Los Osos residents file claims, blame CSD for catastrophic failure
January 24, 2023
By KAREN VELIE
At least 13 residents have filed claims against the Los Osos Community Services District seeking financial compensation for mudslide and flood damage to their homes with multiple victims accusing the district of negligence.
Decades ago, contractors built a retention basin at the base of the Cabrillo Estates, a subdivision on a hillside on the way to Montana de Oro. The retention basin was constructed in an attempt to protect neighboring, lower-elevation properties.
However, on Jan. 9, the basin burst, leading to hundreds of thousands of gallons of water and mud crashing into Vista de Oro Estates. A raging river of water and mud filled homes with up to three and a half feet of mud, water and debris.
The raging debris and water flow damaged 20 homes.
The Los Osos district is responsible for upkeep of the retention basin. District staff said they checked the basin on Jan. 9, and it was not full. It is unknown at this time if the district was providing proper upkeep of the basin.
Following the disaster, homeowners discovered their home insurance policies would not cover the damage, because it is related to flooding from a storm.
Because of that, many homeowners are in the middle of the long, tedious process of seeking assistance through the Los Osos district, the Federal Emergency Management Agency, neighbors and nonprofits.
The 13 current claims to the Los Osos district seek damages from under $10,000 to more than $800,000. In the claims, multiple residents accuse the district of not properly maintaining the basin.
“Due to negligent maintenance of a public facility my house was red tagged as unsafe and uninhabitable,” according to the claim for the homeowner at 241 Vista Court. “The structure, property and all personal belongings were destroyed.”
A homeowner at 233 Vista Court is seeking housing for her and her disabled son along with repairs for their home, which was yellow tagged.
“A catastrophic failure of public infrastructure (CSD retention pond) owned and maintained by Los Osos Community Services District resulted in debris, sand and mud to inundate my home,” according to the claim for the homeowner at 233 Vista Court. “I cannot live in my home. I need funds to even begin the remediation process.”
Since the storm, the district’s insurance carrier sent a third-party civil engineer and insurance adjuster to assess the damage.
However, the primary issue for many homeowners is liability: was the basin failure caused by the storm or related to negligent maintenance. If the district failed to properly maintain the basin, it could be financially responsible.
The Los Osos district board is holding a special meeting on Tuesday evening to provide an update and to give direction to staff regarding the damage to the basin and Vista de Oro Estates.
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