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HomeMy WebLinkAbout1970-01-13; Municipal Water District; MinutesMINUTES OF: MEETING OF CITY & CMWD - RE: CITY'S WATER SERVICE DATE OF MEETING: January 13, 1970 - 10:00 A.M. PLACE OF MEETING: City Manager's Conference Room PRESENT: Jack Kubota, General Manager - CMWD Mrs. Simpson, Accounting Officer - CMWD Mr. Henley, General Superintendent - CMWD CITY - Charles Martin, Win Friday, Bob Neely, Thelma Sowell, Joe Spano Item 1 - Procedure for Exchange of Information between City & CMWD This meeting is to discuss the City;s delinquent account with the Carlsbad Municipal Water District. Mr. Kubota stated that primarily, this meeting is to iron out the water billings to the City. The City has a delinquency of over $2,000. CMWD's Board agreed that Mr. Kubota should meet with the City regarding this matter. Mr. Martin questioned how the billings are made and how much estimating is involved. Mr. Kubota reported the only estimating they do is when a malfunction is found in the equipment, at which time an estimate of the amount of water used is necessary. Estimates are based on the average daily amount of water used for several days after the meter is repaired and is prorated from the last vaild meter reading. It was questioned if CMWD is having any problems with the big meters. Mr. Kubota reported they are having a lot of problems with the big meters and will be checking these meters since on several occasions the City has sold more water then it is paying for in the El Camino Mesa system. Mr. Kubota stated this is one reason why he feels a change of statistical information is needed. Mr. Martin stated we need to come to a simple reliable solution based on good mechanical equipment. There is a discrepency on some of the equipment. Mr. Henley stated that on a monthly basis all the meters are read. If they appear to have a malfunction, the meters will be checked for several days in succession. The District has about 125 meters; six of the meters are for water used by the City. Mr. Neely stated that with the City's water improvements it will add additional meters. Mr. Kubota stated they are proposing to isolate the service areas which would eliminate three of the six meters. Mr. Kubota stated the City has four different individual water systems; May Co., El Camino Mesa, Terraraar, and Chestnut Avenue. The Chestnut meter has the bulk of the City? in Fiscal Year 1968-69, out of 3,700 acre feet used by the City, 2,889 went through the Chestnut meter. Mrs. Simpson summarized the basic procedure in the office. The field computations are checked first and tabs run on the books. Check the comparisons and look them over. We have a regular map of all the installations and tie them into our overall figures. We check our calculations against the Water Authority's readings. Any- thing that is an accountable loss is logged in on a form. An accountable loss is anything of a construction nature or malfunction of a tank. Evaporation is not included. Mr. Martin stated evaporation loss is a factor that should be considered. Mr. Kubota stated all the District's statistical information is in the books. The District either has water that is accountable for or that is unaccountable. When a leak is located in a line, it is logged in. Mr. Kubota stated that if we are going to evaluate this further, both the City's and the District's Financial Directors should review the matter from an accounting basis. This would be meaningful from the operational statistics. Mr. Martin asked why Mr. Neely questioned the difference in the billings from the District. Mr. Neely reported several letters directed to Mr. Friday, one of which stated that the City has a 45.6 acre foot of loss. He stated it came close to 200 acre feet as far as a water loss and meter readings. In July 1968 the District had the City's loss at 82.8 acre feet and July of this year had a 21.4 acre foot loss. Mr. Neely stated they questioned the meters but did not question the District's figures. The Terramar Vault and Calaveras Vault were also questioned. Mr. Henley has been picking up our water sales figures and picked up the last one that Mr. Neely had received. In the future, the statistics will be mailed to the District since there has been questions about the District not receiving all the City's statistical data. He stated this is a closed system and all leaks should be accounted for; therefore, the loss should be very low or else the system is not tight enough. Mr. Kubota stated that when they sent us a bill displaying the various costs, it was helpful to them when the City put their informa- tion on the same bill and returned a copy. - 3 - The total losses for the City were questioned for 1968-69 and Mr. Kubota stated City statistics indicated it was approximately 10%. Mrs. Simpson stated the total bill for 1968 was approximately $179,000. Mr. Kubota stated the latest problem is the discussion of our propriety. Our books do not agree and that is why Mr. Kubota feels the Financial Directors should review this matter. Mr. Kubota reported District losses for 1968-69 were almost 11 percent. The District is trying to find out where the water goes. Mr. Martin stated we should see what is a firm position from both sides. The City has to be sure the bills are justified. Mr. Kubota stated that in the future if there are any questions on bills or any other items regarding billing, they should be discussed at that time. We should try to keep ahead of ourselves in this matter. We believe the estimates we make are fair and reasonable. Mr. Neely stated that after new lines were installed, we still have the same percentage of loss. It should have decreased. Mr. Martin stated that with a 10-11% loss to equal 11,000,000 gallons of water, where would such a large amount go without being able to locate it. Mr. Martin questioned if there is a reasonable and accountable amount that can be agreed upon. Mr. Neely stated that about the only time you can revise the charges is at the end of the year. At that time it should balance. Mr. Martin questioned if a criteria or formula could be reached as to what the City is willing to accept as a water loss. Mr. Neely commented that the District feels they owe the City nothing. Mr. Kubota stated they are willing to look at more date. Suggest that this be settled not later than the third quarter of this year. Mr. Martin stated that we would be willing to pay the delinquent amount of $2,300 if we can see this is a fair cost. Mr. Kubota agreed to this and Mr. Martin suggested we proceed on this basis. Item 2 - Proposed changes in water rates Mr. Kubota stated the rate structure for wholesale water is our cost plus override. Our cost will increase $4 per acre foot for the next three years. He also stated no adjustment has been made for an - 4 - override in five years and are evaluating it now. Mr. Neely questioned an increase in override. Mr. Kubota stated it is due to their increasing overhead costs. Item 3 - El Camino Real Highway Project There was a small conflict in that two connections on both sides were being installed by the District. Mr. Kubota stated the City Engineer reported the City would build a connection on one side. Mr. Kubota stated this is not realistic. Mr. Cook is also drawing a map of his idea of what the Council would like as a service area. This map will tie in with this job. Item 4 - City of Carlsbad Improvement Project Mr. Kubota stated they are proceeding on the Kelly Drive/Laguna Riviera project and should have some preliminary plans in soon. This is a part of the District's relocation project. The City will be credited accordingly but will pay the difference. Mr. Neely stated Mr. Cook has all the information on this item and suggested Mr. Kubota meet with him. Mr. Kubota suggested we get together regularly. This was agreed. The next meeting will be held February 10, at 10:00 A.M. in the City Manager's Conference Room. Respectfully submitted, Barbara Bishop Recording Secretary