The Exchange Contractors board of directors met on Friday, October 4, 2024 at its Los Banos headquarters and on the telephone. I recall years ago pre-Sino-cooties getting up before everyone else went to bed and driving through fog – back when the Valley cranked out some serious fog – to get to an Ex Con meeting at 8:00am. It was nice to get in a warm room with cheese wheels that’d fit in the palm of your hand and fruit and pastries and coffee and decent company.
The Meeting
Chairman Chris Cardella called the meeting to order at the scheduled 9:00am time. The meeting began as a government meeting is supposed to begin – with the pledge of allegiance to the flag of the best country on earth. Executive Director Chris White asked everyone to introduce themselves. The agenda and minutes were reviewed and accepted and that included moving forward some of the informational items.
Election Update
The first presentation was from Arc Strategies. A lady named Kim Craig reported by phone saying this is going to be a barn burner in November. She expects a good chance of several recounts around the nation. But the funding of the San Joaquin River Restoration is in play in congress. She mentioned she’s been in touch with Kyle Lombardi who now works for Congressman John Duarte. Lombardi used to work for the former speaker from Bakersfield, Kevin McCarthy.
On the state side White spoke on legislation from Sacramento. For the most part there were good results, most of the bad bills were either defeated or amended to good effect. A couple of good bills didn’t pass, some fell by the way in the legislature or the Guv vetoed them whether you like it or not. White said the ballot will include the $8 billion Prop Four climate measure. It does have some money for water in it. However, check this out, the portion of funds for water is fairly limited to back filling the 2014 Prop One water supply funds that have been lost due to inflation.
If I understand correctly the State of California’s government has been able to implement an entirely new layer of government regulations, fees, fines and hoops to jump through in the Sustainable Groundwater Management Act, also passed in 2014. SGMA costs citizens hundreds of millions of dollars on the local level and could wipe out more than a million acres of the world’s most productive farmland. In this same amount of time the state government has been able to remain inactive by sitting on several billions of dollars of funding for increased water supply infrastructure to the point of a large portion of Prop One’s funding has been eroded by Bidenflation, I’m sorry, Bidenomics or inflation or whatever it’s called.
Public Outreach
There was a report from a couple of folks from Lighthouse Public Affairs. They also must have called in their report. It sounded a bit like the teacher in an old Charlie Brown cartoon. But let’s be clear, I’m not complaining. With a gallon of gas above $4 it helps my bottom line to avoid a three to four hour round trip drive. But I do miss the little cheese wheels with the fruit. Oh, and the decent company.
Also of interest were the several tours of the area and water infrastructure by elected officials, their staff, and the Ag Leadership Class which have all been very successful in telling the Ex Con story.
Finances
Joann White gave the financial report and she did it with such style and grace (accuracy and honesty) the board had no choice but to approve the report. Mr. White gave the board a look at the draft budget for 2025 and he said the Ex Con budget is going to err on the high side in light of the inflationary pressure we’re all feeling.
Water Report
Water Master Adam Hoffman said Ex Con is taking about 2,200 cfs with most of that going to wildlife refuges. Crop demands are higher than usual due to the unseasonal heat. There was a pulse flow on the San Joaquin River to clean up the gravel beds below Friant Dam in preparation for salmon honeymoons.
Storage in Shasta Reservoir is looking good. The federal side of San Luis Reservoir hit a snag at the end of September as the pumps were throttled back. But that should be solved with repairs on infrastructure and the Fall X2 victory of common sense science over bureaucratic inertia. The non-governmental organization, Save The Delta, immediately issued a press release claiming without the Fall X2 depriving folks south of the Delta with water all life on earth would end. I’m sorry, that NGO was Restore the Delta. Sometimes I get confused until I try to refer to this bunch by their initials.
There is 21,000 cfs entering the Delta today. Hoffman said the October Fall X2 has been off ramped with the adaptive management of using the Suisan Marsh Salinity Control Gates. But, things are not perfect. There was a major electrical problem that thankfully didn’t result in any loss of life, but did booger up the intertie plant that connects the Delta Mendota Canal with the California Aqueduct. This is preventing the Jones Plan from pumping to capacity due to limiting conveyance.
Exec Direct Report
White gave his report saying there was a good meeting with Ex Con and the US Bureau of Reclamation regarding the SJR restoration program. It was good to hear White say there has been some good progress and he’s optimistic barring something unexpected things are moving in the correct direction.
