Directors debate whether to budget Montara force‑main at CIP amount or publish larger estimate up front

Board members spent significant time discussing planning and communication around the Montara sewer force‑main, a multi‑year infrastructure item in the five‑year CIP.

Staff told the board that the FY 2026–27 budget includes $3.5 million for the Montara force‑main based on the adopted five‑year CIP. Staff emphasized that a contractor’s guaranteed maximum price (GMP) will not be available until it completes the design and provides pricing—expected around May–June—so the board does not yet have a final figure. Staff also explained that construction‑services costs (bid or RFP results) could add roughly 10% to the contractor price.

Several directors and member‑agency managers suggested budgeting a larger amount up front to reflect current cost pressures and to improve transparency for ratepayers; figures discussed in the meeting and finance committee ranged from about $10 million to $13–15 million as possible total project cost scenarios. Others urged caution and recommended waiting for the contractor GMP to avoid misleading ratepayers and to preserve the budget process for member‑agency review. The board agreed to send the proposed budget to member agencies for review and consider a budget adjustment once firm pricing is available.

The board and staff noted statutory and practical options for financing such a large project, including multi‑year rate measures (218 processes), drawing on reserves, or phasing work and financing to spread cost impacts.

Next steps: staff will continue design and procurement work, share firm GMP information when available, and return proposed budget adjustments if required prior to final adoption.