What Morro Bay Candidates Think About Key Issues

by Jack McCurdy

Four of the candidates seeking election to the Morro Bay City Council at the June 8 primary are in general agreement on one thing: a 2010-11 budget that may take drastic measures to balance is the most pressing problem facing the city. And they all would support some kind of cuts to cope with an expected shortfall of about $500,000 in revenues.

But the four mayoral candidates--Neil Farrell, Rick Grantham and Betty Winholtz and Jack Smith for a Council seat--have widely varying views on priority changes that are needed to improve Morro Bay as a community, including:

--"Beautification" of the downtown area. (Farrell)
--Ensure sufficient revenues to maintain services at an acceptable level during this recession. (Grantham)
--Protect its small town charm, encourage retail growth and boost the emerging eco-tourism market. (Smith)
--More quality bike lanes and walking paths, road repaving, and a community swimming pool. (Winholtz)

And on the costliest capital project ever to face the city--what kind of wastewater treatment plant upgrade to build by a pending deadline--three of the four support examining alternative approaches that could cost less and produce a more productive and effective facility, while Grantham indicated he would not at this time. Here is how they stated their views:

--"I would have listened to a presentation of alternatives by a third party to get an objective overview with pros and cons on each technology." (Farrell)
--"Changing course at this time could result in costly delays and penalties," although "I continue to be open to other options." (Grantham)
--"I definitely favor reconsideration of the (current upgrade) plan. This is too important of a project both financially and environmentally to not take a closer look." (Smith)
--"I disagreed with the Council and (Joint Powers Agreement) Board majority to not allow a public presentation for residents of a possible alternative that had not previously been presented, as an example of potentially cheaper and more technically advanced options." (Winholtz)

When they were asked for their "assessment of the condition of the city's sewer system and what measures would you propose to address any deficiencies," all agreed that the sewers are very old and in very poor condition. But none seemed to recognize the seriousness of the deteriorated condition the system is in, which some residents believe is the case, and none mentioned the possible need for any kind of comprehensive plan to replace the entire system, as has been discussed by Councils and the staff in the past.

To deal with the pending budget deficit, Farrell would freeze salaries and benefits of city staff. Grantham would cut spending by five per cent, but also said "we may need to consider, however unpopular . . .  a utility tax and parking meters." Smith would make budget cuts and impose staff layoffs. And Winholtz would support normal staff attrition (through retirement and resignation), departmental reorganization, and two-tiered benefits (new employees receiving less in benefits than current staff).

The other mayoral and Council candidates in the primary did not respond to the Journal's questionnaire about their views on various topics.
Following are the four candidates' answers to the questionnaire. Some answers were edited to enable them to meet the stated limit of 100 words per answer.

Neil Farrell

--Education: Cuesta College for three years and awarded Associate in Arts degree, Cal Poly for three years

--Occupation: Managing editor of Bay News

--Community activities:     Morro Bay Public Art Foundation, vice president of Morro Bay 4th Inc., board member of Morro Bay Beautiful's Art Cans Committee, a board member of the United Cerebral Palsy of San Luis Obispo County's Ride-On Transportation and volunteer for community events such as the Harbor Festival, Arbor Day and Music Festival.

--Things you like about Morro Bay:     I love the harbor, the beach, the hills, the parks, the sunsets, most of the people, the fish and chips and the clam chowder.

--Changes needed to improve the community?     Our town needs aesthetic help. I'd like to see more public art work in town. I would propose that public art be required with new commercial projects. Our downtown is looking a little shabby and needs attention. We should revive the RUDAT (Regional/Urban, Design Assistance Team, 1997) report and get back to instituting its beautification recommendation. We need to build a public restroom downtown. Waiting to force a private developer to put one in isn't getting the job done. It's common courtesy to provide such a facility for visitors and residents.

--Major problems facing the city that require City Council or staff decisions or action:     We face a structural deficit that casts a shadow over our future. The Management Partners report in 2008 warned the city that it needed to generate new revenues and change how it delivers services or face dis-incorporation in 10 years, and that was more than two years ago. We can't give automatic COLAs (cost of living adjustments) and raises to the staff with the next employment contract, period. We need some breathing room to give the economy a chance to rebound and the city a chance to seek other ways to increase revenues. The fire department has equipment needs.

