MADERA IRRIGATION DISTRICT

MADERA IRRIGATION DISTRICT BOARD OF DIRECTORS REGULAR MEETING &

GROUNDWATER SUSTAINABILITY AGENCY MEETING JANUARY 16, 2018

Directors Present: Richard Cosyns, Vice President entered at 1:25 p.m. Brian Davis Carl Janzen David Loquaci

Directors Absent: James Erickson, President

Staff Present: T. Greci, General Manager (GM Greci) D. Cadenazzi Nolan, Assistant General Manager (AGM Nolan) A. Kwock Sandoval, Secretary to the Board C. Contreras, Operations & Maintenance Manager (OMM Contreras) S. Smith, District Engineer (DE Smith) T. Welch, HR Administrator / Risk Manager (HR/RM Welch) A. Swanson, Controller

Others Present: General Counsel John Kinsey, Wanger Jones Helsley; Erik Smith, Adobe Ranch; Preston Brittian; Steven Nascimento; Rod Parichan

CALL TO ORDER / ROLL CALL Director Janzen called the meeting to order at 1:00 p.m. at the business office of the District at 12152 Road 28 lA, Madera, California 93637.

APPROVAL OF AGENDA MOTION: Director Loquaci / Director Davis to approve the agenda as presented.

VOTE: AYES: Unanimously approved NOES:

ABSTAIN: ABSENT:

POTENTIAL CONFLICTS OF INTEREST: Closed Session Director Cosyns will recuse himself from the Fresno River Riparian discussion. General Counsel Kinsey stated Director Janzen will recuse themselves from the Agriland discussion.

MID GSA & MID Board Meeting January 16, 2018 Page 2 PUBLIC COMMENT: Closed Session Director Janzen opened and closed public comment due to no public in attendance prior to closed session.

1. CLOSED SESSION Closed Session items not concluded prior to Regular Session may be continued at the end of the Regular Session.

la. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION -Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 ([4] potential cases)

lb. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION -Potential initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 ([4 potential cases)

lc. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION -Pursuant to Paragraph (1) of subdivision (d) of Section 54956.9; NRDC v. Murillo, et.al. U.S. District Court, Eastern District of California (Sacramento Division), Case No. 88-cv-1658-LKK-GGH.

1 d. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - Pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9; Madera Irrigation District / Madera Irrigation Financing Authority v. Stoel Rives, et. al., Case No. CIV533930

CALL TO ORDER REGULAR SESSION/ PLEDGE OF ALLEGIANCE Vice President Cosyns called regular session to order at 2:10 p.m.

REPORT ON CLOSED SESSION General Counsel Kinsey reported there was no reportable action taken during closed session.

POTENTIAL CONFLICTS OF INTEREST There were no potential conflicts of interested noted.

PUBLIC COMMENT: MID Groundwater Sustainability Agency & Regular Session Erik Smith, Adobe Ranch, congratulated MID on its accomplishments of 2017. Mr. Smith noted he has an 1887 article from when his great-great grand uncle purchased the Adobe Ranch property. He noted Adobe Ranch has long history with MID and he is looking forward with sharing the history with the District.

Director Janzen stated Lawanda Aldred passed away and she worked at the District sometime prior to 1980. Director Janzen noted former employee Jill Low's dad passed away last week.

RECESS AS MID BOARD OF DIRECTORS & CONVENE AS MID GROUNDWATER SUSTAINABILITY AGENCY - 2:10 p.m.

a. Update on MID Groundwater Sustainability Agency (GSA)

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GM Greci reported He and AGM Nolan will meet the MID consultant this week. MID staff and Director Erickson met with the Madera Water Association who represent some of the Madera County GSA landowners. The association is led by Madera County Farm Bureau. They are working to pull resources for the mutual benefit of the Madera County GSA landowners. They are planning on self-assessing to fund the group.

