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HomeMy WebLinkAbout1957-03-27; Municipal Water District; MinutesNlXWsS OF AN DJOU3E.D =GULAR Ar&TD?G OF 'Pa CMLSBAD J5Ul?ICIPXL iVAl?Xi DISTRICT IBLD OX URCH 27, 1957 AT 7 :00 Po%. AT 2960 PI0 PIC0 DBIVd, CARLSBLSD', C& IFOAZUIA. TU FIRST Ti?O HOUB OF THS IvZdTIXG %!dB H&LD JOIXTLY Isn!B FEU CITY COUNCIL. Dirsctors prasent: Ivald, Fry, Kelly, Eogers, 'tahler Dirsctors absent : None I Edmbm of thg Council pre8a-h: Castorsna, Ledgtqwood, Baird, Robinson, Hdtan Nlsmbqrs of the Council ab+-;sat : 30% Also prltsent : Attorwys S'mith (City) and Dennis (GIUD), City Uanager Nelson, dngin- cerS Short (CIMD) and Kubota (City), and Xessnrs ads, Cannon, F+nnel, Wgstrl)e, Tuck, Wood, Jarvis, NcLaren (Blsde-Tribw ) , Hardin, et ala Ths meeting was called to order by ths Nayor who statsd that the City is interested in getting into the water ixlsinsss and wish& to discuss the mtter. Councilman Baird of the Water Co.mittse stated that the City is nm in the process of annexing Jarit South of the City and will soon-r or later have to be in the water business. He pointed out that ths prine reason for incorporation was to assure the residents of a firm sup2ly of water. He predicted that soomr or later the bound- ariss of the City and CWXD would be ths same ar61 that the City must look to the ClQ'i3 for a firm supply of water for the areas taken in. Ha said the Council wishes to know ths feeling of the CU'D Board re ths City becoming water d.istributor for ths Nutual area. Chairman Fry of thn CiYJVD Board stated that the policy of the Board to date has been to v,;holesala watAr only and ths CIZYD is not eager to get into the retail business. " all aqas now in the City and ala areas to be waxed in the future but not now h 1 Director Rogers said that in his opinion the question of whather the City goes into the Water busiwss is contigent upon its acquiring the Nutual. He said that a straw Vote had revealed that about 12-1 favorad the Eutual bqbg turned ov$r to thn City but a majority of ths shareholders had not re sponded. Tho question has been put out again and there are now 430 votes in favor of the sale to the City and about 10 Votes against. But we still have to have 1,000 votes to authorize the sale and af- ter that the! City would have to pass a bond issuq ad after that the stock holders who think the price is not fair could go to court for a ruling. Therefore it is not certain that the City is sing into the water businpss at all, Rogers said he bsliqvas the City's plan is pramaturea Chairman Pry stated that th? big concern of ths GEQ is Over the areas outside the or soma othsr agency. Council Lsdgnrwood said hs wondsrsd aboat the possibility of acquiring Tarrmar first as an opening whereby thn City could becow distributing agnnt for ths areas to the South. He said he believed the possibilities for acquiring Terramar had not been thoroughly explored. Director Zahler said hn believes tha CXXD should reFain a vrholnsalpr only and that he is not in favor of ths City coaicg in piecemeal -- that he would like t 0 see it all dons at one time. He state6 that it is his hope that the City ad GGD bounda- ries will one dw bg the saw. n;iayOr Castorena said hs fwls that tha discussion is not prqmturp and that the! City must be; concprmd with t hings that take planning ad time. Director Bwald suggested that tha anginear outline? the master plan which the Ci,@B hhtual and Tqrramsr etrd who would bs -b& rstailirg; agpnt; it could bs thn City, mum, , had ordered, lhgineer Short (Boyle dngineoring) stated that the study is not pt complete but that the layout of physical facilitiss is pretty well dstormimd. His off thq cuff guess was that the total system would cost in the neighborhood of $3,0G0,000 which would include the devolopwnt of the Hinton Bnservoir site. This muld be in addi3ion to the $1,35C,OOO authorized at thn polls on October 5, 1956. He outlined tho bas- ic system as a large loop which would bc! rninforcsd by a lin~ across thq cmtw and -2- I would have lines radiating outward, This would just about enable any area within thn District to bq served from two dir2ct ions, He said