Arroyo Grande Development News

City Council Supports Conceptual Plan for Canyon Crest Wastewater Consolidation

The City Council considered a pre-application for Canyon Crest HOA to consolidate wastewater from their 54 homes and connect to the City's sewer infrastructure for treatment at the Sanitation District's facility in Oceano. This is proposed as a solution to a regional water quality control board notice of violation for elevated nitrate concentrations in groundwater due to the development's current septic system. The preferred option involves installing approximately 1,000 linear feet of sewer pipe, with startup costs estimated between $700,000 and $1 million, and annual operating costs of $50,000 to $60,000. The project requires annexation into the Sanitation District's service area, not city annexation. The City's role would be to allow wastewater passage and provide billing, with potential fees and contributions for city infrastructure upgrades to be determined during the MOU process. Council expressed conceptual support for further studies, emphasizing that city taxpayers should not bear any costs and that the applicant must cover all fiscal and legal risks. Key considerations include capacity impact on city infrastructure, potential buy-in costs for current ratepayer equity, and indemnifications.