Wednesday, July 28, 2010

Restore, Baby, Restore!

TO: Paavo Ogren, Director of Public Works, SLO County, CA
DATE: 7/28/10

Hello Paavo,

Excellent news!

I found a huge hole in County Counsel's rationale for NOT using that 2005 "Surety Bond," that should now be cashed in by the County ASAP, so it can pay for the restoration of the Tri-W site, located in the middle of Los Osos.

In a 7/23/10 e-mail to me, County Counsel, Warren Jensen, wrote, "It is our understanding that work ceased in about September 2005 and that there were no "hazardous conditions" on the site within 60 days of cessation of work. Therefore, the bond does not provide coverage because the bond only guarantees performance of the underlying agreement, which has a time-limited requirement."

That's the hole, and it's a huge hole.

Here's why:

County Counsel's own words are, "a time-limited requirement," however, look how loose he is with his time-frame: "work ceased in about September 2005."

"About September 2005?"... in a "a time-limited requirement?"

It appears that County Counsel's rationale for not using that bond to immediately restore the Tri-W site, is deeply flawed because his time-line isn't even close to being tight enough.

The date on the Surety Bond is September 15, 2005. "Mass excavation" at the site began "the very next day." Worked ceased on September 28, 2005, the day after the successful recall election.

That means that there was eleven days of "mass excavation," at the Tri-W site, involving big earth-moving equipment, that left a nearly 11-acre dirt pit in the middle of Los Osos -- a pit, that was created during those 11 days of "mass excavation," and deemed so hazardous, that a chain link fence must encircle the deep, dangerous, "erosive" pit, that was created in the days BEFORE the "cessation of work."

I mean, have you been out to Los Osos in the last five years? There's a gigantic dirt pit in the middle of town, surrounded by a chain link fence.

That can now be restored, at no cost (including "reasonable attorney's fees") to the county, OR the citizens of Los Osos.

It seems like all you would have to do is recommend to the Board of Supervisors, that they, "elect to do the same" -- that is, what the 2005 post-recall board did not do after "60 days after cessation of work" -- restore the Tri-W site -- so, now, according to the bond, the county can "elect to do the same."

Excellent news, eh?!

As you are aware, the Coastal Commission made the restoration of the Tri-W site a condition of approval in their permit for the county's current Los Osos wastewater project.

So, look at this great opportunity you now have with that bond: Even before the county officially "adopts" the Los Osos project, your department could take the initiative NOW, and meet a BIG condition of approval in your permit, even before you are obligated to.

Also, think about how happy that would make the Coastal Commission -- that your department, with the approval of County Supervisors, actually took the initiative to restore the Tri-W site, even though the county wasn't yet technically forced to comply with that condition of approval, but because, as the Coastal Commission recognizes, it is the right thing to do for the citizens of Los Osos, SLO County, and California.

So, it looks like it'd just take a simple staff recommendation to the Board of Supervisors from your department to use that bond... now that we know that the "hazardous" conditions at the Tri-W site occurred "within 60 days of cessation of work," clearly.

I'm looking forward to your response.

As always, much thanks,
Ron

P.S. I've posted this e-mail on my blog:

sewerwatch.blogspot.com

###

[30 weeks down... 22 to go.]

Friday, July 23, 2010

Los Osos, Who's Your Quarter Million Dollar Daddy?
County's rationale for not cashing 2005 bond to pay for Tri-W site restoration: No bueno

[Note: I was going to hold off publishing this story until next week, in order to meet an "at least weekly" quota, but, considering its importance, and the fact that there's a Los Osos wasterwater project update scheduled at the Board of Supervisor's meeting on Tuesday, I'm just going to go ahead and publish it now.

However, I don't feel like re-setting everything. So, what's below is my response, today, to SLO County Counsel, Warren Jensen's response, also today, to my question at this link:

http://sewerwatch.blogspot.com/2010/07/using-existing-bond-to-restore-tri-w.html

In a nutshell, what this shows is that the county's rationale for not using a 2005 bond to pay for the restoration of the mid-town Tri-W site, is faulty. And, because the site's restoration is a "condition of approval" for the county's recently obtained coastal development permit for their Los Osos sewer project, if they were to cash in the bond today, it would save the county (and Los Osos rate payers) hundreds of thousands of dollars (at least) on the site's (mandated) restoration cost.]

