Council, Mayor remain at odds over consolidation

At the conclusion of the Monday, June 2 session of Town Council, council members moved to approve and then signed an operating agreement with PUD (Public Utilities District) at the end of a rather contentious meeting that had begun over four and a half hours prior. Council’s motion to approve cited changes to paragraph 1.1 of the operating agreement, which, according to the meeting packet, reads, “This agreement is effective June 2, 2025 (“Effective Date”) through June 1, 2026 (“Term”). The PUD’s operation of the Town System under this agreement commences July 7, 2025 (“Operations Date”). The parties may mutually agree to adjust the operations date to ensure efficient implementation of this agreement. Any change to the operations date will be processed as an amendment, consistent with Section 9.4 of this agreement.” One change to the agreement, which was voted upon by Council, was to move back the operations date from July 7 to August 7, 2025.

In an email to The Wahkiakum County Eagle the following day (June 3), Mayor David Olson stated, “The Council purportedly approved the operating agreement last evening, but the agreement is opposed by and remains unsigned by the Mayor, nor will I approve any agreement that hands over $10 million in Town assets without compensation and strips the Town of essential resources necessary to maintain a public works department and operate critical public services including parks, the library, the pool, the fire department, etc.”

On Thursday, June 5, council members and Town Clerk/Treasurer Sarah Clark engaged in a three hour workshop to discuss the budget. During the May 19 session of town Council, Clark noted the union "needs to know which union positions will be eliminated and/or any benefits or wages will be adjusted before they can be given a 60-day notice.” Following the three-hour discussion June 5, another workshop was scheduled for Thursday, June 12 at 11 a.m.

With the multiple-hour-lasting discussions piling up not only during Town Council itself but weekly special council meetings, The Wahkiakum County Eagle engaged both Council and Mayor Olson regarding the PUD consolidation. Noting the agreement, which was signed unanimously by PUD commissioners on Tuesday, June 3, Councilmember Laurel Waller stated, “The operating agreement does not address any of the services provided by the Town of Cathlamet other than the water and waste-water (sewer) systems. The document is an interlocal agreement between the Town and PUD for use while the PUD provides utility services - beginning Aug. 7 - to the Town water and sewer customers prior to the asset transfer completion which is currently scheduled for Jan. 2, 2026.” Citing the June 5 budget session, which focused specifically on the budget without Town utilities, Waller stated, “The clerk/treasurer has been working toward this for some time while simultaneously managing her normal duties. This transition is a huge change. The council will need to pay close attention to both expenses and income while searching for how to create a budget to stabilize the town after such a large change. I, personally, am holding my focus on the ability to cut back expenses while simultaneously maintaining all remaining services. I'm totally for pursuing future income opportunities, but feel the focus right now has to be creating the budget that allows us to stabilize and operate.”

Citing the process “began more than six years ago,” Councilmember Robert Stowe also noted PUD came to the Town of Cathlamet (TOC) with a consolidation proposal, “essentially combining the PUD with the TOC’s water treatment plant,” and, after agreeing to cooperate, TOC “basically ignored the PUD” and the proposal went nowhere.

“Two years ago, the PUD had another opportunity to do a study of what it would take to do another consolidation study; this time, including the TOC wastewater treatment plant as well as the water treatment plant,” stated Stowe. “The PUD justified its proposal citing concerns, not unreasonably, as a major customer over the reliability of the TOC to continue to provide water and wastewater services. The PUD came to Council with the proposal, and not only did the Council agree to cooperate, the administration - i.e. the Mayor - also agreed to cooperate.” Stowe went on to say Mayor Olson and Town Attorney Fred Johnson “warned the Council to not discuss this matter with anyone, due to potential liability to the TOC, and yet, almost immediately, the Mayor began a negative campaign, citing rising rates, bad-mouthing council members to public entities and telling the public that ‘only the Mayor speaks for the Town, no one else’... The Mayor has fought this consolidation proposal from its inception, giving no reasonable objection.”

