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Council reviews proxy authority for mutual water companies; public speaker urges caution and audit
Summary
City manager David García recommended the council confirm proxy authority and nominees for mutual water-company representation; public commenter Jason Hunter argued the delegation could be unlawful and urged a third-party audit. Council moved the recommendation and proceeded to vote.
City staff presented a proposal on Dec. 2 for the City Council to confirm proxy authority and nominations to represent Riverside in mutual water company matters, and a public commenter urged the council to proceed cautiously and to order an independent audit.
David García, introduced in the meeting as the city manager/general manager, explained the three-step process the city follows when appointing representatives to mutual water company boards: designation of proxy authority, nomination/selection of representatives and issuance/assignment of stock or certificates as needed. García told the council the recommendation was to confirm proxy authority and the nominees and to authorize city staff to execute necessary documents to formalize the city's representation.
During public comment, Jason Hunter argued that delegating control (he described a 60% control scenario) to a private actor or to a single proxy could constitute an improper delegation of legislative authority and might run afoul of state rules. "Dar control a los 60 por 100... constituye una delegación que está fuera de la ley," Hunter said, and he urged the council to ensure any proxy arrangement preserves council oversight. Hunter also urged a third-party audit of past transactions to clear outstanding questions about prior expenditures and contracts.
Council moved the staff recommendation to confirm proxy authority and nominations and to authorize the city manager to execute related documents. The transcript records the motion being made and the council proceeding to a vote; the motion language and the vote were recorded in the meeting transcript, with the motion described as passing (vote tally not specified in the transcript).
What happens next: The authorization, if adopted in the meeting record, allows staff to proceed with executing documents necessary for the city's representation on mutual water company matters; the public speaker requested a separate independent audit of prior financial transactions.
