General manager of SLO County CSD to step down after settling lawsuit with DA
The general manager of the San Simeon Community Services District will step down after using his position to benefit his company, according to the San Luis Obispo County District Attorney’s Office.
Charles Grace settled a civil lawsuit with the District Attorney’s Office over multiple violations of unfair competition and false advertising law, the agency said in a Monday news release.
California law prohibits public officials from using their position to influence a government decision in which they have a financial interest.
The San Simeon CSD, which does not have any employees of its own, contracted Grace Environmental Services to “operate the essential functions of the public agency,” court documents said, which included day-to-day management, services and operations.
Grace is the CEO of Grace Environmental Services, and owns the company with his wife. He is also a public official for San Simeon CSD.
The district pays Grace’s company $55,000 per month, court documents say.
Grace and his company provided management services and administered finances for the San Simeon CSD and its board, as well as the bulk of operations services for the district’s water and wastewater facilities.
“The contract provisions placed Mr. Grace and his company in a position to self-deal,” the release said.
In the settlement, Grace Environmental Services agreed to not seek to continue working for the district to provide management or operations services, the release said, and must pay $75,000 in civil penalties.
In addition, the company will not seek to renew its contract and cannot get reimbursed for further legal costs.
Grace also admitted to violating conflict-of-interest laws and paid $4,500 in fines to the California Fair Political Practices Commission in 2021.
The district has already reimbursed more than $125,000 in legal expenses to the company, the release said — a bill that has been funded by San Simeon taxpayers.
Grace Environmental Services will stop providing services to the San Simeon CSD as soon as the district finds another provider, the release said.
The district has also separated the responsibilities of general management and wastewater and water operation services to help remove the perception of self-dealing by a public official.
This story was originally published June 12, 2023 at 6:07 PM with the headline "General manager of SLO County CSD to step down after settling lawsuit with DA."
