Feb 11, 2026 GSA Meeting

[1. CALL TO ORDER/ROLL CALL]

[00:00:02]

LADIES AND GENTLEMEN, WELCOME TO THE MAIN EVENT, THE FEBRUARY 11TH MEETING OF THE MERCED SUBBASIN GSA. WE HAVE ON THE LEFT SIDE. OH ANYWAYS I'LL CALL THE MEETING TO ORDER, AND I'LL DO A CLOSED SESSION. OR, I MEAN, A PUBLIC COMMENT FOR CLOSED SESSION.

SEEING NONE, WE'LL GO INTO CLOSED SESSION. I'D LIKE TO WELCOME EVERYBODY TO THE FEBRUARY 11TH MEETING OF THE MERCED SUBBASIN

[2. CLOSED SESSION]

HERE. BOARD MEMBER PARK. HERE. BOARD MEMBER GIAMPAOLI.

HERE. BOARD MEMBER KELLY. HERE. VICE CHAIRMAN MARCHINI.

HERE. CHAIRMAN PAREIRA. PRESENT. MR. CHAIR, YOU HAVE A QUORUM.

THANK YOU. WE HAD A CLOSED SESSION, AND STAFF WAS GIVEN DIRECTION.

WE WILL NOW GO TO ITEM 3. PLEDGE OF ALLEGIANCE.

MIKE, WOULD YOU LEAD US? READY, PLEDGE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

THANK YOU. MIKE. WE'LL MOVE TO ITEM 4. PUBLIC COMMENT.

[4. PUBLIC COMMENT PERIOD]

GOOD AFTERNOON, VALLEY WATER SOLUTIONS. PEOPLE HAVE BEEN APPROACHING ME AND JUST WANT TO MAKE SURE THAT YOU ARE AWARE OF THESE KIND OF INTERESTS OUT THERE ESPECIALLY WE'RE TALKING ABOUT IN THE WHITE AREAS.

IF SOMEBODY HAS A PARCEL, AND IT HAPPENED TO BE IN AN AREA THAT IS ZONED FOR SUBDIVISIONS.

SAY SOMEBODY HAS 100 ACRES AND AND IT'S ZONED FOR 20 ACRES, AND MAYBE THEY COULD GO FOR A MINOR SUBDIVISION, OR THEY WOULD HAVE FOR 20 ACRE PARCELS, BUT THEN THEY.

AND THE REMAINDER COULD BE MORE. IT COULD BE MORE THAN 100 ACRES.

AND THE FOR SOMEBODY TO DO THAT, MAYBE A HOUSE COULD BE BUILT ON THOSE 20 ACRES AND IT WOULD BE FOULED WITH ONLY DOMESTIC.

WELL AND THEN THE AVAILABLE WATER, THE REMAINING WATER, REMAINING WATER FROM THOSE PARCELS COULD BE MOVED TO THE THE REMAINING PARCEL. SO SO BASICALLY YOU HAVE THE ECONOMY STILL GOING.

THERE'S A VALUE TO THOSE PARCELS WHERE THE THE SUBDIVIDED PARCELS WOULD BE, WOULD BE, WOULD ONLY HAVE A DOMESTIC WELL ON THEM, AND THE REMAINING PARCEL COULD TAKE THE REMAINING. THE AVAILABLE WATER MINUS THE 2 ACRE PARCEL.

I DON'T KNOW IF THAT REQUIRES A POLICY. BUT THERE'S A LOT OF INTEREST OUT THERE TO KEEP THE VALUE OF THE PROPERTY UP AND TO KEEP.

SOME REVENUE FOR THOSE FOLKS. THEY HAVE NO ACCESS TO OTHER WATER EXCEPT THEIR GROUNDWATER.

SO WOULD THAT BE JUST FOR CLARIFICATION? SO THAT'D BE LIKE A DEED RESTRICTION ON THE PROPERTY.

WHEN THEY SOLD IT, THE 20 ACRES GET SOLD DEED RESTRICTION THAT THE SUSTAINABLE NATIVE SUSTAINABLE YIELD GOES WITH.

YES. SO THE THE THE THE PARCELS THAT ARE SUBDIVIDED, SAY A 20 ACRE PARCEL.

NOW, IT COULD ONLY USE 2 ACRE FEET PER YEAR, BUT THE WHATEVER ACCOUNT, WHATEVER IS AVAILABLE STILL, IF IT HAPPENED TO BE 1 ACRE FOOT PER ACRE 18 ACRES COULD MOVE TO THE TO THE REMAINING PARCEL.

