Half Moon Bay's $750K Demand Threatens Solar Project as District Celebrates Pension Milestone

The Montara Water and Sanitary District board navigated a packed agenda May 7, celebrating a pension plan that hit full funding for the first time, fast-tracking well repairs before summer, and setting its first-ever district-based election — but the meeting's sharpest exchanges centered on an escalating standoff with the city of Half Moon Bay over an expired property easement that now jeopardizes a federally funded clean energy project.

• Half Moon Bay demands up to $750,000 for an infiltration study as the price for extending an expired SAM easement, putting a solar project's federal funding at risk

• District pension plan surpasses 100% funding for the first time, eliminating unfunded liability payments

• Board sets November 2026 election for three district-based seats; Division 5 currently has no resident director

• Two key wells awarded $60,000 sole-source rehab contract ahead of peak summer demand

• Montara and Moss Beach left out of SamTrans Ride Plus on-demand transit service

• Emergency officials offer no concrete evacuation plan for coastside communities with limited highway exits

Half Moon Bay Leverages Expired Easement, Demands $750K From SAM

Why it matters: The Sewer Authority Mid-Coastside (SAM) is caught between an imminent federal funding deadline for a solar and battery installation and a city that discovered its leverage — an easement that quietly expired during the pandemic. If the solar project stalls, SAM loses significant long-term energy savings, and ratepayers across three member agencies absorb the cost.

Where things stand: Board President Scott Boyd delivered an extensive report on the dispute. During SAM's exploration of a solar-plus-battery facility on authority property, SAM's counsel discovered that the property easement with the city of Half Moon Bay had lapsed. The city is now conditioning a 25-year extension on SAM spending up to $750,000 on an infiltration and inflow study — or offering only a 10-year extension without it. The board viewed this as leveraging a deadline to extract concessions.

The underlying tension is about money and measurement. Inflow and infiltration — stormwater that enters the sewer system through cracks, joints, and illegal connections — increases treatment costs. Only two of three SAM member agencies are metered, meaning the city bears calculated costs for unmetered flows. Half Moon Bay argues inflow and infiltration is worsening; the other agencies dispute both the scope and the price tag.

General Manager Clemens Heldmaier offered a blunt alternative: skip the study entirely and install permanent meters instead.

"No one in this world can explain to me how this work amounts to $750,000," he said.

He proposed "work towards an implementation" of permanent metering, noting that "the two other agencies have financial difficulties to come up with this at this time."

Boyd described the city's approach as ill-suited to intergovernmental negotiation:

"Coming to the board table and insisting on spending $750,000 with no plan, nothing in the budget to handle it, and no shared view of the need amongst the staff or the members of the board — that kind of thing tends to fall flat."

But Boyd was careful not to demonize the city's position.

"Their strong passions for those things don't make them bad people. My disagreement with them doesn't make them bad people," he said, emphasizing issue-focused engagement over personal conflict.

Director Kathryn Slater-Carter noted a constructive development: Half Moon Bay has committed to sharing its staff report on infiltration origins — specifically a study suggesting I&I is entering the treatment plant from underneath the facility itself.

The other side: Half Moon Bay's concern is not frivolous. If I&I is genuinely increasing — and the metering methodology doesn't capture it accurately — the city could be subsidizing stormwater treatment for neighboring communities. The question is whether a $750,000 temporary study is the right instrument, or whether permanent meters would resolve the dispute more efficiently and permanently.

What's next: The solar project faces a tight federal funding deadline complicated by the easement impasse and requirements from two corporations involved in the installation. SAM's general manager must navigate the city's demands while preserving the project timeline. The board also entered closed session on existing litigation between Half Moon Bay and SAM — a lawsuit the district has prevailed in twice. Meanwhile, Boyd praised the force main replacement project's initial study and mitigated negative declaration, noting that Granada CSD's Barbara Dye called it the best she had ever seen.

Pension Plan Hits Full Funding for the First Time

Why it matters: The district's Public Agency Retirement Services (PARS) defined benefit pension plan — established roughly a decade ago under Public Employees' Pension Reform Act (PEPRA) — has crossed a critical threshold. With the unfunded liability eliminated, the district no longer makes catch-up payments, freeing operating dollars for infrastructure and services.

Where things stand: Actuary Braeleen Ballard of Foster and Foster presented the biennial actuarial valuation showing that investment returns exceeded 13% in both measured years, far above the 6.25% assumed rate.

"The district surpassed 100% funding, so our assets exceeded our liabilities for the first time in this valuation report," Ballard told the board.

The employee contribution rate remained unchanged because the normal cost decrease didn't meet the 1% threshold that PEPRA requires before adjustments can take effect.

CalPERS assumption changes from a November experience study also produced minor favorable adjustments, reducing projected liabilities slightly.

The other side: Director Cid Young raised a practical concern about sustainability, asking about the safety of pension fund investments given the war and market unpredictability. Ballard acknowledged the portfolio is heavily invested in equities but said the district can contact PARS to discuss shifting to a more conservative allocation if the board is concerned about volatility.

Decisions: The board unanimously adopted both the actuarial report and a resolution adjusting employer contribution rates for FY 2026–27 and FY 2027–28. (For: 4, Against: 0, Absent: 1 — Champion.)

