HomeMy WebLinkAbout1960-07-19; Municipal Water District; MinutesMINUTES OF A REGULAR MEFTING OF BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATE'R DISTE
HELD JULY 19, 1960 AT 2:OO P .M. AT 2698 STATE STREET, CARLSBAD, CALIFORPJIA:
PResident Kelly called the meeting to order at 2:12 P.M. with Directors Carnohan, Coe,
Greek and Maerkle answering roll call. Attorney Swirsky, Engineer Clayton, Superintend<
Tucker, Attorney Robert S. Walwick, Virginia Perry, R. A. Parchen, Mr. and Mrs. Arnold,
Lyle Bonn and office secretary were also present.
Minutes of a regular meeting, June 21, 1960 and a special meeting.July 5, 1960 were app~
through motion of Director Maerkle, seconded by Ijirector Coe.
Reimbursement President Kelly read a letter to the Board from Attorney Robert S. Walwicl
Contracts regarding the "Mesa Water Line" constructed by the Ayres People, dba Ran(
La Costa, a limited partnership, that was partly financed with contribut: I from his clients, Virginia Perry, R. A. Parchen, Mr. and Mrs. Arnold and others.
President Kelly also read letters from Frank H. Ayres & Son, signed by Lyle E. Bonn. T1
first letter referred to the "Lyman Water Line" and stated that cost breakdown, easemenl
etc., had been presented to the District February 9, 1959 and asked that this be broughl
to a conclusion at this meeting. The second letter referred to the *'Mesa Water Line" ar
gave a cost breakdown for the construction of the line, $24,133.63.
The attorney stated there were two extension agreements to be executed as far as the
district is mncerned, with Frank Ayres. The Lyman line land and the Mesa line. The
question came up of setting up a reserve fund for reimbursements, and aleo there was son
question raised as to how these agreements were to be drawn up, particularly on the MesE
line contributors' to the cost of the line, outside of Ayres' cost.
On the Lyman line, Ayres people have submitted all documents necessary to complete the
contract and no-one else participated on this except Ayres, therefore they have a right
for reimbursement under Carlsbad Municipal Water District's Ordnance.
The attorney stated that with reference to the Mesa Line, Mr. Robert S. Walwick was pres
on behalf of his clients who had contributed to the cost, and said the District's negotl
had been direct with the Ayres people who had represented all the parties and did all tl
negotiation with them. I Lyle Bonn stated Ayres & Son had contracts with all of these people for reimbursement a:
exists .
Attorney Walwick stated his thought was to have all the people present who were parties
these agreements and they would like to convey the idea they would like to deal directl:
with the District rather than go through Ayres and Sons. He said he had discussed this
with Mr. Bonn and Mr. Bonn had no objection.
Attorney Walwick further stated nothing had been directed to these parties and this inq1
had been triggered by Mr. Parchen. He asked if these people would be reimbursed at thil
time. He stated the amount contributed by his clients was $10,000.00 and as long as AYI
and Son had no objection to their dealing direct with the District they would likento wc
it out this way.
Director Carnohan stated if everything was in so far as engineering records, costs, rig1
of-ways, etc., the costs would have to be varified by the District Engineer. Mr. Bonn
replied all data was in except for the costs and had been submitted to Boyle Engineering
four months ago and as they had heard nothing from them they assumed the line was accept
able. Be said the reason the cost breakdown had not been submitted before was that the3
still haven't completed their survey. The north line has to extend back to the corner c
El Camino Real, they don' t have any tie- in points around this north boundary , but they E
about to finish .
Director Coe asked if the contracts of repayment Ayres and Son had given the participanl
in the construction of the Mesa Line were all property owners and was advised this was
so with the exception of Mr. J. Escota who was a leasee.
The attorney stated'that he would suggest, from the standpoint of the District, this shc
be considered as one entire contract and one e,ntire project and repayment based on the
they have some undiyided interest in the funds that can be disbursed on that particular
percentage. He said he didn't think the District should be placed in the position of
determining this interest.
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total amount-of water going through this line. On the basis of the particpants contrib~
Attorney Walwick stated the refund as he understood it, would be based upon theentire
cost of the line, while his clients were interested in some $10,000.00, but he could
see no problem in working it out on a prorata basis. He then asked the District's Attor]
when this reimbursement would start, annually, semi-annually, or quarterly.