--How would you characterize the city's budget situation and what do you propose to address it?     We have a structural deficit, which means we are spending more money every year than we take in with taxes. To cover the shortfall, the council has dipped into reserves, and relied on one-time monies that have come in to save them since at least 2005. I propose a two-pronged approach: first we must freeze salaries and benefits of city employees for at least two years to give us some breathing room. Second, we must find new sources of revenues. Let's increase the taxes coming in by stimulating the local economy so everyone has a chance to prosper.

--What would you propose to ensure a more reliable supply of potable water for residents?     State water has been a great source of drinking water but it does have environmental issues with regard to the Delta. With the improvements to the desal plant, the Morro Creek wells are a great source, too.The city should regain access to the Chorro Creek well field. We must get the state water board to loosen pumping restrictions for access to that aquifer and then we need to build a treatment facility. Right now we can't even chlorinate that water. I believe it would be money well spent to get this water source back online.

--What is your assessment of the condition of the city's sewer system and what measures would you propose to address any deficiencies?     There are a lot of old clay pipes in town, especially in the Heights and downtown, and, as the sinkhole that was discovered last year under Morro Bay Boulevard shows, some of them are in pretty poor shape. (All those pines and eucs didn't grow gigantic on the annual rainfall, don't you know.) We need to make sure the sewer crew continues its cleaning of the main lines with the pumper truck we purchased about 10 years ago. We also should identify main lines that are in collapse and start fixing them.

--What is or was your position on the formation of a redevelopment agency that was before the City Council last fall and why?     The redevelopment agency was a good idea that was handled poorly. I would support revisiting it but doing a better job of selling it to the community. There are numerous benefits to a RA and the city failed to emphasize those adequately. We've already missed out on a great chance to jumpstart the RA with the sale of the Brannigan's Reef property and its return to the tax roles. The 3-2 vote by the council stopped the issue from advancing to the point of where we had an actual ordinance in front of us that could be debated.

--Do you agree or disagree with the decision by the majority of the City Council not to examine alternatives to the present plan to upgrade the wastewater treatment plant and why?     The flood plain issue gave the agencies an opportunity to check into alternative technologies, which they were unwilling to do. The treatment plant is a partnership and we are a democracy and the majority of both boards decided to press on with the course they are pursuing. However, I would have listened to a presentation of alternatives by a third party to get an objective overview with pros and cons on each technology, and cost estimates regarding private vs. public funding. I would not support delays that jeopardize the time schedule order from the RWQCB (Regional Water Quality Control Board).

--What role do you think the city should play in helping to encourage any redevelopment of the power plant site to best serve the interests of the community?     The N.E.W. Futures committee did a great job with its report, and I would support beginning the process of writing a specific plan for the power plant. It's more than 100 acres of prime waterfront property, and I do not want it to close and be left standing, a useless rotting hulk and a blight on our waterfront (which it already is) for many years to come. We need to get ahead of the game for once in this town.

--Would you favor an increase in tourism here, and if so, what efforts would you advocate to encourage it?     If we don't increase tourism, we will have to increase taxes on the residents and businesses. We already have the highest sales taxes in the county (8.75%) and the highest TOT (transient occupancy tax) (13%). We should expedite the proposed maritime museum, lure a tall ship here and change the Highway 1 exit signs to better reflect the offerings of our community (the words harbor, beach or waterfront do not appear on any of the road signs). We must also not skimp on money spent for promotions.

--Do you feel there is any conflict of interest or violation of journalistic ethics in covering and editing articles for the Bay News about Morro Bay while at the same time seeking election to the City Council in the same city?  Please explain any response.    I spoke with my employers about this. Their concern was to make sure we were fair during the election. They see my being elected mayor as a plus for the company. I voluntarily suspended my political column and turned coverage of the primary election over to Jack Beardwood. I'm answering the same questions as everyone else, and Jack (Beardwood) wrote the questions that will appear in the paper. It is a difficult juggling act but I've taken great precautions to remain neutral. If I am elected, the city beat will be turned over to Jack and I'll cover Los Osos and Cayucos.