TO: Warren Jensen, County Counsel, San Luis Obispo County
DATE: 7/23/10

Hello Warren,

Thank you very much for your response (reprinted below).

After reading it, I think you are going to find this response very interesting (and uplifting), because I think I may have found a way to restore the Tri-W site (and, therefore, meet a condition of approval for the county's LO sewer project development permit) at no cost to the county... including "attorney's fees."

In your response, you wrote:

"The specific obligation of the LOCSD, which is the obligation covered by the bond, is found in par. 4 of the agreement, which provides as follows:

4. Applicant shall complete all necessary site restoration required in order to eliminate hazardous conditions . . . within sixty (60) days of cessation of work at any of the three sites."

That may be the "specific obligation of the LOCSD," however, like I wrote to Paavo Ogren (and cc'd you) on 7/14/10, the bond also says, the CSD had "60 days" to do the restoration after "cessation of work," HOWEVER, "if the restoration work is not satisfactorily completed within the time set in paragraph 4, the county may elect to complete the same."

So, according to the bond, apparently, the county could have, and very, very importantly, still can "elect to complete the same."

It sure sounds like it WAS the "specific obligation of the LOCSD," for sixty days after they ripped up the Tri-W site, but after that, it also sure sounds like it's been in the county's court ever since, and the county simply hasn't "elected to do the same," for reasons I'm still not clear on.

For example, you wrote, "It is our understanding that work ceased in about September 2005 and that there were no "hazardous conditions" on the site within 60 days of cessation of work."

If that's your understanding, then, to be frank, the county is not understanding this situation accurately.

The 5-year-old time frame at work here is both quick, very specific, and extremely important.

You are correct when you say, "work ceased in about September 2005," however, to be much more specific, it ceased immediately following the successful recall election on September 27, 2005.

The date on the Surety Bond is September 15, 2005.

I recently asked former Los Osos CSD Director, Julie Tacker, "How soon did the District start the grading at the Tri-W site after the county secured that bond?"

She told me that the District began "mass excavation" the "very next day," September 16.

[And, here, I can only imagine, is where Julie Rodewald's stomach must turn like mine every time I get to this point in the story, now that I've nailed down that "mass excavation" date. After all, she, as the county's top election official, just recently informed me that, had it been her decision to set that 2005 recall election date, instead of the three board directors (board majority) that were being targeted for recall (that ultimately, on a 3-2 vote, set it at one of the latest possible dates, September 27), she would have set the election date on "September 13"... three days before the "mass excavation" at the "environmentally sensitive" Tri-W site would have even had a chance to begin... ouch... and, yes, bleh.]

So, anyway, back to my "uplifting" point...

The "mass excavation" started on September 16th.

You wrote, "(2) the hazardous condition must materialize as such within 60 days of cessation of work."

and;

"Therefore, the bond does not provide coverage because the bond only guarantees performance of the underlying agreement, which has a time-limited requirement."

Considering the tight time-line that I just laid out, your take there just simply doesn't fly... UNLESS it's the county's position that the Tri-W site, today, still isn't "erosive" or "hazardous," because, like I just showed, the condition of the Tri-W site today, is almost exactly like it was immediately following the recall election, after nearly two weeks of "mass excavation" before the "cessation of work" -- excavation that left a gigantic dirt pit in the middle of Los Osos for five years and counting.

The only thing that's changed at the site since the "mass excavation" that started on September 16, 2005, is the five years of "erosion" that's occurred at the once-"environmentally sensitive" site... considered so "hazardous" due to the "mass excavation," that a chain link fence must now permanently encircle the deep, dirt pit that was created as a result of the "mass excavation" that "materialized" nearly two weeks BEFORE the "cessation of work."

Now, that I've straightened out the time-line involved with the Surety Bond, for the county, and showed how the "mass excavation" -- that rendered the site "erosive," and hazardous" -- "materialized," well within the "60 day cessation of work" window, will the county now be using that bond to pay for the Tri-W site restoration -- a restoration that is a "condition of approval" for your recently obtain coastal development permit?

Or, no?

Thanks again,
Ron

P.S. According to the agreement, "As part of the obligation... there shall be included costs... including reasonable attorney's fees, incurred by County in successfully enforcing such obligation..."

When I say, "at no cost to the county," I mean, "at no cost to the county."

P.P.S. I hope to be publishing this story early next week, so if I could get a follow-up answer to my latest question, by Monday, I would very much appreciate it. Thanks!

