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HomeMy WebLinkAbout1970-09-02; Municipal Water District; MinutesMINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL MATER DISTRICT HELD ON SEPTEMBER 2, 1970, AT 2:OO P.M., AT 5780 EL CAMIFlO REAL, CARLSBAD, CALIFORNIA: The meeting was called to order at 2:05 P.M. by President Maerkle with Directors Carmichael , Kel ly , Mac Leod and Palmer answering roll call . A1 so present were General Manager Kubota , Legal Counsel Swi rs ky, Superintendent Hen1 ey (2:22 P .M. ) and Off ice Secretary. Approval of After discussion, upon motion of Director Palmer, seconded by Minutes Director Mac Leod, and unanimously carried, the minutes of the I adjourned meeting of August 12, 1970, and regular meeting of August 11 1970, were approved as transcribed and mai 1 ed out by the Secretary. La Costa Vi 1 lage Subdivision flr. Howard Nopper , Mr. James Craig, Engineer , and Mr. James Land Company in the matter of water system improvements for the La Costa Village Subdivision. Mr. Caplan reviewed the subdivision proceedings which resulted in the fi 1 ing of the court action and the subsequent Judgment handed down by the Court orde ing the District to approve the water system plans for the project. He explained th the Appeal on the matter which was filed by the District has the effect legally of keeping his client from proceeding with the private water system until the District Court of Appeals hears the matter and this will involve a number of months. In ordel to go ahead with the development and meet the requirement for the water system the firm has been working with the District General Manager in order to get the improve- ment plans for the pub1 ic water system prepared. The plans have now been prepared and approved in their present form, and in the absence of the District Is Legal Counsc the initial draft of the standard improvement agreement on the water system was pre- pared by Mr. Caplan and submitted to Mr. Swirsky. Certain revisions were made by Mr. Swirsky and it was returned to the Developer for execution. Mr. Caplan pointed out that the only change that they would want in this Agreement is because the District is requiring that there be included with the improvement agreement the provision that they waive any claim for damages that they would have against the Water District in the event that they were successful before the District Court of Appeals. He offered the opinion that the basic premise is very simply that the Board has interfered with the Developer Is right to have the private water sys tem and as a public Board is taking advantage of its position and that the District shoul have to suffer the consequences if wrong. He pointed out that the other alternative might be that they be permitted to put in the private water system as orignally re- quested. Copies of a breakdown of both their Engineer's estimate and the bid received from Ki tzman Plumbing were distributed to Board Members. A summary of comparisons of the costs with respect to a public or private water system for Lot 1, reflecting a differential of around $7,000 on the 53 units involved, was also submitted by their Engineer. Mr. Caplan explained that they have some additional damages which bring the total cost, not including attorney's fees to around $10,000. He pointed out that they really don't have any estimates on the costs to convert Lot 1 back to a private system, if they were able to prevail in the court proceedings, and the entire amount could go as high as $30,000. In summarizing the matter, Mr. CapIan stated that the District is imposing a requirement that they are not able to impose on the Developer, and this has already been confirmed by the Court, and that the waiver of damages has nothing to do with the improvement plans. He outlined two alternatives, that the District either consider again the matter of the public water system versus the private system, or allow the Developer to sign the Agreement without Paragraph 11 in it which is the provision waiving the damages. Legal Counsel Swirsky called attention to the fact that the waiver that appears in the Agreement is in reference to the installation of the water system for Lot 1 of 3 proposed lots, and refers to any damages in connection with Lot 1 . It is considered that Lot No. 2 and Lot No. 3 would be he1 d in abeyance because of the court action and are therefore not involved in this matter. After further discussion, Mr. Caplan was advised that the Board will take the matter under consideration and they will be notified of the Board's decision in the next day or two. Mr. Caplan, Mr. Nopper and Mr. Craig left the meeting at this time, 2:21 P.M. Caplan, Attorney at Law, were present representing the La Costa I I Commi ttee Reports : City of Legal Counsel reported that he has prepared a draft of the resolution Carl sbad on the service area for the City of Carlsbad and a copy has been for- warded to Special Legal Counsel Don Martinson for his approval. As soon as he has reviewed it, Mr. Martinson will be in attendance at the next Board meeting and the final draft will be presented to the Board for consideration and aaoption. Assembly It was reported that AB 1817, as amended by the conference, went through Bi 11 No. the Assembly and was adopted by the Senate and is now on the Governor's I 1817 desk awaiting signature. No up-to-date information has been received as to whether or not this Bill has been signed. City of The Manager reported that the first staff meeting with the City staff Carlsbad and the new City Manager has been scheduled for this Friday at 1O:OO A.M Staff An agenda has been prepared by the District and there are several impor- Mee ti ng tant i terns to be discussed by the two agencies. Legislation The Manager informed the Board that an announcement has been re- ceived from the Special Districts Association that there was pass- ed in this Legislative session the bill that provides that two rep- resentatives fron; special