Neil Farrell's website

Rick Grantham

--Education: Cypress College and Riverside College, license in nursing,1979. Attended State Peace Officer Academy in Gault, CA.

--Occupation: Retired nursing supervisor, California Men's Colony, 1995. Operated small business in Morro Bay until 2007.

--Community activities:    Board member, Morro Bay Chamber of Commerce, until 2009. Coordinator, community Thanksgiving dinner for seven years. Morro Bay Police volunteer for 10 years. Morro Bay Rotary Club member for 12 years, previous president.

--Things you like about Morro Bay:    The people, clean environment, harbor walk, open and efficient government, wealth of volunteerism.

--Changes needed to improve the community:    We need to develop ways to ensure sufficient revenue to keep services to an acceptable level during the current downturn in the economy.

-- Major problems facing the city that require City Council or staff decisions or action:    As we are facing layoffs of city staff, we need to define new responsibilities and duties for a more efficient operation, determine future uses of the power plant, stay on course with the wastewater treatment plant upgrade project and support development of economically feasible ways to use reclaimed water, and continue the efforts to provide safe, clean drinking water to all our residents.

--How would you characterize the city's budget situation and what do you propose to address it?    As a result of things out of our control. . . reduced use of power plant, fishing restrictions, state takeaways, the national economic downturn. . . along with many other cities, we face a budget shortfall. This year, we must reduce costs by $500,000. and I proposed a 5% across the board cut in response. Some revenue producing options that we may need to consider, however unpopular, are a utility tax and parking meters. I also am a constant advocate and supporter for our fishing industry and all we can do to keep it viable.

--What would you propose to ensure a more reliable supply of potable water for residents?    Continue tracking nitrates and work with local farmers towards mitigation to eliminate the sources. Continue upgrade of the desal plant to ensure our ability to blend ground and seawater to drinking standards. Develop more self-sustaining water sources through treatment and reclamation for times when state water deliveries are reduced.

--What is your assessment of the condition of the city's sewer system and what measures would you propose to address any deficiencies?     I recognize that our sewer pipes are aging and need repair, and, in fact, the city has been making repairs to the most serious deficiencies. I support allocating Measure Q funds to continue these efforts to the greatest extent possible within our budget limitations.

--What is or was your position on the formation of a redevelopment agency that was before the City Council last fall and why?    An RDA was recommended by the Management Partners report and supported by the Council majority as a proven way to increase revenue and property values. In retrospect, we failed to properly educate our citizens on the process and reasons for considering it.

--Do you agree or disagree with the decision by the majority of the City Council not to examine alternatives to the present plan to upgrade the wastewater treatment plant and why?    The JPA has used due diligence all along the way in this process, and changing course at this time could result in costly delays and penalties. However, I continue to be open to other options as evidenced by my upcoming visit to the PERC Water plant in Santa Paula.

--What role do you think the city should play in helping to encourage any redevelopment of the power plant site to best serve the interests of the community?    The N.E.W. Futures Committee has already done research on potential future uses of the property, and an independent developer has proposed a campus-type use, but our citizens should be involved in any final decision. However, until Dynergy decides to close the plant; we need to negotiate the best lease agreement for the city.

--Would you favor an increase in tourism here, and if so, what efforts would you advocate to encourage it?    Tourism dollars are our main source of business revenue, and we have supported funding for the City Promotions Committee, the Business Improvement District, the Visitor's Center, and the County Visitor Conference Bureau. I have tried to set an example by being actively involved in our events, such as the Music Festival, Chili Cook-off, Harbor Festival, etc. We also need to encourage more eco-tourism events like the Bird Festival and Kite Festival.

--You have been quoted as saying that the staff are the experts and it is the responsibility of Council members to follow their recommendations.
Were you quoted accurately? Please explain.    Taking the quote out of context, I don't know if it is accurate. However, in matters where our staff's
engineering, legal, financial, etc. recommendations are being discussed, I would rely on their expertise and experience to guide my decisions.
Although I enjoy a good working relationship with staff, they are well aware of my expectations of high standards, integrity and effectiveness.

