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Board asks staff to engage Monterey-One Water on returning Pajaro-area sewer billing to direct billing
Summary
Public Works presented three options for sewer billing for Pajaro County Sanitation District and CSA 75: return to Monterey-One Water (M1W) third-party billing, have the county manage direct billing (estimated first-year cost ~$185,000), or explore other third-party vendors; staff recommended engaging M1W and the board agreed unanimously.
Public Works presented options Aug. 11 for how the county should handle sewer service billing for Pajaro County Sanitation District (PCSD) and County Service Area 75 (CSA 75) after Monterey-One Water (M1W) discontinued external billing in 2024 and the county moved assessments to the property-tax roll.
Director Randall Ishee summarized two principal concerns raised by ratepayers: the risk that sewer charges consolidated on the county property-tax roll could lead to homeowner confusion and potential tax-foreclosure consequences, and the strong preference among some ratepayers to return to monthly direct billing. Staff outlined three options: (1) return billing to M1W (requires negotiation, execution of a new agreement and ordinance amendments); (2) have the county perform direct billing (would require at least one accounting technician at an estimated annual cost of $155,630 plus one-time billing software costing roughly $10,000–$20,000, and ongoing licensing and staff costs bringing a rough $185,000 first-year estimate); or (3) pursue other third-party billing alternatives.
Ishee noted M1W is undergoing its own software transition and estimated M1W’s earliest capacity for new accounts as spring 2027. Staff recommended engaging M1W to assess capacity and cost; the board directed staff to move forward with that engagement unanimously.
