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HomeMy WebLinkAbout1955-07-29; Municipal Water District; MinutesI c ;: ;:< L ?, r3 MINUTES OF THE SPECIAL MEETING BOARD OF DIRECTORS CAFlLSBm NRJTU. WATER COMPANY of the of the Special Pursuant to written request of Directors Rogers and Meeting July 29 Robinson, and to consent and waiver signed by all of 1955 the Directors, a special meeting of the Board of Directors of the Carlsbad Mutual Water Company was held in the office of the Company in the City of Garlsbad, County of San Diego, State of California, on Friday, July 29, 1955 at 2:OO P.M. Directors C. H. Ingels R. 2. Robinson Present W. W. Rogers C. A. Anthony Arnold Brilhart Also present were C. E. Trygg, Secretary-Manager, Shareholders Buzz Garland, Bill Fry, Bill 13aldwin and Mrs. Robert Hardin. Also Reporter Perry of the San Diego Union, a reporter from the Oceanside Blade-Tribune and Maribee Balcom, stenographer. Director Ingels called the meeting to order at 2:05 P, M. The Manager presented letters from the Carlsbad Municipal Water District dated July 25th and June 24th; also a copy of their letter to the City of Oceanside dated July 25th. Director Rogers stated: Itl. This Board on July 21 voted unanimously with Director Brilhart absent to support the Municipal to the hilt in the pro- posed bond program, There appears in the Carlsbad Journal of July 28 a state- ment to the effect that four members of the Board wanted to go in with Oceanside and Vista and build a line in the San Luis Rey in conjunction with a Replenishment Bistrict. rfI reqtlested that a meeting of the Board be held to clarify "- -. Q.2 7 u.v d- its position, Director Robinson concurred in this request. . 'I2. The Municipal Board has no objection to investigating any possibility of obtaining water cheaper, However, everyone must realize that the matter is urgent and that there will be a serious water shortage throughout the irrigation season next year unless we provide Colorado river water, It is basic that n any solution must get water here by June 1956. Carlsbad, North Carlsbad and Terramar will be the ones who suffer if this is not done. 113. On July- 25 the Municipal wrote t.o the Oceanside City Council discussing cooperation and a copy of that letter was given the Mutual and read by" the Manager and the President that date, The City Council has discussed the letter and referred it to their Water Resources Committee, "Getting any action in this matter in time to be of any use h next year appears to be a remote possibility, "To store water in San Luis Rey basin as a replenishment dis- trict could not be effected without membership of all users in Metropolitan. . .-* ,1 114, There would be no water to store unless a new line is built, This would require many months of negotiations and a two thirds vote by all Municipals concerned, "It would appear that this entire proposition is a smoke screen 5esigned to confuse the issue with the voters. The Municipal, the Water Authority and Boyle Engineering have examined this mute for a pipe line a"nd found it too expensive., rt5, We have been informed that the Journal would favor a , ?Ort line from the Aqueduct to Carrillo's Corner with local lgencies taking it from there, the idea apparently being that a fj Dl; 1 "n ,z'b '. privately owned public utility be formed, I am sure the Municipal would be glad to hear from any agency that can demonstrate the financial and managerial ability to form and operate such an agency and deliver water cheaper to the District , "6, Attention is invited to the basic situation which is: "All taxpayers in the District are obligated to pay some 50 cents per $100 to Metropolitan and the Water Authority whether we get any water or not. '*A 301' line to Carillo's corner will cost $1,300,000, or two thirds of the proposed bond issue; this might be 20 cents on the tax roll even if no water is sold. "If some other agency is formed to bring water from Carillo's corner, can they do it for less than the remaining 10 cents per $100, 1f7. Also since every acre of the District must pay a share of the.70 cents every area of the District should have the opportunity to benefit from any line built. IfA definite decisibn..rnust be made prior to September 15 if we are to have water next year, If a concrete plan approved by all parties either for procurement of water via the San Luis Rey or by the organization of a competent public utility cor- poration can be presented by September 15, 1955 I see no reason why the Municipal should not accept it and reduce the actual expenditure by the amount involved in the branch lines, ?'8, In any case+and whatever is done, there must be a bond issue. Let's proceed with the present program with the under- standing that any reasonable alternative will be considered by ”. Gy? ., bd the Municipal Board, The members of that Board were elected to bring Colorado river water to this District, They will go along with any workable plan anyone can submit, They cannot hazard our future by chasing will of the wisps, “It is recommended that this Board endorse this policy and support the Municipal Board in every practicable wayon Director Ingels said there has been a great deal of talk against the bond issue and he thought the trouble was that nothing clear has been put out to the public, The people might vote for a bond issue, but not for the San Marcos line. Director Robinson said he would be curious to know where the press releases came in that four members of the Board of Directors of the Carlsbad Mutual Water Company were in accord with the new plan. President Ingels then presented the Ketter written to