1966-02-08
i INUTES OI' 1HE SPEC IAI, 11!IEET IIv G OF THE
BOARD OF DII-ECTORS OF THE SAN DIEGUITO
IRRIGATION DISTRICT HEZD IN THE DISTRICT
OFFICE IN ENCIITITAS, CAI,IFORNIA ON
FEBRUARY 8, 1966 AT 9: 00 A. Td.
Pursuant to Resolution R66-6 passed and ad.opted by the Board
on February l, 1966 and in accordance with notice served in
accordance with law, a special meeting vlas held in the District
office at 9:00 A. M. on Febrvary 8, 1966.
The meeting wias called to order by President IVeston. At-
tendance was as follows:
Present: Directors Pearson, Noonan, Bingham, Cermak and
Weston; Assessor-Collec tor Taylor, Secretary-~Mlanager Mills,
Attorney Cranston, and Engineer Holmgren of James NI. NTontgorr!er,y,
Inc.
Absent : Tdone
Tne minutes of the meeting of December 14, 1965 and January 11, 1966
tivere approved and order filed.
Secretary-IiIanager Pllills declined -to make a report at this
time stating 'uhat a comprehensive report is being written v,rhich tivill
be mailed to the Directors.
Superintendent Brine reported that 2800 fEet of pipe was
installed last month a._nd vrork is progressing Well on the Seaside
Cardens job.
Mr. Cnarles Hales, the District's representative to the
San Diego County Water Authorit,y reported on the Districtts water
allocation from the Authority, and on the possibilities of Saline
conversion at the San Onofre Nuclear Power Station.
Mr. Richard Holmgren of Ja.mes M. Montgomery, Inc. presented
a report to the District on ~21e project to be financed by the
proposed sale of general obligation bonds.
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Upon motion by Director Cermak, seconded by Director Noonan,
and carried, the following resolution was adopted:
RESOI,UTIOTt R66-7
RESOZUTION OF THE BOARD OF DIRECTORS
OF SAN DIEGUITO IRRIGATION DISTRICT
ACCEPTING ENGINEER' S REPORT AND
ADOPTING PLAN FOR PROPOSED PROJECT.
WHEREAS, this Board by its Resolution R66-5 has hereto-
fore employed the engineering firm of Jasnes M. TVIontgomery, Inc.,
of Pasadena, California, to prepare surveys, examinations and
drawings necessary to furnish the proper basis for makin,g an
estimate of the axnount of money necessary to be raised for the
acquisition and construction of a large capacit,y reservoir,
filtration plant, transmission 1ine, and related facilities;
and
WHEREAS, said engineering firm has today submitted its
report entitled "San Dieguito Irrigation iDistrict Preliminary
Design and Cost Estimates for Filtration Plant, Filtered tiilater
Reservoir and Main Transmission I,ine" writh reference to said
matters above mentioned; and
tiiINEREAS, this Board has considered said Report and Plans
for said proposed project; and
WHEREAS, said Report indicates that the proposed bond
issue should be in an amount of $3,050,000 rather than in the
amount•of $3,000,000 as contemplated by said Resolutior_ R66-5
above mentioned,
NO'Id, THEREFORE, the Board of Directors of San Dieguito
Irrigation District does hereby resolve, determine and order
as follows :
Said RePort of James N. NIontgomerY9 Inc. of Pasadena
,
California referred to above is hereby accepted and adopted
as the Plan for said proposed project, and the air!ount o" the
bond issue proposed to be submitted to the voters of the District
is hereby increased to $3,050,000.
Passed and adopted by the follodving roll call vote:
Ayes: Directors Pearson, 1loonan, Bingham, Cermak and Westcn.
Noes : None
. Absent: None
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In order to get the bond issue on the June Primary, it is
necessary to have the Districts Securities Commission investi-
gate the project and make a r-eport.
Upoz~. motion by Director Pearson, seconded by Director Cermak,
and carried, the following resolution was adopted:
RESOZUTION R66-8
REQUESTING INVESTIGATION AND
REPORI BY THE DISTRICT SECURITIES
COMMISSION PURSUAIdT TO CHAPTER l,
1ART 9, DIVISIOPI 11 OF TIIE, WATER
C ODE .
