Cathlamet Mayor David Olson to hold press conference July 7

The battle between Cathlamet Mayor David Olson and the Town's council members over the PUD consolidation continues to heat up. In a June 23 letter addressed to "all Town employees and contractors," Mayor Olson stated, "Town employees are advised that, in consultation with the Town Attorney, the Mayor has determined that the purported transfer of Town utility assets and funds by the Town Council to the Wahkiakum Public Utility District (PUD) without compensation to the Town is contrary to Washington law, specifically the Accountancy Act, RCW (Revised Code of Washington) 43.09.210, which requires that property transferred from one public agency to another shall be paid for at its true and full value by the public entity receiving the same."

Olson stated the purported transfer of Town utility assets "is null and void without the signature of the Mayor," stating that he, as Mayor, "is charged by Washington law with executing Town contracts and agreements as chief executive of the Town." Olson noted Town Council, acting alone, "has no authority or standing under Washington law to execute a Town contract without the Mayor’s approval as chief executive of the Town."

Further in the letter, Olson directed that no employee or contractor of the Town of Cathlamet "take any action to process, sign, authorize, convey or in any way effectuate the transfer of any Town assets or funds to the PUD." Olson further stipulated no employee or contractor is authorized to "meet with any representative, employee or contractor of the PUD without prior written approval of the Mayor or Town Attorney," "deliver or convey security access, keys, codes or related information regarding Town utilities or physical assets to the PUD, nor to convey funds, utility customer account data, meter information, or related information or materials in any form to the PUD or to any PUD representative or contractor without prior written approval of the Mayor or Town Attorney," or "communicate with the PUD by any means, including email, telephone, text or any other electronic media or in-person meetings without prior authorization of the Mayor or the Town Attorney." Olson's letter was met with a questioning tone, specifically from PUD Board Member Robert Jungers, who described the Mayor's actions as "open malfeasance and an incitement to insubordination as well as violation of Public Information law."

When approached for comment, Councilmember Laurel Waller, in response to the Mayor's letter, cited RCW 39.33.010, which states, "The state or any municipality, or any political subdivision thereof, may sell, transfer, exchange, lease or otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to the state or any municipality or any political subdivision thereof, or the federal government, or a federally recognized Indian tribe, on such terms and conditions as may be mutually agreed upon by the proper authorities of the state and/or the subdivisions concerned. In addition, the state, or any municipality or any political subdivision thereof, may sell, transfer, exchange, lease, or otherwise dispose of personal property, except weapons, to a foreign entity."

Referring to the asset transfer agreement itself, Waller noted the document "has now been worked on during several negotiation meetings between Fred Johnson (Town Attorney) and Tim Hanigan (PUD) lawyers." Waller stated she has "asked the council to review the document prior to next week's council meeting" and, if any changes are required, "they should be addressed prior to the meeting so that we are all looking at the same document" during the meeting. "After review and discussion, we will determine whether the document is ready for passage," said Waller. "If so, we will move to pass the asset transfer agreement. If not, we will continue negotiations perhaps with additional help from others. The council has already set money aside for professional service help, if needed, during negotiations."

Weighing in on the issue as well, Councilmember Crystal Baker said, "The Mayor wants PUD to pay the town for the utilities. The legally challenging thing about it is, if we were to receive a payment we could only use that money on utilities that we would no longer have, so it would be money locked from use." Challenging Olson's actions, Baker said, "At no point in all of this did the Mayor ask us, or inform us, of what he was doing or what his intentions were. I'm fine with anyone having concerns and wanting to reach out to other more knowledgeable people for input… What I am not okay with is doing things in a secretive manner. If he mentioned it in one of our meetings, I do not recall it." Baker went on to describe the Mayor's actions only a couple of months out from operations being switched over to PUD as "irresponsible," noting he could have done it "anytime in the last six months without it stopping any progress." Describing Olson's expectations from the PUD as "unrealistic," Baker said, "The PUD is not the cash cow to float the Town. We need to clean up our budget and balance our books."

Following its meeting on Tuesday, July 1, Wahkiakum PUD released a position statement, which reads, "Wahkiakum PUD has been working in good faith with the Town Council and staff toward a utility transfer that we believe serves the long-term interests of our shared community. We have proceeded with the support of both the Town Council and the PUD Commission. The PUD remains committed to the transition and are continuing preparations to assume operations on August 7, as outlined in the approved operating agreement. Our Commission has not given any direction to change course. The PUD views this transfer as a positive step toward long-term sustainability and improved service for utility customers. Prolonged disagreement would only divert resources and energy better spent on serving our ratepayers. Our focus remains on delivering reliable, sustainable utility services to the residents of Wahkiakum County."