Rick Grantham's website

Jack Smith

--Education: Graduated from Morro Bay High School, attended Cuesta College for two years.

--Occupation: Marketing director for VS Athletics, a track and field equipment supplier; publisher of a news/social networking site for skateboarders www.skateboardersjournal.com, owner of CuppaStoke, a coffee company. Author, "The Skateboarder's Journal - Lives on Board," 2009.

--Community activities:     Youth sports coach in the 1970s, freshman basketball coach at Morro Bay High School, 1984-1988; pole vault coach Morro Bay High School, 1988-present, all mostly as volunteer. Organized World Slalom Skateboarding Championships 2001–2005 in Morro Bay. Organized 2008 National Slalom Skateboarding Championships in Morro Bay.

--Things you like about Morro Bay:    The beauty of the natural environment and small town charm are my favorite things about Morro Bay. Walking into a store or restaurant and being greeted by name. The volunteer spirit that still exists.

--Changes needed to improve the community?     Morro Bay needs to retain its small town charm, while at the same time wisely grow its retail and residential sectors. I also support the efforts to strengthen the local commercial fishing industry, create a maritime museum and to position Morro Bay as a destination location for eco-tourism. In these challenging economic times, we need to be open to all options to strengthen Morro Bay's future. Working together we can create a positive environment for smart growth while at the same time retaining the character of Morro Bay that we all love.

--Major problems facing the city that require City Council or staff decisions or action?    The Wastewater Treatment Plan. The PERC option needs to be more thoroughly explored. Operating the city while staying within its budget. While the Embarcadero has and always will be the focal point of Morro Bay, we need to look at attracting new businesses to Morro Bay that are not necessarily tourist driven. Developing a "realistic" plan to deal with the power plant property when it is no longer in use.

--How would you characterize the city's budget situation and what do you propose to address it?     Shaky. Take an objective look at services/programs offered by the city and make cuts/changes where necessary. Look for new ways to increase the city's tax base.

--What would you propose to ensure a more reliable supply of potable water for residents?    Having just been notified that Morro Bay is back on state water, I would continue to emphasize water conservation. (Does anyone actually drink tap water anymore?)

--What is your assessment of the condition of the city's sewer system and what measures would you propose to address any deficiencies?     From what I know about the city's sewer system, it is aging, inefficient and not up to federal standards. Although I would prefer a closed system with no wastewater being released into Estero Bay, I'm not sure if this is financially feasible. However, the closed system option should be explored.

--What is or was your position on the formation of a redevelopment agency that was before the City Council last fall and why?    The parameters surrounding the consultant's study were blurred, I have doubts that the residents of Morro Bay were truly involved in the study. From what I understand, the economic value to the city would have been very slight. On a related subject, I feel the city should quit spending so much money on consultants.

--Do you agree or disagree with the decision by the majority of the City Council not to examine alternatives to the present plan to upgrade the wastewater treatment plant and why?     I definitely favor reconsideration of the plan. This is too important of a project both financially and environmentally to not take a closer look.

--What role do you think the city should play in helping to encourage any redevelopment of the power plant site to best serve the interests of the community?     The city should work with the owner of the plant, beginning now, to develop a realistic exit plan. To think that the plant owner is just going to turn over the property is a pipe dream. And even if they did, where is the money going to come from to redevelop the area. Morro Bay simply does not have the infrastructure to support a large scale development. I have been involved with a similar situation regarding the use of the Almaden Air Force Station in the Santa Cruz Mountains. The Midpeninsula Regional Open Space District, the lead agency, recently received money from the federal government to begin demolition of the base, which has been closed since 1982.

--Would you favor an increase in tourism here, and if so, what efforts would you advocate to encourage it?    Yes. But we need to look at the type of tourism we wish to attract. I believe that we are transitioning to a more active type of tourist and that we should explore activities that will attract that type of tourists. I also support the plan to bring a maritime museum to Morro Bay. Let's continue to develop the Harbor Walk project and improve the area surrounding the Rock, this is our jewel and should be displayed as such. It should also be a priority to support a sustainable commercial fishing industry…our roots, and we must not forget that.

