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HomeMy WebLinkAbout1986-01-08; Municipal Water District; MinutesI .. - MINUTES OF THE ADJOURNED MEETING OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT, HELD ON JANUARY 8, 1986, A? 2:OO P.M. AT 5950 EL CAMINO REAL, CARLSBAD, CALIFORNIA 92008. , ""_ The meeting was called to order at 2:02 p.m. by President Bonas, with Dirkctors Haasl, Kelly, Maerkle and Bonas answering roll call. Also present were General Manager Meadows, Controller Brammell, District Engineer Blakesley,'Superintendent Musser, Legal Counsel Moser and Executive Secretary. Lin Burzell, Rose Grimm, Scott Thomas, Barbara Barnhill, Lola Sherman, Roger Greer, Harold Engelmann and a number of developer representatives also attended . Approval of Minutes Upon motion of Director Maerkle, seconded by Director Haasl and unanimously carried, the minutes of the adjourned meeting of December 11, 1985, were approved as corrected. I Consent Calendar Ratification of Checks Director Maerkle made a motion Ratification of Investments to approve the consent calen- Acceptance of Improvements, dar, seconded by Director Carlsbad Tract 81-33; Pace- Kelly and unanimously carried. setter Homes, Unit No, 3 Acceptance of Improvements, Carlsbad Tract 83-25; Cam- ino Hills, Agreement I1 Unfinished Business - Major Facilities Charge: Mr. Meadows referred to re- Request for Prepayment quests from two developers (see minutes of 12/11/85) for Board consideration of prepayment of the Major Facilities Charge fee at the current rate, before the increase goes' into effect on January 20, 1986. Mr. Meadows and Mr. Moser have since met with the Finance and Administration Committee. They also met with Mr. Kim Kilkenny of Construction Industry Federation and Mike Foote, a developer. The meeting with Kilkenny and Foote involved discussion of the basis for the increase in the fee to $1590. Mr. Meadows summarized how this fee was arrived at to fund the total projected major facilities estimated to cost approximately $9.5 million dollars. I Mr. Moser said that he wrote a report to the members of the Finance and Administration Committee advising that the District has taken all the necessary legal steps to adopt the fee and reviewing the' justification for setting the fee at the proposed level. He reviewed the three alternatives available in response to the request for prepayment, but recommended, as did the Finance and Administration Committee (see Mr. Moser's memorandum dated January 1, 1986 in the agenda packet), "...that there should be no change in the method of implementing the $710 increase in MFCs adopted in November 1985." At President Bonas's request, District Engineer Blakesley explained the District involvement in processing of developers' projects. The District is ordinarily able to check and return a set of plans to a developer in about two weeks. A number of the developers' representatives present gave their reasons for requesting Board approval for prepayment of the fees at the lower rate, ,and all primarily indicated that the delays were with the City of Carlsbad. Mr. Kilkenny of the Construction Industry Federation, referred to his letter to the Board dated January 8, 1986, (see agenda packet) and reviewed his recommendation for a prepayment program. After discussion, Director Maerkle proposed a continuation of the $880 rate to March 1, 1986; then an increase to $1120 until June 1, 1986, after that date an increase to $1360 until September 1, 1986, when the proposed rate of $1590 will go into effect until it is changed by Board action, President Bonas suggested that this matter be.continued after a recess. I I Recess President Bonas called for a 'recess at 3:12 p.m. The meeting resumed at 3:25 p.m. Controller Brammell said that with Director Maerkle's proposal the District would lose approximately $568,000 in reduced fees. He added that the proposed fee of $1590 to begin on January 20, 1986, was based on accurate data and all legal requirements for public notification were met. Resolution No. 488 - Major After further discussion, Di- Facilities Charge rector Maerkle made a motion approving Resolution No. 488 to adopt his proposal as outlined above, seconded by Director Kelly. Roll call was taken and all ayed. Director Almack was absent. The resolution will be entitled: "RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT MODIFYING THE MAJOR FACILITIES CHARGE INCREASE