Mr, Eberhard regarding. replenishment basin, which was signed by four directors. Director Robinson said he did not see how this letter put the Board in the position of contradicting the policy they had formed the meeting before. President Ingels asked Bill Fry as president of the Carlsbad Municipal Water District whether he could make it clear to the public that if any plan comes up later, it will be studied, Mr. Fry then explained that it was necessary to have some sort of plan in order to arrive at an amount for the bond issue, The Boyle Engineering Company worked almost a year and then came up with $1,954,000. He said that the Municipal Board is open minded and if a better plan can be produced, they will welcome the plan and will study it, This bond issue is authority for us to issue bonds fur this much money. The money can be spent on this or Gk3% P 3' some other plan, The money does not have to b6 spent unless necessary. Only wha't is necessary is what we would issue bonds and spend money for, We have had Boyle Engineering Company study the other routes and feasible routes and we feel that this is the best. This election is for authority to issue bonds' up to the amount of $1,956,000. We are not going to be able to put the issue over unless we have every- body with US. If the people feel that the City should take over the Mutual and operate it as a department of the City, we will go on Yecord as going along with that. It is imperative that we must have this bond issue, We must have everybody's support , Attorney Ray C, Eberhard, Attorney T. Bruce Smith and share- holders C. J. Fennel and Mrs. Gillette then entered the meeting, Director Rogers requested that the Board go into executive session, which was done at 2:20 P. MI, everyone excepting-the five directors leaving the Board Room, **%-****' The meeting went back into regular,*session at 3:Ol P. M. Director Ingels said that it has not been made clear to the public whether this bond issue is for the San Marcos pipe- line or whether some other plan might be used. Patrick Zahler then entered the meeting. Attorney Eberhard said that if he were on the Municipal Board, he thinks that he would adopt a resolution stating that, while the Board has an engineering report that their proposed plan is feasible and could be built for this amount of money, I 1 - -. .. 605 that the Board is not committed to that particular pian, Other- wise the Municipal might be in the position that everybody understood they were voting on this particular plan and you cannot adopt another plan. I think if you want to leave this open that you should adopt a resolution to that effect. Director Rogers said that the Board has already approved such a resolution, He read the resolution as'follows: Director Brilhart asked Mr. Eberharcl whether he had studied the situation in the San Luis Rey at all, and what he thought about that plan, Mr. Eberhard replied that during the last meeting, there was a discussion of the organization of a replenishment district which could buy water from some other source, but which would have the authority to levy a tax on the production of water, rhat money would go into the coffers of the District to be used For the purchase of Colorado River water. fir. W. D. Cannon then entered the meeting. Mr. Eberhard continued that he thought it desirable for zarlsbad and Oceanside to get together on this proposition and le said it certainly would beto the advantage of all concerned if 5 we _. could get the powers out there in the Valley to agree on the formation of a-replenishment district to put water underground in that basin. Mr. Eberhard said that the San Luis Rey is our primary water right. He has been connected with the Colorado River water since its inception, It was never intended as a basic water supply. It was intended as a supplementary right. He said he thinks Carlsbad would be very foolish to let anything happen to this basic water supply and rely entirely on the Colorado River water. There may not be enough water so that everyone will have the full amount they are claiming. There may not be that much water available. Under the replenishment act, you would buy water in the winter time and let it run into the basin. Director Rogers said that one of the main defects of the proposed replenishment basin in the San Luis Rey is that that area out there does not belong to the Metropolitan Water District, Mr. Eberhard said 'he did not think there would be any trouble with the Metropolitan about that, Director Brilhart inquired whether Mr. Eberhard-or Mr. Ingels had discussed 'this replenishment basin program with Vista or some of the others dong the line, Mr. Eberhard stated that he had talked with Mr. Cosgrove of Oceahside and had also sent him a copy of the Replenishment Act and written him a letter which he would receive today, Director Brilhart inqufred what Mr. Eberhard's opinion was as to the time it would take. C. Mr. Eberhard replied that there are time limits. It could not be done in time to get water next June. .. - -.. Q 7 Director Brilhart stated that he was sure that Oceanside would not cut off our supply next June if the line is brought down that way and they see some plan in which they can join. He thinks this worrying about the water being cut off in June is a little premature, as he can?:: good common sense in thinking that Oceanside would cut us off if they knew we would go along on an issue of $500,000, Director Rogers said he had no objeiction and he didn't think the Municipal Board has any objection to a new plan brought up in time to get water in here. He said Ihe would like to say also that.we are getting less than 2 acre feet a day from Oceanside. If we do not get more Colorado'River water than we are getting now, our groves are going to go to, "pot" next year, He said the Board could not gamble on it. Director Brilhart replied that the I3oard also could not sit here and think that this bond issue is going to go over. He said we are all trying to do the same thing, but there may be two ways to do it, Director Rogers presented the figUra?S Of the Sari Diego County Water Authority on the cost .of a line CbWn the Sari Luis Rey Rivere Director Robinson stated that from i:he historical standpoint, the extent of the cooperation with Oceanside has been veryslight. Director Brilhart said that there is a possibility of change, He thinks under certain circumstances, when conditions warrant it, .