Front Page  »  

Paavo Ogren leaving county for Oceano manager position

May 9, 2014
Paavo Ogren

Paavo Ogren

By KAREN VELIE

San Luis Obispo County Director of Public Works Paavo Ogren is slated to exit his county job for the position of Oceano Community Services District manager, according to the district’s website.

Ogren approached district officials requesting the position at a yearly base salary of $196,000 a year. Ogren’s predecessors Lonnie Curtis and Tom Geaslen’s base salaries were set at $126,000 a year. Raffaele Montemurro, who was terminated in 2011, had a base salary of $87,500.

Touting his experience in finance and accounting, Ogren requested the district manager salary and another $65,000 for the district accountant position in order to arrive at the $196,000 base salary.

Nevertheless, under former district manager Raffaele Montemurro, the district did not have an in-house accountant. Then, under Geaslen, a district accountant position was created without board approval for 30 hours a week at $30 an hour, or $46,800 a year.

In addition, government bodies do not generally permit the manager who signs checks to also produce the accounting and the checks because of check and balances protocols.

The district is currently running more than $170,000 over budget, according to the district’s warrants. In order to cover Ogren’s salary, the board could elect to sell excess water or raise utility rates.

In his present position, Ogren oversees 180 county employees. Oceano currently has six employees, three of whom work in the office and three of whom work in the utility yard.

Since 2006, nine people have held the Oceano district manager position.


Loading...
Subjects:             
Related:


42 Comments
Inline Feedbacks
View all comments

Hooray! another dysfunctional SLO county government entity on the road to ruin. Then when the last drop of self worth and money is sucked out, and the future of the un engaged mindless minions is mortgaged to endless payments to Paavo’s big business buddies that now owns their lifeblood. The State will take over and Paavo the magnificent will rejoin the County and charge in to save the day!

I love a good sequel… Get the popcorn!


0

The pay is ridiculous. Nobody at that little district should get anything close to that. Guess they just pass it along to the ratepayers.


0

Selling Water To Pay $196,000 + Benefits Contract.


Water is the key for the revitalization of the community. It will help encourage growth and development that will bring jobs and help all residents in our community.


The Directors with a budget in the red, long term loan to just pay bills, on top of a 25% rate increase are making a strategic mistake if they approve this contract.


This contract will doom Oceano for decades of struggles, when smart logical planning and real leadership with a clear vision for the future can bring real positive changes.


Do we have some Directors who will stand up and support the common good for Oceano.


Clearly this contract is even bigger than the $196,000 , it becomes that Profiles In Courage Moment, that will define our community for a lifetime.


0

Anybody else wondering why Ogren is choosing NOW to move to a position as a low-level official in a scandal-laden CSD, where there is so much to do to set things right, and with a board of directors that cringed from its duty to provide oversight to that official?


It sound like the way it is set up in the proposed contract for OCSD’s GM position for Ogren, Ogren has a lot of free rein to approve and/or issue invoices–including cash payouts–to the district wilth practically zero oversight by the board of directors.


The OCSD BOD is notoriously negligent in their duties to oversee what the GM does. This has led to previous GMs looting district coffers, with the BOD being very unwilling to hold the GMs accountable…UNTIL public activists and CCN expended considerable effort to hold the BOD accountable.


Then you add selling water–a desperately scarce resource, with prices sky-rocketing as a results–to the mix, and there is the risk of a dishonest GM greatly enriching himself at the cost of rates as years.


Ogren, as GM, will be the one making the water deals. Water sales contracts are very complicated, and it requires someone with the best interests of, in this case, the ratepayers to avoid a royal screwing. In this case, deals will have no BOD oversight because there is no one on the BOD with the knowledge required to provide adequate water-dealing oversight.


Under-the-table kickbacks are always a possibility in water sales…especially if the official in charge of negotiating the deal has no real oversight by a separate and dedicated governing body.


Understand, those who have the power to buy and sell water will be the new kingmakers. That is why pristine and aggressive oversight of these deals, and the official who is in charge of them is paramount. This is because, without oversight, what Robert Rizzo did to the City of Bell will be a chaste kiss compared to what someone like Pasco Ogren could do to the OCSD and its ratepayers.