YEAH. I DON'T KNOW IF THAT WOULD REQUIRE A POLICY, BUT PEOPLE NEED SOME GUIDANCE BECAUSE PEOPLE ARE STARTING TO PLAN AND FIGURE OUT WHAT TO DO IN THE FUTURE AND HOW THEY COULD SURVIVE ON WHATEVER ACREAGE THEY HAVE.

YEAH. OKAY. THANKS. THANK YOU. SEE YOU ALL.

ANY OTHER PUBLIC COMMENT? ALL RIGHT, THEN, I'LL CLOSE PUBLIC COMMENT.

WHAT? OKAY. TIME OUT. THAT'S THAT'S NOT THIS, THAT'S THAT. THAT'S WHAT NICK SAID.

WELL, WE DON'T KNOW HOW LONG IT'S GOING TO TAKE. OKAY? WE'RE HAVING TECHNICAL DIFFICULTIES. WE'LL SPIN THE MEETING FOR A MOMENT.

RIGHT. WE ARE BACK LIVE. IN NEW YORK. OH ALL RIGHT, WE'LL ANY.

WAS THERE ANY MORE PUBLIC COMMENT? OKAY, WE'LL CLOSE PUBLIC COMMENT AND MOVE TO ITEM FIVE,

[5. CONSENT CALENDAR]

[00:05:10]

I'LL SECOND THAT. OKAY. I HAVE A MOTION BY DIRECTOR GALLO.

A SECOND BY DIRECTOR MARCHINI. ANY FURTHER DISCUSSION? SEEING NONE. ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.

AYE. ANY OPPOSED? SAME SIGN. MOTION CARRIES 6-0.

ALRIGHT, NOW WE'LL MOVE ON TO NUMBER 6. OUR MULTI-BENEFIT LAND REPURPOSING PROGRAM AND RAN FROM VALLEY ECO IS GOING TO GIVE US AN

[6. MULTIBENEFIT LAND REPURPOSING PROGRAM]

ALL RIGHT. JUST BY WAY OF THE MAIN PURPOSES OF TODAY'S ME TODAY. YOU HAVE CLICKING CONTROL ON YOUR SIDE.

LACEY. WONDERFUL. THANK YOU. SO THE MAIN PURPOSE OF TODAY'S UPDATE IS ACTUALLY TO KIND OF PREPARE THE BOARD FOR A VERY BUSY BOARD MEETING NEXT MONTH.

IF YOU CAN CLICK TO THE NEXT SLIDE. WE HAVE A SERIES OF UPDATES INCLUDING UPDATES REGARDING THE CLOSING AND PROCESSING OF THE PREVIOUS SOLICITATION FOR MLP FOR DEVELOPMENT FUNDS WITHIN THE SUB BASIN.

THAT'S PROBABLY GOING TO BE THE MAJORITY OF THE UPDATE OR THE MAJORITY OF THE WORK FOR THE NEXT BOARD MEETING, JUST BROADER PROGRAMMATIC PROGRAMMATIC UPDATES BEFORE WE GET INTO THOSE DEVELOPMENT PROJECTS.

THE MLP PROGRAM DID, IN FACT SUBMIT DEPARTMENT OF CONSERVATION IN CONJUNCTION WITH MULTIPLE OTHER SUBBASINS THROUGHOUT THE THROUGHOUT THE STATE A REQUEST THAT ONGOING FUNDING IS ALLOCATED TO EXISTING SUBBASINS IN THE MLP PROGRAM.

MUST HAVE BEEN SUCCESSFUL, I SUPPOSE BECAUSE OH NO, I'M JUST JOKING.

THERE'S NO REAL CLEAR CORRELATION. BUT THE STATE ALSO RELEASED SORT OF IN CONCURRENCE OR SORT OF IN CONCURRENCE ON THAT TIMELINE, AN UPDATED BUDGET AND FUNDING AMOUNT FOR THIS UPCOMING FISCAL YEAR.

UNDER PROP FOR FUNDING PROP 4 HAS I THINK IT'S $200 MILLION ALLOCATED IN NET UNDER MLP.

UNDER THIS CURRENT ROUND OF FUNDING, THEY'RE EXPECTING TO RELEASE 65 MILLION FOR THIS UPCOMING FISCAL YEAR.