WHEREAS, this Board has heretofore employed the
engineering firm of James M. Montgomery, Inc., of Pasadena,
California, to prepare surveys, examinations and drawings
necessary to furnish the proper basis for making an estinate
of the axnount of money necessary to be raised for the acquisi-
tion and construction of a large capacity reservoir, filtration
plante transmission lin:e, and r.elated facilities; and
`iiIHEREAS, this Board has received the report oz said
engineering firm, and by Resolution PTo. R66-7 adopted on
February 8, 1966, approved said report and adopted it as the
plan for the proposed project; and
WHER.EAS, this Board is desirous oF calling a special
election in the district to be consolidated witn the stateviide
primary election on June 7, 1966, i'or the _purpose of authorizing
construction bonds to finance the project;
NOW, 1HERFORE, the Board of Directors of San Dieguito
Irrigation District DGES HEREBY RESOI,VE, DETER1,iINE, AND ORDER
as follovrs:
- Section l. The California Districts Securities Commission
is hereby requested to examine the plan for the proposed project
including the making of a.ny additional surveys and examina-tions
it deems proper or practicable, to issue its Report pursuant to
Chapter -1, Part g, Division 11 of tne Water Code.
-Section 2. The Secretary is hereby directed to certify
and file a copy of this resolution with said Comsnission, to-
gether with six copies of the report of Ja.mes M. Niontgomery, Inc.,
and a11 other docv.ments and information required by the Rules and
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Rebulations of said Commissionm
Passed and adopted by the following roll ca11 vote:
Ayes: Directors Pearson, Noonan, Bingharn., Cermak and tiVeston.
Noes: None
Absent : None
A report to the District Securities Commission must include
a statement as to whether the District interlds to call For bids
or to d.o the construction of the project under Lne Disi.rict's
ov+m supervision. Upon motion by Director Cernlak, seconded by
Director Bingham9 the following resolution was adopted:
RESOI,UTIOTr R66-9
DECLARING THE SAN DIEGUITO IRRIGATIOI~1
DISTRICT'S INTENTION TO CAI,I, FOR BIDS
FOR THE CONSTRUCTION OF CERTAIN tiVORK
WHEREAS, this Board has heretofore employed the firm
of Ja.rles N. Nlontgomery, Inc., of Pasadena, California, as
engineers to prepare plans for the acquisition and construction
of a large capacity reservoir, fill;ration plant, transmission
line, and related facilities, and has accepted the report oi
said engineers so employed, and has adopted said Report as
a plan for said project;
TTOV1, THERFORE BE IT RESOZVED 73Y THE BOARD OF DIRECTORS of
San Dieguito Irrigation District that this Board hereby declares that
it intends to call for bids for the construction of the works
referred to in said Plan and does not intend to proceed to
construct the works under its ovzm superiritendence.
Passed and adopted by the following roll call vote:
A,yres: Directors Pearsons Noonan, Cermak, Bingham, Weston.
Noes: None
Abaent: None.
A proposal was read froln the J. B. Hanauer Co., Nlunicipal
Finance Consultants, and was discussed at some lengtn. Upoi1 motion
by Director Cermak, seconded by Director Noonan, and carried,
the following resolution was adopted:
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RESOI,UTIOPT R66-10
AUTHORIZING EXECUTION OF COIVTRA.CT
BETWEEPI FIldANC IAI, C ON SUZTANT S J. F.
HAIvAUER COPa'IPA1VY AND SAN DIEGUITO
IRRIGATIOIv DISTRICT
BE IT RESOI,VED BY THE BOARD OF DIR_ECTORS of Sa.n Diegvito
Irrigation District that J. B. Hanauer Company, a corporation,
Financial Consultants, be, and tney hereby are, emplo,yed as
financial cor_sultants to render services in connection with the
issuance of General Obligation Bonds of tlzis District, upon the
terrns set forth ir_ a contract witr this District, a copy of
vvhich proposed contract is attached to the Minutes of this meet-
ing, marked 11Ex1iibit A" and by tnis reference made a part herEto.
BE IT FURTHER RESOI,VED that tne ofi'icers of this District be,
and they hereby are, authorized to execute said contract on behalf
of the District.
Passed and adopted by the following roll call vote:
Ayes: Directors Pearson, Noonan, Bingham, Cermak and VVeston.
Noes: None
Absent : None
Superintendent Brine reported on the D;strict's need for
additional mobile units for field. radio coz~munications. Upon
motion by Director Noonan, seconded by Director Cermak, the of-
ficers of tne District were authorized -to investigate the avail-
able units and to purchase those which they deem to be the most
desirable.
