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HomeMy WebLinkAbout1963-03-19; Municipal Water District; MinutesMINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATE DISTRICT HELD ON MARCH 19, 1963, AT 2:OO P.M., AT 2698 STATE STREET, CARLSBAD, CALIF0 The meeting was called to order at 2:OO P.M. by President Kelly, with Directors Greek Maerkle and Phillips answering roll call. Also present were Acting Manager Kubota, L Edwards were also present for discussion on specific matters as indicated. Reports of Legal Counsel: Counsel Grosse, Engineer Short, and Off ice3ecretary , Mr Verle Schlack and Mr , Jerry - Legal Counsel reported that he had reviewed the price increase notice from the Tops Chemical Company and had checked the contract and they do have the right to make this increase. After discussion, it was decided that the District should object to the pr increase on the existing contract and then when the new contract is taken up, allow t to negotiate for the increase on the next fiscal year deliveries. Director Greek off to contact the firm personally to try to work out some arrangement before a letter is written on the matter, and he will then get in touch with Manager Kubota if further action is required. Olivenhain Legal Counsel reported a letter has been received from the San Diego Municipal Water County Water Authority with a contract to allow them to bill Olivenha District directly for water transported through our line to the A.M. Brown far venture. He explained that this is a three-party agreement between t SDCWA, Olivenhain, and the District to allow the proper billing procedure for this arrangement. After discussion, upon motion by Director Coe, seconded by Director Phi and unanimously carried, it was moved that the District participate in this three-par agreement with Olivenhain and the San Diego County Water Authority. I Legal Counsel informed the Board that a letter has been received from Mrs. Dawson ask that he meet with her and representatives of the University of California to work out acceptable "jeep road" easement, as it is her intention to leave the property to the school for a natural park area. After reviewing the present location of the easement on the map, the Board discussed possibilities for relocating the easement,but it was found that the easement document does not recite the width of the right of way. No further action was taken on the matter and it was decided that the Legal Counsel and Manager should stand by for further word from Mrs. Dawson. Legal Counsel informed the Board that he had prepared the contract for the headquarte project architectural services but would like to clarify with Mr. Melvin the items wh are to be considered under the reimbursable expenses section. He reviewed the standa would not be applicable in the contractual arrangement which had been discussed with Mr. Melvin. Further discussion was withheld pending Mr. Melvin's scheduled arrival 1 in the meeting. Building Program Secretary Coe was instructed to open the bids for the building pro Loan loan, which he announced as follows: AIA contract provisions in question and the Board agreed that such reimbursable expen Bank of America - Proposal A -- $48,000 par value Negotiable Promissory Notes to be payable in five approximately equal annual installments of principal and interest; bearing interest at the rate of 2.68% per annum, payable annually, Premium of $7.00. Bank of America,..- Proposal B -- $48,000 par value Negotiable Promissory Note to be payable five years from said date of issue; bearing interest at the rate of 2.68% per annum, payable semi-annually. Premium of $7.00. I Security First National Bank 9- $48,000 in the amount required for matching funds with repayment to be made by reduction of outstanding balances by $10, or more per year, plus interest at not more than 2.90% per annum, with renew annually for a period of not to exceed five years. After,discussion, upon motion by Director Greek, seconded by Director Phillips, and unanimously carried, it was moved that the District accept the Bank of America bid on Proposal "A". Legal Counsel called attention to the fact that he had informed the Board that the Fir National Bank had wanted to bid on the money and it was his understanding that the Boa was going to wait. Mr. Verle Schlack, representing Bank of America, objected to a suggestion that the First National Bank be contacted by telephone and allowed to submi a bid verbally. The matter of the actual delivery date of the funds to the District w discussed and the legal procedure involved in obtaining the required opinion from O'Melveny and Myers. No time schedule for obtaining the funds was decided upon, pendi a verification from Mr. Schlack of the date when the District will officially be allot, to take delivery of the loan proceeds. I Mr. Schlack left the meeting at 3:05 P.M. Squires Dam The Manager introduced Mr. Jerry Edwards, an employee of the City of Caretaker Carlsbad, who had made inquiry regarding the possibility of leasing 01 purchasing property at Squires Dam to allow him, for reasons of healtl- requirement for fiersonnel. Mr. Edwards explained that the Manager had taken him out t the property and explained some of the matters which would be involved in such a move and invited