GM Greci reported the Madera County Director of Natural Resources and Water has left the County. Madera County has been actively recruiting and the District has offered to provide assistance.

Preston Brittian stated in Bakersfield the Shafter-Wasco Irrigation District has included the white areas in the planning. Director Janzen stated his understanding is Madera County has hired a consultant to assist with the grant. AGM Nolan stated the same consultant that completed the original work was hired to assist with the GSP. The Department of Water Resources has not yet awarded the grant for the $1.5 million for GSP development.

ADJOURN AS MID GROUNDWATER SUSTAINABILITY AGENCY AND RECONVENE AS MID BOARD OF DIRECTORS - 2:17 p.m.

2. CONSENT AGENDA

2a. Approval of December 6, 2017 Special Board Meeting Minutes

2b. Discussion / possible action on approval of warrant list payment through January 16, 2018

2c. Discussion / possible action on monthly financial report for December

MOTION: Director Janzen / Director Davis to approve items 2a. - 2c. of the Consent Agenda.

DISCUSSION: Secretary Sandoval noted item 2d. needs to be discussed separately because there are corrections to the Resolution.

PUBLIC COMMENT: Vice President Cosyns opened and closed public comment due to no comments from the public in attendance.

VOTE: AYES: Directors Loquaci, Cosyns, Davis, and Janzen NOES:

ABSTAIN: ABSENT: Director Erickson

2d. Discussion / possible action on Addendum to Madera Ranch Grazing Lease with TF Farms, Inc., Resolution No. 2018-01

MOTION: Director Loquaci / Director Janzen to approve Resolution No. 2018-01 as corrected.

MID GSA & MID Board Meeting January 16, 2018 Page 4

DISCUSSION: Secretary Sandoval noted Resolution No. 2018-01 had a few typos. The title should read "Madera Ranch" and not "Madera Lake". In addition, the agreement was signed in 2017 and not in 2016.

PUBLIC COMMENT: Vice President Cosyns opened and closed public comment due to no comments from the public in attendance.

VOTE: ROLL CALL AYES: Directors Loquaci, Cosyns, Davis, and Janzen NOES:

ABSTAIN: ABSENT: Director Erickson

3. INFORMATION ITEMS

3 a. Engineering Department Report

DE Smith provided an update on the Engineering Department. He reported the Rubicon gate frames were received. DE Smith reported on the power pendants being built. When there is not enough charge to the Rubicon batteries the canal operator can connect the power pendant to his truck battery or other portable battery.

3b. Finance Department Report • Annual Disclosure of Board Members or Employee Reimbursements over $100

pursuant to Government Code Section 53065

Controller Swanson reported the outsourcing of payroll to Paychex has been successful. Paychex has prepared the 4th quarter payrolls returns and the W-2s. The feedback has been positive from employees. The annual audit field work will begin in February.

3c. Human Resources Department Report

HR/RM Welch reported reconciling of January billing with open enrollment elections has been occurring. She has been working closely with the Finance Department on the transition to Paychex. Recruitment has been ongoing for the Maintenance Worker 1 positions.

3d. Operations & Maintenance Department Report

OMM Contreras reported the graders have been moving throughout the system. OMM Contreras stated pre-emergent will be started later this week. The 2017 smog check of all vehicles were completed.

MID GSA & MID Board Meeting January 16, 2018 Page 5

4. GENERAL MANAGER'S REPORT

4a. Update of Activities • Presentation of District's Transparency Certificate Renewal - Timed Item 3:00 p.m.

GM Greci reported on the Friant Water Authority (FWA) Managers' Meeting. There was discussion regarding water supply. There was a risk because of Edison operations there would be uncontrolled season releases to avoid a spill. The risk was avoided and there will not be any releases. With a 90% forecast, the prediction is 35% Class 1 and with 50% forecast there is a 75% Class 1.

GM Greci reported there was a Temperance Flat MOU Group meeting. The meeting focused on next steps on how the transition takes place between the Infrastructure Group and a new group. There were issues with the application and Stan tec is working on making those edits.

