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HomeMy WebLinkAbout1957-01-25; Municipal Water District; MinutesMIITUTdS OF AX ADJOURNED BEIGULAR WZETIEG OF THE EOARD OF DIRECTORS OF THE CBRLSBAD MUNICIPAL 'tVATER DISTBICT HZLD AT 9 :00 A.U., JANUARY 25, 1957, &I! 2960 PI0 PIC0 DRIVE, CARLSBD, CALIFORNIA Chairman Fry Galled the meeting to order, I Present: Directors: Swald, Fry, Kelly, Bogers (Director Zahler arrived late) . Also present were Sngineer Short and reporters from the Blade Tribune and Carlsbad Journal. Attorney Dennis arrived at 10:30 A.M. CORRBLSPOMDENCE : 1. San Diego County Water Authority : a. 1-22-57 -- Statewnt by Department of Water Resources on investigation of aqueduct routes. This was ordered turned over to the Directors for indi- vidual review. b, 1-23-57 -- Bequest for informtion re water deliveries and revenues. 2. Schwabacher & Co., 1-21-57 -- Report on brochure. Director Rogers suggested that in view of the fact that it is not known what the Authority's &are of construct ion costs for the second aqueduct will be that the $30,000,000 figure should be deleted from the brochure, The letter wag ordered referred to the Attorney for his opinion. 3. Basement on the Elizabeth Skelly property. This was check4 by the Sngineer and ordernd filed. 4. County Road Department, 1-24-57 -- Zxcavation permits, These were checked by the Engineer ard ordered filed. I 5. County Auditor -- taxes collected, $60.57, At 9:25 A.M. a recess was caJ 14 in order to confer with m. Guerin Of Schwabacher dc CO. by telephone. Bids At 9:40 the meeting was resumed with the following answering roll Unit "B" call : Directors: Swald, Fry, Kelly, Xogers, Zahler, Also present at this time were a number of contractors, Zbgineer Short presented an analysis of the bids on Unit "B" ad made recommenda- tions, He pointed out that there are two low bids depending upon the time limit the Board elects to use. Hallmark Construct ion Company is low on the 140 day com- pletion schedule and Ward Construction Company on the 200 day schedule. Short stated that he d&s not believe the County Road Department vvould wait until mid- summer to psve the San arcos Road. He said it takes 60 days from date of not ice of intent to get pipe delivered and that he has been personally assured of delivery within 60 days from now. He said he believes the contractors, regardless of the time schedule used, would be in the San Bhrcos section of the road about April 1st. He said he had not completed his analpis of the financial responsibility in all respects but that either firm appears to be acceptable ad both have good bond com- panies and performance records. Complete finahcia1 analysis, he said, will be avail. able the middle of next week but in view of their bonds they could be considered equal. He advised that in view of the fact that holding up the decision to award both contractors are tied up and unable to bid on other projects. Consequently, Short urged resolution of the problem as soon as possible. Director maid stated the opinion that we should not delay awarding the contract any longer. Director Kelly agreed ard Director Zahler said if the attorney agrees we should mke up our minds t day. Bond Sale It was pointed out that W. Guerin had advised that delaying the the market is becoming more favorable. Director Rogers said, however, that he is not in favor of awarding a contract until we are assured of the money in hand. The Bngineer concurred. I sale of bonds might result in saving of more interest costs since I Ward vs James BIIoort?, attorney for IIallmark Construction Compny, smed up Hallmark the problem by stating that the decision of the Board is whether or pointed out that under either schedule the time elernat might be extended due to unforseen circumstances. airactor Rogers noted that if we have a dry summer we can't count on water from Oceanside and we should nd figure on any water out of Oceanside after June ad possibly after ZvImy. Director Kelly asked if it would be possible to have water in this pipe line before it is completed into Carlsbad. The ringineer stated that technically the contract is let as a unit and it is not usual to take over part of a line until the whole is completed. He agreed with Mr. Noore that this Board should approach the problem in a business-like TitEraer. the price of tine. not a 60 day delay in building of the line is worth $6,000. He He said the reason for providing the alternate in the first place was to detmine Director. Bwald noted the following points: 1. We went to thg people and sold them a bnd election on the basis that we 2. We wrote a btter to the County Road Departmnt asking them to delay pav- will have the water in here by July. ing the San Bdarcos Road because we planned to take steps to complete the line as fast as poss-ibk. $12,000 and that should be considered. 