- they will see the light and work it outo Director Rogers said if Director Bri.lhart thought Oceanside would vote a bond issue for one half of a pipeline, that he was just mistaken because they will not do it. As far as this bond . _. i $5 1k.d bond issue is concerned, he said he is willing to go ahead, and if anyone can come up with another plan, the Municipal is not committed definitely to do 'anything in particular. Director Robinson said that as he understood it, Mr. Eberhard is proceeding with the investigation as to what he .r might come up with with these various agencies. Mr. Eberhard said we must have Oceanside in it because we have to have Oceanside's" cooperation; at least, it would be highly desirable, Director Rogers said he would go along with the idea of a replenishment basin. Mr. Eberhard said that before the Company goes into this replenishment distrik, they should have 'some engineer investigate and determine where the boundaries should be established. He thinks it should include everything this side of the Bonsall Narrows. Director Rogers inquired whether thepwould have to be an adjudication of who has riparian rights and who has not. * Mr. Eberhard replied that that would be necessary, He also said that this Act provides for a hearing and report by the State Division of Water Resources. Therefore you have some really expert advice on it. There may be no final action, however, for a couple of years. He suggested that Mr. Harold Conkling be consulted regarding the boundaries of a replen- ishment district, inasmuch' as he has been working on this basin. Director Robinson moved, seconded by Director Anthony and carried unanimously: ". v fj j? p, ip 19 . ,- BE IT ORDERED that the Board hereby re- District bond issue; and BE IT FURTHER ORDERED that the Mutual Board will request the Municipal Board to consider any alternative plan which may be submitted prior to October 1, 1955 and properly documented to prove its feasibility before commencing construction of a pipe line; and BE IT ALSO ORDERED that the Board of Directors of the Carlsbad Mutual Water Company hereby approves a study of the feasibility of or- ganizing a replenishment. di'strict in the San - Luis Rey-Basin as a supplement to the bond issue. a affirms its support of the Municipal Water Director Robinson said that be wish.ed to make three points clear: 1st: That the bond issue is not tied to *any one study. 2nd: Th,at the Carlsbad Municipal Water District Board is willing to accept advice. il 3rd: That the Carlsbad Mutual Wate:lr Company is actively engaged inns program to find out whether there is another method of meeting OUT water problem. Director Btilhart then asked wliethe:r if we pass this bond issue and the Mutual Board by investigation finds a more feasible and better plan a€ter this bond is voted, how do we know that the plan we might suggest would be accepted by the Municipal? In other words, the Municipal can still go ahead with their own plan. Director Rogers said that'if something is submitted that is concrete and that is a workable plan, the Municipal will go-ahead and consider it. Director Robinson stated that if we get a negative response from Oceanside on the matter of-a replenishment district, that fj -. going much beyond that is a waste of time and effort. He said he thought we should investigate the replenishment district idea, but if Oceanside is cool to it, there. would not be much point in pushing it as a qubstitute for a pipeline.' Mr. Eberhard stated that he was sure that Oceanside is interested in cooperating with Carlsbad on some kind of a pipeline. ' Whether they will be interested in time to aid the Mutual, he' does not ..know. 'He fee1.s that Oceanside and Carlsbad are going to have to get right down to "brass tacks" and work out plans cooperatively right,now.. It is no time to be quarrel- ing among ourselves. He thinks the Mutual would do well to make an investigation. It would be well to hire an engineer to review the Boyle report and to,study and see whether.there is any other route he would suggest. That is the history of other budgets of this kind. He thinks that the Municipal should welcome any help they can get from other sources. There is a possibility that the City of Carlsbad might employ someone to review the Boyle report. Mr. Eberhard thinks that would react in favor of the bond,. if it were known that an independent review is to be made of the Boyle report. . ' '< Director Rogers said that,he could not commit the Municipal Board 'but he thought they would probably be in favor of a replenishment district. If Oceanside were interested in going in together with Carlsbad right away, the plan might get somewhere. Mr. Eberhard said that he wanted to say again that he thought it would be desirable for the Mutual Board to authorize some sort of study of this