LTpon motion by Direc:i.or Pearson, seconded by Director
Noonan, and carried, warrants number 20759 through 20795 zn the
amount of $41,012.98 were authorized for payment.
The District has purchased a substantial amount of pipe from
firms which have been named in anti-trust actions. Upon motion.-by
Director Bingham, secor_ded by Director Pearson, the following
resolution was adopted:
RESOI,U`rION R66-11
AUTHORIZING aAPI,OYMENT OI' JET~TNINGS, ENGSTRAND
H:+ENRIKSON ATTORMEYS AT I,1?W, TO REPRESENT
LHE DISZRIGT IiV E11TTI-1RUST AC`.CIOId AGAINST CER-
TAIIv PIPE COMPANIES.
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BE IT RESOZVED BY `.CHE BOARD OF DIRECTORS of San Dieguito
Irrigation District that Jennings, Engstrand & Henrikson,
attorneys at I,aw, be, and they hereby are, employed as counsel to
respresent this District in al1 anti-trust actions against cer-
taizz pipe companies to recover all su.ms to which this District
is entitled under the Anti-Trust laws of the United States upon
the terms set forth in the letter from said Jennings, Engstra.d, &
Henrikson by Wallace R. Peck, directed to John M. Cranston, attor-
ney for this District, dated February 3, 1966, a copy of which
letter is attached to the Niinutes of this meeting, marked
Exhibit B, and by this reference made a part of said minutes.
Passed and adopted by-the following roll call vote:
Ayes: Directors Pearson, Noonan, Bingham, Cermak and
Weston.
TJoes: None
Absent; None.
Mr. Holmgren informed the Board that Olivenhain MIunicipal
jVater District had directed -their engineer, Bill Curtis of
Boyle Engineering, Inc., to discuss with Nir. Holmgren the possible
benefits and advantages to the Districts in inerging their interests
in building a reservoir for common use. T-hG Toard authorized
DTr. Holmgren to discuss any and all sub j ects whiclz rnight affect
the future plan.ning of the District tivith the representatives of the
surrounding districts. The recommendations arising from thepe
discussions should be reported to the Manager but the District is
not to be ba.und in any way during the discussion.
A letter from the Department of Housing and Urban Affairs
referring to the District's applica-tion for an engineering
advance was read to the Board. It indicates that the Board must
resolve to conform to the provisions,of the Civil Rights Act
of 1964. Upon motion by Director Pearson, seconded by Director
Cermak, and carried, the following resolution was adopted:
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RESOLUTION R66-12
AUIHORIZIITG EXECUIION OF ASSURA.NCE OF COIViPZIANCE
WITH THE HOUSING AND HOl!2E FINANCING AGENCY REGU-
LATIONS UNDER TITLE 6OF . THE CIVII, RIGHTS ACT OF
1964
RESOZVED BY THE BOARD OF DIRECT.ORS of the San Dieguito
Irrigation District tha-t President Fred B. VVeston, authorized
representative, be ancl he hereby is directed by the Board of
Directors to execute the assurance of compliance with the Housing
and Horne Finance AgencJ Regulations of the Title 6 of the Civil
Rights Act of 1964.
Passed and adopted by the following roll call vote: AYES: Directors Pearson., Noonan, Cermak, Bingham and Weston.
NOES: None
ABSETTT : None
Due to an error in advertising the meetings scheduled for
Calendar Year 1966, it i:s necessary that the action taken i2 the
January meeting be ratified. Upon motion by Director Cerz-nak,
seconded by Director Pearson, and carried, th.e following resolutidn
was adopted:
RESOZUTION R66-13 ~
RATIFYING ACTIONS TAKEN AT MEETTNG
OF THE BOARD OF DIRECTORS OF SAN
DIEGUITO IRRIGATION DISTRICT HELD
JANUARY 11, 1966. _
WHERFAS, this Board b,y its Resolution R65-46 adopted
December 14, 1965, set the second Tuesday of each month
at 9:00 A. M. at the office oz this Dis-Lrict, 59 East D Street,
Encinitas, California, as the time and place for regular mee-(;ings
of the Board of this District during the calendar year 1966; and
4VHEREAS, by error and inadvertence publication of said
resolution for the time required by law was not completed prior
to the rneeting of this Board held on January 11, 1966;
NOW, THEREFORE I3ET'T`i RESOZVED BY THE BOILRD OI' DIRECTORS
of San Dieguito Irrigation District that al1 actions of this Board
taken at said meeting of Jan.uary 11, 1966, be, and they hereby
are, ratified and confirmed as the actions of this Board.
