Half Moon Bay will not appeal the loss in sewer pipeline case

Judge Julia Allogiamento found that replacement of the intertie is an operations and maintenance cost, of which Half Moon Bay must take on 62%, and not a construction or reconstruction cost, for which the districts would be responsible.

Half Moon Bay filed motions earlier this year to extend the timeline for a motion to strike or tax costs, which would challenge the costs claimed by the winning parties — the Granada Community Services District and Montara Water and Sanitary District.

The city said in an Aug. 12 press release when the ruling was announced that it would consider rate increases or reconsolidation into a special district that manages the pipeline equally.

“Assuming [the ruling] stands, the City will need to move forward with rate increases to pay for 62 percent of the cost to replace the intertie pipeline,” City Manager Matthew Chidester said in the press release. “We believe the ruling will also disincentivize Montara and El Granada from making cost-efficient infrastructure decisions if they know Half Moon Bay ratepayers will pick up 62 percent of the tab.”

In an August email statement, the Granada Community Services District said that the ruling accurately reflected the Joint Powers Agreement the three entities entered into in 1979 to manage coastside wastewater treatment.

“The decision affirms that the City must continue to pay its fair share toward work on the SAM Intertie Pipeline System, a vital part of SAM’s and the coastside’s sewage network,” the statement read.

The district acknowledged the impact that the decision would have on ratepayers.

“While GCSD is understandably pleased with the Court’s decision, it laments the costs of the lawsuit on its ratepayers, and all three agency’s ratepayers,” the statement read.