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By Brian Hews
Publisher | Follow X
April 26, 2026
The Central Basin Municipal Water District Board will take up a review of its legal counsel and rising legal costs at its regular Monday meeting, placing a spotlight on decisions made during the district’s 2023 leadership upheaval, as documented by Los Cerritos Community News.
The agenda includes a presentation on legal cost reductions and an ongoing evaluation of the district’s use of outside counsel.
The review comes after a series of moves in late 2023 that reshaped the district’s leadership and legal strategy.
At the time, then-President Michael Gualtieri (later resigned), Vice President Juan Garza, and Directors Martha Camacho-Rodriguez (lost election) and Thomas Bekele (later resigned) sought to place General Manager Dr. Alex Rojas on leave. According to sources familiar with the discussions, the district’s attorney at the time, Bob Baker, warned the Board that such a move could carry significant legal consequences.
Rojas was charged in 2022 with multiple counts including money laundering, bribery, and embezzlement tied to his prior role at Bassett Unified School District. He has denied the allegations, and the case remains unresolved in Los Angeles Superior Court. Those present at the last hearing, with the case now in the hands of the judge, told Los Cerritos Community News that several final witnesses contradicted their earlier statements against Rojas.
But Baker said that Rojas’ contract did not contain a “moral turpitude” provision that would allow the Board to place him on leave.
Within weeks, Baker was replaced. In December 2023, Gualtieri, Garza, Camacho-Rodriguez and Bekele voted to retain Victor Ponto of Burke, Williams & Sorensen LLP as general counsel.
Then things moved fast.
Over the course of two meetings, the Board’s leadership shifted, including the removal of then-President Art Chacon. Chacon and Rojas had previously overseen a financial turnaround at Central Basin, adding millions to reserves and improving the district’s credit position, according to district financial records.
Central to the dispute was a requirement in both Rojas’ employment contract and the district’s administrative code mandating six out of seven Board votes to place the general manager on leave or terminate employment.
But, according to sources at the time, Ponto advised that a simple majority—four votes—was sufficient.
Relying on that interpretation, Gualtieri, Garza, Camacho-Rodriguez and Bekele voted to place Rojas on leave.
Weeks after the move, the Board appointed Ponto as acting general manager while he continued to serve as the district’s legal counsel, placing the district’s attorney in charge during a critical transition period.
Ponto’s professional background is in law, not public agency water operations, meaning the district’s top executive role was filled by an attorney rather than a water industry professional during a period of significant operational and financial pressure.
Shortly after, the Board moved to hire a new permanent general manager, selecting Elaine Jeng, then the City Manager of Palos Verdes Estates. The hiring process was brief—lasting roughly one week—and resulted in an unbudgeted salary of approximately $265,000 plus benefits, paid from district funds.
At the time, the district was effectively paying two general managers simultaneously—Rojas, who remained on paid leave, and Jeng, who was brought in to replace him.
In the months and years that followed, Central Basin’s financial position declined.
District financial reports show unrestricted cash and investments increased after the sale of a district property, which Rojas oversaw, peaking at roughly $17 million.
Following the leadership changes that brought in Ponto and Jeng, those reserves fell to approximately $8.7 million by early 2026—a decline of nearly 50 percent. Over that same period, from late 2023 through February 2026, legal spending increased significantly. The Central Basin Board fired Jeng in February 2026.
Financial records obtained through a public records request and reviewed by Los Cerritos Community News show that more than $2 million has been paid to Ponto and his firm through February 2026—an average exceeding $74,000 per month.
And the legal costs may not be done.
In 2025, the same Board majority that removed Rojas approved hiring an additional outside law firm to pursue litigation against him, expanding the district’s legal exposure and adding a second stream of legal expenses tied to the same dispute.
The decisions made in 2023 are now showing up in the district’s balance sheet.
The sequence—change in legal counsel, reinterpretation of voting requirements, removal of a general manager, installation of legal counsel into an executive role, rising legal costs, and declining reserves—has drawn renewed scrutiny as the Board prepares to review its legal services.
Ponto continues to serve as general counsel, and Garza is the only remaining member of the Board majority that voted to place Rojas on leave.
With the district now facing ongoing legal matters and preparing for potential rate adjustments in the coming years, Monday’s review of legal counsel and costs could signal whether the Board intends to maintain or change its current legal strategy.
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