HomeMy WebLinkAboutRE_ The Meadows - Review of the Financial Assurance and Septic System Operations_ Monitoring and Maintenance Agreements (0005)Linda,
Thank you for responding so quickly to my last draft. I will review the changes but will hold off sending out another version until have heard from you on my last email concerning ownership
of the existing system.
Gary
Gary N. Ackerman
ATTORNEY
FOSTER PEPPER PLLC
1111 Third Avenue, Suite 3000
Seattle, WA 98101
gary.ackerman@foster.com
Tel: 206-447-8956
Fax: 206-749-1901
foster.com
From: Linda Atkins [mailto:LAtkins@co.jefferson.wa.us]
Sent: Thursday, June 13, 2019 11:20 AM
To: Gary Ackerman
Cc: Austin Watkins; Bill Graham; Emma Bolin; Stuart Whitford; Jeff Ashmore
Subject: RE: The Meadows - Review of the Financial Assurance and Septic System Operations, Monitoring and Maintenance Agreements
Gary,
I met with Bill Graham and Randy Calkins of the PUD#1 on June 6th to discuss the items of concern regarding management and fees in the O&M Services Agreement. I sent the following to
them reflecting what we talked about in the numbered sections. I am waiting to hear from them regarding modifications to the agreement. The italics reflect our conversation and the
plain text is the tentative language.
Additionally, I made some corrections around retaining the security fund for bringing the sewer into the community if/when that happens. While the actual line from the street to the
structure may need to be paid by the owner, bringing the sewer line into the community from the Christney, the main road, should be supported by the security account since that is its
purpose “to replace the drainfield when it fails” or in the case of sewer, no longer needed. Currently the sewer plan does not require connection until a system is no longer functioning
property which would mean it has failed.
I will review the changes you made and consider the issues raised in the second email and discuss with Austin. I will be out of town this coming week and in training the 25th – 28th
but should have a chance to touch base with Austin during the training.
From conversation with PUD staff 6/6/19:
#1 Prior to issuance of the septic permit the PUD shall verify that the system has capacity. A signed “Customer Agreement For Sewage Collection, Treatment, and Disposal” with the PUD
#1 is required prior to issuance of a septic permit proposing to be connected to one of the community systems. Trying to get at the process we use so that the customer has an agreement
with PUD prior to permitting. Later there is a statement about PUD acceptance prior to final on a building.
#10 Management, Operation and Maintenance. The PUD #1 will be responsible for the operation, maintenance and management of the Phase 1 Meadows community on-site septic systems. Fees
shall be paid for these activities by STO LLC and The Meadows No. 1 Association as identified in section 13 of this agreement. Nothing in this agreement precludes the PUD#1 from utilizing
licensed professionals to complete maintenance where necessary. This is where I tried to put in some language about being able to hire licensed professionals.
#13 b. Under fees I think the rate charged needs to include the element of replacement and repair of components, as we talked about the system is not new and things wear out even if
not used.
#13 f. Bill and Randy, We talked about a base rate for the overall systems maintenance whether people are connected or not and also a per connection fee that may change over time. You
were going to look at incorporating tank pumping into the customer service agreement if the customer does not pump when notified with a standard statement about increasing monthly rate
if required pumping does not occur and you have to do it.
#15. Prior to approval of a permit to connect to the community systems the customer shall sign a “Customer Agreement For Sewage Collection, Treatment, and Disposal” with the PUD #1.
The PUD #1 shall be notified upon the completion of a building or dwelling unit requiring access to The Phase 1 Meadows Community On-site Septic System, STO LLC or his agent(s) or
subsequent owners or assigns in order to establish the effective date of service. Any suspension of service shall be similarly coordinated through PUD #1. I think this is also reflective
of our current practice that prior to final on the septic/building permit we get the OK from PUD that the connection is approved.
Linda Atkins, R.S.
Jefferson County Public Health, Environmental Health
360-385-9444 http://www.co.jefferson.wa.us/202/Public-Health
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From: Gary Ackerman <gary.ackerman@foster.com>
Sent: Monday, June 10, 2019 2:45 PM
To: Linda Atkins <LAtkins@co.jefferson.wa.us>
Cc: Austin Watkins <AWatkins@co.jefferson.wa.us>; Bill Graham <bgraham@jeffpud.org>; Emma Bolin <EBolin@co.jefferson.wa.us>; Stuart Whitford <SWhitford@co.jefferson.wa.us>; Jeff Ashmore
<ashmore.jeff@gmail.com>
Subject: RE: The Meadows - Review of the Financial Assurance and Septic System Operations, Monitoring and Maintenance Agreements
Linda,
I have revised the O&M Services Agreement and Financial Assurances Plan. Attached are clean and blackline copies. I believe the blacklines are comparisons to versions you have seen
but i am not positive. In any event, I have revised the agreements so that they deal mostly with Phase 1 – the existing system which had been installed and accepted by JCPH/PUD #1.
