Morro Bay cuts fees in half for residents rebuilding after floods: ‘Wish we could do more’

In January, Heather Baker watched a tide of floodwater spill into her home, destroying her family’s belongings and leaving a 42-inch-high water mark on the wall.

“Essentially everything was destroyed in the home,” Baker said. “We were immediately displaced.”

The 1930s-era adobe home flooded again in March, washing away Baker’s hopes of repairing — rather than replacing — the house, she said.

When Baker and her husband learned that permit fees for building a new house on the same lot cost nearly $30,000, they asked the city to reduce the fees.

On Tuesday, the Morro Bay City Council voted unanimously to reduce permit fees by half for all residents applying to repair homes damaged by flooding from winter storms.

Though the Bakers asked for a full fee reduction, the City Council decided on a 50% reduction to avoid severely impacting city funds.

“My heart as well goes out to the Baker family and everyone who was affected in the floods,” City Council member Jen Ford said at the meeting. “I wish we could do more, but at this time, I feel the responsibility also to the taxpayers.”

Morro Bay City Council reduces permit fees

The 50% fee reduction applies to homeowners applying for permits to repair their property after flood damage, which could include fixing damage to electrical wiring or drywall, or even rebuild the entire structure, according to Morro Bay Community Development Director Scot Graham.

The city will also refund up to half of fees homeowners already paid to the city for permits for storm damage repair, Graham said.

The fee reduction expires after Dec. 31, 2023, the staff report said.

To qualify for lower permit fees, applicants must prove that other sources of funding, such as the Federal Emergency Management Agency or home insurance, don’t cover the full cost of repairs.

The reduction also only applies to a property if it’s the owner’s primary residence, according to the staff report.

Only a handful of homeowners have purchased permits from the city for property repairs for flood damage, and the Bakers are the only individuals who had requested a fee reduction as of Tuesday’s meeting.

As a result, the city expects very few applications for fee reductions, Graham said.

The city is waiting to hear if FEMA will reimburse the permit fees it waives.

According to Graham, the city doesn’t make a profit on permit fees — the cost simply covers the price of the work performed by city staff.

“Our fees are based on cost recovery, so we would be subsidizing that process,” Graham said.

Ford originally wanted to waive the permit fees entirely, as she assumed a portion of the fees generated a profit for the city.

When city staff explained that the fees only cover the cost of the service, however, Ford felt the 50% fee reduction was more reasonable, she said Tuesday.

“It tugs at the heartstrings, wanting to help our fellow citizens in the consideration of 100% (fee reduction),” Ford said. “But we also are a business, and I don’t want to compromise us in any way.”

Morro Bay Mayor Carla Wixom said the 50% fee reduction struck a balance between supporting flood victims living in the city and responsibly managing the city’s General Fund.

“We are very compassionate, but we also have to be responsible to the cost of the city so that we aren’t gifting public funds,” Wixom said. “We’re not a wealthy city. We have fixed costs.”

Morro Creek home destroyed by flooding

On Jan. 9 during a record-breaking storm, floodwater from Morro Creek and Little Morro Creek spilled onto Baker’s street — filling her home with 42 inches of water, she said.

The flood destroyed most of her family’s belongings, but Baker and her husband coordinated with an adobe expert to start the process of drying and repairing the home, which was built in 1934.

On March 10, however, another flood struck the 1-acre property, this time filling the home with 36 inches of water.

“While less water entered the home the second time, the floodwaters spewed through the window and door frames, directly impacting and eroding the exposed adobe bricks,” Baker said.

The Bakers can no longer repair their home, so they plan to demolish it and build another 2,100 square-foot home on the property.

The Bakers don’t qualify for FEMA funding because they have flood insurance, Baker said, so they are funding repairs with their savings, flood insurance payouts and Small Business Administration loans.

Without the new discount, staff estimated that a permit to rebuild their home would cost $28,987.70, including a $16,067 in planning fees and $12,920.70 in building fees, the staff report said.

With the 50% discount, the two permits will cost a total of approximately $14,494.

Baker said she appreciates the city cutting permit fees in half, and the community’s continued support.

“Reducing the fee by 50% is a great start,” Baker said.

Still, she wishes the city had reduced permit costs even more.

“For any normal, middle-class American, that’s a sizable amount of money,” Baker said. “Especially when you’re coupling it with the fact that you’ve lost your entire household of belongings and are having to rebuild a home.”