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HomeMy WebLinkAbout1955-03-15; Municipal Water District; Minutes" _. . 3% 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. .3 1s d7i, 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 .. .. 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, /I .. 4 '. 77- 1 "-..-e March E& 1955 Ta the board 4f ix.rsl=%ars Giinr%sbard Mutual. Va*er ~crmpany C~SlSJb.Sd0 ~~~~€~~~~~ ~~~~~~~~E The! ~~t~~~#~ kabh dl1 i,ndBca%s to yuu the amount a~$ re~xce&.sivrs reading which has been occwdrtc~~ To date w have r@G@?iv@d no G aaica%.fon fnm 431% City of Oceanside Qiseciay %sgard%ng ratatt~p al-thW@ WC?~ bi~l3.e~ that ~~~~~~~~~ has been cleaning the metes daily and Einding i@f#ki3X CC%n$%erQnS to those %?hi& atIC$StG?d QCI. %he fmfa Of arch BI Resg@ctful2y ~~~~~~$ gg* Secretas 7 - " 373 2% i! i9 % 9 T ?% .2 8 3 P 8 zp @ =Ir % B e &3 ;4" 8?: I r 3 wwwewam .&Gkwwa or QlF**Gtjla p"1" iLI %hL3 @$S mamc#m@M MR2WtaP3Wd..r s.6nwfvt23mGJ wBtmwwo-4 wmww*4id €7 z P ut m 3 tfJ B 3 3 * 0 f 810 3 2 6 V &.r a et% n 8% 4 a !.a a3 EB 0 s4. 4 ib E 3 e z 7 iz 8 $r 43 g i!& *(Bum t3"1"9 OM* ow *@a *@a w P.* (%x ?St wc3a @ ,43 P eaM *@ 43-4 * 0% 3 3, 8 *J ow iii! g 8 *b "&? iu &.3 0 h3 w 62 -4 0 e$ w +@ 3-6 M a M 8k IE -.. gm/ ha, d 13 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. 375 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 ”. -. . 3T! 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 37f 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. rl