3. The bids werg close although on one item there is a differential of 4. The San Luis Bey basin is being depleted rapidly. Director Rogers stated that the quality of the San Luis Rey water could do more than $6,000 worth of damage to crops in two months, Director Kelly agree& and said we can hardly afford to gamble and that all things considered time is of the essence and we could easily lose more than $6,000 and we should accept the 140 day contract. angineer Short said he thinks negotiations with San Marcos are in a state which would allow us to assume there will be water in the pipe line before July 1st. B. J. Stoddard representing Ward Sonstruction Company agreed that an immediate de- cision to award the contract is necessary in order that crew8 can be allocated. Attorney Dennis arrived (10:30 A.N. ) . Re servo ir Blngineer Short then reconmesded that the Board award the contract construction should be got underway since it is an integral part of the system and until it is completed it will be necessary to operate the pipe line manually, The Reservoir, he said, acts as a hinge by stabilizing the hydraulic gradient at that point, This would also eliminate the hazard of human error which could be trouble- some with manual operation. Unit "Btt & Attorney 3emis stated that awarding of the contract on Unit "B" is I for construction of a concrete reservoir to Henck, He said this Be servo ir entirely up to the Board as a math er of pol icy and judgment . With regard to the reservoir he suggested the following of the recom- mendations of the engineer, Award "B" On motion of Director Nald, seconded by Director Zahler, the Board schedule on Unit "B" as bid by Hallmark Construction Company. On behalf of - Construction Company, Xr. Losch expressed thanks and assured that they would push for early complet ion. Awaxd On motion of Director Rogers, seconded by Director maid, the Board Beservo ir unanimously agreed to issue a letter of intent to accept the 5id of J. Putnam Henck for a concrete reservoir to be completed within 180 day s unanimously agreed to issue a letter of intent to accept the 140 day I - - Unit "Ao Wgineer Short said there is a difference of $155,000 between going to the San Marcos main and the aqusduct. In addition to that saving, in the dixussions with San Marcost Board, their engineer and representat iveg of the CMWD Board, San Jhrcos indicated they would be willing to enter into a contract with Carlsbad d that Carlsbad w oxld build a 14" liile %st of the new aqueduct to - -%- I connect with the West end of the San Urcos transmission main. If we do that it would be possible for. the District to save anoth,er @20,000, according to the esti- mated construction costs. In this event, San &rcos wuld want Garlsbad to pur- chase an equity in their transmission main to thg aqueduct ad this would assure Carlsbad of capacity all the way to the aqueduct, San BIarcos would wree to pur- chase this facility on a stipulatd basis of payment (probably the initial cost less 2$ per annum depreciation) and this would recover, througti the sale of the pipe line to San &rcos, approximately & million dollars. Short recommended ,ob- taining an immediate contract with San Marcos and once thus assured rejecting bids on Unit "An and readvertising on the basis of different pipe sizes needed. If San Marcos is to use surplus capacity in our line we should cbrge for transportation until they purchase the pipe line from CWD. 3EQngineering It would take two weeks to revise the specs and additonal engineer- ing costs would not exceed $l,OOO. . Director Fry ordered the Water Problems Comnittee to get together Sikh lJngineer Short arzd make recommendations to San Xarcos. On motion of Director Kelly, second& by Director Zahler, t hF? meeting was adjourned to 4:30 P.H. The Board reconvened at 4:30 PA. with the following answering roll call: Directors: lwald, Fry, Kelly, Rogers ' Director Zahler arrived late (4:40 P.?d.) Also present were Attorneys Dennis, Feist ad Poore, Bflessers Ward and Stoddard, Engineer Short arrived at 4 :40 F,X, Bond A let%er from Schwabacher 2c Co . under date of January 24 advised Sal e that the bond market has improved during the past two weeks and that ings. With the letter was the proof 'of the official statement , postponement of the bond sale might result in hrther interest sav- I Director Zahkr and Flnginser Short arrived. Since there is no guarantee that interest rates will continue to drop and in view of the fact that it would be unwise to award contracts without definite a8glrance of the mongy in hand, Director Rogers moved that the Board sell the bods according to schedule on Pebr-ary 14th. The motion, second& by Director Svald, carried un- animously. Ward vs Attorney Feist representing Ward Construction Compny asked that the Hal hark Boasd reconsider its decision to issue a notice of intent to Hallmark carry through with this step in oder that the attorneys might study the situation. He challenged thF? Hallmark bid on the ground tbt it had not listed a sub-contractor for the electrical work, He said that unless thg contractor has a C-10 license this is questionable. lhginear Short said he had already called the State Contractor's Licensing Board on this subject and had been advised that a general engineering contractor with an nn A license is not required, under the State Contractor's Licensing Act, to engage a sub-contractor for electrical work &ich is part of the over all contract; he can employ licensed electricians to do the work out of his payroll, Attorney Hoore cited applicable provisions of the government