WEDNESDAY, AUGUST 19, 2009
A. CALL TO ORDER/ROLL CALL
President Boucke called the Regular meeting of the Board of Directors of the Stinson Beach
County Water District to order on Wednesday, August 19, 2009 at 5:00 p.m., at the District
Office located at 3785 Shoreline Highway in Stinson Beach, California.
Barbara Boucke, President
Lawrence Baskin, Vice President
Elizabeth Sapanai, Director
Scott Tye, Director
Jim Zell, Director
General Manager present:
Denise Badstubner, Administrative Assistant
B. PUBLIC EXPRESSION
Chris Harrington expressed his concerns regarding the Board meeting being held on
Wednesday evening instead of Saturday mornings.
C. SETTING OF AGENDA
Director Sapanai made a motion to approve the agenda but move forward to Item G-1, Public
Hearing, and then move on with the rest of the Agenda. Director Tye seconded the motion.
The motion was approved by unanimous vote.
D. APPROVAL OF MINUTES
Director Baskin moved to approve the minutes of Saturday, July 18, 2009 with the following
modification, pg.3, line 17 "the Phylochip Project is beginning again", and delete the word
"again". Director Tye seconded the motion. The motion was approved by unanimous vote.
E. APPROVAL OF DISBURSEMENTS
Director Baskin moved to approve the disbursements for July 15, July 28, and August 11,
2009. Director Sapanai seconded the motion. The motion was approved by unanimous vote.
F. QUARTERLY FINANCE REPORT
President Boucke stated that the District had a net gain prior to depreciation of $355,452.00.
Depreciation was $160,000, the net gain was $195,041 of which 50% goes into the Reserve
for the Water Treatment Plant, and 25% goes to Emergency Reserve and 25% into the
Operating Reserve. Director Baskin stated that what is not reported in the quarterly financial
report is the loss of property tax revenue of approximately $46,000 that was borrowed by the
Governor, and is supposed to be paid back in 2013. President Boucke requested that Janice
Payne, the District Bookkeeper provide the Board with a long range projection of the financials.
Director Baskin requested that the $46,000 loss be published. President Boucke requested
that the Capital Improvement Project Budget be included in the publication.
Director Baskin stated that revenues were up at the end of the Fiscal Year, but expenses were
3% over budget.
G. PUBLIC HEARING
Consideration of Appeal of Revocation of Discharge Permit by Tim Peterson, 12
Marine Way. Continued from the Saturday, June 20, 2009 Board Meeting.
The General Manager reviewed the latest version of the Declaration of Restrictions and
Wastewater Discharge Permit Reinstatement Agreement. The Agreement incorporates all of
the provisions requested by Board members, including: 1) a limitation on the amount of water
that can be used, 200 gallons per day; 2) a limitation on the use of the converted garage; 3) a
waiver of rights in the event of default by owner; 4) a payment of a monitoring fee and other
costs; and 5) a provision that the Agreement will be recorded and binds future owners until the
septic system is upgraded.
Director Zell had questions regarding the agreement starting with Item 4) Water Use Limitation;
gallons per day, reported leaks, explanation of "verifiable leak". Item 16) Dispute Resolution;
which describes mediation. Riley Hurd explained the process of Alternative Dispute
Resolution to the Board, stating, as an escalating process, this means first try to, " work it out",
and then seek Alternative Dispute Resolution before attorneys are involved. Director Zell
stated, that his main concern was that any problem arising would create a long and drawn out
process to settle any violation. Director Zell stated that he was concerned that any dispute be
resolved quickly, instead of a lengthy mediation process. Mr. Hurd pointed to Section 8)
Default; and stated, that this was a serious point in the agreement in favor of the District, and
that it would be rare that any violation would make it to Item 16, Dispute Resolution. Director
Zell asked questions regarding occupancy of the second unit. Mr. Hurd responded that the
limitation on water use takes away the concern of the second unit. Director Zell stated that the
District still has no knowledge of the location of the waste water system on this property.
President Boucke stated that if the agreement were to be approved by the Board, the Board is
serious with regard to violations. If there is a violation then a new septic system will be
necessary with no further discussion. Director Zell stated, that the District is deviating from
District Policy regarding adding space and not upgrading the septic system.
Director Tye had concerns regarding Item 5) Converted Garage Use Limitation; he felt this
provision was not enforceable. He stated this is a non verifiable enforced agreement; and that
the District does not have the power or authority to enforce this limitation. Director Tye stated,
that he felt that the District's business is waste water system enforcement and monitoring and
not enforcement of habitations.
