Jack McCurdyAugust 2011
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JPA Members Mostly Mum on Schultz Remarks

Synopsis:  Mayor Bill Yates is the only member of the Morro Bay City Council or Cayucos Sanitary District board who responded to questions about their prior knowledge of and reactions to Morro Bay city attorney Rob Schultz's remarks last month claiming Cayucos has been unwilling to shoulder all costs of the new wastewater treatment plant that is being planned jointly by the two communities. 

Members of the Morro Bay City Council and the Cayucos Sanitary District board were asked if they were aware beforehand that Morro Bay City Attorney Rob Schultz was going to tell a community meeting on June 30 that Cayucos had balked at paying its share of costs for a new wastewater treatment plant that they own and operate together. They were also asked if they agreed, disagreed, or had any comments on what Schultz said.

Mayor Bill Yates was the only one among council members who responded. Cayucos district (CSD) manager Bill Callahan responded but did not answer the questions that were submitted and did not say if his comments represented those of the Cayucos board, which is what was requested.

At the same time, Schultz has said in a July 20 email to the Journal that "I made no such statements at the MB Forum," referring to his remarks reported in the Slo Coast Journal on July 1, which were made at the Business and Community Forum in Morro Bay on June 30. Schultz made comments from the audience about the wastewater treatment plant project during a talk by Neil Farrell, managing editor of the Bay News, on "Issues in the News Affecting Morro Bay and SLO." Farrell reportedly was accompanied at the forum by Christopher Gardner, executive editor of Tolosa Press, which publishes the Bay News.

After the forum, Schultz had confirmed the remarks that were then reported in the Journal, although Schultz now disputes that, and they also were confirmed by three others who attended the forum that morning and heard him. Morro Bay council member Noah Smukler was also present, but he could not be reached for comments on Schultz's remarks. (Even through Farrell and Gardner were there, Schultz's remarks were not reported in the Bay News.)

Following are questions submitted to members of the city council, and Yates' replies in parentheses:

I would like to know if you have any comments about the remarks that Rob Schultz made on June 30 at the Business and Community Forum. An article about his remarks is at Slo Coast Journal.  Yates' response: "I can not comment on your piece because I do not/will not read your site nor any of its 'articles.' "

I have these specific questions I would like you to address: 

1. Do you agree with the statements he made. If not, which ones? Yates' response: "See my comment above."

2. Had you been aware that the Cayucos Sanitary District had refused to pay its fair share for site alternative studies in connection with the planned wastewater treatment plant to be built by the city of Morro Bay and the CSD, as Schultz stated at the Forum?  Yates' response: "I am not aware of any refusal and do not believe Mr. Shultz made that statement."

3. Were you made aware before the Forum that he was going to or might make such statements?  Yates' response: "I was not aware of what Mr. Schultz would say at the forum; we never discussed it.  Again, I do not believe Mr. Schultz said the CSD refused to pay its fair share of the alternative site studies.  Did you HEAR him say that?" 

4. Do you believe that the CSD will now be required to pay its share as a partner in the Joint Powers Agreement (JPA) because the Coastal Commission has required those studies to be carried out by the Coastal Development Permit applicants, which I understand are the city and CSD?  Yates' response: "I have always believed the City and CSD would share in the costs of the studies."  

5. Do you think that this apparent disagreement over sharing the costs of the site alternative studies can be overcome and the city and CSD can pursue the WWTP project in a cooperative manner as JPA members?  Yates' response: "There is no 'disagreement' - as you allege - that I am aware of, apparent or otherwise.

These are the questions submitted to the Cayucos Sanitary District board through Callahan since the District's website does not list the email addresses or phone numbers of board members: 

Dear Board Members, I would appreciate responses to these questions:

1. Do you have any comments on what Mr. Schultz said on June 30, 2011?

2. Do you agree with the statements he made. If not, which ones?

3. Specifically, as far you know, had the District refused to pay its fair share for site alternative studies in connection with the planned wastewater treatment plant to be built by the city of Morro Bay and your District, and if so, why?

3. Were you made aware before the Forum that he was going to or might make such statements?

4. Do you support the District paying its fair share of the costs of the site alternatives study now being conducted by consultant Dudek engineering?

Callahan responded that "the questions you have posed seem to revolve around District participation in some unspecified 'Alternatives Analysis.' You make references to more than one in your article. The only analysis that I am aware of is the Chorro Valley analysis the City completed to potentially assist in augmenting water supply. Based on the results of that analysis, the City decided it would be cost prohibitive to move forward (you would be better served discussing this with the City for additional details). My recollection (this was at the beginning of my employment with the District) is the City initiated this study. JPA minutes (Dec 14, 2006) show the City initiating this study on their own September 14, 2006) without consulting the District as to the scope or contractual agreement with Cannon and Associates. There was no request for District participation at the inception of the study. You also reference a '1999 Alternatives Analysis' which I have no knowledge of. The only 1999 study I am aware of is the H2O Reclamation Study. It is my understanding that the District did participate in this study."

He continued, "The District has consistently pushed to get this project completed 'as fast as possible' so I am puzzled and disappointed by your insinuation that we have been the source of any delays." Actually, it was Schultz's remark, not the Journal's.

"The District," he added, "has paid its 'fair share' for WWTP related expenses per the Joint Powers Agreement with the City of Morro Bay and will continue to do so."

Callahan did not say whether his responses represent those of the board, nor did his responses answer all the questions that were submitted to the board through him. 

Whether any of this will be discussed at the next JPA meeting between the city and the sanitary district on Thursday, August 11, at the Cayucos Veterans Hall starting at 6 p.m. remains to be seen. No agenda for the meeting has been posted.

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