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HomeMy WebLinkAbout1956-11-07; Municipal Water District; MinuteslKUYUTBS OF TffE EGWJLA3 luOEE2IWG OF THE BOAILi) OF DIEEXTORS OF TRE 1956 AT! 2960 PI0 PIC0 BOULBVQRD, CARLSBAD, CALIFORNU CARLS3AD ~~ICIPBL ZATEB DIS2SICT €%3LIJ AT 7 :30 P.X. OM BOVWPR 7, I The mectting was callad to order by Chairatan Frr. Present: Directors: Ewald, Pry, Kelly, bgers, Zlahler Absent : Directors : none 8180 prgsent were J, B, iitnmur, jiessers ihfferty and Guerin of Schwabacher & Co . , AWiorney Wm, dermis, 3ngineera short arad Clayton, and Messers Phillips and 3russow and Xrs. Hatfield of North Carlsbad. Brochure 6 Xr. Hanauer of J, B. -Ianauer bc Co. , financial con- Bond Sale sultant s, was called upon to presm.. the proposal of (Hanauer 1 his firm with regard to services in connection with the bond issue. According to his propesal, compensa- t ion would be c ont ingent upon the sale of the b onds and his f irrn would assume all out-of-pocket expenses. They would cLssemlaLe, print ana distribute a brochure and furnish an additional 100 copies to the District aad pay the costs incident to proparatien and distribution of any subsequent brochures which might be required if the District sells the bonds at more than one sale. They would pay the costs of an advertisemnt in the "BOND BUYER" and provide for an informat ion meting in Les Bngeles paying the transportation and other costs of the board members in attendance. Their services would be available at no further costs for six months after date of complet ion of construct ion of the systbm. The charge wuld be 6/lOths sf 18 ($8,100). If services were terminated thirty days after the salt of the bods ani they do not have Bo pay the costs of the "BOND BUYIdBn ad and expenses of directors attending the informtion meeting in L. A., the fee would be no greater than 3 of the sbove proposal. Mr. Hanauer said that an ad in the "BOBD BUYZR" costs. $400. After sane discussion Mr. Hanauer agreed to do the following for $3,800: I 1. Serve tho District for thirty days after the money for the 2. Xot pay for the ad in the "BOND BUYER". 3. Bot pay the expenses of directors attending the information 4. Do all other things in the original outline. bonds is received. meeting, He said his firm would get all the information necessary for the brochue. ( Schwabacher ) Mr. bf forty of Schwabachcr & Go, agreed to shave their original proposal presented at the October 24th meeting from $6,950 (excluding the cost of printing the brochure) to $5,950. He said he would consider the duration of employment to be about three years during which they would work with the District on any other bond issue or sale of any part of the bonds in case sale in stg- ment s is desirable. The fee would be payable when the first of the bonds are sold. Services would not be limited to those specified in their proposal, ( Stone & Stone &-Youngberg* s proposal was read by the Secretary, Yeungberg) their represent at ive not being present. For esse& ially the same services their charge would be $2,450 to become payable upon receipt of the proceeds of the sale of the bonds. This fee does not include the wst of printing the brochure or an ad in the "BOND BUY3B" which, it was stated, may or may not be necessary, For these two items, an additional charge of $1,200 would be made. Upon mot ion of Director Boger8, seconded by Director Kelly, it was un- animously agreed to submit the proposals to the finance committee for further study, -1- North Mr. Phillips of North Carlsbad requested to know what pro- Car 1 sbad cedure is necessary for his area to become part of Im- proveaent District 190. 1. The. attorney advised tht the present law makes this impossible but that the matter is I coming before the state legislature in January and that no difficulty is anticipated in getting the lax changed in order that North Carlsbad could so armex, However , when the law is changed, it will pmbably be necessary for North Carlsbad to have an election. BBr, Brussow asked what assurance the Board could give that Nerth Carlsbad wmld get Metro- politan water if they do annex to the Improvewnrt District. The Engineer and Director Rogera explained tkt there are mme physical difficultiea in this regard. bt ion Director Rogers moved that in the event that the law is changed and North Carlsbad wants to annex to the Impxove- mrxt District, the policy of this Board should be to consent to such annexat ion. The mot ion was secorxted by Director Kelly and led to the following discussion: Director Bwald stated that he believes there are a number of things which should be lobked into before mking a commitment. He said there is some question as to what the City would want to do if they took over the Mutual. Mr. Brussow informed Mr. Phillips that at a meeting on this subject he had been the only one present from Korth Carlsbad and that the Board had acted fairly since the meeting had been announced and the Board had pro- vided for a haring. Direct or Rogers advised that if North Carlsbad intends to annex tQ Ocean- side within five or ten years, it would not be expedient for them to annex to the Improvement District and assume the obligations involved. Engineer Short and Chairman F'q concurred. Rogers