New manager of powerful Kern water agency won't have "second job"

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The new General Manager for the Kern County Water Agency (KCWA) won’t also continue working for his former employer, Homer LLC, the agency’s attorney confirmed Thursday.

Eric Averett “…is not advising, consulting, or on the Homer (or any of its related companies) Board of Directors. Eric and the Agency will comply with all governing rules now and in the future,” attorney Jim Ciampa wrote in response to questions about Averett’s continued association with Homer.

Concerns about that connection rose after Averett sent an email to a string of people involved in local water the morning of Oct. 23 before his new position was announced.

In that email he suggested he might join the board of his former employer and also work as a “strategic advisor” for Homer.

“…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,” Averett’s Oct. 23 email states.

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. Homer and RRG have numerous associated companies, including Atlas LLC. Averett had been CEO at Homer since 2021. On his LinkedIn profile, Averett states he is the CEO at Atlas LLC.

**Eric Averett talks about water prices at the Rosedale-Rio Bravo Water Storage District where he was general manager in this 2019 photo. Lois Henry / SJV Water**

Serving as manager of one of the most powerful water agencies in Kern County, arguably the state, while working for a private water investment company struck a number of local water officials as a conflict of interest.

“Is there anything funky about him becoming GM (general manager) when he was on the board, and he is in Homer? ” asked a board member of the Wheeler Ridge-Maricopa Water Storage District at a recent meeting.

He referred to the fact that Averett had also been president of the KCWA board until resigning Oct. 8 – which was not announced – and being named general manager Oct. 23.

That move raised questions about a possible violation of Gov. Code Section 1090, which forbids public officials from benefitting from contracts they have a hand in crafting.

Former KCWA general manager Tom McCarthy was let go in May and Averett presided over several closed session meetings during the next four months where the position was listed as an agenda item.

Ciampa said Averett recused himself from the Sept. 25 closed session where the board reported it had identified a candidate (apparently Averett) and would begin negotiations with that person.

The eventual contract was substantial with $525,000 in base pay, plus a $60,000 signing bonus, among other perks.

“However, no discussions concerning the General Manager position at all occurred at any time prior to former Director Averett submitting his resignation on October 8. Only after the resignation was submitted were negotiations of the contract commenced,” Ciampa wrote in response to questions from SJV Water about a possible 1090 violation.

Several advice letters from the Fair Political Practices Commission seem to indicate that even if board members don’t participate in making the contract and resign their seats, they are still prohibited from being awarded contracts from their own agencies.

At the very least, hiring Averett as its new General Manager presents KCWA with “an appearance problem,” one legal observer said.

Ciampa said he had researched the issue and was confident there was no violation of Section 1090.

**Members of the Kern County Water Agency, minus former president Eric Averett, prepare to vote to hire Averett as the agency’s new general manager at their Oct. 23 meeting. Lois Henry / SJV Water**

Averett officially took the reins as General Manager at the agency’s Nov. 19 board meeting.

At that meeting, the board elected Marty Milobar as its new president, Gene Lundquist as its vice president and laid out the process to fill Averett’s vacant seat. Averett was elected to the KCWA board in 2022.

The board will select Averett’s replacement to fill out his term, which runs through December 2026.

Interested applicants must be registered voters who reside in Division 4. Statements of interest must be emailed to boardsecretary@infocwa.com by 5 p.m. on December 10.

The board will select the new director at its Dec. 17 meeting.