Oceano water sale rejected
February 10, 2011
After hours of public comments and debate, the members of the Oceano Service District on Wednesday voted 3-2 against the sale of 100 acre feet of water to Pismo Beach.
Oceano is in serious financial trouble with failing infrastructure and an almost non-existent reserve fund. The deal would have permanently sold 100 acre feet of Oceano’s yearly water allotment and provided the district the funds to fix an aged and leaky system of pipes.
To help sweeten the deal, the developer of the Los Robles Del Mar residential project just outside Pismo Beach had offered to pay almost $2 million in a onetime payment and connection fees.
Critics of the deal argued that the sale could lead to future shortages, the people should have a vote and/or that the board was not knowledgeable enough to make the deal.
The district is still bargaining with another Pismo Beach developer and the city of Arroyo Grande about two unrelated proposed water purchases.
Oceano residents recently filed a petition with the San Luis Obispo County Clerk Recorder saying that any future water sale requires a vote of the people. On Feb. 23, the board will vote on the petition.
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