Jack Smith's Website

Betty Winholtz

--Education: Attended Graceland College, Lamoni, IA, BA; University of Iowa, MA, counseling.

--Occupation: Math and reading tutor, 22 years.

--Community activities:    White Caps Community Band, Morro Bay Historical Society, Morro Bay Chapter of the American Association of University Women, United Methodist Church, ballot Measure L in support of county library system, tutor volunteer in local elementary and secondary schools, Salvation Army, 4th of July Committee, Harbor Festival.

--Things you like about Morro Bay:    The combination of blessings that contribute to the uniqueness and quality of living here, including Morro Bay being a bird sanctuary, the Tree City USA, beaches, Morro Rock, multiple state and city parks, two animal rescue centers, Morro Bay Senior Center, Morro Bay Lbrary, locally-owned businesses, dog-friendly, friendly neighbors, multiple ways to volunteer.

--Changes need to improve the community:     More quality bike lanes and walking paths, road repaving, adding a community swimming pool.

--Major problems facing the city that require City Council or staff decisions or action:    Completion of the cheapest, state-of-the-art wastewater treatment plant and collection system. Settle contamination and water issues in the Chorro and Morro Valleys from where the city gets a portion of its drinking water. Stablize the city's budget.

--How would you characterize the city's budget situation and what do you propose to address it?     At the time I was elected to the Council and with (Bill) Yates as mayor, the city was spending down wastewater treatment reserves because the Council didn't want to raise rates It took two budget cycles and the help of Council member Dave Elliott to convince the Council to raise fees appropriately. Ever since, the city has spent down general fund reserves. Through no fault of its own, the city now has reserves again. Will we spend them down again, or structurally change the budget? Attrition, reorganization, and two-tiered benefits (new employees would receive lower benefits than current employees) must be introduced, while we appropriately support local businesses.

--What would you propose to ensure a more reliable supply of potable water for residents?    There is a sufficient supply of water from local and state sources, coupled with conservation, except during high-tourist season. For that exceptional time, the city is making arrangements with other water providers. What the city and county have a responsibility to do is clean up our two aquifers, beginning now.

--What is your assessment of the condition of the city's sewer system and what measures would you propose to address any deficiencies?     It is old and deteriorating as is every city's. For the collection system, routine maintenance is necessary, while a replacement schedule is followed, just like the city's streets. The wastewater treatment plant has lived beyond its time, parts are consistently replaced. The plant needs to be replaced with a state-of-the-art plant with reclamation-ready water for use or selling.

--What is or was your position on the formation of a redevelopment agency that was before the City Council last fall and why?     I voted against the RDA. In my own research and research brought to Council's attention from residents, there were pitfalls in marked residential zones with little chance for redevelopment in commercial zones, except for the power plant property.

--Do you agree or disagree with the decision by the majority of the City Council not to examine alternatives to the present plan to upgrade the wastewater treatment plant and why?    I disagreed with the Council and Board majority to not allow a public presentation for residents of a possible alternative that had not previously been presented, as an example of potentially cheaper and more technically advanced options. It was particularly disappointing since it had been recommended by the mayor and council of another city.

--What role do you think the city should play in helping to encourage any redevelopment of the power plant site to best serve the interests of the community?    The City has the expiration of the outfall lease and the power of zoning, which it should exercise to the advantage of the City in keeping with the two goals of our General Plan: maintaining our small town flavor while preserving our natural beauty.

--Would you favor an increase in tourism here, and if so, what efforts would you advocate to encourage it?    Previously, the City managed higher levels of tourism than we currently experience. We are prepared for the greater numbers with the hotel rooms and RV parks that exist. However, we need streets in good condition, safe bikeways, and wide sidewalks. The downtown visioning program will enhance that area for tourists and locals. North Morro Bay deserves greater promotion. I am in favor of the County Business Improvement District because Morro Bay offers benefits complementary to other special areas of the county, like the Paso Robles wine district. In-house coordination of the various promotional funds may be more effective and efficient.

Betty Winholtz's website

Belted Kingfisher image on banner by Cleve Nash