As the City Lord of Desolate Sky City, he was subordinate to Jade Cauldron Sect, although he couldn't even be considered an Outer Sect Disciple. He could only be described as a dependent of Jade Cauldron Sect's influence.
All the city lords under Jade Cauldron Sect's various forces were basically selected by the Sect, and of course, such affairs wouldn't be reported too far up the hierarchy, at most to the Peak Masters of each peak.
As a City Lord, in order to keep his position, he naturally had to maintain regular communication with people from Jade Cauldron Sect. However, this interaction did not mean personally visiting the Sect but instead sending gifts, which could only reach the hands of Inner Sect Disciples or Outer Sect Disciples. As for True Disciples, they had no right to make contact.
Nevertheless, they were aware of the status of True Disciples within Jade Cauldron Sect and naturally were also informed about some news from each peak.