- - -

And, here's Jensen's 7/23/10 (today) e-mail to me:

- - -

Mr. Crawford:

The site restoration bond and underlying agreement that it applies to are attached below.

The specific obligation of the LOCSD, which is the obligation covered by the bond, is found in par. 4 of the agreement, which provides as follows:

4. Applicant shall complete all necessary site restoration required in order to eliminate hazardous conditions . . . within sixty (60) days of cessation of work at any of the three sites.

There appear to be two conditions that are necessary under the agreement to trigger an LOCSD condition to perform site restoration, and corresponding obligations under the bond: (1) there must be a "hazardous condition" that needs corrective action, and (2) the hazardous condition must materialize as such within 60 days of cessation of work. It is our understanding that work ceased in about September 2005 and that there were no "hazardous conditions" on the site within 60 days of cessation of work. Therefore, the bond does not provide coverage because the bond only guarantees performance of the underlying agreement, which has a time-limited requirement. The subsequent degradation of the site is simply not covered by the agreement or the bond because of the wording of the agreement, which in turn defines the scope of the bond.

Warren R. Jensen | County Counsel | San Luis Obispo County

###

Wednesday, July 21, 2010

Cha-Friggin'-Ching! for Los Osos Project "Consultants"
Nice work, if you can manufacture it... for over a decade

While I'm still waiting for an excus... errrr.... answer from the county counsel's office on why they never cashed that 2005 bond that would have paid for the Tri-W site restoration...

... this is great!

Next Tuesday, the Board of Supervisors will be hearing an update on the Los Osos wastewater project.

On page 10, of the 10-page staff report, is the "Budget Status Report," where it lists all the "consultants" that have cashed checks off of the $7.5 million that the county has spent on their sewer development process, over the past 3-plus years.

Consultants like:

"Crawford, Multari and Clark" ($145,455)

and;

"Wallace Group" (nearly $400,00)

and;

"Cleath & Associates" (Almost $100,000)

Now watch this SewerWatch-ism... this is great!

Those three "consultants" also show up in a 10-year-old Los Osos CSD document -- the "Oswald Report," at this link:

http://www.swrcb.ca.gov/rwqcb3/water_issues/programs/los_osos/docs/master_docs/2000_01_31_ww_facilities_project.pdf

... and, as I first reported in my 2000 New Times cover story, Problems With the Solution, the Oswald Report outlines the Los Osos CSD's first proposed sewer project -- the so-called "better, cheaper, faster" ponding project that never worked, as predicted.

And, as I've been reporting forever, not only did the Oswald project (that ALL of those above-mentioned "consultants" were responsible for developing) not work (as predicted), but it was solely responsible for forming the Los Osos CSD in the first place, in 1998, AND solely responsible for killing the County's then-"ready to go" project.

In the January, 2000, Oswald Report, early LOCSD officials "thank," "Chris Clark of Multari, Clark, Crawford & Mohr for their advice on the environmental aspects of the project... Tim Cleath and Spenser Harris of Cleath and Associates for their hydrogeological expertise... We also wish to thank John Wallace, Assessment District Engineer..."

So, think about this -- it's great.

All of those "consultants" were responsible for tanking the county's "ready to go" project in 1999, with their dead-on-arrival "project," and, ever since then, have been cashing check after check after check DUE solely to the fact that they were able to kill the county's project in 1999, and there they all are... in next Tuesday's staff report.

According to official documents, all of those "consultants" (and others in the staff report, by the way) were around for the District's first project in 1999 -- the failed Oswald project -- the District's second "project," from 2000 - 2005 -- the failed Tri-W disaster -- and, now, due to State legislation that handed the project to the county (and to all of its connections to the two previous LOCSD projects) in 2007, those same "consultants" are still pulling FAT checks off of the Los Osos wastewater project after more than a decade -- checks that they wouldn't be pulling had they not had a role in tanking the county's "ready to go" project in 1999, to begin with.

Incidentally, the Los Osos CSD, from 1999 - 2005, threw over $24 million at "consultants" for their two failed projects.

###

[29 weeks down... 23 to go.]