White said the Fall X2 controversy is being resolved and everyone is thankful for that. Jarred Martin, General Manager Central California Irrigation District reported on SGMA matters saying there will be a probation hearing before the State Water Resources Control Board whether or not the State Board staff finds the Groundwater Sustainability Plan adequate – which by all indications it will. The process must be followed and Martin advised when the letters noticing the probation hearing hit the growers’ mailboxes to be ready to respond to questions – presumably to prevent panic in the streets.
Attorney Andy McClure reported the State Board was slapped down in a Kings County court over implementation of SGMA probation for the Tulare Lake Subbasin, the first probation issued under SGMA. Superior Court Judge Cathy Ciuffini issued a preliminary injunction against the State Board preventing it from enforcing its probationary regulatory regime. The State Board couldn’t show how it wasn’t relying on underground regulations. An underground regulation is when a government agency invokes its perceived authority without having provided an opportunity to review the procedure used to determine the regulations. The court found the State Board didn’t allow for a good actors’ clause – as provided for in the SGMA statute. The State Board relied on testimony from witnesses the court didn’t find met the necessary level of credibility and in general didn’t present a probationary procedure that had been vetted publicly as required by law. I just read the state has announced its intention to appeal this ruling. I also understand the State Board has cut off all communication with the Tulare Lake Subbasin Groundwater Sustainability Agencies. These are the very GSAs trying to update the Groundwater Sustainability Plan the State Board found inadequate which led to the decision to place the subbasin on probation.
I’m only a barnyard lawyer at best but it occurs to me – if the government is for the people and by the people – it would be better for the State Board to work with the GSAs in crafting an acceptable GSP under upgraded procedures that will allow the subbasin to get out of any threat of probation. Wouldn’t that be a better way to prevent the undesirable outcomes SGMA is meant to avoid? It would also save all of us who pay taxes a great deal of money. And here’s a bonus – not appealing will prevent discovery. Does the State Board, its staff and the NGOs who have been calling for probation at every opportunity really want their communications aired in bright day light?
More Gov’t Mischief
Dave Cory said there should be a draft of the nitrogen in groundwater management plan released by the state this month. There will also be an expert panel process is where the State Board calls folks to testify about the nitrate situation. Cory said he’s anxious to hear something of who may be on this panel. He hopes to know by the end of the year. Cory was pleased with the modeling that has taken place so far. I didn’t catch the name of the gentleman in charge of the computer modeling for nitrates but Cory called him talented.
Attorney Report
McClure said the California Sport Fishing Association suit against the Delta Mendota Subbasin GSP that no longer exists continues to wind down. I really need to talk to the professionals about this. If I understand correctly the CSFA filed a suit against the Delta Mendota Subbasin because it believed its GSP was inadequate. That was before the GSP was finalized. The current GSP now up for consideration and review is many drafts different than the GSP being challenged in court. One could say the GSP being challenged in the suit no longer exists. Another NGO providing a helping hand in spending tax money.
McClure reported the Del Puerto Dam brief is being filed today. The road alignment plan for the new reservoir was completed and reviewed by Merced County. The county staff didn’t like it but didn’t have an alternative before the deadline of turning in the plan for CEQA review. The Sierra Club jumped on this lone comment and sued. The court said if CEQA certification can be denied based on one county staffer making a negative comment truly nothing will ever be accomplished. Good for the judge. The court said the county Planning Commission and the Board of Supervisors approval, which was given, was what was needed and told SC to pound sand. Maybe not pound sand, but the court ruled the Sierra Club’s legal theory about denying a new off stream reservoir didn’t hold water. Pun intended.
By the way, full disclosure, I’m a member of the Sierra Club or I was. I probably need to update my membership. I joined for two reasons. It was only $25 and it came with a signing bonus of a fanny pack which – if any S Clubbers are reading this – I never received. It was also difficult to get my membership card and payment processed. But that was neither here nor there when it comes to the main reason I joined. I joined so I would walk the walk and not just talk the talk. I believe there are far more Farm Bureau members than Sierra Club members.
If every member of the county Farm Bureaus in the San Joaquin Valley joined the Sierra Club a majority of its membership would be in place to help provide another point of reference in deciding what the Sierra Club should support and what it should oppose. On the rare occasion I’m invited to give my opinion on things, this is one of the ideas I like to share.
My position on things changes with my viewpoint. When I worked from an office in downtown Fresno publishing an actual printed newspaper, I used to advocate for giving the homeless old, inoperative and discarded cell phones so when they walked around talking to themselves they wouldn’t look so crazy. But with the event of blue tooth earpieces the appearance of walking around talking to oneself doesn’t present the stigma of poor mental health it once did.
