LOCSD Candidate's Forum 2016 Sewer Reference

Thursday night at the only LOCSD candidate's forum of this election season, a former director is running to be on the board again. While introducing herself, she reiterated her unsubstantiated LOCSD bankruptcy story—that it was not at all her fault. It is unclear as to why she even went to this topic, as maybe five people read this blog where I write about it. This is the only place that I know where this is even being mentioned these days, so is this opinion more widely held than I thought, that she needed to defend her version at the forum? I do post comments on the Tribune though......Have a look at the Nick Wilson article about the forum:
http://www.sanluisobispo.com/news/politics-government/election/article109796382.html

Well, anyway, time to move ahead with eyes firmly on the rearview mirror. Julie Tacker appears to want us to follow that unsettling path toward dissolution and we need to watch what she is up to. We have been down this gritty road before, I was there, so I know how hard attempting dissolution can be. We were not successful, despite the many weeks of work and lots and lots of money. Ms. Tacker is sowing the seeds for another attempt however, and it is yet another means of wrenching apart the community just as it was coming together after the 30-year sewer war. She wants dissolution to be on the next ballot. That is just SO WRONG.

Ms. Tacker came on the scene in 2002 and was one of the founders to initiated a campaign to reject the sewer project that we had then, which included filing lawsuits and appeals to state commissions and boards. She managed to get herself elected to the LOCSD in 2004 (she ran in 2002 and didn't win). Below is an image off of the "Concerned Citizens of Los Osos" website. She says she stepped down from being its President when elected. 

What she didn't step down from was the path to bankruptcy. I will post a chart below that shows how the cost for a sewer was upped year after year due to legitimate claims and then obstruction. The chart ends at mid-2005, before the recall election and the illegal Measure B. Note CCLO, Ms. Tacker's cause on the chart.

(Click on the image to increase the size.)

What happened to change public opinion was the slow dripping of anti-sewer opinions, each by itself meaning nothing, but over time, the tiny drips worked up to a concretion of resistance that froze the Mid-Town project in 2005. The bankruptcy soon followed. This dissolution idea has now begun its own drip. Do we sit here and watch it or do we stop it? This forum and the reporting of it is the first time the idea has landed in a very visible place: it only had a mention at a LOCSD meeting, and on Facebook, and that online crackpot rag, CalCoastNews. It has now has the legitimacy of The Tribune.

Ms. Tacker, the hypocrisy of running for a seat on a board that you wish to destroy is pretty amazing. It is getting a seat on that same board you nearly demolished in 2006. I guess if it wasn't killed off the first time, you try again, is that it? I can't help but think you have motives to do this beyond your claim of "saving money." That didn't work so well the last time, did it?

Julie's Revisionist History......Again.

I am stepping into the sewer on my sewer blog to correct the misstatements of a certain retread political candidate for the LOCSD. Once again Julie Tacker is making, no, faking history to put herself in a more favorable light. This image is off her campaign Facebook page - click to see a larger image and to read the text:

Misstatement #1 - "...which District 2 County Supervisor wouldn't move the sewer in 2003 when the permits were before them?"

Nooooo. That is NOT what was before them. YOU, Ms. Tacker, were before them—on the topic of the Coastal Development Permit; you were stating that the EIR was faulty. There was no "moving the sewer" mentioned. If "moving it" was the intent, it would take an incredible amount of work to do so, actually YEARS of work, not just a meeting in front of the Board. Never mind the additional cost.

Here is a copy-and-paste right off of the minutes of the October 21, 2003 Board of Supervisor's meeting (and BTW, the EIR was certified on March 1, 2001, so as the objections and lawsuits mounted, we can already see how this was upping the cost of the project: 2001 - $81.6 million; 2003 - $93 million):

This is the time set for hearing to consider an appeal by Julie Tacker for Concerned Citizens of Los Osos and Al Barrow for Citizens for Affordable and Safe Environment of the Planning Commission’s approval of the Planning Commission’s approval of the Los Osos wastewater project, a request by the Los Osos Community Services District to construct and operate a community wastewater project to include a collection system, treatment facility plant, effluent disposal system, harvest well system and all related infrastructure, located in the community of Los Osos; 2nd District. 