added, however, that North Carlsbad was included in the Harding report and is entitled to a statement that this Board will give them consideration. Mrs. Hat field said it would be doubtful that North Carlsbad would vote to annex unless they could be guaranteed Bdletropolitan water. She said Denny Wood had told Nr. Brussow that North Carlsbad would receive the best water available but that he would not say they would get Xetropoli- %an water. Director Ervald made it clear that he is not opposed to North Carlsbad becoming a part of the Improvement District but said that by comnitting ourselves at this time we might create a worse situation than already exists and that getting water into north Carlsbad would cost substanti- ally, Engineer Short verified that the li;iutual system could be equipped with control devices wfiich would enable water to be put back into #l Reservoir but there is the groblem of the strength of the Xutual's pipeline to be considered and, he observed, you can't get water to flow continuing to use San Luis Rey water for some time. Mrs. Hatfield asked if thsre is any way in which water delivery to North Carlsbad could be stopped if the City takes over the Nutual. Director Rogers stated that the Mutual Board would attempt to get a provision in any sale agreemerrt which would insure del ivery of water to North Carlsbad. The attorney added that unless there are some peculiar pro- visions in the by-laws, delivery of water could not be stopped without the consent of the stock-holders; in case of condemnat ion proceedlhnga there would be a hearing. Thgineer Short noted that if the Citp gee quires the Xutual they coukd probably charge a different rate for water delivered to EForth Carlsbad. I both ways at once through the same line, The Mutual, he said, will be I -2- Nr. Brussow said he had been advised by an attorney that it might be possible to rent pipeline facilities from the Butual in order that Borth Carlsbad could be served Zetropolitan water. I Vote Upon roll call vote the motion carried as follows: AYES: Directors: FRY, YaLLY, ZIGERS B03S: Directors: EWALD, ZAHLER Director 3wald said he wanted it understood that he is not opposed to Borth Carlsbad receiving water but feels that this action is premature. Director Zahler said. he feels the aFe and that in addition he is always opposed to committing the B&rd ,as to f'uture action. Xinut e s The minutes of the meeting of October 10, 1956 were ap- proved on motion of Director Zahler, seconded by Director Jhald. The minutes of the meet in@; of October 24, 1956, were approved on motion of Director Kelly, seconded by Director Zahler, CORRESPONDENCE : 1, 0 Welveny & Nyers : 10-22-56 -- bill for services in connect ion with Improvement District Bo. 1 ($1,774.00) , .The Secretary was instructed to thank them for their may courtesies and ask their permission to defer payment until the bonds are sold. 10-29-56 -- request for affidavits. The Secretary stated these had been sent on November 2nd . 11-2-56 -- copy of letter to %r. Dennis re brochure bids, I 2. Everts & Esenoff -- audit report, 1955-56. 3. Secretary of State, 10-3-56 -- confirming exclusion of Keith Baumgartner tracts. The attorney noted that some K-B lExclusion further details would have .to be attended to in this regard an3 agreed to instruct the Executive Socre- tary on this subject. I 4, S. D. Chamber of Cornmerce -- including questionnaire (answered 11-1-56) and a statement as to the water policy regarding 1. immediate con- Director Rogers stated he woald atterd a meeting of this group to- morrow. Engineer Short said there is some division of Qpinion in the S. D. Chamber as to the proper appraach to this problem; there is a feeling that the best interests of this area would be better served by the immediate construction of a line of less capacity, Attorney Dennis stated that getting the state to do something is much more involved than getting Petropolitan to do it . Engineer Short observed that it appears we have the Bdetropolitan and the state water deperrtment in a position of competing to see who will serve us and this is to our advantage. Director Rogers noted that there is a def kite split betwwn the Eetropolitan and the state and also between the Authority and the S. De Chamber as to whether we should wait on the state. Direotor Ewald stated that as long as we are in the Xetropolitan we should gQ as far as we can with them. The attorney pointed out that if Eetropolitan builds we shall have to pay l@ of the bill; if the state builas we shall have to pay 5% struct ion of the 2nd aQueduct : and 2. the Peather River project. of the bill, 5. S.D. CO. Water Authority: 10-11-56 -- minutes of regular meeting of Board on that date. 10-25-56 -- re pre-payme-rLt of balance of annexat ion fees. 10-25-56 & 11-5-56 -- re our request that the Authority participate in branch-line construction. Director Rogers said he plans to pro- pose a motion that the Authority take pLrt in the cmt of such a line. 11-5-56 -- tabalat ions as of 10-31-56 -3- I 6. Bueno Colorado UVD -- re plms for Feather River trip. 7. Fallbrook PUD -- requesting water. This was referred to the water problems comni%tee . 8, Stone and Youngberg proposal. (11-5-56 1 9. Schwabacher Q Co. ( 10-29-56 ) 10. J. B. Hsnauer & CO. (11-1-56) I 11. Wainwright & Ramsey. (10-30-56) Not immediately available. 