HomeMy WebLinkAbout1955-07-29; Municipal Water District; MinutesI c ;: ;:<
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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
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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
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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
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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
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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
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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,
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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,
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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
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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.
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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
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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
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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:
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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
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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. .
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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. .
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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
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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:
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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.
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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.
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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.
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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