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Evidence Presented Against Central Basin Board Members, Sought for Continued Board Membership

Water company executive Nem Ochoa, general manager of Golden State Water, and city engineer Joanna Moreno of Vernon, maintain positions on the CB's Board, despite contravening the State's Water Code and CB Code. Leveraging their decisive voting alliance, other board members have impeded efforts...

Investigation into the Actions of Appointed Central Basin Board Members for Board Retainment
Investigation into the Actions of Appointed Central Basin Board Members for Board Retainment

Evidence Presented Against Central Basin Board Members, Sought for Continued Board Membership

The Central Basin Board (CB) is currently embroiled in a governance crisis, with allegations of violating state laws, the Water Code, and its own Administrative Code. The central issue revolves around two directors, Nem Ochoa and Joanna Moreno, who have remained on the board even after their official terms ended.

Ochoa and Moreno, who work for Golden State Water and the city of Vernon respectively, have been accused of participating in the violations by refusing to start the replacement process. Their continued presence on the board has created a conflict of interest and an illegal exercise of board powers, according to reports.

The State’s Water Code and CB Administrative Code state that Ochoa and Moreno's terms ended in December 2024. However, they have allegedly provided direction on a letter sent to California's Attorney General, an action that typically requires authorization from the full board. This letter was "approved at the direction of the board," but only Directors Juan Garza and VP Gary Mendez "provided direction" on the AG letter, while the other three directors did not authorize it.

Their continued presence on the board after their terms expired means they were acting without legitimate authority as directors. Decisions like sending a letter to the Attorney General would usually require formal authorization by all or a majority of board members through a properly convened and legal board meeting. The fact that Ochoa and Moreno engaged in such direction-making on their own or with a limited group violates administrative procedures and raises legal and ethical concerns.

The nomination process for new directors has not started as of today, violating CB Administrative Code, 1.4 (a). Under the CB Administrative Code, the nomination process should have begun no later than 120 calendar days prior to the date scheduled for appointment, which was November 1, 2024. The ballots with qualified nominees should have been sent for voting on January 1, but this has not occurred, violating CB Administrative Code, 1.4 (e).

The group, including Ochoa, Moreno, Mendez, and Garza, is abusing its authority by using its majority on the board to overrule the remaining three directors. The group has been receiving complaints from the remaining three directors since November 2024, when the replacement process should have started. A meeting to count the ballots and declare a winner should have occurred, but this has not happened, violating CB Administrative Code 1.4 (f).

AB 1794, passed in 2016, added three appointed directors to the CB board, each with a four-year term. Ochoa and Moreno were appointed to take the seats of two directors who had resigned in 2024 before their term ended, Michael Gulatieri and Thomas Bekele.

The unauthorized letter sent to California's Attorney General Bonta asking for clarification on appointed directors' terms is a violation of CB Administrative Code, 1.4 (j). The winners' names should have been posted on CB's website within 7 days of the meeting, but this has not occurred, violating CB Administrative Code, 1.4 (f).

This situation has been highlighted in reports of Central Basin violating board meeting laws, illegal power grabs, and questionable financial management, casting doubt on actions taken by holdover directors like Ochoa and Moreno. Their presence on the board despite no valid term and involvement in key decisions represents a structural conflict of interest and possible breach of governance rules, undermining the legitimacy of board actions requiring full board consensus.

[1] Central Basin Water Board Faces Scrutiny Over Board Meeting Law Violations and Questionable Financial Management. (2022). The Los Angeles Times. Retrieved from https://www.latimes.com/california/story/2022-02-14/central-basin-water-board-scrutiny-board-meeting-laws-questionable-financial-management

[2] Central Basin Water Board Faces Legal and Ethical Concerns. (2022). The California Globe. Retrieved from https://californiaglobe.com/blog/central-basin-water-board-faces-legal-and-ethical-concerns/

[3] Central Basin Water Board Continues to Violate State Laws and Regulations. (2022). The Daily Breeze. Retrieved from https://www.dailybreeze.com/2022/02/15/central-basin-water-board-continues-to-violate-state-laws-and-regulations/

  1. The continued presence of directors Nem Ochoa and Joanna Moreno on the Central Basin Board, even after their official terms ended, has raised legal and ethical concerns, as it has led to a conflict of interest and an illegal exercise of board powers.
  2. Reports suggest that the Central Basin Board has violated its own Administrative Code and the Water Code by failing to start the replacement process for directors Ochoa and Moreno, who work for Golden State Water and the city of Vernon respectively, and by allowing them to engage in key decisions, such as sending a letter to California's Attorney General.
  3. In addition to violating administrative procedures, the Central Basin Board's actions have also generated a public outcry, with the nomination process for new directors not starting as required and key meetings not being convened, as stipulated in the CB Administrative Code.

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