MWSD, GCSD Prevail: Half Moon Bay Must Pay Fair Share of SAM Costs
Montara Water & Sanitary District, Granada Community Services District Prevail:
City of Half Moon Bay Lawsuit Fails, Must Pay Its Share of Sewer Authority Mid-Coastside Costs
For Immediate Release: February 10, 2022
Press Contact: Clemens Heldmaier
(650) 728-3545
Montara, CA - On Monday, February 7, 2022, the Santa Clara County Superior Court issued its final ruling granting Montara Water & Sanitary District (MWSD) and Granada Community Services (GCSD) District's Motions for Summary Judgment against the City of Half Moon Bay's frivolous 2017 lawsuit. This ends an almost five-year effort by Half Moon Bay (HMB) to renege on the Sewer Authority Mid-Coastside (SAM) contract and shift its financial obligations onto its northern partners. With this final ruling, it is clear that the City of Half Moon Bay has always been and will continue to be obligated to pay its fair share.
The SAM agency was formed in 1976 under a Joint Exercise of Powers Agreement(JPA) between GCSD, HMB, and MWSD, and is tasked with protecting public health and our beautiful coastal environment.
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.
The Court's ruling found 'the IPS was constructed to be operated and maintained for its useful life' and 'foresaw that the IPS would eventually require replacement'. The Court agreed with MWSD and GCSD that 'the City [HMB] must pay because maintenance includes repair and replacement of segments of the IPS based on the plain language of the JPA... The costs of lPS repair and replacement…is to be borne by all SAM members.”
For more than 45 years, SAM has operated and maintained continually 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 its partners 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 five years - all JPA parties must pay their fair share to operate and maintain the system. The Districts are now poised to move forward on critical repairs needed to protect our coastline.
“We are pleased to conclude this divisive chapter in SAM's history. It is time to get back to work, together as partners, to operate and care for the wastewater system the entire Coastside relies upon,” said MWSD Board President Scott Boyd.
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.