Half Moon Bay, CA – On October 8, 2020, the City of Half Moon Bay informed the Santa Clara County Superior Court that the Granada Community Services District (Granada) and Montara Water and Sanitary District (Montara) have failed to formally approve the terms of a tentative settlement between those parties and the City, reached under formal mediation in August 2019, and that the City would unfortunately have to seek relief through the courts. The judge set this matter for a trial setting conference on March 9, 2021. It is anticipated that a trial date will be set for late summer 2021.
In July 2017, Half Moon Bay filed a suit in the San Mateo Superior Court asking for “declaratory relief” – a judgment resolving legal uncertainties and affirming the rights, duties, and obligations of these three agencies, comprising the Sewer Authority Mid-Coastside (SAM) Joint Powers Authority, which provides wastewater treatment services for the City and the other two coastside communities. The suit stemmed from a dispute as to the SAM members’ respective responsibilities to pay the multi-million-dollar cost to replace the Intertie Pipeline System (IPS). The IPS serves as an extension of the local sewer collection systems of Granada and Montara and carries wastewater from those communities to the SAM treatment plant in Half Moon Bay. The IPS does not directly serve users in the city.
This dispute, at its core, is about protecting Half Moon Bay sewer ratepayers from subsidizing the cost of sewer infrastructure from which they receive no benefit.
“We’ve worked countless hours in good faith over several years toward an equitable solution as to sharing these costs,” said Councilmember and SAM Board of Director Debbie Ruddock. “We’re deeply disappointed that Granada and Montara have chosen to reject the tentative settlement agreement we all reached together last year. We now have no option except proceeding through the court system.”
Formal mediation among the SAM agencies began in September 2018. In August 2019, they tentatively agreed to terms that would settle the IPS funding dispute and other issues affecting SAM. Since then, the City has sought to reach final agreement on the terms and amended Joint Powers Agreement, and to have the SAM Board of Directors implement the term sheet. In addition to the City’s financial participation in improvements to the IPS, this settlement would have resulted in a significant update of the 40-year-old Joint Powers Agreement for the governance and operation of SAM, for the benefit of sewer ratepayers of all three agencies.
Half Moon Bay remains committed to the fundamental goal of protecting the environment in and around the community, while providing for sewer and wastewater treatment services to its residents who pay for those services.
“We remain confident that the court will agree that it is not Half Moon Bay ratepayers’ duty to subsidize its neighbors’ collection systems,” said Councilmember and SAM Board of Director Deborah Penrose. “With the court’s help, we will sort out the IPS dispute while maintaining focus on running SAM efficiently for the benefit of the coastal environment and ratepayers.”
Located 28 miles south of San Francisco, the City of Half Moon Bay is a community of about 12,500 people, situated on the peninsula between forested hills and some of the most beautiful coastlines that California has to offer. Its historic downtown is home to numerous shops, art galleries, restaurants, bed and breakfasts, and other businesses, and its celebrated beaches and parks are wonders of nature, accessible to pedestrians, bicyclists, and equestrians. With its many activities and events, beautiful natural scenery, old-town charm, and abundance of retail and commercial services, Half Moon Bay is a regional destination. The City’s website is www.hmbcity.com.
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