WE DON'T HAVE CLEAR GUIDANCE AS FAR AS HOW THAT MONEY COMES OUT AND WHAT FASHION.

I'LL PROVIDE A QUICK UPDATE FROM THE STATEWIDE SUPPORT ENTITY ON THAT FRONT.

ADDITIONALLY, WE HAVE A COUPLE BIG ELEMENTS IN SORT OF IN HOLDING WITH THE DEPARTMENT OF CONSERVATION.

ONE OF THE PRIMARY SORT OF LOGISTICAL ELEMENT THAT DOC IS LAND IMPINGEMENT MECHANISMS. SO THROUGHOUT ALL THESE PROCESSES, WE OF EITHER DOING WORK ON GROUND THROUGH MLP OR ACQUIRING EASEMENTS ON PROPERTY.

THERE IS NO LEGAL SORT OF PRECEDENT FOR THAT WITHIN THE STATE BEYOND THE SALC PROGRAM.

SO WE'RE WORKING WITH THE DEPARTMENT TO BUILD THESE MECHANISMS. IT'S LIKELY THAT CUI AND MERCED WILL AND WILL PROBABLY HAVE THE 1ST TERM EASEMENT THAT RUNS THROUGH THIS PROGRAM.

AND THERE'S NOT A WHOLE LOT OF SORT OF PRECEDENT FOR THAT.

SO WE'RE WAITING ON DOC'S LEGAL REVIEW ON THAT, AND WE'RE HOPING TO HAVE THAT IN THE NEXT THE NEXT MONTH OR SO.

ADDITIONALLY, WAITING ON WE'RE WAITING ON DC FOR THE FINAL IMPLEMENTATION PROJECT.

THERE'S 5. JUST A REMINDER, THERE'S 5 IMPLEMENTATION PROJECTS IN THE SUB BASIN.

THAT WILL HOPEFULLY THE INTENT ON TIMELINE WILL HAVE, WILL BE TO HAVE THAT IMPLEMENTATION CONTRACT AT THIS BOARD AT THE UPCOMING BOARD MEETING.

NEXT SLIDE PLEASE. THANK YOU. JUST SINCE WE'RE TALKING ABOUT IMPLEMENTATION PROJECTS, JUST A FEW SNAPSHOT UPDATES, THERE ARE 4 IMPLEMENTATION PROJECTS THAT ARE ALREADY UNDER CONTRACT AND SORT OF UNDERWAY IN DIFFERENT CAPACITIES WITHIN THE SUB BASIN.

ON THE BEAR CREEK RANCH TRANSITIONAL PROJECT THE MAJORITY OF THE SITE HAS BEEN SEATED.

IT WAS SEATED THIS FALL SLASH WINTER WITH NATIVE GRASS AND COVER CROPS.

THE AMSTERDAM PROJECT, THE VALLEY ECO TEAM HAS DONE A LITTLE BIT OF, WELL, A GOOD AMOUNT OF TECHNICAL ASSISTANCE WORKING WITH THAT PARTNER.

BASED ON SOME OF THE SOIL DATA AND LOCAL WELL LOGS WE MADE SOME RECOMMENDATIONS ON POTENTIALLY RESIDING THAT PROJECT.

AND SO THAT PROJECT IS CURRENTLY AT THE, AT THE PROPONENTS ENGINEER TO REVIEW THOSE RECOMMENDATIONS AND EVALUATE THE FEASIBILITY OF A RESIDING. IT'S STILL ON THE SAME PARCEL BUT RESIDING OF THAT THAT RECHARGE BASIN.

THE LAGRANGE COMMUNITY FOUNDATION IS LEASED THE PROPERTY, AND THIS IS JUST PART OF THE PROCESS IN WHICH TO TRANSITION THIS PARK INTO PLACE.

AND THEY'RE WORKING ON ENTITLEMENT AS THEIR NEXT STEP.

THAT PROJECT IS, FROM OUR PERSPECTIVE, IS PROBABLY ONE OF THE MOST AUTOPILOT PROJECTS IN THIS PORTFOLIO,

[00:10:01]

IT'S GETTING DISKED RIGHT NOW. IT'S IT'S A LITTLE WEEDY, ADMITTEDLY.

BUT WE'RE WE'RE WORKING WITH THE LANDOWNER TO MANAGE WEEDS AND HOPE TO HAVE THAT SITE SEATED IN THE COMING FALL.