The attorney replied the Ordnance provides that annual payments be made about July 20th.
each year. 50% of the actual water consumption received by the District from the sale a
delivery of water through their facilities is refundable, provided, however, that the SUI
to be refunded in any one year shall not exceed 20% of the total actual cost of the inst;
tion, which would run for 5 years.
Director Carnohan stated for the information of the other people who were present, and
apparently interested in this situation he would like to say this for the Board. The Or(
nance states quite clearly to enter into one of these agreements certain things have to 1
done. One, is that the line has to go in a certain area to fit our master plan. The co!
of installing this line has to be checked to be sure that it is right, by our District
Engineer. This has to be done before the line can be accepted.
The attorney stated to Attorney Walwick his clients would have to supply the District wil
an agreement of percentage of funds to go to each party. Attorney Walwick replied that
perhaps he could confer with the District's attorney and work out an acceptable agreemenr
with the District if and when this line is accepted.
President Kelly stated he felt the cost Ayres and Son had submiltted looked a little high,
especially the overhead and engineering fees. Mr. Bonn replied he had a complete break-c
of cost and would be willing to go over it with the District's engineer at his convenienc
and iron it out.
Attorney Walwick asked if this matter could be done before the next meeting of the Board,
or if it would be 60 days before the line was accepted or rejected. Hresident Kelly rep:
it would be put on the agenda at the next meeting.
After discussion, upon motion of Director Carnohan, seconded by Director Coe, and unanimc
carried, it was moved that Boyle Engineering, the auditor and the superintendent meet wi
the Ayres people and go over these records and get it on the road.
The engineer stated he didn't know of any reason why it couldn't be straightened out by
next meeting.
The engineer, Mr. Bonn and superintendent conferred and the meeting was set for July 27,
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at 2:OO P.M. at Ayr.es and Son's office at Palomar Airport.
Squires The engineer reported the test wells had not be as favorable as he had hoped.
Dam Site apprears that based on the test wells they dug down to blue granite from 50 fel
On the ayerage they dug 70 feet, which was 20 feet into the blue granite. The:
also ran some water tests. These tests were no discouraging except on the south abutmen'
it did look like there was some water in there. He stated on the overall picture it is
dicated that it is going to be a little more expensive to build than anticipated.
The engineer also stated he was trying to get lined up with the state people to come out
next week.
So far, however, with all the tests the engineer stated he still thought the dam site wa
feasible, and asked for authorization from the Board to haye the aereal topographer on t:
site.
After discussion, upon motion of Director Carnohan, seconded by Director Maerkle, and un
aerial topography, using to the best of his ability his judgment in gettingjout as light
as possible so far as the cost is concerned.
1 .D .#I3 - Boyle The attorney stated for the board's benefit he_'w&$d review the six que
Engineering brought up by the Board at their last meeting with reference to Boyle E
Agreement neering agreement on Improvement District #3.
1. Percentage based on the total amount of the construction contract.
2. Contract as submitted did not include staking within the precentages and as included
previous contracts.
animously carried, it was moved that the engineer be authorized to proceed with getting
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3. Possibility of some outside estimate on the cost of surveying and rights-of-way and
engineering .
4. Question of the raises in the hourly rates on surveying crew as opposed by rates fo~
Improvement District #Z.
5. Submission of a set figure or a total cash amount for all work-to be performed for
entire job.
6. A1 possible determination of a set percentage for all the work to be performed, bast
upon the total cost of the construction contract.
The engineer replied he would go over each of these questions and would start first on
number four. The reason there were raises in the hourly rates of survey crew was that c
of their survey crew are union men and they were stuck with a pay raise. As a matter OJ
interest he said he compared their survey costs as of now with 1955 and it shows that tl
a 35% raise in that interval of time. I
Regarding estimates of costs of surveying he stated that they could give us an estimate,
and if the board wanted to write a percentage contract including design work surveying
and the whole business, he could do this. The cost of preliminary survey for design WOK
runs between 1 1/2% and 1 3/4% of the actual cost. Then after contract is let they have
to stake for the contractor. This item of survey runs about the same as the other. In
general he stated the survey work which is done for design fairly well covers your own
right-of-way work. But in regard to other right away work, he said from experience ther
was no way to tie down the cost.