Passed and adopted by tne following roll call vote:
Ayes: Directors Pearson, Noonan, Bingham, Cermak and
Weston.
Noes : None As'oent : None
There being no further business, a motion was made by
Director Bingham, seconded by Director Cermak, and carried
that the meeting be adjournede The meeting was adjourned by
President Weston.
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APPROVE .
i
President
ATTEST:
S CRETARY ~
_1:G-.
. . ,A ~ r . ;
AGREEMENT
THIS AGREEMENT, ,made in duplicate this day ~
of , 19 , by and between J: B. HANAUER & CO., a ,
California corporation having its principal place of business at 9300 Wilshire '
Boulevard, Beverly Hills, California (hereinafter called "Consultant"), and
, SAN DIEGUITO IRRIGATION DISTRICT, County of San Diego, California
(hereinafter called "District"), ,
WITNESSETH: I
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CONSULTANT hereby covenants and agrees to act as FINANCIAL '
CONSULTANT to the DISTRICT and the DISTRICT agrees to so employ
CONSULTANT in conjunction with the financing of additions, improvements '
and betterments to the DISTRICT'S water system, as now contemplated by '
the DISTRICT, or as hereafter modified during the term of this agreement
(hereinafter referred to as the "Program"). .
II
CONSULTANT will perform the following services, to wit:
A. Preliminary Survey: CONSULTANT will confer with
the Board of Directors and other District officials for
the purpose of making a preliminary financial survey
of the Program and to assist in the formulation of a
coordinated plan to finance the Program. B. Financial Report: CONSULTANT will prepare and -
furriish DiSTRICT a Financial Report for the Program,
which shall include:
1) A. discussion of alternate financing.methods
for the Program; •
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2) Recommendations as to the financing method to be used; •
3). An analysis of estimated interest costs which
the DISTRICT will have to pay on ite obligationa;
4) A compilation of all monies needed by the DISTRICT to finance the Program, together with a study of anticipated funds available to
pay operating costs of the Program, and
principal and interest on the bonds;
5) tln analysis of rates, taxes, and/or special
assessments required to finance the Program
and an estimate of funds to be received from
these sources;
6) An analysis of the basis of assessment levies . ,
and recommendations concerning the various means by which these assessments can be
funded and sold at public or private sale, if
it is decided to levy special assessments to
finance all or part of the Program;
7) Detailed recommendations as to the .technical
features of the bond issue or issues, including maturity schedules, call features, reserve
funds, and othe r pertinent data;
8) Suggested covenants. between the DISTRICT and ,
its revenue bond holders, which covenants will '
enable the DISTRICT to sell its bonds most
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advantageously, in the event revenue -
- bonds are to be sold to finance the Program;
9). Detailed tables based on engineering ,
projections for the years in which the
bonds are to be outstanding, which !
tables shall reflect the ability of the ~
DISTRICT to meet annual principal ;
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and interest payments on the contem- ,
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. plated bond issue and maintenance and j
operating costs of the Program. ,
C. Application for Loan or Grant: In the event State ' .
and/or Federal funds are sought through loans . and/or grants, CONSULTANT agrees to assist in ,
preparation of the financial aspects of the required _ >
applications including the compilation of financial
and statistical data pertinent thereto. ;
D. Bond Elections and Assessment Proceedings: '
CONSULTANT will furnish complete factual data , concerning the Program, which the DISTRICT,
through its officials, citizens' committees, or
_ civic organizations, may reproduce, disseminate, '
and distribute to fully advise the electorate.on any •
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bond issue or issues andfor assessments pertaining
thereto. CONSULTANT shall be available for
,
attendance at meetings of such citizens' committees ;
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or civic: organizations. CONSULTANT will, .
