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Committee approves $57 million ocean‑outfall contract extension; officials say item is budgeted and will not immediately affect rates

2577989 · March 12, 2025
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Summary

The Appropriations Committee carried an item to extend water and sewer ocean outfall contracts with a $57 million authorization; county utilities staff said the amount is included in the current budget and the item itself will not materially change rate payers' bills, though future revenue bonds for related projects will affect rates when issued.

Roy Coley, Chief Utilities and Regulatory Services Officer, told the Appropriations Committee that the item to extend contracts for the water and sewer ocean outfall program covers work that is already included in the department's current budget and four‑year plan.

Coley said the $57 million requested in the item is part of the current budget and work plan. "To your question, Madam Chairman, yes. The cost that's associated with this is in our current budget. It's part of our current work plan," Coley said.

Coley discussed rate implications and said the item itself will not have a material impact on rates. He explained that larger projects in the ocean outfall plan are financed when needed via revenue bonds, and those bonds will have rate impacts at the times they are issued. "That item in and of itself will not have a material impact on the rates. The projects that this item will be managing does impact our rates," Coley said.

The committee moved and carried item 3M; the transcript records the item as carried. Committee members asked clarifying questions about budget and rate impacts and staff confirmed current budget coverage. The county did not provide project‑level contract documents in the hearing excerpt; staff said the work relates to compliance and outfall program management.