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HomeMy WebLinkAbout1967 01-31 CC ADJ MIN141 MINUTES OF THE ADJOURNED MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA January 31, 1967 The adjourned meeting of the City Council of the City of National City was called to order at 6:45 p.m. by Mayor Morgan. Council members present: Colburn, Harris, Hogue, Reid, Morgan. Council members absent: None. ADMINISTRATIVE OFFICIALS PRESENT: Linn, McLean, Minogue, Associate Civil Engineer Newberry, Osburn. SOUTH BAY IRRIGATION DISTRICT OFFICIALS PRESENT: Directors: Henry Algert, C. A. Butler, S. C. Mathews, Walter L. Steele, Lloyd L. Lee, President; Sec'y.-Mgr.: W. Carey; Attorneys: Paul D. Engstrand, Jr., John H. Whitney ALSO PRESENT: National City Port Commissioner Lorenz H. Ruehle; from Chula Vista, Councilmen: Eleanor Anderson, Cecil Sparling and Jack Sylvester; President W. J. Hays, Division Manager Al Poulter, California -American Water Co.; CoC Manager Niek Slijk; Lowell Blankfort, Publisher Star -News. The meeting was opened with salute to the Flag led by City Manager Osburn. PORT COMMISSIONER LORENZ H. RUEHLE reported the Port Commission adopted a resolution at their meeting January 31st authorizing and directing the Port Director to call for bids for the first phase of the 24th Street Marine Terminal, estimated cost $4,000,000.00; the bids should be opened in March, construction beginning in April with an approximate 420 day completion schedule. PORT COMMISSIONER RUEHLE reported the Council appointed Bill Dailey, Traffic Manager, Port of San Diego, to represent National City in addition to other agencies at Denver, Colorado, before the Rocky Mountain Tariff Bureau in regard to freight rates; the rates were on the Agenda for a meeting in San Diego last week. Mr. Ruehle read a telegram stating National City freight rates would be lowered, effective April 29, 1967. Mr. Ruehle said there would be a 9% reduction on National City freight which would put National City on an equal basis with San Diego. The City Clerk read Mayor Morgans proposed Agenda, listing pertinent to acquisition of the water company. The South Bay Irrigation District Board was called to order Lee. three items by President Mayor Morgan asked if the SBID Board discussed the possibility of a Joint Powers Agreement and if they would agree to one. President Lee said he could not say they have agreed; the conditions would have some bearing on what they would agree to; some of the SBID Board would rather see one entity; they were willing to discuss it. Councilman Hogue suggested they discuss each item on the Mayor's agenda and come to some kind of agreement. The Mayor asked if the Council agreed the items presented were those they wanted to discuss and asked if they wanted to buy the water company under a Joint Powers Agreement. Councilman Harris asked if in Item No. 1 ("Shall the City of National City and the South. Bay; Irrigation District acquire the California -American Water Company by condemnation?") they would want to include "or negotiation" and vote on it. Moved by Hogue, seconded by Harris, the City of National City...go on record as attemptinta to purchase the 1/31/67 142 California -American Water Company either through condemnation or negotiation. President Lee said generally speaking, this is the feeling of their Board. Paul D. Engstrand, Jr., Attorney, SBID, said the respective Boards were trying to proceed in an orderly manner to reach agreement in principle and the motion under consideration was more in the nature of leading up to the point where agreement in general principle that would be legally binding on any one of them could be found. City Attorney McLean said the purpose of the meeting and the motion was to see whether or not there was a consensus of opinion by the City Council of National City and the Directors of the South Bay Irrigation District as to the principles involved and their relationship to each other in the acquisition of the public water system; any authority to proceed to acquire would be by the formal action of each board at the appropriate time; the motion was the Council?s expression of its intent to agree with the South Bay Irrigation District upon the principle of acquiring for public use a water system now owned by the California - American Water Company. Carried by unanimous vote. Councilman Hogue said there should be response from the South Bay Irrigation District before proceeding; otherwise, it would be a futile motion. President Lee said they would discuss it and then take whatever action the Board desired. Moved and seconded, the South Bay Irrigation District go on record as attempting to purchase the California -American Water Company either through condemnation or negotiation. Carried by unanimous vote of the SBID directors present. COUNCILMAN HARRIS said Item No. 2 ("Shall the City of National City and the South Bay Irrigation District accomplish the acquisition through Joint Powers Agreement substantially identical to the proposed Joint Powers Agreement of 1959") was what they had in mind. Moved by Harris, seconded by Hogue, Item No. 2 be accepted. Carried by unanimous vote. SBID Vice President Butler said Item No. 2 contained the word, "identical;" there might be changes; it should be brought up to date. SBID Attorney Engstrand suggested after the word, "substantially," the word, "identical," be eliminated, "similar in principle," be substituted. City Attorney McLean said the purpose of the motion was to indicate to