Thursday, July 15, 2010

Using Existing Bond to Restore Tri-W Site: Not in County Counsel, Warren Jensen's Client's Best Interest

So, I found a copy of that "Site Restoration Bond" that I mentioned in my previous post, that SLO County officials required that the 2005 Los Osos CSD obtain prior to them grading the environmentally sensitive, mid-town Tri-W site, just days before the recall election -- an election that, fortunately, stopped the Tri-W disaster, permanently.

In it, it reads that the Los Osos CSD had "60 days" to do the restoration after "cessation of work," at the Tri-W site, HOWEVER, it goes on to state, "if the restoration work is not satisfactorily completed within the time set in paragraph 4, the county may elect to complete the same."

Yesterday, I asked, Paavo Ogren, SLO County Public Works Director, "Why hasn't the county cashed this bond in, and used it to restore the Tri-W site... long ago?"

and;

"What's stopping the county from starting the restoration work now, like, today?"

The reply came from County Counsel, Warren Jensen:

"Mr. Crawford,

Mr. Ogren asked our office to respond to your questions about the restoration bond because we have previously analyzed it and corresponded with others about it. I have some other pressing things I need to do right now, but I will respond to your questions later today."

Jensen never got back to me "later" that day.

All I can assume, is that it is taking them longer than they expected to come up with some legalese-y way to get out of using that bond -- because Jensen is sworn to protect the interests of his clients, and Supervisor Bruce Gibson's Parks Commissioner is one of Jensen's clients, and it is faaaarrrr from her best interests that the county use that restoration bond.

If the county were to cash in that bond, it would show that county officials were right in 2005 -- that the 2005 LOCSD was engaging in HIGHLY risky behavior by ripping up the environmentally sensitive Tri-W site just days before a recall election that could (and did) stop the entire project.

Additionally, according to sources, the contractor that was signed to build the Tri-W treatment facility, Monterey Mechanical, was the company that put up the quarter million dollars worth of collateral, in the form of equipment, to even land that bond in the first place.

And Supervisor Bruce Gibson's Parks Commissioner's name shows up all over the place in connection with pre-recall election campaign material, urging Los Osos voters to defeat the recall, and build the now-failed Tri-W disaster, and, documents show, she is also on a first-name basis with the Tri-W project contractors, which means that her friends at Monterey Mechanical, would immediately be a quarter million dollars light on equipment, if that bond is cashed in.

So, it looks like it's beginning to shape up as usual: The county needs to make up an excuse on why they are not going to restore Tri-W, using the cash from that bond, because cashing in that bond wouldn't be in Jensen's client's -- Supervisor Bruce Gibson's Parks Commissioner -- best interest.

When I get that excuse, I'll post it.

###

Tuesday, July 13, 2010

Former SLO County Public Works Director, Noel King, Apparently Brilliant

TO: Paavo Ogren, SLO County Public Works Director
DATE: 7/13/10

Hello Paavo,

I'm researching a story involving Los Osos, and I have a few questions regarding a "site restoration bond" that, apparently, the SLO County Public Works Department required the Los Osos CSD to obtain prior to the District's decision to begin construction at the environmentally sensitive Tri-W site in 2005.

Apparently, in August 2005, the county was saying to the LOCSD something like, "Look, if you're really going to start ripping up all of that ESHA, just one month before an election that could permanently stop that 'project,' then we're going to require that you have a contingency plan ready to fund the restoration of that environmentally sensitive habitat, in the event that the recall election is successful."

According to a May 10, 2006 letter from former LOCSD Director, Lisa Schicker, to the Construction Management Association of America, and reprinted on Ann Calhoun's excellent blog, at this link:

http://calhounscannon.blogspot.com/2006/05/whose-ethics-following-is-formal.html

"The mandatory San Luis Obispo County (SLO) grading permit required that the District obtain a site restoration bond prior to the commencement of any and all grading activities. SLO County Public Works required the bond due to the pending recall election and pending voter initiative that could have halted work at the treatment plant site. Because of the County’s bond requirement, the District Board authorized staff to obtain the required grading bond specifically from “Insco Dico”. However, when Insco Dico refused to issue the bond (due to MWH’s failure to disclose the project risks and significant environmental impacts), MWH colluded with Monterey Mechanical, the treatment plant contractor, to arrange an alternate bond that not only covered the restoration of portions of the treatment plant site but also the restoration of the pipeline contractor’s sites."

If I'm not mistaken, the Coastal Commission is now requiring the restoration of the Tri-W site (due to the unnecessary, and premature start of construction in 2005) as part of the County's recently obtained development permit for your project.

