Los Osos : Sewer Controversy II Part

In August 2005, the CSD began building a sewer at the Tri-W site, contractors began work on the project and were advanced payments from State Revolving Fund loan. Following a recall election which replaced the majority of the CSD board and enacted an initiative measure that would require relocation of the project, the new board stopped building the sewer, despite a letter warning them of severe consequences from the Regional Water Quality Control Board. Due to the action of the new CSD board, the costs of the sewer project have greatly increased.

In October 2005, the CSD defaulted on a low interest State Revolving Fund loan and the state subsequently refused to disburse additional funds and demanded immediate repayment. Project contractors filed suit for more than $23 million in lost profits and costs. State and regional water boards have used their regulatory power to impose fines against the district in the amount of $6.6 million for water pollution resulting from septic tank discharge of more than 1 million gallons per day. During February 2006 the Regional Water Quality Control Board, a state agency, threatened it would begin to issue cease and desist orders to citizens of Los Osos, and may require recipients to pump their septic systems every three years, and to stop using them by 2011.

 

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