The operating agreement was signed by council members during the June 2 session of Town Council and by the PUD during its session the following day. The agreement was originally approved by Town Council during the May 5 session. In a May 28 letter addressed to Attorney General of Washington Nick Brown, Olson stated, "It appears to me the agreement is void under Washington law due to violating the state Accountancy Act and other relevant legal prohibitions against handing over Town assets without compensation and prohibiting a gift of public funds/assets." Olson cited subsection 3 of the Accountancy Act (RCW 43.09.210), which states, "All service rendered by, or property transferred from, one department, public improvement, undertaking, institution, or public service industry to another, shall be paid for at its true and full value by the department, public improvement, undertaking, institution, or public service industry receiving the same, and no department, public improvement, undertaking, institution, or public service industry shall benefit in any financial manner whatever by an appropriation or fund made for the support of another."

In response to Olson's letter, Assistant Attorney General Alex Straub stated, “Our office is authorized by law to provide advice only to state agencies and certain state officials. We are not authorized to provide advice to mayors or councils of cities and towns." Straub, noting the information he was providing is "of a general nature and should not be construed as an official opinion of this office or of the Attorney General," recommended Olson contact the county's prosecuting attorney for possible assistance or "consider contacting an attorney to address this issue."

Considering Olson's supplication to the State Attorney General, Baker said, "I'm okay asking those in higher places if this is all legal. I'm not okay with doing it behind our backs and ignoring what the council votes on. He is not entitled to veto or vote on any of this. He is there as the face of the Town and following the direction of the Town. His actions cause trust issues. There is a lack of effective communication from the Mayor to the Council."

In a letter to The Wahkiakum County Eagle, former Cathlamet Mayor George Wehrfritz, who served from 2010 to 2013, noted times during his term when "the Town asked the PUD to consider taking on - for a fee - the Town’s meter reading and utility billing to reduce redundancies in a win-win manner." Elaborating, Wehrfritz said, "Such an arrangement would have cut the number of taxpayer-funded employees walking the streets to read meters every month by 50 percent and reduced the number of utility bills in-town customers received from two to one. In my book, that’s cost saving 101, yet the PUD was uninterested. In late 2012, the Town asked the PUD to accept voluntary arbitration to renegotiate aspects of a one-sided water supply contract. Again, no go."

Summarizing his argument, Wehrfritz stated, "The Town was trying to work with the PUD to improve efficiency and control utility rates, yet the PUD focused instead on sustaining a one-sided water supply deal with the eventual aim of taking the Town’s water system and, to this day, the most efficient option for the combined system is never discussed. It is for the Town to take over the Puget Island water supply lines and – having cut out the PUD middleman – lower water rates system wide while vastly improving the unified water utility’s profitability."

Predicting PUD consolidation will result in utility rates rising, Town services withering, the library suffering massive budget cuts, the parks falling into disrepair, Cathlamet Fire Department facing absorption by a fire district, and the Town of Cathlamet facing insolvency/disincorporation as a municipal entity, Werhfritz stated, "As mayor during the last economic recession, I spent considerable time looking at long-term risks. Today, I wonder whether the current Town Council’s longest serving members have done the same or, as I suspect, clung to pet issues (lower sewer rates, unionization) and, through their protracted inattention, landed the Town of Cathlamet in harm’s way."

In an email to The Eagle, Olson stated, "I would be violating my fiduciary duty and oath of office if I did not make certain this critical legal issue was satisfactorily addressed on behalf of the citizens of the Town who elected me, and who ultimately own the assets to be transferred. The last two Mayors of Cathlamet - Mayor Jacobson and Mayor Wehrfritz - are fully in agreement with me on this point, with Mayor Jacobson advising me, 'Stick to your guns.'"

Perhaps following former Mayor Jacobson's advice, Olson has announced a press conference/public forum, which will take place at Town Hall Monday, July 6, at 5 p.m., one hour prior to the 6 p.m. scheduled meeting of the Town Council. During the forum, Olson will "discuss his action and the steps forward."