HomeMy WebLinkAbout1960-09-20; Municipal Water District; MinutesMINUTES OF A RE;GIJL& MEISTING OF BOARD OF DIRECTORS OF THE CBRLSBAp MUNICIPAL WATER
DISTRICT HH9 SPPTEMBER 20, 1960 AT 2:00 P.M. AT 2698 STATE STREET, CARLSBAD, CALIFORI
President Kelly called the meeting to order at 2:lO P.M. with Directors Carnohan, Gree
and Maerkle answering roll call. Attorney Swirsky, Mr. Bulot of Stone and Youngberg,
financial consultants, Mr. Buzz Garland of the Carlsbad Jounnal, Max Ewald, Superinter
Tucker and office secretary were also present.
I President Kelly called on Mr. Bulot to state his business. Mr. Bulot stated he was a
representative of Stone and Youngberg, financial consultants, and wanted to discuss t1
services they offered with the board,as to what they think they could do in putting tc
gethern the financial program. Ile said he noticed the District was going ahead with
Improvement District #3 and the dam and felt they could do a very excellent job for tE
District. He had learned from the attorney through the office secretary there were nc
committments made as yet and if they are considering financial consultants on these
particular projects they would like to be considered.
Mr. Bulot submitted a brochure of his company, and phamphlets for work-done by them 01
other projects, for the board's perusal.
The president asked him what the cost would be for this particular phase of the work
and Mr. Bulot advised it would be $2,500.00 for .a complete financial report.
(Director Coe arrived at 2: 15 P.M.)
Director Kelly asked the board 's opinion of this. After discussion, upon motion of
Director Greek, seconded by Director Carnohan, and unanimously carried, it was moved
decision on this be held up for the present time until further study could be given ir
(Engineer Clayton arrived at 2:20 P.M.)
Mr. Bulot bnked the board for their time and left the meeting.
The attorney pointed out to the board this fee for a report Mr. Bulot quoted the boarc
was in the nature of a feasibility report which-the engineer has already worked out.
He said the District normally used Schwabacher and Company and they were both recommer
firms. They prepare an official statement for the purpose of sending-out-to the bond
purchasers.
The engineer stated these firms perform the same services but it seemed to him the Di:
trict ought,to talk to Schwabacher and Company since they were familiar with the Distj
President Kelly asked why it was necessary to have this service at all and the attorn(
replied it was a good theory from the standpoint of bond prospectus. These firms pre-
pare an excellent report on the district that can convince the bond purchasers this i:
a good investment. The engineer said the only other alternative would be for the boa:
to prepare this report -themselves.
The attorney stated that on Improvement District #2 Schwabacher turned in a very nice
report but their estimate was for approximately $300,000.00. The Bank of America was
the only one who bid and their assessed vaulation figure came up to $395,000.00 so thc
bid on the figures compiled by their own Research Pept.
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Conference The attorney reported that in accordance with instructions from the
City of Carlsbad board as a result of he and Director Carnohan attending the City
Council meeting previously reported on at which time they requested
the City install some regulating meters and that they consider purchasing more Colorac
River Water, he was contacted by the City Manager to meet with him and City represent!
in his office to review this matter, and thought the conference could be summarized
in two or three statements:
1. With reference to purchasing Colorado Riyer Water in lieu of using San Luis Rey
water, they had compiled some figures which indicated their San Luis Rey water may be
a lot cheaper, They advised the budget approved by the City Council for the fiscal y'
did authorize a complete survey on the water system of the City of Carlsbad and they
feel the results of this report will assist them in determining which is the cheaper,
so for the present time were unable to give a definite answer on this subject.
2. In reference to the meters. The estimated cost of installing these meters is
$2,500.00. As a result of the conference and going into detail as to the need of
these meters, the committee agreed that their recomaendation to the City council,
and they would use their very best efforts, would be to install these meters as
soon as possible. Their main concern right now is they do not have sufficient money
to comply.
Resolution After discussion, the legal counsel read a E?.ESOL~TION OF BOARI) OF DIRECTOR:
No. 119 OF CAXLSBBD MUNICIPAL M%TER DISTRICT ESTABLISHING AM> FIXING RATES AND
CHARGES FOR NXLZR SOLD, DISTRIBUTED AND DELIylBJ3D BY THE CARLSBes MUNICIPA: mm DISTRICT i4ITHI.N @&LSW MUNICIPAL k&l"I'DISTFUCT AND CANCEI;LING RESOLT-JTION NO.