NEXT SLIDE PLEASE. AND PLEASE FEEL FREE IF THE BOARD HAS QUESTIONS COMMENTS, FEEL FREE TO INTERRUPT ON THESE ELEMENTS.

THE NEXT TWO SLIDES ARE UPDATES ACTUALLY FROM THE STATEWIDE SUPPORT ENTITY AND DOC OF REGARDING THIS UPCOMING FUNDING POOL THAT I ALLUDED TO EARLIER IN THE UPDATES. THERE ARE 2 SORT OF STRATEGIES THAT WE'RE WAITING ON, OR TWO SORT OF THINGS THAT WE'RE WAITING ON FROM THE DEPARTMENT ON THIS FRONT.

01, THE DEPARTMENT HAS OPTED TO SORT OF REFINE AND UPDATE ITS MLP GUIDELINES, WHICH I THINK IS RATHER REASONABLE GIVEN HOW INTENSE THE PROGRAM HAS BEEN. SORT OF IN THIS 1ST ROUND, IT'S REQUIRED A LOT AND LEFT A LOT OF SUBBASINS, SORT OF TRYING TO FIGURE OUT HOW TO NAVIGATE A LOT OF THE LOOSENESS OF THE, OF THE PROGRAM. AND SO WE'RE EXPECTING SOME UPDATED CLIMATE OR SOME UPDATED GUIDELINES FOR THE MLP PROGRAM TO COME ATTACHED TO THIS UPCOMING FUND.

SO MLP COULD CHANGE POTENTIALLY PRETTY SIGNIFICANTLY OVER THE OVER THE NEXT YEAR.

ADDITIONALLY, WE ARE AWAITING SORT OF ON THE TAILS OF THAT UPDATED GUIDELINES.

WE'RE WAITING ON A STATE LED NOFO, SO NO OR NOFA NOTICE OF FUNDING AVAILABILITY.

AND THIS WILL BE THE PRIMARY MECHANISM BY WHICH THE STATE AIMS TO ALLOCATE THAT 1ST BLOCK OF FUNDS.

NEXT SLIDE PLEASE. LACEY. THIS IS A QUICK SNAPSHOT ON WHAT THAT TIMELINE LOOKS LIKE.

AGAIN, I'M BORROWING THESE OR I'M STEALING THESE SLIDES DIRECTLY FROM THE STATEWIDE SUPPORT ENTITY IN THE STATE.

I'M NOT ENTIRELY SURE THAT IT IS TEMPORARILY A LOOP, A TIME LOOP, BUT I WILL SAY THE PROCESS IS MEANT TO BE ITERATIVE, RIGHT? SO THEY'RE EXPECTING TO RELEASE THESE GRAPH THESE DRAFT GUIDELINES IN THE NEAR TERM.

THOSE GO TO A 45 DAY PUBLIC COMMENT PERIOD, AND AFTER WHICH THE STATE AND THE STATEWIDE ENTITY WILL REFINE THOSE GUIDELINES AND RINSE AND REPEAT UNTIL THOSE GUIDELINES ARE INTO OR SATISFACTORY TO THE DEPARTMENT. I'LL PAUSE THERE IN CASE THERE ARE ANY QUESTIONS ON THIS.

ALL RIGHT. I DO HAVE A QUESTION. HELP ME. BECAUSE THE NEW TERMINOLOGY CLIMATE CLIMATE BOND.

I DON'T UNDERSTAND IT. PROP 4 IS THE IS THE. THAT'S PROP 4.

OKAY. SO THAT'S INTERCHANGEABLE WITH CLIMATE BOND.

YEAH. AND IT CHANGES THE WAY. RIGHT. SO THAT BOND HAS DIFFERENT STIPULATIONS.

IT'S ACTUALLY HOLDING UP MULTIPLE AGENCIES AS A BIG BLOCK OF MONEY WITH DIFFERENT SORT OF STRINGS ATTACHED.

SO EACH AGENCY IS SORT OF TRYING TO EVALUATE HOW THEY'RE GOING TO DISTRIBUTE THEIR ALLOCATIONS.

MLP IS IN THAT BLOCK, LIKE I SAID, IN THAT BOND FOR ABOUT $200 MILLION.

