Morro Bay shifts focus to Righetti site for sewage treatment plant

Morro Bay city officials are negotiating with a second property owner for a site on Highway 41 to build a new sewage treatment plant and water reclamation facility, after negotiations stalled with the owner of a nearby property that had been the preferred location for the facility.

The city has entered into a memorandum of understanding with Paul Madonna, the property owner at a site in Morro Valley called Righetti Ranch, indicating a change of course from Morro Bay’s preferred site for the past year, neighboring Rancho Colina.

For more than a year, the city had identified a 10- to 15-acre site on the southeastern corner of Rancho Colina on Highway 41 as its preferred location for the new plant.

But in recent weeks, negotiations between the city and owner Steve Macelvaine have broken down over the question of where on the Rancho Colina property the plant might be located. Macelvaine is limiting the city’s building options to 8 acres in a less desirable area of his property than originally targeted by the city.

In contrast, Madonna is willing to sell his 250-acre Righetti Ranch in its entirety, which offers flexibility for city uses, according to a 32-page report completed by the city’s consultant, John Rickenbach.

While the city is still considering both sites, the Rickenbach report recommended the Righetti property as the better choice because of a willing seller and construction costs that could be $2 million lower than the Rancho Colina property.

“Based on our recent environmental, biological and geotechnical analyses, combined with negotiations with property owners, the city is now closely considering the Righetti property along with the previously identified Rancho Colina site,” Morro Bay City Manager Dave Buckingham said. “No decision has been made, and the city is planning robust public outreach, and additional public meetings, in the weeks ahead.”

Changes at Rancho Colina

In December 2014, the Morro Bay City Council chose the 10- to 15-acre site on the southeast corner of Rancho Colina for the sewage treatment plant, which Macelvaine agreed to at that time, according to Rickenbach’s report.

Macelvaine later proposed the 8-acre property farther to the southwest after consulting with his family. But that site is more challenging, officials said, because it would mean building on shallow rock and steep slopes, adding “substantial earthwork” costs.

There was never an agreed-upon price or appraisal of the Rancho Colina property.

“As what sometimes happens in negotiations, we worked hard to get a memorandum of understanding,” Mayor Jamie Irons said. “But as we drilled down to all of the details, we realized there wasn’t an understanding on all of the things we wanted to do.”

Macelvaine said he wasn’t aware initially that the city wanted to house its corporation yard, which stores vehicles and other equipment, at his site. The city’s corporation yard is currently located near the existing, aging sewage treatment facility at 170 Atascadero Road near the ocean.

“The property owner has placed crucial limitations on both the area for potential development and the scope of the city’s future development,” Rickenbach wrote.

Macelvaine didn’t return a call for comment; however, he said during a City Council meeting Tuesday that he remains open to working with the city, including injecting reclaimed water into groundwater on his property. He said he harbors no ill will toward the city.

“I’m still here for you,” Macelvaine said.

The Righetti property

Rickenbach recommended the City Council change its preferred site to the Righetti property based on greater flexibility and a willing seller in Madonna. The property wasn’t available for sale in 2014.

That site, closer to city limits along the same stretch of Highway 41, would have lower costs related to pipeline construction and sewage pumping, helping to cover the cost of the land. The property was appraised in 2012 for about $2.4 million, Buckingham said.

“Initial engineering estimates are that the city would save around $2 million in construction costs, primarily on the pipeline, if the (facility) were sited at the Righetti property since it is 3,000 feet closer to Morro Bay than the Rancho Colina site,” Buckingham said.

At Righetti, the treatment plant would be on 10 to 20 acres of low ground close to Highway 41, which would save money because Rancho Colina is at a higher elevation and farther from the city’s sewer infrastructure.

The city entered into a memorandum of understanding with Madonna in late January for the purchase of the entire site, although further details need to be worked out.

“With the MOU, the city could own the entire property, and control all future activities there,” Rickenbach wrote. “There would be no limitations on what could be built related to achieving the city’s goals.”

Councilwoman Christine Johnson said the city will need to conduct public outreach before officially designating Righetti its new preferred site because neighbors live within range of where the facilities could be constructed.

“The Righetti owner has become more of a willing seller than we initially thought,” Johnson said. “It’s close to town and the city’s sewer infrastructure. But we do have to conduct outreach to residents closest to the site. I think we can show them that this new facility is not going to look like the one we have now. There are ways to do it so it looks like a barn, and the technology will keep any odors contained inside.”

The next steps

In 2014, the city set a five-year goal to pursue the development of a new sewage treatment system, which it still hopes to achieve.

Buckingham said the city plans to hold a public meeting of the Morro Bay Water Reclamation Facility Citizens Advisory Committee on March 1. Based on the analysis and recommendation, the City Council then would consider the issue further at its March 8 meeting.

“Righetti, at this point, is definitely not designated as the city’s preferred site,” Buckingham said. “Some (advisory committee) members did state that they had enough technical information to make such a designation, but all — (the committee) and council — agreed that additional public outreach should come before either body makes a formal decision.”

Irons said the city will pursue modernized technology and perhaps an architectural style so the exterior resembles an agriculture building.

“I visited a wastewater treatment facility in Fort Collins, Colo.,” Irons said. “It was completely concealed and had no odors and no noise. We need to have an informed conversation with the public.”

This story was originally published February 13, 2016 at 6:30 PM with the headline "Morro Bay shifts focus to Righetti site for sewage treatment plant."