Director Sapanai stated that the real issue is additional living space, and that the additional
living space should have triggered the District Code requirement of updating the septic system
at this property and it did not. Director Sapanai stated that this system is old, is not
engineered, the District has no records regarding system engineering, location of the leach
field, or if in fact if it is just a seepage pit. She stated one main concern is that the property sits
on the bank of the creek. Director Sapanai referred to a picture of the converted garage during
construction and it clearly showed new construction of additional space. Director Sapanai
stated that she had been supportive of fellow Board members who have wanted to try and
come to some sort of compromise. Director Sapanai stated that she voted to allow the
preparation of an agreement in the hopes that the appellant could convince her that this was
an appropriate position to take. Director Sapanai stated that there are two fundamental
problems with the agreement. First, it does not solve the need to upgrade a septic system or
even to find out what components that septic system contains, or to determine whether or not it
functions appropriately. Secondly, Director Sapanai stated, that the agreement does nothing
for the District. It allows the status quo that was created when the owner remodeled the
interior from 3 bedrooms to 4, built additional living space and new construction. Director
Sapanai was very concerned regarding enforcement. Director Sapanai stated that the
agreement requires good faith compliance on the part of the appellant. Director Sapanai
stated that she has concern with the reliability of the appellant's good faith. She stated that
there was misuse of the permitting process, the permitless grading of the property next door on
the creek, and the 200 gallon limitation. Director Sapanai stated that the 200 gallon limitation
has been exceeded in May, June and July. Director Sapanai stated, that her main concern is
health and safety and protecting and improving ground and surface water quality within
Director Baskin stated that the evolution of the agreement arises from a dispute on how the
Board can define habitable space. Director Baskin did not agree that the 200 gallon limitation
had too many loop holes. Director Baskin discussed water limitation, garage conversion
limitation, Alternative Dispute Resolution (ADR) and the triggering event. Director Baskin
stated that the agreement was a reasonable compromise, and an enforceable mechanism.
President Boucke stated that if the agreement is signed, Item 4) Water Use Limitation will be a
triggering event to instigate a new septic system.
President Boucke introduced Riley Hurd, legal counsel for Mr. Peterson. Mr. Hurd stated that
for the record he would review the history and enforcement of this matter. Mr. Hurd stated,
that Mr. Peterson submitted the plans for the building to the District to be reviewed. He was
charged for the review and during the review process Mr. Peterson was never told this was
new construction. Mr. Hurd argued for the appellant that the District process "is broken", the
District does not require a high level of detailed plans to conclude if the District determination
of new construction is met or not. Mr. Hurd stated Mr. Peterson would not have built the
converted garage if he knew that the District would consider this new construction. Mr. Hurd
then spoke to enforcement of the agreement. Mr. Hurd stated that in fact you could not
enforce the renters. However, the contract is enforceable because it is deed restricted, and if it
doesn't happen the owners have broken the law. Mr. Hurd stated, this is not about the second
unit, this is about water quality. Mr. Hurd stated that the process that has led us to this place
has violated the law. The manner, in which this matter was processed and after the fact
deemed new construction, was not fair. Mr. Hurd stated that for four months the agreement
has been worked on, Mr. Peterson and the attorneys involved have given the District
everything they have asked for in this agreement. Mr. Hurd stated that it would be very
disingenuous at the end of the process to not enter into the agreement. Mr. Hurd urged the
Board to enter into the agreement for the sake of the District, and because it does further the
District's single goal, protecting water quality.
Mr. Miyaki stated, the real issue is new construction and how the Board deals with that, in
addition the occupancy of the second unit is enforceable. Mr. Miyaki addressed the Board's
concerns with regard to Section 16 & Section 4 and recommended some changes. Mr. Miyaki
stated that he felt it would not be disingenuous if the Board decided not to enter into this
The Board reviewed changes in language to the agreement in Sections 3) Wastewater
Discharge Permit and Appeal, Section 4) Water Use Limitation, Section 5) Converted Garage
Use Limitation and Section 16) Dispute Resolution.
Director Zell had concerns regarding Item 5) Converted Garage Use Limitation. Director Tye
was concerned that the Discharge Permit reflects the gallons allowed by this agreement.
Mr. Miyaki discussed Director Tye's recommendation and suggested to the Board where the
language should be inserted within the agreement.