districts will go on the Local Agency Formation Commission. This is to be enforced on a county to county basis and it was the Manager's opinion that the County of San Diego will go this way. San Diego County Water Au thori ty No report. Carlsbad Chamber Director Mac Leod reported on his attendance at the regular of Commerce monthly meeting of the Carlsbad Chamber of Commerce. La Costa Legal Counsel reported that the Subordination Agreements on the ease- Vi l l age ment for the fire hydrant for the La Costa Vi 1 lage Subdivision have finally been returned to the District. D Discussion was resumed on the La Costa Village matter and Legal Counsel Swirsky gave the Board a 1 i ttle more background on Mr. Caplan's presentation. He explained that the Agreement in question is the standard type with a coup1 e of i tems that are different from the normal one. First, when La Costa created Lot No. 227, a lateral was installed to Lot 1 and Lot 2, and this Agreement provides that they have to put a lateral in for Lot 3. The waiver clause as to Lot 1 was also put in. Lot 2 and Lot 3 would still be in abeyance. He pointed out that he and the Manager had gone over the agreement with them on Friday before the Manager left and a1 1 parties were in agreement. It was decided and agreed that if they brought back the documents a1 1 signed, Legal Counsel would get the Chairman's signature and they could have the signed improvement plans. The Agreements were picked up early Tuesday morning after which a call was received from Mr. Caplan stating that they were concerned with this waiver. Legal Counsel informed the Board that he had also extended the fi 1 ing for the brief time until October 6, 1970 in order to give additional time on the matter. After discussion, Legal Counsel recommended that unless the Board has changed its mind on the matter that it consider two possible things, first, if its desires now to allow a private water system versus a public water system, and secondly, whether the Board wishes to execute the documents with the waiver of damages on Lot 1. After further discussion, upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, it was moved that the Agreement, as prepared, which has the waiver in it as to Lot 1 improvements, is satisfactory to the District Upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carric it was moved that the District, after reviewing the matter, would make no change in its existing decision as to the water system for the La Costa Village Subdivision. Legal Counsel will follow through on this matter and get in touch with Mr. Caplan an( let him know of the Board's decision. Legal Counsel pointed out that this will finalize Lot 1 and that it may very well be possible to negotiate out some type of acceptable water system for Lots 2 and 3 befol the time runs out on the Appeal briefing. Superintendent's Report: La Costa Superintendent Henley reported that the Contractor is getting Subdivisions ready for final inspection on La Costa South Unit No. 1 and the I paving operations are getting ready to start for Unit No. 5. .~ L" I . -.I " The District's Contractor, Don Hubbard Contracting, has now completed the La Costa Creek crossing of the 12" transmission main for the El Camino Real Highway Project. Maintenance and cleanup work on Oistrict facilities are being done by the District fie1 d crew. Meters throughout the District were read on Monday, the Superintendent reported. The Lake level was reported at 486.4 feet, and gaining about .3 per day. Water delivery is continuing at 20 cfs. Accounting It was reported that District water sales for the month of July, 1970 Off i cer totalled 1,077.7, with a total of 504.3 acre feet delivered to the City of Carlsbad. Profit and loss figures for the month show a net profit of $25,448.47, .which is excessively high due to the draw of the low priced water from Squires Dam during the reconstruction period .at the S,anta Fe Reservoir. Mr. Gaiser's people are continuing their audit work at the District and it is an- ticipated that the audit report will be ready by the end of the month. General Manager: I El Camino Real The Manager reported that the District has turned in a bi 11 ing 'Highway Project request to the County of San Diego for $57,706 .OO, on the reim- bursement for the El Camino Real Highway Project and it is ex- pected that the check will be coming in very shortly. Mr. Meal Ball from the San Diego Union made a tour of the project with the District Superintendent this morning, the Manager reported and indicated that he wi 11 be pre- paring some pub1 ici ty on the project. The Manager presented for approval, Progress Payment No. 3 for the Don Hubbard Con- tracting Company, covering work performed thru August 31, 1970. Total earnings of $97,065..00 were 1 isted, less retention and previous payments, for a net amount pay- able of $35,366.00. After discussion, upon motion of Director Carmichael, seconded by Director Palmer, and. unanimously carried, payment of Progress Payment No. 3 was approved in the amount of $35,366.00 to Don Hubbard Contracting Company. The Manag.er informed the Board that for the next meeting he will have made a deter- mination as to a time extension for the project as -the time is running over 75%. of the job and the job is only 34% complete. He pointed out that because it is for our interests as well as the Contractor, he does not. anticipate any extra charges on this time extension. The Contractor is scheduled to commence work on the creek crossing at Line "C" next week. Santa Fe The Manager informed the Board that we have not put together all of Reservoir the figures to get a final report on the Santa Fe Reservoir project Project and it will be kept as an agenda i tem until it is entirely closed out reviewing the project, if any damages are available to the District on the reser- voir. Legal Counsel informed the Board that he felt the cost of researching and 1 egal costs would be too costly and there is no clear court