1983-06-27
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SAN DIEGUITO WATER DISTRICT
59 EAST "0" STREET
ENCINITAS. CALIFORNIA 92024
(714}7531145
AGENDA
JUNE 27, 1983
l3OI\RD />lEErING
1. Minutes.
2. Award of contract for Bond Pipeline Project #3.
3. Review of Budget for 1983-84.
4. Discussion of joining "Undergronnd Service Alert" - a regional
one-call notification for underground excavation.
5. Establishing Sphere of Influence by LAFCO.
6. Discussion of installation of a-inch water main in Highway 101
COunty Park south 600 feet.
7. Accept water main installation in Santa Fe Drive as carplete.
Installed on C01..mty Road contract.
8. Authorize preparation of bid docurrents for construction of 46 fire
hydrants.
9. Discussion of approval of Mem:>randmn of Understanding with San
Dieguito Employees Asscx::::iation.
10. Request authorization to add one 30" valve to Ham contract.
11. CWA report.
12. Authorize annual audit by Grice, Lund & Tarkington.
13. Establisl1rrent of tax limitation for 1983-84.
14. Cash availability report.
Treasurer I s rer;:ort.
Payroll fund report.
15. Authorize payment of warrants.
16. other.
MlNUl'ES OF THE RmJLAR MEETING OF THE BOARD OF
DJ:REX:roRS OF SAN DIEGUITO WATER DISTRICT HEll
IN THE DISTRIcr OFFICE CN JUNE 27, 1983 I AT
9 A.M.
DIRF.X::roRS PRFSEm': Laena Dashiell, Robert E. Weidner, Lars D.
Fahlberg and Michael G. Harris.
DIREC'IDRS ABSENl': Fred B. Weston.
0l'HERS PRESENI': Manager James S. Tolley, Attorney Wallace R.
Peck, Recording Secretary Dorothy Christ,
Katte Bradley, and Melinda Mw:phy , representative
of the San Diego County Employees Association.
In the absence of the president and vice-president at 9: 00 a.m., Director
Harris presided as chaiI:man.
1. Minutes.
It was rroved by Director Weidner, seconded by Director Fahlberg, and
carried, that the minutes of May 23, 1983, be approved and ordered filed.
2. Award of contract for Bond Pipeline Project #3.
M3nager Tolley stated that bids were received fran four contractors, of
whan the lCMest bid was received fran Yahn Construction in the arrount of
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$339,250. The engineer1s estirrate was $429,233; bond funds allocated are
$495,000.
other bids received were Vadnais Construction $424,600, Hubbard Con-
structian $373,600 and Thibodo $432,300.
t1p::)n the recarnendation of the rranager that the bid of Yahn Construction
be accepted, it was rroved by Director Fahlberg, seconded by Director Weidner,
am. carried, that the bid of $339,250 received fran Ya!m Construction Co. for
the construction of 6950 feet of pipeline in Leucadia known as Bond Project
Pipeline No.3, be acceptecl, as set out in Resolution No. 83-17 under the
heading, "RESOLUl'ICN OF THE BOARD OF DIRErI'ORS OF SAN DIEX;UIW WATER DISTRICT
AWARDING CCNl'Rl\CT FOR crnSTROCrI(N OF WATER REVENUE BCND P= 3 TO YAIlN
<XNSTRU:TICN, INC."
Passed and adopted by the follCMing vote:
AYES: Directors Weidner, Fahlberg and Harris.
NOFS: None.
ABSENT: Directors Weston and Dashiell.
This resolution is set out in Resolution BcxJk No. 7 at page 30.
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9a Discussion of approval of Mem:>randum of Understanding with San
Dieguito E'roployees Associationa
Manager 'Iblley re:p::>rted that after several meetings between the San
Dieguito Water District flrployees' Organization representatives and himself,
with rranbers of the Personnel Carmittee present at various t.i..rres, it had been
agreed that a Mem:>randum of Understanding, attached hereto as Exhibit "A",
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had been approved and accepted by both cxmnittees.