Upon meeting the security funding requirements, STO should be able to turn that system over to the owners association. I am a little unclear how the cost estimate in Section 18(f)
works and whether it has to wait until the 12th year.
Also, it seems that the owner should get back any amount left in the security account if the property gets hooked up to the public sewer. I have allowed for application of funds in
that account toward the owner’s cost of connection and then repayment to the owner of any amounts left over. This has not been approved by my client, who may have other objections,
questions, concerns, etc. concerning these versions.
I understand the provisions dealing with the scope and fees for monitoring and maintaining system are under discussion. I am clear exactly what the fee covers, i.e. is it a flat fee
for monitoring and maintenance. Does it include some repairs/replacements or just monitoring? Can it be prorated so that it is applicable only to the number of dwellings served?
If monitoring reveals work or repairs that should be done, who will do that? I have not tinkered with these provisions very much and look forward to getting some clarification on how
the PUD and JCPH expect this to operate. We will want to be reimbursed the costs of monitoring, operation and maintenance of the system by the owners through their association. The
extent to which we can have a flat, all-inclusive fee provides predictability for the association and lot owners.
Gary
Gary N. Ackerman
ATTORNEY
FOSTER PEPPER PLLC
1111 Third Avenue, Suite 3000
Seattle, WA 98101
gary.ackerman@foster.com
Tel: 206-447-8956
Fax: 206-749-1901
foster.com
From: Linda Atkins [mailto:LAtkins@co.jefferson.wa.us]
Sent: Tuesday, May 21, 2019 3:26 PM
To: Jeff Ashmore
Cc: Austin Watkins; Gary Ackerman; Bill Graham; Emma Bolin; Stuart Whit ford
Subject: RE: The Meadows - Review of the Financial Assurance and Septic System Operations, Monitoring and Maintenance Agreements
Jeff,
I will need to discuss these items with Austin to come up with language that is consistent with the code requirements. Essentially, while I understand that the PUD does not want to
own the system they need to manage it and charge/collect enough to make maintenance repairs and pump components as needed as well as file the required reports to the system identified
by the county without going to STO LLC or the homeowners association for necessary maintenance.
On the estimate I don’t see any information on who prepared the estimate and whether they addressed current code requirements if the system were to be replaced today.
I cannot guarantee that I won’t have comments based on the response to my comments and changes by the PUD or your attorney.
Linda Atkins, R.S.
Jefferson County Public Health, Environmental Health
360-385-9444 http://www.co.jefferson.wa.us/202/Public-Health
CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any
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original message.
PUBLIC RECORDS ACT NOTICE: All e-mail sent to this address has been received by the Jefferson County e-mail system and is therefore subject to the Public Records Act, a state law found
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From: Jeff Ashmore <ashmore.jeff@gmail.com>
Sent: Monday, May 20, 2019 3:04 PM
To: Linda Atkins <LAtkins@co.jefferson.wa.us>
Cc: Austin Watkins <AWatkins@co.jefferson.wa.us>; Gary Ackerman <gary.ackerman@foster.com>; Bill Graham <bgraham@jeffpud.org>; Emma Bolin <EBolin@co.jefferson.wa.us>; Stuart Whitford
<SWhitford@co.jefferson.wa.us>
Subject: Re: The Meadows - Review of the Financial Assurance and Septic System Operations, Monitoring and Maintenance Agreements
Hello Linda,
O&M
Recitals item #9/#10 - what do you want it to say?
Recitals #12 - what do you want it to say?
FAP
Please see attached in regard to item 18. Are you otherwise satisfied with the draft?
I trust that your comments above reflect a comprehensive final review of the drafts and once these revisions are made that we can move forward to recording.
Jeff Ashmore - Owner/Broker
iPhone 360-531-4131
On Sat, May 18, 2019 at 11:15 AM Linda Atkins <LAtkins@co.jefferson.wa.us> wrote:
Attached are my comments and corrections for the Financial Assurance and Septic System Operations, Monitoring and Maintenance Agreements regarding Phase 1 of The Meadows that I received
from Jeff Ashmore. I think I responded to the questions you had in the draft you reviewed and I asked a few questions in this draft.
For the Operations, Monitoring and Maintenance Agreement an issue is that per #9 and 10 of Recitals the PUD is not agreeing to the management and operation of the community systems as
required in the code and the ownership of the project is clearly intended to transfer to a homeowner association. #12 in Recitals states that STO LLC will be entitled to receive funds
from the security fund upon termination of its obligations which seems to indicate that when they transfer ownership to the homeowners association they anticipate getting the ‘security
fund’ back. This is definitely not the intent. The security fund is specifically intended to be the start for the long term ability to replace the drainfield when it fails, which
it will. We have quite a bit of experience in this area with other community systems.
