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Los Osos general manager put on administrative leave

December 8, 2015
Kathy Kivley

Kathy Kivley

The Los Osos Community Services District Board of Directors has placed embattled General Manager Kathy Kivley on paid administrative leave. Kivley’s administrative leave took effect at 5 p.m. Friday.

Los Osos board members reviewed Kivley’s performance in a closed session hearing on Thursday and decided to place her on paid leave. The hearing following an investigation into alleged misappropriation of funds.

Following the closed session hearing, Kivley spoke with legal counsel and quickly left the board meeting.

A CalCoastNews analysis of district payroll recently found Kivley had been collecting pay for more administrative leave days then her contract allows. She had also been receiving more holiday pay than her contract permits, documents show.

Additionally, a recent audit of the district found Kivley engaged in questionable accounting practices during he first year on the job. In response to the audit, San Luis Obispo County Auditor-Controller Jim Erb sent a letter to Los Osos board members saying the findings should be of great concern to them.

In October, the board voted in closed session to hire private investigator Jim Gardiner to examine the allegations that Kivley misappropriated district funds.

After the closed session hearing Thursday, district legal counsel Mike Seitz asked Kivley to speak to him at the back of the room. Kivley then grabbed her purse and left.

The board reported no action following the review of Kively’s performance. It is expected the board will call a special meeting in the next few weeks to complete its discussion on Kivley’s employment with the district.


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How many years of complete failure and incompetence is it going take to convince the citizens of Los Osos that their CSD has been nothing more than a breeding ground for WASTE, FRAUD, and ABUSE.

Get rid of this septic cancer that is, and has, destroyed a once beach side community.


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It would be most interesting & informative to Los Osos residents to have an ‘independent’ analysis performed revealing the true cost’s to retain our dysfunctional LOCSD, versus returning to County control costs.


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Government bodies are just like taxes, they never go down or away, once they have established their connection to the taxpaying tit they never let go. In some cases we have several government agencies with the same purpose, where we could eliminate all but one, along with all the costs, but no one in the government will pull the trigger. It is implanted in the brain to continue the feeding and they certainly don’t want to cut anything, they may be afraid if they cut one thing someone else may look at their department and think the same thing. So in the end they all work to suckling going.


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Did anyone enjoy her remarks about her trip to Ireland last year? You should have – we paid for it dearly.


She also was bragging about getting a new car last year. Speaking of cars, $400 a month car allowance to tool around LO?Did anybody else employed by CSD get that kind of benefit?Didn’t she also go over the $50 limit on the credit card that the board so generously gave her?


Ms. Kivley has forgotten that what gets put on Facebook stays on Facebook. In the section labeled “About”, Ms Kivley states in the spot to identify what she is interested in,she inserted “”Men”.

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Well it certainly seems that she has gotten Wright, Seitz, and a few other men wrapped around her finger.


Now she can add to her resume along with Delano, Clear Lake, Atwater, Los Osos that she worked for each. Wonder how much these cities paid to get rid of her. I’ll bet Seitz is the one who pushed for her to get PAID administrative leave. He seems to have no problem spending other people’s money.


I can’t print how I feel about giving her more money (pair administrative leave) when she has already bilked the community out of so much………..


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Maybe it would change the board and Seitz’s mind if any payout Ms. Kively got came out of their own budgets without any increase in funds. Perhaps this should be done for all public sector positions. It may just change this attitude of “go ahead and pay them more money, it’s not our money”. Plus they may want their payout when it becomes their time to skip town, but that may change when it is not treated like there is a endless money pit to draw from.


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You are right. When the LOSOSOSCSD let’s her go (hopefully Thursday) it will be her fourth job in a row that she has been dismissed for some reason. How could the Board not see all of what was going on? Keeping her employed for two years is totally dreadful. What a waste of money and time.


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She will sue or receive a big payout if the district does not file charges. Last year she got a $9,000 raise at the end of the year and if there are bad performance reviews she would be considered an outstanding employee with the criminal charges. Again, the taxpayers may be handing out a big bonus for the law of the land is not followed. Considering we have become a lawless country, I will take a bet she leaves with a check. First, she will remain on the payroll through the holidays because we are bleeding hearts!


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Why wouldn’t the board give her a raise, regardless of her job performance, it’s not their money and there are no consequences for them for letting someone else steal it. She will sue and they will settle, again it’s not their money. It’s the public service way. And everything will be “private since it is a personnel issue”, even though the money being used is public money, go figure.


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I hear laughing all the way from Atwater.


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The mishandling of the Kivley-Los Osos CSD wreckage is eerily similar to the San Bernardino massacre-FBI probe. Stay with me. Most perceptive residents of Los Osos have understood for a long time that Kivley is not trustworthy and needs to GO [and should NEVER have come]. The LOCSD Board, however, appears to have been in denial, unwilling to act—allowing Kivley to continue to “milk” the community. Similarly, most law-abiding US citizens were convinced soon after the San Bernardino massacre that it was an act of terrorism. Obama and his associates, however, deferred from calling a spade, a spade. It’s this evasion of the truth that is utterly repulsive and so costly. What is it about TRUTH that is so difficult to admit?


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It is irresponsible for anyone, but especially the POTUS, to confirm a mass shooting was a “terrorist attack” without confirmation from the authorities investigating the attack. Just because the attacker was a Muslim does not mean it was a “terrorist attack.” Indeed, the LA Times has a list of mass shootings, going back to 1984, and there are very, very, VERY few Muslims who were believed to have links to terrorist groups.


In addition, it is reprehensible for anyone to use such a horrific slaughter of innocent people in San Bernardo as an excuse to blame the POTUS.


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Take another toke….just don’t Bogart that joint my friend


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Hope the district has better sense than to allow a similar repeat of the Adams fiasco in AG when the council decided not to follow HR policy.

Let’s hope LO follows the correct procedures for terminating this woman and she doesn’t walk away with a big fat check.


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I have a better idea. How about an embezzlement investigation that is submitted to DA Office and as part of plea deal she would have to repay the district.


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Great suggestion.


I just hope the Los Osos CSD has more guts than the Oceano CSD did when they found out a previous GM was corrupt. They basically gave him a slap on the hand because it made the BOD look very bad, indeed, to have been snookered for so long.


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With Seitz involved you can beat on a prolonged “internal investigation” with a big payoff in the end. Until there are those personnel changes the “paid” vacations, like the one Kively is getting and the golden handshakes will continue.


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