that whether tho ldutual r+- mains the same or whether the City takes ovqr there would be so@ use of tha San Luis Rey which would m2an there would be =me water coming from tht source merged with Colorado River water in the Iiosnrvoir. He said the Terramar line is included in thb master plan. and a number of regulating storage reservoirs varying in size according to ths service areas concqrnd are included also . Ilha sims of the re- SorVOirS mab no allowances for fire protection which would ba necessary in an ur- ban-system. Vhn the systqm reaches its ultimata dnvelopmnt it will not be ~OSS- ible to serve it by gravity and a small pumping plant would b? requirsd. This plan is based on the assumption that thq sncond aquaduct will be constructed at the location pr9smtly considered and will be maintainpd at a leva1 corrqsponding with that of tha present aqueduct , Ulti,mte completion of the plan would be far in the future and if industry demands a large amount of water the system would need re info rcement . Director Rogers asked if a rsple!ishnt of the San Luis Reg valley would have any influence on ths sizq necessary for tho Hiliton Reservoir, Short replied it would not; thst in his opinion the. benefit to tb Carlsbad area would not be enough to replace the Hiaton Reservoir, and as long as thq Hinton Resor- voir has to be built, it should be built to full size since it would cost relatively 1 it t le. morn , Councilman Baird asked how much of th.? cost is allocated to thn hssrvoir. Short answered that it is about $1,000,000. Baird then asknd if thq Reservoir would b~ outside the District. Short said it would but that service would be within tho District. Baird questioned that a bond issue could bc! floatod whsn such a great proportion of the system would be outside the City. tngfnesr Short said he was sure no one had it in mind to construct these facilities in thnir entirety iqdiat?ly and stated that the plan is schqmtic alld it is not intended to tie down tb facilities to a sBcific point. He pointed out that the City is part of Yne Cb@D and that the plan of the District must include facilitins that would insure aa adequate water su?ply to th? City. He said the City would de- rive considerable benefit from t'ne dnv,slopwnt of the Hinton sits and Eotod that in making tho study political boandariss wqrg ignored; the only factors considfled were topography which necessarily dictates future devslopmat, and also thn service areas, Baird again axpressed doubt about ths SUCCPSS of any bond issue and Short explained that as yet tha cost estimates for this systqm havs not been made and that certain- ly no regard had been given to the methods of financing. Hs said hs doubte& that this systpm would be constructed from the proceeds of a general obligation bond is- surs and that thoss portions aich would be of general benefit (such as the Hinton Rossrvoir) should be paid for on a genqral basis; this would mean a revenue bond issue whereby tho% usins Yne water would pay their proportionate &ars of the bill. Director Rogers stated that sinco we. have taken an obligation fir ths wxt 30 years the! CMTD is hers! to stay for at lsast that long. Hs suggested that the City should all of thn aroa of the CWJD and the obligations involved or whsthr it wants to take over certain areas aod let the! rest go. He said he did not sse WQT the City should be interested in only csrtain areas. Hayor Castorena said the ultimate goal of thq City is a long way off but since lands are being arincxed it is necassary to do soma serious planning an3 discussing in order to coordinate thinking. taka stock and decide just what its political aims ar- - whsthsr it wants to take I Director lwald pointed out that water planrhg is only on9 stage of City planning. He said there will aon be prqssure for devslopnmt in th+ area to tha South and the City is in the logical posit ion to promot e it s orderly growth. He urged that the City acquirc? this important cormodity (water) and get into thq watnr business by stages. Director Knlly suggested that thq City think more about tha acquisition of Terramar, " -3- He said thn Nutual is operating sat isfact orily and ths City should think mora of taking over the area out side the Xutual. Chairman Fry agreed that if ths City took over Tc?rr&mar and opsrated it success- filly, it would bad to the acquisition of the llIutua1. 