For the Financial Assurance Plan it does not appear that any of your comments from the previous draft were incorporated. I am attaching that previous draft for your convenience (doc
name starts with Olympic Greens). Regarding #18 Security they have not changed this language for a) I noted that we need information on how this amount was arrived at.
Below are the most pertinent sections of the code but I can provide additional sections to support any items of the agreements you need.
JCC 8.15.100 COMMUNITY ON-SITE SEWAGE DISPOSAL SYSTEMS
(1) Community on-site sewage systems as defined in this chapter shall be designed in accordance with WAC 246-272A, this code and the maintenance criteria as set forth in the current
Washington State Department of Health “Design Standards for Large On-Site Sewage Systems,” 1996, and WAC 246-272B or as they may be hereafter amended.
(2) Management of community on-site sewage systems shall be by an entity approved by JCPH. If the lots are individually owned the management shall in all cases be provided by a public
entity. A homeowners association is not considered an approved entity for the management of a community on-site sewage system.
(3) A covenant shall be recorded to the property and shall remain in place for the life of the on-site sewage system or until the on-site sewage system is no longer needed. It shall
provide the management entity the following items including but not limited to:
a. A legal easement allowing access for construction, operation and maintenance, and repair of the OSS; and
b. Identification of an adequate financing mechanism to assure the funding of operation, maintenance, and repair of the OSS.
(4) All lots, parcels, or individual connections to a community system shall be equipped with a water meter or other approved method for monitoring flows into the system.
(5) Sites proposing community systems shall conform to the minimum land area requirements of WAC 246-272A.
(6) All community on-site sewage systems shall provide an annual report to JCPH including the following at a minimum:
a. Number of connections to the system and each connection’s design flow.
b. Copies of inspection reports consisting of the items identified on forms provided or approved by JCPH per 8.15.150 (10) and completed per 8.15.150 (7).
c. Records identifying all maintenance completed on the system components.
8.15.140 OPERATION AND MONITORING SPECIALIST
(6) Inspection Reports shall be submitted by the Operations and Monitoring Specialist to JCPH or other authorized agency within thirty (30) days following the inspection.
a. The reports shall be submitted in the format and manner prescribed by JCPH.
b. Fees shall be charged for each report submitted with the exception of those submitted within 60 days to follow-up on corrections identified in a previous report.
c. Fees due to Jefferson County for submittal of inspection reports shall be payable within 30 days of invoice.
d. By submitting the report the Operation and Monitoring Specialists affirms that they have performed and accurately reported all current system and site conditions.
i. At a minimum, the monitoring inspection shall include a site visit and a visual inspection of all tanks, pump basins, treatment units, disposal
area and other components of the system as detailed on the record drawing or site plan on record.
e. Maintenance items completed, including those listed in 8.140 (4) b, shall be reported on an inspection report to JCPH in an approved format within thirty (30) days of completion.
8.15.150 OPERATION, MAINTENANCE AND MONITORING
(7) On-site Sewage System Inspection Requirements.
a. The owner shall assure that the OSS receives a complete evaluation of the system components and/or property to determine functionality, maintenance needs and compliance with regulations
and any permits:
i. At least once every three years for all systems consisting solely of a septic tank and gravity drainfield;
ii. Annually for all other systems unless more frequent inspections are specified by these regulations or the local health officer.
d. Inspection by a certified O&M Specialist, Licensed Designer or JCPH is required:
iii. For community on-site sewage systems.
iv. For on-site sewage systems serving commercial enterprises unless authorization is granted to the homeowner for a specific OSS system.
v. At the time of sale or transfer of a property, EXCEPT if there is a monitoring inspection on file by a Certified O&M Specialist or Licensed Designer
in compliance with the inspection frequency identified in JCC 8.15.150 (7)a. The Monitoring Inspection Report shall be on file with JCPH prior to the sale or transfer.
vi. At the time of application for building permit on the property per JCPH Policy 04-01 as adopted or amended.
vii. At the time of application for other land use or governmental actions including but not limited to:
1. Land Divisions where an existing OSS is part of the proposal,
2. Conditional Use permit,
3. Boundary Line Adjustment where an existing OSS is part of the proposal.
Linda Atkins, R.S.
Jefferson County Public Health, Environmental Health
360-385-9444 http://www.co.jefferson.wa.us/202/Public-Health
CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any
unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the
original message.
PUBLIC RECORDS ACT NOTICE: All e-mail sent to this address has been received by the Jefferson County e-mail system and is therefore subject to the Public Records Act, a state law found
at RCW 42.56. Under the Public Records law the County must release this e-mail and its contents to any person who asks to obtain a copy (or for inspection) of this e-mail unless it
is exempt from disclosure under state law, including RCW 42.56.