BOARD MEETING MINUTES

REGULAR MEETING
SATURDAY, OCTOBER 15, 2022, AT 9:30 A.M. (VIA ZOOM)

A.    CALL TO ORDER/ROLL CALL

The meeting was called to order by President Nelsen at 9:30 am.

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

General Manager present:
Kent Nelson

Staff present:
Marc Matheson - Administrative Assistant

B.    TELECONFERENCE AUTHORIZATION

Consider and reaffirm Resolution GB 2022-08 making findings pursuant to Assembly Bill 361 in order to hold a teleconference meeting during a proclaimed state of emergency.

Director Cross motioned for approval, which Director Baskin seconded; the board voted unanimously for approval.

C.    APPROVAL OF MINUTES

Director Cross requested clarification of the Minutes, specifically on page 4, item F- 5, "Discussion and possible direction to staff re: proposal from the Stinson Beach Affordable Housing Committee," final paragraph.

The corrected text should read, "It was the board's consensus that this matter be continued to the Finance committee and then to the October board meeting, with an improved proposal to be submitted at that time."

The Minutes were approved unanimously, incorporating Director Cross' correction.

D.    SETTING OF AGENDA

Director Boucke motioned for approval the agenda, which Director Baskin seconded; the board voted unanimously for approval.

E.    PUBLIC COMMENT

There were no public comments.

F.    PUBLIC HEARING

1. Discussion and possible direction to staff regarding use of a new alternative wastewater systems design at 332 Seadrift Road, Kristine Johnson, owner. Account 3850.
   Wastewater Engineer Rich Souza initiated the discussion, noting the presence of just one variance, related to the addition of an Accessory Dwelling Unit increasing habitable space by 800 square feet. He also noted the four findings of facts which make the variance request necessary, which facts are detailed in the accompanying Resolution WW 2022-06.
   
   Wastewater committee chair Director Cross affirmed that committee's approval.
   
   Following discussion and a board request for conceptual drawings in future variance requests, Director Baskin motioned to approve board resolution WW 2022-16, which motion Director Zell second; the board voted unanimously for approval.

G.    GENERAL BUSINESS

1. Presentation by Allan Richards, Stetson Engineers, regarding the Ranch Well Replacement Coastal Development Permit.
   Mr. Richards informed the Board that following Stetson Engineers' submittal, on behalf of the District, of the requested cone of depression technical memorandum, the District's Coastal Development Permit application is complete.
   
   A County Planning Commission hearing has been scheduled for November 17. A Deputy Zoning Administrator's report will be released in advance of that hearing. Mr. Richards and General Manager Nelson will attend and will present a District staff report.
   
   The County Zoning Administrator will announce their determination at the conclusion of that hearing, which determination will, in this case, cover both the County and the California Coastal Commission jurisdictions.
   
   Mr. Richards noted that should the determination not be in the District's favor, appeals will then be made separately to both the County and the Coastal Commission.
   
   Director Cross asked whether serpentine rock was part of the Ranch well replacement substrate. Mr. Richards was not aware of the rock composition beyond what was reported in the well driller's reports. General Manager Nelson also indicated that regular water quality testing on all source water wells would indicate if contamination were occurring.
2. Discussion and Board action regarding the current draft of the Option Contract Term Sheet with the Stinson Beach Community Center.
   General Manager Nelson informed the Board that Hanson Bridgett Attorney Laura Ratcliffe had drafted agreement edits based on September Board meeting feedback. He recommended that the draft go to the Legal committee before coming before the full Board.
   
   Director Baskin, a Legal committee member, provided two potential edits, first regarding the term length of the agreement, and second, the financial compensation to be offered by the District to the Community Center.
   
   Ms. Ratcliffe's draft was subsequently circulated to the Legal committee members, Directors Baskin and Cross.
   
   Mr. Richards of Stetson Engineers, project manager for the proposed well, informed the Board that once an agreement is in place the first step will be the performance of a site assessment; WRA Environmental Consultants is the firm previously used by the District for site assessments. Site access will be a priority, and Board discussion touched on notifying Community Center neighbors as well as the community.
3. Discussion and Board action regarding current draft of the franchise agreement with Recology effective January 2023.
   General Manager Nelson informed the Board that Recology's latest draft contract had been delivered to the District on October 14 and forwarded on to Hanson Bridgett for review.
   
   The Board was joined by Ms. Nikki Burke, Senior Rate Analyst with Recology Sonoma Marin, with whom the District has been negotiating contract amendments since September 2020. The Board discussed with her extensively the bases for proposed rate increases.
   
   Discussion also touched on Proposition 218 guidelines for communicating rate increase proposals. The deadline for beginning Proposition 218 communication is December 6.
4. Review of District finances.
   General Manager Nelson reviewed the quarterly financial reports, noting that the revenue comparison data, on page ten of the reports, will be made more comprehensible in the future with the conversion to a graph.
   
   Director Boucke informed the General Manager that over time the District has allocated County property tax income by a formula of 30% to wastewater operations and 70% to water operations.

H.    APPROVAL OF DISBURSEMENTS

August 18, 2022 through September 19, 2022. Director Boucke motioned for approval, which motion was seconded by Directors Cross and Baskin, and approved unanimously by the Board.

I.    STAFF REPORTS

1. Capital Improvement Program Update
   Engineer Allan Richards reviewed the four current major projects: the Ranch well replacement; proposed Community Center well; the Ranch tank replacement; and desalination options.
2. Current Water Storage Report
   General Manager Nelson reviewed the report.
3. Tiered Water Usage Report
   General Manager Nelson reviewed the report. Discussion touched on how to effect better responses from the customers continuing to use excessive amounts of water in spite of ongoing District correspondence. The Board instructed that the wording in the letters sent to top users be modified to reflect the severity of this issue.
4. Water Operations Report
   General Manager Nelson reviewed the report.
5. Wastewater Failed Systems Report
   General Manager Nelson reviewed the report.

J.    GENERAL MANAGER REPORT

General Manager Nelson reviewed each of the points of his report.

Elaborating on the drought planning item's desalination feasibility study, he noted availability of $150,000 with a 50% matching share, requiring the District's investment of $75,000. The District has applied for this grant, which application does not obligate the District.

On the drought planning alternative water sources item, Allan Richards will proceed with a cost estimate update of the 2006 drought planning.

General Manager Nelson reviewed his consent calendar proposal. He also noted his upcoming November 1st meeting with John Cropper, the District's auditor. Mr. Nelson also elaborated on his request for current Board member contact information as well as scheduling preferences for regular one-on-one meetings with Board members.

K.    COMMITTEE REPORTS

Following up on previous Board discussion of healthcare benefit coverage equity, General Manager Nelson suggested a meeting of the Personnel committee, composed of President Nelsen and Director Baskin, to review the financial impact of extending universal dependent coverage to all employees. It was agreed that a meeting would be scheduled.

L.    CORRESPONDENCE

There was no correspondence.

M.    ADJOURNMENT

There being no further business, the meeting adjourned at 11:35 am.