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HomeMy WebLinkAbout1957-02-06; Municipal Water District; MinutesI NIIMup3S OF A REGW XEBTIBG OB TH;E;r BOARD OF DIBECTORS OF THE: CQLSBAD BllumICI- PAL WA!I?ER DI§TRIOP HBui) QT 7 :30 Po&, FIBRUBY 6, 1957, A!I! 2960 PI0 PIC0 DRIVE:, CBLSBD, CALII?JRBIA The meet in@: was cslled to order by Director &ald at 7 :35 P.X. Present: Directors: %aid, Rogers, Zahler Absent: Directors: Fry, Kelly (Director Fry arrived at 7:50 P*?A.) Also present were Clarence and Bbrs. Dawson, Irwin Kelly, John Xoore, H3d Hallrrark, Ed Losche, Glenn R. Feist, Attorney Fletcher (LA. f , Wm, Cannon, Mr. John XcLaren of the Blade Tribune, Xinut e s Xinutes of a special meeting of February 4, 1957 were approved upon motion of Director Rogers, seconded by Director Zahler. Ninutes of the Jmwy 16th, 17th, 19th, 23rd, 25th and 30th meetkg8 were! ordered held for consideration at the next meeting, Basement s 3hgineer Short reported on the status of easemats and reported that Be servo ir the escrow has bein opened for the Clemson Reservoir site-with necess- ary -sew& s in the area *st of the San Narcos line and noted that all easement 8 have been acquired West of 395 except the one from Er. Francis which would cost $1,156, Short recommended that except for the sum of money involved it would be a good idea to acquire this easement which is just hst of the Sloan line, On motion of Director Rogers, seconded by Director Zahler, Short was authorized to execute the option on the Francis parcel at $1,156. Short then read the instructions on the Clernson site escrow. (Chairman Fry arrived -- 750 P.M. ) I Clem= PL On mot ion of Director Rogers, seconded by Director khler, the Chair- Sscrow mn and Secretary were authorised to execute the giscrm instructions and a copy of same was ordered filed with the Secretary. The motion was lost. Short stated that CMXD is not cumitteed to sell water other than swplug capacity. The Attorney called attention to the fact that C"JJ is taking the Clemson site subject to certain taxes ard there is the possibility that we may have to file condemnat ion proceedings in the future since we are agreeing to take the lad sub- ject to easements and restrictions not on record. Bngineer Curtis stated that there is a preliminary report which indicates no conflict with our posit ion, On mot ion of Director Rogers, seconded by Director !khler, it was agreed to accept the escrow agreement subject to the engineer's determination that section 8 would not effect CIVTwD's use of the property. The motion carried. Director lsprrald relinquished the gavel to Chairmen Fry, Hinton site IBngineer Short reported that, in accordance with a discussion some name of the CUJD on waters of the Agua Hedionda Creek for up to 500 acre feet per annu. He said the location of the point of diversions is South ad West of the Ne% Corner of Sec. 12, T12 S, %W, San BerncLrdino BiIeridian, Short stated that he to complete it The proposed dm would be approximately 80' high with storage capa- city of about 7,000 acre feet. The act ion will have no particular effect until the District is ready to construct a dam. At that time, the District would not have to prove its rights to the waters of the creek if due diligence is observed. After completion of the application, the Water Rights Board will communicate with any property owners who might have claims against this water and who might want to ob- ject to the granting of the permit. If there are objections, there would be a hear- time ago, he had gone to Sacramento and filed en application in the is filing maps which will complete the application and &l%8l has until Bdarch 2, 195'7 I w* Ward vs Attorney Dennis read his letter to the Board stating his opinion of Hallmark the bid challenge made by Attorney Feist on behalf of Ward Garist. Hallmark Const. Co. as af this date; they weFe from: Yost & Gardner, Bngineers, Phoenix; DOw Ostia, V.P., Valley National B&, Phoenix; George Gavin, U.S.F. & G. 1 Phoenix, Co. The Executive Secretary then read three telegrams endorsing I The Chairman recogniaed Attorney Peist vho introduced Attorney Fletcher. Mr. Flet- cher stated that Ward Const . Co. had Grit a great deal of money bidding 011 Unit "13" and that they are now interested in finding 6ut whether bid instructiom we going to be complied with or whether there will be items waived hiace under these circum- stances they feel axre they would have been the low bidder. Be said Ward Const, Coo had lost bids before due to the same sort of informality and theJr want to find out where they stand for futnre reference, Fletcher said his investigation leads him to believe that Hiir. Hallmark is a resident of Arizona and whatever business rela- tions he has are in Arioona. He said he would like to hear from Esr. Hallmark as to whether this is correct and also what contracts he has perforrred in California and what assets he has in California. He said 1. C. Losoh Co. is listed as a partner- ship which has had credit difficulties and challenged Losche's financial responsi- bility, Director %aid asked &. Bletcher if he thought Ward Const. had spent more than an~~ of the other nine bidders on Unit nBn. Fletcher replied, "No. Attorney &ore, representing Hallmark