HomeMy WebLinkAbout1960-11-15; Municipal Water District; MinutesI
"LJTES OF A REGULAR MEETING OF BOARD 'OF DIRECTORS OF THE 'CARLsBAD "c~pq~ GSATER
DISTRICT HELD NOVEMBW 15, 1960 AT 2:OO P .M. at 2698 'STATE STREET, CBRLSBAD, CALIFOWLA
President.Kelly called the meeting :to order at 2:05 P.M. with Pirectors Carnohan, Coe,
Greek., and Maerkle answering roll call. Attorney Swirsky, Engineer Clayton, Superintent
Tucker, Mr. Guerin of Schwabacher and Co., Mr. Lyle Bonn and office secretary were also
present.
I.D. #2 Mr. Guerin addressed the board and stated he was .a representative from Schwa
Phase "B" and Co. , and his firm had received a letter from the attorney relative to th
Bonds feasibility of selling additional bonds for phase t$'' of Improvement'Distric
He stated the assessed valuation had increased by about five times since the
series 1 bonds were sold for phase "A'* of Improvement District 82. In 1958 when series
prospectus and made a statement that they felt a more realistic assessed valuation afte,
re-assessment of the locally assessed portions of the District were made, it would be
$1,239,000.00. Instead of this figure it was over-$1,590,000.~0. Mr. Guerin .stated th:
means in terms of feasibility, another-$350,000.00 worth of bonds would be sold probabl:
for phase "Btr. This together with $340,000.00 on Series I, against $1,500,000.00 asses:
valuation would be a debt ratio of 24% right now. He said he did not know what the ove:
lapping ,debt would be at the time the bonds were sold. When series I sold it was 16%, I
for the sake of round figures say it is somewhere between 20 and 25% and this makes it
about half again as attractive an issue as series I were.
Mr. Guerin continued, stating their opinion would be that in a market anything,like the
present one, $350,000.00 could be sold and pbably with competitive bids. He stated hi;
company felt the sale of $350,000.00 series 2 bonds would be quite feasible and as a sic
issue he might mention the opinion that the market will probably improve between now an1
the Spring of the year,lmeaning slightly lower interest rates.
bonds were sold they made a conservation estimate of $296,000 .OO at that time in the
Mr. Guerin stated the attorney mentioned in his letter the feasiblity of 'the $690,000.0
bond issue for Improvement District #4 and what effect the prospect of such a sale wouL
have on the salability of Improvement District.#2 bonds. He said at a glance comparing
the assessed Valuation they felt the sale of the Improvement District.#2, series 2 bond2
would not materially affect the sale of Improvement District #4 bonds.
I Further discussion followed and upon motion of Director Maerkle, seconded by Director
Greek.and unanimwsly carried, a motion was made that8chwabacher and Co. proceed on S~I
2 Bonds for Improyement District #2, Phase "Brr.
The attorney suggested to the board they authorize the.engineer at this time to present
a proposed contract covering this work at the next regular meeting of the j board.
The engineer stated he would come up at the next meeting with the following:
1. Outline of what they propose .to build in this phase "B".
2. Progress schedule.
3. Proposed contract.
The attorney,then stated to the board there was one other point hejwould like to bring
up. It has been the policy of the board to employ Schwabacher and Co. to prepare actua
statement for the sale of bonds. At-the present time .there is a contract cqvering phas
"Bfr and *'CF1 of .Improyement District #2 in force and effect. This raises the question a:
to what the board proposes to do on Improvement Districts Nos. 3 and 4, in accordance
with past policies. He asked if the board would like Schwabqcher GCCo. to submit contr:
to be considered by the board 'at their next meeting.
After discussion, upp motion of Director Maerkle, seconded by Director Coe, and unanimc
carried, it was moved that Schwabacher & Co, prepare and submit contracts for dliuprovemt
Districts Nos. 3 and 4 for the boards consideration at -.the next regular meeting.
Hearing on The president then announced that this was the time and place for the hc
Resolution Of on Resolution #120 of necessity. Necessity - B-
I.D. $4 The ateorney stated the Board of Directors of the Carlsbad Municipal Ha.
District had adopted the following Resolution #120, declaring the neces;
for incurring a bonded indebtedness to be payable from.taxes levied upw less than all I
the District and fixing time and place of hearing and giving notice of hearing, and real
the Resolution to the board.
The attorney presented Affidavit-.of Publication from .the Carlsbad Journal certifying th;
Resolution #120 of the Board of'Directors of the Carlsbad Municipal Rater District call:
this hearing was duly published in the Carlsbad Journal on October 27, 1960 and Novembe~
1960, for the records which was marked "exhibit .A".
