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Former Keyes CSD general manager urges county oversight after alleged secret sessions and questionable finances
Summary
At the public comment period Dec. 9, former Keyes Community Services District general manager Ernie Garza accused the KCSD board of secret closed sessions, improper promotion and misuse of funds, and a recent sewer rate increase including an unexplained $3 million capital reserve; he asked the Board of Supervisors to investigate and refer the matters to LAFCO, the state controller and the grand jury.
During public comment at the Dec. 9 Stanislaus County Board of Supervisors meeting, former Keyes Community Services District (KCSD) general manager Ernie Garza alleged governance failures at KCSD and called on the county to exercise oversight.
Garza said the KCSD board terminated him after multiple closed sessions in which his performance was discussed, that the board promoted an employee despite documented misuse of public funds, and that on Nov. 25 the KCSD board approved a sewer-rate increase that included a roughly $3 million capital reserve added at the direction of two board members "without full approval or explanation." He said those decisions harmed Keyes' low-income residents and reported he had submitted supporting documents to the clerk and to the civil and criminal grand jury.
Garza's request: He asked the Board of Supervisors to investigate KCSD governance and to refer concerns to the Local Agency Formation Commission (LAFCO), the state controller, and the grand jury to ensure transparency, lawful financial management and accountability.
Board response: The board acknowledged Garza's comments but no KCSD board member or KCSD representative responded during the meeting and no formal investigation or referral motion was recorded at the meeting. Garza said he provided supporting documents to the clerk and that he had previously written to the district attorney.
Context and next steps: The allegations were made during public comment and were not resolved on the record. Garza indicated he had already provided materials to county clerks and intended to pursue the matter with the grand jury; the Board of Supervisors did not take immediate action on Garza's request during the meeting.