1 Director ntwald asked thb City Attormy what would happen if tho City went into the water business tomorrow. Tks rsplg was that there is nothing to provsnt it. Director Xogers stated that the new pipsline will have connections evpry 2,000 feet ana the idea is that if the CJgD stays in the wholnsals business some agency would hav? to be preparsd to handle th rstail busimss. He noted that there has bpan a move to set up an Improvement District to the South for delivery of watsr to that area and plans have. been prepared shoving costs, stc. Hey noted that if tho City took ovnr tb job of distributing water it would roake money in sales and tb CI&D would still havs to gay off the bonds which would not bo fair. Attorney Smith said normally Cities do not interxi to make a profit. Director Bwald said he could not sne that this is any different from our present arrangswnt with t hs Nutual. Dirwtor Rogers said that was true but the llutual assums all of ths responsibility and in tha cas3 of tha City, it ucould bn just a mattar of reading the @tqs and making a profit. I Former Mayor Ide was called upon: He said that when th+ pipe line is completed he would assume that ths &Iutual and Terramar will have to take care of watqr distri- bution as far as they can go and that the lands to the South, if they cow into the City, could serve th~mselves, He said he gocs along with thn large grcsntag? of the c it issns who bslibvp the City should nventual ly takn over distribution for the entire City. He agreed it would take a long ti:w to acquire the Iilutual and it raay take a long time to acqaire Terramar. He said that the City out sidq tha se two areas should, until annsxation is conplstn, not tab upon itsnlf ths distribution to those areas but should serve those araas in the City outside the Xutual and Terramar . Attorney Smith said the City could legally sgrve out side City limits only through existing facilities. Mayor Yde asksd if there was any area in the City which the Idutuwl could not serve, DiPeCtbF Ro&r st mswe was '%o'', gde then observd *ha,* tha City at this time has no reason to want to swvp watm. Director Rogers agreed. Mayor ads stated the opinion that thn CI?Etll should rnlinquish to tha City as it ac- quires more territory, Director Roge~s said that if tho City annexes territory there is no qwstion that the CXfiII would OK its becoming a distributor of water but there is no provision in the rviGvD Act which would permit the grazting of an exclu- sivp franchi % . Nayor Castorsna said h~ knew of no intention to ask for an exclusive franchise. Attorney Dennis stated that there is no vovision in tho Act which says the District must reruse to retail water but hp said the quost ion was opnn siaco there have been no law suits setting precedents. He said it is possible to control this situation through rate charges and regulations. He said the policy of tbe Authority is to deliver water only to IIE'YDs so them, is no way of gntting rid of thq C!&?XiI. Director Rogtes stated that der the presq& pipe line construction contract the water is to be metered to the Xutual at the! crossing of the 14" linq tbt runs from Calavera to Carlsbad ad all water will bo etsred at that point. If anyone takes water from bayord tbat point otbr arrangerpnts will have to bo mads. If the ra- sidqnts of th- propossd 1mprovamqr;t; District No. 2 want water, the system will have to bs set up ad whethqr they bslong to the City or not is of little conse~uence. City Nanagpr Nelson said that the City anticipates eventually having the Xutual and that it is t& orgaization which would be counteci upon for maintsnance. If the I -4 - City gets into tb distribution business out sido the Xutual tha Public Works De- partment and City drypinew would take charge but would be better equipped if the Nutual were acquired first , Hornever, Nslson said, this would not be necsssary be- fore starting construction of facilities. Director Rogers stated that the