HomeMy WebLinkAbout1955-03-15; Municipal Water District; Minutes" _. .
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the District ought to run a line along the whole length of
Camino Real, possibly as far as North Carlsbad, Elscussion
followed.
There being no further business to come before the Board,
on motion by Director Ingels, properly seconded, the meeting was
adjourned at 3:48 P. M.
L
K MINUTES OF THE REGULAR MEETING of the BOAFiD OF DIRECTORS of the CAFiLSBAD h4UTUAL WATER COMPANY
The regular meeting of the Board of Directors of Regular Meetinq the Carlsbad Mutual Water Company was held in the office lAarch l5
1955 of the Company in the City of Carlsbad, County o€ San Diego
State of California on Tuesday, March 15, 1955, at 1:OO P.M.
E. G. I-Iagen C. H. Ingels R. €I. Robinson W. MI. Rogers
+ C. A, Anthony
Directors Present
Also present were C. E. Trygg, Secretary, T. Bruce Smith, Attorney,
reporters from Carlsbad -Journal, Oceanside Blade-Tribune and San
Diego Union, and Maribee Balcom, stenographer.
President Hagen called the meeting to order at 1:07 Minutes
P. M. and stated that if there were no corrections or changes,
the minutes of the Regular Meeting of February 15, 1955, would
stand approved as written, Director Rogers asked that the word
trOrderedll under Winutes" be changed to ltrequestedli so that the
sentence would read "Director Rogers requested that * * * *"
The President then stated that if the minutes as so changed were
acceptable, they would stand approved. Hearing no objections,
they were approved.
3 Q y
Invoices Director Ingels moved, seconded by Director Robinson
and carried unanimously:
55-7-32 BE IT ORDERED that the Invoices for February in the sum of $17,191.78 be approved.
Financial Director Robinson moved, seconded by Director Anthony Report and carried unanimously:
55-33 BE IT ORDERED that the Financial.Report for the month of January be approved.
Director Anthony moved, seconded by Director Ingels
and carried unanimously:
55-34 BE IT ORDERED that the Financial Report €or the month of February be approved.
Calavera There was some discussion of Calavera Lake and of our Lake effort to have 400 acre feet of water stored there by
April 1st.
Stock The following stock transactions which included Transfers Affidavits of Lost Certificate were appmved by the
.. Board:
Advent Issuance of new certificate for 0.540 share to Advent Christian Christian Conference of Southern California to replace Conference lost certificate ^o€ "the same "number.
Coe to Transfer of lost Certificate #7265 for 1.000 share in Dindinger the names cf Richard R and Marguerette I. Coe to William R and Vivian I. Dindinger.
There followGd a discussion by the Directors of
Lot 16 in St. Malo Beach where Hugh W. Darling wishes to build a
house. This lot was not included in the annexation to Oceanside.
Mr. Darling wishes to'make 0.200 shares appurtenant to this lot.
Union Title Director Rogers moved, seconded *by Director Robinson to Darling and carried unanimously:
55-25 BE IT ORDERED that the Directors of the Carlsbad
Mutual Water Company hereby approve of the assign- ing of unassigned water stock to Lot 16 in St. Malo Beach; and
370
BE IT FURTHER ORDERED that the Manager is hereby directed and instructed to issue certificate for 0.200 share to.be made appurtenant to said Lot 16 in St. Malo Beach.
Correspondence:
Letter from City of Oceanside reporting that the Oceanside level of the Test Well f13E was 27.58,
Letter from the Fallbrook Public L'tility District Fallbrook stating that there was no diversion from the San Luis Rey River in Fe-bruary, 1955
Letter from State of California, Division of Water Division of Resources regarding our Water Application W12808 V?ater for the proposed d-am-at Bonsall. Resources
Director Robinson moved, seconded by Director Rogers
and carried unanimously:
BE IT ORDERED that the Company request a six 55-36 months' extension of time on this application.
Letter from heather Modification Corporation re- Weather gardicng the storm of February 26th and 27th. Mod. Corp .
Letter from San Diego County Water Authority , San Diego askdng for our anticipated requikements of County Water Colorado River .water for the next three years, Authority July, 1955 through June, 1958,
Letter from T. Bruce Smith in regard to changes T. Bruce in the By-Laws of the Corporation. Smith
htr. Smi-th read his own letter to the Board. The Manager
stated that no stock transfers covered by these changes of February
15, 1955, had come up during the period, Director Rogers moved,
qeconded by Director Robinson and carried unanimously:
BE IT ORDERED that the matter of the changes 55-37 in the By Laws of the Corporation be carried forward until the next meeting.