He noted that a change of plan for the rredical insurance was being made by
cancelling the Prudential rredical insurance and transferring the district I s
rre:lical coverage to AailA, Blue Cross, IJ::Jw c:ption Plan, to beccrre effective as
S(X)n as :p::>ssiblea There ~d be no hiatus between plans and the maximum
out-of-pc:d<.et expenses per person per calendar year under the ACWA. plan for
"custanary" charges would be $500aOOa 'Iblley, in explaining the reason for the
changeover of insurance carriers, said that if Prudential paid a catastrophic
claim for one employee, the premium rate increase 'WOuld be 45%a Since we are
a stall group, we 'WOuld be subject to a :p::>tentially large increase under the
Prodential plan, but by coalescing with several other districts under ADflA
where the numbers are greater, rate increases resulting fran payrrents for
serious illnesses should not be as higha
The manager said that at the option of each employee the balance of
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PERS at 3a4% or a wage increase of 2a9% for those employees paying their CMn
PERS 'WOuld be given, effective July 1, 1983.
A life insurance :p::>licy of ccmparable value as is nCM held under Prodential
in the am::)\m.t of one year I s salary would be continued under an insurance canpany
to be selected by the district.
'Iblley said that the $200aOO a rronth survivors' beneficiary provision n<::M
in effect under Prodential provided a duplication of the survivors I beneficiary
payment for the employees as PERS also carried this provision for rrost of the
employees a Six employees had declined to sign up with PERS for the survivors I
benefit because of their coverage by Prodential for the same benefit. He said
that since rrost life insurance :p::>licies would not caJ:rY this provision for such
a stall number of people, he would endeavor to find a source of insurance which
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'WOuld pay the beneficiary benefits if PERS would not nCM allCM the six employees
to sign up for the PERS survivors I benefits a 'Iblley said he did not expect
PERS to allCM employees to sign up at this late date for the survi.vors I benefits
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as they had set a stipulated date for erployees to sign for this benefit at a
cost of $2.00 per rronth. He said that if it were i.:rrpJssible to arrange for
s1.ll:Vivors' benefits at this date either with PERS or an alternative insurance
CC1T!"U1y, the pay of each of the six employees ><lUld be increased $4.08 per
rronth, the arrount paid to Prudential.
Manager Tolley intrexluced Melinda Murphy, of the San Diego County Ellployees
Asscx::iation, who represents the SIWJ employees. She stated that the nerorandum
of understanding had been ratified by the employees although there was sale
reluctance on their part to cancel the Prudential medical insurance because
of the level of benefits under l'DIA. She said she would IIEet in the Fall with
the personnel ccmnittees to discuss the Personnel Manual.
Attorney Peck said that although he had pranised a o:I1pleted oopy of the
Personnel Manual by Septanber 15th, it \\Quld probably be a couple of weeks
later than that because he v.uuld be going on vacation in August and it is a
major task to prepare the manual.
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9: 15 A.M. Director Dashiell entered the IIEeting.
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It was rroved by Director Weidner, seconded by Director Fah1berg, and
carried, that the MEm:lrandum of Understanding between S~ and the SEW)
Employees Organization be accepted, as set out in Resolution No. R83-l8 under
the heading "RESOLlJrICN OF THE OOARD OF DIRECroRS OF SAN Drmrrro WATER DISTRIcr
APPROVING MEMJAANIlUM OF UNDERSTANDING WITH SAN Drmrrro WATER DISTRIcr EMPLOYEES
~IZATI(lil'. II
Passed and adopted by the following vote:
AYES: Directors Dashiell, Weidner, Fah1berg and Harris.
NOES: None.
ABSENT: Director Weston.
This resolution is set out in Resolution Bcx:>k. No. 7 at page 32.
13. Establishrrent of tax limitation for 1983-84.
Manager Tolley, in presenting the lirni tation of asseSSIEllt as per
Proposition 4, stated that this proposition limits the anount that may be
spent fran assessrrents received for the operation and rraintenance of the district,
which cannot arrount to nore than that raised in the years 1978-79, plus an
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adjustrrent for increased population, an increase in the ~ price index
or increase in personal per capita i.n.cc.rte. He said that after canputing heM
much we are al1CMed to receive, we must certify that we have not excee:led the
limits for the present year. He noted that for 1983-84, we are al1cwed to
coll~t $161,552.92 for operation and maintenance. Because the bonds were
approved prior to Proposition 13 about five years ago, we are also allcwed to
collect $214,392.59 for the principal and interest payrrent for the year. The
total assessment allowable amounts to $375,945.42.
