San Simeon working on dissolution while officials jump ship

February 17, 2025

By KAREN VELIE

Amid a more than one year attempt to close the San Simeon Community Services District, the interim general manager announced plans to resign in April while only four board members remain, several of whom plan to leave before the end of the year.

Plagued by years of mismanagement, the San Simeon Community Services District Board of Directors voted unanimously in March 2024 to dissolve the district. District officials want the county to take over all services.

The district then prepared and sent a formal application for dissolution to the San Luis Obispo Local Agency Formation Commission (LAFCO). San Simeon is asking the county to take over services in the district’s boundaries.

The proposed new county service area would resemble the present San Simeon Community Services District. It would provide the same services: water, wastewater, road maintenance, street lighting, and weed abatement.

Following a 30-day review, LAFCO reported it could not finish processing the application because it was inadequate. The San Luis Obispo County Board of Supervisors then voted to proceed with a study to dissolve the district and either make it a county service area or have it merge with Cambria.

However, the study and final dissolution could take several years, while the district risks instability because of a lack of leadership and staff.