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HomeMy WebLinkAbout1970-05-11; Municipal Water District; MinutesMINUTES OF: SERVICE AREA BOUNDARY MEETING - CITY & CMWD DATE OF MEETING: May 11, 1970 - 10:00 A.M. PLACE OF MEETING: City Manager's Conference Room, Carlsbad PRESENT: Carlsbad: David Dunne, Mayor; Bill Baldwin, Acting City Manager; Hunter Cook, City Engineer; Leroy Wright, Special Legal Counsel; Stuart Wilson, Attorney; Glenn McComas, Councilman; Bob Watson & Knox Williams, Water Committee. CMWD: Fred Maerkle, Pres. of Board; William Carmichael, Sec. of Board; Paul Swirsky, Legal Counsel; Dan Martinson, Special Legal Counsel; Jack Kubota, Manager. The meeting was formed to to discuss the possible changing of the water service area boundaries. Mr. Kubota explained the proposed service area map on display. He stated the boundaries were placed due to the physical location of the pipelines and the topography. In the displayed map showing the proposed boundaries Mr. Kubota stated the master metering station would be relocated just north of Kelly Drive on El Camino Real. Mr. Wilson described the old Palomar Airport line location and stated this would be a good separation line for the two service areas with Carlsbad maintaining the northerly section and agreeing to service nothing outside the City limits unless agreed by the District. He felt a more equal boundary location for the service would be more acceptable by the City. He stated a more equal split was contemplated by previous discussions and the Palomar Airport line had been considered. Before this, the City was planning to service water within the City limits. Mr. Kubota stated the District's position is that whenever there is a proposed annexation, the District has taken the position with the developers to oppose no annexation to the City and that the District will maintain the water service as distri- buting agent. Mr. Carmichael questioned how the City would serve water in the area without any lines. Mr. Wilson stated the City would use the District's lines and pay for their use. Mr. Wright explained how the people would pay for the water lines in terms of water used and taxes. Mr. Martinson stated the displayed map shows that the District would give up an area that is not in the City and the City would receive the revenue. Mr. Wright stated this revenue would not adversely affect the District's financial status. The revenues the District would normally receive can and should be provided by an over- ride to compensate and maintain their financial status. The difference is that as an area develops, its assessed value is going to increase-producing more revenue. These revenues will be increased by the fact that the City could take over maint- enance and operation thereby releaving that burden for CMWD. Mr. Martinson stated if the District gives up some revenues to the City, the people will be paying for the extra cost. Mr. McComas stated the main item is to determine how we can best serve water to the people in this area. Mr. Dunne stated the time is approaching when a joint study of consolidating should be considered. Mr. Wilson suggested using the Palomar Airport line as a temporary boundary until the final solution can be reached. Mr. Kubota stated that in his discussions with developers, they prefer to be served by the District. The City's water rates are 40 percent higher than the District's. Mr. Watson reported the City Water Department is in a financial crisis and the only way to improve the business structure is to have increasing water sales. It appears that the District has all of the areas where new sales are to take place. He questioned whether a third agency to take the place of the two is the answer. He stated the City is having financial difficulties and an answer to the problem is needed. He also stated the City does not have the ability to serve the entire area now. Mr. Wilson stated we need the ultimate solution but it will take time and that his proposed interim solution would not hurt CMWD's finances. The City's primary interest in the area above the Palomar Airport line is revenue. Mr. Carmichael reported that the District Board turned down the Palomar Airport line as the boundary. Mr. Martinson questioned what was wrong with their proposed boundary. He stated if we cannot decide on a boundary, then perhaps LAFCO can decide. Mr. Maerkle stated the displayed boundaries are what the Board has approved at the present time. - 3 - Mr. Williams questioned what the City would gain from the District's proposal. Mr. Wilson stated there would be no immediate benefit to the City. Mr. Swirsky stated that, in conclusion, the District should review their proposed plan and an interim agreement should be worked out. The City should do likewise to try and find a solution. It was agreed that each party should review this matter for further review. Respectfully submitted, O 5 lXQn ,y^lJGQSiXC^ ©.l^r^K Barbara Bishop Recording Secretary