Through May 31, 1983, for the fiscal year 1982-83 the District has received
a total of $324,177.38 for the 1:ond payrrent and for O&M.
Tolley rep::>rted that in confomance with the law the "Notice of
Availability of D:x::urrentation used in Detennination of the Appropriations
Limit of the District for 1983-84 Fiscal Year" had been posted on the bulletin
board in the front office.
Attorney Peck explained that with the passage in 1980 of Proposition 4,
~ as the Gann Initiative, under the California Constitution, appropriations
of certain state and local agencies were limited and the Legislature has adopted
statutes setting forth pnx;edures to be follCMed in detennining these
appropriation limits, detennined by increases in population and consurrer price
index or change in per capita i.ncc:rre.
Attorney Peck explained at sene length on the JTEaI1i.ng of the distinction
between "assessments II and "taxeS." M::>st irrigation districts have treated their
asseSEm:mts as taxes tmder Prop::>sition 4. This has not been litigated by the
courts, so there could be a question as to this procedure. Peck stated his
best judgnent is that the district I 5 assessments are subject to the 1% tax limi-
tation.
It was noved by Director Dashiell, seconded by Director Fahlberg, and
carried, that the appropriations limit for 1983-84 be established at $375,945.42,
as set out in Resolution No. R83-19 under the heading "RESOLUI'ICN OF THE B:lARD
OF DIRECroRS OF SAN DIW.lIro WATER DISTRIcr ESTABLISHING APPROPRIATICNS LIMIT
FOR THE 1983-84 FISCAL YEAR."
Passed and adopted by the follCMing vote:
AYES: Directors Dashiell, Weidner, Fahlberg and Harris.
NOES: None.
ABSENI': Director Weston.
This resolution is set out in Resolution Book 7 at page 33.
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3. Review of Budget for 1983-84.
Manager 'lblley presented a copy of the prq:osed budget for 1983-84, with
Atta.chrrent A sh.cMing the current water rates and Attachrrent B shcMing an
increased water rate of 4.3%. 'lhe 1982-83 budget was based on a 25% Hedges
water usage; the 1983-84 budget is based on a usage of 45% at a savings of
$286,000. CWA water rates have increased 24% this year and are expected to
increase another 21% next year. As in 1982-83, this year the district will only
pay interest of $931,000 on the 1982 oonds; next year when a principal payment
ITnlSt be made this will increase the b1.rlget by an additional $194,000. A pledge
was made to the 0000 buyers that a surplus of 1.30 each 0000 payment ~uld be
made; our current water rates will provide a 1.44 i..ncc:m= sw::plus.
Budget assurrptions are based an a 7% decrease in health insurance, a salary
bracket increase of 2.9% and a PERS reti.rerrent increase of 10.2%. Ea.n1ed
interest of 9% is the assumption used for invest:rrents.
Although the current rates are sufficient because of the increase in the
use of Hedges water, in the event of the possibility of our not being able to
use Hedges water, a 16.4% water rate increase would be r~.
The manager said he felt it would be mJre conducive to better public
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relations to raise water rates 4.3% this year and an additional 5.9% plus other
cost increases the foll00ing year. This will provide a budget cushion in the
event 'We cannot use 45% Hodges water. He proposed that the first increase be
nade, with no increase in the bi""'iIDnthly metering service charge, on October 1,
1983, after the high water usage peric:rl of stmltEr had passed, and the secx:md
increase be made an July 1 of 1984.
The manager canpared the water rates of the Olivenhain Municipal Water
District, which are 95(.' HCF for all darlE!stic water usage, for canbination users,
95(.' per HCF for the first 52 HCF and 74(.' thereafter, and for agricultural users,
all quantities at .74< HCF.
A discussion follCMed. on the rnatter of discriminating against a certain
class of user, in which the manager stated that agricultural users are entitled.
to the 5(.' rebate as this arrount is refunded by CWA (on parcels of one acre or
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rrore) . It has been established, he said, that water costs less to serve a large
voll.l'lle.
In response to a request fran Director Harris for further figures
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shcMing the i.n.carlIe derived fran water saLes by class and rate block area,
the manager said he w:Juld carplte these figures for the next rreeting.
