Solar Deal Faces Make-or-Break Deadline as SAM Renews Key Easement

The Sewer Authority Mid-Coastside (SAM) board renewed its legal right to operate its own wastewater treatment plant after a four-year lapse, then turned to a far thornier problem: a solar energy deal teetering on the edge of collapse as vendor negotiations stall days before an IRS deadline. A separate easement dispute over a flood-prone parcel exposed deeper tensions between SAM and Half Moon Bay over who controls what — and on whose terms.

• SAM unanimously renews expired easement securing its wastewater plant site on Half Moon Bay-owned land after four-year gap

• Solar PPA continued to June 22 as general counsel warns vendor is dragging on liability terms with a July 4 IRS safe harbor deadline looming

• Board tables Landstrip parcel easement to July 13, demanding full-parcel scope, endangered species protections, and revised legal descriptions

• Director Boyd draws a line on solar deal: materials must arrive by June 18 or he votes no

Solar PPA Teeters on Vendor Delays and Risk Disputes

Why it matters: SAM's proposed 25-year solar power purchase agreement (PPA) could save the agency significant energy costs — but a July 4 IRS safe harbor deadline for the Investment Tax Credit means the June 22 board meeting is functionally the last chance to approve the deal. If it falls apart, the next vendor and the next set of incentives may not be as favorable.

Where things stand: The board resumed its public hearing on the PPA for solar installations at the SAM treatment plant, and the picture was not encouraging. General Counsel Jeremy Jungreis reported that the vendor, Jiwa/Caldwell, had been slow to deliver redlined contract terms, was attempting to shift regulatory risk onto SAM, and raised a last-minute concern about needing a direct property interest from the city — despite months of assurances that the existing easement structure would work.

"It's coming down to fish or cut bait, and the vendor knows this and sat on this stuff for an awful long time," said Jungreis.

He added that SAM can push back on paying the full contract price if the vendor underperformed. He outlined what the June 22 meeting would require: a presentation, a resolution with CEQA categorical exemption findings, and a determination that the project will save money over 25 years.

The other side: Board Member Scott Boyd warned the vendor directly:

"If it's a rush job by noon to review it, I will vote no."

The board set a firm deadline of noon on June 18 for all PPA materials. Board Member Deborah Ruddock flagged a separate issue — tree removal at the plant site — as a potential deal-breaker:

Chair Kathryn Slater-Carter piled on:

"The PPA agent has had a lack of clarity and has been a little slow on getting this stuff to us. SAM, on the other hand, has been pushing this to try and get it done."

Public commenter Jimmy Benjamin, drawing on his decade of strategic alliance experience at HP, urged the board not to buckle under deadline pressure.

"A bad deal is worse than no deal," he said. "It can be a successful negotiation to find out that there's not a zone of agreement. And I want you to feel good if that's the conclusion you come to and not feel like you have failed your ratepayers."

Decisions: The board voted 6-0 on roll call to continue the public hearing to June 22, 2026.

What's next: Materials are due from the vendor by noon on June 18. The June 22 board meeting is the final opportunity to approve the PPA before the July 4 IRS safe harbor and Investment Tax Credit deadlines expire. If the vendor does not deliver clean terms, the deal is likely dead.

SAM Renews Expired Easement After Four-Year Gap

Why it matters: SAM has been operating its wastewater treatment plant on land owned by the City of Half Moon Bay without a written easement since the original 1982 agreement expired in 2022. Without a renewal, the agency has no formal legal right to access its own facility — a gap that jeopardizes not only the solar PPA but any future capital project at the site.

Where things stand: General Manager Kishen Prathivadi explained that the lapse was discovered when SAM began exploring solar vendor options. General Counsel Jeremy Jungreis noted that an implied authorization existed under law, but a written instrument was needed to move forward with new projects.

Vice Chair Nancy Marsh pushed to broaden the amendment's scope.

"Because Section 2A references granting a vendor access to SAM facilities and in all of its other language is specific to the PPA, I just thought that language be broadened to include other important projects at the plant," she said. General counsel agreed the change was minor and could be authorized by the board.

Chair Kathryn Slater-Carter used the item to underscore a power imbalance she sees between SAM and Half Moon Bay across both easement items on the agenda.

