HomeMy WebLinkAbout1957-09-04; Municipal Water District; MinutesMIJ'i7jmS OF A FiEGULAF, MEETING OF TEE BOARD OF DIRECTORS OF THE CA%SBD IWNICIPAL
WATER DISTRICT HELD AT 7:30 P.M., SZPTEXBER 4, 1957, AT 2W PI0 PICO, CilP&S3RD, CALIFO3JlA
The meeting was ca,lled to order by President Fry. Directors present: Ewald, Fry,
Company) , Henry 0. Harries (Santa Fe Ry. Co.) , Attorney Glenn R. Feist, C. D. McCleIlar,, Col. Harry Price, Engineers Clayton and Kukuk, Attorney Paul Swirsky,
3. H. Kegand, John C. Lyman, Wm. Cannon, Perry Lamb, Donald Ayres, Herb Nelson,
Joe Len, (Len Building Company), C. R. Kelly, Albert E. Metcalf (94l South Lake, L.A. 6), George W. Oliver, Arnold B. Steiner, Executive Secretary A. Stephens
Zowrie, Et. al.
President Fry declared the Improvement District No. 2 hearing open at 7:30 P.M.
as per resolution No, 61. Resolution was read in full by Executive Secretary.
Secretary Ewald stated that the maps on display, showing the general description of
the proposed improvement, together with the map showing the exterior boundaries of
the said proposed improvement district with relation to-the territory iinmediately
contigous thereto and to the proposed improvement district had been on file with
the Secretary of the District and were available for inspection by my person or
persons interested. Said maps were labeled Exhibits IIA-llI, 1rA-211, 11A-31T and 11A-41T.
Secretary Ewald also stated thzt the legal description of the exterior boundaries of
by any person or persons interested. Said legal description was labeled Exhibit 1rB17.
Secretary Ewald stated that Exhibits YtA-l", IfA-2", "A-311 and lfA-,!+l' and Exhibit tlBlf
had been available for inspection by zny interested part since August 5, 1957,
Secretary Ewald reported to the bard that notice of this hearing had been properly
given as shown by affidavits of publication and posting on file with him. The said
affidavit of publication executed by Robert D. Garland certifying that Resolution
No. 61 had been published in THE C-ARLSBJi JOUEML, a legal newspaper, on August 15, 1357, and August 22, 1957, was iztroduced and labeled Exhibit W1'. An affidavit
of posting of copies of Resolution No. 61 in six public places within the proposed
improvement district two weeks before the time fixed for the hearinf on said pro-
posed improvement district, as executed by Max 0. ErJald and A. Stephens Lowrie was
introduced and labeled Ekhibit IlDIf.
A letter under date of August 16, 1957, signed by Attorney Glenn 3. Feist, requesting
exclusion of certain properties owned by William X. Fair (16 acres), and Carlsbad
Industrial Development (25 acres and an option of 40 adjoining acres) from said im- provement district, was read and marked Exhibit !tE-lll, A map accompanying said letter
was marked Exhibit 11E-2*1.
Engineer Les Clayton stated that the Soard of Directors of the Carlsbad Phicipal
Yater District bad instructed his firm (Boyle Engineering) to make a study and report
on the possibilities and feasibilities of distributing water within the southern portior
of the CWD with take offs from tke transmission line just completed. In making this
study, he said, Boyle Engineering assissed the ultimate water requirements of this pat
of C"D and correlated these with the naster plan of the district and, in general, made
the plans for the proposed Improvement District conform with the master plan. Boyle
Engineering consulted with and was advised by the committee of property owners rep-
resenting the pro?osed District as approved by the CID Board 2nd headed by Carroll Kelly. Together they evolved a design for the distribution system to serve the
ultimate needs of the proposed ImprovemeDt District with the exception of storage needs.
The cost for the system complete, at present day prices, would be $726,000. The
assessed valuation was determined to Se $270,000 on the private property plus the value
of utilities estimated at $30,000. Because of the difficulty of financing, the system was designed to be built in three stages, with the initial component to 5e built at am
the immediate sale of $350,000 in bonds. As the area would grow, the remaining com-
ponents would be hilt as indicated by the maps on file as Exhibits "A-1 17, "A-2", and tta-31!. The entire system was estinated to cost $726,000 and allowing for contin- gencies, it'was recommended that the total bond authorization should be in the amount of $sOO,OOO. The Engineer pointed out the fact that we are in a rising price stage
and that costs are expected to increase further. Engineer Clayton stated that he was
familiar with the district, the proposed improvement distric%, the work proposed to be
done and the cost thereof and that in his opinion the purpose of the district indicated
on the map outlining the exterior boundaries of the proposed improveraent district would
be benefited by the proposed debt for the proposed purpose.
