MWSD Statement on Continued Costs to Coastside of Recent Appeals Decision re: HMB Lawsuit
Montara Water & Sanitary District Statement on Continued Costs to Coastside Residents of Sixth District Court of Appeal Decision in City of Half Moon Bay vs. Granada Community Services District, Montara Water and Sanitary District
FOR IMMEDIATE RELEASE: December 19, 2023
On Friday, December 15, an opinion written by Justice Wilson with concurrence of Justices Bamattre-Manoukian and Danner of the Sixth District Court of Appeal in San Jose, nullified a February 2022 Santa Clara County Superior Court ruling which ended the City of Half Moon Bay’s (HMB) lawsuit against Granada Community Services District (GCSD) and Montara Water and Sanitary District (MWSD). This unfortunate Appeals Decision returns the lawsuit to a trial court and adds yet another expensive chapter to the financial losses imposed upon our Coastside residents by the City of Half Moon Bay’s 2017 litigation related to the Sewer Authority Mid-Coastside (SAM) contract. Ultimately, the legal fees expended by MWSD, GCSD, and HMB are truly the whole Coastside’s loss. Whether you live in HMB, Granada or Montara, these funds have not been invested in our infrastructure, we do not have improved or new assets in the ground after all this expense. And these legal costs will now continue.
In 2017, Half Moon Bay filed litigation in order to renege on the Sewer Authority Mid-Coastside (SAM) contract and shift the City’s financial obligations onto its northern neighbors. The SAM agency was formed in 1976 under a Joint Exercise of Powers Authority (JPA) contract between GCSD, HMB, and MWSD, and is tasked with protecting public health and our beautiful coastal environment.
In February 2022, the Santa Clara County Superior Court affirmed Montara Water & Sanitary District and Granada Community Services District’s legal arguments against the City of Half Moon Bay’s frivolous 2017 lawsuit. Half Moon Bay has spent almost six years attempting to renege on the SAM contract and shift its financial obligations. This December Appeals Decision does not rule in HMB’s favor, it merely identifies legal and factual grounds for returning the lawsuit to a trial court.
In 1976, in order to serve all three communities, the partners of SAM chose to construct, own, and operate wastewater infrastructure, including the Intertie Pipeline System (IPS) and a single consolidated treatment plant. The IPS conveys wastewater from Montara and Granada (including a portion of the City of Half Moon Bay inside Granada’s boundary) to SAM’s Treatment Plant in Half Moon Bay. During heavy rain events, when increased wastewater flows can overwhelm the treatment plant, the IPS provides essential storage capacity to prevent releases of untreated sewage into the ocean.
For more than 45 years, SAM has operated and maintained constantly aging infrastructure. Throughout the years, we have seen the benefit of three agencies working together to share staffing, maintenance, and repair costs.
In 2017, the City of Half Moon Bay abruptly sued in an attempt get out of paying its share of the millions needed to maintain and repair the IPS, disregarding 45 years of financial partnership and the clear contractual language of the JPA. This action would have doubled costs for Granada, Princeton, and Montara/Moss Beach.
MWSD and GCSD have stood firm throughout these last six years – all JPA parties must pay their fair share to operate and maintain the system. Regardless of this recent ruling, the Districts remain poised to move forward on critical repairs needed to protect our coastline.
“It is time to get back to work and care for the wastewater system the entire Coastside relies upon,” said MWSD Board President Scott Boyd. ‘This lawsuit steals critical funding from ratepayers and throws it away. We should be working as partners and investing in our Coastside, not continuing lawsuits and litigation.”
Montara Water and Sanitary District (MWSD) works every day to deliver water, garbage, and sewer services for the residents of Montara and Moss Beach. Over 6,000 residents rely on our services for their homes and businesses.