Morro Bay/Cayucos Partnership — To Be or Not To Be
By Richard E.T. Sadowski
Summary
The current Joint Powers Agreement (JPA) between the Cayucos Sanitary District (CSD) and Morro Bay was negotiated in 1982. It covers the ownership and operation of the jointly-owned wastewater treatment plant in Morro bay. The CSD and Morro Bay are currently deciding what to do with regard to future wastewater treatment facilities.
The JPA is outdated and in need of revision and expansion to cover new laws and regulations. In addition, the current JPA has some serious shortcomings in addressing and resolving some of the current situations that Morro Bay and the CSD are faced with today. It is possible that the City and the CSD will build a new joint wastewater treatment plant. However, it is also very possible that they may be building separate plants or looking at other options.
Whatever they decide, the current JPA does not cover many of the current and future issues, making the need for a completely new JPA agreement that much more urgent, if one is needed at all.
History of the Agreement
The original agreement was negotiated in 1953 and was between the Morro Bay Sanitary District and the Cayucos Sanitary District (CSD). The City of Morro Bay was incorporated in 1964. After that, the JPA was amended in 1969 and again in 1973. The JPA currently in force replaced the original 1953 JPA, and was finalized on October 25, 1982. The purpose of the 1982 agreement was, in part, resolution of a dispute that was in litigation, and in part to establish an agreement for the upgrade and future use of the existing plant.
The 1982 agreement was written by Terry Schubert, who was president of the CSD. The agreement was signed by Schubert (also the CSD attorney), Eugene Shelton, who was mayor of Morro Bay, and other City of Morro Bay officials.
The agreement says that "the ocean outfall was designed, constructed and paid for on the basis of 40% ownership and capacity by Cayucos, 60% by Morro Bay." It also says that when the plant upgrade is done, "Morro Bay will own and hold capacity rights to 65% and Cayucos 35%." Additionally, it is stated that, "This change in percentage of plant ownership will not affect the ownership of the treatment plant site property, or the common trunk line, all of which will remain at the 60%/40% split."
The agreement also contains a clause that estimated the plant's useful life at 30 years. The 30 years were up in 2012.
In 2002, Morro Bay and the CSD began work on a wastewater treatment plant upgrade, and felt that there was no need for a new JPA even though many residents felt differently. For over 30 years the MB-CSD WWTP has operated under a 301(h) waiver that allows wastewater to be discharged into the ocean, water that does not meet the minimum legal standard for treatment as defined by the Clean Water Act of 1976. During the last 10 years the City and the CSD were informed that the current WWTP was in a Flood Zone and Tsunami Zone and that state regulators were encouraging local agencies to proactively address moving critical infrastructure that deal with public health and safety off the California coastline. All of these issues were ignored by both parties and are not properly covered in the current JPA.
What's Happening Now
In 2007, I analyzed the JPA and co-authored a report for the City Council. The report was called "Wastewater Treatment Plant Joint Powers Agreement – Financial Impacts on Morro Bay." The report listed several parts of the JPA that benefited Cayucos more than Morro Bay. (See 2007 JPA Report)
After receiving the report, the 2007 Council arranged for the creation of a subcommittee to work with the Cayucos Sanitary District to look into a new JPA agreement between the City of Morro Bay and the Cayucos Sanitary District. As of 2013, no changes to the agreement have been recommended by the subcommittee.
Recently when asked about the status of the subcommittees work, Morro Bay City Attorney Rob Schultz said that "the subcommittee had not met since the appeal to the Coastal Commission. It was determined at that time that until we have an approved project, it would be useless to work on an agreement that may not be applicable, so no work has been done on rewriting a JPA agreement since then. Since the project was not approved, we did not want to waste time on an agreement that would not be applicable, a very wise decision. Until we know where the WRF (water reclamation facility) is going, it is impossible to write an agreement, so we will wait until we have a better understanding of the project and then see if CSD is interested in joining the City in that project and begin to rewrite."
Based on the city attorney's recent remark, it appears that the current JPA may have expired, which begs the question: Why are there JPA meetings being held without a current agreement?
Since the Coastal Commission rejected the project that would have allowed construction of a new WWTP next to the existing one on Atascadero Road on the shores of Estero Bay, Cayucos has been considering building its own separate plant. Some CSD Board members have said they are against moving the plant, and have even said they might try to stay in the current plant while Morro Bay builds a new facility for its own use. CSD Board members said that they are not interested in paying for reclaimed water because they believe they have no need for it. At the May 9, 2013, JPA meeting, the CSD said that they have hired Water Systems Consulting, Inc. to help decide the best course for the CSD, and that a report is forthcoming. There is no indication which way the CSD is leaning. However, the CSD Board President, Robert Enns, has spoken to some citizens regarding a regional wastewater treatment plant option with the California Men's Colony and the city of San Luis Obispo. The CSD Board has not shared this with the Morro Bay City Council or the general public at the JPA meetings. However, the SLO Coast Journal reported on this matter in the April 1, 2013, edition. (See Morro Bay, Cayucos May Have to Go to Prison to Build WWTP)
How much of the jointly-owned existing collection infrastructure of the existing plant could be used has not been discussed in an open meeting. However, it would need to be upgraded. Whether or not the city and the CSD decide to have a common plant or separate ones, there are major issues with the sewer lines that now carry sewage to the plant.
