What’s ahead for Morro Bay in 2016 — a talk with Mayor Jamie Irons

Morro Bay Mayor Jamie Irons says the city accomplished some key infrastructure tasks in 2015, including building a $1.8 million bike and pedestrian trail and bridge, remodeling the public library, making progress on the planning for a new sewage treatment plant, and implementing some tough decisions such as raising water rates.

But in 2016, Irons says the city is focused on increasing tourism and finding ways to drive the economy — as well as revising some key planning documents that serve as blueprints for the city’s development.

Tourism has improved over the past couple of years, Irons said, and the city is looking forward to hosting the Tour of California bicycle race in May.

Events in 2015 such as a revamped Harbor Festival, which included fireworks, and a Fourth of July celebration, although minus the traditional fireworks, helped draw people to Morro Bay and promote the community as a coastal destination hub.

The city also hired Deputy City Manager Sam Taylor in June, Irons noted, to focus on improving events and tourism activities as part of his duties, which also include community and economic outreach, as well as upgrading the city’s website and computer systems.

And Irons said he was especially proud of the new Multi-Use Trail and Bridge, which offers walkers and cyclists a spectacular view of Morro Rock. The trail’s 130-foot-long bridge spans Morro Creek to connect north Morro Bay with the downtown waterfront along the Embarcadero. The Multi-Use Trail and Bridge project, christened with a July 4 ceremony that drew hundreds of visitors, was built using more than $1 million in federal, state and local grants.

The city also celebrated the recent opening of a new BMX bike park at Main Street and Radcliff Avenue, the only official park of its kind in the county, which has been a big draw for kids.

“I think these are really, really cool projects that not only serve people here in Morro Bay, but also draw people from out of town,” Irons said.

Energy proposals

Morro Bay’s economy took a hit when the 50-year-old waterfront power plant closed in 2014, costing about 30 employees their jobs and about $750,000 in leases and fees paid by the plant’s owner, Dynegy, to the city each year.

The future of the 107-acre prime coastal property and its iconic three-stack building remains unclear after Dynegy briefly put the plant on the market and then withdrew the offering last year because of low bids.

In the meantime, the city has played a role in public discussions about a proposed offshore wave energy project. The city is working with Seattle-based Trident Winds as part of a “memorandum of cooperation” to explore the possibility of connecting wind energy generated from offshore facilities to the Morro Bay Power Plant switchyard. The proposed project is still in the early stages of planning.

Trident intends to use the city’s outfall facility at the northeast side of Morro Rock as an access point to hook up to the PG&E substation at the shuttered Morro Bay Power Plant.

A previously considered wave energy project, a collaboration between Dynegy and the company GWave, which was also eyeing the use of the switchyard, has been put on hold as Dynegy continues to analyze what it may do with its property.

“Our role has been to engage in conversations and take an interest when any stakeholder wants to address an issue with us in regard to that land,” Irons said.

Planning ahead

Turning to long-term development planning for the city, Irons said updating Morro Bay’s Local Coastal Plan, General Plan, and Downtown/Waterfront Strategic Plan all are on the table this year.

The Downtown/Waterfront Strategic Plan will help the city focus on linking the downtown and waterfront more closely, better merging the two through design guidelines that create an identity appealing to locals and tourists, while incorporating the fishing industry, and encouraging investment in the downtown core.

Irons said none of the existing documents have been revised in recent years, and he views the plans as vital blueprints for city growth, zoning, development, transit, tourism and more.

“They will provide the city with great guidance,” Irons said. “The General Plan and Local Coast Plan haven’t been update in 20 and 30 years. They’re greatly outdated.”

The city has formed a nine-member General Plan/Local Coastal Plan Advisory Committee, which held its first meeting in December. The planning will look at a number of citywide issues, addressing matters related to land use, circulation, the harbor and noise. The Morro Bay City Council’s goal is to complete the planning by December 2017.

The discussions on the creation of a new zoning ordinance likely will include ways to better connect the business communities of the Embarcadero and the downtown core, as well as what may come of the Dynegy energy plant site and existing oceanside wastewater treatment plant site that will be decommissioned from use when the new plant is built.

Irons said that key tools for looking at ways to improve Morro Bay’s economy have been assessing municipal issues and budgets carefully. Financial reviews, including a 10-year budget forecast completed in 2015 have helped the city to target ways it can improve its economy and create new revenue streams.

The study shows that Morro Bay is well above per capita state averages for property tax, transient occupancy tax and sales tax revenue.

Water and sewer rates

“I think it’s very important to be examining what we’re doing and assessing ourselves,” Irons said. “For example, water rates hadn’t been raised in 20 years, and we had to take a hard look at that because we weren’t meeting our debt coverage.”

Water rates will increase steadily over a five-year period, which began July 1 when bills jumped from $33.20 to $50 per month for the average family. By 2019, water bills will be $75.50 for the average family.

The city has been falling behind its revenue needs for years, causing the water enterprise fund to run a projected $900,000 deficit this year and making it unable to pay for maintenance and upgrades.

Over the same five-year period, the city’s monthly fees for sewage treatment service will double to $83. The increased revenue will help the city cover costs related to building a new $75 million treatment plant and an associated $25 million water recycling facility, as well as tackle ongoing sewer-related maintenance needs.

The city is still in the process of selecting an official site for the treatment plant, although negotiations continue with Steve MacElvaine, owner of a preferred site on Highway 41 about a mile east of the city limits.

On the waterfront

In the months ahead, the city will play a role in planning a new aquarium on the Embarcadero, recently hammering out a “consent of landowner” agreement with nonprofit Central Coast Aquarium.

The aquarium site is one of many parcels along the Embarcadero that the city is reviewing this year as part of its lease agreement arrangements with leaseholders. Several properties are due for remodels as part of their renewed lease agreements, 11 of which expire by 2020. If the current leaseholder’s proposal doesn’t meet the city’s criteria, requests for other bids will be put out.

And the city will continue to look at ways it can bring in industry as well to foster economic development, including attracting industries that create head-of-household jobs, target businesses and revamp events to better serve residents, businesses and visitors.

“In order to be a great destination to attract people locally, regionally and internationally, we have to have a good marketing plan in place,” Irons said. “We have to have a good product, too. I think the bike and pedestrian bridge is a great example of how we’re doing that.”

In the months ahead, Irons said he’s focused on city business, but is mindful that his term will be up in December.

“I’m strongly considering running again,” he said. “I’m confident we’re on the right path.”

This story was originally published February 4, 2016 at 1:23 AM with the headline "What’s ahead for Morro Bay in 2016 — a talk with Mayor Jamie Irons."