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HomeMy WebLinkAbout1986-07-03; Municipal Water District; MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF COST1 REAL MUNICIPAL WATER DISTRICT, HELD ON JULY 2, 1986, AT 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 Directors Almack, Maerkle, Haasl, Kelly and Bonas answering roll call. Also present were General Manager Meadows, Controller Brammell, Engineer Blakesley, Superintendent Musser, Legal Counsel Schreiner and Executive Secretary Woodward. Geoff Poole, Rose Grimm, Barbara Barnhill, Darlene Himmelspach, Jane Skotnicki, Roger Greer, Bill Fletcher and Clarence Magnuson also attended. 1 Approval of Minutes Director Almack requested that approval of the minutes be postponed.to the next board meeting. It was decided that an adjourned- board meeting to consider the budget, will be. held on July 9, 1986 at 2:OO p.m. The minutes can be considered for approval at that time. Oral Communications from the Audience Director Maerkle.. The following response to the action at the last meeting involving the Water Authority, was read by Director Maerkle at the podium: "After the meeting of June 18 of the Costa Real Municipal Water District, I had been of the opinion that . Chairwoman Margaret Bonas was a-fine lady. After her harassment of me and making it look like I was no good-and I should resign from the San Diego Water Authority I went along. But after the smoke was cleared I listened to the tapes of the meeting and I had the tapes transcribed. I have changed my mind and things are not as you think or/and it is deceiving. I have been accused by ' the Carlsbad Journal .of having luncheon meetings with Directors. The only luncheon meeting I have ever attended was with Margaret Bonas at her request. And by the way, the Water District did not pick up the tab. I put it on my personal Mastercharge. After listening to all of the tapes and transcription of same, I have come to the conclusion that everything isn't as given out that day. Director Almack asked if she, Margaret Bonas, had talked to anyone about the matter. Water Authority that is. She states on the tape, "NO, I have talked with no one." Then, when I talked with Director Kelly, he informed me that Chairwoman'Bonas had taken .him to Lunch prior to the June 18 meeting and worked him over about me. I assume that Margaret got in touch with Director Haasl because right after that Director Haasl took Director Kelly out for coffee and also worked him over about things. Then as Director Almack questioned further, Margaret says she did not talk with anyone, Fred or Bill Meadows. But during the questioning Mr. Moser got involved and said, "I talked with the General Counsel for the Water Authority on how transitions like this occur. And, he said that the appointment of peop.le to the Water Authority is subject to change at any time, but it is done I I in two ways. It is either done by the unexpired remainder of a term or it's done by a new term which would start with a new appointment which is typically six years. The District in the past has apparently made this appointment by resolution. Because it has been m'ade by resolution, in order to change the appointment, that also has to be done by resolution. It is not like other committees per se." (end of quote from Mr. Moser) So you can see, things are not exactly as they turned out to be and I felt that Bill Meadows and Margaret Bonas must have had some talk with Moser or he wouldn't have had that all at the time. And I feel that Resolution 506 should be rescinded at the present time. And, as Margaret had said, the good old days have now changed. And that is true. I believe now what they should say is private luncheon meetings to discuss public matters is what it should be . 'I President Bonas thanked Director Maerkle and asked for comments. Mr. Meadows advised that Mr. Moser called 'Mr. Engstrand at the coffee break (referring to the meeting of June 18). President Bonas said she had not talked with Mr. Moser, but had, prior to the meeting, given him a copy of what she was going to say. She also added that she had not met with Director Kelly to rake Director Maerkle over the coals. D.irector Kelly confirmed that he had not said that President Bonas had worked him over about Director Maerkle. I 1 President Bonasthen said shewouldnot rescindher actionofthe last Board meeting. She deferred to Legal Counsel Schreiner and asked for comment. Mr. Schreiner said the action was appropriate as taken at the time and that a resolution: has been prepared evidencing the Board's action at the last meeting. Director Maerkle said he wants to change his vote to no on the resolution because it hasn't been adopted as yet. His original vote was to abstain. Mr. Schreiner advised that the adoption has been taken and didn't feel that the rules under which the Board