So, here are my questions:

- How does a "site restoration bond" work? Can your department now dust off that 2005 bond, and use it to fund the restoration of the environmentally sensitive Tri-W site?

- If so, does your department have a ballpark figure on how much that restoration work will cost?

- It appears that requiring that bond was very "heads-up" thinking by the SLO County Public Works Department in 2005. If you could give me a few sentences on that subject, I'd appreciate it (and I bet, former Public Works Director, Noel King, would appreciate it, as well. Wow, he was SO right.)

As always, much thanks,
Ron

P.S. When I write about how the 2005 LOCSD Board began construction on the failed-Tri-W sewer "project" just one month before a recall election that, eventually stopped that project in its tracks, I always like to point out that, according to State election law, the people that are facing a recall election, especially if they make up the board majority, get to schedule the date of their own recall election.

In 2005, after listening to overwhelming public input to schedule the recall election at the earliest possible date, the three LOCSD Directors (board majority) ignored all of that public input, and, instead, scheduled their own recall election at one of the latest possible dates, and that bought them the extra month they needed to needlessly begin destruction of the environmentally sensitive Tri-W site.

A few years back, for a story I was researching, I was on the phone with SLO County Clerk-Recorder, Julie Rodewald, and I asked her, if it had been her decision to make, would she have scheduled that recall election at one of the earliest possible dates, or one of the latest? She told me that she would have scheduled it at one of the earliest possible dates.

Which means, if California election law stated that a county's top election official is required to set a recall election date -- instead of those that are facing the recall -- the Tri-W site would have never been touched in 2005, and that "site restoration bond" would have never been needed.

I first exposed all of that -- in 2006 -- at this link:

http://sewerwatch.blogspot.com/2006/09/californias-recall-elections-code.html

A very, very interesting story, I must admit.

P.P.S. I've published this e-mail on my blog:

sewerwatch.blogspot.com

###

[28 weeks down... 24 to go.]

Friday, July 09, 2010

Government Funded "Community Surveys": Euphemism for "We're going to use your money to lie to you."

On her excellent blog (calhounscannon.blogspot.com), Los Osos writer, Ann Calhoun just published a piece showing how our local chapter of the Sierra Club recently ran some serious "smack" regarding SLO County Supervisors, and their handling of the Los Osos wastewater project.

One of the things Ann mentions is the "infamous community survey," that County officials threw a bunch of money at a couple of years back, and then skewed the wording of the questions in order to get the result they desired.

What I find funny about that "infamous" community survey, is that it was conducted by the same person -- Robyn Letters, of Opinion Studies -- that I contacted a few years back, where I first showed how the 2001 Los Osos CSD Board conducted their own expensive "survey," just before a critical Proposition 218 vote that was needed to fund the design of the failed Tri-W "project"/disaster.

As I exposed in my piece, to conduct their "survey," the District hired a marketing firm, and then had that firm phone hundreds of Los Osos property owners -- in a vote that included only property owners -- and then, flat-out lie to them about the proposed project... in an effort to get the Prop 218 vote passed.

Yep, in 2001, the Los Osos CSD used Los Osos taxpayers' money to hire a marketing firm, that then turned around and phoned those same taxpayers, and, lied to them... while being paid by them.

In other words, the 2001 LOCSD used public funds for campaign material (highly unscrupulous campaign material, I will add)... totally illegal, under state law.

In my story where I exposed all of that, Letters told me, "It appears that someone writing (those questions) had an agenda. It's obviously biased."

And that's where it gets funny.

Letters told me that the 2001 LOCSD "survey" was "obviously biased," and then, just two years after she told me that, SLO County officials hire her, and the "survey" she conducts is blasted as being "obviously biased."

See? Funny.

So, I suppose the lesson here is, never allow a government agency to conduct a "community survey," because, apparently, that's just a euphemism for "We're going to use your money to lie to you."

By the way, the 2001 Los Osos CSD "survey" scam worked, the Prop 218 vote passed, and that led to $25 million being wasted on the Tri-W embarrassment, and nine-years-and-counting of wastewater project delay.

###

[27 weeks down... 25 to go.]