Mutual Board has gone as far as it can re the sale of t& Xutual. He said 'ne doesn't think it is the function of that Board to Urge thq shareholders to m11 if they don't want to. He suggested that if the City wants to acquire the KlUtual it should organize to g9t t'he shareholders signatures and if the City does not acquire it, the City should not 3s in the water business. Councilman Robinson said that a citizens' committee for which sight names are now in (more arb needed) will be appointed at the mxt meeting of the hlutual Board. discuss ths mtatt9r ad determin! the solution. & said there are 90 days in which to facq th? gro3lm but the actual problem has not yat been expressed. H3 said we have to assxwna tbt the Nutual and Terramr are a long way from being acquirad by the City, Hs pointea oxt tht the City has to raise funds ard the pri-nary source is a bond issue for the acquisition of both, He sagzestgd it would be woll to find out which area should b2 first to have a decision. Director lwald noted that wa have the annexation coming u2, tkmt the boundaries have bean set d the qunstion now is "Who is going to serve water to that area?". Director Rogers said this is not a pressing problem at this time and that tb only written comunication the G@D has trad relativq to getting watsr is from tha Air- port ; that they have bqen assareh that they will have wat ere Hr, Cannon of ?lerr&mr Water said hs had nevqr been asked to sell his company and suggested that so.mono make him an offer, I Fo action is nxpgted until April md this is mcng8ary in order to have time to 1 councilman Robinson said City's th-ing is that tb p~opla Shoizld come into the City and the question is whether the City can bring logic to bear on those 8,000 acres to get them in. Dirsctor Rogars stated his hops that ths City dons not put itsolf in the position of forcivle; people into tb City and stated cattsgorically that ha is not in favor of pressure. Councilman Bobinson said he can syrngathize with those who do not aant to come in but at tho saw tim2 it is to thq best interests of tho City to have them join. Ht, said, howevg, that if it is not economically fnasible for tham it is just for them not to cow in but at the same time thq City fought for this and mde tho sc? lands valuable ani this should be given consideration. Tharq are benefits to ba offered over and above water and Carlsbad my be just if ied in asking tham to cone in. HOT]- gvsr , he stated ha does not endorse thn pressure mqthod. Dirmtor &ald said 16 should look at this annexation from Yip standpoint tbt thg boundary comission has approvd it . Counci1rm.n Baird noted that in ordsr to bring a pipe lina in a $20,000,000 area took on the obligation and now an arqa araomting to Z$ of that is soing to tap on and be a drag ami the Ci%y will have to pw their bill. Director Rogers argued that thq & ople of that area aro Bying their shre and are getting nothing, If wg snll more water wa will cut costs and tha,t will makq it possiblet to cut t'ne rates for thn City. Councilman Hslton s.qZe&ed that these pnopls are ant-itlad to gat water and should get it but they should bs rpasond with to comn into the City. Director Kslly observqd that tha peopla of the area to the South are afraid that they would be dominated by tha votins in Carlsbad and it might makq it difficult for them to do anything they might want to since they would be dsr City Planning rsgulations. I Director Rogers noted that Lbs~r? >opln had considered a County Water District and in that case they could set watsr irn?rovsm?nts. -5- Councilman Ledgemood said it appsars that the initiative is up to t he City and it should take act ion to prepare to ssrva those areas. Councilman Helton said it is increasingly evU& that tha CX4D will have to hmdle the retail service out side the City but if the area corns into the City, the City 8hould ba in w. posit ion t o snr vq water, I Director Knlly stat& t'mt the coatamplated annexation doas not incld.9 all of the territory to the South and that the problem of who will sarve thg water is unim- portant at this time. Director iSwald said the City should proceed with tb annqxation and be preF?;)Eirrjd to serve water in tha area. Diroctor Zahlsr said he hopes the City can prom4 with the annaafion but it should acquire an agency before attoapt ing to serve such a mall area. Thq k~or wd up by stating that: 1. The City is interested in gstting into the water business as soon as possible ad would lib to continus toward ths scquisition of ths Hutual and Terramar. 