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HomeMy WebLinkAboutMinutes - North Fork Water Company - 10/17/1972NORTH FORK WATER COMPANY 1155 Del Rosa Avenue San Bernardino, California October 17, 1972 A special meeting of the Board of Directors of the North Fork Water Company was held on October 17, 1972 at 10:00 A.M. at 1155 Del Rosa Avenue, San Bernardino, California. Present: Directors Elizabeth M. Kiel, Harold G. Rickert, Stuart M. George, Arnold L. Wright, Henry E. Guerth and Paul R. Jennings. President Arnold L. Wright presided as Chairman. Guests in attendance were Horace Hinckley, John Poppett, David V. Garcia, Robert J. Farrell and Donald Andersen. Secretary Howard H. Hendricks had mailed the minutes of August 3, 1972 to all Directors. President Wright asked for approval of the minutes. The minutes were approved upon a motion of Mr. Rickert, seconded by Mr. Jennings. Mr. Robert J. Farrell, Attorney presented the letter from Denslow Green concerning the adverse opinion from Judge Moore. The opinion stated that the East San Bernardino County Water District, North Fork Water Company, Redlands Water Company and Lugonia Water Company could not answer in the case of Big Bear Municipal Water District vs. Bear Valley Mutual Water Company. Mr. Green and Mr. Farrell recommended that the North Fork Water Company appeal this decision and ask for a postponement of the trial until said appeal could be acted upon. It was noted that the East San Bernardino County Water District had already approved this action on their part. Mr. Paul Jennings,Jr. moved that Denslow Greea representing North Fork Water Company to proceed with an appeal, this motion seconded by Mr. Rickert and carried. The motion was to include that Attorney Denslow Green could go ahead with all necessary actions concerning the Law Suit. The motion was carried unanimously. Present Arnold L. Wright then stated that they would discuss North Fork Water Company and Bear Valley Mutual Water Company's expense ratios and other questions that may be required of Horace Hinckley and Don Andersen. Mr. Hinckley stated that some time ago the two Zanjero jobs of John Poppett and Stanley Poppett had consolidated into one. Both jobs were then handled by John Poppett who is the Zanjero for North Fork Water Company and Bear Valley Mutual Water Company. Mr. Hinckley stated that for the past 12 years the cost of John Poppett's salary and automobile expenses has been shared by the two companies on the basis of 69% for Bear Valley and 31% for North Fork Water Company. Mr. Hinckley stated that Bear Valley Mutual Water Company had less usage of the canal than North Fork Water Company but that certain credits were given North Fork Water Company for the pick up of unused City Creek Water by Bear Valley. Mr. Andersen said that Bear Valley Mutual Water 43 Company felt that 40 to 50% of the cost would be~reasonable figure for Bear Valley Mutual Water Company to assume. Mr. Rickert asked is Bear Valley Mutual Water Company renting wells to augment diminished flow that North Fork Water Company is entitled to get. Mr. Hinckley answered the question by stating that North Fork Water Company gets the entire 600 inches that ~ they are entitled to. Don Andersen questioned why Bear Valley Mutual Water Company was paying 50% of the Secretary's salary and a third of the President's salary. After some discussion over that matter there appeared to be more justification for the Secretary's salary to be divided over that of the President's salary. After considerable discussion concerning the costs and the distribution of water by North Fork Water Company and Bear Valley Mutual Water Company, Mr. Rickert motioned, duly seconded by Mr. Henry Guerth and carried unanimously to have the Secretary and Treasurer of each company come up with financial figures for the last two years of each company and present to the Board. In addition it was requested that the number of stockholders using water of Bear Valley Mutual Water Company and North Fork Water Company be also listed. From this information the Board hopes to reach a decision with Bear Va~ey as to what the proper share of each shall be for the Zanjero's salary and over cost. It was asked of those present where older records and maps of the system may be had. John Poppett stated he had five boxes of old records and he asked Mr. Rickert to send a truck over for them. Mr. Rickert said he would. Mr. Hinckley said the only map or drawings he has is a map of 1889 but he would get a print of North Fork canal, West of Palm Avenue. Mr. Hinckley said he had stationing" done in 1947 and 1972. As the Directors of North Form Water Company felt they had asked as many questions as they could think of at the moment from Mr. Andersen, Mr. Hinckley and Mr. Poppett, these gentlemen were excused from the meeting with the understanding that there would be further discussion at a later date. President Arnold L. Wright then brought up the problem of a deteriorating line in Weaver Street that connects Well #3 commonly referred to as the Cram Well with the ditch. Mr. Wright pointed out that the line had deteriorated to a point that it was no longer practical to use this line. He suggested that Well #3 be turned and connected with a newer 12 inch line that connected with Well 94. He also recommended that Well #4 be pulled and capped as it had not been used recently and has been vandalized over the last couple of years. With this action we would then abandon the line in Weaver Street. It was also pointed out that to use Well #4 would require sand pumping and also the electrical panel be re wired and to be put into order again. After considerable discussion Mr. Rickert moved, seconded by Mrs. Kiel that the President was to get costs ~ for either rejuvenating Plant 94 or