- Three laboratory reports of Dr. Carl Wilson were Laboratory presented to the Board, Reports
Letter from Carlsbad Municipal Water District Oceanside regarding the use of average readings between Water Oceanside and Carlsbad meters. Meter Letters from San Diego County Water Authority regarding Oceanside meter. Report by Mr. Trygg regarding recent differences in meter readings.
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The Manager also presented some samples from the five gallons of
foreign matter which was removed from the Oceanside water. meter
after it started to register high. Director Rogers moved,
seconded by Director lngels and carried unanimously:
55-38 BE IT ORDERED that the Manager is hereby directed and instructed to forward copy of his report on the Oceanside meter to the Carlsbad Municipal Water District asking them to take care of the matter,
Director Robinson stated that 'on the basis of the, facts, it would
indicate that there must have -been some' faulty reading in the
past and we would like to know whether they would be interested
in some sort of an adjustment.
The Manager inquired whe,ther .for, March we should use
the Carlsbad meter reading instead of Oceanside's, and Director
Rogers replied that we would have to wait until the Municipal
could take care of the matter,. ..
Browning The .President read Mr. Browning's letter of trans.- Report mittal of his report, Director Rogers said he had
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quite a few comments on Mr. Browning's report and
presented a written-list which the Board discussed at leng-bh.
Director Robinson stated that we should have a talk
with Mr. Browning. He said-that if we start refuting Mr.Browning's
report, the 1nsurance.Company may ask us to pay for another report.
We should try to .get':Mr.. Browning to come here and have a ,meeting
with the Board as soon as possible, . -.
The Manage-r was instructed to write a letter to Mr.
Browning asking him whether ,he could come to,Carlsbad to.meet with
the Directors,
The Manager then inquired what the status of Mr.
Browning's report is, and whether it is to be made public,
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Director Rogers said that he does not think a newspaper is
entitled to see a report, go through it and pick out what they wish
to comment upon.
Director Robinson said he thinks the shareholders are entitled
to read- the report, but he can see no reason for releasing it to
the newspapers. It seems ridiculous to him to put it out until
it has been straightened out with Mr. Bkowning.
Director Rogers said that it would be legitimate for the papers
to say that this report was discussed and that several points are
not clear, The Board voted to have a conference with Mr. Browning
to go over the report and try to reconcile the facts,
Director Robinson moved, seconded by Director Ingels and carkied
unanimously:
BE IT ORDERED that the Manager is hereby 55-39 directed and instructed to withhold the release of the Browning report until such time as the Board of Directors have had the opportunity to discuss the report with Mr. Browning.
The Manager read a letter from the Carlsbad Municipal Oceanside Contract Water District asking whether the Mutual desires the Renewal
District to begin negatiations with Oceanside looking to a
renewal of the contract for delivery of Colorado River water. Mr.
Robinson moved, seconded by Mr. Anthony and carried unanimously:
BE IT ORDERED that the Municipal be requested to 55-40 start negotiations with Oceanside for the renewal of the contrack for delivery of Colorado River water,
Director Robinson said that this contract should be lengthened out
so that it will not be necessary to take it up every year, Director
Rogers then read an excerpt from the contract now in effect with
Oceanside limiting the time to one year after its expiration.
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Director Robinson moved, seconded by Director Anthony and
carried unanimously:
yJ-6qip BE IT ORDERED that the President, the Attorney
and the Manager discuss renewal of the contract with Oceanside with the Municipal prior to the time they start negotiations, discussion to include changes we feel should be incorporated in the new contract or any permanent terms we want, to start off primarily with a guaranteed minimum daily flow and the length of time of the contract,
Municipal Letter dated February 26, 1955 was presented from Proposed Lease-Pur- the Municipal Water District regarding leasing of chase of Nutual . the Mutual properties with the privilege of purchase,
There was a general discussion of the proposal by
the Directors, President Hagen stated that there appears to
be a definite problem in serving water to the area, Inasmuch
as the Carlsbad Mutual is now the larg,est distributing agency
within the area, it appears to be to the best interests of the
Carlsbad Mutual and its shareholders that the Mutual take steps
to get the facts conc'erning the problem and its possible
solutions, Inasmuch as there are several solutions to the
problem, it would be advisable for the Municipal Water District,
the City of Carlsbad and the Terramar Water Company to be
represented in this study.
Attorney Smith said that he endorses the suggestion
of a Committee to study the problem, He suggested that we
get some outsiders in, and get the alternatives recommended
by them so that we may act intelligently.