112 OF SAID DISTRICT. On motion of Director Carnohan, seconded by-Director Greek, the
said resolution numbered "119" was adopted by the following vote: I AYES : DIRECTORS KELLY, CARNOHAN, COE, GREER, MAERRLE
NOES : NONE
ABSENT : NONE
The above rates would be as follows:
Wholesale, City of Carlsbad - 0 over-rider from .$14.00 to $12.50 per acre ft.
Retail: Those taking on constant flow --
1,000 cu. ft. from 25c per 100 cu. ft. to 24c per loo cu. ft.
2,000 cu. ft. from 18~ per 100 cu. ft. to 17c per 100 cu. ft.
over 3,000 cu. ft. from llc per 100 cu. ft. to 10~ per 100 cu. ft.
This would reduce the minimum charge from $11.10 to $10,54.
Retail: Those taking on demand basis --
Changed from 20q per 100 cu. ft. to 19c per 100 cu. ft.
This wquld reduce the minimum charge from $12.00 to $11.40. u Bond
Reservoir The attorney stated that in accordance with instructions from the Board, he
had contacted ObMelveny & Myers in reference to setting up an election cale
Election for the reservoir which date the board had picked as November 29, 1960. He
stated each of the members of the board had before them a calendar which hz
require that a Resolution calling the bond election be adopted at the next regular me€
ing, October 4, 1960:
been prepared by O'Melveny & tnyers showing the election date as the 29th, 9 and would
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Newspaper :
CARLSBAP JOURNAL
published Thursdays
1960
October 6
October 4
(Regular meeting)
-
October 27
November 3
Noyember 9
November 14
Board Meetings:
1st. & 3rd. Thuesdays
of each. month
- Registration closes.
- Adopt resolution calling the bond
election.
- First publication of resolution
calling the bond election.
- Second and last publication of reso-
lation calling dthe bond election.
- First day can apply for absentee
ballot.
- Last day to comence mailing polling
place cards and sample ballots.
November p8
.November 24
- Last day to complete mailing polling
place cards and sample ballots.
- Last day can apply for absentee
ballot; hospitalized voter may securc
absentee ballot on election day.
November 29 - .ELECTION
December 5 - Last .day to receive absentee ballots
December 6 - CANVASS
(Regular meeting)
The attorney stated he also had for the board's consideration, a letter of employment
from O'Melveny & Myers and also an estimate and letter from Martin and chapman, elect!
suppliers for furnishing the necessaryelection supplies for the district.
The letter from O'Melveny & Myers dated September 19, 1960 states their fee for the
drafting of all resolutions, notices and other documents required in the bond proceed-
ings, the general supervision of the procedings, the examination of the proceedings SI
by step as taken, and the issuance of their apprpving opinion to the purchases of the
bonds, would be 3/lOths of 1% of the principal amount of the bonds authorized, payable
$1,000. following the canvass of the election returns and the remainder following the
sale of the bonds or a portion thereof. If the bonds are sold in more than one sale
there will be an additional fee of $100. on each excess sale. In the event the bond
proposition fails to carry at the election, their fee will be $1,000. payable followir
the canvass of the election returns.
In addition, O'Melvey & Myers are to be reimbursed for their out-of-pocket expenses,
such as telephone, telegraph, travel and the like, which will be billed to the distric
from time to time.
The attorney advised the board that this was their normal standard fee.
At this time Max Ewald asked if he could ask a question of the board. He said he wou:
like to know what the boundary of this area was. Did it take in the whole district?
He said as the board was aware Improvement District 111 did not include North Carlsbad
and he felt if North Carlsbad was included in this bond issue there would be 300 "no"
votes, as he could see no reason why they would be interested in being included in thc
reservoir as they are not paying for the pipeline. He said he felt some consideratio~
should be given to this as from his past experiences with these bond elections, it WOI
be difficult as it is. Mr. Ewald said he was aware of the fact that the district has
to haye storage but thought a great deal of these things have to be sold to the public
and it was going to be difficult to point out the necessity for this reservoir, to thc
people and personally he thought action should be delayed for awhile and carry on a
campaign of need as he was sure the people were not as aware of it as he was.
President Kelly asked Mr. mald in his opinion how could you enlighten a group of peo]
asked if there was any way of building this reservoir on a revenue basis.