operates permits the unilateral changing of a vote at the meeting following the meeting at which the vote was taken. The record can indicate that had Director Maerkle had an opportunity'to vote he would have voted no but, as a matter of fact he did abstain at the time that the official vote was taken. The resolution does stand. President Bonas then reiterated that her action last meeting was taken for the good of the Di'strict and believes that is still true . I Mr. Schreiner then advised, in response to inquiry from Director Kelly, that the only time meetings of the type referred to above can be deemed to infringe on the public's rights under the open meeting law, is if there's a series of meetings, the purpose of which is to avoid an open session dealing with some District business. -2- July 2, 1986 Consent Calendar A. Ratification of Checks Director Kelly made a motion B. Approval of Plans and Agree- to approve the consent cal- ments: Calavera Hills Unit endar, seconded by Director No. 4; Villages OP-1, 85-308 Almack. Director Maerkle C. Conditional Approval of Plans . asked that item 4.E. be held and Agreements: Pannonia; over. to the next meeting. CR"D 85-307 President Bonas asked about D. Hold Harmless Agreement: item 4.C. Mr. Blakesley re- La Costa South Unit No. 5; viewed this project, the ap- E. Adoption of Resolution No. 507; upon posting of the bond and Changes to Administrative completion of other items by Code per Board Actions on the developer . (see memorandum Personnel Matters in agenda packet). Because item 4.E. is being held over, the resolution for item 4.D. becomes No. 507 and reads as follows: "RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT ACCEPTANCE OF HOLD HARMLESS AGREEMENT, LOTS 385 AND 386, LA COSTA SOUTH UNIT #5, PARCEL MAP 6600." After discussion, Director Haasl made a motion approving items A, B, C and D, seconded by Director Almack and unanimously carried. Award of Contract I Lots 385 and 386, 86-C-175 proval of which is contingent I Camino de las Ondas Pressure Mr. Blakesley advised that the Reducing Station: CRMWD No. 85-108 firm of Taylor & Hoover Inc. was the low bidder at $61,900.00. They are a local firm with a good reputation and he recommended that the Board award the bid to them. Director Maerkle made.the motion, seconded by Director Almack and unanimously carried. Unfinished Business Refunding of the 1984 Certi- Mr. Meadows said that quite a ficates of Participation: bit of work has been done in Status Report analyzing and reviewing this situation, not only by Bartle Wells Associates but by our staff and bond counsel as well. He asked Mr. Brammell for his report. Mr. Brammell advised that the outcome of researching the refunding of our 1984 certificates of participation has determined that it would not be financially advantageous to the District to pursue this and our staff has directed that no more work be done on the refunding. We won't generate the savings we thought we would but there will be money left over when the reservoirs are completed in November. This was taken into consideration and a program has been devised that will provide significant debt service reduction to the District utilizing that money that will be left over. They had a chance to update the overall financial prog,ram of the District and it was fouqd to be in excellent financial shape. Previous decisions regarding the capital improvements area that this Board has approved put the District in a position of being able to deal .. I -3- July 2, 1986 effectively with the repayment of the debt on the 1984 certificates. He added that a number of things have been done that would allow us to move forward with the refinancing if significant changes in the rates available to us should happen between now and September 1st. Discussion followed. Release of Liability: Woodside/ Mr. Schreiner referred to the Kubota Associates, Inc-; Opinion.' letter from Mr. Moser to Mr. from Legal Counsel Blakesley and the resolution Resolution No. 508 prepared by Mr. Moser. He read the letter and the reso- lution entitled: "RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT REGARDING TERMINATION OF APRIL 10, 1985,. AGREEMENT FOR ENGINEERING SERVICES." Discussion followed. Director Kelly made a motion approving the, resolution, seconded by Director Haasl. Roll call was taken and the motion was approved unanimously ... New Business' Fiscal Year 1986-87 Budget Mr. Meadows referred to the draft -budget in the agenda packet. This will be the main item at the adjourned meeting next Wednesday. Mr. Brammell then gave an overview of the budget, mentioning the variances from previous years in'accordance with Board directives.. (See cover memorandum in agenda packet.) A number of items are yet to be included' in this budget. He added that various .budget appropriations and tax rate's. must be sent to