0

Mr. Ogren was instrumental in accomplishing the project to retrofit the Lopez Dam, which preserved OCSD’s primary water supply. He was instrumental in getting StateWater to the South County, again providing OCSD with a critical water resource. He oversaw the approval and construction of the Nacimiento Water Project, providing new and backup water supplies to several SLO County communities.


He is now working on such projects as assisting NCSD and Morro Bay in securing additional critically needed water, and helping Los Osos solve it’s sea water intrusion problems..


Previously, he made sure that the two private water companies in Cayucos were able to retain their sole water supplies by arranging for the County district boundaries to be amended so the Counties low interest loan could be leveraged to build an enhanced treatment plant, so the private companies could meet new state standards at a minimal additional cost.


All of the above required extensive knowledge of State water laws, local ordinances, working closely and cooperatively with other state and local agencies, arranging for project financing and construction.


How the hell could anyone imply that he would bring malfeasance to OCSD if he was hired to get them straightened out? Yes, the proposed salary is a lot of money. As the past several OCSD managers have demonstrated, you get what you pay for.


0

You are advocating the same Loser Logic used by the OCSD BOD, more money equals a better GM, and ignoring the fact that the contract he dictated is custom made for fraud.


If Ogren is interested in a career of water dealing, he should do that and charge accordingly. At least there will be some oversight by the state.


Especially with the conflict-of-interest laden dual role of GM and financial officer, and the OCSD board’s history of derelection of their duty to provide oversight of the GM, Ogren has set himself up with a wide-open door for malfeasance. In addition, the OCSD BOD members know zip about water dealing, so even if they did work up the gumption to do their frickin duty and oversee their GM’s actions, they would not be able to do so.


So why would Ogren set up such a fraud-friendly arrangement if his intention was not to take advantage of the very system of absence of checks and balances and potential for fraud he himself set up?


And don’t even try to claim it was for the good of the people…I well remember how he screwed another man’s wife, and used her position on the LOCSD BOD to advance his career as impacted by his success in manipulating public opinion to his advantage.


Using a phrase my mother would have used, “He ain’t the Baby Jesus,” and his slick contract arrangement he set up for the GM position at OCSD raises a raft of red flags that need to be immediately addressed.


0

Is Paavo worth $200,000 + benefits … absolutely. Should OCSD pay Paavo $200,000+ … absolutely not. It appears that OCSD is in very bad shape and that this may be their “hail mary” pass to rescue what is left of what is turning out to be a bad deal for the Oceano residents. Paavo may be their best and last hope. However, Paavo’s salary should be set in line with what the position is worth (about $95,000 per year) and since he is taking on such a disfunctional operation he should be bonused for performing and maintaining cetain managerial/fiscal functions (say $25,000 for a timely unqualified audit {unqualified is accountant speak for “without exceptions”} , so much for a fiscal plan which balances the district, so much for other duties/accomplishments which match the Board’s expectations, etc.


If the $200,000 were divided between a reasonable salary and stipends for completion of specific, designated responsibilities then the $200,000 in compensation would be a bargain. But if the new GM is paid $200,000 without a requirement to perform specific duties (accomplishments) then the full burden falls on the OCSD ratepayers … if compensation were based upon performance then the ratepayers would only be on the hook for what was accomplished for their benefit and not merely paying someone a lot of money to see how things go.


0

I hope you attend Wednesday’s meeting Mitch. They need a little history lesson and a voice of reason.


0

An exceptional manager can be frustrated, mis-directed and become totally lost if a dysfunctional Board of Directors has no idea where they want to go and have some preconceived (and wrong) ideas on how to get there. The problem here is that while they are getting a very qualified person, the contract is so one-sided that the citizens of Oceano have little chance of righting their ship. Part of the contract negotiations should be a detailed, written, agreed upon set of goals and objectives which can be measured.


If the Board of Directors is each, in his/her own way, developing an idea of what a successful manager is suppose to look and act like, and they fail to communicate that to each other so that an open and frank discussion can be had and a GM given a charter and mandate that he understand … choas will continue to reign.


It appears to me that the OCSD Board of Directors is punting on third down.


0

This is exactly what I’m saying in my opinion piece about how the job description should have been developed in public prior to the hire.


