Chairman Peters led the Indian Wells Valley Groundwater Authority to approve a reimbursement agreement with the City of Ridgecrest that continues a five‑year practice of compensating the city for legal counsel provided to the authority.
General Manager Carol introduced the item, saying the 2020 option agreement that allowed the authority to purchase recycled water from Ridgecrest included provisions allowing the city to recover legal and other costs. "So really this is just a continuation of what we've been doing, for the past 5 years," Carol said, describing the new agreement as a mechanism to reimburse the city for legal services the city attorney provides to the Groundwater Authority.
Directors pressed staff for clarity on what costs would be reimbursed and whether the arrangement created a conflict of interest when a city attorney’s firm represents both a JPA member and the JPA. Counsel told the board that conflict‑of‑interest waivers had previously been obtained and that it is common in JPAs for one participating agency to provide counsel through its attorney. Board members asked whether the reimbursement simply covered legal expenses tied to GA operations; staff confirmed it does not apply to separate litigation matters handled by outside counsel.
A Ridgecrest resident asked if city taxpayers were effectively paying multiple legal fees; staff and counsel responded that different legal work streams (city matters, water‑district litigation, GA operational counsel) are funded from different sources and that the current agreement applies to operational legal services provided to the authority.
Director John Vallejo moved to approve the reimbursement agreement as presented; the motion was seconded and passed, with Director Saint Amond recorded as abstaining. No additional amendments to the agreement were made at the meeting.
The board’s action continues the authority’s practice of compensating Ridgecrest for legal services it provides to the JPA; staff did not identify any change to the types of services covered beyond reimbursing the city attorney for work attending meetings and reviewing agreements on behalf of the authority. The item had been introduced at SEG 138 and the motion and vote occurred at SEG 417–432.