Kelly, Rogers, Greek; absent: None, Also present were IWry Hof'berg (TRn Building
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the said proposed improvement district had been on file and available for inspection
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I estimated cost of $332,400 plus an allovance of $17,600 for contingencies requiring
Mr. Henry 0. Harries, Regional Tax Commissioner of the A.T.& S.F. RY. Company,
asked for the exclusion of the right-of-way owned by the Santa Fe Railway from
with.in the present limits of the City of Carlsbad from this proposed improvement
district if the exclusion of the Fair property was granted. He said that the
vake of all of the. property belonging to -the railway within the proposed district
was assessed at $80,000 and stated that if such approval was not granted his
company was prepared to file a protest and request for exclusion of 211 of the
railway property within the improvement district.
A written protest under the date of September 4, 1957, signed by Max Len, was
presented. The letter requested exclusion of the Len property (1,000 acres) from
the proposed Improvement District and asserted t,hat no benefit would be derived
by his land being included in the proposed District, The letter was marked Exhibit
flFt1 . I
Mr, George Oliver, representing the hk-tcalf property, asked how soon this property
wou-ld be benefited. Engineer Clayton stated' that in view of other developments in
Northern San Diego County, the development here should be relatively rapid.
With reference to the exclusion request by I@. Fair and Carlsbad Industrial
Developnent, C. D. McClellan stated that early development of this requested excluded
area is desired and it is felt that the proposed phis would leave water at some
distance from the site. He said there are possibilities vhich wou-ld lead to earlier
development for industrial properties and pointed out that if this land is annexed
to Carlsbad it would be the only land in the Froposed Improvement District also in
the City. I@. McClellan said it may be possible to get water either t%lrough the
Terramar line or from the City for which plai are under study. Director bgers
questioned that the City would be in a position to deliver water. Mr. McClellan
stated that the possibilities of getting water fron the City are just as good as
getting it from the Improvement Mstrict,
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Director Rogers stated that Terramar is authorized under terns of Ordinance No. 9 to serve only its present area and there is no authorieation for selvice of water
outside that area. He stated that this point should be well considered by the
applicant for exclusion. Attorney Glenn Feist said his client realized the
possibility that they may have to come back and ask for annexation but they do not
feel this will happen.
In response to a question from Director Kelly, Engineer Clayton stated that it
would be at least 3,530 to 4,000 feet fron the end of the skeleton line to the
Fair property, Director Rogers asked if Ecke's 6" line could be used. The Engineer
said he did not know,
Mr. McClellan stated that the risk is recognized but if this land is imluded in the
proposed Improvement District there would be no way of getting out of the bond
obligation, and exclusion would allow for more flexible a.ction in the future.
Director bgem questioned that Cannon's line would be adequate to take care of the
needs of this tract,
I@, Oliver asked if anyone had worked out the cost of additional taxes under the proposed plan. Engineer Clsyton said that, based on estimates of present day values,
the initial bond sale would cost about $5.00 per $100 of assessed valuation, The
interest the first year would be $17,000. But as soon as water hits the territory,
the valuation wonld be reassessed and the tax rate would go down to about $1.00 in
Addition to the re*gular tax rate.
With regard to the Len property, Director Rogers stated that his land could not help
but benefit from the Improvement and that if the proposed fir Port Site is condemned
there would be no way for Len to g9t water except through this proposed Improvement
DHrict. p9e saicl Len! s taxes this year were $454 and that the amount to be paid
after the iEprovements would be roughly $1,500 per year. Mr. Oliver said it may be
some time before benefit would be realized.
Attomiey Glenn Feist suggested that the Santa Fe request for exclusion and that of Mr. Fair be considered as one. Mr. Harries clarified his position by stating
that the part requested for exclusion is that part within the City of Carlsbad.
Director Ewald stated. that the view that the Board should proceed with UtROSt
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caution in the face 02 what had been reported to him by &- RaffertY of
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Schwabcher & Company.
advice be submitted i
that since the bonds
He said he has written to Schwabcher & Company asking their
.n writing. Unless other arrangements can be made, he said
are not saleable at above 5% it would be necessmJ to go to the
legislature for authorization to raise the interest rate or wait until the bonds be
saleable at a lower rate. He stressed that every one should be informed as to the
costs involved and stated that he would not wznt to be a member of a Board which
would get people into an untenable position.
On notion of Director Wald, seconded by Director Kelly, the requests of the Wta Fe
Railway Company and Mr. Fair were granted and the attorney was instructed to draw’the necessary documents which would exclude their properties and the optioned indus”cia1
tract from the proposed Inprovement District.