Ms. Nancy Orton: Project Manager for the County, presents the staff report; outlines the location of the project; addresses the issues of the appeal; comments on drawings of the proposed sewer site; corrects Conditions #73 and #74, the beginning of the paragraph, to read: “Prior to Approving Sewer Hookups for New Construction.”; recommends adoption of the resolution upholding the Planning Commission’s recommendation and deny both appeals.

Ms. Julie Tacker: Appellant (Concerned Citizens of Los Osos), states she is representing 108 concerned citizens; believes the EIR is not complete for the proposal before the Board; urges the Board to delay or deny this request until this EIR has been completed; gives a video tape presentation of her appeal which outlines her concerns to the Tri-W site; no study being done on the impacts to the downtown businesses; concerns regarding sludge, septage, water, hydrology, drainage, ESHA (Environmentally Sensitive Habitat Areas), SSMP (Septic System Management Plan), economics, assessment and the conditions of approval.

Chairperson Ryan: speaks to his history with the project and in support of the LOCSD. Matter is fully discussed and thereafter, on motion of Supervisor Bianchi, secondedby Supervisor Pinard and on the following roll call vote: 

AYES: Supervisors Bianchi, Pinard, Achadjian, Chairperson Ryan  

NOES: None

ABSENT: Supervisor Ovitt 

the Board denies both appeals, Conditions #73 and #74 are amended to change the first sentence to read: “Prior to Approving Sewer Hookups for New Construction.” and RESOLUTION NO. 2003-366, resolution affirming the decision of the Planning Commission and conditionally approving the application of Los Osos Community Services District for Development Plan/Coastal Development Permit D020283D, adopted as amended.

EVERY ONE PRESENT VOTED AGAINST YOU! You are picking on Bianchi because she called it like it is: "If I lived in Los Osos, I would vote for almost anyone but Julie Tacker. She was, is, and probably always will be, a political disaster." (I'm sure she is tough enough to take the taunts from a, pardon the expression, lightweight like you.)

Misstatement #2 - "...had Bianchi and that board voted to deny the Tri-W  permits the sewer would have been out of town, contracts wouldn't have been let and a nasty bankruptcy wouldn't have ensued."

Well, let's just pick that one apart! You readers all know by now that Measure B, which stopped the sewer until it was proven in court to be invalid, was won by a slender 19 votes in 2005. What evidence was there to show there were enough votes to pass it in 2003 (not that it had been even DRAFTED then), and how else would the "community will" to move it be demonstrated if not by a vote? Look how many years it took to get to the point of selecting a location with the County's project behind the cemetery? You just assumed some magic wand could provide the location, the EIR, and the permits I guess.

You know Julie, that your board wouldn't even ALLOW a 218 vote in 2005 which would have demonstrated the community's will, you were so afraid that it would not pass, and that the sewer would then continue at Tri-W. It was put to your board by the State Water Board and you refused to do it. Don't claim it was the cost of holding a vote - how do you think there would be ANY money for ANY sewer without a VOTE? A vote this time that would involve property owners ONLY - not a "Measure-B-anyone-can-vote" type of vote?

The contracts had to be let for the project that was going to be built - you know, that one with the $134 million dollar SRF loan tied to it that your board threw away. The Water Board was serious with their threats of fines in 2003. They were serious in 2005 as you finally found out. Remember those CDOs that we can thank YOU for?

(And remember the $20 million bonds sold in 2002 to buy the property, design the project, and to pay for the permits. Those were flipped off by your board too - but not flipped off of our tax bills - they are still right on there every year.)

Setting all of that aside, let's get right on to the bankruptcy. First point, you poked a stick in the eye of the Water Board for not ASKING PERMISSION to stop the project. That was in the contract for the SRF $134 million loan. That lack of understanding ensured that your board would NOT get anymore payments from the state. Then you all went right off budget in October as soon as you were in office by hiring a new attorney, and new general manager ($450,000/year)—while you were paying the old GM and the old attorney to do nothing—AND you paid $75,000 to get rid of the public information officer. But that is small potatoes when you hired another attorney for $1.5 million! 