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at the request of the DISTRICT, assist in
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preparing factual statements concerning .
the Program for release by District officials. •
E. Municipal Bond Market: CONSULTANT will ,
furnish DIST'RICT with complete information
concerning current municipal bond market
conditions and will advise the DISTRICT on •
the bond maturity schedules, funds, covenants, ~
and other features which will, in CONSULTANT'S opinion, make the proposed bonds most acceptable
to prospective purchasers and therefore mar.ket- •
able at the lowest possible interest rates. ~
F. Official Statement (Bond Brochure): CONSULTANT ;
will accumulate and compile into an Official State- , .
~
ment for the bond issue all. pertinent economic, ,
financial, and statistical data pertaining to said ~ bond issue, which Official Statement shall be '
satisfactor.y to the Board of Directors. Each. Official Statement shall include the Official
Notice of Sale, and shall accurately reflect
the economic and financial growth. of the '
DISTRICT. " - CqNSULTANT will then print and distribute said Official Statement.in conjunction with the '
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sale of the contemplated bond iasue. All costs of accumulating, compiling, printing {
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and distributing the Official Statement.shall
. be borne by CONSULTANT.
G. Revision of Official Statemerit: In the event the authorized bonds for the Program are sold
~
in more than one sale, CONSULTANT will ,
revise the original Official Statement to .
reflect changes in pertinent data which.may
have occurred subsequent to the original
, sale. All costs of revising, printing, and distributing such revised Official Statement , . • ~
shall be borne by CONSULTANT. . `
H. Distribution ot Official Statement: CONSULTANT
will distribute copies of each of said Official ~
Statements to a minimum of 100 municipal bond underwriters located in principal cities !
throughout the United States, and in addition • •
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will furnish the DISTRICT with a minimum of ~
25 such copies. .
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I. Financial Rating: CONSULTANT will use its '
best efforts to obtain for the DISTRICT a •
' financial rating on the bonds to be issued,,.by .
Mood'y's Investors Service and Standard &
Poo.r's, New York City. .
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J. Attendance at Bond Sales: CONSULTANT will attend all meetings of the Board of Directors at . which bi.ds for bonds are received, for the purpose '
of assisting in the computation and evaluation of '
such bids. ' K. Attendance at Meetings: CONSULTANT will attend
any meetings of the Board of Directors, when .
deemed necessary. . ' . •
. III
If more than one election is necessary to obtain approval of the: :
Program or in the event modifications and/or revisions of the methode and/or amounts of financing are required, this agreement shall remain in full force and effect and CONSULTANT will continue to perform all of the foregoing services. - . . ,
IV
Nothing contained herein shall be interpreted to imply that CONSULT- ,
ANT intends to, or. will, perform any services which would violate the
election laws of the State of California or any other, laws relating to aervices '
performed in conjunction with bond elections and/or assessment proceedings .
in this State. .
v .
The DISTRICT agrees to provide and pay for any and all engineering; :
-legal,; appraisal, property acquisition, or other technical or professional ~
services of any kind necessary to be incurred by the DISTRICT to further the ,
Program and the financing thereof, other than those items assumed by ~
CONSULTANT herein. ' . -6- ,
VI .
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The DISTRICT is under no obligation or compulaion to init'iate: the ~
financing of the Program. . '
. VII . The DISTRICT will pay CONSULTAN.T the following compensation for all services to be rendered by CONSULTANT hereunder: , A. One and three-quarters per cent (1 3/4%) of the par ,
value of the first-$500, 000 bonds sold. or asseasments
' levied by the DISTRICT;
B. One and one=quarter per cent (1 1/4°fo) of the par '
value.of the next $500, 000 bonds sold or assessments levied by the DISTRICT; . ' C. Three-quarters of one per cent (3/4 of 1%) of the par ' . :
, value of all bonds sold or assessments levied by the ~
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DISTRICT in excess of $1, 000, 000; .
D. Provided, however, that compensation specified in A, .
B, and C above shall not be less than the sum of Seven . Thousand F'ive Hundred Dollars ($7, 500. 00).
Said compensation shall be payable as follows; A. In the event bonds are sold to finance all or part of ,
the Program, then compensation based on the sale
of bonds shall be due and payable by the DISTRICT .
within thirty (30) days after the issuance, sale, and . '
" delivery of such bonds; ,
B. In the event assessments are levied to finance all or
part of the Program, compensation based on auch .
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as s e s s ments shall be due 'and payable within, one ,
hundred fifty, (150) days after the date on which . , such assessments are levied; C. In the event that bonds of any type are sold in more '
than one sale, then the minimum amount of Seven .
