BOARD MEETING MINUTES

REGULAR MEETING
SATURDAY, MAY 21, 2016

A.    CALL TO ORDER/ROLL CALL

President Cross called the Regular meeting of the Board of Directors of the Stinson Beach County Water District to order on Saturday, May 21, 2016, at 9:30 a.m., at the Stinson Beach County Water District office, located at 3785 Shoreline Highway, Stinson Beach, CA 94970.

Directors present:
Sandra Cross, President
Morey Nelsen, Vice President
Lawrence Baskin, Director
Barbara Boucke, Director
Jim Zell, Director

General Manager present:
Ed Schmidt

Staff present:
Helma Schwendig - Office Supervisor

B.    PUBLIC EXPRESSION

None.

C.    SETTING OF AGENDA

The agenda was unanimously adopted as set.

D.    PUBLIC HEARING

1. Review of Appeal of Revocation of Discharge Permit (Permit to Operate) of Charles Higgins and Leela Gill, Owners, 11 Calle del Pinos, Account No. 0020.
   On March 23, 2016, the Discharge Permit for this property was revoked. The specific violation was a failed septic tank - wooden top rotted, bottom half of tank inundated with dirt. Mr. Higgins sent a letter dated April 7, 2016 to the Board, appealing the Notice of Revocation of Discharge Permit.
   
   The failed septic system had been discussed at the April 20 and May 18, 2016 Wastewater Committee meetings. It was determined that the system could not be repaired, and a new system must be installed. On May 9, 2016, Noadiah Eckman, of Eckman Environmental, and District Engineer Rich Souza performed a Site Review Verification consisting of the soil profile investigation.
   
   Mr. Higgins was not present at this appeal hearing, but was represented by Ms. Eckman. Director Zell motioned to deny Mr. Higgins' appeal to Revoke his Discharge Permit. Director Baskin seconded the motion. The motion was passed unanimously by President Cross, Vice President Nelsen and Directors Baskin, Boucke and Zell.
2. Discussion and possible direction to staff re: a Variance Request for replacement of a septic system at 11 Alameda Patio, Marian Zailan et al, Owners, Account No. 1100.
   The variance application is in response to a septic system that failed a routine inspection in May 2015. Surfacing effluent was noted in the leach field area and could not be corrected by maintenance repair work. The property is approximately 4,800 square feet and has a small house of about 468 square feet. The project had been most recently discussed at the April 20, 2016 Wastewater Committee meeting. There is no change in the wastewater daily flow rate (maximum of 150 gallons and average 100 gallons), and there is no change in habitable space. Groundwater readings during the wet-weather season revealed high groundwater 53 inches below existing grade.
   
   The design incorporates a new 1,500 gallon septic tank with an aerobic treatment unit, 500 gallon sump tank, and dual raised-bed dispersal fields. The aerobic pretreatment unit is an alternative system component which requires a variance per Section 4.19.020 of the District's Title IV Onsite Wastewater Management Code. A variance is also required to Section 4.15.100 to reduce a 5 foot property line setback to the proposed septic and sump tank.
   
   Director Baskin moved to adopt draft Resolution No. WW 2016-02, Granting a Variance to the Requirements of the Stinson Beach County Water District Wastewater Treatment Regulations Ordinance No. 2014-04 to Reduce Setback Requirements and to Utilize an Alternative Type Wastewater System. Director Boucke seconded the motion. The motion was passed unanimously by President Cross, Vice President Nelsen, and Directors Baskin, Boucke, and Zell.
3. Review of the Draft Operations and Maintenance Budget and Capital Improvement Program Budget for Fiscal Year 2016/2017 and continue the Public Hearing until the next Board meeting on Saturday, June 18, 2016.
   The budget for fiscal year 2016/2017 had been previously reviewed several times by the Finance and Personnel Committees. Water revenue has been increased from $230,000 to $250,000 to more accurately reflect a small increase in sales. Water connection fees increased from one to two new connections. Backflow testing fees have been reduced from $18,000 to $15,000 as more customers use private contractors. The prior JPIA insurance rebate of $7,000 has been removed, as the rebate will be replaced by lower rates. Property tax apportionment revenue has been increased from $675,000 to $715,000. Salaries and Wages for seven employees have been increased by $15,000 as recommended by the Finance Committee, Personnel Committee and General Manager. Health insurance has been increased from $131,000 to $146,000 due to increasing benefits for the two newer employees and budgeting too low last year. Other Post Employment Benefits (OPEB) have been increased from $17,200 to $36,000 based on audit recommendation of Nicolay Consulting Group. Tech Support services are down $10,000 to reflect lower software tech support for the District's prior billing system.
   