Where did you think the money would come from to pay for all of that? Well, we know where you found it - you took our tax money that we had paid for our bond payments, forcing the bond reserves to be spent that were to have been the last payment. Naturally, the lender raised a big stink about that, and we are STILL paying that money back! Our fire tax money had been spent too, so the CSD reserves were spent to cover us to keep our fire service.

So where did our $450,000 water reserves go? MIA. That was never paid back.  It was written off by General Manager Kivley in 2015. No wonder you went after her with a vengeance - she knew what your board did!

Anyway, your rewriting of history is always rather amazing to read. Thanks for the opportunity to set the record straight—again.

Snowball Ride To Bankruptcy

I was doing some summer cleaning yesterday afternoon and came upon a copy of a letter I forgot that I had. It was from the State Water Resources Control Board to then Interim General Manager Dan Bleskey of the Los Osos Community Services District. It is dated October 18, 2005. It explains how the State Revolving Fund loan monies were being withheld. Go ahead, have a look - click on the image to see a larger size.

I suspect that unless you at least arrived here in Los Osos during the years 2004-2010, this letter may not mean much to you. But it you live in the water service area served by the LOCSD, have heard of an upcoming election for the LOCSD, and have read the above letter, you might wonder if there is more to this story, like say, a bankruptcy? 

If you live in the Prohibition Zone, you might have noticed that on your tax bill you are paying for two sewer fees. The smaller amount is for the sewer that did not happen in town because that sewer project was stopped, and the larger amount is for the sewer we did get, out of town, behind the cemetery. 

The two old directors and the three new directors to the LOCSD after the recall election, foolishly stopped work on the sewer project that was already under construction without the permission required that was part of the agreement, so **NO SURPRISE** the funds to pay for THAT sewer - were cut off! Financial mayhem ensued. It is very troubling that the two directors that were already on the LOCSD board BEFORE the recall election Julie Tacker and Lisa Schicker, did not understand the facts of the sewer construction contract for the SRF money which was keeping the LOCSD afloat. Every cent possible LOCSD cent was poured into sewer construction because the Regional Water Quality Control Board was after them to build the sewer - pronto. Foot dragging had gone on for too many years, this was the third attempt at remediating the sewage problems of Los Osos. When the SRF money vanished and the multiple lawsuits sprung to life, the LOCSD was doomed.

What happened after 2005 could fill a book, and in fact it did fill part of a book, Small Town, Perfect Storm by Barbara Wolcott.

As I uncover more interesting historical documents, I will post them.

Julie's Speculations: Tried in Truth Court, Fails (Miserably)

Julie Tacker wrote an opinion piece on CalCoastNews which, sadly for her, drops her credibility even lower due to many the misstatements and just plain untruths.

Let's go through them one by one:

Ogren likely chose to skip his stint as the LOCSD manager because in a sworn statement Buel admits Ogren directed Buel to back-date a contract that ultimately landed the district in court and was integral to the district ultimately filing for Chapter 9 bankruptcy.

Firstly, none of us has seen Mr. Ogren's resume. We must presume it was either a handout at the Wednesday meeting that you Julie must have attended, or you got it quickly through a public records request. OK, for this purpose of refutation, we believe that the LOCSD stint as IGM was not mentioned. You then make a wild assumption that this omission must be due to the back dating of a contract Ogren directed causing the bankruptcy!

NOT TRUE! Your board's stopping the project caused the bankruptcy! All the time, money and effort you and Lisa put in to trying to make the backdated contract a lawsuit was for absolutely NOTHING, it was and still is a non-issue! Spending money on speculative will-it-stick-on-the-wall issues like this is what caused the bankruptcy in Los Osos!

I won't even go into your silly speculations on a county official influencing a CSD director.

The only way to afford his exorbitant salary is to raise rates and/or sell Oceano’s most valuable asset – its water.

NOT TRUE! You really have no idea what monies he can save in crafting an actual budget, something so screwed up in Oceano, it hasn't managed a timely audit in years. For instance, the vacant accountant position will be his and the car allowance won't. Our new GM in Los Osos is still trying to unscramble the mess your board made of the money, so you are in NO position to opine on finances.

