Insurance carrier claims hostility in Arroyo Grande

January 6, 2016
Arroyo Grande City Council

Arroyo Grande City Council


The California Joint Powers Insurance Authority (JPIA) is claiming that comments critical of the Arroyo Grande city manager could be deemed hostile and lead to financial risks for the city, according to a Dec. 21 letter to the Arroyo Grande City Council from the JPIA. The comments by two public officials were regarding Manager Dianne Thompson’s refusal to place extending the closure of the Brisco Road ramps on a regular meeting agenda.

The JPIA is one of the largest municipal self-insurance pools in the state, with nearly 120 participating members. It provides liability protection for its members from losses and lawsuits.

Several residents are now questioning if the JPIA’s letter was a political move to help pave the path for a run for the mayor seat by former San Luis Obispo County Supervisor Caren Ray. JPIA Assistant Executive Officer Norman Lefmann said the letter was not political on the part of the JPIA.

“Without checking the veracity of the charge, you wrote a letter to the mayor, which could be used as an issue in an upcoming election,” wrote Patrick Dempsey, a resident of Arroyo Grande, in a letter to the JPIA. “The fact that it is unfounded, and that you took no action to investigate the charge, could be considered as an attempt to interfere in an election.”

For the past year, since former mayor Tony Ferrara lost the election, City Council meetings have been contentious with former constituents of Ferrara and Ray at odds with Mayor Jim Hill. Thompson spends about 8 percent of her work week meeting with council members Jim Guthrie and Kristen Barneich while regularly canceling meetings with Hill, according to Thompson’s calendar.

Dianne Thompson

Dianne Thompson

In December, Thompson refused to allow Hill to put an extension of the Brisco Road closure on the agenda before the permit was set to expire in January. An action that could have cost the taxpayers about $100,000 to open and then close the ramps.

Hill responded by calling a special meeting and the council voted unanimously to keep the ramps closed until they determine which of several options to move forward on.

On Dec. 15, Councilman Tim Brown questioned Thompson’s lack of an open door policy on Dave Congalton’s KVEC radio show.

During the special meeting on Dec. 17, Hill said he called for a special meeting at a cost to residents because he couldn’t get the item placed on a regular meeting agenda.

On Dec. 21, the JPIA sent a letter to the City Council saying the city’s insurance carrier can help “return members to good governance” through implementation of an action plan.

“We have recently learned of and observed derogatory comments made by council members towards the city manager and members of staff,” Lefmann said in the letter. “Our concern is such comments made in a public setting could lead to allegations of harassment and a hostile workplace at your city. We consider these practices, if continued, to be serious in nature and inconsistent with good governance.”

Lefmann was not aware of who brought the issue to a local JPIA representative who then brought his concerns to Lefmann. Lefmann said the concerns were based both on comments made on the radio and at the council meeting. Lefmann is seeking a meeting with city officials to discuss putting together a team building workshop.

Hill said his comments were appropriate for a council meeting.

“My comments in that forum were absolutely appropriate,” Hill said. “They were not intended to be and in fact were not derogatory toward anyone. I think people have a right to know why they have to pay for special meetings and endure the attendant inconvenience when a regular meeting could have addressed the issue in a more timely fashion.”

When asked what comments were deemed hostile, Lefmann said he could not comment until he has a chance to meet with city staff and officials to look into the allegations.

“We need to look at what is going on,” Lefmann said. “We do not want to overstep our bounds.”

Congalton also challenges the JPIA’s evaluation of his show.

“I recall my interview with Councilmember Brown as being an open and candid discussion about the issues facing the city of Arroyo Grande,” Congalton said. “I am not aware of any statement made by either one of us that might be misconstrued as harassment of the city manager. It is the right of the media to engage in conversation about public officials and certainly any city hall employee is welcome on my show to provide a different point of view.”


JPIA just how many government layers are there. A new one seems to be in the news everyday, I am amazed we all don’t have government jobs.


The reason you cannot find the hostile words is…..There were none.

The City Manager works for the Mayor and Council.

Her # 1 responsibility is to support them and assist them in “looking good”.

Clearly this is not occurring as the burning of the stake of Comissioner MACK should have never been public.

Then, a quick “sure Mayor Hill, I’d be glad to add the Briscoe closure to the agenda” is all it took.

Who’s got the power? And now she wants her insurance carrier to back her up.

This is laughable!


Grow up Arroyo Grande!

If your feelings are hurt, explain yourself and ask for an apology.

Otherwise, do your job!!!!!


Dianne knows she has 3 council people on her side and it takes 3 to fire her. She can do whatever she wants,she has job security .

Mitch C

As it should be.


Yeah, if anyone knows that, it’s you right, Mitch?


Dianne has never been in charge of a full service city, only a general law city. So she is learning as she goes, basically on the job training. The question is who is training?

Want to see something interesting google Dianne Thompson Cotati, what did this city get themselves into with this POS?


Intersting article, citygirl. Thanks for the reference.


You know things are bad when the insurance industry calls blasphemy.


Why will Dianne NOT meet with citizens or commissioners without a written statement saying what they want to talk about?

Pull up Dianne Thompson Cotati and you will find some disturbing articles about her.

I think she is a fraud, and I think she is causing a hostile work environment. If you don’t go along with her program you will lose you job how is that for friendly?

Want to keep up to date on what is happening in city hall go to a new website

Or better yet start going to council meetings. She does not speak and when she does it is just to tell us about park and rec items.

I think Peckham the head hunter who was paid big bucks to get us a qualified city manager did a terrible job and we should ask for some money back. I don’t think they did due diligence.


Sounds like a increase in the premium the city of AG pays is on the way and the JPIA is trying to justify it, or is trying to make back some of the money wasted on the Steve Adams mess and the JPIA’s failure in handling it properly.


I’d believe a story about derogatory comments coming from ADAM Hill because it happens every day, near enough. Now that Hill is a liability for all of SLO Co.