The manager suggested that the budget not be adopted at this neeting
so that public input might be received.
4.
Discussion of joining "Undergrotmd Service Alert" - a regional one-call
notification for underground excavation.
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Manager Tolley reported that in 1982 the Legislature passed a bill which
requires all CMnerS of subsurface installations to beccrre rranbers of a regional
notification center by July I, 1983. He said that a present when a line lccation
is needed I 4-5 calls are made to notify all utili ties that this service is
~. Under a central organization, only one call would have to be made.
Theoretically, this would also eli1ni.nate the chance of error because a central
office w:>uld ensure that every utility is notified.
The manager refXJrted that this service would cost $30.00 a rronth for the
first 30 calls and fran 30 to 50 calls, another $20.00 a I1'Onth would be charged.
Attorney Peck stated that in scrutinizing the agrearent forwarded by the
Underground Service Alert to him, there were a few open questions, alt}x)ugh in
his opinion the district I s liability 'M:Juld not be increased to any greater
extent than I1CM exists at the present tiIre. He noted that concern has been
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expressed over certain provisions in the contract which agencies are asked to
sign when they join the center. HoNever, liability may be incurred by failure
to cx:mply with the law requiring a July 1, 1983 sign-up date.
The manager said that his own opinion is that the area contractors were
in favor of the center, assurred it w:JUl.d be correctly operated, and regarded
the one-call ooncept a good idea.
In concurrence by the board that such a system \\Ould be beneficial to
the district arrl should reduce the number of pipe breaks, it was rroved by
Director Weidner, seconded by Director Harris, and carried, that the
Underground Service Alert be instituted at this ti.ne by authorizing the
manager to sign an agrearent with Underground Alert for a pericxi of one
year, as set out in Resolution No. R83-20 under the heading lIRE'SQLillION OF
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THE BOARD OF DIRECroRS OF SAN DIEX3!JITO WATER DISTRIcr APPROVING AND AlJI'HORIZING
EXEUlrIOO OF l\SSOCIATE PARrY AGREEMENr WITH THE PRINCIPAL PARrIES TO UNDER-
GROUND SERVICE ALERI'."
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Passed and adopted by the following vote:
AYES: Directors Dashiell, Weidner I Fah1berg and Harris.
NOES: None.
ABSENI': Director Weston.
This resolution is set out in Resolution Bcok No. 7 at page 35.
s. Establishing Sphere of Influence by IAFCO.
Manager 'lblley briefly gave a histo:ry of IAFCO established. in 1965,
am::mg which one of its designations is for the purfX)se of ruling on detach-
rrents fran and annexations to political districts and establishing spheres
of influence in this respect. He said that although certain property is not
I1CM in our district, plarming may be rrade in advance for the pw:pJse of
providing water to these problan areas by notating them on a sphere of
influence map.
'lblley said that he had rret with the Olivenhain Municipal Water District
staff and a map has been prepared indicating the precise areas that are
affected. He said there are no conflicts be~ this district and CM'ID over
any property contiguous to 00t:h districts I and the map will serve as a guide-
line in future when water is required for these particular parcels.
The manager, pointing to a wall map, shc:Mecl the location of each parcel
which is affected and said that when service is required by the <MnerS to
these parcels of land, each owner would have the right to detennine which
district it would be advantageous for him to join.
The rranager said that it is not expedient to make additional demands on
our system because it has been sized to our existing needs and ~d be
difficult to expand. Many fX)rtions of the district I s system have reached the
ultimate fX)int in expansion plans. Any annexations made fran the sphere of
influence map I<OUld be offset by similar detachrrents.
Tolley said that the ct-m and S~ staffs have agreed that the spheres
of influence nap is acceptable and the (MoID l:oard has approved the sphere of
influence agrea1'81t between the too districts.
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It was rooved by Director Weidner, seconded by Director Dashiell, and
carried, that the txJard concurs with the described "Sphere of Influence" and
the exchanging of territo:ty with Olivenhain Municipal Water District on the
tenns outlined.
The nanager was authorized to notify LAFCO of the decision of the
lxlard.
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8. Authorize preparation of bid docurrents for construction of 46 fire
hydrants.