turning and tieing in Plant ~3. He was also to check as to whether the obligation for sand pumping Well 94 was the responsibility of Bear Valley Mutual Water Company. The motion was carried unanimously. It was noted that Mr. O'Farrell of Patton State Hospital had resigned as a Director of North Fork Water Company. Secretary Mr. Hendricks read Mr. O'Farrell's letter of resignation to the Board, which was accepted. Upon a motion by Mr. Rickert, seconded by Mr. Guerth, it was moved that Mr. David V. Garcia a Civil Engineer be seated on the Board in the place of Mr. O'Farrell. Mr. Rickert stated that with the problems that North Fork Water Company is confronted with it would be very useful to have an Engineer on the Board and that Mr. Garcia an employee of the East San Bernardino County Water District he would be able to offer his services to the Company. The motion was carried unanimously after discussion on the matter. Mr. Garcia stated that he would work with President Wright on the matter of Well Plants Number 3 and 4. At this time Mr. Garcia took his seat as a member of the Board. President Wright reported to the Board concerning our Insurance liability as he was directed at the previous Board meeting. Mr. Wright stated that he called Bob Cox in Redlands who was the Broker for our Insurance and that Bob Cox stated that posting of the ditches is not necessarily required. The Company would only be required to take action on the matter if only the Insurance Company's Engineers stated the necessity for it. Mr. Wright also discussed our Insurance matter with Attorney Bierschbach. The concern of the Board in reference to their liability would only cause a problem if they did not act in a manner that would be considered reasonable and prudent. Attorney Bierschbach stated that it did not appear that the Board was acting contrary and therefore no personal liability should accrue. Attorney Bierschbach had said however that the present liability coverage of $100,000.00 per person and $300,000.00 aggregate did not appear adequate. It was his recommendation that we should carry at least $500.000.00 per person. After some discussion of Mr. Wright's report, upon a motion by Mr. Jennings, seconded by Mr. George and carried, it was moved that the President and Secretary review the Insurance with Bear Valley Mutual Water Company and North Fork Water Company's Attorney. It was pointed out during the discussion that Bear Valley Mutual Water Company were carrying insurance on the ditch nameing North Fork Water Company as a part of the policy and they have been charging North Fork Water Company 50.00 a year for this nameing. President Wright brought up the matter of a request of the San Bernardino County Flood Control to allow them to realign a portion of the 12 inch water line from Well #4. Mr. Wright asked Mr. Rickert to work with the Flood Control on this matter. Mr. Rickert stated that he had turned this over to Mr. Garcia and Mr. Garcia gave a report on the subject. Mr. Jennings commented on some of the problems of the well and the sand that has accumulated and therefore upon a motion by Mr. Rickert, seconded by Mr. George and carried unanimously Mr. Garcia was to work with the County Flood Control and consider the sand problem in the design. All of this work is to be done by the Flood Control in connection with relocating the line due to their approach. The subject of the North Fork Water Company's system was brought before the Board and upon a motion by Mr. Guerth, seconded by Mr. Rickert and carried unanimously, Mr. Garcia was directed to prepare maps of the system in conjunction with any members of the Board and information that may be obtained from Bear Valley Mutual Water Company. It was brought to the attention of the Board that Mr. John Poppett has be~n disabled recently due to ill health. Between now and next August when Mr. Poppett will retire, he will be undergoing surgery. Because of Mr. Poppett's long and faithfull service, Bear Valley Mutual Water Company have stated that they are going to continue paying a portion of Mr. Poppett's salary in order that the combination of their payment and his disability payments will keep Mr. Poppett's income at the same level as it has been. After some discussion, upon a motion by Mr. Rickert, seconded by Mr. Jennings and carried unanimously, North Fork Water Company would also carry Mr. Poppett on the same basis through August, 1973. It is hoped that Mr. Poppett will be able to come back to work prior to his retirement and comments from his Doctors indicate this is possible. Due to the disability of Mr. John Poppett it was stated by Bear Valley Mutual Water Company that they were temporarily hiring Frank Stafford as the replacement Zanjero in the absence of Mr. John Poppett. Because of this and the future retirement of Mr. Poppett and the request for a change in apportionment of costs between Bear Valley Mutual Water Company and North Fork Water Company, President Wright appointed a committee of Mrs. Kiel, Mr. Jennings and Mr. Guerth to work with Secretary Hendricks on this matter along with the figures that the Board had earlier directed. Secretary Hendricks presented the proposed assessment and budget for the ensueing six month period commencing October 1, 1972. After considerable discussion concerning the expenses of Attorney Green and the forthcoming expenses for the line repairs at Well #3, upon a motion by Mr. Guerth, seconded by Mr. Rickert and carried unanimously, assessment #126 was set at $1.50 per share with the usual dates of delinquency and sale be used. As there was no further business, upon a motion by Mr. Garcia, seconded by Mr. George, the meeting was adjourned at 1:45 P.M. with a tentative meeting set for November 20, 1972 at 9:00 A.M. Howard H. Hendri'c~s, Se~cretary