MWSD Approves Budget, Rate Hikes as Seal Cove Disputes and Expired Easement Loom

The Montara Water and Sanitary District (MWSD) board locked in its fiscal year 2026-27 finances Thursday, unanimously adopting a budget that sets aside $2.4 million for a major sewer force main project and raising water and sewer rates roughly 3% — all while confronting a growing web of interagency tensions, from an expired land agreement beneath a shared sewer plant to Seal Cove residents pushing state regulators to investigate the district's infrastructure.

• Board adopts FY 2026-27 budget with $2.4M contingency for MWSD's share of a $12 million SAM force main replacement in Montara, plus a 3.8% cost-of-living raise for staff

• Water and sewer rates rise 3% under the revised master fee schedule; construction fees drop 0.51%

• Expired 40-year easement beneath the SAM sewer plant discovered during solar project review; Half Moon Bay is leveraging renewal for unrelated infrastructure concessions

• LAFCO accelerates all coastside municipal services reviews by one year after Seal Cove residents allege MWSD abandoned sewer service — claims LAFCO staff flagged as inaccurate

• County proposes a look-back formula to 2013 to unlock roughly 180 stalled building permits on the Mid-Coast after Cypress Point consumed the entire 40-unit annual housing cap through 2028

• Seal Cove homeowner demands answers on abandoned mains; board declines to respond citing pending legal claims

Budget Passes With Eye on $12M Force Main

The board unanimously adopted the FY 2026-27 water and sewer budget and approved a 3.8% cost-of-living increase for all non-exempt employees and the district clerk, effective July 1, 2026.

Why it matters: The budget's centerpiece is a $2.4 million contingency representing MWSD's 21.6% share of a $12 million Sewer Authority Mid-Coastside (SAM) force main replacement project in Montara — the district's largest anticipated capital expenditure. The budget also includes $300,000 total ($150,000 per fund) for non-project capital improvements, including district office repairs that have been awaiting county permits for two years.

Where things stand: Staff member Peter told the board that despite the 3% rate increase, the district is budgeting revenue flat.

"Despite our rate increasing, we are not anticipating additional usage. We are actually thinking possibly less considering what is currently going on with weather patterns as well as the economic situation that we're currently dealing with," he said, citing declining consumption trends.

Director Cid Young requested a two-week delay to review the budget in paper form, saying she had trouble printing from the website. President Scott Boyd and General Manager Clemens Heldmaier rejected the delay, noting this was the budget's second presentation and materials had been provided electronically in advance.

Director Bill Softky praised the document's presentation.

"This is a masterwork of clarity," he said.

Decisions: Two separate motions passed 5-0: the COLA authorization (moved by Softky, seconded by Director Kathryn Slater-Carter) and the budget resolution (moved by Slater-Carter, seconded by Softky). All five board members voted aye on both (For: Boyd, Young, Slater-Carter, Softky, and Champion; Against: none; Absent: none).

Expired Easement Creates Standoff Between SAM and Half Moon Bay

Director Kathryn Slater-Carter reported that a 40-year-old land use agreement beneath the SAM sewer plant has been expired for four years — and nobody noticed until staff reviewed the site for a solar project.

The basics: When the Sewer Authority Mid-Coastside was created under a joint powers agreement with Half Moon Bay, the city retained ownership of the land beneath the plant. A 20-year land use agreement was renewed once, then lapsed undetected.

Why it matters: Tens of millions of dollars of shared sewer infrastructure now sit on land where the operating agreement has lapsed, creating a structural vulnerability for all three member agencies.

Where things stand: Half Moon Bay is proposing to tie the easement renewal to two conditions: relocating a sewer pipeline in the Kehoe neighborhood and using a SAM-owned parcel for a watercourse restoration project.

"Half Moon Bay, under the original agreement to create SAM, kept the land underneath the sand plant," Slater-Carter explained.

The Granada community objected to linking the projects.

The other side: President Scott Boyd argued both the pipeline relocation and the watercourse restoration are worthwhile but should not be bundled.

"If they're both good things and we all want the good things, why don't we just give ourselves the good things?" he said, proposing the projects proceed independently.

Director Bill Softky suggested the district has leverage since Half Moon Bay cannot realistically shut down SAM.

What's next: The matter goes to the SAM board on Monday.

County Proposes Look-Back to Unlock 180 Stalled Building Permits

Director Cid Young reported that Bharat Singh, a Planning Services Manager from San Mateo County, presented a proposal to amend the Mid-Coast's 40-unit annual housing cap at the May 27 Mid Coast Community Council meeting.

The basics: The cap limits how many residential units can be permitted annually on the Mid-Coast. After Cypress Point's 71 units in 2026 pushed the annual total to 102, the cap is exhausted through 2028 — freezing all other pending applications.

Why it matters: The county proposes a look-back methodology to January 2013 to recapture roughly 180 unrealized development permits from years when permits fell below 40. Eighteen permit applications are already pending. Any unlocked permits would directly increase water and sewer demand on MWSD.

