The Basin Groundwater Sustainability Agency voted to approve an administrative-services contract with the City of Ukiah, enabling the city to assume many fiscal and administrative functions for the GSA. The board also directed the chair to work with staff and counsel to restore a conflict-of-interest provision that had been removed from a late draft of the contract.

The contract had been negotiated over multiple drafts and is based on the GSA's prior administrative arrangement with West Yost. Several directors raised concerns about language in the independent-contractor section that states the GSA "shall not have right to and shall not control the manner or prescribe the method" of city-performed services. Director Teresa McDonough expressed concern that such language could limit the board's ability to raise operational questions about how services are delivered.

Jonathan Weldon, representing the parties in the contract discussions, said the independent-contractor language is standard and intended to avoid creating an employer-employee relationship. "That provision just makes clear that they are serving a role that is a'a very specific purpose. It is not fully controlled by the GSA in a way that would effectively make the city become some sort of quasi employee of the GSA," Jonathan Weldon said.

Board members asked for additional clarifying language and questioned the absence of a conflict-of-interest clause that appeared in earlier drafts. Legal staff later confirmed a conflict provision had been deleted in late-stage edits and said they would work to restore or otherwise address the board's concerns. The attorney representing the City of Ukiah told the board the clause had not been removed at the city's request.

The board approved Resolution 25-4 (City of Ukiah Administrative Services Contract) by roll call with the motion recorded as carried. The motion authorizes the chair to sign the agreement and to work with counsel to make modifications to insert a conflict-of-interest provision acceptable to GSA counsel and the City of Ukiah counsel prior to finalization.

Directors voting in favor included Director Crane, Director Daskett, Director Watt, and Chair Cline; the motion carried on the recorded roll call. The board agreed the chair would review the final language and that the contract would include standard termination provisions (a 90-day termination clause was cited during discussion).

The approved contract and the pledged follow-up language changes come as the GSA prepares to amend its joint powers agreement and move administrative functions to the City of Ukiah.