Four Managers Report
I believe it was Mike Gardner, GM Columbia Canal Company went first. He’s working with Mrs. White over some USBR accounting matters.
Jeff Bryant, GM Firebaugh Canal Water District said they are preparing the fall delivery schedule for specialty crops and there’s work going on pumping maintenance. He said solar yielded some good news. A regulated output of power is about to be decided. PG&E has taken a while to get back with some answers. Bottom line is FCWD is trying to get a project running.
Someone was sitting in for Cannon Michael, Director of San Luis Canal Company and since GM John Wiersma wasn’t in attendance I can’t tell you who gave the report.
Martin reported there’s a weather station on CCID property and it’s verifying things are hotter than normal this time of year. I think that’s what he said.
Information & Closed Session
I believe it was Cardella who said PG&E now has to put up additional equipment about every third pole to clean up the power flow due to solar spikes. There wasn’t anything to report under the informational agenda item and that left just closed session. The meeting went into closed session at 10:13am with seven items to be considered. These items are legally allowed to be discussed out of the public view. The Ralph M. Brown Act allows for personnel matters, real property negotiations and lawsuits to be gone over in private by the directors, staff and consultants. That’s that. Go be good to each other and yourselves.
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SAN JOAQUIN RIVER EXCHANGE CONTRACTORS WATER AUTHORITY
Main Office: 541 H Street, P.O. Box 2115 Los Banos, CA 93653 Office 209/827-8616 www.sjrecwa.net Email: contactus@sjrecwa.net
DWR SGMA Identifier #5-022.07
The Exchange Contractors cover almost a quarter of a million acres in Fresno, Madera, Merced and Stanislaus Counties.
Mission Statement
The Exchange Contractors Water Authority mission is to effectively protect the Exchange Contract and maximize local water supply, flexibility and redundancy in order to maintain local control over the members’ water supply.
Board
Chris Cardella -Chair Columbia Canal Company, Mike Stearns-Vice Chair Director Firebaugh Canal Water District, Cannon Michael-Treasurer San Luis Canal Company, Eric Fontana- Director Central California Irrigation District
Staff
Chris White-Executive Director, Steve Chedester- Director Policies & Programs, Adam Hoffman-Water Resources Specialist, Joann White-Director Finance and Human Resources, Darlene O’Brien- Administrative Assistant, Andy McClure-Attorney Minasian Law Firm.
History
From the Exchange Contractors’ website: www.sjrecwa.net The San Joaquin River Exchange Contractors hold some of the oldest water rights in the state, dating back to the late 1800s. The rights were established by Henry Miller of the legendary Miller and Lux cattle empire. In 1871, Henry Miller constructed canals to divert water from the San Joaquin and North Fork of the Kings Rivers for irrigation of his vast acreage. Today, several of the original Miller and Lux canals are operated by the Exchange Contractors.
Although Henry Miller’s canals served the irrigation needs of his estate in the western portion of Fresno, Madera, Merced, and Stanislaus counties, in order for more growth on the east side of the San Joaquin Valley to occur, more water was needed. In 1933, the United States Department of Interior undertook the Central Valley Project, a vast undertaking to build dams throughout the great Central Valley including the Sacramento, American and San Joaquin Rivers. When construction of the Friant Dam (north of Fresno) was under consideration, feasibility studies showed that irrigation development of the Friant Project between Chowchilla and Bakersfield depended upon water being diverted from the San Joaquin River at Friant Dam and brought to the east side of the valley, via the Friant-Kern Canal.
To accomplish this, the government asked the heirs of Miller and Lux to agree to “exchange” where they receive their pre-1914 appropriative and riparian water from the San Joaquin and Kings Rivers for guaranteed deliveries of “substitute” water from the Sacramento River by means of the Delta-Mendota Canal and other facilities of the United States. This agreement, known as the “Exchange Contract,” along with the accompanying “Purchase Contract,” were reached in 1939 and that led to the name “San Joaquin River Exchange Contractors.” In normal years, the Exchange Contractors are guaranteed 100% of their contractual water allotment (840,000 acre feet) and in critical years the amount is 75% (650,000 a/f).
The Exchange Contractors, however, did not abandon their San Joaquin River water rights. Instead, they agreed not to exercise those San Joaquin and Kings Rivers’ water rights if guaranteed water deliveries continued through the Delta-Mendota Canal or other facilities of the United States.