ESTABLISHED BY RESOLUTION NO. 481." New Business Resolution No. 486 - Annexing Mr. Meadows reviewed the LAFCO La Costa Hi Reservoir proceedings following Board approval last May to apply to LAFCO for this annexation. This resolution represents the next step required of the District. Director Maerkle made a motion to adopt Resolution No. 486, entitled: "RESOLUTION OF THE BOARD OF I -2- January 8, 1986 DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT ORDERING ANNEXATION OF CERTAIN TERRITORY DESIGNATED AS LA COSTA HI RESERVOIR ANNEXATION TO THE COSTA REAL MUNICIPAL WATER DISTRICT," seconded. by Director Haasl. Roll call was taken and all ayed. Director Almack was absent. Directors Reports I National Water Resources Association Conference (Director Maerkle) Director Maerkle reported on this conference held in Hawaii which he attended as the District representative. Credit Cards Director Kelly brought up the subject of District credit cards and the policy followed in their use. He suggested that it might be a good idea to eliminate their use. Mr. Meadows responded that the District controls the use of our credit cards. Receipts are required before payment is made. Use is usually restricted to conferences and the cards are kept in the vault. He has discussed with Mr. Brammell the possibility of recommending a change in the policy to consider eliminating the credit cards and having the Directors submit a claim and sign a voucher. Director Kelly felt it would be appropriate, in light of recent credit card misuse, to publicize District procedure. Mr. Brammell suggested that since our current policy is an informal policy the Board might want to direct Staff to formalize that policy so it can be. adopted and incorporated into the Administrative Code. Director Kelly asked Mr. Brammell to prepare a formal policy for Board approval. Committee Reports Finance and Administration Mr. Brammell asked for Board approval in the' investment of funds from a certificate of deposit in the sum of' $500,000, that matured yesterday at an institution whose rates are no longer competitive. He reviewed the rates available (7.3 and 7.9%) at institutions that meet our criteria. Discussion followed and Director Haasl referred to the minutes of the committee meeting which mentions that the current LAIF rate is 9.43% After discussion Director Haasl made a motion to change our investment policy to utilize the maximum benefits of LAIF, seconded by President Bonas for further discussion. Mr. Brammell added that with additional funds received from the City of Carlsbad, he now has approximately $900,000 to invest, which under the current policy requires nine new institutions that meet our criteria. This is becoming more and more difficult. Legal Counsel Moser asked for clarification of the motion. Director Haasl said the intent is to change our policy to permit investment of up to $5 million dollars, the maximum currently allowed by LAIF. Directors Haasl and Bonas both ayed; Directors I I -3- January 8, 1986 Maerkle and Kelly voted no. After further discussion President Bonas made a motion to invest $400,000 in LAIF and $450,000 in Mitsubishi Bank, seconded by Director Haasl.,. Directors Haasl and Bonas both ayed; Directors Kelly and Maerkle voted no, Director Maerkle then made a motion that an additional $250,000 be invested in LAIF with the balance to be placed in banks, seconded by Director Kelly. The motion carried with President Bonas voting no. Personnel I Policy on Management Compensation Headquarters Expansion .. This was held over to the Board meeting on January 15. This was held over to the Board meeting on January 15. Staff Reports General Manager Certificate of Participation Mr. Meadows "referred to the Disbursement Procedures memorandum with attachments in the . agenda packet and recom- mended- approval of. Progress Payment No. 11 to Weardco Construction Corporation in the sum of $52,455.60 for work on the Santa Fe I1 Reservoir. Director Maerkle made the motion, seconded by Director Kelly and unanimously carried. Approval of construction Mr. Meadows referred to Certi- progress payments ficate No. 17 in the agenda packet in the sum of $73,165.57. and recommended approval. Director Maerkle made the motion, seconded by Director Haasl and unanimously carried., , Reordering Payroll Checks This request (see memorandum in the agenda packet) concerns the requirement on our current checks for two signatures when the amount is in excess of $5,000. Because of additions to our staff our withholding tax checks already exceed $5,000 and our credit union check will soon reach that limit. The Controller asked that the limit be increased to $7,500. After discussion Director Kelly made a motion approving the increase, seconded by Director Haasl, The motion carried with Director Maerkle abstaining. 