Board votes to quit, close San Simeon services district
March 16, 2024
By KAREN VELIE
Plagued by years of mismanagement, the San Simeon Community Services District Board of Directors voted unanimously on Friday to dissolve the district.
Formed in 1961, the San Simeon district currently provides water, sewer, street lighting and road maintenance for approximately 462 residents and up to 1,500 transient visitors. District officials want the county to take over all services.
However, that will take time. The next step is for the district to prepare a formal application for dissolution to submit to the San Luis Obispo Local Agency Formation Commission (LAFCO). After LAFCO accepts the application, SLO County Pubic Works will need to produce a study and cost analysis report for the SLO County Board of Supervisors to approve. LAFCO will then need to approve the application.
The process could easily take nine or more months to accomplish, though many believe it is the only solution.
At a projected cost of up to $10 million, the California Coastal Commission has ordered the district to move its wastewater treatment plant further away from the ocean. Because of past misconduct, the state is wary to approve grant funding to the district. The county, however, would be more likely to procure grant funding, according to the staff report.
In addition to financial concerns, the district has had difficulty getting residents to serve on the Board of Directors. Currently, there are only four directors on the five member board.
During the past 10 years, the district has faced investigations and penalties because of multiple conflicts of interest. Last year, a San Simeon official settled a lawsuit with the SLO County District Attorney’s Office for illegal business practices and false advertising.
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