Can Paavo Ogren get San Simeon out of hot water?

January 16, 2021

Paavo Ogren

By KAREN VELIE

Under investigation for sole-sourcing large contracting jobs, conflicts of interest and applying for grants they were not qualified for, San Simeon Community Services District staffers selected Paavo Ogren to respond to the investigator. However, Ogren used to be the investigator’s boss.

In a Sept. 30, 2020 letter to SLO County Counsel Rita Neal, San Simeon resident Henry Krzciuk asked her to investigate the spending of grant money without a public bidding process. A year earlier, the San Simeon CSD had contracted with SLO County to administer and distribute the grant. Neal responded to Krzciuk that she found nothing wrong.

Krzciuk then took his concerns to the state, which ordered the county to investigate.

John Diodati, SLO County’s interim public works director, is heading the investigation.

In years past, Diodati and Ogren worked together on the highly controversial Los Osos wastewater project and the formation of the Paso Robles basin water district.

In December, Diotati sent the San Simeon CSD a six-page demand for information. The response is due Jan. 20.

On Nov. 19, the San Simeon CSD Board of Directors voted to approve a $175 hourly contract for Ogren to spend up to 100 hours assisting San Simeon CSD attorney Jeff Minnery lift a more than 30-year building moratorium because they now have a reverse osmosis facility to ensure a supply of clean water.

However, without board approval management redirected Ogren to help answer Diodati’s information demand.

Attorney Minnery explained they could redirect the money because there was a nexus: one of the grants under investigation had been used to help build the reverse osmosis facility, and he was hired to work with other agencies to lift the moratorium.

“That is the nexus here,” Minnery said. “Ogren was to act as a liaison to maintain communications with other agencies.”


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The Santa Margarita Unicycle Club would like to know who will pay for the resolve, whatever way it goes? This balancing act is going to be costly.


Isn’t the question how much has it cost already? By sole sourcing SSCSD is failing to save the taxpayers of California (who fund the grants) money. Other deserving communities then have to raise rates to cover the costs to fund their deserving projects.


It’s a bottom up effect to the ratepayers all over the state. The poorer communities must raise rates, making it more expensive to live, causing the need for more taxes to fund social programs to help with living expenses.


The real problem is, San Simeon is not the only agency misusing/abusing grants. Even the most lucrative communities mislead grant providers.


Paavo couldn’t save Cambria from itself. How can he save San Simeon? San Simeon is in up to its eyeballs in conflicts of interest, sole sourcing and encroaching on the Hearst Easement (the taxpayers of California ponied up to preserve) — all violations of law.


The SS Board is enamored with their General Manager, Charles Grace, perhaps they do not know his long history of costly regulatory missteps. Those missteps apparently are finally coming to roost.


Minnery might be able to get the district out of hot water but at what cost? How much responsibility does he bear? He signed the contract with SS and promptly turned over the community to a lower level attorney. She didn’t speak up. In fact, she lead them down the wrong paths in so many instances.


Krzciuk has been diligent here, he is on record telling the district at every turn they were breaking the law. The evidence is clear, they purposely ignored him. Handing out sole source contracts, sometimes with out board approval, allowing unauthorized overruns or benefitting personally.


As I’ve said before, grants are not like winning the lottery. They are meant for deserving communities and worthy projects. Grace has used the deserving people of San Simeon to advance his self-importance. Grant providers want their funding to go as far as it can, following procurement law will result in competitive bids, bringing qualified professional work at the lowest price. Leaving grant funds on the table makes them available for other deserving communities and other important projects.


Shame on you Charles Grace!


Shame on you Paavo Ogren if your goal is to exonerate Grace.


Do the right thing, acknowledge the fact there was wrongdoing and protect San Simeon from having this happen again.


They should ask Morro Bay City Council what they think about this, they are good at giving out worthless opinions on issues that have nothing to do with them.


conflict of interest


What do you do when there is overwhelming evidence that would lead a reasonable and semi-conscious person to believe that the District has done wrong by three state grants? No problem, you get a more expensive lawyer, Minnery, and a well-connected consultant, Ogren. I did not know that Paavo was the boss of the interim Public Works Director who is leading the County investigation.


This move says it all, San Simeon CSD knows they are in trouble.


At this past week’s San Simeon Board meeting, the Board did not discuss or provide any direction to this dynamic duo. The Board nor the community know what position these two are going to take or arguments they are going to make when representing the District. They just turned them loose.


I guess this is a slick move. For me, the way this was handled just further undermines trust in San Simeon’s Board and Staff. The District messed up, it is time to fess up, and make things right. Instead, a lot of ratepayer money will be spent on fees defending wrongdoings.


I would rather have seen these two focused on recommending corrective actions for the District, so these things do not happen again.


The District’s response to the County inquiry is due on January 20th.


The District Attorney’s Office and FPPC investigations’ findings and hopefully corrective actions cannot come soon enough.


I have worked with both of these people in the past. In our projects, I found them both competent and intent on meeting their responsibilities. This San Simeon situation is not a good one, and when it is sorted out I’m sure someone will pay for what occurred. I don’t see a problem with the current working relationship of these guys, if that is what is being implied by this article.


If anyone can, Paavo can!!!

Even though Paavo was the County Public Works Director, he was not a engineering guy, he’s a accounting , grant writing type of guy, so the San Simeon issues are right in his wheel house:)

I just remember him back when the County brought him in(early 90’s) to get the Cayucos Water Treatment Plant built, he found the money to get it done in a very painless manner, impressed me on that project:)


today dictionary definition:

debacle, n., generally a project, organization or event catastrophically gone awry, and unlikely of rescue or resolution. specifically, nearly ANY San Luis Obispo County governmental body organized under the special districts act, most projects thereby, and key personnel, counsel, or directors thereof. see also morass


Years ago a Los Angeles friend chaired the Little Hoover Commission when it issued a report challenging the direction of many special districts. Turns out he was prophetic.


a $175 hourly contract…are you kidding me? And I bet this will all get swept under the rug.


This along with his full pension of, $250,000 to $350,000??, however will he survive. If us poor souls on Social Security make an extra dollar they deduct it from our SS payments.