"The difference between the two easements is in the one we are discussing now — Half Moon Bay has veto power over any SAM project," she said, referring to the JPA's 4-4 weighted voting structure that gives the city effective veto authority over SAM operations on its land.

Decisions: The motion to approve the Second Amendment, with authorization for minor revisions by the general manager and general counsel, passed 6-0 on roll call (For: Ruddock, Dye, Boyd, Nagengast, Marsh, Slater-Carter; Against: none).

What's next: The renewed easement removes a legal barrier to the solar PPA and future capital improvements. The broadened Section 2A language means SAM won't need to come back for additional amendments when pursuing non-solar projects at the plant.

Landstrip Easement Tabled Over Scope and Habitat Disputes

The basics: The City of Half Moon Bay needs two non-exclusive easements on SAM's Landstrip parcel — one for drainage and habitat restoration work, one for a sewer line extension — adjacent to the Pilarcitos watercourse near Bev Cunha Road.

Why it matters: Half Moon Bay's planned flood control and habitat restoration project cannot proceed without this easement, but SAM directors say the current draft doesn't reflect what the board agreed to at its prior meeting — and doesn't adequately protect the parcel's sensitive ecological character.

Where things stand: Public commenter Jimmy Benjamin, a neighbor who submitted a detailed letter, testified that the revised easement fell short on multiple fronts.

"It was clear to me at the last meeting that the board had a consensus that the entire parcel was going to be involved in the drainage easement and that the drainage easement needed to address a lot of hydrology issues, not just drainage. And I didn't see that in the revised version," he said.

He also objected to the 60-foot-wide sewer easement, arguing that the vegetation removal language was unacceptable near the watercourse, and that the 2001 deed language — not the 2008 survey — should define the parcel boundaries.

General Counsel Jeremy Jungreis acknowledged the draft's shortcomings, explaining that revised metes and bounds covering the full parcel had not been prepared due to time constraints. He described Section 3C as a compromise "reopener" provision:

"The compromise was to what's in Section 3C of the draft agreement, which basically is a reopener that says that, as long as it doesn't interfere with SAM's future use, we would agree to modify."

Board Member Scott Boyd requested explicit habitat protections:

"If we had some language that acknowledged that it was an endangered species habitat area called out specifically, I would feel a lot more comfortable that we acknowledge it in the grant."

Vice Chair Nancy Marsh said she was willing to approve the draft on good faith but supported continuation at Half Moon Bay's request.

"I was prepared to vote for it even with the ambiguity in it. What I really appreciated the last discussion we had was the quality of the discussion we had and the willingness to take some things on good faith," she said.

Board Member Deborah Ruddock, representing Half Moon Bay, confirmed she supported covering the full parcel:

"I'm in favor of the whole parcel. So I'm actually good with continuing this item going back to staff."

Chair Kathryn Slater-Carter stressed the need for precision:

"I really like to have detailed definitions so we know what they mean."

She emphasized that SAM, as landowner, must retain influence over what happens on the parcel — a concern that echoed her comments on the asymmetric power dynamics in the easement for the treatment plant site.

Board Member Paul Nagengast questioned whether the 60-foot sewer easement width was justified, probing whether it was a continuation of an existing utility easement or something broader.

Decisions: The board tabled the item to July 13, 2026, directing staff to revise the metes and bounds to cover the entire Landstrip parcel, add endangered species habitat language, use deed-based boundary descriptions, and remove the Section 3C workaround.

What's next: Staff and general counsel will prepare a revised draft for the July 13 meeting. Half Moon Bay's flood control and restoration project remains on hold until the easement is finalized.

Minor Items

• Treatment plant road closure: The frontage road will be closed to all vehicles on June 16 from 8 a.m. to 5 p.m. for paving; field staff have been positioned outside the plant.

• Agenda reorder motion fails: A motion to hear Item B before Item A failed on a voice vote, with Half Moon Bay representatives voting no, reflecting the JPA's 4-4 weighted voting structure.

• Accounting improvement directive: Chair Slater-Carter directed General Manager Prathivadi to meet with Harbor District General Manager Jim Pruett to learn how SAM can upgrade its financial reporting practices. The Harbor District, which uses the same Tyler software, has received multiple GFOA awards for excellence in accounting and reporting. A report back will come through the finance committee or a future board meeting.