San Simeon Community Service District administrator misleads board

July 21, 2024

By KAREN VELIE

The interim general manager for the San Simeon Community Service District misled his board at their July meeting claiming he had collected all sewage processing payments from Hearst Castle, one of California State Parks most profitable properties.

However, for more than a year, State Parks has not paid San Simeon for sewage treatment. Following the July district board meeting, Interim General Manager Patrick Faverty responded to a records request seeking documentation of the payments with the admission he was “wrong.”

On July 9, CalCoastNews published an article revealing that State Parks had not paid for sewage processing for a year and how issues with Hearst Castle had thrown a wrench into the district’s plan to dissolve. In March, district officials voted to ask the county to take over all services.

During a board meeting on July 11, Director Jacqueline Diamond asked Faverty if Hearst Castle was receiving services without paying their bill for a year as CalCoastNews reported.

“No, they have been paying their bill,” Faverty responded. “They pay about $79,000 a year.”

Faverty said that Hearst Castle’s meter broke in March, and that they are trying to get it in order.

“They are very consistent paying,” Faverty said.

“Is the article totally erroneous?” Diamond asked Faverty.

“They didn’t talk to me,” Faverty said.

San Luis Obispo County activist Julie Tacker then sent Faverty a records request for copies of all payments from State Parks from July 1, 2023 through July 11, 2024.

“This is my Mea Culpa, I was wrong, I thought we had been paid when all we really had accomplished was a clean-up of the billing problem,” Faverty wrote Tacker. “We have sent the bill, but Kathy tells me that we haven’t received the check from State Parks yet. State Parks billing department worked with Kathy to show they did pay their bill until June 2023.”

Faverty goes on to blame former San Simeon General Manager Charles Grace for his staff’s failure to bill and collect payments from Hearst Castle.

In June 2023, San Simeon CSD Board of Directors fired Grace shortly after he admitted to conflicts of interest in a settlement agreement with prosecutors, which included a $75,000 civil penalty. Following Grace’s termination, state parks stopped paying for it sewage processing.