case. Director Carmichael inquired if a determination has been made, after La Costa The Manager presented for the District's acceptance a right of Subdivisions way document covering the pipeline easement going across Lot No. 36E of La Costa Unit No. 5, granted by William D. and Ellie Durgen. He explained that this easement was within the tract but was sold before the easement was ,taken care of. Mr. Mamaux of La Costa had followed through and obtained the easement document for the District and submitted it for recordation. After discus- sion, upon motion of Director Mac Leod, seconded by Director Palmer, and unanimously carried, it was moved that this easement be accepted on behalf of the District and that the Secretary be authorized to execute the certificate. The Manager will follov through and obtain this original document. Squires Dam The Manager reported that he had tal ked to the aerial photography Expansion firm this morning on the topography maps for Squires Dam. Due to ed the maps but promised to deliver all of the material next week. Northside The Manager explained that this agenda item involves the proposed Transmission transmission main from the Aqueduct in the vicinity of Rancho Santa Main Project Fe Road and tiighway 78 that wi 11 provide additional pipe1 i ne capa- 'I a heavy schedule and some mixup with his office, they have not compl e city to our District northerly of El Camino Real and Pal omar Airport Meeting September 2. 1970 - 7- Road. Invitations ha've been sent out to the other Mater Agencies in the service area to participate in an informal discussion session on the project for a week from Friday. The Manager from the Vista Irrigation District has already indicat- ed that they will attend and the Manager informed the Board that he is very hopeful that we will get a good response from everyone. Budget Copies of the Final Budget, as adopted, have been retyped, the Mana- Fiscal Year ger reported and the final budget document for fiscal year 1970-71 1970-71 has been distributed to the Board Flembers and Staff. I Water The Manager reported that District meters were read on Monday and Statistics the staff is in the process of putting together the final figures in the order of 40 to 50 acre feet, he informed the Board, on a total production of 1,123 acre feet. The staff is checking out all of the meters that are question- able and will be compiling the final statistics. for the month of August, 1970. Preliminary figures indicate losses I Other I tems : Pi pel i ne The Manager presented for approval the final payment due and payable Refund to A1 1 an 0. Kelly under the Kelly Line Pipe1 ine Refund Agreement. Agreement After discussion, upon motion of Director Mac Leod, seconded by Di- ment of $428.45 be approved to A1 1 an 0. Kelly as the final payment on this refund agreement. Hol i day The Manager announced that under the District's holiday schedule the Schedule office wi 11 be closed on Monday, September 7, 1970, Labor Day, and rector Carmichael , and unanimously carried, it was moved that a pay- Wednesday, Septerrlber 9, 1970, Admission Day. The Manager reported that through the generousity of the President of the Board, the District has acquired a time clock with a supply of time cards. This will allow the District to acquire more precision in paying overtime, he explained. Correspondence and Announcements: (1) Notice from Irrigation Districts Association regarding recognition banquet to be he1 d in honor of Carl E. Porter at the Bil tmore Hotel in Los Angel es , Sept, 24, 1970. Arrangements will be made at the next regular meeting for the Dis- trict Directors to attend. (2) Announcement from American It'ater Works Association regarding Fall Conference to be held September 30, thru October 2, 1970 in San Francisco. (3) Letter and brochure from Dresselhaus Engineers offering their services to the District. (4) Census material submitted by the San Diego County Planning Department. Special Accounts Payable: The following accounts payable were presented by the Manager far approval: (I) Invoice from Paul S. Swirsky, in the amount of $478.50, covering extra legal services performed during the month of August, 1970. After discussion, upon motion of Director Carmichael, seconded by Director Mac Leod, and unanimously carried, the Board approved payment of this invoice in the amount of $478.50. (2) Upon motion of Director Mac Leod, seconded by Director Carmichael , and unani- 1 mously carried, the Board approved payment to Paul S. Swirsky in the amount of $180.00 for extra legal services performed during the month of August, 1970 in connection with the La Costa Vi 11 age suit. (3) Upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, the Board approved payment to Jack Y. Kubota, for services performed during the month of August, 1970 in the amount of $1,869.26, including $1,265.21 for the General Manager's office , and a total of $604.00 for the El Cami no Real Project liaison services. He noted that an additional bill will be coming in on the surveying at Squires Darn. Meeting September 2, 1970 -4- Inactive Upon motion of Director Palmer, seconded by Director Mac Leod, and Fund Report unanimously carried, the Board ratified the investment by the Trea- surer of the extention of the time deposit in the amount of $lOO,OOC for a 30 day period at 7.125% with a new maturity date of September 30, 1970. Ratification Upon motion of Director Palmer, seconded by Director Mac Leod , and of Checks unanimously carried, the Board ratified Checks No. 4828 thru No. 4861 , in the amount of $47,456.49, covering the period of August 19, 1970 thru September 2, 1970. I Upon motion of Director Palmer, seconded by Director Mac Leod, and unanimously carried, Director Carmichael was granted permission to leave the state for the period of September 17, 1970 thru October 6, 1970. There being no further business to come before the Board, the meeting was declared adjourned at 4:43 P.M. ATTES J 1 I Meeting September 2, 1970 -5-