The county board of supervisors discussed the dissolution of the San Simeon CSD in its meeting on Tuesday.
The CSD applied for dissolution in May 2024, and its application is still on hold as some information is still needed for completion. Staff presented the board of supervisors with different options for assuming CSD responsibility, as there is a critical need to supply water and wastewater to San Simeon residents should the CSD dissolve. These options include the county assuming obligations, the Cambria CSD consolidating with San Simeon, or state involvement. The board, and members of the public, voted to pursue a parallel path, ideally with the estimated costs of $40 to $50 million in infrastructure improvements shared with the state and other entities. Gibson moved to direct staff to develop a feasible plan of services for water and wastewater services for the San Simeon CSD, and the motion was approved unanimously.
Application is still on hold from LAFCO’s requests.
County has contracted NBS to evaluate the CSD’s potential successor agencies and infrastructure needs
Jurisdictions that will assume responsibilities may be negotiated the CSD’s property tax revenue
Roads funded by tax revenue.
Alternatives are county funding, abandoning it, private funding, or a separate tax.
Goes on to describe other services provided by the district. Lights, weed abatement, water & sewer
And how these will be paid for if the CSD dissolves.
Water is particularly a critical need
Aging infrastructure
Reservoir needs replacement. Fire flow issue.
22 million for rehabilitation. 36 million for desalinization plant. Current rates are insufficient for both.
Wastewater is in better condition, but is still aging.
California coastal commission requires relocation of the treatment plan by July 2029.
Current rates are insufficient to continue service indefinitely.
Big decision is which agency will provide water and sewer services.
Property tax revenue will need to be “divided” into new jurisdictions.
Utility rates will need to be established.
Utility rate increases are required.
District should continue to operate in the next 6 to 18 months, via cal-warn agreement.
Cooperatively define services structure with potential successor agency:
County CSA, Cambria CSD.
Service level options (not mutually exclusive):
County service area
County becomes successor agency, assumes responsibility.
Collaborate towards Cambria CSD consolidation
The closest agency. But consolidation would require both Cambria CSD and LAFCO approval.
Research capacity, infrastructure upgrades.
State involvement?
Whether the state could assume or support service delivery.
A longer term option, potentially
No action
Does not resolve underlying issues.
Financial considerations
SSCSD currently has a revenue of 1.6 million per year.
Capital project needs and total liabilities make up about 55.1 million
Speakers of the public sound to be in support
And want a multi-pronged effort. Not just one jurisdiction taking over for the CSD.