The district will be installing about 150 fire hydrants in three phases,
and Manager Tolley requested authorization to have James M. M::>ntgarery,
Consulting Engineers, Inc., at a cost of $700.00, prepare a S}?l9Cuication and
bid fom for the first 46 fire hydrants to be installed in various areas of
the district.
Upon notion by Director Fahlberg, seconded by Director Weidner, and
carried, it was rooved that the nanager be authorized to retain James M.
M::>ntgare:cy, Consulting Engineers, Inc., at a cost of $700.00, for the
preparation of S}?l9Cification and bid fom to cover the first phase of the
project for 46 hydrants to be installed in various areas of the district.
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6. Discussion of installation of 8 inch water main in Highway 101
Cmmty Park south 600 feet.
Manager Tolley stated that on Highway 101 fran Swami I s south to the
state park in Cardiff there are ten building lots that will eventually need
to be served with water. M1en the rraster plan was prepared, each rrap shc:Med
that this area was not suWi vided.
At the present ti.Jre the district has a 6 inch line in Highway 101, with
a 2 inch line serving the life guard station and one house. Although this area
was thought to be one large parcel of land when the rraster plan was prepared,
these ten lots do exist, and have for a number of years. In accord with our
fXJlicy, an adequate pipeline should be installed by increasing the size to an
8 inch line. There WJuld be a cost of $19,000 to install a nEM line and
fire hydrants plus $1600 for the engineering design to M::>ntgare:cy Engineering. -./
The funds are available and this \rollld be included in Project No.4, Tolley
stated.
Upon notion by Director Weidner, seconded by Director Dashiell, and
carried, it was noved that an 8 inch pipeline \rollld be installed in
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Highway 101 and the necessary fire hydrants between SWami. , s and the State
Park, to l:e installed. at a cost of $19,000, plus paynent of the design fee
of $1600.00 to Janes M. 1-b1t~1 COnsulting Engineers, Inc., be authorized
and approved.
7. Accept water main installation in Santa Fe Drive as canplete.
Installed on Comrty Road contract.
The manager reported that the installation of pipelines contracted for
with the Co1.D1ty of San Diego in oormection with the continuance of Santa Fe
Road fran Diarrond Head to El Camino Real has l:Jeen satisfactorily canpleted.
It was m:wed by Director Fah1berg, seconded by Director Weidner, and
carried, that the rnanager be directed to write a letter of acceptance to the
COunty of San Diego for the 12 inch line constructed by Cass COnstruction in
Santa Fe Drive as p:r the agrearent with the County, as set out in
Resolution No. R83-21 under the heading "RESOllJI'IOO OF '!HE BOARD OF DIRECroRS
OF SAN D=rrTO WATER DISTRIcr APPROVING AND ACCEPrING CCNSTRUCTICN OF
FACILITIES PURSUANr TO l\GREEMENI' WITH THE CXlUNTY OF SAN DIffiO."
Passed and adopted by the follCMing vote:
AYES: Directors Dashiell, Weidner, Fah1berg and Harris.
NOES: None.
ABSENl': Director Westan.
This resolution is set out in Resolution Eook No. 7 at page 36.
10. Request authorization to add one 30" valve to Ham Bros. contract.
Manager 'lblley requested that one 3D" valve be added to the district IS
36" pipeline, which \>.Ould be of t:enefit but that was not included in the
original plan. The rnaxi.m..m cost \>.UU1d be $12,000, or (X)ssibly a little less,
to install the valve.
The new 36" pipeline and the 30" subsiclial:y line are connected at ~
locations, one at Rancho Santa Fe Road and Encinitas Boulevard and the other
at Encinitas Boulevard 200 yards east of Balour Drive.
If a shutdcMn occurred, water oould be rrm down the b.u lines to this
point and only the darraged pipeline w:mld be out of service for a p::>rtion of
the way instead of the entire five miles to the plant.
With the addition of this valve on Encinitas Boulevard bet:\..1een the 30"
and 36" lines, this will allow water to be delivered to the district if there
is a problan with the interconnecting pipeline.
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Tolley ra:ruested that an addendum. be made to the contract with Ham
Bros. for a price not to exceed $12,000. M:::mtgarery Engineering and stan. Urban
are ~rking on making changes to the engineering plans which could reduce the
contract price.