The attorney presented an Affidavit-of Posting executed by Richard R. Coe and Thomas H.
Tucker, stating they posted on October 28, 1960, in six different places within the
bwndaries of the proposed Improvement District 84. The particular places ,are indiyidu;
listed in the Affidavit. Said document was marked Bxhibit B".
The attorney then referred to map posted on the wall and stated this was the map of the
proposed Improvement District #4, together with copy of boundary description, and that-] I map had been available for public inspection,
The .attorney then stated they would hear the testimoney of the engineer, describing.the
proposed improvements, the amount-of debt to be incurred for these improvement, and his
statement of ba ef it.
The .engineer stated he was talking here about constructing a dam in the Squires Canyon :
to provide .a reservoir which would give approximately 600 acre feet of storage, such dm
construction of -earth fill with oyer-flow spillway. From this dam a connecting pipe lir
generally through Tootsie R area to connect w5th.our main transmission line. The dam w:
have gravity operation and no pumping will be involved.
Also involved in the operation is a chlorination station so that-the water can be chlor:
as it leaves the dm.
The engineer submitted a cost break-down, as follows:
Ltem - Dam, Spillway, etc.
cost - $320,000.
Chlorination Station 35 , 000.
Pipeline 130,000. I Estimated Construction Cost
Property Acquisition
$ 485,000.
55,000.
Preliminary Investigation &Exploration 10,000.
Engineering, Inspection, Legal, Bond Expense 65 , 000.
Contingencies 75,000.
BOW ISSUE -TOT& $ 690,000.
The engineer stated the Discrict needed this project because they are delivering water
in large amounts with a minimum amount of storage in the system. Due to the minimum am
of storage it necessitated the agricultural users to build their own reservqirs this pa
year. This is a practical approadhat .the moment, but if the District got anything more
than agricultural development they certainly couldn't ask a property ower to build his
reservoir. He Sated the District has to supply regulatory storage and also emergency
storage in case of an aqueduct shut-down.
The engineer further stated for the fiscal year ending June 1959, the District sold 3,2
acre feet of water! for the fiscal year ending June 1960, 3,600 acre feet; and for the
four months of this fiscal year 3,150 acre feet haye been sold, with two-thirds of the
water sold so far this year outside of the City. The engineer said, cost-wise for ever
one's information, if .the District sold 5,000 acre feet of water this year and assigned
a cost of 1$ per 100 cu. ft., there would be an annual revenue of $21,780.00. If a tax
rate of 69 on $34,000,000. assessed valuation was levied, thisjwould be $20,400. based
present performance and the expectation that we will grow. Splitting cost half and ha1
tween tax-and water sales, thisjwould be an annual payment figure based on present quan
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of $42,180. which he presumed is in the neighborhood of the total amount it would take
carry .this bond issue, depending on the rate of payment and the number of years.
The engineer stated all of the area within the proposed Improvement District No. 4 will
be benefited by the proposed improvements, since all of the lands and people within the
proposed improvement district need regulatory storage in greater amount. The City is
relying on the District entirely. They are on a demand basis. The irrigators are at
their own expense providing some regulatory storage. If they don't have to provide it,
it is to their advantage.
The engineer again stated he believed the proposed improvement district and the propose(
improvements for said district would benefit all of the area within the proposed improvf
ment district and is to the best interest on everyone within the proposed district,
furnishing emergency water storage as well as regulatory storage.
President Kelly then asked if there were any written communicakions to be considered at
this hearing. There were none and he requested this be entered in the records.
President Kelly then asked if there were any persons present who desired to speak in
reference to the proposed Improvement District.#4. There were none and he requested th
be entered in the recwds.
As the Board was of the opinion there was no need to adjourn this hearing, the Presiden
declared the hearing closed.
Resolution After discussion, the legal counsel read a RESOLUTION OF THE BOARD OF DIRECl
No. 122 OF CARLSBAD MUNICIPAL WTER DISTRICT DETERMINING THE NECESSITY TO INCUR BONI
INDEBTEDNESS TO BE PAYABLE FROM TAXES LEVIED UPON LESS THAN ALL THE DISTRIC1
AND FORMING AN IMPRWNT DISTRICT WITHIN TRE BOUXDARIES OF SAID DISTRICT TO BE KNOWN 1
IMPROVEMENT DISTRICT NO. 4 OF cARLSB&l. MUNICIPAL W&L'ER DISTRICT. On motion of Director
Carnohan, seconded by Director Maerkle, the said resolution numbered 122 was adopted by
the following vote:
I
AYES; Directors, Kelly, Carnohan, Coe, Gr.eek, Maerkle
NOES: None I ABSENT: None
The Attorney advised the Board that the election date for Improvement District #4 had bc
changed from January 10, 1961 to January 24, 1961. This was due to the fact that as a
result of the Presidential election the Registrar of voters' office was unable to furni:
Martin and Chapman Co., Ltd. the necessary information to set up polling places for
adoption by the Board at the next meeting.
