John Wallace steps down from sanitation district
February 21, 2013
Amid allegations of mismanagement, South San Luis Obispo County Sanitation District Administrator John Wallace announced his retirement at Wednesday’s board meeting.
During a closed session to discuss his performance, Wallace said he would be resigning after 27 years with the district.
Wallace is the chief administrator of the district and also owner and president of the Wallace Group, a private engineering consulting firm located in San Luis Obispo that receives between $50,000 and $80,000 a month from the district for a variety of engineering services.
The sanitation district, which serves the residents of the Oceano Community Service District, Arroyo Grande and Grover Beach, is governed by a three person board consisting of one representative from each community. Grover Beach Mayor Debbie Peterson had recently asked for a complete audit of the district’s finances and a review of Wallace’s performance.
In October, the state levied a $1.1 million fine against the district because of a 2010 sewage spill determined to be caused by Wallace’s mismanagement. The district is facing additional fines for three releases of improperly treated sewage into the Pacific Ocean during the second half of 2012.
The district board later appointed an interim administrator, retired engineer Paul Karp.