Where things stand: The Mid Coast Community Council opposed the proposal. Young reported the community council members "were upset about it." Director Kathryn Slater-Carter noted 2013 was a recession year with minimal building activity, raising questions about the fairness of the baseline.

Public commenter Greg Diego reported that Supervisor Ray Mueller has pulled the item from the Board of Supervisors and is arranging local hearings. Diego is preparing a community report focused on evacuation concerns, describing the coast as a "death trap" for adding more residents without adequate two-lane road capacity.

What's next: Local hearings will be arranged before the item returns to the Board of Supervisors.

LAFCO Advances All Coastside Reviews After Seal Cove Complaints

Director Kathryn Slater-Carter reported that four Seal Cove residents — including Director Cid Young — appeared at a recent LAFCO meeting to request an accelerated municipal services review specifically targeting MWSD, citing the district's newsletter about abandoned mains on San Lucas Avenue. Allegations reaching Supervisor Jackie Speier claimed raw sewage was running in streets and flowing into the marine reserve.

Why it matters: LAFCO staff indicated the claims were not accurate. Rather than singling out MWSD, LAFCO voted to advance all coastside municipal services reviews by one year — imposing unplanned costs and staff time on every affected district.

"Every single district is going to have to fit into their budget a year early dealing with these new municipal services reviews, which take a fair amount of staff time," Slater-Carter warned.

The other side: Young disputed the characterization, saying residents have been unable to get answers from MWSD about their service. District Counsel Christine Fitzgerald reminded Young of her recusal from Seal Cove matters.

Director Bill Softky criticized the complaints as costly and demanded accountability.

"If these comments cost money, we should know how much money these lies cost," he said.

Seal Cove Resident Demands Answers on Abandoned Mains

During public comment, Alan Moss, a Seal Cove homeowner on San Lucas Avenue, told the board he sent a letter on May 14 requesting detailed information about how his address receives sewer service after an April 28 district newsletter announced the abandonment of water and sewer mains west of Del Mar Avenue. After 29 days without a response, he asked the board to intervene.

"I would like the board to order the general manager to respond to my letter so I have that information. That's my simple request," he said.

A second public commenter, Greg Diego, sought clarification that "abandonment" refers to replacing broken original pipes with flexible alternatives — not cutting off service. General Manager Clemens Heldmaier confirmed that every connected property in the district continues to receive water and sewer service.

"Everybody in this district receives water and sewer services," he said.

The board did not respond further due to pending legal claims from Seal Cove property owners.

Rates Rise 3%, Construction Fees Drop

The board unanimously adopted the revised master fee schedule following a public hearing that drew no testimony or written correspondence.

Why it matters: The sewer service charge increases from $33.43 to $34.43 per hundred cubic feet, bringing the minimum annual sewer charge to $1,652.57 per residence. The monthly water service charge for a standard 5/8-inch meter rises from $35.66 to $36.73, and the Tier 1 volumetric rate increases from $10.29 to $10.60. The water system reliability charge rises from $684.20 to $704.73 annually. Construction-related fees tied to the California cost of construction index actually decrease by 0.51%.

Where things stand: A lengthy exchange between Director Cid Young and President Scott Boyd explored the sewer billing methodology — specifically whether low water use during wet weather months creates a "discount." Boyd clarified the structure:

"You can pay the baseline or you can pay more. You control that by whether or not you go over a certain amount."

Sewer charges use a minimum annual fee with additional per-unit charges if water consumption exceeds 16 HCF during two wet-weather billing cycles.

Decisions: Approved 5-0 (For: Boyd, Young, Slater-Carter, Softky, and Champion; Against: none; Absent: none).

Minor Items

• Tax roll resolution adopted 5-0 authorizing placement of sewer service, water reliability, and delinquent charges on county property tax bills for collection in December and April. Delinquent accounts can still settle before the August transmittal to the county controller.

• Consent agenda approved 5-0 without discussion; no items were pulled.

• $14,886 in FEMA disaster reimbursement funds being passed through to SAM for a generator relocation project. President Boyd praised continued federal support and thanked staff for managing the grant pipeline.

• Staff appreciation: President Boyd opened the meeting by sharing that a community member reached out to express gratitude for the district's emergency crews. General Manager Heldmaier noted the overlooked burden on staff families: "Behind every staff person there's a spouse, a family that makes this happen. So in these emergencies there's going to be a kid that's not tucked in properly at night."

• Montara Fire Station 44 is now closed for a two-year rebuild, Director Young reported; crews have relocated to Moss Beach, and a new water tender has been ordered for wildland fire response.

• Director Softky raised concerns about coastside evacuation capacity and autonomous vehicles, arguing the coast's two-lane roads limit the safe population and calling self-driving cars potential hazards on evacuation routes. He called for a meeting with first responders and technologists to address the issue.