the County by September 1, 1986, and suggested trying to get the budget adopted by the second regular Board:meeting in August. Discussion followed. I. 1 Recess President Bonas .called for a recess at 3:11 p.m. The meet- ing resumed at 3:26 p.m. Committee -Reports Headquarters Expansion -Committee Director Maerkle said it. was a very productive meeting (see minutes in agenda packet). Mr. Brammell added that Mr. Lumsden called this morning to report that he has been to City Hall to look at what's available and to pick up the processing requirements for a site development plan. He has asked staff to request a preliminary title report on the property and, also a final survey of the property including topography data. He has concerns on slopes, easements and slivers of land that don't belong to the District. The title search will cost approximately $500 and the aerial -survey will probably be about $3300. The Board was in agreement and Mr. Brammell said he would make the requests. This will impact the date of the next Committee meeting. An estimate would be a month from today. Xeriscape Committee Director Haasl referred to the minutes (in the agenda packet) I -4- July 2, 1986 I of their last meeting at which they planned the tour of the Tree of Life Nursery and the Mission Vie jo Company's drought tolerant .. plantings. They were very impressed with the nursery and its o.wner, but disappointed with the Mission Viejo Company's representative and his display. She wants to have another Committee meeting to decide how much to budget for Xeriscape and to see what the rest of the Board might want to do. President." Bonas suggested asking the nursery owner to make a presentation to the AWRA group and invite developers so they can see what can:. be done with dry landscaping and the utilization of reclaimed water in areas where permitted. Director Almack said this man will be happy to work with us in promoting the Xeriscape.concept, President Bonas felt that the Planning Commission as well as th,e. City Council should be invited to any presentation we might plan for this subject. Director Haasl said Rose Grimm had something further to report on this. Staff Reports ... Public Information Officer Mrs. Grimm reviewed the list in promoting Xeriscape. These include City Council and staff, Planning Commission, landscape architects, developers, representatives from both Sammis and Hunt Brothers. Haven't decided exactly how to implement this as yet. Director Kelly referred to our own drought tolerant garden which Ralph Wrisley did for the District. Roger Greer recommended including the League of Women Voters in the above list. Engineer Mr. Blakesley reported that they have been busy preparing plans for our capital improvement projects, getting Santa Fe I off line, getting a new aqueduct connection and PR station. Ready to order materials and complete simultaneously with completion of the reservoir and pipeline. The last pour on the. reservoir roof was made today. They will start wrapping the reinforcing wire in about two weeks. The contractor is trenching .. for the drain line. The pipe should be fabricated by the time that is ready. Requests for Proposal have been sent to five local engineering firms for design of the pumping station at Calavera Hills. Expects responses by next Wednesday. Will analyze and make a recommendation at the next regular Board meeting (July 16). of those they hope to involve'. I President Bonas asked about the Squires Dam project by Blaylock- Willis. Mr. Meadows said that he talked with Mr. Blaylock yesterday and they have issued'another report which says that the flapper valve assembly is operational but there is a potential problem with water velocity, in and out, and a potential of some movement of the flapper. They have decided they should go back down and install a clamp on the inboard side of the cable. On that recommendation, Mr. Meadows has authorized him to proceed with the additional work which will involve a couple hours worth of work for one diver with an attendant. Mr. Musser said they are coming out Wednesday at 8:30 a.m. to do this work. They D -5- ,July 2, 1986 should then be able to certify to the State that the valve would closeondemand. Mr. Meadows saidwhenthisworkis done he will prepare a summary and send it along with the Blaylock reports to the State and request the State to approve what we've done. Discussion followed. Mr. Blakesley reported completion .of the conversion of the metering station on Alga Road to a pressure reducing -station. They are now about ready to put the La Costa Hi Reservoir in operation. Still have some agreements to enter into with San Marcos and La Costa. Mr. Blakesley advised that the City of Vista is getting ready to put t0gether.a large improvement district north of the Carlsbad raceway. This. will include replacing the water service