him to discuss the matter with the Board. In looking into the costs and discussing the matter with the bank, he found that any financing would require a deed the land. In discussing the possibility of selling a building site, the fact was brot out that a public agency cannot sell or dispose of public property either by gift or 5 without properly advertising it and declaring it surplus to the District's needs. Mr, Edwards was informed that the Board would take the matter under advisement and give hj some answer within a couple of meetings. Mr. Edwards left the meeting at this time. to move his family to that location, thereby permitting him to meet the City's resider Discussion was continued on the matter and the possibility was broached of the Distric building a house on the site for use as a caretaker's house, as it was the Board's feeling that the District should have control of the property. The Manager was instrt to check the site and look into the cost of construction of a three bedroom house, anc also the cost of providing utilities, etc. Reports of Engineer: The Engineer informed the Board that he had provided the District with copies of the Water Reclamation Study for Balboa Park and Mission Bay Park which his firm had compi: ~ for the City of San Diego. It was pointed out that in connection with the I.D. No. U- sewerage program, there is the possibility of building a sewage treatment plant for water reclamation and distribution to the District's irrigators. Members of the Boarc will review the material and discuss the matter further. Squires Dam The Manager informed the Board that we are holding off filling the dar preparation by Boyle Engineering of a plan for a mechanism whlch will afford a safety factor in the event of failure of the steel cable. It is planned that the Engineer w: meet with the District staff next week to make a final inspection on the job and also to resolve the final pay quantities. When arrangements for this inspection have been made, the Manager will notify all of the Directors and have them make this inspection a final wrap-up of the project. The Manager presented for approval invoice dated March 12, 1963, in the amount of $1,357.00, submitted by R. E. Melbourne Company, Inc., covering extra work on the renovation of the Dawson core pit totalling $1,108.00, extra work on the extension of the drain line pipe at $219.00, and the final amount for periodically watering the planting area at $30.00. After discussion, upon motion by Director Greek, seconded b Director Coe, and unanimously carried, it was moved that payment be approved to R. E. Melbourne Company, Inc. in the amount of $1,357.00 for this extra work. because of the problem of the inlet-outlet line and are awaiting the I The Manager informed the Board that he had compiled some figures on a payment to R. E Melbourne Company, Inc., using the Boyle Engineering figures which are the most conse: vative total of $418,000 for all of the contract work and a<ll of the extras. Basing it on this figure, less the retention of $41,800, and less all previous payments made, there would be a balance due of $7400.00. After discussion, upon motion by Director Coe seconded by Director Maerkle, and unanimously carried, it was moved that payment be made to R. E. Melbourne in the amount of $7400.00, up to the 10% retention for the pro j ect . Chlorination The Manager reported that the Notice of Completion is in action on Station the Chlorination Station, but there is one small item to be resolved. Shelstead has promised to work it out before the final payment is due on:the project. The Manager informed the Board that final payment has been made to the Wilcox group a The Legal Counsel uncovered a defect in the roofing bond and Mr. Mr. Wilcox has been invited to make a final inspection of the borrow area. The Manager reported that the reseeding operation was finished last Friday at Squires Dam, and that he had inquired with Webb Brothers on a sprinkler system and explained 3 the District had in mind. They made a design of the system and feferred us to Mr. Do Hedrick, a local resident who does maintenance and installations of sprinkler systems and he has given a lump sum proposal for $2310.85. Since a detailed break-down was n included with the proposal, the Manager was instructed to ask.,him for more particular on the system so that it can be discussed further. Headquarters Mr. Robert Melvin arrived at this time and presented for the Board's Project review some additional sketches and a preliminary cost estimate for t should be clarified in regard to his services, one of inspection versus supervision, that although the architectural services do provide for supervision of the project, t actual on-.site inspection is not part of the architect's function. In the pre-constr conference witE Mr. C. Schneider of the Los Angeles HHJ?A office, he had indicated the one that the District feels is competent to hold the job. In discussing the contract for his services, he informed the Board that his fee would based on 7% of the final contract price, and that the only reimbursable item would be the cost for additional sets of plans, and this will be billed direct to the District Any items not in the normal course of the contract would have to be