The Manager reported on two places which were
formerly Mutuals and are now operating as Public Utilities,-
Azusa and Duarte, It appears that they are operating satis-
factorily and meeting problems of water supply, Their Managers
”. -. .
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are willing to come to Carlsbad and discuss their managemect
with the Directorscor with a group of citizens.
The President then appointed the following Committee
for the purpose of studying the water distribution problem,
with instructions to the Manager to write invitations to the
Municipal, the City of Caslsbad and the Terramar Wgter Company
to join in the discussions:
Director- Robinson Director Anthony
* Director Ingels
Committee to study distribution
Mr. Trygg reported that a meeting had been held Meeting with Pacific with the Pacific Mutual, with Attorney Eberhard and Mutual
Attorney T. Bruce Smith present, as weil as the Manager.
At that meeting, they talked a few things over. It was suggested
that the whole Board go up there and ciiscuss the matter with the
insurance company after receipt of a letter from Attorney Eberhard
reporting on the meeting.
Director Robinson said he thinks that before the Board
gets together with the Pacific Mutual, they should talk with
Mr. Browning.
Attorney Smith then said thiat the insurance company
wanted further time to go through the report. Mr. Bob Houston who
is one of the principals had been away and had not seen the report
itself. Mr. Harper had some questions and cert6in misgivings about
the matter. This is not a matter of record, but if Attorney Smith
could read between the lines, they were certainly not very en-
thused about the situation unless the Company made some improvements.
They felt that we should help ourselves first. Mr. Smith questions
the wisdom of proceeding with the loan in a very aggressive manner
until the matter of the Municipal leasing the Company has been
oqy 30 d
decided, Also the question as to Metropolitan water - where is
it going to come from, what is it going to cost, etc, He thinks
we should make up our minds first what we want to do; whether we
will become a further extended Mutual or go into the Municipal.
or what we are going to do.
Mr. Smith further stated that at Pacific Mutual,
they do not like too well to finance Mutuals. There are three
methods of operation of a water agency. In the governmental
agency, you have no income taxes or property taxes. A Mutual
pays property taxes but no income taxes. A public utility pays
both property taxes and income taxes, But you must consider
the other factors involved, We have been facing a financing
problem, The utility has the best mechanism for financing, the
Mutual has a little less liberal method and the Municipal or
governmental agency has the least liberal,
Assessment Letter was read from Ray C. Eberhard concerning No. 48 the assessment, and stating that the Company legally
must collect a penalty of 5% on the assessment
after March 18th. The Manager was directed to collect penalty
after the 18th of March.
Board of Report of the Board of Fire Underwriters was Fire Under- writers received and discussed.
Vista The Manager reported that he was investigating the Irrigation District prospect of getting water from the Vista Irrigation
District for our Lake. There are two pipe lines
within 1,000 feet of Calavera and they are on easements owned
by the Vista Irrigation District. The pipelines were used to
build our dam,
Company The Manager reported that the new piplines on Operation Maple and on Ocean had been installed, and that
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Adams i.s being completed. We are waiting for the City to enable
us to start on Elm, Pipe Linings, Inc, will start to work about
April 1st on Highland Drive,
Mr, Trygg said that he had talked with Mr. San Luis Rey Adjudication Eberhard about the suit and lulr, Eberhard said that Oceanside
was all in harmony with the matter of the adjudication, except
that they want to include Henshaw. The only cost to us will be
Mr. Eberhard's fees until the study is completed. The money is
to be paid afterward, Mr. Eberhard does not anticipate any expendi-
tures this year, Direqtqr Rogers said -there is some question in
his mind as.tq whether the Company should be spending $12,000 on .
this adjudication.under pxesent conditions. He would like to have-
some more details on it. The Manager said that Mr, Eberhard will .
be in Carlsbad in a month or so; he is now in Sacramento.
Director Rogers said that he feels we should . .Company Operation, hold the expenditures-to an absolute minimum unless there is Cont.
something that has to be done, until we get.the loan ironed out.
Director Robinson agreed that we should operate at a minimum, but
we cannot let the crews go and then call them back a week or so
later to do a job. Director Robinson moved, seconded by Director
Anthony and carri-ed unanimously:
BE IT ORDERED that the Manager is hereby 55bs4-2 authorized and directed to continue with projects in addition to the Pipe Linings job and Elm, with the expenditure of not more than $5,000 or a total of $21,000.
There being no further business to come before the
Board, the meeting was adjourned at 4:30 P. M. upon proper motion.
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