Const. Go., interjected that the contract is not with prlr. Losch and to discuss his financial position ia beside the point. He also stated that his clicmt is prepared to wswer all allegations ard W. Hallmark is willing to firnish any information the Board may desire and that such information would be submitted promptly in writ bg. Ir, Fletcher said, with reference to Hallmark's U.S. F. & G. bond, that bonding com- panies are happy to accept the premiums but not 90 happy to do the work if called upon. Zlngineer Short challenged the remark eLnd observed that this particular bonding company is, in his personal opinion, one of the best the contractor could have. for protecting the District; in the past 12 nmonths this same compmy has been obliged to take over in three cmtracts under Short's supervision ad have performed and com- pleted the contracts in an exemplary mnner, He stated ftarther that his firm has as- Sur& itself that RdImark canst, campany is qualified to do the mrk and on the ba- sis of a confidential report, Short verified that they &re financ&Ally stable and in a posit ion to do the work. Attorney Dennis pointed out a number of irregulcrities in the Ward bid an$ said it is not unusual to have irregularities of this type in any bid, He said, however, that this Board will have to make a boas fide effort to mke sure that no sub engaged by Hallmark must receive more than Q of 1% of the contract. Director Rogers pointed out that time is of the essence and the letter of intent was issud to Hallmark for the purpose of allowing the contractor to order in time to do some good next summer. Attorney Dennis restated that there is no irregularity in the Hallmark bid which could not be waived by this Board ani that the Board had acted in good faith, Director Zahler stated the opinion that it would be a good idea to get a financial report on Hallmrk Const. Co. He then moved that the Board get a financial report on reports also as per Section 15 paraeaph 5th prior to February 14, 1957. The motion, seconded by Director Rogers, carried. Attorney Dennis advised that the Board should n I the HallmeLrk Const, CQ, Ebnd ask my other oontrabctofs willing or interest& to submit also get information to refute the allegations made by Vard's attorneys, Director &gerS.disagreed stating that nothing but hearsag evidence has 3-n pres&edm At- torney *ore reminded that tb all&& ions are against Losch and that it is with Hallmark that we have the contract. Bl[r. Hallmark then made a state%& in response to Attorney Fletcher's question re his California assets saying that he Owns between $70,000 and $80,000 worth of property in California and also maintains $40,000 in eqtlipent in this state. He said also that he is a resident of California. Attorney Moore pointed out further that there are actually no allegations against Losch buti only implications, For the protect ion of the Board, Director %dd moved that Hallmark Constr7act ion Co. answer the points in Attorney Feist's letter of January 30 to the satisfaction of the Board. The motion was sgconied by Director 'iiahler md carried with one dissent- ing vote (Rogers) Ebnd one pas8 (Fry). Director Zahler inquired whether Hallmark Coast. Company is licensed in California and was assure5 tkt they have an "A" license in this state, I -2- I a, C. Losch made a stateaent in which he infomed the Board that there had never been any disciplfnarg action taken against him by the State of California and there had ever been a judgment or lien on any of the 675 contracts he has completed sue- cessfully and that he has never undertaken any job which he had not cornplsted. %k. Hallmark also mde a statement on behalf of Losch regarding work he had done for him at Camp Pendleton three years ago. Conservation The Secretary was instructed to refer the letter from the "Don't Committee of the move. 3gngineer Short said he believes it is the intention of the Cormittee to use some of the money requested in connection with the campaign necess- ary to promote the bond issue for the 2nd aqueduct and thiriks this District therefore should have quite an int ere s to Schwabacher The Secretary was instructed to ask Schwabacher and Company for 100 sale on February 14th. Social Sec, Approval of the Social Securi$y agreement was ordered placed on the W&8te Yster Committee" (dated 1-25-57) to the City and to notify the 3111.1 extra brochures and to ask that D[fs. Rafferty be present fur the bond next agenda. Bills Bills for January fcks, 1689-1719) were approved on motion of Director Secretary's salary was ordered reviewed by the finance cornittee and Director Rogers txecutive Secretasg waa instructed also to present a financial report to all direc- Rogers, secon&ed by Director Bwald. The subject of the axecutive SUggeSbd that %he Attormy be paid every month instgad of every six months, The tors each month which would reveal the carrent status of the budget . Treasurer The treasurer was instructed to inspect the Boyle Contract to make sure their bill for Improvement District Eo. 1 is in accord with the agreemat. The attorney stated tbt the Board is proceeding properly in payment of 1 - bills since the "D does not require that roat ine bills be approved prior to payment. Unit A-2 angineer Short re2orted