Option Agree- Dawson Property ment covering the purchase of the Dawson property and paraphrasec Option Agreement the provisions and special conditions, as previously discussed and agreed upon by the Board. After discussion, he informed the Board that Mr, Tellum is on vacation so one of his colleagues, Mr. Overton, is work- ing on the agreements and he has tal ked to Mrs. Dawson about the draft. There were only four points in the document that she raised any question about. The points of disagreement are: (1) She would like to stay at the 8% interest rate, rather than the 7% rate quoted in the agreement. (2) Although she was aware of the two methods of purchase, either cash or installment method, she has now indicated she really would prefer the installment method since by utilizing this she could use the land sale as long term gains for tax purposes. (3) Another thing she brought up was the matter of an easement on the easterly boundary of the proposed addition which she claims she has given to the University of California from the high road to the bound- ary of the University property. Our Title report does not show this easement. Mrs. Dawson would like the District to agree to grade and survey the easement on the east- erly boundary going to the University on her property (this is not on the site) , and wants that added to the Agreement. (4) On Page 4, Paragraph 8D, she would 1 i ke to change the designation from westerly to westerly and north westerly. After further discussion, Legal Counsel recommended that the District give in on the 8% interest and go along with the other changes requested by Mrs. Dawson. It was his position that the easement right for the Tri-City Pipeline would offset the addition- a? costs for these changes. Upon motion of Director Carmichael, seconded by Director Palmer, and unanimously carried, it was moved that the draft of the option agreement on the Squires Dam addition be accepted, as out1 ined by Legal Counsel, with the au- thorization for the 8% interest rate and other changes requested by Mrs. Dawson. Le- gal Counsel informed the Board that he nil1 be leaving on vacation next Tuesday and would like to wrap this matter up before he leaves. He proposed that the District deliver the option consideration and have the agreement signed the first of the week, if it can be accomplished by that time. After discussion, upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, it was moved that the Secretary and President be authorized to sign the Option Agreement on the Squires Dan site, as amended, on behalf of the District and that the payment of the option con- sideration in the amount of $16,000 be authorized. Legal Counsel noted that the Dis- tri ct should plan to take steps to annex this property to the District prior to the time it exercises the option so that any outstanding taxes on the property can be cancel 1 ed; Superintendent Is Report: The Superintendent reported that the District is continuing to keep a close check on its pipelines during the highway construction on El Cami no Real . While extending the valve cans out at Line “E”, just north of the Headquarters site , it was found that the 2” by-pass was ’leaking and had been leaking for some time. After digging Carlsbad Detachment. He indicated that they are going ahead and I I Meeting Apri 1 7, 1971 -2- it out Friday evening, it was shut off and the crew went back in on Monday and cut out a 36'' section and replaced it and got it back in service today. The crew has been busy with the regular maintenance work and there are about 3 or 4 meter in- stallations pending at this time, he reported. District delivery is running 14 cfs and there has been two more second feet on order for several days, but the Authori- ty is running at capacity right now and no additional water is available. The lake elevation level at Squires Dam was reported at 502.5. The Superintendent reported that a new employee has been hired for the field crew, Andy Anson, and he started work with the District on Thursday, March 25. He ex- plained that he came to the District with no previous water experience but he-seems to be working out well. Accounting Officer: Water sales comparisons for the City of Carlsbad and I.D. No. 2 and I.D. No. 3 were reported by Mrs. Simpson, showing an increase of 1,048 acre feet thru February, 1971 over the same period for the past fiscal year. City sales showed an increase of 541 acre feet, with the remainder retailed within the two Improvement Districts. I Financial presented attention at $5,000 Statements covering the Eight Months Period ending February 28, 1971, were by the Accounting Officer and reviewed by the Board. The Manager called to the budget allocation for the repair and maintenance of pipelines listec . He explained that the District has accumulated considerable expenses in connection with the work around Calavera Cut and the Superintendent's latest estimate on costs on that section is running around $3,000 3 and he wanted the Board to be a- ware that there will be an overrun on that i tem. General Manager's Report: El Camino Real The Manager reported that most of the costs are now in on the dis- Highway Project ruption of service by the Highway Contractor, Suket-Coulson co., and it appears that it will run well under $1,000. The District's costs have been itemized at about $250.00, charges submitted by the City of Carl sbad total $274.00, and Mr. Priday indicated that the Fire Department will be submitting their charges of $74.00. As soon as a1 1 the costs are in, a claim will be prepared by the District and submitted to the Contractor. .El Camino Real The Manager reported that the District Contractor is close to Pipeline Project finishing the project except