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HomeMy WebLinkAbout1972-01-26; Municipal Water District; Minutes\J7 MINUTES OF CITY OF CARLSBAD-CARLSBAD MUNICIPAL WATER DISTRICT JOINT COMMITTEE CONFERENCE HELD ON JANUARY 26, 1972, AT 9:00 A.M. AT THE CIl-Y HALL, 1200 ELM AVENUE CARLSBAD, CALIFCMINIA: The meeting was called to order at 9;03 A.M. by Vice-Mayor McComas, serving as Chairman for this conference. The following Committee Members were in attendance representing the two agencies: Glenn McComas - Vice Mayor William D. Carmichael - Chairman Robert L. Watson - Chairman Water Paal S. Swirsky - Legal Counsel Comnittee James M. Gaiser - Auditor Jack Arnold - City Manager jack Y. Kubota - General Manager Hunter Cook - City Engineer Randall Mitchell - Public Relations Lewis Moe - City Attorney Wilda F. Simpson - Secretary Col. A. C. Bowen Win F. Friday - Public Works Director Approval of After discussion, upon motion of Col. Bowen, seconded by Director Minutes Carmichael, and unanimously carried, the minutes of the Committee meeting of December 22, 1971, were approved as submitted. Proposed Chairman McComas outlined the purpose of the meeting and then called Operating upon District Manager Kubota for a report on the Proposed Operating Budget Budget for Fiscal Year 1972-73, as requested by the Committee, based on the merger and combined operations of the two agencies. Budget allocations for the two entities were gone over in detail, he explained, and a mutually agreeable budget was prepared by the two Managers, listing total budgeted expenditures, ex- cluding the purchase of water, of $404,568, with a projected savings of $33,320. Copies of this proposed budget were submitted to Committee Members for study prior to this meeting. Organization charts showing the present operations for the City and District were displayed on the blackboard by Mr. Kubota and he also presented a combined organi- zation structure based on the proposed merger. Eauipment He reported that the matters of personnel and equipment are still "^^^1^ unresolved at this time as there has been no appraisal from the City as to which equipment they wish to release, or evaluation as ^ar as personnel is concerned. He also reaffirmed the District's position as part of the original proposal that it will accept any or all equipment which the City deems appropriate and will produce the funds to lease or purchase any additional equipment that may be needed for the operation. Personnel In the matter of personnel, Mr. Kubota explained that the budget allocation fbr salaries was based on the City's Water Department Budget, with the speculation that 15% of the amount the City now spends on salaries will'be saved on the merger. No breakdown was made as to manpower and specific responsibilities, or the effect it would have on the City's operation. Public Works Director Friday called the Committee's attention to certain contractual conditions between the Water Department and other City Departments and explained that any segregation of the water function will affect the general public works activities. As an example he cited the arrangement whereby the digging operation for the sewer laterals is being handled by Water Department personnel and involves approximately ,507. of the working hours of two or three men. Director Carmichael stressed the fact that the District provides no sewer services and does not want to be involved with the sewer work. Col. Bowen suggested the need for a breakdown on the personnel that are absolutely needed to operate the enterprise, based on the combined venture. District Manager Kubota pointed out that outlining each area of responsibility would be an endless task and the one thing the District wanted to avoid was placing any of the City jobs in jeopardy. The District has remained firm on its position that it will take whomever the City wishes to release. Also discussed as a major factor in setting up the personnel and equipment requirements for the joint operation was the inhouse construction and engineering now being handled by City Water Department personnel. Under the District's present operation all construction work and engineering are contracted out. It was agreed that a considerable period of time would be needed to evaluate the costs under a joint operation and to make a determination as to the most economical method of handling construction projects. Mr. Robert Watson asked if there would be any additional charges involved with such a merger which should be considered. District Manager Kubota noted that one item was included in the proposed budget, an increase in the primary telemetry expense for the new reservoirs, with no anticipated savings in personnel. City Manager Arnold described some services which the Water Department has been sharing with other City operations and explained that in some instances there would be a burden on the City with the proposed merger, but that there are some costs that are inevitable. One item involved would be the rental for the Water Yard from the Street Department and the investigation now underway for enlarging the Public Works Yard for relocating these facilities. It was also pointed out that a concerted effort has been made to segregate the expenses for goods and services used by the Water Department and to get these into their proper prospec- tive . After further discussion, Chairman McComas called upon the Attorneys tor the two agencies to outline the next steps to be taken in getting a preliminary draft of a concrete operating agreement for the merger. Legal Counsel Swirsky suggested that a simple lease type of agreement be drawn up, using the 17 point check list. Mr. Watson suggested an 18th point be added as it relates to the Citizens' Advisory Committee. The next step would be to elaborate on these points as to how thev would take form. A list of personnel, based on positions not on individua 1sand a table of equipment will also be prepared and included as exhibits in the contract. Term of City Attorney:Moe called the Committee's attention to Paragraph 3 of Agreement the District's proposal relating to the term of the Agreement as "indefinite". It wa,-, his feeling that the contract should be sub- ject to termination at will, with a notice clause. After discussion, it was agreed that provisions should be included for termination after declaration by either party, with a reasonable time limit, based on recommendations from the Staff. ^^P^*^^^ At the suggestion of Robert Watson, it was agreed that another Improvements item should be included in the Agreement to clarify and define capital improvements that are now under consideration by the City of Carlsbad. He pointed out that fiscal matters and the method of procedure should be worked out so the City can look forward to updating of its needs. District Manager Kubota called attention to the $46,000 allocation shown on the proposed combined budget and explained that this is not a budgetary item for future capital improvements, but is the amount involved in the relocation of meters and services m connection with t|ie replacement of transmission mains under the City's Water Improvement Project.' '^^^^ Legal Counsel Swirsky indicated that a preliminaiy draft of the Schedule Agreement would be ready within two weeks for review by the City's Ad Hoc Committee and District Committee Members before calling the next joint committee meeting. Ratification by the City Council and the District Board of Directors would then be required to finalize tln^ matter. A tentative meeting date for the Joint Water Committee was scheduled i. r Wednesday March 8 1972, at 9:00 A.M. at the CMWD Headquarters. Upon proper motion, the meeting was declared adjourned at 10:10 A.M. Respect fuii V sebmi 11ed, Secre ta r y AGENDA AD HOC WATER COMMITTEE & C.M.W.D. Wednesday - January 26, 1972 - 9:00 A. M, City Manager's Conference Room Cal1 to Order. Roll Call . Approval of Minutes. Action taken: 3. Further Consideration of Management Aqreement Action taken: ^ /hn4L.Zi ^ z^ GjajcWL-v^—=r (l^- I 1^^ ^^^^