   After depreciation, the budget shows an excess of $24,213. The budget hearing will be continued to the June Board meeting for further discussion and approval. [The June Board meeting was subsequently moved to June 25, 2016.]
4. Discussion and possible direction to staff re: a Draft Resolution Establishing an Employee Benefit Program for the Fiscal Year 2016-2017 and continue the Public Hearing until the next Board meeting on Saturday, June 18, 2016.
   After an extensive survey of other water agencies, the Finance and Personnel Committees recommended that the District's medical benefits be modified, so that for employees hired after July 1, 2011, the District will pay 100% of the employees' medical costs and 80% of dependents' costs. This policy is to become effective on July 1, 2016.
   
   The resolution will be reviewed again for final approval at the June Board meeting. [subsequently moved to June 25, 2016]

E.    GENERAL BUSINESS

1. Discussion and possible approval of a policy for distribution of Proposition 84 Grant Reimbursement Money.
   The Finance Committee has recommended that $100,000 of the Proposition 84 Grant money be deposited into the District's Local Agency Investment Fund (LAIF) account as an addition to the designated Operations Emergency Fund Reserve. Subsequent grant reimbursement would be available for the District's Capital Improvement Projects.
   
   Director Baskin moved to adopt Resolution No. GB-2016-03, Establishing a Policy for Distribution of Proposition 84 Grant Reimbursement Money. Vice President Nelsen seconded the motion. The motion was passed unanimously by President Cross, Vice President Nelsen and Directors Baskin, Boucke and Zell.
2. Discuss status of the "Notice to Proceed" for a test well at the Laurel Water Treatment Plant site.
   The District has been planning and publicizing the construction of a new test well at the Laurel Avenue Water Treatment Plant site for the past two years. It has been discussed at numerous Water Operations Committee meetings. The test well is part of a Proposition 84 Grant funded project of the Stinson Beach Water Supply and Drought Preparedness Plan, Supplemental Groundwater Supplies. Permits will not be requested from the County for a production well unless the test well proves to yield a substantial flow rate.
   
   The Board reviewed letters dated May 5, 2016 and May 14, 2016 from neighbor Barbara Leonard Robben and the General Manager's reply dated May 16, 2016 as well as his earlier letter addressed to Ms. Robben dated April 21, 2016, enclosing his staff report of September 15, 2015 and portions of the draft Project Manual for the Laurel WTP Test Well Project.
   
   It was the consensus of the Board to move forward with the Notice to Proceed to ABC Liovin Drilling, Inc. to drill the test well.
3. Review and possible direction to staff to submit the 2015 Water Quality/Consumer Confidence Report to all of the District's customers if requested.
   The Board directed staff to submit the 2015 Water Quality/Consumer Confidence Report to the State Water Resources Control Board, Division of Drinking Water. Consumers have the option to request a paper copy of the CCR by completing and returning the notice that will be inserted with the District's May 2016 water bills. The District had no water quality violations.

F.    FINANCIAL STATEMENTS

The Board reviewed the March 31, 2016 financial reports, including the investment report. The reports had been previously reviewed by the Finance Committee on May 4, 2016.

G.    APPROVAL OF MINUTES

Director Baskin moved to approve the minutes of April 16, 2016. Director Boucke seconded the motion. The motion was passed unanimously by President Cross, Vice President Nelsen and Directors Baskin, Boucke and Zell.

H.    APPROVAL OF DISBURSEMENTS

Director Baskin moved to approve the disbursements of April 14 and April 28, 2016. Vice President Nelsen seconded the motion. The motion was passed unanimously by President Cross, Vice President Nelsen and Directors Baskin, Boucke and Zell.

I.    MANAGER'S REPORT

The General Manager discussed his monthly report. District staff will participate in a webinar covering calculations to establish the amount of water that is unaccounted for or lost due to leaks, hydrant flushing or possible incorrect meter configurations.

Approximately 60 new water meters have been installed on Seadrift Road. About 7 water meters could not be replaced immediately due to the rusted and fragile condition of the shut off valves. Replacing these valves will necessitate having to do a major street shutdown. After Seadrift Road, Dipsea Road will be next, then the Patios, Calles, the hill, and finally downtown. The target date to replace all meters is November of this year.

A Board member requested that customers' addresses be placed on the monthly Tiered Usage Report that reflects the 10 highest residential users.

The Department of Water Resources and Jennifer Krebs will be advised that the District will be unable to start repairs to our water storage tanks pending receipt of the Proposition 84 Grant reimbursement.

J.    COMMITTEE REPORTS

Director Zell reported that the Marin/Sonoma Mosquito and Vector Control District and the West Marin Mosquito Council have agreed to a less toxic type of pesticide to spray in problem septic tanks. However, the best method of controlling mosquito breeding habitat is to screen roof vents and ensure the septic tank lids are properly sealed.

K.    CORRESPONDENCE

None.

L.    CLOSED DOOR SESSION

The meeting was adjourned to closed session at 10:40 a.m.

M.    ADJOURNMENT

Out of closed session at 10:52 a.m. and the meeting was adjourned at 11:00 a.m. Due to scheduled vacations, the next regular meeting will be moved one week forward from June 18 to Saturday, June 25, 2016, at 9:30 a.m.