Thursday, July 01, 2010

O.K., Let's Try This Again: The SLO County Grand Jury, Revisited

[NOTE: In January 2006, I asked the SLO County Grand Jury to investigate the circumstances (detailed below... again) that led to the siting of the mid-town Tri-W sewer plant in Los Osos. They responded by telling me that they "didn't have the time" to look into the matter. HAD they investigated my complaint in early 2006, the Tri-W project would have died then -- in 2006 -- for the exact same reasons why SLO County officials didn't even come close to choosing it as their preferred project... in 2010! It'll be interesting to see what the SLO County Grand Jury's excuse is this time.]

Dear SLO County Grand Jury,

Thank you for the opportunity to file this complaint against a local government agency.

If I were to bottom-line my complaint in one question, it's this:

Whatever happened to the so-called "Tri-W sewer project" that the Los Osos Community Services District (LOCSD) spent some seven years and $25 million developing from 1998 - 2005?

That "project" simply vanished, without a word -- AFTER $25 million of taxpayer money and 7 years was spent on it... it just went away.

Furthermore, that project simply vanished very recently, so, even though some of the facts in my complaint date back to 1998, the Statute of Limitations clock on my complaint, seemingly, just started ticking about a month ago, when the Tri-W project was finally, and officially, ruled out as an alternative by the California Coastal Commission. So this complaint, although some elements date back more than a decade, is as fresh as one month old.

So, what happened?

Why did the 1998 - 2005 Los Osos CSD spend some seven years and $25 million developing an "infeasible" (according to official SLO County documents) sewer project with a "mid-town" sewer plant, yet, that same project, in the end (which was just about a month ago), didn't even come close to working?

The unique aspect of this complaint, however, is that, after reporting on this story over the past 20 years with various publications, and then, later, on my blog, I already know the answer to my question.

What I am hoping to accomplish with this complaint, is to get the SLO Grand Jury (and therefore the people of Los Osos, SLO County, and California) to know the answer to my question, because the answer to my question is amazing.

And, because I have investigated this story since the 1990s, I can also save your Grand Jury a lot of time.

Here's how your investigation should proceed:

Start with a 2001 LOCSD document known as the "Statement of Overriding Considerations" (SOC).

I've made that document available for download at this link:

http://www.slocreek.com/Statement_override.pdf

That document is the smoking gun to why the 1998 - 2005 Los Osos CSD spent (read: wasted) $25 million and seven years on an "infeasible" project.

Here's why:

As I first reported in 2007, at this link:

http://sewerwatch.blogspot.com/2007/11/what-ought-to-be-law-part-ii-oh-wait.html

... California environmental law (CEQA) allows for a government agency to "override" the findings of an Environmental Impact Report for a public works project through a SOC, however, ALSO according to State Environmental law, the SOC must be "supported" by "substantial evidence in the record."

In their SOC, the 2001 LOCSD Board overrode the entire environmental review process for the Los Osos wastewater project -- a process that pointed to a project almost identical to the County's currently proposed project, that recently gained final approval by the California Coastal Commission -- using only two reasons.

In their SOC, the 2001 District Board writes:

    "An in-town site (Tri-W) was chosen over other locations because:

    - It results in the lowest cost for the collection system by centrally locating the treatment facility within the area served: and

    - It enables the treatment plant site to provide open space centrally located and accessible to the citizens of Los Osos;"

And that's it... the reasons stop there. Just those two are listed for why "an in-town site (Tri-W) was chosen over other locations."

And that's all it took to toss the entire 2000 - 2001 environmental review process for the Los Osos wastewater project out of the window, a process that showed that sites out of town and downwind of Los Osos were "environmentally preferred," and therefore the District was legally obligated, through CEQA, to choose one of those sites -- just like the County recently, and successfully, did -- unless, of course, they decided to pop out a SOC... which they promptly did.

The problem?

That SOC was fabricated, and what really strikes me about that 2001 SOC, is that not only is it fake, but it's over-the-top obvious that it is just made-up.

Neither one of those two reasons even comes close to holding a drop of water.

For example, the LOCSD writes, "It (the mid-town Tri-W site) results in the lowest cost for the collection system by centrally locating the treatment facility within the area served."

Not even close to being true.

According to numerous official SLO County documents, building a sewer plant in the middle of Los Osos ADDS tens of millions of dollars to the project.

In their 2007 "Pro/Con Analysis" of the various project alternatives for Los Osos, county officials write:

"(Tri-W's) downtown location (near library, church, community center) and the high density residential area require that the most expensive treatment technology, site improvements and odor controls be employed."

and;

"The (Tri-W sewer plant) has high construction costs..." ($55 million. The next highest treatment facility option is estimated at $19 million.)

and;

"(The Tri-W project has) higher costs overall"

See the obvious problem there?