It was rroved by Director Dashiell, seconded. by Director Harris, and
carried, that the contract with Ham Bros. be anended to include an additional
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30" valve on Encinitas Boulevard at a price not to exceed $12,OOOw
11. CWA report.
Director Dashiell , representative to the 0lA, reported on the May meeting
of that agency.
10:50 A.M. Director Harris left the neeting.
Director Dashiell tcx:>k over the chainnanship.
12w Authorize annual audit by Grice, Lund & Tarkington.
Manager Tolley reported that Grice, Lund & Tarkington, CPA firm, had
sul:mitted a quotation of $4280.00 as an audit fee to prepare the district's
financial statarents for the year ended June 30, 1983. The increase of this
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year1s fee over last year's fee of $3500.00 was due to an 8% increase in
their charges plus additional ~rk required as a result of the lxmd issue
and construction of the pip:line.
Upon IIDtion by Director Weidner, seconded by Director Fah1berg, and
carried, it was rroved that the manager be authorized. to sign an agreerrent with
Grice, Lund & Tarkington for the preparation of the annual audit for the year
ended June 30, 1983, at a fee of $4280.00.
14. Cash availability report.
Treasurer's report.
Payroll fund report.
After payrrent of the bills, the amJunt of $294,000 on hand was invested.
in the State Treasurer's District Fund. The Fund estimates that a 9.65%
rate of interest will be paid for the next quarter. The savings and loans
are paying 9.5% for $100,000 amJunts. I.ocal banks are paying approximately 9%.
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A discussion follCMed. on Ginny Maes as an investment vehicle and Director
Weidner said he ~uld investigate this as a possible rreans of deriving a
potentially higher rate of interest.
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It was noved by Director Weidner, seconded. by Director Dashiell, and
carried, that the aOOve financial reports be accepted.
15. Authorize payrrent of warrants.
It was rroved by Director Weidner, seconded by Director Dashiell, and
carried, that warrants number 10413 through 10489 in the am:::>unt of $969,260.87
be approved.
16. Other.
Director Dashiell stated that she was dissatisfied with the appearance
of the lx>a.rdrcx:m chairs. She was directed to consult with Earline Tanner,
decorator, to reupholster or replace the chairs.
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Director Weidner inquired. as to the pJssibility of obtaining dental
insurance for the directors through the district plan covering the employees.
Director Dashiell mentioned the J:X>ssibili ty of directors also being
covered under the new ADilA rredical plan.
'Ihe manager said he w::mld investigate the rratter of obtaining lx>th
medical and dental insurance coverage for the directors.
Manager Tolley reJ:X>rted that Mr. Wayne Smith had contacted the district
concerning the J:X>ssibili ty, in the event of his building a c:lwe,lling on his
property in the future, of obtaining an easanent for sewer purp:>ses fran the
District. His lot fronts on Rossini and Brighton Streets (rot 5) in Cardiff
and a contiguous lot is amed by the district. Tolley said ~~_
gravity sewer line across the district I s lot would appear to be the only way
Mr. Smith r s property could be served.
In discussion, it was J:X>inted out that running a line across district
property would be detrinental by l=ing the value of the lot. It was
suggested that a dollar anount w::mld have to be paid if an easarent were given,
and therefore an appraisal of the property sh:luld be rrade.
The manager will contact Jack Harrington, a lccal realtor wtxJ is
krlcMledgeable in the evaulation of property, and will obtain a quotation of the
arrOlmt he would charge to appraise the district property.
It was also suggested that perhaps another solution might be found to
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supplying sewer service to Mr. smith's lot.
Director Dashiell asked about the cathcxlic protection w:Jrk to be done
on Encini tas Boulevard and was infonned that the Oli venhain Municipal Water
District w:Juld be rmable to do the job. Tolley said that M:mtganeJ:y Engineering
and. Stan Urban are preparing a bid docurrent and in a couple of weeks bids will
be taken fran contractors who fomerly did ~rk for the district. He said the
County has given us a final date of Septanber 15, 19B3 for the canpletion of
this project.
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There being no further business to care before the txJa.rd, it was rroved by
Director Weidner, seconded by Director Fahlberg, and carried, that the rreeting
be adjourned.
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President ~
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ATl'EST :
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