The OCSD last met in closed session on April 23rd and there was “no reportable action” taken. Somehow direction was given to legal counsel to negotiate and draft a contract.

Now Julie, you know how that works, remember the PZLDF contract with attorney Shaunna Sullivan that YOUR board wrote with no public knowledge at all, enraging even your supporters?

A tremendous amount of work went into finagling the formula in which to pay this kind of salary. How was this direction given by a majority of the board if there was no reportable action on the 23rd? The result smells of the all-to-often Brown Act violating practices that OCSD board members believe they are immune from. 

Yes, we in Los Osos would like to know how the reserves vanished under YOUR watch in 2006. Brown Act violations? Finagling? When did your board direct the GM to withdraw monies held in RESERVE for fire department and water department improvements because you had somehow spent those reserves AND had no funds left to pay the bond payment either! There is no public record on how or where that money went at all! Now that smells even to this day as we are still paying the money back! Your board did not have a clue as to the meaning of the word "transparency."

Ogren will likely be out of touch with its citizens.

Why? He certainly is very well acquainted with many Los Osos citizens in all income brackets.

 Los Osos Waste Water Project is mid-way through construction; already $10 million over budget and $15 to $20 million in lawsuits and claims for damages are lining up.

NOT TRUE! The project is NOT over budget, the extra costs for the treatment plant are WITHIN the budget. The lawsuit is Paavo's fault? NOT TRUE. And you don't even consider the County's counter suit as having any validity in this? You just assume ARB is correct? 

In Oceano, Ogren’s work as public works director at the county has been unsuccessful at getting a Habitat Conservation Plan in place for the Arroyo Grande Creek.

NOT TRUE!  it is listed in the Special Districts Budget for 2013/14. Page 5 reads: "The 2013/14 budget was endorsed by the Flood Control Zone 3 Advisory Committee on March 21, 2013. Ongoing efforts include the Arroyo Grande Creek Habitat Conservation Plan (HCP)…"
http://www.slocounty.ca.gov/Assets/AD/2013-14+Special+Districts+Budget.pdf

Perhaps Ms. Tacker is not aware of how long these things actually take. The one for Los Osos was stopped in 2005 due to the recall board stopping the sewer project. Since the county took over and began actual sewer project work, our plan is finally in the works again and with years ahead of it too.

Ogren is as a former employee of the Wallace Group.

So.....? What does that have to do with anything?

It did not go unnoticed that the South San Luis Obispo County Sanitation District, under the leadership of John Wallace, failed to hold the county responsible for flood-waters rising and pouring off the county owned airport contributing to the cause of the massive sewage spill.

Oh, so Mr. Ogren worked for the Wallace group, and the Wallace Group didn't ding the County on the spill.....because Mr. Ogren once worked for them? No. You are off-the-wall conflating responsibilities and events in an untrue and illogical manner.
http://www.sanluisobispo.com/2012/09/07/2216530/south-county-sanitation-district.html

The spill was on December 19 and 20. However, the County had already gone for a permit from the Water Board, called an Emergency Coastal Development permit, issued December 16. They were working on the upcoming problem. It was bad news for everyone that the spill happened, but it wasn't the County's fault, so John Wallace did not hold them accountable for a reason.
http://documents.coastal.ca.gov/reports/2011/1/F6-1-2011.pdf

Ogren’s departure from the county is welcomed.

No, it isn't. You speak only for yourself and the weekly anti-County ranting crew.

His arrival in Oceano will likely bankrupt the community services district and he needs just four years to do it.

It took your board less than a year to do in Los Osos. I guess you don't want to speculate that even someone you despise could do a "better" job at bankrupting a community than you did! Pitiful, really.

Bankruptcy-Sewer News

Stopping that last sewer project had horrible financial impacts on the Los Osos CSD (bankruptcy) among other things of course. Last night at the CSD meeting, Mike Seitz, general legal counsel to the CSD, reported out of the Board's closed session that Judge Riblet had signed the order to dismiss the bankruptcy, but the case will remain open for the next two years to accommodate the creditors. Multiple checks have been written to those many creditors to date.