Continuing his argument, Stowe said, “What the Mayor doesn’t mention is that the TOC is going to have several large and expensive repair bills coming due in the near future. What the Mayor won’t admit is that if the consolidation does not go through, the Town will be stuck trying to get funding, either through matching grants - which the state has already said will probably not happen - or otherwise high-interest loans. What the Mayor chooses to ignore is that the rates may go up with the PUD, but will certainly go up if the TOC retains these systems. The PUD has proven reliable in responding to customer requests, problems and needed infrastructure. There are qualified personnel working for the PUD that can, and will, try very hard to keep expenses down. The PUD has a proven track record of doing maintenance, keeping up and replacing infrastructure and holding down costs. The PUD cannot, by law, make a profit.”

Defending his refusal to sign the agreement, Mayor Olson stated, “Whether the Town Council, a body with no executive authority under Washington law, can legally move forward with such an agreement - absent approval by the Mayor and Town administration - remains an open question. I have referred this matter to the Washington State Attorney General's office, including the question of whether the entire transaction may be an illegal gift of public funds and assets by the Town to the PUD, prohibited by Washington law. In the meantime, the Council appears to be relying on the false premise - advanced by the PUD - that the assets have already been paid for by ratepayers and need not be paid for twice. This is as absurd as the PUD demanding county or port property or assets without compensation on the grounds that the assets have already been paid for by taxpayers. Of course, this is not true and has never been true. All government assets - including the Town's - are paid for by the public, be it taxpayers or ratepayers. Like any government, the Town is entitled to seek fair compensation on behalf of the citizens we serve. To assert that the Town must nevertheless hand over assets for nothing is a betrayal of the interests of Cathlamet citizens and, in essence, denies that the Town or any government can legally hold any property or assets it already owns.”

Claiming the Mayor “does not have the authority to do so” with respect to his refusal to sign the agreement, Stowe stated, “Rather than carrying out the TOC Council policies, the Mayor has been ignoring the Council and attempting to set his own policy… The Mayor is the administrative officer of the Town in charge of carrying out the policies set by the Town Council and of seeing that local laws are enforced…The Mayor shall preside at meetings of the Council, and be recognized as the head of the city or town for all ceremonial purposes.”

Concluding his argument, Mayor Olson stated, “I continue to believe the action taken by the Council in connection with utility consolidation is contrary to the public interest, Washington law and, in particular, the oath each Town elected official took to faithfully serve the needs and interests of the citizens of Cathlamet, not the PUD; yet, it is the interests of the PUD, not the interests of the citizens of the Town, that continue to dominate Council deliberations.”

Describing the Council’s May 5 decision to “approve the Town of Cathlamet and Public Utility District No. 1 of Wahkiakum County Water and Wastewater System Asset Transfer and Improvement Agreement” and the current budget and program cutbacks currently as, collectively, “the single most irresponsible, unjustified set of municipal decisions he has witnessed in 40 plus years of serving local governments, Olson stated, “It is not clear how, or if, the Town can move forward to provide services to the citizens of Cathlamet and the broader community with the minimal resources remaining after the utility assets are stripped away.” Concluding his argument, Olson stated, “Despite the unjustified and damaging actions of the Council, I will continue, as Mayor, to work with what remains of Town staff to carry out lawful Council policy, spend budgeted funds wisely, and provide effective and transparent ongoing oversight of Town administration in all principal areas of Town responsibility…Town Council actions with respect to utility consolidation are awful, not lawful.”

Concluding his own argument, Stowe stated, “While timing is still being finalized, the TOC Council stands firm that this action will benefit the TOC both financially and by relieving the town taxpayers of probable crushing rate hikes to pay for maintenance not completed over more than a decade.”

With each side stating its case for what it feels will be best for the community, the outlook of a decision in which all parties walk away happy seems highly unlikely.

The Thursday, June 12 budget workshop will take place at 11 a.m. inside Town Hall on 25 Broadway St.