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Sewer Authority authorizes contract for Monterra Force Main, conditioned on member agencies’ budget sign‑offs
Summary
After a long governance debate about timing and budget authority, the Sewer Authority Mid‑Coast voted to authorize its general manager to sign a progressive design‑build contract with McGuire & Hester (Option 2, not to exceed $13,228,000) — contingent on each member agency communicating in writing that it will fund the project and on finalizing contract language.
The Sewer Authority Mid‑Coast on Aug. 10 approved authorization for its general manager to enter a progressive design‑build Phase 2 contract with McGuire & Hester for the Monterra Force Main — but only after the board tied the commitment to written budget assurances from each member agency and to completion of final contract language.
Rochelle Lather, principal engineer for SRT Consultants, told the board the project would replace roughly 13,540 feet of aging ductile pipe using a combination of open trench and trenchless methods and that it was required under a 2019 consent decree with the Ecological Rights Foundation. “This is going to extend the useful life of the entire treatment system [and] eliminate risks associated with this pipe,” Lather said during the presentation.
The design‑build team presented two cost options. Rochelle said Option 2 carried an estimated construction cost of about $16.49 million; the staff recommendation to the board was to authorize Phase 2 with McGuire & Hester under Option 2 in a contract capped at $13,228,000 for the contract action being considered that night. She also detailed permit status: coastal, RWQCB 401 and Caltrans encroachment had been issued; San Mateo County encroachment, US Army Corps (deadline 10/25/2026) and Fish & Wildlife streambed alteration were still pending.
Public commenters and several directors pressed for immediate authorization to lock pipe pricing and to avoid escalating material and labor costs. One commenter warned that delays could cost the member agencies an estimated $100,000 a month in additional expense and described public‑safety and environmental risks of postponement.
Directors split on process. Some argued the contract should be signed promptly to avoid price escalation and to comply with the consent decree timeline. Others said the Joint Powers Agreement and standard budgeting practice require that each member agency either approve a midyear budget amendment or provide explicit written confirmation that it will fund the project before SAM (the JPA) obligates itself to expenditures beyond the current budget. Legal counsel Jeremy advised several drafting options and agreed language could be structured to reflect the board’s conditional approval.
The board ultimately approved a motion — moved by Director Nancy (speaker 7) and seconded on the floor — authorizing the general manager to distribute the budget amendment request to member agencies and to sign the McGuire & Hester Option 2 contract (not to exceed $13,228,000), contingent on: (1) each member agency communicating in writing that it has or will fund the project consistent with Option 2; and (2) finalization of contract language and counsel’s recommendations. The motion passed by roll call.
Next steps: SAM staff will circulate the budget amendment materials to member agencies and seek written funding confirmations; procurement and contract finalization will continue with the contractor and counsel pending those confirmations.