Again, I hope you’ll be there.


0

I really don’t care if the job description is developed in public or private amoung the Board members … the important point is that it needs to be developed and agreed to by the Board and committed to writing. It should have easily measurable milestones and clear accountability.


The basic concept is that the Board has policy authority and the GM has operation authority … and never the two should conflict. Failure will be assured if the GM enters into policy-making and the Board tries its hand at management.


Even the best manager will fail if he/she is left to guess what the Board is thinking and or wnating. Without a written charter a manager wil be rudderless and will never find success … unless it is by chance.


0

Sadly Mitch, the Oceano Board doesn’t even know how to agree to a plan. When they do, it gets changed by the next Board meeting, there is never any follow through and when there is it’s on losing propositions such as the Jetter purchase.


0

Honestly, do you think any of the current OCSD board members know have a clue as to what a good GM should be? Or that they care enough to take the time to visit other OCSDs to see what other GMs do?


It sounds to me that the BOD is doing what it usually does when it comes to contracting with as new GM…It is crossing its collective fingers and wishing that a GM candidate who can do the job well will magically show up, that all of the candidate’s documentation will be a true representation of the candidate’s professional history, skills and accomplishments, and that the candidate will be dedicated to doing the job the GM should do, including the BOD’s responsibility to provide oversight of the GM.


With the latest loser GM the BOD contracted, they didn’t even bother to do a simple internet search to ensure the “writing sample” required for the GM position had not been plagiarized. A CSD GM position usually requires a great deal of detailed professional documenation, and a GM who is unable to perform this duty may create big problems for the CSD…especially when the BOD is chronically negligent in providing oversight to the GM.


I think the BOD has well proven by its dismal track record of hiring GMs that they are well down on the list of folks who should be in charge of contracting a new GM.


THE OCSD BOD should look to experienced folks for advice on how to select and contract with a GM. Julie Tacker has that kind of experience, as do others in the community.


0

And another thing…Oceano is current on their audits and they were left with a nice draft for next years budget by the accountant that left in March –it depicts a continued deficit. They don’t need a life raft, they simply need a ships Captain.


Where they are in big trouble is with implementation and execution of the things they need to accomplish, all things that take money. They don’t have a brain among them that knows how to request a grant ( they are qualified for many due to the socio-economic make of the community), but they don’t have a “shovel ready” project that would be eligible for a grant.


They have been scattered, distracted by bad managers who have lead them astray and poor legal representation and kept them from spending money in the right places — getting ready for the day when their books were in order.


My biggest beef with the Paavo twist is that the current staff has been loyal and caring giving much more than any of them have been paid for and here they are snubbed by this move. The staff sought representation from the Service Employees Union 620 in Santa Maria last summer because of an unfair work environment, one that included being striped of their security; making all of them “At Will.” Union negotiations have been ongoing, with the very UN-qualified Mary Lucey (biting my tongue very hard here) representing the district. They still don’t have a contract.


The whole thing is so disrespectful of the staff who gives so much without compensation, this is a morale buster for sure.


0

Last year the board eliminated a yard maintenance position, citing lack of funds available.


They ELIMINATED a job that is fundamental to the operation of the CSD. A job that paid nowhere near $70,000 a year.


This year, they hire a guy for an additional $70,000 over the last guy.


Yet they have not increased rates or sold water.


How do they plan on paying for this additional $70,000 each year when they don’t even have the money for one part-time yard guy?


Things that make ya go “hhhmmmmm”.


0

These are the people on the OCSD board that spend your money so wisely.


Maybe we should give them a call and tell them what we think.


Matthew Guerrero, President 805-473-9264


Mary Lucey, Vice President 805-474-4685/805-704-1812


Lori Angello, Director 805-489-9766


Karen White, Director 805-489-2245


Jennifer Blackburn, Director 805-377-3585


0

Please don’t freak out where these telephone numbers came from.


They are directly copied and pasted from SLO Counties own website.


http://oceanocsd.org/main/?page_id=33


0

Lets start a pool, How long before a cry for a rate increase because of no money? 1 week?, 1 month? before the end of Summr?


0

Oceano has submitted to the state a request to change its name to Bell.


