Board directs staff to negotiate community‑funded path for Cabrillo Estates sewer project

The San Luis Obispo County Board of Supervisors directed staff on May 5 to pursue a community‑funded approach for a proposed Cabrillo Estates sewer collection project in Los Osos, asking county teams to negotiate a reimbursement agreement or work with the Los Osos Community Services District rather than commit general‑fund dollars up front.

The decision followed a presentation by Deputy Director Courtney Howard of Public Works, who described a two‑step concept: hire a staff person and complete preliminary design and community engagement (an estimated upfront general‑fund need of roughly $1 million), then move to a Proposition 218 assessment vote for property owners to repay construction costs over time. Howard said earlier engineering polling showed about 75% of responding property owners supported exploring a sewer connection rather than installing advanced septic systems required in nitrate‑sensitive areas.

Why the board acted: Supervisors and staff framed the choice as balancing environmental and regulatory pressures with financial risk. Public Works told the board the Los Osos recycled‑water facility can accept flows from an extended collection system, but the county does not currently have budget or staffing dedicated to leading such projects. Several residents and experts urged caution: speakers warned of uncertain total costs, potential further demands on wastewater treatment uses, and the difficulty of retrofitting some small lots. Michael Simpkins, speaking for the Cabrillo Estates property owners association, said a detailed community straw poll and town halls showed substantial owner interest in exploring a sewer assessment vote.

Supervisor Renae Moreno moved the board direct staff to pursue options that would require the community to front the initial study costs (a reimbursement agreement) or to work with the local CSD to achieve the necessary financing and infrastructure coordination. Several supervisors said they were reluctant to put large general‑fund sums at risk now but wanted staff and the community to continue work to refine cost, financing and grant strategies. The motion passed on a roll call vote.

What happens next: Staff will return with a proposed reimbursement agreement process and with options to partner with the Los Osos Community Services District. The recommendation preserves staff authority to seek grants and other financing but signals the board’s preference for a community‑funded first step rather than a county‑fronted program. Supervisors emphasized that subsequent phases would be contingent on engineering refinements, successful assessment votes, and available grant or low‑interest loan support.

The board’s direction stops short of authorizing county capital investment beyond negotiation and planning tasks; it dovetails with countywide concerns about nitrate‑sensitive LAMP areas and a growing list of communities that may face similar decisions. The county’s next steps include drafting a reimbursement agreement template, defining staffing and refund mechanics, and returning with proposed language and a timeline for any subsequent board approvals.