The 2001 LOCSD overrode the entire environmental impact report for their wastewater project because they claimed that the Tri-W project would "result in the lowest cost... by centrally locating the treatment facility within the area served."

However, careful county analysis (six years later) shows the exact opposite to be true.

Which means, had the 2001 LOCSD not overrode their own EIR for no reason whatsoever, what SLO County officials just accomplished in 2010 -- a wastewater project with a sewer plant out of town -- would have happened starting in 2001.

To make matters much worse, here's what the 2007 Pro/Con Report also says about the Tri-W project:

    - "(Tri-W's) downtown location (near library, church, community center) and the high density residential area require that the most expensive treatment technology, site improvements and odor controls be employed."

    and;

    - "Very high land value and mitigation requirements"

    and;

    - Tri-W energy requirements: "Highest"

    and;

    - "Small acreage and location in downtown center of towns require most expensive treatment"

    and;

    - "Limited flexibility for future expansion, upgrades, or alternative energy"

    and;

    - "Source of community divisiveness"

    and;

    - "All sites are tributary to the Morro Bay National Estuary and pose a potential risk in the event of failure. Tri-W poses a higher risk..."

    and;

    - "NOTE: It was the unanimous opinion of the (National Water Research Institute) that an out of town site is better due to problematic issues with the downtown site."

    and;

    - "ESHA – sensitive dune habitat"

Gets worse.

According to the March 2009, "Los Osos Wastewater Project Community Advisory Survey," conducted by county officials, "Only (9-percent) of (Prohibition Zone) respondents chose the mid-town (Tri-W) location (as their preference for the treatment facility)."

... and worse:

In a June 2009 letter to the California Coastal Commission, the SLO County "Project team," states, "The Project team, given the clear social infeasibility issue associated with Mid Town (Tri-W project) and the infeasible status of the LOCSD disposal plan, believes that if either of those options are deemed by decision-makers to be the best solution for Los Osos, then serious consideration should be given by the Board (of Supervisors) to adopt a due diligence resolution and not pursue Project implementation."

... and worse:

I recently asked SLO County environmental specialist, and Los Osos wastewater project planner, Mark Hutchinson, to, today, put himself in the shoes of the people that were responsible for the $25 million Tri-W embarrassment.

He just laughed... out loud. That was his answer to that great question; laughing.

So, look at the amazing question that all of this presents:

Why did the 2001 Los Osos CSD fabricate a brief, 3-page document -- the SOC -- and then use it as the only rationale to lock in a wildly unpopular, "infeasible," laughably embarrassing mid-town sewer plant project that had "higher costs overall" than all other alternatives?

Like I wrote above, I also already know the answer to that amazing question.

The answer to that question dates back to 1998.

In 1998, the County of SLO actually had a wastewater project for Los Osos "ready to go," however, a small citizens group, known as the "Solution Group," objected to that project, calling it "ruinously expensive," so the Solution Group developed an alternative wastewater project, that they heavily marketed to the community throughout 1998 as "better, cheaper, faster" than the county's "ready to go" project.

The problem was, throughout 1998, every governmental agency involved in the matter was telling the Solution Group that their alternative project simply wasn't going to work in Los Osos.

However, that didn't stop the Solution Group from heavily marketing their project to the voters of Los Osos, and telling those voters that if they established a Community Services District in Los Osos in November of 1998, and voted in Solution Group members as the initial Board, the Solution Group-turned-LOCSD Board would kill the county's then-"ready to go" project, and implement their "better, cheaper, faster" project -- a project that proposed a series of "drop dead gorgeous" "odorless" ponds, on "50 -70 acres" as the project's treatment facility at (and here's the kicker) the mid-town Tri-W site.

The Solution Group also advertised their project at "a maximum monthly payment of $38.75."

Los Osos voters bit, and, in November 1998, more than 80-percent of the town's voters established the Los Osos CSD, and elected several Solution Group members to its initial Board.

In early 1999, that same Solution Group/CSD Board officially killed the county's "ready to go" project (that county officials had spent some four years developing and county taxpayers had spent some $6 million paying for), and began work on their "better, cheaper, faster" project.

Again, the problem?

