Plan to Expand Port San Luis Harbor District Boundaries Rejected

County residents voice opposition to having all residents pay for Avila Beach maintenance projects

Mar. 25, 2026 at 5:57am

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The San Luis Obispo Local Agency Formation Commission (LAFCO) has rejected a plan to expand the boundaries of the Port San Luis Harbor District after multiple residents opposed having all county residents pay for maintenance projects in Avila Beach. Commissioners questioned the claim that many residents throughout the county recreate in Avila Beach and raised concerns about the harbor district's financial woes and potential use of funds for offshore wind energy operations.

Why it matters

The decision highlights ongoing tensions between coastal communities and the broader county over funding responsibilities for local infrastructure and development projects. It also reflects concerns about the potential industrialization of Port San Luis to support offshore wind energy, which some residents oppose.

The details

LAFCO staff had determined the harbor district was likely to face financial deficits in the future due to maintenance and repair needs. Commissioners from both LAFCO and the harbor district arrived at the plan to increase the size of the harbor district, which could lead to increased tax revenue. However, during the LAFCO meeting, six public speakers opposed the increase in harbor district boundaries, with concerns about Avila Beach residents being subsidized by the rest of the county and potential use of funds for offshore wind energy operations.

  • The LAFCO review of harbor district services and sphere of influence boundaries occurs every five years.
  • The LAFCO meeting where the boundary expansion plan was rejected took place on March 19, 2026.

The players

San Luis Obispo Local Agency Formation Commission (LAFCO)

The local government agency responsible for reviewing the boundaries and services of special districts in San Luis Obispo County.

Port San Luis Harbor District

The special district that manages the Port San Luis harbor and surrounding areas in Avila Beach, California.

Dawn Ortiz-Legg

A San Luis Obispo County Supervisor who was the lone LAFCO commissioner in favor of expanding the harbor district's boundaries, arguing for the potential of revenue from offshore wind energy operations.

Sheri Hafer

An Atascadero resident who opposed the boundary expansion, arguing it was unfair for all county residents to pay for maintenance projects in Avila Beach.

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What they’re saying

“It does not seem fair to support Avila Beach when other coastal communities also have financial issues. Are they planning to increase revenue to support an offshore wind energy operations and maintenance port? They need to answer that question.”

— Sheri Hafer, Atascadero resident

“Avila was an industrial port initially. For so many years, Port San Luis was investigating is there potential for revenue to be able to address our infrastructure needs and to be able to help us to be an electrified port or do all the modern things possible.”

— Dawn Ortiz-Legg, San Luis Obispo County Supervisor

What’s next

The LAFCO Board voted unanimously to eliminate the plan to change the sphere of influence boundaries and instead bring back the review of harbor district services.

The takeaway

This decision reflects ongoing tensions between coastal communities and the broader county over funding responsibilities for local infrastructure. It also highlights concerns about the potential industrialization of Port San Luis to support offshore wind energy, which some residents oppose despite the county supervisor's support for exploring that revenue opportunity.