Regarding lump sum figure for construction contract, the engineer stated hejwould have L
particular objection to it if they could be sure that the District was going to build tt
entire project. In other words, the District oould decide to go ahead with one-half of
or a portion of it. He said however, if the District wanted to tie everything up overal
he thought everyone could agree and arrange it on a percentage basis on the whole packag
except the right away work.
With reference to the total construction cost business. He said that actually their pel
centage as relating to total construction cost is based on the total cost of the projeci
There is a sub-division of cost of installations and cost of materials. If they were tc
quote a cost on installation it would be higher than if they quoted on material.
Director Carnohan asked the Engineer if he could give a figure that would cover all the
except the right of way work so that the district will know what it is going to cost.
The engineer stated he would be happy to submit a figure on an overall percentage basis
will rewrite the conwact on this basis.
(Joe McCarthy, auditor, arrived at this time)
The engineer said there was one other item he would like to discuss and get the board's
cision on and that was some progress payments as the work is performed as this would he1
out on their financial picture as they have a lot of money tied up in these differed prc
jects. He was informed by the Board there would be no trouble on this question as it wc
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only be fair to do so.
1960-1961 Director Coe stated he had worked up a preliminary budget for the fiscal year
Budget 1960-1961 for the board's consideration.. Taking revenue first he stated he I
taken actual tax receipts for the fiscal year 1959-1960 and added 25% to COVE
expected increase in assessed valuations for 1960-1961 which he felt was conservative ar
up with the following figures:
Improvement District #l
Last year
$35 , 400.38
J1 'I #2 10,270.99
General 25 , 147.76
1960- 1961
$44,300.00
12 , 800 .OO
31,500 .OO I On water revenue, actual sales for the past year were $69,625.58 which he increased 20%
making the total $84,000.00. Other revenues would be the bond sales for Improvement Dis
No. 3 of approx. $1,000,000.00 and for Reservoir $650,000.00.
On expenditures he stated he had the actual amounts of each one during last fiscal year
he had based his estimates on, which he read to the board totaling $1,914,000.00.
With total estimated expenditures of $1,914,000,00 and estimated revenues of $1,936,392
which figures include an estimated operating-surplus as of July 1, 1960 of $93,792.28,
there would be an excess income over expenditures of $22,392 -28.
After discussion on the expenditures the following estimates were changed: Elections cl
from $1,000.00 to $2,500.00; employees retirment from $100.00 to 600.00; salaries, oper;
from $9,000.00 to $12,000.00; miscellaneous from $2,000.00 to $1,000.00.
The question was also raised by the board as to why Improvement District#l, 0. and M. 1
operationg surplus was $3,462.35 in the red. The feeling of the board and the auditor I
that expenditures against this fund might not have been distributed correctly.
After discussion, upon motion of Director Greek, seconded by Director Carnohan, and una]
mously carried, it was moyed that the auditor and the superintendent go over these expel
tures for the past year and make a better distribution.
The attorney advised the board he had to talked to San Diego regarding getting the figm
the assessed valuations. They were not available at this time but he said perhaps he cc
have them for the next meeting.
Joint-Use The attorney stated he had received the amended joint-use agreement back fror
Agreement San Diego Gas and Electric Company and it was now ready for signature.
Upon motion of Director Maerkle, seconded by Director Carnohan, and unanimously carried,
it was moved this amended joint-use agreement with San Diego Gas and Electric Company bc
accepted.
Other The attorney stated he would like to recommend to the board rather than by Re:
Business tion, a policy statement be sent to the Metropolitan Water District in referel
to the scheme of the Los Angeles Department of Water and Power to take the prc
off of them, which was discussed at a previous meeting.
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Upon motion of Director Carnohan, seconded by Director Greek, and unanimously carried, :
was moved a policy statement be sent to the Metropolitan Water District with copies to
Los Angeles Department of Water and Power, San Diego County Water Authority, Assemblymal
Hegland and Representative Fisher.