GM Greci reported on the Madera County Farm Bureau, FWA, and Chowchilla Water District Water Forum. FWA's Jason Phillips opened the forum. There was a presentation on Temperance Flat and the irrigated lands program. There were presentations on groundwater exchanges with a presentation from Fox Canyon and the 2018 water bond.

GM Greci stated next week he will attend a tour with Austin Ewell, the Deputy Secretary of the Department of Interior. The tour will includethe Madera Canal with FWA and Austin Ewell. They are currently working on legislation to get the title transfer for the Madera and Friant Kern canals. Jason Phillips will be testifying before Congress next week.

GM Greci reported there is an Ad Hoc Crop Water Rules and Regulations meeting scheduled for next Monday.

Mr. Steven Nascimento, CSDA Public Affairs Field Coordinator, presented the District with its Transparency Certificate Award. This is the second time the District has received the award.

5. NEW BUSINESS

5a. Discussion / possible action Temporary Construction Permit Agreement to the State of California to Relocate Bureau of Reclamation's Facilities for the Madera Irrigation District Lateral No. 6.2-14.0 Specifically Activities near Avenue 10 Friant Division, Central Valley Project, Resolution No. 2018-02

MOTION: Director Janzen / Director Loquaci to approve Resolution No. 2018-02.

DISCUSSION: DE Smith stated this is the second Temporary Construction Permit (TCP) that has come before the Board. The document is signed by the California High Speed Rail Authority, U.S. Bureau of Reclamation, and MID. This authorizes the contractor to begin construction of the approved design drawings. The TCP lays out the necessary land actions that are required to move forward.

MID GSA & MID Board Meeting January 16, 2018 Page 6

PUBLIC COMMENT: Rod Parichan questioned where on Avenue 10 the project will take place. DE Smith explained where the project will take place.

VOTE: ROLL CALL AYES: Directors Loquaci, Cosyns, Davis, and Janzen NOES:

ABSTAIN: ABSENT: Director Erickson

5b. Discussion only on Friant North Authority

GM Greci provided an update on the Friant North Authority (FNA). The meetings are now held quarterly. All of the General Members of FNA have re-joined FWA. At the January FNA meeting, it was discussed whether FNA was needed as an official Authority. The FNA Board of Directors agreed to keep FNA in place and have the home boards discuss.

Director Loquaci stated the general consensus was to keep the FNA joint powers agreement, refund some of the money to the member agencies since all members are full FWA members, and have a FNA limited budget.

Director Janzen questioned if other northern water agencies should be invited to join FNA. Director Janzen suggested a resolution from FNA be provided to the Bureau of Reclamation stating FWA speaks for FNA. He noted it was an issue at the ACWA Fall Conference. Director Loquaci stated it was his recommendation to terminate the joint powers agreement that forms FNA. It would lessen the confusion and strengthen FWA.

6. DIRECTOR REPORTS. COMMITTEE REPORTS. FUTURE AGENDA ITEMS Director Cosyns stated the Madera Chowchilla Water Power Authority will meet on February 7, 2018 at 10:00 a.m. at MID.

Director Davis reported he will attend the Mid-Pacific Conference. He reported on the Madera County Farm Bureau Water Forum.

Director Janzen reported on the Madera County Farm Bureau Water Forum and the Friant Power Authority.

Director Loquaci reported on the Madera County Farm Bureau Water Forum. He noted he has been seeing new faces at the local water events.

Director Erickson - absent

7. NEXT SCHEDULED BOARD MEETINGS

February 20, 2018 - Regular Board Meeting

MID GSA & MID Board Meeting January 16, 2018 Page 7

8. ADJOURNMENT The meeting was adjourned at 3:06 p.m.

APPROVED FOR THE BOARD:

Jam£s Erickson President

Irea KWOCK Sandoval Secretary to the Board