San Simeon board fires general manager
June 14, 2023
By KAREN VELIE
The San Simeon Community Services District Board of Directors fired its General Manager Charles Grace on Tuesday, shortly after Grace admitted to conflicts of interest in a settlement agreement with prosecutors.
Grace agreed to pay a civil penalty of $75,000 and to leave his management position without the right to seek additional compensation if terminated before his contract expires in 2024, according to the agreement. San Simeon officials responded by placing two emergency items on the June 13 agenda: a review of Grace’s performance and consideration of his dismissal.
The board also voted on Tuesday to shorten the submission deadlines for candidates for both the district manager and the operations manager positions from Aug. 3, 2023 to July 14, 2023.
In Sept. 2021, the San Luis Obispo County District Attorney’s Office filed a civil suit alleging illegal business practices and false advertising against Grace and his privately owned company, Grace Environmental Services, which is paid to manage the district.
The district attorney’s nine causes of action included:
The San Simeon district paid Grace Environmental Services approximately $55,000 a month for managing and upkeep of the district, including weed abatement. However, after swapping out bookkeepers, Grace began submitting weed abatement invoices from third-party vendors for the district to pay while continuing to get paid for weed abatement through his contract.
The complaint also alleges Grace violated the terms of his contract regarding facility maintenance expenses. Prosecutors accuse Grace of violating California’s Unfair Competition Law because he refused to allow the public to scrutinize invoices regarding the maintenance expenses.
When questions arose about his possible conflicts of interest, Grace lied to the board about communications with the California Fair Political Practices Commission.
The civil suit also accuses district officials of writing and publishing an article in the San Simeon district newsletter that misled district ratepayers into believing the district lost a grant because of false allegations made by the public. However, the National Fish and Wildlife Foundation rescinded the $125,000 grant because district officials failed to resolve areas of concern regarding district operations and management.
Nestled along the coastline near Hearst Castle and the Piedras Blancas Light House, San Simeon has approximately 500 residents and a yearly district budget of almost $1 million for wastewater collection and treatment, road maintenance and street lights.
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