the District Board the Council advocated acquisition by Joint Powers Agreement, the principles of which had been outlined; if the Council wanted to vote again they could do so. Councilman Hogue said it could be turned over to the staff of the City Council and of the Irrigation District Board for revision of the Joint Powers Agreement and brought back to them. President Lee said in agreeing to the 1959 Agreement in principle, it would have to be updated; the employ- ment of Leeds, Hill & Jewett to accomplish this and the employment of financial advisers should be considered; these were the people who would accomplish the upgrading of the final agreement; it would be to their ad- vantage to employ people who were familiar with it and have worked on it from the beginning. Mayor Morgan said the staff and legal advisers of National City and the South Bay Irrigation District could work out the details and asked if they agreed to buying the water company under a. Joint Powers Agreement. Moved and seconded, the South Bay Irrigation District and the City of National City accomylish the acquisition of the water company through a Joint Powers Agreement similar to the proposed Joint Powers Agreement of 1959. Carried by unanimous vote of the SBID directors present. Moved by Harris, seconded by Hogue, the motion the Council just voted on be changedL substituting the word "similar" for the word "identical." making the Councils motion identical to the South Bay'rrigation District Board's motion. Carried by unanimous vote. Moved by Harris, seconded by Hogue, Item 2-a ("If yes, then the matter of the Joint Powers Agreement should be referred to the legal staff of each agency for finalization.") be referred to the legal staff of each agency for finalization. Carried by unanimous vote. SBID Director Steele said in the previous Joint Powers Agreement there was the intention of a bond elec- tion before condemnation; he questioned whether the condemnation should come before the bond election or after the bond election. Mayor Morgan said that should be included in the recommendations of the attorneys and staff for 1/31/67 143 approval by the SBID Board and the City Council, SBID Director Mathews suggested they first agree they would buy the water company and how, complete the Mayor's Agenda, and discuss the other later. Mayor Morgan said he would agree to that if there was no objection by the Council. Moved and seconded, it be turned over to the legal staff and whatever staff they wished to set up for finalization and bring back recommendations to the Board. Carried by unanimous vote of the SBID directors present. Councilman Hogue said in regard to Item No. 3 ("Does each agency agree to pay its proportionate share of the cost of updating the engineering study made by Leeds, Hill & Jewett.") the previous Council voted to have this done, but the new Council should vote also. Mayor Morgan said the study voted at that time included Otay; now they were talking about the South Bay Irrigation District and the City of National City only. Moved by Harris, seconded by Hogue, the City agree to pay its proportionate share of the cost of updating the engineering study. SBID Attorney Engstrand said he did not know what they meant by proportionate share; the cost of the last study was shared 70% - 30%; if they could agree in advance on how the cost was to be shared it would be advisable. Mr. Engstrand continued, if, for example, the action was authorization to contact O'Melveny & Myers, letters could be obtained from them outlining the basis on which they would be willing to pursue the employment; then recommendations could be made. Councilman Hogue suggested the motion be amended to include the staff of the City be authorized to negotiate the employment of Leeds, Hill & Jewett (to update the engineering study) and OtMelveny & Myers, Attorneys (to update the Joint Powers Agreement and give other advice relating to the acquisition of the water company). Moved by Harris, seconded by Hogue, the motion be amended to include the staff's authorization to negotiate the employment of Leeds, Hill & Jewett and O'Melveny & Myers. SBID Vice President Butler asked if the City Council would accept Leeds, Hill & Jewett's and O'Melveny & Myers' decision on proportionate shares. City Attorney McLean said they would make recommendations to their respective employers when the time comes. Carried by unanimous vote. Moved and seconded, Item 3 be approved and the staff authorized to negotiate the employment of Leeds, Hill & Jewett and O'Melveny & Myers. Carried by unanimous vote of the SBID directors present. MAYOR MORGAN said as a result of the recent sale of the water company the approximate cost of the acquisition was known; he favored trying to buy the water company without spending money (before they knew whether or not the people wanted to buy the water company); it would cost thousands of dollars to have a study made; then the people could vote "no." SBID President Lee said he favored condemnation first so the voters could be given the exact cost. Mayor Morgan said he would like to know more or less what the cost would be and it would be determined in part on the recommendations of the staffs and attorneys. SBID Attorney Engstrand said when the reports of Leeds, Hill & Jewett and O'Melveny & Myers were received, it would be necessary the two bodies were in agreement on which route to take; it would require evaluation; once that is decided it would be comparatively simple to put that in the