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Los Osos wastewater treatment plant contractor settles for $10 million

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Courtesy of San Luis Obispo County
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After years of controversy, the treatment plant went online in 2016.

San Luis Obispo County announced a $10 million dollar settlement this week related to the Los Osos Wastewater Project. 

After the project was completed, one of the pipeline contractors sued the county. According to the county’s chief administrator, Wade Horton, the company sued over "disagreements in the prosecution of the project work." 

In February 2014, ARB Inc sued the county for $23 million in damages. Four years later, the case went into arbitration and the county opted not to take the case to court. Horton says to do so would waste time and money and wouldn’t benefit the residents of Los Osos.

Next week the county board of supervisors will consider paying the settlement from a general fund account. The county says it’s looking at other ways to pay for the settlement than raising rates for Los Osos wastewater customers.

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