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Utilities budget sets Scribe commissioning timeline, flags PFAS testing and funds new water‑quality roles
Summary
Utilities staff said the South County treatment plant (Scribe) will commission this fiscal year, increasing member agency operating costs; the budget includes two utilities hires (water quality specialist and water operator) to meet new state water testing and treatment expectations including PFAS monitoring.
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Utilities Director Heath McMahon told the council the recommended FY26–27 utilities budgets fund ongoing operations and capital work while adding two positions to respond to expanding regulatory and operational complexity.
McMahon said the South County Regional Wastewater Authority expansion is about 95% complete and is expected to be commissioned in FY26; commissioning will raise member agencies’ operating costs by roughly 20–24% because the region will begin paying for expanded operations. He noted that Gilroy operates bookkeeping for the SCRWA and that the city’s share of operating costs is accounted for through interfund transfers.
On the water side, McMahon highlighted system upgrades already finished—advanced meter infrastructure (AMI) for the majority of meters and a SCADA implementation to provide remote monitoring and control—and noted the growing regulatory work tied to PFAS (per‑ and polyfluoroalkyl substances). McMahon said PFAS monitoring is increasingly stringent (parts‑per‑trillion detection) and likely to lead to additional testing and treatment obligations over multi‑year timeframes.
To respond to regulatory demands, the recommended budget adds a water‑quality specialist (to oversee sampling, cross‑connection and backflow programs and regulatory coordination) and a water operator to increase certified operator capacity and support valve‑exercising and other maintenance programs. The utilities capital program includes about 10 sewer projects and 20 water projects over the two years, with combined CIP averages near $15 million annually across water and sewer in the near term.
Why it matters: Commissioning the regional plant and the rise of new contaminants such as PFAS will increase operating and compliance requirements for Gilroy, and the budget adds technical staffing intended to reduce implementation risk and support capital planning.