First District-Based Election Set for November

Why it matters: This is the district's first election under its new district-based voting system, replacing at-large representation. Three of five seats are on the ballot — Divisions 1, 3, and 5 — and one of those divisions currently has no resident director on the board.

Where things stand: General Manager Clemens Heldmaier presented the resolution calling for the Nov. 3, 2026 election. Candidate filing opens July 13 and closes Aug. 7; statements are limited to 200 words at the candidate's cost, and Form 700 financial disclosure is required. The expiring terms belong to Board President Scott Boyd, Director Bill Softky (both four-year terms), and Director Leah Champion (two-year term).

Director Cid Young spotlighted the representation gap in Division 5:

"Basically, Moss Beach Heights, where Midpen is building their biggest thing, has no director sitting at the moment."

She argued the area deserves a voice on the board as a major housing project takes shape.

Softky acknowledged the concern but urged the board to stay focused on the procedural task at hand:

"We have to set the legal bowling pins up because it's a different kind of election than last time, and obviously state law requires that we pass this resolution just so the election goes ahead."

Boyd encouraged residents to consider running and participating in the process.

Decisions: Resolution adopted unanimously. (For: 4, Against: 0, Absent: 1 — Champion.)

Board Fast-Tracks $60K Well Rehab Before Summer

Why it matters: The North Airport well and Airport Well #3 are high-producing water sources for the district. Both are clogged with accumulated mineral deposits, and rehabilitation must be completed before peak summer demand kicks in around July 4.

Where things stand: Engineer Tanya Yurovsky presented the scope: pulling pumps, chemical cleaning, air scouring, and reinstallation over approximately 30 days. Yurovsky recommended sole-sourcing the work to Majora Brothers Drilling at $24,460 per well, with a not-to-exceed contract of $60,000 covering contingencies.

"The district proposes — staff proposes — to sole source work to Majora Brothers due to their unique experience with these particular facilities. They know them very well, they've done all the work on them," Yurovsky told the board.

Director Bill Softky supported the approach:

"It makes perfect sense that something that's specialized is probably not done by anyone else within 100 miles. And it makes perfect sense that we award a not-to-exceed value like 20% higher than the quote because unexpected things happen."

Director Cid Young asked about disposal of chemical waste from the cleaning process; staff said testing will determine whether SAM's treatment plant accepts it.

District Counsel Christine Fitzgerald read the formal motion at Director Kathryn Slater-Carter's request to ensure a liquidated damages clause — mentioned in the staff letter but initially omitted from the draft resolution — was properly included.

Decisions: The board voted unanimously (4-0) on both the competitive bidding waiver and the resolution with liquidated damages. (Champion absent.)

Transit Gaps and Emergency Blind Spots on the Coastside

Why it matters: Two reports from the Mid-Coast Council meeting revealed systemic service gaps affecting Montara and Moss Beach — one in everyday transit access, the other in emergency preparedness.

Where things stand: Director Cid Young reported that SamTrans presented on planned service improvements and a proposed multi-jurisdictional sales tax measure at the Mid-Coast Council. Community members pushed back on limited bus service — hourly frequency, requiring transfers in Pacifica. Young zeroed in on the Ride Plus on-demand service, which begins at Moonridge but stops at the harbor, excluding Montara and Moss Beach entirely.

"We also brought up the fact that Montara and Moss Beach were left out of the Ride Plus, which was total discrimination because that starts way down at Moonridge," she said, citing an 80-year-old neighbor who could use the service for grocery trips but cannot access it.

Separately, the county's director of emergency management presented with Cal Fire and the sheriff's office. Young reported that the presentation emphasized shelter-in-place protocols but offered no concrete evacuation plan for coastside communities — and no awareness that the area lacks a community evacuation center.

Director Bill Softky recalled a tsunami warning incident where the county website crashed under load and a highway patrol officer was killed.

"The idea of having computers intervene in emergency response is horribly stupid," he said.

Director Kathryn Slater-Carter promoted Coastside CERT — the Community Emergency Response Team — as the practical local alternative, urging neighbors to get radio training and coordinate with each other. Board President Scott Boyd endorsed CERT and promoted inexpensive BMRS radios, noting families can "get a pair of them for 60 bucks."

Minor Items

• Consent agenda covering financial statements, warrants, flow report, investment portfolio, connection permits, water production, rain report, solar energy report, and PARS report approved 3-0 (Directors Young and Champion not yet present).

• April minutes approved 4-0 after Director Young flagged that two items she requested at the April meeting — a flag issue and a sewer theft ordinance for unpermitted connections — were not placed on the May agenda or reflected in the minutes.

• Public commenter Andrew Boston questioned whether the district's 2017 Sewer System Management Plan has been updated after the general manager stated no annual maintenance is required on the Seal Cove sewer line; the SSMP lists 28 district-maintained pumps.

• CSDA and LAFCO report: Director Slater-Carter reported on an upcoming CSDA leadership conference and productive legislative meetings in Sacramento.

• District Counsel Christine stated Director Young must recuse from the Seal Cove closed session item due to a real property conflict of interest under Government Code 87100.

• The board entered closed session on two items: existing litigation (Half Moon Bay v. SAM) and anticipated litigation regarding a Seal Cove emergency.