In other financial news from the CSD last night was the mid-year budget adjustment. Since the solid waste franchise was transferred to the County on December 31, 2013 for $2.8 million to help pay for the bankruptcy, the income from this asset was terminated, so much shifting of monies to cover the deficit was required. This financial loss was decried by a couple of speakers who were both major players in causing this bankruptcy to happen, necessitating the sale of the solid waste franchise (bake sales presumably having failed to make up the deficit in CSD funds to cover the bankruptcy costs). Of course there was no shame or any recognition of culpability at all in their demeanor or speeches and much mud was flung at innocent parties to distract viewers from the speaker's moral lapse.

A "just-like-old-times" footnote: There was rich dramedy as these speakers attempted to shout over the loud, repeating beeps of the three-minute timer signaling the end of their public comment period. It was a pretty rowdy meeting too from the noise makers at the back of the room. CSD President Craig Baltimore had to rightly request the chatter and shouts to cease at the back of the room multiple times and had to ask one loudmouth to leave.

Out With A Whisper

Today at the Board of Supervisors, the very, very last bit of the LOCSD's bankruptcy business was concluded and now all that remains is to make the payments to creditors. Off the agenda documents on the Consent Agenda:

1. The Chairman of the Board to execute the Assignment of the Solid Waste Collection Franchise Agreement between the County, the Los Osos Community Services District (LOCSD), Waste Connections, Inc. and Mission Country Disposal; and

2. The Auditor-Controller-Treasurer-Tax Collector (ACTT) to remit $2,800,000 from the County General Fund to the LOCSD for distribution among the LOCSD creditors; and

3. The ACTT to remit $772,029 from the Los Osos Wastewater Project Fund to the LOCSD for distribution among the LOCSD creditors.

There was one, lone public speaker, Marshall Ochylski. He thanked the BOS for their help on resolving of the seven year long bankruptcy. He certainly represented my thankfulness to them on getting that money and the thankfulness of my friends too. 

I congratulate Marshall on his success in this matter. As was mentioned at the last LOCSD meeting December 5, Marshall's many hours of legal work to get this done was all UNPAID. I truly and humbly thank him for those many, many hours. That the CSD could not have afforded to pay him was also mentioned at that meeting. I'm just glad that he had the time and the will to help out this community, which had no way to pay him.

Truly, the BOS authorizing the transfer of funds was our only hope for enough money to resolve the bankruptcy. Of course Marshall said nothing about the huge burden placed on the current board to finally get agreement and resolution to the mess that the "recall board" created in late 2005. That board, by their defiance of the State of California's rules and laws, not to mention the abandonment of common sense, resulted not only in the bankruptcy, but also in this expensive and lengthy standoff to the much needed work on repairing the damage to our only source of water, the one beneath our feet here in Los Osos. That damage to our aquifers has continued more or less unabated until our present wastewater project stepped in with the conservation funds to start the process of repairing the damage. That, and the product of the ISJ the Draft Basin Plan, with the physical steps needed to continue the repair work, will determine how well we will be able to live with what water we have left and if those vacant lot owners will ever get their investment back.

Bankruptcy Here and There

Need I repeat the sad tale of the LOCSD's bankruptcy again? Well, I won't. But the bankruptcy lives on, perhaps to FINALLY end with the conclusion of these two meetings…one can hope anyway…too optimistic maybe…

Goodbye solid waste franchise, it's been nice knowing you.

Los Osos CSD meeting

Thursday, December 5, 2013

6:00 PM

2. CLOSED SESSION

A. PENDING LITIGATION (Government Code §54956.9(a).)

Conference with Legal Counsel Regarding Existing Litigation (Formally initiated:

-In re Los Osos Community Services District (ND-06-10548) United States Bankruptcy Court,

Central District of California, Northern Division

http://www.losososcsd.org/Library/2013%20Agenda%20Packet/12052013/12.05.2013%20LOCSD%20Board%20Meeting%20Agenda.pdf

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Board of Supervisors meeting

Tuesday, December 10, 2013

9:00 AM

Consent Agenda - Public Works Items:

9. Submittal of a resolution authorizing and directing the actions necessary to satisfy the conditions to effectiveness of the amended bankruptcy in In re the Los Osos Community Services District. District 2

http://agenda.slocounty.ca.gov/agenda/sanluisobispo/Proposal.html;jsessionid=1A4C3927B46F3C0ACC446F568E0AB1E8?select=2784

World Toilet Day!