0

Ocea-Bell


0

“Bell-eano. Tollbooth to the Dunes”


0

Robert Rizzo spent YEARS setting up district procedures to enrich himself and his accomplices.


Paavo Ogren had his procedures handed to him on a golden platter by the OCSD BOD.


0

I don’t know if this question has been asked, but it seems to me like Paavo is setting himself up for “conflict of interest” charges…I’ll check that one out with my attorney…


0

He’s setting himself up for additional $1,500/month +/- in PERS retirement if he can hang in there for 5 years, unless of course he can convert his County retirement over to PERS.


Then he only has to hang in there for 1 – 3 years (depends on the District plan) since he will be vested by conversion.


If OCSD went belly-up, would the County be required to step back in and take over? Is there a reason they would want to do so?


0

THAT, aft50’s, may be the whole crux of the matter – sending in Ogren to set things up for a County takeover. It would not be the first time he was charged with setting something up to benefit special interests,and special interests are what our County government is all about.


What does Oceano have that the County wants total control over? The County has clearly been trying to gain control over all of our water supplies – and not likely for our benefit – more likely to benefit their business cronies. I wonder if this might have something to do with that.


Gibson has been pushing an ill-advised scheme for Morro Bay to enter a joint venture for a sewer plant at the CMC – a plant that the county would control, and that would produce a lot of effluent that could be turned into reclaimed water.


Morro Bay’s water situation is close to being a crisis, and the town desperately needs that reclaimed water, but would they get it if the County were in control? Not likely. We can only hope that the Council is smart enough to reject Gibson’s sneaky CMC scheme and go for a plant in the Morro Valley – a plant that the County does not control.


0

This IS about WATER!

Oceano has diversified sources of water, State Project Water = 750AFY, Lopez = 303AFY, Groundwater = 900AFY for a total of 1950AFY. They only use 890AFY on average. Leaving over 1,000 AFY on the table for sale/trade or to steal. This year, without much SPW coming down the pipe, they will pump the groundwater and still have plenty of their allocation available to them. Other communities will not be so lucky.

In deep financial straits in 2011, costs were slashed, staff reduced and a $1M, 100AFY SPW proposal to sell to Los Robles Del Mar (Pismo Beach development) outraged the community. The citizens opted for a rate increase in lieu of the sale, rates were raised in March of that year in a step fashion, each year gradually increasing. The funds were intended to repair infrastructure, instead they have gone to hiring an accountant (after outside consultants did 3 years worth of books to the tune of approx. $150,000) and increasing salaries (GM went from $87,500 to $126,000) and now this?

Additional history, a citizen driven initiative was generated and passed in November 2012, its language is convoluted, but clearly expects the district to take any permanent water sale proposal to the public for a vote. The initiative was deemed invalid by County Counsel, but has yet to go to court and likely never will if the elected officials stay the course of its intent, to never sell water on a permanent basis without going to the voters.

Engineering seems to be where the district lacks the most, master plans are out of date and plans and specs for much needed projects sit idle. If these plans were developed and projects “shovel ready”, the district would be grant eligible for many projects they need to get done, due to the economic make up of the populous.

Paavo isn’t an engineer, this work (the reason Lonnie Curtis, P.E. was hired) will still need to be outsourced. Oceano’s books are in order, they paid a pretty price for that work, including the cost of Geaslen and the audit that found his hand in the till.

Paavo’s expertise will be valuable for rate studies and raising rates to implement the needed projects projects, but without the plans it will be difficult to forecast the costs to improve the systems. It’s looking to me like they could have used Paavo 3 years ago, before the books were brought up to date. Now, they will pay him to twiddle his thumbs while outsourced engineers prepare the plans in which rates should be based on. When these rates are met by a public that is tapped out then water sales will be the fall back revenue generator. When that day comes, expect lawsuits to force the board to uphold the initiative or another initiative with better language passed, easier than all that, new Board members. Three seats are up in November. Now’s the time to consider being a candidate and run for the board.


0

Yes Julie, Paavo’s no engineer, and once the county takes it over they will need much help in this department. That’s where the wallace group comes in. Im sure John misses his $80,000 a month from the san dist as well as whatever he has lost from Avila.


0
1 2 3