1. I Agreement with Richard Osburn Mr. Meadows reviewed the cur- rent agreement- with Mr. Osburn (our part .time inspector), and requested Board action to enter into a new agreement under the same basic terms with the only change being that an additional $5,000 would be payable during this fiscal year. A termination date for Mr. Osburn's services has also been included as he will be working for others -4- January 8, 1986 I and will be unable to continue with the District. Mr. Moser added that the existing one-year contract with Mr. Osburn runs from June 12, 1985, to June 12, 1986, with a maximum dollar amount of $15,000. That amount was reached some time in December 1985 so the old'contract is automatically terminated. He is still working aild will be needed for a short time, so the ..new contract has been written to start when the old contract.was terminated and to continue until April. 1, 1986; for an amount not to exceed $5,000 under the same terms and conditions as the previous contract. Director Maerkle made the motion, seconded by Director Haasl and unanimously carried. Final Draft - Capital Copies of this draft were dis- Improvement Plan tributed; it is now updated and includes a map. This will be coming back to the Board with a recommendation for approval probably early next month. Copies will be given to the City for their review; a Joint Committee meeting is scheduled for January'l6 to review this and other matters. The hope is to adopt the Engineering Master Plan (previously released in draft form) and this Capital Improvement Plan. Urban Water Management Plan Copies of this already adopted report were distributed. This report has now been filed with the State. I District Engineer Resolution No. 487 - Approving Mr. Blakesley reviewed action Quitclaim to Newport Shores by the Bdard on December 11, Builders 1985, approving our quitclaim of a portion of the easement to this builder, Legal Counsel has prepared Resolution No, 487 entitled: "RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT APPROVING QUITCLAIM TO NEWPORT SHORES BUILDERS." Director Haasl made the motion,,' seconded by Director Kelly. Roll call was taken and all.ayed; Director Almack was absent. .. Approval of Reimbursement Mr. Blakesley referred to the Agreement for Offsite Water map and his memorandum (see a- System, Carlsbad Tract 72-34, genda packet) explaining the Rancho La Cuesta reasons for his recommendation to the Board to approve reimbursement to the developers, Newport Shores Builders, Inc., for half the cost of the system with a maximum of $68,369. After discussion Director Maerkle made the motion seconded by Director Kelly and unanimously carried. I La Costa Hi Reservoir Mr. Blakesley briefly reviewed Landscaping Plans the colored drawings of the plans and referred to his status report in the agenda packet. This is for information and requires no Board action. -5- January 8, 1986 Organizational Reports I Association of Water Reclamation Agencies San Diego County Water Authority Director Haasl advised that the next meeting is scheduled for January 9, 1986 at 9 a.m. Director Maerkle reported on their last meeting and gave water flow figures for the month of November 1985. Meetings and Conferences Water Agencies Association of San Diego County; January 16, Fallbrook Attendance at this group's next quarterly meeting was discussed. Transportation ar- rangements will be made at the next Board meeting on January 1 (Director Kelly left the meeting at this time.) Supervisors Training Seminar Mr. Meadows requested ap- January 31, February 7, proval for staff attendance Rancho Bernard0 at this seminar. After dis- cussion Director Maerkle made the motion to approve attendance as determined by the Manager, seconded by Director Haasl and unanimously carried. W.O.W. Program . President Bonas reminded the Board tha.t this program is scheduled for next Tuesday night, January 14 at 7 p.m. I Adjournment The meeting adjourned at 5:lO p.m. Respectfully su.bmitted, u I I I -6- January 8, 1986