By Neil Farrell

The issue of voting to raise Morro Bay’s water and sewer rates has paired an unlikely duo heading up an effort to defeat the rates proposed by the City.
Former Councilwoman Betty Winholtz and former Mayor Janice Peters are teaming up to urge residents and property owners to vote “No” on the Proposition 218 vote set for May 26, listing several concerns about the way the new rates are structured.
An email sent to The Bay News Monday reads, “You have the right as a property owner or ratepayer to protest the extravagant add-ons to the proposed water rate and illegal sewer rate increases.” It goes on to explain the way the vote will be held and the consequence of defeating the rate increase, “51% of property owners/ratepayers must protest to stop the increases. If you own more than one parcel, submit a protest for each parcel.”
If a majority of properties — owners or renters — turns in a “No” vote, “This let’s the City make a less burdensome proposal,” they said.
To vote in favor of the rate hike, residents simply have to do nothing and their properties will be counted as a “Yes,” so-called “protest voting.”
The City is proposing the rate increases for several reasons, the most oft quoted is that the water rates haven’t been raised in some 20 years; the City has been using water fund reserves to cover the costs of its operations — both within the water department and at City Hall — for many years now; a shortfall in required reserves for the State Water Project; and the need to spend millions on needed infrastructure repairs and upgrades.
In a rate study by consultants, Bartle Wells, the City is expected to borrow several million dollars over the next few years for major projects, but the report doesn’t spell out those projects or their individual costs.
“Acquired debt,” reads the Winholtz-Peters’ call to arms, “to build two water tanks — one nine times the current size — as water use decreases and population declines. This loan is simultaneous with a State Revolving Loan to pay for the sewer plant. We are being asked to finance 2 loans at once!” And, “Put in water smart meters at a cost of $600,000 — neither necessary nor cost efficient.”
Other issues revolve around the rate schedule’s “add-on” costs — increased costs for when the City turns on the desal plant; and another increase is proposed should the City have to ramp up its drought declarations to a level 4 or 5, meaning rate payers would have to pay more for less water in order to continue to cover the costs of the water department. “With our reservoirs not refilling, it is likely the level will increase and for years,” the notice reads.
As for the sewer, with the recent pullout of the Cayucos Sanitary District from the new treatment plant project, uncertainty over the proposed rates is another issue of concern. “Cayucos has withdrawn its participation on short notice, so the impact to Morro Bay is unknown. A 218 vote must outline costs. This vote should be postponed.
“The City states the new sewer plant will cost $75 million; that’s up $40 million from $35 million only 5 years ago. Why? No cost documentation is shown. No cost comparison to build/operate between the current type and a PERC-type plant is shown. The PERC-type was estimated at $21M 5 years ago.”
(PERC Water was a company that came to town proposing to build a plant at the former project site on Atascadero Road but was turned away by the City at the time, because it was not asked to submit a proposal nor had the company bid for the job.)
The Bartle Wells report set rates on the assumptions that Cayucos would pay about 30% of the costs, and assumed a State loan at 3% a year for 30 years, for a total payout of some $118 million. That did not include an estimated $28 million for a wastewater recycling system.
Should any ratepayers in town wish to protest the rate hike, they must do so in writing, no emails, texts or faxes will be counted. Each vote must identify the property either by address or County Assessor’s parcel number, the name of the person voting, and be received at City Hall before the deadline. An official vote takes place during the City Council meeting and votes can be turned at that meeting, set for 6 p.m. Tuesday, May 26 at the Vet’s Hall, 209 Surf St.