President Kelly said the district would put the election up and give the people the f<
as they know them. He further stated he felt that people in the outer district could
pay for this reservoir if there was some way to decide how the City would pay for the
use of this reservoir and asked the attorney if there was a legal way to separate the
City from the use of this reservoir from the rest of the district. The attorney rep1
a brand new district could be established.
Director Carnohan stated he felt this facility was for the entire district andthat th,
reservoir would be more valuable to the City than the rest of the district, not only
from a regulatory standpoint but from a safety standpoint.
President Kelly said maybe it would be best to leave both the City of Carlsbad and No
Carlsbad out of it as he felt with the new assessed valuations it wouldn't be too muc
to carry and pay for it, and knew the outlaying district would all vote for it.
Director Greek asked Mr. Garland what his feelings were being president of the Chambe
Commerce.
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and Mr. Ewald replied most people would delay these things as long as possible and
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Mr. Garland said he felt we needed the storage and that we were confronted with the nc
of sewage and several other things too, and that the average voter would consider fir:
things first. He said he felt an educational program was needed to put this across a1
perhaps a citizen's committee would be the best means of doing that if you feel you ci
spare the time.
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President Kelly asked Mr a Garland if he would support the issue editorially for if th(
paper did not support it, the chances of it passing would be pretty slight. Mr. Garl;
said he tried to the best of his ability to support what he thought the people would
benefit from, and if he felt they needed it he would try and tell them they did, but
that he would rather push this over-all sewer plan than water storage at the moment,
and get this under way.
President Kelly asked Mr. Ewald regarding his statement not to be too hasty in having
this bond election. Mr. Ewald replied he felt this was going to have to have a lot 0:
publicity and education between now and the 29th. of November. That people in the Ci.
are just not aware of the need for this reservoir and every angle has to be considerec
Director Carnohan said he felt the best time to do this was just before the election 1
Mr. Ewald said a lot of thought had to bo into it beforehand. A committee has to get
familiar with.the subject to cover all segments and this takes time. President Kelly
asked Mr. Ewald if he would like to head a committee and he replied rtnofr.
After further discussion, President Kelly stated he felt the board should go on with t
election and try to do everything they could to sell the people on it.
The attorney said in accordance with-the sehedule presented, three people get into the
picture immediately:
1. O'Melveny & Myers hired as bonding counsel in accordance with terms heretofore
mentioned.
2. Martin & Chapman - election supply people - have submitted an estimate of the cosi
of a special bond election, condensed down to 9 voting precincts with approximately
4500 voters. The election supplies cost and services would be $782.16. The attorney
stated there were three things in reference to the election not included in Martin ant
Chapman's estimate. I a. They did not figure rendering any service in reference to picking up
the election booths and distributing them.
b. Election officers salaries -- amounts to $25.00 per poll and as there are
9 voting precincts this would amount to approximately $200.00 to $250.00.
the outlaying areas. The attorney asked the engineer what the cost would
be for him to prepare this map and the engineer stated it would run about
$50.00 and he would include extra copies ,needed.
c, Martin and Chapman were not able to secure a complete map of the polls in
After discussion, upon motion of Director Coe, seconded by Director Maerkle, and unan
ly carried, it was moved O'Melveny &.Myers, Martin and Chapman and Boyle engineering '
hired on the foregoing basis.
Engineer's The engineer stated he had nothing in particular to report except they we]
Report still working on the over-all design on the dam and the system.
The engineer stated however, there was one matter he would like to discus:
with,the board as a matter of information and any objection if the board has it. He
said on the pipelines in Improvement District #3 he was -thinking in terms of doing mo:
of the surveying by aerial methods instead of the conventional method.
Affer discussion, the board decided there would be no objection to the engineer follol
this method of surveying
Director Director Carnohan reported the first thing of importance he wanted to bring
Carnohan before the board was the November 3rd. dedication ceremonies on completion t
SWA the second San Diego aqueduct. The San Diego County Water Authority has re
quested we furnish them with a list of people who we would like to have inv
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so that they can send these people an invitation..
President Kelly appointed a committee of Directors Carnohan, Coe and Greek to prepare
list and forward same to the San Diego County Water District.