The JPA says, "With the exception of the common trunk line and ocean outfall provided for in Paragraph 5, each of the parties shall assume the full responsibility for the construction, repair, replacement, operation, and maintenance of any trunk lines and sewer collection lines within their respective boundaries…each party agrees to adequately maintain the collection and trunk lines within their respective boundaries." It also says, under the section, "Quality Criteria," that "In addition, each agency shall carry out a maintenance and repair program to substantially reduce or eliminate the infiltration of seawater and storm waters into the respective sewage collection systems."
The trunk lines that run through Morro Bay are known to have serious defects and to be leaking severely. This is shown by video inspections. California Coastal Commission staff member Mike Watson was worried about the lines as early as 2008. In December, 2008, Watson sent a letter with the title " Notice of Preparation Comments, Morro Bay Wastewater Treatment Facilities Upgrade (SCH#2008101138)" to Morro Bay City staff.
The letter said, "In the recent past there have been WWTP reliability issues (including piping, pump, and lift stations that have caused spills, contamination, and diversion of untreated wastewater into the Bay and coastal waters). As you know, the Commission recently acted on an appeal brought by local residents claiming that breaches in the City's wastewater pipes was causing the City's potable water wells to be cross-contaminated with undesirable constituents.
Although the Commission chose not to take jurisdiction over the CDP (Coastal Development Permit) in that case, it was clear from our review of the appeal that there may be problems with the City's wastewater infrastructure. Thus, the DEIR (Draft Environmental Impact Report) should address how the proposed upgrade will also correct any deficiencies in these related WWTP facilities to eliminate future spills or contamination and ensure that coastal water quality is appropriately protected."
The 2010 DEIR for the old WWTP project did not cover this problem, but the Coastal Commission Staff is not likely to allow this problem to be ignored.
The leaky lines mean that a lot of sewage never gets to the plant. That means that it is impossible to know what capacity a new plant will need to have. It also means that, until the lines are fixed, we don't actually know if the City and the CSD are conforming to their agreements regarding the percentage of plant capacity that each party can use.
Cayucos pays only for the amount of sewage that is measured at a lift station in North Morro Bay. Currently, based on measured sewage flows, Cayucos pays for about 20% of treatment costs, and Morro Bay pays the rest. However, it is unknown how much of Cayucos's sewage may be leaking into the ground in Morro Bay and never reaches the plant. Another complication is the fact that about the time that the 1982 JPA was negotiated, Cayucos added a new private trunk line to carry its sewage to the plant. So, the CSD has two trunk lines down Main Street that need maintenance and repair. When the infrastructure is repaired, moved or replaced, it may be found that the percentages of treatment capacity will need to be changed.
So, regardless of whether or not the City and CSD build a new plant together or build their own separate facilities, there are some infrastructure problems that need to be addressed, and they may affect future agreements.
What Does the Future Hold?
If the City of Morro Bay and the CSD decide to build a jointly-owned plant, the new JPA will have to conform with new regulations, like California AB32, Executive Orders S-3-05 and B-16-2012, which addresses climate change, sea level rise, and greenhouse gas sequestration. The 1982 JPA agreement does not cover those issues and any other laws enacted since 1982.
A new JPA would have to address reclaimed water, even though the CSD has said they don't need it. This might mean that Morro Bay would have to cover most or all of the associated costs (for such water). However, the financial benefits and the need for a sustainable water supply for the city make this a reasonable and necessary investment for Morro Bay. Morro Bay badly needs to improve its water supply, and the State Water Resources Control Board, the California Coastal Commission and Department of Water Resources are all pressuring communities to establish sustainable water supplies, so whether or not the CSD wants to participate, water reclamation will be a major part of any plant that involves Morro Bay. At the Oct.14, 2010, JPA meeting, Enns pointed out that recycled water was not a viable option for Cayucos as stated in the original study (1999 Cayucos/Morro Bay Comprehensive Recycled Water Study)....
He reiterated previous conversations that the recycled water costs, should the CSD go forward with this, be funded separately from the WWTP and be its own project for Morro Bay. The main water supply for Cayucos is Whale Rock reservoir. The 1999 study concluded that Cayucos had an adequate water supply to meet existing and future needs.
Currently the State Water Resources Control Board (SWRCB) is amending California Ocean Plan Policies to reflect the need for new regulations that pertain to water reclamation and desalination plants, as stated in an upcoming June 4,2013 SWRCB agenda document: Water Boards - Agendas 2013. The amendments are needed because there are currently no water quality objectives for elevated salinity in receiving waters in the California Ocean Plan.There are no provisions specifically addressing brine waste discharges from seawater desalination plants, groundwater desalination plants, or water recycling treatment plants.
Other issues that are not clearly addressed in the current JPA include disposition of the property where the existing plant is and the possible abandonment of the ocean outfall. These are just some of the issues that clearly need to be addressed in a new JPA agreement prior to entertaining any plans that involve the CSD and Morro Bay with respect to wastewater treatment and conveyance.
The City of Morro Bay needs a clear understanding of the capacity needs of the new Water Reclamation Facility (WRF). To do so, the CSD must be clear regarding their involvement and plans with the city regarding wastewater treatment. If the CSD and the City decide to work together on a new facility, a new JPA is essential in order to set operational responsibilities and how water-related commodities are to be calculated. If Morro Bay decides to build a WRF, and the CSD seeks other options, there still needs to be an agreement between the two parties that addresses the liability that Morro Bay has regarding the risks associated with raw sewage conveyed into the city limits from Cayucos. The need for a new JPA is long overdue.
Richard Sanduski was an employee for the Cayucos Sanitary District between February, 2002, and November, 2004. He is a mechanical engineer by profession and a certified wastewater collection operator.
Belted Kingfisher Image on Banner by Cleve Nash |