Director Baskin made the motion to enter into the agreement presented with the modifications
discussed. President Boucke seconded the motion. President Boucke called for the vote by
roll call of the Board. Baskin - yes, Boucke - yes, Sapanai - no, Tye - no, Zell - no. The
motion failed 3-2.
Mr. Miyaki addressed the Board and recommended the Board deny the appeal and instruct
staff to proceed with issuing the Failed System Citation.
Director Zell made the motion to deny the appeal and direct staff to issue the Failed System
Citation. Director Tye seconded the motion. President Boucke called for the vote by roll call of
the Board. Baskin -no, Boucke -no, Sapanai -yes, Tye-yes, Zell-yes. The motion passed to
deny the appeal 3-2.
H. GENERAL BUSINESS
Discussion and possible direction to staff re: a cost proposal from MASSA
Construction Company for additional work at the District's Water Treatment Plant.
The Board, by consensus, accepted the cost proposal from MASSA Construction for additional
work at the District's Water Treatment Plant.
Discussion and possible modifications to the District Operations Budget as
recommended by the District Finance Committee.
The General Manager discussed a meeting of the District's Finance Committee on July 16,
2009. The Committee recommended reallocating some funds differently from the existing
70/30 Water/Wastewater split. These changes will not affect any revenue or expense totals.
As a formality, it was decided to bring the changes to the Board for approval. Costs applied to
Denise and the Manager were changed to a 50/50 split, as has legal. The accounts affected
are highlighted and are as follows; Salaries & Wages, Employee Health Insurance Employee
Health Co-pay, Employee Dental Insurance, Employee Life Insurance, PERS Retirement,
Medicare, General Manager Contract, Workers' Comp Insurance, Legal Counsel.
The Board by consensus approved the new allocations.
Presentation and discussion of the District's application for a Coastal Development
Permit and Notice of Intent to Adopt a Mitigated Negative Declaration for the drilling of
a well at the District's Steep Ravine Tank site.
The General Manager explained the next step in the process of the application for a Coastal
Development Permit (CDP) from the County. He reviewed the documents prepared for review
by the County. The General Manager reviewed the letter to Ben Berto, the CDP Application
Cover Page, the CDP Checklist, Environmental Review Questionnaire, Application and Project
Description, Site Plan, Title Report, Biological Site Assessment, Notice of Intent to Adopt a
Mitigated Negative Declaration. The notice has been posted around town and at the plant for
the required 20 days.
Discussion and possible approval of a Records Retention Policy for the District.
The General Manager explained that the attached policy will authorize him to have many
stored files sorted and destroyed. He further explained that an additional container for storing
records has been ordered. The stored boxes of records will be sorted and either destroyed or
stored (as designated by the retention period) in the new container. Files in the District main
office will be color coded to designate records by the appropriate retention period.
Director Baskin moved to approve the attached Records Retention Policy as recommended by
District's legal Counsel. Director Sapanai seconded the motion. The motion was approved by
Discussion and possible direction to staff re: a plumbing fixture/rebate program
survey of local Water and Utility Districts.
The General Manager reviewed the data provided to the Board.
I. MANAGER'S REPORT
The General Manager updated the Board on the Water Rate Study. He stated the 2 week
newspaper publication is complete. The date of the Water Rate Public Hearing is September
19, 2009 at the District Office.
The General Manager recommended that the Village Parks have MDU's installed by the
District. The Board authored the General Manager to install 4 MDU units. Lance Meade will
pay the $200 for the cost of the 4 units. The District will pick up the cost for the installation.
The General Manager informed the Board that the well at 321 Seadrift Rd. has not been
abandoned to County standards. They have 30 days to comply.
The General Manager explained to the Board that the Districts Water Service Application has
been modified to limit the liability to the District if supplies are insufficient to meet demand, the
following sentence was added: " In the event that the District is unable to provide satisfactory
water service by reason of insufficient or high pressure, inadequate volume of water or
intermittent supply, the District shall not be liable to any customer for any damage or
inconvenience that may occur as a result thereof."
The General Manager reviewed the progress of the Water Treatment Plant retaining wall. The
retaining wall is complete, the next steps are to seal the backside, add drainage and the
J. COMMITTEE REPORTS
President Boucke called for a motion to adjourn the meeting. Director Baskin made the motion
to adjourn the meeting. Director Zell seconded the motion. The motion was approved by
unanimous vote. The meeting was adjourned at 7:10 p.m. The next meeting will be held on
Saturday, September 19, at 9:30 a.m.