Thousand Five Hundred Dollars ($7,. 500. 00) shall . .
be due and payable by the DISTRICT within thirty
(30) days after' the issuance, sale, and delivery .
of the bonds of said first sale; provided, however, '
that if said minimum amount is in excess of the fee schedule contained herein, such excess amount .
shall be credited against subsequent compensation '
to be .pa,id. , : . The aforesaid compensation shall be due CONSULTANT only in the 'event the bond issue or issues are successfully voted at a bond 1
election held for that purpose and the bonds thereby authorized are sold, . ~
at either public or private sale or to State or Federal Agencies, or in the . . event assessments. are levied to finance all or a portion of the Program, or in tne. event the Program is financed by the municipal leas,eback method. '
The DISTRICT shall.at no time be liable for the reimbursement of ,
any out-of-pocket expenses or other expenses of any nature whatsopver
incurred by CONSULTANT, nor shall the DISTRICT be required to pay
'CONSULTANT for reasonable value of servicea rendered hereunder.. .
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VIII .
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The term of this agreement shall be for a period of three (3) years
from the date hereof. In tlie event, however, that financing authorized
durinb this three-year period for the Program has not been completed, theri
. the term of this agreement shall be extended until the date of such completion and for six (6) months thereafter. Completion of ,financing is defined as. the . -
issuance, sale, and delivery of bonds, or the, levying of assessments: '
IN WITNESS WHEREOF the par.ties have cau sed this agreement to '
be executed on the day and year firet above written by their officere there- ;
unto duly authorizecl. . • ,
J. B. HANAUER & CO. By .
William L. Fieldman
_ Executive Vice President SAN DIEGUITO IRRIGATION DLSTRICT
. By .
President, Board of Directors ATTESTED:
(SEAL)
Secretary, Board of I}irectors
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LAW OFFICES
/.H.JENNINGS
AUL D. ENGSTRAND,.,R. JENNINGS, ENGSTRAND 8 HENRIKSON
EO R. B. HENRIKSON .
AUL EUGENE OVERTON 8262 UNIVERSITYAVENUE TELEPHONE469-4191
OMN H. WHITNEY POST OFFICE BOX 308
AROLO E. LANDIS AREA CODE 714
/AILACE R. PECK LA MESA,CALIFORNIA 92043 ONALD W. RAYMOND .
February 3, 1966 John M. Cranston, Esq.
Gray, Cary, Ames & Frye
14th Floor Bank of America Bldg.
San Diego, California 92101
Re: San Dieguito Irrigation District
Antitrust Action Against Pipe Companies
Dear Mra Cranston:
Thank you for your letter of January 25, 1966, and the
summary of pipe purchases by San Dieguito Irrigation District
included therewith.
We have been agreeing to represent various members of the
San Diego County Water Authority on the same basis that we are
representing the Authority, to wit, at an hourly rate of $35.00
an hour plus $225.00 per day for each day in court and expensese
Fees for services that we render on behalf of all of
our cliazts will be pro rated among them. We believe that the
fairest way of doing this is to apportion these charges upon the
basis of the involvement of each agency as measured by its pur-
chases in relation to the purchases of others. Necessarily, this
means that the Water Authority will bear the great burden of these
fees and expenses. Having purchases in excess of $15,000,000.00
worth of pipe, the Water Authority's share will exceed eight-five
per cent of the total.
At the other end of the scale is San Dieguito Irrigation
District. Due to the comparatively small volume of purchases,
the portion of these joint costs and expenses that would have to
be shared by that district should not exceed one or two per cent.
Of course, any services rendered solely on behalf of San Dieguito,
such as preparation of complaints, examination of documents,
interviewing of personnel, preparation of answers to interrogatories,
etc., cannot be apportioned and would have to be borne solely by
the districto
Although it is difficult to speculate as to fees and
expenses in any litigation, it is unlikely that the district would
be required to expend more than $1,200.00 during the coming twelve
months, should an action be instituted at this time. We endeavor
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~John M. Cranston, Esq. . -2- February 3, 1966
to.bill monthly and thus a close check can be kept on the amount
being expended.