Director Carnohan said the only other thing he had to advise the board on was on the
Tijuana water Situation. The Mexican government would have contracts with the Metropc
tan 'Water District, San Diego C~unty Water .Authority and City of San Diego. The Metro]
tan Water District would charge them $30.00 per acre ft. for water delivered at the el
of the aqueduct. The Mexican Government is supposed to run a pipeline down across thc
border at their own expense. The water authority would set a tentative figure of $20
per acre ft. for use of transmission lines through the .aqueduct and the City of San
Diego would probably charge aizout'$10.00 for .operation and maintenance. This means
their water is going to cost them about $60.00 per acre ft. Director Carnohan said a.
the present time there was plenty of water, but the agreement would probably be writtc
such a way as to read the other agencies have to come first in case there isn't plene
of wqter.
Other The superintendent advised the board that in order for the Autocon machine
Business in complete operation it was necessary to purchase two slide wires.at a cos
of $190.00 each. After discussion it was decided not.to purchase these for
present until further investigation can be made on the matter.
The superintendent also advised the board 812.5 acre ft. of water had been sold in
August; and the water revenue for the months ofjJuly and August was $45,557.66.
Also, the chlorination station was in operation manually and would be hooked up this I
(Mr. Garland left at 4:35 P .M.)
Letter from Lyle Bonn was read by President Kelly in which Mr. Bonn asked for board dc
cision with reference to Mance of bonds to be sold in Improvement District 82, and pi
icularly in reference to completing phase "c". He stated in his letter if the board I
not considering doing this in the near future possibly his firm would have to conside:
forming their own water company to take care of their needs.
The attorney advised the board they could form a mutual water company and upon approv,
of the board could qualify as a wholesale agency. He said the way the district actua
stands on Improvement District #3 was as follows,: Mr. Bonn is talking ,about the last
voted. $350,000. worth of bonds were sold to complete phase a, but the bonds for b a:
c could not be sold until the assessed valuations warranted it. He suggested it migh
be well at this time to write Schwabacher and Company to determine, based on the pres
situation, if they think it feasible to sell bonds for phase b.
After discussion, the board authorized the attorney to write Schwabacher and Company
regarding the foregoing and to also write Lyle Bonn advising him of the action taken
by the Board.
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phase. The bond issue covered phase a, b, and c and $900,000. worth of bonds were
,
Finances The attorney advised the board he had a letter written by the Bank of Ameri
addressed to Director Greek stating their Securities Department had far too
much collateral on deposit with the Title Company in relation to the required amount
the funds .that are maintained on deposit with them at.the present time. They asked f
authority to release $321,000. worth of bonds which would leave our collaterial at
$128,000. which would be sufficient to cover the $60,000. now on deposit. The law re
110%.
The attorney advised he had talked with Mr e Schlack of the Bank of America and that h
told Mr. Schlack the deposit now on hand might be increased in the new future due to
bond sale. Mr. Schlack said that they would rather decrease it now and if more money
is deposited later they can take care of it promptly.
The above was approved by the board of directors.
(Director Greek was excused at this time -- 4:50 P.M.)
Two bids for janitorial service were discussed by the members of the board:
1. Ace Janitor Seryice; Iritial cleanup $48.00, and $35.00 per month thereafter.
2. A-1 Janitor Service: Initial cleanup $12.50, and $38.00 per month thereafter.
After discussion, upon motion of Director Carnohan, seconded by Director Maerkle, and
unanimously carried it was maRd that A-1 Janitor service be hired to do the janitor w
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After discussion, upon motion of Director Maerkle, seconded by Director Coe, and unanj
ly carried, it was moved that maintainence contract for the Thermo-Fax machine in the
amount of $42 .OO - 9/25/60 to 9/25/61 be paid.
Upon motion of Director Carnohan, seconded by Director Maerkle, it was moved that chec
#37 15-3746 ($17,801.45) be ratified .
CORRESPONDENCE :
1. Report from North Coastal San Diego County Sewerage Survey Group was read to the
first one to be held September 27 at 2:OO P.M.
2. Irrigation Districts Ass’n. of CSlifornia - copies of various report. President Kt
turned these over to Director Carnohan to read and report back at the next meeting .on
them.
3. Announcement from Everts and Esenoff advising Joe McCarthy has been admitted to
partnership effective September 1, 1960. Office Secretary was instructed to write a
letter sending the board’s congratualations.
I board by President Kelly and Director Maerkle was appointed to attend the meetings, tl
The meeting was declared adjourned at 5:OO P.M.
CARLSBAD MUNICIPAL WATER D~&ICT
I ATTEST :
,#/, /;” /yL 4) Ji /o . P J3.&
, w. c JL
Secretary of the Board of Directors
CARLSBb MUNICIPAL UTER DISTRICT
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