The governing board of one of California’s largest public agencies wholesaling water to local authorities gave a principal manager a $1.4 million low interest loan in a closed session, the Associated Press reports, despite the Brown Act’s requirement that the compensation of non-union “unrepresented” employees must be approved by final action in open session.

According to the AP story by Ellen Knickmeyer, the 2007 loan by the Fresno-based Westlands Water District has never been repaid, its principal and interest have now grown to $1.57 million and the recipient, then Chief Deputy General Manager Jason Peltier, has moved on to head the San Luis & Delta-Mendota Water Authority in Los Banos, without mentioning the loan in his state-mandated financial interest disclosures until recently.

The board never announced the loan at the time, or even discussed it publicly. Chief Operating Officer Dan Pope told the AP that it never went on the public record because the board approved it in closed session.

The Brown Act provides, in Government Code section 54957.6 (a):

Notwithstanding any other provision of law, a legislative body of a local agency may hold closed sessions with the local agency's designated representatives regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits of its represented and unrepresented employees . . . Closed sessions held pursuant to this section shall not include final action on the proposed compensation of one or more unrepresented employees.