Title
a. Authorize the Auditor-Controller to transfer up to $1,024,907 from Pajaro County Sanitation District, Fund 151, Deferred Revenue Balance Sheet Account 2875-CDAA to Chualar Service Area 75, Fund 093, Deferred Revenue Balance Sheet Account 2875-CDAA (4/5ths vote required); and
b. Authorize the Auditor-Controller to amend the Fiscal Year 2025-26 Adopted Budget for Chualar Service Area 75, Fund 093, Appropriation Unit PFP046, increasing appropriations by $1,024,907 funded by an increase in revenue of $1,024,907 from California Disaster Assistance Act to fund the completion of Chualar Wastewater Plant storm repairs incurred during January 2023 storm (4/5ths vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Auditor-Controller to transfer up to $1,024,907 from Pajaro County Sanitation District, Fund 151, Deferred Revenue Balance Sheet Account 2875-CDAA to Chualar Service Area 75, Fund 093, Deferred Revenue Balance Sheet Account 2875-CDAA (4/5ths vote required); and
b. Authorize the Auditor-Controller to amend the Fiscal Year 2025-26 Adopted Budget for Chualar Service Area 75, Fund 093, Appropriation Unit PFP046, increasing appropriations by $1,024,907, funded by an increase in revenue of $1,024,907 from California Disaster Assistance Act to fund the completion of Chualar Wastewater Plant storm repairs incurred during January 2023 storm (4/5th vote required).
SUMMARY
On January 11, 2023, during a severe winter storm, the Chualar Wastewater Treatment Plant (WWTP) was fully inundated with flood water from the Salinas River. Staff assessed the facility following the flooding event and found that multiple components of the Chualar WWTP were damaged including interior and exterior pond embankments, access roads, the sewer force main, security fencing, monitoring wells, transfer and inlet pipes, headworks and surrounding fencing, electrical panel and circuits, and the controls system. To date, repairs have been completed for most of the Chualar WWTP infrastructure; however, electrical component repairs are still outstanding.
DISCUSSION:
The Chualar WWTP is permitted to operate under General Waste Discharge Requirements Order No. R3-2020-0020 (Order No. R3-2020-0020) issued by the State of California. The Chualar WWTP received a Notice of Applicability for enrollment in Order No. R3-2020-0020 on September 20, 2022, and the Chualar WWTP was undergoing upgrades to meet the water quality requirements prior to the 2023 Winter Storms.
On January 11, 2023, during a severe winter storm, the Chualar Wastewater Treatment Plant (WWTP) was fully inundated with flood water from the Salinas River. Staff assessed the facility and attempted to begin repairs once flood water receded; however, on March 11th, 2023, an upstream portion of a Salinas River levee failed, and on March 12th, 2023, the facility was again fully inundated by flood waters. Once flood water abated in April 2024 staff assessed the facility and began identifying required system repairs. Multiple components of the Chualar WWTP were damaged including interior and exterior pond embankments, access roads, the sewer force main, security fencing, monitoring wells, transfer and inlet pipes, headworks and surrounding fencing, electrical panel and circuits, and the controls system. To date, repairs have been completed for most of the Chualar WWTP infrastructure; however, repairs to the electrical components are still outstanding. Final repairs include installation of the aerator system, electrical system, and controls system, calibration of controls system components, and destruction of abandoned monitoring wells and riser pipes.
Prior to the 2023 Winter Storms, the Chualar WWTP facility had 100-amp, 120-volt, single-phase utility power which operated a single aerator and controls. However, to meet the water quality requirement of the current permit, new larger pond aerators are needed. The electrical need for the new aerators and controls require the facility electrical system be upgraded to 100-amp, 480-volt, three-phase utility power. County staff submitted an Electrical Extension Agreement application to Pacific Gas & Electric on April 1, 2025, to upgrade the utility power from single-phase to three-phase power and the agreement has been approved. In addition to upgrading the utility power, several electrical and control system upgrades are needed at the Chualar WWTP, including: installing new electrical outlets, conduits, and panels; purchasing and installing three new 10-hp aerators; purchasing and installing wastewater monitoring probes; constructing an elevated structure to support the electrical and control panels; upgrading the controls system; and destroying abandoned monitoring wells and riser pipes. Estimated time to complete these repairs is four to six months at an estimated total cost of $1.7 million.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
On January 27th, 2026, the Board of Supervisors acting as the Board of Directors of the Pajaro County Sanitation District authorized the Auditor-Controller to transfer up to $1,024,907 from the Pajaro County Sanitation District, Fund 151, Deferred Revenue Balance Sheet Account 2875-CDAA to Chualar Service Area 75, Fund 093, Deferred Revenue Balance Sheet Account 2875-CDAA.
FINANCING:
Following the January 2023 storm events, the County received California Disaster Assistance Act (CDAA) funding to support storm-related repairs in both the Pajaro and Chualar service areas. The State did not provide a project-specific allocation, so staff initially distributed the funds between the two service areas based on early project manager estimates of the anticipated repair needs in each location. As repairs have progressed, updated assessments show that the Chualar Wastewater Treatment Plant requires a significantly higher level of investment to complete the remaining electrical and controls system work.
The recommended transfer of up to $1,024,907 in CDAA deferred revenue from the Pajaro County Sanitation District to Chualar Service Area 75 realigns available funding with the actual storm-related repair costs and ensures sufficient resources to complete the Chualar project. If approved, appropriations for CSA 75 (Fund 093, Appropriation Unit PFP046) will increase by $1,024,907, offset by the increased CDAA revenue. The transfer will reduce the Pajaro CDAA deferred revenue balance from $1,840,647 to $815,740. There is no impact to the General Fund.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This recommendation advances the Board’s goals for Sustainable Infrastructure and Safe and Resilient Communities by ensuring critical wastewater infrastructure is fully restored, modernized, and capable of withstanding future storm events. Reallocating available disaster recovery resources allows the County to complete essential repairs and maintain reliable service for the Chualar community.
Well-Being and Quality of Life
X Sustainable Infrastructure for the Present and Future
X Safe and Resilient Communities
Diverse and Thriving Economy
Prepared by: Mitchell Vernon, Project Manager II
Reviewed by: Enrique Saavedra, PE, Chief of Public Works
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
Attachments:
Attachment A - CSA 75 FY 2025-26 Financial Summary
Attachment B - CSA 75 LAFCO Map