for items at Madonna Hill. As far Contractor has been granted two 90-day extensions, the second of which expires on Apri 1 17, 1971. Because of where we are now on the project, he recommended granting the Contractor another 30 day extension, effective April 17, 1971. After discussion upon motion of Director Carmichael, seconded by Director Palmer, and unanimously car. ried, it was moved that the Don Hubbard Contracting Company be granted a 30 day ex- tension on the contract time for the El Camino Real Pipel ine Project. The Manager presented for approval, Progress Payment No. 10, covering work completed during the month of March, 1971, and listing gross earnings of $176,092, less reten- tion and previous payments, for a net amount due of $275.00. After discussion, upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, the Board approved payment of Progress Payment No. 10, in the amount of $275.00, to the Don Hubbard Contracting Company. An invoice in the amount of $1,639.90, for extra work under the contract Change Order No. 2 involving taking up the old pipe, was presented by the Manager for approval. After discussion, upon motion of Director Mac Leod, seconded by Director Palmer, and unanimously carried, payment was approved to the Don Hubbard Contracting Company in the amount of $1,639.90 for work performed under Change Order No. 2. I as the completion time, the Manager advised the Board that the I The this and following invoices covering additional work as required b the Superintendent on Contract were presented by the Manager: (1) 236.13; (2j 312.80; (3) $152.09; (4) $74.75. After discussion, upon motion of Director Palmer, seconded by Di- rector Carmichael, and unanimously carried, the invoices, as listed, in the total amount of $775.77 3 for extra work and maintenance work on the El Cami no Real Project, were approved for payment. Meeting April 7, 1971 -3- The Manager reported that a cost summary which has been drawn up on the project shows that the project originally budgeted out at $225,000, it was bid out at $220,000, anc the expenditures through February indicate a total of $222,628 has been expended. HE informed the Board that it now 1 ooks 1 i ke the District is developing an over-run on this project which could possibly run about $5,000 to $6,000 above the original esti- mate. From the standpoint of the District's ability to finance the project, he as- sured the Board this can be handled with the excess funds on the reimbursement from the County and the income from water sales in excess of our anticipated revenue. I In connection with the Highway Project, the Manager brought up the matter of install< tion of the curb and gutters and driveway for the Headquarters site which was budget6 for the highway widening. The Board agreed that this work should be taken care of sc that it will be completed when the road work progresses to this point. Tri -Ci ty The Manager reported that a meeting on the Tri -Ci ty Pipe1 ine was he1 d la: Pipeline Friday and each agency will make a draft of their report for review at tt Project next scheduled meeting of April 30, 1971. He pointed out that it now ap- pears that Mrs. Dawson and Russ Thibado are reluctant to get involved in this project with annexing their lands because of the tax burden, and this will chan! VID's interest in the project. There is also considerable development underway in tl area of Oceanside in and around the Calavera Lake section, recently purchased by the Teachers Investment Group, which will increase Oceanside's need for water from the pi pel i ne project. I Squi res Dam The Manager reviewed a report from the FUGRO Corporation with Piezometer System their conclusions and recommendations on the piezometer system prior to the meeting. After analyti ng the report and the condition of the sys tem, it was decided that the Manager will submit the report to the State and let them knob what our consultant recommends to us. The firm also included a proposal on annual maintenance service and reporting to the State on a total annual fee basis of $575.0( After discussion , upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, it was moved that the District accept the report submitted by the FUGRO Corporation and follow the recommendations on the maintenance of the pie- zometer sys tem. The Manager presented an invoice from the FUGRO Corporation covering their services and preparation of the report. Pursuant to the schedule of fees,, the total invoice costs listed $1,642.01, with the fee adjusted under the contract for a maximum chargt of $1,100. After discussion, upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, the Board approved payment to the FUGRO Corpora- tion in the amount of $9,100.00 for the maximum fee. After the Manager has taken this report to the State, with their concurrence, he will come back to the Board for specific authorization on the annual maintenance service for the next calendar year. at Squires Dam, copies of which were submitted to Board Members I La Costa Subdi vi si ons : La Costa Village The Manager reported that La Costa Vi 11 age wi 17 be requesting Subdi vi si on a release on the first Plaza on their Subdivision shortly. District accepts the Subdivision, these meters will be set. Other Matters: The City of Carlsbad has completed and has approved the complete water system plans for their large improvement project, the Manager informed the Board. The District has the plans now and we are now looking at the various connections that are in- volved. The City is now processing the project through HUD and hope to go out to bid soon. La Costa Reservoir A sketch of the La Costa Reservoir site and the SDG&E Co. Landscaping Program Batiquitos Substation was drawn on the