It’s finally official.

The Los Osos Community Services District (LOCSD) parted ways with its embattled General Manager Kathy Kivley, entering into a settlement agreement with Kivley at the district’s Jan. 7 board meeting.

Kivley will remain on paid administrative leave with the district until Jan. 31, after which she will retire.

The details of the settlement are confidential.

In October, allegations that Kivley misappropriated district funds to allow herself extra administrative days off compelled the district to launch an independent investigation into Kivley.

Though the results of that investigation are not yet available, the LOCSD Board of Directors voted on Dec. 4 to place Kivley on administrative leave.

The LOCSD begins yet another search for a general manager, its fourth such search in four years. The district hopes to hire either an interim or permanent general manager in the next two weeks.

Margaret Falkner, the LOCSD’s utilities manager, is serving as temporary general manager. Her contract was approved at the Jan. 7 meeting, retroactive to Dec. 7, when she replaced Kivley.

The Jan. 7 board meeting also involved the annual shake-up of Board of Director rankings. Vice President Marshall Ochlyski was voted in as president to replace Michael Wright, and Jon-Erik Storm moved up into the vice president position.

“We’ll be working hard in this upcoming year,” Ochlyski said at the meeting. “We’re basically turning over a new leaf at this point, and looking into the future.”