Darn, we missed it, it was yesterday! Well, check out the link here to see what it was about. Be sure to click through all the pictures as they are rather fun! You can go out apparently to celebrate, or you can celebrate at home!

However, it is very sobering to see what the lack of sanitation can cause. An excellent book on the topic is The Big Necessity The Unmentionable World of Human Waste And Why It Matters by Rose George. A fascinating read.

Los Osos is having its own daily toilet celebration I guess, seeing that the aim of the World Toilet Day was SANITATION! Our sewer project is moving along swiftly in the attempt to clean up the disgusting fact of, dare I say it? (sure, why not, it's my blog), peeing and pooping right on top of our water supply! Ugh. UGH. UGH!

A major side note to the cleaning up of things beyond water in Los Osos will occur Wednesday afternoon, November 20, 4:00 p.m. at the District Office on 9th Street. The BANKRUPTCY. This meeting is for the directors to vote on transferring the solid waste franchise to the County for $2.8 million. Read all about the meeting here.

This quote out of the staff report outlines a brief history:

As a result of the District's termination of the wastewater project being constructed under contract to the District, the creditors filed a series of claims and initiated legal action against the District.  As a result of those actions, the District declared Bankruptcy in August of 2006. The total amount of the creditor's claims at that time exceeded $46,500,000.

The bankruptcy was finally, finally approved on October 9, 2013 and this transfer is the last thing to be done to conclude these years of stress and I'd say torture even, imposed by a clueless, feckless board on its successors and our town. Fortunately for us, the final settlement amount was whittled down to  a mere $11,396,505.

For perspective, the entire operating budget of the District has been around $4.9 million yearly, but with the income from the Solid Waste Franchise gone, it will now be less. The periodic rate adjustments to our bills will no longer be determined by our LOCSD board, but by the County. The $151,000 in yearly franchise income, flushed down the toilet as it were. And that is the event on our agenda for the day after World Toilet Day. Get the facts here.

Sewer Related, That's For Sure

Today the CSD put out a press release with the FINAL results of the bankruptcy caused so many years ago by stopping the last sewer project. I'll put a copy up here in case you would like to read what it says.

Sad, sad, sad, so much wasted time, money and water (as we could not conserve nearly so much water without a sewer project to fund it.) Oh well.

Monterey Mechanical Appeals Los Osos Bankruptcy

The LOCSD's bankruptcy case isn't over yet. Monterey Mechanical has at the last minute appealed the judgement of the Federal Bankruptcy Court to the 9th District Court of Appeals, where to pull any information out of them down in Ventura, you need to bring your own portable copier to do it at the desk, or hire a service that does this for you.

We have a long wait. The briefing schedule will be determined in November or December and the hearing schedule determined in 2013.

"Did the Bankruptcy Court err in—" is repeated the seven times with the same questions as before (my paraphrasing, You can read the document in full here):

1. —overruling Monterey Mechanical's objection to the assertion that there was a fraudulent transfer of District assets to SLO County in violation of the bankruptcy code?

2. —accepting the CSD's appraisal of a property that might be more valuable to the creditor than stated (the mid-town or Tri-W property)?

3. —relying on Bruce Buel's testimony that the proceeds from the sale of District property would not be available to creditors?

4. —rejecting Monterey Mechanical's assertion of unfairness in the manner of repaying creditor's?

5. —rejecting Monterey Mechanical's statement that the bankruptcy plan was not proposed by the CSD in good faith because the Prohibition Zone is getting the benefit of property value enhancement and protection while paying nothing towards the debt, the County is being insulated from liability of the District's debts through confirmation of the plan rather than dissolution of the District which would pay the debt.

6. —confirming a plan that is not in the best interests of the creditors as the creditors would get 100 cents on the dollar through state law remedies if the bankruptcy plan was rejected.

7 —failing to decide many pivotal questions of state law thereby making the basis for its conclusion simply that this plan "was in the best interests of the creditors?"

Apparently this is not the last place they can go to appeal either. The CSD's coffers drain while Monterey Mechanical fiddles.