we have in to temporarily serve the raceway. The outcome of the meeting with the developer, the City of Carlsbad, the Vista Irrigation District and ourselves is that they plan to annex the raceway property to the District. It is currently in the City of Carlsbad but not the District. We are proposing an intertie with VID at the intersection of Linda Vista and Palomar Airport Road right in front of the raceway property. VID will then serve the raceway with a service agreement with CRMWD. Superintendent Mr. Musser said he has been in contact with San Marcos regarding the operating agreements to finish up as far as purchasing water and regulating water through their pipeline and into ours. Electric power has to be connected at the intersec- tion of Alga and El Fuerte streets to energize the meter before putting La Costa Hi Reservoir into service. The lake is at 496.8 feet and we are buying 25.5 c.f.s. Our maximum purchase in the past has been 26 c.f.s. and we expect to exceed that this year. Controller Mr. Brammell advised that our fiscal year ended June 30, 1986. The auditors were here Monday for inventory. -They expect to be finished with the audit by the middle of August. I. I Attorney No report. Manager Certificate of Participation Disbursements: Construction Progress Payments Mr. Meadows recommended ap- proval (see memorandum with attachments in agenda packet) of Progress Payment No. 17 tc Weardco Construction Corporation in the sum of $74,196.90 for work on the Santa Fe I1 Reservoir; Progress Payment No. 22 tc Weard-co Construction.Corporation in the sum of $14,545.75 for work on the La Costa Hi Reservoir; and Progress Payment No. 2 tc Chilcote, Inc. in the sum of $46,530.00 for work on the Santa FE I1 Reservoir Transmission Main. Director Haasl made the motion, I -6- July 2, 198C I seconded by Director Kelly and unanimously carried. Disbursement of Project Costs Mr. Meadows recommended ap- proval of Certificate No. 25 (see agenda packet) in the sum of $334,260.51. Director Haasl n~~de the motion,.seconded by Director Almack and unanimously carried. Earthquake Insurance Mr. Meadows advised that when for the New Reservoirs the financing for the three reservoirs was arranged, one of the requirements was that we provide earthquake insurance for the three reservoirs. If this was not available at a reasonable cost the District agreed to provide self-insurance. When the premium increased from about $10,000 a year to over $50,000 a year we were able to get insurance through ACWA/JPIA for about $11,000 a year and terminated the earlier policy. That insurance was terminated in May 1986 because ACWA/JPIA lost that coverage. The Board can consider (1) attempting to find coverage and reviewing the premium cost, or (2) pursue the matter of self insuring. Discussion followed and Mr. Schreiner advised that earthquake insurance is not a State requirement, This is only specified in the Certificates. of Participation documents, Mr. Schreiner suggested that the Manager come back with a report so the District can establish a self-insurance policy and build that into our budgetary and financial policies and procedures. Supplement to District/City . Mr. Meadows advised that he Agreement - Plan. Checking hopes to ~eet with Mr. Aleshire in the next few days on this matter. I Organizational Reports Association of Water Director Haasl advised that Reclamation Agencies the next meeting is scheduled for July 10 at 9 a.m. at the District offices. She will report on this and the San Diego Region Water Reclamation Agencies meetings at the next regular Board meeting. Adjournment The meeting adjourned at 4:30 p.m. until Wednesday, July 9, 1986, at 2:OO p.m. Respectfully submitted, 1 -7- July 2, 1986 I NOTICE OF ADJOURNMENT Notice is hereby given that the regular meeting of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT on Ju.lY 2, '1986, at 2:OO p.m., has been adjourned to July 9, 1986, at 2:OO p.m., in the Board room, COSTA REAL MUNICIPAL WATER DISTRICT, 5950 El Camino Real, Carlsbad, California. I DATED: July 3, 1986. COSTA REAL MU AL WATER DI'STRICT and the Board irectors thereof 1 I A .1 DECLARATION OF POSTING I, the undersigned, say: That I am a citizen of the United States, over eighteen (18) years of age, and a resident of 'the County-of San Diego, State of California, in which the within-mentioned posting occurred, and not a party to the subject cause of proceedings. I I posted a copy of the attached NOTICE OF ADJOURNMENT on the bulletin board of COSTA REAL MUNICIPAL WATER DISTRICT, at 5950 El Camino Real, Carlsbad, CA, on July 3, 1986, and i. within twenty-four hours of the adjournment of the Board meeting of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT on July 2, 1986. I declare, under penalty of perjury, that the foregoing is true and correct. Executed on July 3, 1986, at Carlsbad, CA. I 2 .&A