On motion of Director Iielly, seconded by Director Ewald the request by B. Len for
exclusion was denied. The Attorney and Secretaqy were instructed to draw the notice
of intent to change the boundaries of the proposed Improvement District and to revise
the description accordingly.
City Manager Nelson asked the engineer to prepare more data. regarding the actual costs of the proposed Improvement District outlining how mch would be paid through. the sale
of water, how much through taxes, etc. Engineer Clayton said he would deliver %he lett
to the Board giving specific examples of costs in time for the next meeting.
On motion of Director Ewald, seconded by Director Greek, and unanimously passed the
hearing on said improvement district was adjourned to October 2, 1957, at 7:30 P.M.
at Carlsbad City Ball, 2960 Pi0 Pic0 Boulevard, Carlsbad, California.
The President declared a five-minute recess at 8:55 F.M.
The Board reconvened at 9:OO o’clock P.M. with the following directors answering roll
call :
ETdJLD, FRY, :KELLY, BOGZRS, GEE%EK.
1 School Eonds Representing %he Carlsbad Union School District, Attorney Feist asked
that a representative of the CMWD Board be present at the school board
meeting of September 12th when their forthcoming bond issue would be discussed. Director %aid volunteered to appear on behalf of‘ the CM Board.
Oceanside Attorney Glenn Feist stated that there has been som misunderstanding
Annexation concerning the annexation of territory to Oceanside. As representative
process of forming tentative plans and that if the City of Oceanside should accept
the plan, certain sewage treatment facilities would be constructed on the property
and deeded irrevocably to the City of Oceamide. Director Rogers suggested that there
should be proviso to make the plant available to all the surrounding territory and
that t3.j-s should be worked out with the City of Carlsbad. Attorney Feist requested a
letter to the effect that there are problems to bs worked out. He agreed that the
plan should be coordinated with the City of Carlsbad plans. Director 3ogers suggested
to Mr. Peist th.at he write aletter stating that in view of our letter to Oceanside
that City would take no action and asking that CNJD clarify its position. Director
Kelly suggested that Vista be included in the planning.
Corre spondence ;
1. County of San Diego, Road Department, 9-3-57 -- Excavation permj-ts for Terrm
and Graham Kelly connection.
2. Royle Engineering, 34-57:
of Prescott and Cornell (Union Title) he stated that they are in the
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a. Recorded notice of completion for Units “a-2” and trB” and the 3eservoir.
b. Change orders 1, 2, 3, and 4 for the mtual Pipe Line & Construction Company.
c. Invoice for plans and specs on Terramar and Kelly meters ($813.12); study
design, maps and descriptions on Improvement District No. 2 ($1,000);
operation of transmission mail for August, 1957 (@DO). On motion of Director
paid.
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Bills Rogers, seconded by Director EBald, the sums listed in the invoices wee ordered
Meter Engineer KW stated that four local contractors (Don Eubbard, Leo
Connections Williams, Anderson and A%binson, and btual Pipe & Construction Company)
and G raham Kelly. Only one proposal had been received (From Nutual Pipe & Line had been contacted for proposals for making connections for Terramar
Construction Company) which. w8s opened at thds time, The estim-te for the work of
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the ]<elly connection was $2,991 and on Terramar Connection $13,915. fib0 Cannon said
he believes more proposals shou.ld be obtained before the decisioa is made. Director
13;wa.ld said he thinks soxe of the local contractors are not fmiliar with this type of
construc-bion. ~k. cmoa suggested contacting 14r. Larson in Oceanside. On motion of D$.rector EiraLd, seconded by Director Rogers, it wi?s agreed 'GO refer tf?e proposals to
Messrs. Cannon and Kelly znd the Engineers for final decision.
R. L, \&&son Secretary Ewald reported that R. L. Watson had s&xitted a map of his
ad accepted by resolution well in advance of the prepWati0n Of c~@D'S Plans.
'dater Director Rogers subnitted tk?e following report on water shortage:
Shortage
shortages were approved: Iiainbow, Ehieno-Colorado, Valley Center, ?.incon, Poway ---
a totdl of 11,200 acTe feet. Of this mount, the City of ,Sari Diego is to furnish
9,500 acre feet. ,Sari Dieguito turned back 365 acre feet of water in storage without
charge becazse they have a secure contrzct, wTth San Diego City. Our 300 acre feet wa.s on the next priority and Mt. Helix tentative17 agreed to furnish 350 acre feet at
the same prlce as that charged 3y the City of San Diego, or $59.00 per acre foot.