Every single one of those government agencies that told the Solution Group, throughout 1998 (before the LOCSD election) that their project wasn't going to work, were 100-percent right.

After a nearly two-year (futile) pursuit, the Solution Group's "better, cheaper, faster" project failed, as predicted.

In the summer of 2000, I authored a New Times cover story, Problems With the Solution, that showed how the Solution Group's "better, cheaper, faster" project -- a project that was solely responsible for forming the Los Osos CSD in the first place AND killing the county's 1998 "ready to go" project -- was on the verge of failing. One month after my story was published, that project failed.

So, why did the 2001 LOCSD fabricate a Statement of Overriding Considerations, and then use it as the only rationale to lock in a wildly unpopular, "infeasible," laughably embarrassing mid-town sewer plant project that had "higher costs overall" than all other alternatives?

There's no other plausible answer: To cover-up the fact that the project that they heavily sold to voters as "better, cheaper, faster," with "a maximum monthly payment of $38.75," and was the ONLY reason the Los Osos CSD was formed in the first place, AND that killed the county's 1998 "ready to go" project, had failed.

Beginning in late 2000, the Solution Group-turned-LOCSD Board needed something to keep the treatment facility for their second proposed (and entirely different) sewer project at the exact same location as their first "better, cheaper, faster" failed project, and their fabricated (and therefore, illegal) SOC was that "something"... and it worked.

Gets worse.

As I first reported at this link:

http://sewerwatch.blogspot.com/2009/07/exclusive-sewerwatch-investigation-how.html

One of the co-founders of the Solution Group, Gary Karner's bio reads:
    (Gary Karner) "was in private practice with The SWA Group, Planners and Landscape Architects, with an international practice and eight offices nationally, as a Managing Principal and Senior Project Manager of the firm. He specialized in project management and risk management with SWA for 27 years and is currently retained by SWA to consult on risk management."


The other co-founder of the Solution Group, Karner's wife, Pandora Nash-Karner, was elected to the initial Los Osos CSD Board of Directors.

Almost immediately after she took office as the District's "vice-president," official LOCSD documents associated with the Solution Group's "better, cheaper, faster"/dead-on-arrival "project" (and, later, the District's vastly redesigned second project) began containing the words, "SWA Group."



Incidentally, the second reason given in the 2001 SOC for why "an in-town site (Tri-W) was chosen over other locations:"

- "It enables the treatment plant site to provide open space centrally located and accessible to the citizens of Los Osos"

... simply makes no sense whatsoever, obviously.

Think about it... the 2001 Los Osos CSD Board overrode the entire EIR, and added tens of millions of dollars to the project, just so the people of Los Osos could easily get to their mid-town sewer plant so they could "picnic" in it?

Huh?

In other words, there isn't a shred of "substantial evidence" anywhere "in the record" that supports the 2001 Los Osos CSD's Statement of Overriding Considerations, as required by State environmental law.

Another question that I'm hoping your Grand Jury can answer is:

"How did an EIR that was based solely on a clearly fake (and therefore, clearly illegal) SOC get certified in the first place?"

That question, I don't already know the answer to, and that illegal certification led to 10-years-and-counting of very, very expensive, and environmentally costly, delay.

Thank you for your time,
Ron Crawford

P.S. On your official complaint form, you state, "Be specific; include names..."

The people that were associated with the Solution Group AND the Los Osos CSD are:

Gary Karner: Solution Group co-founder, whose company's name began showing up on official Los Osos CSD documents, almost immediately after his "Solution Group" was responsible for forming the District in the first place.

Pandora Nash-Karner: Solution Group co-founder, and initial Los Osos CSD Board of Directors vice-president.

Gordon Hensley: Solution Group member / Former LOCSD Director, 1998 - 2005 (recalled from office in 2005)

Stan Gustafson: Solution Group member / Former LOCSD Director, 1998 - 2005 (recalled from office in 2005)

Bob Semonsen: Solution Group member / Former LOCSD Director

Frank Freiler: Solution Group member / Former LOCSD Director

People that were Los Osos CSD Directors between 1998 and 2005, with no (documentable, that I'm aware of) attachment to the Solution Group:

Richard LeGros: Recalled from office in 2005

Sylvia Smith: Elected to the initial Board of Directors in 1998

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[26 weeks down... 26 to go... halfway there... a-boo-friggin'-yeah!]