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Sewer Authority accepts Q2 financial report; board warned CM force‑main costs could more than double
Summary
On March 23 the Sewer Authority Mid Coastide voted unanimously to accept its Q2 fiscal 2025–26 financial report. Staff said assessments and collections are on target but cautioned a major CM force‑main refurbishment currently budgeted in phases could rise from the report’s $6.5M estimate to roughly $13–14M overall.
The Sewer Authority Mid Coastide on March 23 accepted its quarterly financial report for the second quarter of fiscal year 2025–26 following a finance committee recommendation and a roll‑call vote.
George Evans, the authority’s finance officer, presented the packet and told directors the assessment revenues are “right on” and that the fund balance is sufficient “for what we’re doing on a daily basis,” while some categories show midyear overages because annual charges are paid early in the fiscal year. He said personnel costs were roughly 2% under projection and non‑personnel categories were about 6% over, producing a net midyear variance the report flags as $348,000 over budget.
Board members urged clearer wording and footnotes in future reports to explain timing assumptions and to avoid misleading phrasing such as “over budget” when annual payments inflate midyear percentages.
The discussion also flagged the CM force‑main refurbishment in the Montara segment as a material budget risk. Staff said the remaining project budget in the current year is $5 million and the report lists an estimated completion amount of $6.5 million for this fiscal year; final contract pricing (the GMP) will not be known until the contractor completes progressive design in May or June. Staff and at least one board member said the full construction cost could be as high as $13–14 million, noting that some costs are budgeted in future years and any shortfall would be allocated to the three member agencies by flow share as already reflected in the CIP assumptions.
After questions and discussion the board moved, seconded and—by roll call—voted to accept the Q2 financial report. The roll call recorded the following affirmatives: Director Rak; Director Dy; Director Boy; Dr. Negas; Dr. BS; and Chances. The motion carried.
The authority will revisit project line items during the upcoming budget process and the finance committee will present further refinements; staff said they expect the contractor’s GMP and a recommended course of action by May or June.
Actions recorded: the board formally accepted the quarterly financial report for Q2 FY2025–26; no amendments were made during the meeting.