Director Maerkle asked the attorney what the status of the negotiations was with the
Clarence Dawsons and the attorney stated a new topographical map had to be prepared as
Dawsons' appraisers had mislaid the original, so pending receipt of the new map things
were held up. The attorney stated however, the Dawsons' attorney asked if any more eng:
ing needed to be done and if so the Dawsons would be willing to execute an agreement
engineer stated he did have a few things he would like to do.
After discussion, upon motion of Director Maerkle, seconded by Director Greek, and unanj
mously carried, it was moved the attorney make an agreement with the Dawsons that we ma!
enter their property.
Retail Director Maerkle reported for the committee appointed by Vice-president Carnc
Water at the last meeting, who were to talk with other districts regarding retail F
Sales sales. He stated they had talked with Rainbow Municipal Water District and 2
Marcos County Water District and it was the consensus of opinion of the comm:
that the District change their Ordinance #lo which states the Carlsbad Municipal Water
District is strictly a wholesale distributor, and be in both wholesale and retail. Fro1
Rainbow's experiences and everybody you can talk.to regarding it, the District would be
involved in it anyway and we can deliver it cheaper and better.
without any consideration, giving the District permission to enter the property. The
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Director Carnohan stated even if small mutual companies were formed the District would
have a lot of headaches and eventually winde up with it. These small mutual companies
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can’t afford to hire personnel1 so the wholesale distributor-would have a maintainence
problem. The more little organizations, the greater the expense and more confusion and
less control.
Director Greek stated in their talk with.Denny Woods of the San Marcos County Water Dis
it was the opinion of Mr. Woods our District could service an additional 25 retail out11
without any problem at all and no burden to present personnel.
After discussion, upQn motion of Director Carnohan, sec.onded by Director Maerkle, and
unanimously carried, it was mwed the.attorney make whatever changes are necessary to
put -the District in the retail water business.
Finances UpQn motion of Director Greek, seconded by Director Carnohan and unanimously
carried, it was moved final payment to Bejac Construction Co. be made. $674.68.
Upon motion of Director Maerkle, seconed by Director Coe, and unanimously carried, it w
moved final payment, less 10% retainage, be made to Zahler Construction Co. $3,510.00.
Upon motion of Director Maerkle, seconded by Director Greek, and unanimously carried, i
was moved payment-of invoice from aler Construction Co. in the amount of $200.00, for
construction of temporary chlorination shed, be made.
Upon motion of Director Maerkle, seconded by Director Greek, and unanimously carried, i
was moved payment of Boyle Engineering invoice in the amount of $12,000.00 on Improveme;
District #3 be made,
Directors Greek and Coe brought.to the attention of the Board the sizable balance in thl
general checking account and suggested $30,000.00 could be invested.
After discussion, upon motion of Director Greek,. seconded by Director Maerkle, and man
carried, it was moved the Secretary and Treasurer negotiate with the Bank of America anc
open a 90 day inactive account on $30,000.00 and draw interest on same.
Upon.motion of Director Carnohan, seconded by Director Coe, and unanimously carried, it
was moved Checks #3809-3832 ($9,166.07) be ratified. I CoRREsPoNDmcE:
I. San Diego County -Water Authority:
A. Financial Report - fiscal year ended 6/30/60. This report on file for the Direc
to read.
filed . b. Letter re. changes of boundary. As there hav’e been no changes in boundary, lett
2. Irrigation Districts Association of Carlifornia! a. Fall Convention at Los Angeles December 7.to December 9, 1960. Director Carnoha
said hejwould like to attend and requested office secretary to make reservations
The other Directors stated theyjwould probably attend, andjwould advise the offi
secretary if ‘they needed reservations.
The meeting .was declared adjourned at 4:35 P.M.
CARLsBqD MUNICIPAL WTEX STRJCT B
ATTEST :
I -- 4.L
Secretary of the Board of’Directors
CARLSBk6 MUNICIPAL WTEX DISTRICT