The Los Osos Wastewater Facility was completed in April 2016.
The Los Osos Wastewater Facility was completed in April 2016.

County Reaches Settlement Agreement with Los Osos Sewer Contractor

Author: Administrative Office
Date: 2/14/2018 8:58:30 AM

The County reached a $9.95 million settlement agreement with ARB, Inc., one of the contractors for the Los Osos wastewater collection system.


The County of San Luis Obispo announced today that it has reached a $9.95 million settlement agreement with ARB, Inc., one of the contractors for the Los Osos wastewater collection system project.

The topic is on the Feb. 20 Board of Supervisors’ meeting agenda, which is currently available on the County’s website.

“This settlement concludes the main construction component of the Los Osos Wastewater Project,” said CAO Wade Horton. “We have the best interest of Los Osos residents in mind. Trying this case in court would take significant time and money and wouldn’t benefit the people of Los Osos.”

The County contracted with ARB, Inc. and three other prime contractors to complete the Los Osos Wastewater Project, which consisted of installing 50 miles of pipeline, 21 pump stations, and a state-of-the-art wastewater recycling plant to address groundwater pollution issues.

The County had originally awarded ARB, Inc, the lowest responsible bidder, the contract for about $26 million. ARB, Inc. subsequently sued the County for about $23 million in damages regarding disagreements in the execution of project work. The case ultimately settled at $9.95 million.

The County is working with State and Federal partners to explore low-interest funding options in an effort to avoid potential rate increases in Los Osos due to this settlement.

For more information, read the staff report online. 

For media inquiries, please call CAO Wade Horton at (805) 781-5011.