The Santa Barbara County Board of Supervisors approved a no-interest loan of $750,000 for Los Olivos to complete most of the design for its community sewer project despite pleas from opponents to reject the request.

Supervisors unanimously voted Tuesday morning to approve the loan for the Los Olivos Community Services District which continues to work toward crafting the solution for collecting, treating and disposing of wastewater to replace septic tanks. 

The new funds would help pay for the CSD’s consultant to complete the 90% design for the project to send sewage to the Solvang wastewater treatment plant.

For five decades, regulators have labeled Los Olivos a special problem area due to nitrates found in groundwater and blamed it on septic tanks. A push for a replacement led voters to create the CSD so local residents could decide on their own septic-to-sewer solution.

“If this all falls apart, ultimately my fear is that the county is going to be stuck with this,” said Third District Supervisor Joan Hartmann. “The residents of Los Olivos, most of whom in my estimation support this project, want it to move on, are going to have to bear the costs.”

Since the CSD’s formation, the five-member board has explored various options before deeming the Solvang alternative as the preferred solution. 

Without a solution, septic tank owners responsible for discharges contaminating local groundwater could face fines from regulators, much like what occurred in Los Osos in western San Luis Obispo County. 

“I’m really pleading with you to allow the elected body that speaks for the community, that has had all these meetings, to go forward with what they’re asking,” Hartmann said. 

The Central Coast Regional Quality Control Board has made clear that operating a wastewater treatment system is very complex especially for a small agency like Los Olivos, she added.

Board of Supervisors Chair Bob Nelson, who represents the Fourth District including Orcutt, asked if the Los Olivos CSD should wait to spend the money after the Nov. 3 election where three seats are up for grabs.

“It’s a very expensive project. I have some deep concerns about delivering their sewage to Solvang. I know what it’s like to be under the control of another city in an unincorporated area so I think that is potentially concerning,” Nelson said.

But Hartmann said she supported moving forward to get the 90% design completed,

“I have confidence that the existing board members will be elected,” Hartmann said. 

Incumbents Lisa Palmer, Greg Parks and Julie Kennedy are seeking re-election against challengers Fred Razo, a retired school administrator, and Brad Saarloos, a business owner and father. 

The top three vote-getters will be elected to the four-year terms and take office in December. 

Kennedy, current CSD Board president, said the five members reached the proposed solution after considering various factors. 

“All of this was based on three key concerns that the community has expressed over and over again — cost, growth and local control,” Kennedy said. 

Three opponents, who contend the groundwater is not at a public health risk, urged the board to deny the loan. 

“I’ve spoken at many Los Olivos CSD meetings asking for the same thing — for this process to slow down, identify the actual problem, exhaust the meaningful alternatives and then, and only then, choose the solution,” said Keith Saarloos, a farmer, business owner, property owner and Los Olivos resident. “Those requests have largely fallen upon deaf ears.”

Instead of the Solvang solution, Saarloos said Los Olivos should look to smaller local systems and decentralized treatment.

“We can solve these wastewater problems locally without making Solvang our only option,” Saarloos said.

“If Solvang is the answer then show us unequivocally. But please do not spend $750,000 engineering an answer before we have finished asking the question,” Saarloos added.

Another opponent suggested Los Olivos CSD’s board has rushed to decide its wastewater solution.

“This has been going on so long it was interesting to hear about fast-tracking and pushing things through when I think this has been going on since I’ve been here almost,” said Fifth District Supervisor Steve Lavagnino, who is wrapping up his 16th year on the board. 

Once completed, the 90% design will lead to the estimates for how much the wastewater project would cost parcel owners. 

In 2027, the CSD hopes to hold a Proposition 218 hearing to determine if the majority of property owners for 372 parcels support or oppose the septic tank solution and proceed toward building the project.

The Los Olivos CSD also hopes to land $30 million in federal funds for the new septic-to-sewer project with the House of Representatives on Sept. 16 passing a bipartisan bill containing the money among more than $66 million for Central Coast water projects. The bill now heads to the U.S. Senate for consideration.