Monta board consents to SAM’s $11.55 million general budget and approves $912,000 collections contract; FEMA funds acknowledged

The Monta Water and Sanitary District Board of Directors on April 2 voted unanimously to consent to the Sewer Authority Mid-Coastside (SAM) FY 2026–27 general budget and to adopt the SAM collections (cleaning) contract budget, actions the board said were necessary to allow member-agency budgeting and continuity of sewer operations.

The board’s consent covered SAM’s proposed general budget for the July 1, 2026–June 30, 2027 fiscal year, which staff described as a roughly $1.5 million (about 15 percent) increase from the prior year to approximately $11.55 million. Staff said the increases are driven primarily by infrastructure spending — including work on a sewer force main in Monta that must be completed by June 30, 2027 — higher wages and benefits tied to a recently negotiated Local 39 memorandum of understanding, and rising insurance and utility costs. "The proposed 2627 budget for SAM ensures we continue providing safe, compliant service while addressing critical repairs to our infrastructure," SAM presenter Kishan said during the meeting.

Separately, the board approved the SAM collections/cleaning budget, which staff said increases by about $149,000 (roughly 20 percent) to a total of $912,000. Staff attributed most of that rise to wage and benefit increases under the Local 39 contract and to higher personnel-related costs for a four-person collections crew that performs line cleaning, hotspot cleaning, lift-station maintenance and emergency callouts.

Board members repeatedly emphasized that the member-agency vote was consenting to the SAM budgets for distribution and that individual capital projects and line-item authorizations would be subject to further review. "I want to be really clear that this is approving the budget. This is not approving specific line item projects," the presiding officer said before the roll call vote.

Votes at a glance - Consent to SAM FY 2026–27 general budget (resolution consenting to approval): passed by roll call, 5–0. - SAM collections/cleaning contract budget (adopted): passed by roll call, 5–0. - Consent agenda (earlier, procedural): passed 5–0. - Nomination of Katherine Slater Carter to county LAFCO (special district member): passed 4–0 (Director Young absent).

Fiscal and program details discussed during the presentation included a reported infrastructure allocation near $2.5 million, wages and benefits around $2.1 million, and legal and professional services near $1 million. Staff described efforts to reduce costs through grant pursuit (including FEMA), participation in a Bay Area chemical purchasing consortium, and a solar project under development. Staff also reported an estimated increase in unfunded pension liabilities for classic CalPERS members (~$401,000), with final CalPERS numbers expected in June.

The board also acknowledged the receipt of FEMA disaster funds routed through SAM — staff said the district recently accepted an additional $131,000, bringing cumulative FEMA-related funds received in this program to about $1.719 million — and authorized staff to remit those proceeds to SAM for eligible projects.

What’s next: Staff will continue the capital planning process and return to the finance committee and the full board for project-level approvals and any remaining budget refinements ahead of the July 1 fiscal-year deadlines.