2. Thd City is interested in annexing all of thet land to the South. He said b does not bslbvs the City is trying to shove anything down anyorm~~s throat ; that ths only remon for taking steps now i 3 that it talc? s time and thq only way to do the job &&ice is through propg planning, The fact that ~e don't see eyq b aye at thq mo-nt do9sn.t =%tor but it is important to contiaa discussions of this type. A recess was call& at 9:00 P.X. Ths Board reconvonqd at 9:lO P.X. with the following answering roll call: maid, FP~ , Ke ily, Bog- s, Zahldr I CORRQSPON32NC3 : 1. Irrigation Districts Association, 3-1-57 -- Dig-est of bills introducsd at Janu- ary session. 2. S. D. County iVater Authority: a. Ninutes, 2-14-57 C. 8-6-57 -- TaBuktions d. 3-13-57 - Response to CGTD recornandation (2-8-57) that i;mediate act ion b, fdiinutes, 2-28-57 be taken to effect preliminary cost estimtas for 2nd aqunduct assuring spneding of work. 9. 3-18-57" %sponss to CiWD letter (3-14-57) interpreting use of word ''3%TM!LZZZhTt' (8-14-46) ami agra5ing thereto. 3. JeffrGs Banknote Corn_mny, 3-18-57 -- Stating bonds are ready. On motion of Dirsctor gogers, saco,&od by D&sctor Zahlor, the finance cpmittqs was authorized to engage Ijverts & ljsenoff to detsraine what the total paym~&ti dua from the Security- First National, Bank of LA should be at the t im the bods a- delivsrqd and to re- invsst the portion of funds not earmarked for imnqdiats us~ (all but $170,000) ac- Cording to ths recotmenlat ions of Schwabachsr B Co. 4. Pacific Tel. & Tnl. -- re installation of circuit s and reqesting lqttqr from Board ordering sama. On motion of Director Rogers, seconded by Director Zahler, the I Secretary was authorized to writ? th,? r?quq,tad. r, Ipttnr, ., %_e 5. A.I. & 3.3'. Bailway Co., 3-18-57 --4nclosing revised pipe line licenses for ex?- cution. On mot ion of Dirnctor Sognrs, seconded by Director Xahler, th? Presidnnt and Sacrntary wgre au-t'norized to ox2cute ths licenses subjgct to thn asproval of the lngineer and Attorney. 6. Boyle Inginenring: a. 3-21-57 -- $nclosiw S.D. G. & E. Co. slsctricity applications for exec=- tion. The Presidqnt sxncuted %d to th@ S.D. Go & 3. I -6- b. 3-20-57 -- re request of Land Title Company on Clsrason $IsCrow for iiaSOlU- tion aM paymnt of $5,085.60. The Rasolu-tion (Eo. 46) was order& attach4 and on motion of Director Rogers, saconded by Director Zahlsr, a chnck was ordsrsd writta as soon as the kds are available. C. 3-20-57 - SCh+dUla of est iIbt& ~XpsizditUeS. d, 3-18-57 - Copy of lettor to Dennis on Horacs Kelly rigbt-of-way, It was report& bg tho 74n@eer that Xrs, Kelly*s attorney had advised her not to sign tl% docwnts without a Court Ordgr but sh5 is willing to give verbal pmission to cIki$i to go ahd. e . 3-15-57 -- Change orders numbers 1 & 2 (Reservoir) . These o&r s pert inmt to outlet8 In the lim at ths Qmson site were ordered approved on mot ion of Di- rector Bog9rs secordad by Director dwald, and this Smretary was Wderd to keep a record of all such change ordbrs. Social With'regard to Social Sscurity, Director z4fwald moTsd that all qn- Security ployees who work less than 20 hours p@ week should be considered as part t ims einployes s and tkrefor 0 not ?st it 14 to Social Security covaag:F). The motion, seconded by Director Zahler, carried. San Narcos Tb Sqcretary was instruct& to contact Attorney Craaston and urge that the San kfareos Contract shoul6 be ready before the meting; of April 3, 1957. The meting was adjourn4 on motion of Director Rogers, shcondad by Dirsctor Zahlar, at 9:50 P.hL I ATT3 ST : /? ,-> -, -, d .e .c/' /a/7 I. ,e .' . -. , /' ( ,?,.+ , /L . c:q \. - PresideBt of th4 Board &of Dfrnctors Carl sbad Municipal Water .$istrict c/ ,LAY L) L& j -i Secretary of the Board of Directors Carlsbad Municipal Water District I