12. John Burma & CO., 10-25-56 0- re insurance program on bond finance and engineering problems. The Secretary was instructed to send for details, Convent ion On motion of Director Kelly, seconded by Director Rogers, the Secretary was instructed to make reservations for "twe" at the San Jose Convention of the Irrigation Districts Association in December, Re solut ien The engineer announced that his firm has determined the Bo. 32 proper locat ion for a connect ion to the aquduct . The attorney drev and read Resolution Eo. 32, A RlSOLUTION OF THE BOD OF DLRECTORS OF TBE CARLSBAD MUNICIPAL WATER DISTRICT ReQIESTING A PZR?LARE;NT COMBECT ION ON THE SAN DIEGO AQUEDUCT PROP THE SAN DIZGO COUNTY WA!l'ER AUTHORITY FOR THE USE AND BENGIT OF TH& CBSPVD AT SOUTH STATIOIi? 1,097,825 with a capacity of 24 cubic feet per second. On motion of Birector Rogers, seconded by Director Zahler, the Resolution was adopted on the following roll call vote! AYES: Directors: EWALD, FRY, KELLY, ROGERS, BAHLE;R NOES: Directors: HONE I Damsite The engineer stated that he had been to Sacremento and had filed an application to appropriate unappropriated water on agUa Hedionda Creek. The District has 60 days in which to complete the application. He said there are two other filings upstream from our location and another downstream (thst of the biutual at Calavaras Dam). On motion of Director Begers, secoded by Director %ala, it was agreed to ratify the action of Bngineer Short in filing an applicstion to appro- priate unappropriated water which he did on behalf of the C"l on November 2, 1956, in order to assure this District of a damsita within the Agua Hediorda Eancho (Sec. 12, T12S, R4W, S.B.M.) for storage of 500 Secretary was instructed to send this portion of the minutes to the State of California -- State Water Bights Board and to place the subject on the next agenda. Pelicy re The engineer stated that we are now faced with policy de- pipeline cis ions which would effect the design of the pipe line, acre feet of water per..amwllr The mot ion carried unanimously and the ire., whether to go into the retail water business or whether the C38ulfi) should be a &olesale agency only. The number of connections along the line would be effected by the policy formulated. Short said the outlets should be no closer than 1,000 feet apart. Birector Rogers suggested that the water problems committee, with the engineer, should consider this problem axxi that a meeting should short 19 be called in which the Uutual Board ad Ur. Cannon should prt icipate. -4 - Calave ra The engineer advised that we should have a connection to Cennect ion the Calavera line in order thst excess water could be stored in the lake until other storage facilities could be developed. Ze stated that, with regard to easements, I Easements no difficulty has yet been encountered-which could not be overcome. Belf ord The attorney announced that San Harcos has agreed to give V 11 lage Neadowlark a meter with certain provisions, &d the trans- mission charge will be the same as to the people of San Narcos. On motion of Director Bogers, seconded by Xrector Xahler, it was unanimously agreed that the CMWD should charge a $10.00 override on water thus delivered. Reservoir The cagineer stated with reference to the Clemson in- Site terests and reservoir site that they would like to have an agreement between the C."D and San Jkrcos whereby Carlabad would transport water from the Sax Lhrcos dis- t rict so long as we have a surplus. The meeting was declared adjourned until 4:OO P.P., Rovember 9, 1956. I ATT $ST : 2t, B ~ E,-& 4 Secretary of the Board of Directors, Carlsbad Lhnicipal Water Bistrict 1. r' - ;/ ,,/f*; A'' 1 .~, ,, i- & ,.' { e-"-:" ,.',L, j, I i X. " I ,' President of tlie Board of Directors, Carisbad &unicipal Water District I -5- MINUTES OF AN ADJOURNE3 REGULAR MESTING OF m Born OF DIRECTORS OF THE CAFUBW CARLSBAD , CALIFORNIA MUNICIPAL WATEZZ DISTRICT HELD NOVEMBEF~ 9, 19% AT 4too P.M. AT 2960 PIO PICO DRIVE, The meeting was called to order by Cbainnan Fry, Present: Directors; WALD, FRY, ROGERS, ZAHLEB (Diseotor Kelly arrived late) Absent: Directors: NORE I Also present were Mr. Sidney Hook of Stone & Youngberg (financial consultants), and John McLaren of the Blade-Tribune, %ne & Mr. Hook was ded upon to present his f ids prapasal for handling ef powberg a brochure and sale of the bonds. The fee without costs of printing the brochure and advertisement in "The BOND BUYER" would be $2,450, If Lhese two items are to be included the total cost would be $3,650. Mr. Hook said his fj schedule is full a& that they ccrtild not premise a brochure before some time in January, mrector Ewald.moved tbt the proposal of Stone & Youngberg be accepted. The motion wat seconded by Director Kelly and led to considerable discussion with the conclusion that it would be best to defer a bcision until the directors can talk with directors from other Districts. It was therefore moved by Director Rogers to adjourn mtil ltOO P.M. November 16, 19%. "he motion, seconded by Director Ewald, carried unanimansly, ATPEST t /7 I 1- 1: tLv$ 8, K"d7 Secretary of the Board of Directors . CARISBAD l4UIKSCIPAL WATm DISTRICT (SEW I