The Kern County Water Agency hired its own former board president as its new general manager last week at an annual base salary of $525,000.

Eric Averett, who apparently resigned his board seat Oct. 8 though that wasn’t announced until Thursday, will assume his new duties Nov. 24, according to the employment agreement unanimously approved by the agency’s board of directors.

Aside from the more than half a million in salary, Averett will also receive a $60,000 signing bonus, $40,000 a year into a retirement fund, $11,700 a year in car allowance, 240 hours of vacation time per year (with a maximum cap of 672 hours), plus 40 hours a year of “administrative leave time.”

“Hiring a general manager is the most important decision that a board can make,” director Gene Lundquist stressed. “So, I’d like to congratulate Eric Averett on his appointment.”

Conflict of Interest?

While many people sang Averett’s praises as a knowledgeable and innovative leader in both Kern County and statewide water issues, there was an undercurrent of concern about a potential conflict of interest following an email Averett sent out Thursday morning prior to the agency meeting.

“Dear Partners and Friends,” the email states. “I am reaching out to share that I have stepped down from the Board of the Kern County Water Agency and have accepted the position of General Manager of the organization.

“At the same time, I’ll be transitioning from my role as Chief Executive Officer of Homer later next month and am excited by the opportunity to serve Homer in a new role as a Board member and strategic advisor — continuing to help shape and grow how we serve our community’s water supply needs.”

Homer LLC, is the land and water division of Los Angeles-based Renewable Resources Group (RRG), co owned by Ari Swiller and Cole Frates. RRG started as a renewable energy investment firm but has become a major private investor in various water projects throughout California.

Averett’s Successor Named at Homer

The term “strategic advisor” raised eyebrows in the local water world.

Strategizing for a private, for-profit water company could be in direct conflict with working on behalf of the agency — a public, tax-funded entity — that is involved in just about every aspect of water from state imports to an ownership stake in the Kern River.

Averett’s email states that John Ocana will take his job as CEO at Homer.

“In my new capacity, I look forward to working closely with John and the entire team to ensure Homer continues to thrive as an integral part of the Central Valley water supply story,” the email concludes.

When asked whether this presents a conflict, Averett told SJV Water: “Nothing has happened yet.”

“It says I’m ‘excited about the opportunity,’” Averett said of the email. “Which means, they’ve asked, but nothing is done.”

As of Thursday, he said, he was no longer with the agency, is still working for Homer and has yet to become general manager of the agency.

“So, I’ll deal with that if and when it happens,” he said of any position with Homer. “And the agency will definitely have requirements.”

The potential for conflict was a concern when Averett was elected to the agency board in 2022 while working for Homer. He said he only recused himself from two votes in the last three years.

Kern County Water Agency Shake-Ups

The agency has had several leadership shake-ups in recent years.

In 2024, it fired its longtime General Counsel Amelia Minaberrigarai who obtained a $640,000 settlement on her way out.

Then in May of this year, the board, including Averett, voted not to renew the contract for its General Manager Tom McCarthy. No reason was given.

McCarthy had served as general manager since 2020 and earned a base annual salary of $380,016, according to the public employee wage tracking website Transparent California.

Four months after McCarthy’s departure, the agency announced at its Sept. 25 meeting that during its closed session the board had identified a new general manager candidate and would begin negotiations with that person who turned out to be Averett. According to the agency, Averett who was still board president, was excused from the closed session where the candidate was discussed. That is not reflected in the minutes of that meeting.

Though Averett’s employment agreement was approved Thursday, it may have to be brought back to the agency’s Nov. 19 meeting to be “re-ratified,” as it was not included in the agenda packet, which is required by the Brown Act, California’s open meeting law.

SJV Water had requested the agreement multiple times prior to the meeting as it was listed on the agency’s open session agenda but agency attorney James Ciampa declined to provide the document, saying later that it was still being drafted until distributed to the board at 10 a.m. the day of the meeting.

Averett’s history with the agency goes back to 1991 when he started in an entry level staff position. He worked for the agency for 17 years in different capacities and was then hired as General Manager at the Rosedale-Rio Bravo Water Storage District.

He left Rosedale-Rio Bravo in 2021 to take the job with Homer.

About the Author

SJV Water CEO and editor Lois Henry has spent 30 years covering the San Joaquin Valley.

About SJV Water

SJV Water is an independent, nonprofit news site covering water in the San Joaquin Valley, www.sjvwater.org. Email us at sjvwater@sjvwater.org