that plans and specs for Unit "A-2" will be ready for approval on February 14th and that the notice calling for bids could be published on February 21st. WiIi 'could then receive bids on %arch 6, 1957 Airport The letter from the County Department of Public Works under date of February 4, 1957, was read in which it was stat & that the County would like to obtain water for thg Palomar Airport by connecting to the new pipe line, A master plan of the proposed airport was erielosed, The letter was referred to the Water Problgms Cormittee and 3hgineer for recomeadat ions at a hter meeting. City & Water A letter from the City of Carlsbad under date of February 6, 1957 was Distribution read in which it was stated that the Council is considering requests from two property owners South of the City to annex to Carlsbad, The water distribution problems involved were t.mned over to a co.mittee and it was re- quested that members of the CNED Board meet with the cornittee to discuss the prob- lems. The matter was referred to the Water Problems Committee and Director Rogers agreed to arrange a meeting with the City committee. mger Director Zahbsr urged that the Board give consideration to the employ- on this matter uat il after disposition of the Xutual and Terramar. Chairman Fry or- dered that the Water Problems Cornittee study the subject. hexat ion Xr, Irwin Kelly said he is a meniber of a group considering coming in- & Mutual to the City but expressed concern over the possibility of double water cost8 due to city taxes and possible inclusion in an improvement dis- ment of a manager. Director Rogers said he thinks we cannot decide trict South of the City. Director Bald stated that inclusion fees would be perti- nent only to those in the Utxtual service area. Kelly pointed out that there is a time element involved and before the airport goes in they want to be sure of the ad- vantages of City zoning. City & Director Sraald expressed the vfiw that the City should get into the Water water business and get in right away, -3- C0RBE)SPOBTDEJGE : 1, 1-31-57 - Copy of letter fron Boyle angineering to bidders on Unit ?'AH, re- jecting bids, 2, 1-30-57 - S, D, County Water Authority -- acknowledging certificate re changes I 1 in boundaries. 3. S. D. County Water Authority -0 1-31-57 - refanding overpayment of annexation fees in mount of #ZOS.OO. 4, County Auditor, Current secured taxes to 12-10-56 -- $9,030.55. 5, Schwabacher & Go., -- 2-2-57 -- Official statement of Pebruary 14, 1957, 6. County of San Diego - Surveyor's Office, 140-53 -- recommending budget for in- spection charges (Improvement District Eo. 1). The charges were estimated as- follows: Insp ect ion Unit wAr' $2,500 Charges Unit 'Bn TOTAL 3,500 $rn &gineer Short assured that o& the actual costs would be charged, Sari Nkrcos The Attorney reported on revisions in the contract which the S&n luIar- Contract cos Board has already adopted and which the Attorney stated he would have ready this week. Mer review of the changes approved by the San BBarcos Bod, Director Rogers moved that the contract be approved according to the terns outlined. The mot ion, seconded by Director hald, carried unanimously. It was agreed to send a letter to the San Harcos Board expressing appreciation for their cooperat ion, D 2nd Director Rogers reported that it has been estimted that the 2nd Aqueduct aqueduct cannot be completed before October 1, 1959 since there is pass, plans and specs to prepme, etc. On motion of Director Rogers, seconded by Director &ala, it was agreed to write a letter to the Authority pointing out the E gency of this matter so far as CBBllllD is concerned since this means CBYD would not have water during the irrigation season of 1959. Hinton Mr. Dawson commented on the proposed dm in the Los Lomas Canyon and Sit e asbd when a dam migbt be built, Bngineer Short said this is not to state since he did not wish to make just a gaess, He told Pr. Dswson that the plan is only tentative and the 0-nly reason for filing is to avoid confusion in the future; if there were other filings before the dam could be bnilt, it might be very costly to the District , Dawson stated that the land involved bas several thousand oak trees and has been considered for a state Brk. He said that Sloan had not re- commeded this site. Director Rogers said that v$,~ %rue but t'nat Sloan had gone with him to inspect the site. Short said the m&cimum run off here is about 400 acre feet. Dawson said no water had run in the stream for three years. &. Cannon enquired regarding the amount of bonds to be sold on February 14th. Accountast On mot ion of Director Rogers, seconded by Director Zahler, it was February 14th, the Board should engage a competent accountant to evaluate the bond bids. - prelirainary work involved, cost estimates to prepare, a bod issue to - known. Dawson asked re.costs and the flngineer said he was not prepared I declared that if Kr. Raffertg is unable to attend the meeting of -4- On motion of Director &&Id, seconded by Director Rogers, the meting was adjourned to 7:OO P.N., Thursday, Februarg 14, 1957. I 'J" >/,? < ; R /-,b ,,i, d&, 'i ,/!k Preside"nz; of Carl sbad Xuni ATTBilST ; kd. h Secretary of the Board of Direct or s Carlsbad BiIunicipal \Vat@ District I I -5-