Peter (phuc) Phan, Resp v. Pollution Control Hearings Board And The City Of Kirkland, App

Court of Appeals of Washington·Decided March 2, 2020·No. 79392-6·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

PETER (PHUC) PHAN, No. 79392-6-I

Respondent,

DIVISION ONE

V.

UNPUBLISHED OPINION

POLLUTION CONTROL HEARINGS BOARD,

Defendant,

CITY OF KIRKLAND,

Appellant.

FILED: March 2, 2020

APPELWICK, C.J. — This appeal asks us to determine whether seizure of Phan’s vessel by the City was consistent with the statutory requirements of the DVA1 and whether the Board properly awarded costs under the act. We reverse the Board’s finding that the City properly took temporary possession of the vessel under the DVA. We affirm the Board’s finding that the City properly took permanent custody of the vessel on November 17. As a result, the City is entitled to recover under the DVA only those costs related to taking permanent custody of the vessel. The Board erred to the extent that it awarded the City other costs. We vacate the order of the Superior Court and remand to the Board to amend its order in accordance with this opinion.

1 Derelict vessels act, ch. 79.100 RCW.

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FACTS

Peter (Phuc) Phan is the owner of a 57-foot catamaran. He purchased the vessel in California in 2016 and transported it to Washington. With the help and consultation of various professionals, Phan constructed a second story on the vessel. Phan, a well-known musician, intended to use the vessel for musical excursions around Puget Sound. He had never owned a boat before this vessel.

Phan initially obtained moorage for the vessel through a sublet in the summer of 2017. After the sublet expired, Phan anchored the vessel in Lake Washington, moving it between Juanita Bay and Andrews Bay as allowed by law.2 He testified that he and his wife were attempting to find permanent moorage for the vessel during this time.

The vessel’s anchor proved to be ineffective at securing the vessel in place while anchored in Juanita Bay. From September to October 2017, the King County Sherriff’s Department, which the City of Kirkland (City) contracts with to police its Lake Washington waters, received several calls concerning Phan’s vessel in Juanita Bay. This led to communications between sheriff’s deputies and Phan. The sheriff’s department claimed that Phan indicated he had intentionally run the

2 The Seattle Municipal Code (SMC) limits anchorage in Andrews Bay to 72 hours in any one week period. SMC 16.40.030(F). The Kirkland Municipal Code (KMC) limits anchorage in Juanita Bay to 72 hours in any one week period or 216 hours in any one month period. KMC 14.16.030. Prior to the passage of this limitation, the City of Kirkland’s waters were subject only to state regulations, which allowed for a boat to be docked for up to 30 days, but not longer than 90 days in a 365 day period. WAC 332-52-1 55.

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aground.3 A sheriff’s deputy then reached out to the Department of Natural Resources (DNR) to determine the legality of running a boat aground in Lake Washington. The DNR advised the deputy that grounding a vessel in Lake Washington, intentionally or not, was a violation of RCW 79.02.300.

On October 6, 2017, Phan’s vessel again became grounded in Juanita Bay.

Phan contacted his boat towing insurance provider, Tow Boat US, to have the vessel towed. Once the vessel was dislodged, it began to take on water. The towing company regrounded the vessel about 70 feet from a pier owned by the City. Phan then contacted the sheriff’s department to report that the vessel was taking on water. Concerned that the top heavy construction of the vessel would cause it to tip over, deputies boarded the vessel and began dewatering efforts. Deputies were able to keep the vessel from capsizing, and Phan was able to enlist a commercial service, Aqua Dive Service, to fully dewater the vessel and plug the leak. However, Aqua Dive was unable to tow the boat away due to worsening weather conditions. The vessel was tied to the City’s pier. Sherriff’s deputies informed Phan that he needed to remove his vessel the next day, when it was safe to do so.

By the next morning, the vessel had sunk and was resting on the lakebed in approximately two and a half feet deep water. Considerable damage had been done to the City’s pier. Sheriff’s deputies again contacted Phan, informing him that the vessel needed to be moved as soon as possible. Two days later, on October

~ Phan claims he never intentionally ran his boat aground and that he was trying to communicate that he was not working hard to get it back on the water after it had unintentionally grounded.

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9, the vessel had not been moved. Deputies informed Phan that the vessel would be impounded if it was not moved immediately.

Phan then contracted with Seacrest Marine to move his vessel. It arrived on scene and developed a plan to move the vessel, which could not move under its own power and could not be towed in the condition it was in at that time. It stated that it would begin removal efforts the next day. However, Seacrest Marine did not arrive the next day, and could not be reached by phone.

The City called Blackwater Marine LLC, a diving and marine contractor with whom it had an existing relationship. When Blackwater arrived, sheriff’s deputies asked if it would give Phan a quote to have the vessel refloated. Blackwater informed Phan that it would charge him $12,000 to refloat the vessel. Phan was unable to pay that amount, so the City directed Blackwater to impound the vessel.

On October 11, 2017, with Phan present, Blackwater completed refloating the vessel and towed it to the Lake Washington ship canal for impound. The next day, Blackwater requested a condition and damage survey on the vessel from Rhumb Line Maritime LLC. Rhumb Line determined that the vessel had sustained significant damage. In the opinion of the surveyor, the vessel was a “total loss due to the structural stern damage and from the flooding.” After some difficulty, Blackwater was eventually able to store the vessel at Lake Union Dry Dock.

By October 17, 2017, Phan had still not redeemed his vessel from impound.

Representatives from the City and the King County Sherriff’s Department met with Troy Wood of the DNR to discuss the vessel. At that time, the City was made

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aware of the process to seize a vessel under the derelict vessels act, chapter 79.100 RCW (DVA). The City then made the decision to utilize this process.

That same day, the City prepared a notice of intent to obtain custody, laying out the reasons for the City’s seizure of the vessel, and indicated that the City intended to take permanent possession on November 16. The notice included information on what the owner needed to do to maintain possession of the vessel, and indicated that the owner could appeal the order to the Pollution Control Hearings Board (Board). The City posted the notice on the vessel that day, and sent the notice to be posted on the DNR website. Either later that evening or the next morning, a representative of the DNR confirmed that the notice had been posted on its website. The City also sent Phan a letter by certified mail on October 27, 2017. The letter indicated that the City intended to take custody of Phan’s vessel on November 17, provided the City’s reasons for taking possession, and notified Phan of his ability to appeal the decision to the Board. The City then posted the notice in the Seattle Times from November10 through 16, 2017.

On December 15, 2017, Phan submitted his appeal to the Board. In his initial appeal, he did not dispute the City’s reasons for taking custody of the vessel. Rather, he placed blame for the damages on Tow Boat US, the company he hired to tow his vessel after it was grounded in Lake Washington on October 6. He also challenged the reasonableness of the fees charged by Blackwater to impound his vessel. He later indicated to the Board that he was challenging both the City’s justification for taking possession of his vessel and whether it had followed proper procedures in doing so.

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