code of the State of California, (Sets. 4100, 4103, 4104, 4106, 4108). He said that as far as the state law is concsrnd there is no violat ion as long as the work to be done by an de- signated sub-contractor amollnts to less than 8 of 1% of the total contract. He said the electrical work to be done amounts to less than 6 of 1% of the contract, lngineer Short concurred that the electrical portion of the contract , excluding materials, is in tho nei&borhood of * of 1% of the contract. He said also that he had lunched with a representative of Southern Pipe & Casing Compny and was told that thei have the steel ordered but must confirm the order within a few days and it is there for e imperat ive that the not ice of intent be issued . Attornqy Dennis advised that the engineer should investigate the sub-contractor to Construction Company. He asked that the Bmrd wait ut il hlonday to I -3- determine his competsncy and Zngineer Short agreed stating that the sub-contractor must be approved by the representative of the District ani tht there will be no sub-contractor who has not been approved. He noted tkt the Board had reached its decision in good faith and after due deliberation and it should be accepted thus by all concerned. He also reminded Attorney Feist tht the bids had been public records since January 17th and it was rather late to be challenging them now. On motion of Director Rogers, seconded by Director aald, it was unanimously agreed that the Bod ghould take no action on the request of Attorney Peist in behalf of the Ward Construction Comyany with regard to issuapce of a letter of intent on Unit "B", San BIIarcos Zngineer Short pointed out two problems with regard to San Ebrcos: facilities they would probably not build the same line proposed by CB'IFJD because it would Brallel existing facilities for some distance; it is recognized that the line would have substantial value. 2. There are areas within th? San Marcos Dis- trict which do not receive water ad tky have been complaining, The District has made commitments to the effect that the next monies available will be spent to in= crease their system so they might not be able to repay Carlsbad as fast as we mi@t wish. They would not be able to construct a transmission main to the 2nd aqueduct immediately upon its completion ad their capacity from the existing aqueduct would be adequate. Short said advantages would accrw to each Disrtrist if Carlsbad could offer relatively easy terms. Director Rogers suggested interest only for the first five years ad Short suggested reducing the interest rate since San Marcos would I 1. If San Bliarcos had money available to construct transmission not have gone into this on it s own anyway. Letter to San Xarcos was draf'ted and ordered sent by special messenger on motion of Director Rogers, secomied by Director Zlwald. Director 13Xlvald asked for information regarding a temporary line if negotiations with San Marcos should fail. Ehgineer Short recommended against a temporary line since the only saving would be only in materials and would not be significant, Attorney Dennis read the new time schedule from 0 'Nelveny & Hyers which provides for mailing of official statements ad notices of sale on January Slst and open- ing of bond bids on February 14, 1957 at which time the resolutions of issuance and award should be adopted. Resolution A ~*R3SOLUlIOB OF THE BOARD OF DIBCTORS OF CARLSBAD XRJEICIPAL mo. 44 WATER DISTRICT DECLARING E'S IMTZNTION TO SELL BONDS OF SAID DIS- 1 TRICP FOB IIvPROVBENT DISPRICF NO, 1 THER3OF IN THE UIOUNT OF #1,250,000 AND FIXING T I?dZ AND PLACE NR TAKING BIDS &ND DIRECT- ING P~LfCA@ION OP ~O!I?ICE INVITING BIDS" was adopted on motion of Director Elwald, seconded by Director Rogers, on the following roll call vote: AYS: Directors: Wsald, Fry, Kelly, Rogers, Zahler NOES: Directors : Bone ABSENT: Directors: none Be solut ion The Official Statement was read by the attorney. Director 73wald NO. 45 presented changes as given to him by Blir. Guerin in a telephone con- versation this A.U. The Resolution (No. 45) adopting the official statement was then read by the attorney and on motion of Director Rogers, seconded by Director Zahler, was adopted on the following roll call vote: I AYdS: Directors: PJwaJd, Fry, Kelly, Rogers, Zahler NOBS : Director s : None ABSENT.: Directors: None Int at A letter of intent was drafted by the engbeer, read and approved on motion of Director Rogers, seconded by Director Kelly, The let- ter was ordered sent immediately to Rallmark 4 Henck, Finance s Bngineer Short asked that the Board be prepared to make a substan- Rogers, seconded by Director Owald, the treasurer was authorized to check with tial payment to his firm by February 10th. On motion of Director -4 - I the bank regarding the borrowing of $25,000 to $30,000 for interim payment of the engineers with formal act ion to be taken at the next meeting. On motion of Director Zahler, seconded by Director maid, the meetin$ Was decb%d adjourned to 4:OO P.&I., Wednesday, January 30, 1957. ATT%?I! : </,k 4PPM / Preside2t ,. : of t$$BOms ,< Direct or s of CarlsbadL,/ Municipal Water Distr hd. 2-q Secretary of the Board of Direct o rs of Carl sbad Municipal Water District I I -5-