blackboard by the was originally going to be fil led in and landscaped. The Gas Company has since cut back their funds for the project and it has been suggested at a staff level that the canyon area could be turned over to the Di stri ct if the District would pay for the installation of the 54" storm drain and fill in the canyon, and it could They have already appl ied for two meters and as soon as the Manager showing the canyon area between the two sites which Meeting April 7, 1971 -4- then be used as a potential tank site in the future. As a service to them, the District could also a1 low them to bui7 d their road across our 1 ower zone and this would also save money on the drain as it would cut down the total footage required. After discussion, the Board agreed that this matter would merit consideration and the Manager was authorized to look into it further. The Manager pointed out that it is planned to coordinate the landscaping program with their site and to have uni- form planting around the entire area. The Manager will keep the Board apprised on this matter and wi 11 have a formal 1 andscapi ng plan prepared. Wi th regard to the antitrust suit involving the meter manufacturers, the Manager informed the Board that he had contacted the lawyer in San Francisco and he agreed for what we have in meters did not justify participation in the suit. The deadline for filing was Apri 1 1, 1971, and under the circumstances, the District 1 et it pass. Announcement has been received from the San Diego County Water Authority that the Auld Val ley Fi7 tration Plant is scheduled for completion in December, 1973 and is being bui 1 t for capacity of 75 MGD, designed for expansion to 150 MGD, and has a long range potential of 225 MGD. Information has come from the Metropolitan Water District regarding certification of water for agricultural uses and reimbursement to the consumer on the agricultural re. bate received. The Manager explained that the District’s water rate is structured so that our agricultural users get the rate at less than that for all of the domes- tic rate and could be interpreted as reimbursement to the user. Water Statement The Manager reviewed the Water Statement Status report as of Status April 2, 1971, 1 isting outstanding accounts of $499.68. Water Statistics The Manager reported total water production figures for the or about 7%. The photographs taken for the 15th Anniversary Brochure are being correlated by the Manager and will be displayed in the Board Room. Correspondence and Announcements: (1) Announcement of Water Agency Association meeting scheduled for April 30, at I month at 604 acre feet, with an apparent loss of 44.2 acre feet, I the Twin Inns. The Manager will take care of reservations for the Board Mem- bers and staff attendance and working press members. reviewed by the San Di ego County Planning Commission on Wednesday, Apri 1 21, 1971. The Manager will plan to attend. (2) Notice that private development plans for the La Costa Land Company wi 11 be (3) Annual Report from the Rainbow Municipal Water District. (4) Brochures from the firm of Whi tman, Atkinson and Associates , offering their engineering services to the District. Purchase Orders: (1) Authorization was requested by the Manager for the attendance of Superintendent Henley at the Western States Corrosion Seminar, May 4, 5, 6, 1971, in Pomona. Upon motion of Director Palmer, seconded by Director Carmi chael , and unanimously carried, the Board approved this request and authorized the fee of $70.00 be forwarded for the reservation. (2) The Manager reported that the District has been offered a proposal to buy a set of mobile radio equipment for our Operations Center from the Don Hubbard Contracting Go. The North County Communication Service has looked the equipment over and has given us an indication of the costs of puttin these units into service. The equip- ment has been offered at a lump sum price of 9 600.00 and would provide a base statior and two mobile units. An additional requirement would be a $16.00 monthly charge fol the telephone line. After discussion, upon motion of Director Carmichael, seconded by Director Palmer, and unanimously carried, the Board authorized the purchase of this mobile radio equipment from the Don Hubbard Contracting Company for the lump sur of $600.00. Accounts Payable: Upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously car- ried, the Board approved payment to Time DC Freight Lines, as assigned to Transport I Meeting April 7, 1971 -5- I” Claims, in the amount of $768.00, for freight charges on the steel wire for the Santa Fe Tank. The Manager presented the invoice from his office covering serv- ices performed during the month of March, 1971, 1 isting $881.00 for the General Manager's office, $679.00 for Engineering projects, and $88.00 for the El Camino Real Project, for a total invoice amount payable of $1,648.00. Upom motion of Director Carmichael, seconded by Director Palmer, and unanimously carried, the Board approved payment to Jack Y. Kubota in the amount of $1,648.00. Ratification Upon motion of Director Palmer, seconded by Director Mac Leod, of Checks and unanimously carried, the Board ratified Checks No. 5378 thru 18, 1971 thru Apri 1 7, 1971. City of Mr. Priday relayed a request by the City Manager that the City be pro- Carlsbad vided the same information from the District as was obtained from the would be made available to the City. There being no further business to come before the 6oard at this time, the meeting was declared adjourned at 5:06 P.M. I No. 5405, in the amount of $4,891.91, covering the period March City for the current study. The Board agreed that this information ATTEST : I I Meeting .. April 7, 1971 -6-