so that people will know that it is being studied from every possible aspect. . ,y 6 l: 7. . I. 4. “e Director Robinson said that the Municipal Board was going to talk to -I the City Council next Tuesday. The City might be interested in some study along these lines. He said he thought it would be a beneficial thing to all concerned. He would like to see the Mutual have some cooperation from some other agency in the matter ol money, if possible, as we have already levied a $30 assessment. He said he assumed the survey would cost at least $1000 to $1500 to even look the documents over. Mr. Eberhard said again he thought there should be an in- dependent opinion, as it would certainly instill’confidence in the voters if they thought someone else was working on it and the Municipal had agreed to consider a new plan, Director Robinson moved, seconded by Director Rogers and carried unanimously: BE IT ORDERED that we write the City of 55-110 Carlsbad and ask them whether they would be interested in sharing the expense of an independent engineering report, and if so, how .much they would be willing to expend, - preferably 5s.) There was some discussion of the necessary extent and scope of a bond issue if used for the purpose of a replenishment district. Director Rogers stated that there are a number of people, particularly in North Garlsbad, that want something done about the future of the Mutual, This Board has said that they are go.ing to support this bond issue and the Municipal Board has agreed to put the money where it will be the best, but we still have the problem of the Mutual which will have to be solved one way or the other. He said it seemed to him that the solution of that question could be going along simultaneously with the bond issue. He c A i.3 k3-L.a said the Mutual Board of course is not obligating its share- holders to do anything. Dr. Thiele The Manager reported that Dr. Heinrich J.Thiele Groundwater Consultant, had asked to meet with the Board on August‘ 12th. He is on vacation and will be in the vicinity and would like to talk to the Board, Director Rogers moved, seconded by Director Anthony and carried Unanimously: 55-111 - BE IT ORDERED that the Board meet with Dr. Thiele on August 12th. Bond Mr. Eberhard said he thought we should find out Issue Continued what an engineer would charge us to make a review of the Boyle Engineering plan and come up with any alternate plan if he thinks an alternate plan is necessary, Director Rogers said he had suggested to the Mutual Board that we might get a consulting engineer to go over this thing with the thought that it might cost $1000 or $1500, and might be that amount of money well spent. We had been promised a certain amount of assistance by the San Diego County Water ’ Authority, Director Ingels asked whether there would be any advantage ’ in going to the Metropolitan line rather than being tied in with these lesser agencies, Mr. Eberhard said he kept going back to what is fundamental here, which is that there will have to be storage to take the water in the winter. Director Rogers moved, seconded by Director Robinson and- carried unanimously: - -. 6 -ji -3, BE IT ORDERED that the President and the 55-112 Manager be instructed and directed to contact available consulting engineers to find out what it will Gost to make a preliminary survey of a replenishment district and a review of the Boyle report, Director Rogers then again called for an executive Second Executive session at 4:30 P.M. and everyone except the five directors Session 3gain left the Board Room. ******x- Meeting was reopened again at 4:46 P,;M. The Manager inquired about the disposition of the News Letter newsletter which he had prepared explain.ing the reasons for the assessment, Mr. Eberhard said it seemed to him t:hat a letter of explanation often quiets the clamor when the shareholders find out what the Iecessity is, No action was taken. There being no further business to come before the Board, on ?roper motion, duly seconded, the meeting was closed at 4:52 P.M. (;; 52.j r' ~~~,~~ " Secretary d t. \ 7, .i / /' ,#W ,/"yx; ,.".I., "./ '\ i Jp. 'J ,"- i- zY,*: - - .I' / "PmSsident~ 'x,, !+ \.., '\., \*> '.,, \. ,o 7, .. ey 1 + -L CONSENT AND IYAIVER OF NOTICE OF SPECIAL MEETING OF THE DIRECTORS OF THE C;(LSLSBAD MUTUAL VJAT ER COMPAFJY We, the undersigned, being all of $he Directors of the Carlsbad Mutual Water Company, do hereby waive notice of the time, place and purpose of the meeting of said Corporation herein provided for, and do hereby consent and agree that a meeting thereof may be held at the office of the Carlsbad Mutual Water Company in the City of Carlsbad, Coucty of San Diego and State of California on Wednesday, the 10th day of August, 1955, at 3:OO P. hF. , , .> .,.*. / :' -: ___. ' '".-. r-. - f , I. q : .P., / + /" : \ - >t 1 /'! \..L c</! /?y\,/\/!d 'e ;,$ "ii'.,? .,, 1 "' & /.y /"- y/ '. i; L .A?%% r c ,.L/+4? JJ5 f.jT !7 Id August 7, 1955 Board of Directors Carlsbad Mutual Water Company Carlsbad, California Gentlemen: I herewith tender my resignation as the Secretary- Manager of the Carlsbad Mutual Water Company, said resignation to be effective October 15, 1955. For the purpose of securing other professional employ- ment I would like to obtain a leave of absence with pay, including accrued vacation time, to commence as of your date of acceptance of this resignation, and to terminate with the effective date of resignation. May I express my pleasure for having served you during the past two and one-half years, and trust that my services have been of substantial value to the company. Respectfully submitted Secretary-Manager