"The, manager of the Authority took the view that our situation is different from that
of the City of San =ego and Helix in that we had never paid for the vater and had
Caslsbad and that we were pumping from wells in the 3211 Luis Rey with high chloride
content in order to save water until the com;?letion of the second aqueduct. 1 also
pointed out th.at the delivery cost of water in Carlsbad is $€!O to $9 per acre foot
through the 3?utual. And 1 pointed out that we have a new pipe lhe to be paid for
and any water released is that mch less on which we can collect the override ad thzt
I could see little difference between our position and that of Sa Diego City,
"If we make a lover price than San Diego they will t&e our water first for sure,
If we make provision that our water 'ce taken after that of the City of Sm Diego, it is possible that it may not be taken at all and in that way we could conserve
OUT supply. An imqediate decision is necessary,
I1I recommend that we advise the Authority and Mr. Wright, head of -the sub-committee
that if our water is taken before or simultaneously with that of the City of San Diego
the price will be $50 .OO, but if our water is taken only if necessary, after Sari Diego's
is used, the price will be storage charges plus an override of $15.00 which is what
we are chargizg our om people for wholesale water."
Direc-Lor Rogers stated that the allocation of water will be done by a coxr&ttee
headed by Leroy Wright. On sotion of Director Fbgers, seconded by Ilirectoi: Kelly, the foregoing recommendation was accepted anti 2 letter ordered sent to Mr. Vright explaining the CMVDTs position (copy to be sent to Authority).
Oceanside Director Rogers subrztted the following report re the Ocealzs2.de Contract:
Contracr
hemside. At the last report we were getting about two acre feet per dq. To allow
this water to be run as overflow for heanside, that aj~oc.nt would probably increase as the rainy season approaches and we wou.ld therefore be paying transpori;ation charges
for water for which we have our om pipe line as alternz-Le, a loss of $6.U per acre foot to CM4m. There is a possibility that if we ask @ea_rlside to reduce the mount
to that requiired to supply Korth Carlsbad they may prefer to shut off the supply
completely.
"In my opinion, we should advise the Nutual that if they take more water than is
$60% in addition to the regular override of $u+.OO oll
(h htion of Director Ewald, seconded by Director -bgers, the scretary was instructed
to writs a letter to the kbtual asking that it hold to one acre foot (or less) per
day, or whatever is necessary to supply North Carlsbad.
Trm~~~r's Director Ewald presezted a Treasurer's report as of August 31, 1957 Report showing the f olloving balances. General Fund : $15,887.53 ; Improvement
made by Terramar and Graham Xelly and totaling @8,90. It was noted that the amount
I subdi\&ion on September 10, 1956 and it was approved on O&ober 13, 1956
"At the meeting of water agencies held on Azgzrst 30 , 1-95?, the folloxing
only incurred storage charges, I pointed out that this wak? is not surplus to
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"Since the openhg of the aqueduct we have continued to take water from
I necessaq tQ supply I\Jorth ClarlsbF;d", we will have to charge the trmsnzission cost of
District No. 1: $207,073.67 which includes the deposits for connections
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due the contractors for IEprovement District 1Jo.l is $159,0 57.52 leaving an actual
balance in the Improvement District KO. 1 Fund of $2$,516.15.
flew President Fry appointed Director Greek to serve as Treasurer thereby
Treasurer excusing Director Ewald from the duties of Acting Treasurer. The
seconded by Director Kelly.
appointnent was ratified by the Board or! motion of Director Ewald,
Bills Bills for August, 1957, (checks Ro. 1917-194.7) were approved on
motion of Director Rogers, seconded by Director Ewald,
Attorney's On motion of Director Rogers, seconded by Director Ewald, the Attorney's Salary salary was raised from $ZOO to $29 per month effective September 1,
1957,
Office A discussion followed re the work load of the Excutive Secretary.
Work Director Rogers suggested that the finance committee study the
feasibility of hiring the book work done. The Excutive Secretary
stated that the book work is no serious problem and that part time general office
help would be more valuable. On motion of Director agers, seconded by Director
Kelly, it was agreed to allow the hiring of a part time assistant for up to twenty
hours per week as needed at t'le rate of $1.75 per how.
Overtime The Executive Secretary reported that over the past four months a
worked by her and asked that compensation in some form be authorized. The matter
was turned over to the Attorney for study and recommendation.
total of sixty-two hocrs in excess of forty hours per week had been
& motion of Director Zogers, seconded by Director Greek, the meeting was adjourned
to 4,:OO P.M., September 26, 1357.
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President of t& Board o#Directors
Carlsbad Municipal Water District
ATTI3 ST :
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Secretary of the Board of Directors
Carlsbad hicipal Water District
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