agreement. W. J. HAYS, PRESIDENT, CALI'ORNIA-AMERICAN WATER COMPANY, was present and said it appeared to him that the Council and SBID had definitely made up their minds they wanted to proceed "willy-nilly" with the acquisition of his company's property; his company endeavored to tell them the property was not for sale; the American Water Works Corporation purchased (Council- man Hogue left the Council Chamber) the California Water & Telephone Company with the purpose of operating the company and the American Water Works Corporation would provide the community with the highest level of service.. Mr. Hays said he couldn't understand how a group of people such as the Council and SBID could say they were going to buy the company.; he suggested all of the factors be examined; he did not believe they were all being reported to the public. (Councilman Hogue returned.) 1/31/67 144 SBID Director Mathews said he resented Mr. Hay's statement they were proceeding "willy-nilly;" they were not; they were spending a lot of time on this business and believed they knew what they were doing. The Mayor said he could see nothing wrong in getting together and buying the water company; most water is owned by the people, even water that comes in from Colorado and northern California, and it is hard to see how you can have the water brought to your community and turn it over to someone to make a profit on by selling it back to the people who owned the water to start with. Councilman Hogue said 75% of the water companies were publicly owned; he was informed they could buy the water company, save the citizens 11% and pay the cost of the purchase of the company from water sales. Mrs. Florence Uzumecki, 524 I Avenue, was present and said this proposition was on the ballot twice and was voted down; if it was on the ballot again it would be defeated. CITY CLERK MINOGUE read the Mayor*s proposed Proclamation of "ELK'S CEREBRAL PALSY WEEK" (February 5 - February 11, 1967). Moved by Harris, seconded by Colburn, the Proclamation be approved. Carried by unanimous vote. CITY MANAGER OSBURN reported receipt of a request from City Engineer Foster for the extension of Leave Without Pay for Edward C. Latham for three months and recommended approval. Moved by Reid, seconded by Hogue, the request be approved, Carried by unanimous vote. (Councilman Harris left the meeting.) CITY MANAGER OSBURN reported the Real Estate Committee met January 26th to consider two items: Continana Convalescent Center (report should be ready next week) and an offer from the Humble Oil & Refining Company to purchase property on the corner of Coolidge and 24th Street, 200* fronting on each street for $55,000.00; a deposit of $25.00 to be made to hold the property until May 9th, at which time the option could be extended to June 6th by depositing another $11000.00 and, if the option was not picked up, the money would be forfeited. The City Manager said the Real Estate Committee recommended the offer be accepted with the understanding that if the option was not picked up by June 6th the $1,000.00 would be forfeited and stated he concurred. Moved by Colburn, seconded by Hogue, the recommendation be approved. Carried by unanimous vote. Absent: Harris. CITY ATTORNEY McLean stated there were two matters pertainingto litigation to be discussed in an Executive Session. Moved by Colburn, seconded by Hogue, the meeting be adjourned to Executive Session. Carried by unanimous vote. Absent: Harris. The meeting adjourned at 7:35 P.M. The meeting was called back to order at 7:45 P.M. by Mayor Morgan. Council members present: Colburn, Hogue, Reid, Morgan. Council members absent: Harris. CITY ATTORNEY MoLEAN presented two resolutions. Moved by Colburn, seconded by Hogue, the reading of both resolutions be waived and they be adopted by reading of the titles only. Carried by unanimous vote. Absent: Harris. RESOLUTION NO. 9292, "RESOLUTION DIRECTING THE ABATEMENT OF A PUBLIC NUISANCE ( 2240 Cleveland Avenue)." Moved by Colburn, seconded by Reid, the Resolution be adopted. Carried by unanimous vote. Absent: Harris. RESOLUTION NO. 9293, "A RESOLUTION DETERMINING AND DECLARING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY OF THE CITY OF NATIONAL CITY REQUIRE THE CONSTRUCTION, OPERATION AND MAINTENANCE OF PUBLIC STREET ACROSS CERTAIN DESCRIBED LAND IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA: AND THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY DEMAND THE ACQUISITION OF FEE TITLE TO SAID PROPERTY TO BE USED BY SAID CITY FOR 1/31/67 145 SAID PURPOSE: AND DECLARING THE INTENTION OF THE CITY OF NATIONAL CITY TO ACQUIRE SAID PROPERTY UNDER EMINENT DOMAIN PROCEEDINGS: AND DIRECTING THE CITY ATTORNEY OF THE CITY OF NATIONAL CITY TO COMMENCE AN ACTION IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN DIEGO FOR THE PURPOSE OF ACQUIRING SAID PROPERTY (Kelco Company)." Moved by Colburn, seconded by Reid, the Resolution be adopted. Carried by unanimous vote. Absent: Harris. City Attorney McLean said he needed authorization to deposit an approximate amount of $4500.00 to commence suit and requested the Clerkbe directed to draw a check for that amount. Moved by Hogue, seconded by Colburn, the City Attorney's request be granted. Carried, by the following vote, to -wit: Ayes: Colburn, Hogue, Reid, Morgan. Nays: None. Absent: Harks. Moved by Hogue, seconded by Reid, themeetinQ be closed. Carried by unanimous vote. Absent: Harris, Tiie meeting closed at 7:55 P.M. ATTEST: MAY , CITY IONAL CITY, CALIFORNIA 1/31/67