In your letter you raised a question regarding the
district's pipe purchases of 1963. Since the district was fully
reimbursed by the State of California for all of its expenditures,
it is very doubtful that these purchases could be made part of any
claim, since the district has suffered no damage by reason of the
actions of the defendants. This does not mean that we would waive
the point in our pleadings. However, it will ultimately be
necessary for us to take a position on this and similar situations,
and to be consistent we would have to admit that no damage has
been suffered. The problem is analagous to the one presented ,
where the district purchases through contractors. The question
arises as to whether the contractor or the district is the proper
party to sue. The defendants will argue that the contractors are the proper parties, and we will argue that the districts are the
proper parties since the price increases were passed on to the
district and it is the district that suffered the damage.
The potential claim of San Dieguito appears to be one
of the smaller claims that will be presented from the San Diego
County area. But inasmuch as these are being handled on a
consolidated basis, it would not appear to be unwise for it to
file at this time.
Please call me if you desire any further information
before your board meeting on February 8, 1966.
;
Very truly, urs,.
I+ I
~..--/G~`XC~-- V ~ r r
\
WALLACE Ro PECK
WRP/mj
'
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eT . B. HANAIIER 8L CO. J.B.HanauerSCo.Building
MUNICIPAL eoNOS 9300WiishireBaulevard
Beverly HiIIs,California 90212
MUNICIPAL FINANCIAL CONSULTANTS CR3-5900 • TRB•4300
February 9, 1966
~ Board of Directors
San Dieguito Irrigation District
59 East "D" Street
Encinitas, California
,
Gentlemen:
Thank you for employing our firm to handle the financing of the
contemplated improvements to the District's water system.
In accordance with statements made to you yesterday, we wish to
add the following, which should be inserted as a part of Section II:
"Districts Securities Commission: CONSULTANT will_be
available for conferences with the Districts Securities
Commission and will prepare whatever financial reports
are required for approval. of the bonds by that agency. "
Please consider the above paragraph as a supplement to the Agree-
~ ment which was executed yesterday.
Sincerely,
.-/r
William L. Fieldr~ n
Executive Vice President
WLF rh
cc John M. Cranston, Esq.
.B. : :
oo. ;
BEVERLY HILLS • SAN FRANCISCO • SACRAMENTO • FRESNO
lEncinitas Coast mispatch
Decreed A Legal Newspaper by the Superior f:our! of San Diego Couniy
"F" STREET AT SECOND PLATEAU 3-1114 ENCINITAS, CALIFORNIA
STATE OF CALIFORNIA, ss
COUNTY OF SAN DIEGO, '
I, ARCH I E J H ICKS, Jr., of the said county, being duly sworn, depose and say:
THAT I om ond at all times herein mentioned have been a citizen of the U-nited States, over the age of
twenty-one years, and that I am not a party to, nor interested in the above entitled matter;
THAT, I am Publisher of The Encinitos Coast Dispatch a newspaper of generol circulation, printed
and published weekly in the Town of Encinitas, County of Sqn Diego, State of Colifornia, ond which newspaper is
published for the dissemination of local news and intelligence of a generol character, and which newspaper at all
times herein mentioned had and still has a bona fide subscription list of paying subscribers, and which newsaoper
has been established, printed and published at regular intervals in the said Town of Encinitas, County of San
Diego, State of Colifornia, for a period exceeding one
yeor next preceding the date of publication of the
notice hereinafter referred to; and that the notice
of which the onnexed is a printed copy, has been
published in eaeh regular and entire issue of said
newspaper and not in any supplement thereof on the
following dates, to-wit:
, REGULAR -„Februar,y„3,,,,,,,,,,,,,,,,,,,, 19 ,66
MEETING DATES FOR THE '
• BOARD OF DIRECTORS
FoRTHE February 10, 66
CALENDAR YEAR 1966 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . .
BE IT RESOLVED tha[ the regular
, meeting of the Board of Directors of the
SAN bIEGUITO IRRIGATION DIS- ~ 19
~ TRICT for the Calendar Year 1966 shall i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
be held in [he District Office at 59 East
"D" Street, Encinitas, California at 9:00
A.M. on the second Tuesday of each
calendar month.
SAN DIEGUITO IRRIGATION • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . 19 • •
DISTRICT '
BY: STANLEY T. MILLS ~
~ Secretary
i
. CD Feb. 3, 10, 1966 ' 19
I certify under penalty of pery'ury that the foregoing is true and
correct. Executed at Encinitas, County of San Diego, State of Cali-
farniaonthe lOth aayotFebruary ,19_66
Pu sher
-~6~-