Los Osos board calls for investigation into GM’s pay
October 13, 2015
The Los Osos Community Services District Board of Directors voted in closed session Monday to hire an independent investigator to examine allegations that CSD General Manager Kathy Kivley misappropriated district funds.
A CalCoastNews analysis of the district payroll found Kivley has overcompensated herself by more than $4,000. Kivley has been collecting pay for more administrative leave days than her contract allows. She has also been receiving more holiday pay than her contract allows, documents show.
Last week, the board received a letter from former board member Julie Tacker, who also conducted an analysis of Kivley’s payroll documents. Tacker informed the board of similar financial discrepancies.
At the meeting Monday evening, about a dozen members of the public called for the board to fire Kivley for a variety of reasons.
Following the closed session hearing on Kivley’s performance, the board announced it agreed to hire an outside investigator and that two members of the board would lead the search for the individual. The investigator will only be tasked with investigating the alleged misappropriation of funds, according to the board announcement.
Recently, an auditing firm that examined the district’s finances revealed Kively engaged in questionable accounting practices during her first year on the job. The auditor also found the district disbursed extra overtime pay to at least two employees.
The audit prompted San Luis Obispo County Auditor-Controller Jim Erb to send a letter to Los Osos board members saying the auditor’s findings should be of great concern to them.
In 2013, the board hired Kivley even though she falsely stated on her job application that she had never been terminated. Kivley was fired from the position of Atwater city manager in September 2012 and the position of Clearlake city administrator in November 2006, according to local media reports.
On Monday, Kivley left the meeting as the board convened for closed session. She did not return.
Closed session began with a hearing on existing litigation over the Los Osos Groundwater Basin. Kivley missed that hearing, as well as the item on her performance as general manager.