negotiated. The Legal Counsel was authorized to go ahead with the prepartion of the contract on this basis . In reviewing the sketches and cost estimate, he explained that he had incorporated so of the modifications which the Board had discussed and has proceeded with the working drawings. For the preliminary estimate, the steel building has been based on $4.50 p square foot, including partitions, and the administration building is figured on $15. per sq. ft. The Manager reviewed some of the matters discussed with Mr. Schneider such as the nee for the District to have "deductive alternates'', which whould be put in their proper priority, and the matter of assessories and what is not assignable as an eligible cos In checking with Mr. Schneider concerning the increase in the size of the warehouse building, he recommended that the District notify the HHFA immediately of this change if we can do it within the framework of the project. After discussion, arrangements were made for the Architect, Mr. Robert Melvin, to get together with the District's Legal Counsel to complete the preparation of the contrac Sewerage The Manager reported that the District has contacted the City of Carlsbad Program concerning the sewerage program and in a call today, City Manager John Sla had indicated they will call a committee meeting at an early date. He inf the Board that City Engineer Lowell Rathbun is seriously advancing the plan that the Buena Sanitation District sewer line not go in the Canyon de las Encinas, but come ba into the Agua Hedionda Lagoon as was originally proposed. After discussion, it was decided that sewer program should not be delayed further and that the Manager should direct a letter to the City of Carlsbad requesting that the City of Carlsbad formaliz I headquarters construction project. He pointed out that one matter should be a day to day inspection program and their agency is willing to accept some- 1 its proposal and have a reply for the regular Board meeting of April 2, 1963, I General Water Service and Operations: The Manager reported that he and Superintendent Carnohan had accompanied Mr. Ford, a Safety Engineer with the INA, the District's insurance carrier, and made a complete c of the system. Mr. Ford indicated he will recommend an 8-foot fence around the tank chlorination station and erection of.signs. He is now checking with their Legal COUL on the language for the signs in order to lighten our responsibility. San Marcos County The Manager informed the Board that he is researching the matter of Water District inter-district water sales with San Marcos and it appears that up to April of 1961 we had been receiving payment. He will check into the matter for more details and also try to resolve the charges that we owe them for transmission of our water thru their lines. He also explained that Mr. Gauthey has been informed that upon the advice of our Engineer, we cannot make the "hot tap", and offered the alternative that he make a dry tap at an existing 8-inch outlet located some 4300 feet to the west of his existing service. Director Phillips brought up the subject of the possibility of the District attempting to sell the line to San Marcos again, as it was his opinion that San Marcos will need the line in the future and it is unfair to the taxpayers of this District to allow an investment of this size to continue to depreciate without benefit to the District. After discussion, it was agreed that Director Phillips should contact some members of the San Marcos County Water District Board and reopen negotiations on the sale of t 1 ine . Flood Control Superintendent Carnohan reviewed material submitted by protesting ager Proposal on the proposed County-wide Flood Control Act, and informed the Board that the special agencies listed are taking a stand against the format of this District to get it set aside for further study. After discussion, it was deci that a resolution should be drafted, opposing the formation of this district, along tl: lines of those submitted by other agencies. Peat, Marwick, Mr. Joe McCarthey arrived at this time to discuss the billing on the Mitchess & Co. annual audit for 1961-62 which was performed by their firm. He explai work involved in the construction projects and special bond funds, which they had not anticipated. After discussing the matter with the Manager he had included only the ct for the work done by their personnel and had made no charge for the firm's overhead expenses. After discussion, upon motion by Director Maerkle, seconded by Director Mitchess, and Company for a total amount of $1923.00. Mr. McCarthey informed the Boa1 that their firm would like to submit a proposal for contracting for the audit for the 1962-63 fiscal year, guaranteeing a complete audit and report by August 30. No further action was taken on the matter at this time. Ratification of Upon motion Director Greek, seconded by Director Coe, and unanimously Checks carried, the Board ratified Checks No. 5409 thru Check No. 5448, in tl that the increase over the original estimate given was due to extra Phillips, and unanimously carried, it was moved that payment be approved to Peat, Man I amount of $10,316.14. The meeting was declared adjourned at 5:45 P.M. &k-.&/&( /4? & Secretary of the Board of Directors I