The superintendent reported on the cost of re-installing the mobile 'phone in the Ranchc
It would be $53.00 for the re-installation and $53.00 if a second 'phone was installed,
and the monthly charges would be the same for the second 'phone as it is for the first c
After discussion it was decided to do nothing about this matter at this time as the supc
tendent said he felt he did not need the two 'phones.
The question was also brought up by the superintendent regarding the board's Resolution
increase in water rates. He advised the board so far he had lost -very little water, bul
that there were a few of the irrigators who were not cooperating and taking water at nil
Although he has lost very little water he asked the board if he should make an example (
these people who are not cooperating and charge them the 20~-rate. After discussion it
the opion of the board that those who have nobt been cooperating should pay the higher 1
of 20c.
Finances Upon motion of Director Maerkle, seconded by Director Carnohan, it was moved 1
checks 83602 to 3643 ($13,158.58) be ratiefied.
After discussion, upon motion of Director Greek, seconded by Director Maerkle it was mov
that Naylor Brooks' invoice in the amount of $50.00 for geology report on the Squires Ds
Site be paid.
After discussion, upon motion of Director Coe., seconded by Director Carnohan, it was mc
that George Meese Electric Co. invoice in the amount of $218.00 for work done on the aut
be paid.
CORRESPONDENCE :
I. San Diego County Water Authority:
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a. Letter re. proposed purchase of pipeline by City of Oceanside. Director Carnohar
said he felt this subject had been pretty well tabled and did not think the San
JDiego County Water Authority would do anything about it.
b,. Tabulations were read to the Board by Director Carnohan and filed.
2. John C. Rebb - Letter offering his services: Read and filed.
3. So. California Water Utils. Ass'n: Luncheon meeting July 22, 1960, Del Mar Club,
Santa Monica, Calif. Director Maerkle stated he would be in Los Angeles that day
and would attending this meeting
4. Newletter - Feather River Project Ass'n. Filed.
Upon motion of Director Greek, seconded by Director Carnohan, it was moved this meeting
would be adjourned to August 2, 1960 at 2:00 P.M. Time of adjournment was 5:05 P.M.
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President of the Board of/Directors
CARLSBAD mCIPAL JWJXR DISTRICT
ATTEST :
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Secretary of the Board of Directors
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CARLSBAD' MUNICIPAL WATER DISTRICT
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BC3T16E OF ADYOURNHEt2Z QF! Bpic mm
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In USICQ~~UWB ria Sectfon 54955, Govent Code, sf Stager 8s Calffernfar,
notice fa hereby given that the reguhw meting of the Bawd of H)freeOorra of
Carl icilp&l W&tW Dhetrict hehi 6ll July 19, 1960, has been adjsurmd
to 2tW ~'cPo@k P.H., August 2, 1960, at ehe office of the CarPsbad IBfwrfcipal
Water DPsgrht 8t 2698 State Street, City of Garbbad, CalJifornfa
Dated: July 19, 1960
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N&R@e " - I Eu- w. COB Secretary of Board of Directors of CIUtsm BmaCIPAL WA'flgB BISmIm
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AFFIDAVIT OF POSTING
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STATE OF CALIFORNIA:
: ss.
COUNTY OF SAN DIEGO :
RICHARD R. COE, being first duly sworn, deposes and says:
That he is now and was at all times herein mentioned a citizen of the
United States over the age of Eighteen (18) years and competent to be a witness
herein. That he is now and was at all times herein mentioned thejduly elected
and acting secretary of CARLSBAD MUNICIPAL WATER DISTRICT and of the Board
of Directors thereof.
That on July 19, 1960, he securely and conspicuously posted near
the door of the office of the Board of Directors at 2698 State Street, City of
Carlsbad, California, the regular meeting place of the Board of Directors of
the CARLSBAD MUNICIPAL WATER DISTRICT, a copy of the attached notice of
adjournment of regular meeting of the Board of Directors of Carlsbad Municipal
I Water District, said attached copy being in all respects the same as the
notice posted, and said copy made a part hereof.
I certify under penalty of perjury thatthe foregoing is true and correct.
Dated: July 19, 1960. u &.&
RICHARD R. COE.
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