ALL RIGHT. THANK YOU. THANKS, BOB. ANY OTHER QUESTIONS? I KNOW THIS IS DRY. MAYBE I SHOULD BE A LITTLE MORE EMPHATIC. AND IT JUST FEELS DRY.

NEXT SLIDE PLEASE. ONE MORE. SO WE'RE GOING TO DIVE INTO DEVELOPMENT APPLICATIONS HERE.

THE RFP FOR THE MERCED SUBBASIN MLP PROGRAM DEVELOPMENT FUNDS WAS CLOSED AT THE END OF JANUARY.

THERE WERE 12 APPLICANTS. 10 WERE CONSIDERED ELIGIBLE INITIALLY.

HOWEVER, 2 OF THOSE 10 ACTUALLY OVERLAP SPATIALLY.

SO WE HAVE 9 ELIGIBLE PROJECTS CURRENTLY IN THE HOPPER FOR THESE DEVELOPMENT FUNDS.

THE TOTAL FUNDING REQUEST FOR THE SUBBASIN WAS $1.6 MILLION, WHICH IS ABOUT DOUBLE THE CLIP OF WHAT THE AVAILABLE FUNDING OF THE PROGRAM, WHICH IS $750,000. SO OVER THE NEXT MONTH, WHERE THAT PUTS US AND NEXT SLIDE, WHERE THAT PUTS US PROGRAMMATICALLY IS AN INITIAL ELIGIBILITY SCREENING VALUE HAS ACTUALLY PERFORMED THIS ALREADY.

IT'S HOW WE GOT THAT 12 DOWN TO 9 FROM VALLEY ECO.

THIS WILL THEN GO RIGHT NOW TO A GROUP OF FOUR EXPERT ORGANIZATIONS THAT SERVE AS THE TECHNICAL COMMITTEE.

THOSE PROVIDE THOSE ORGANIZATIONS OR INDIVIDUALS PROVIDE THE FIRST, 1ST WAVE OF PROJECT REVIEW, PROVIDE THEIR RECOMMENDATIONS AND SCORES. SUBSEQUENTLY, THOSE PROJECTS GO TO A SUBCOMMITTEE OF THIS BOARD TO TO DO THEIR OWN SCORING AND REVIEW PROJECTS. THE LAST SORT OF LOCAL STEP PRIOR TO GOING TO THE DEPARTMENT FOR REVIEW OR SECOND TO LAST STEP IS TO GO TO THE STAKEHOLDER ADVISORY COMMITTEE. THE STAKEHOLDER ADVISORY COMMITTEE WILL MEET ON THE 5TH OF MARCH, AND THEY'LL PROVIDE ANY COMMENTS OR CONCERNS THAT THEY MIGHT HAVE ON THE RECOMMENDATIONS THAT THEY MIGHT HAVE ON THESE PROJECTS BEFORE THEY COME BACK TO THIS BOARD.

[00:15:03]

IN MY OPINION SUBSEQUENT TO THAT, THESE PROJECTS WILL BE SUBMITTED TO THE DEPARTMENT OF CONSERVATION TO TO REVIEW.

AND THAT'S WHERE THIS BOARD WILL BE. NEXT MONTH IS GOING THROUGH THESE PROJECTS AND REVIEWING THE COMMENTS FROM THOSE COMMITTEES AND MAKING RECOMMENDATIONS OR NOT MAKING RECOMMENDATIONS TO ADVANCE THOSE PROJECTS TO THE DEPARTMENT. NEXT SLIDE PLEASE.

SO JUST IN ADDITION TO THOSE DEVELOPMENT PROJECTS, THE THINGS WE EXPECT TO HAVE ON THE DOCKET, AGAIN, IT'LL BE A FULL SOUNDS, NOT JUST ON MLP.

SOUNDS LIKE IT'LL ALSO BE OTHER THINGS, BUT WE HAVE A FULL MLP DOCKET FOR THE NEXT MONTH AND THE HOPES OF MOVING THESE DEVELOPMENT PROJECTS FORWARD AND HOPEFULLY GETTING THAT 5TH IMPLEMENTATION PROJECT INTO CONTRACT SO THAT THEY CAN START TURNING DIRT.

LAST, AND THIS IS LASTLY, AND THIS IS MORE OF A PLUG AND A REQUEST FOR FOR MEMBERS OF THE COMMUNITY, EITHER ONLINE OR IN THE THE AUDIENCE BEHIND ME.

THE NEXT SLIDE. THANK YOU. LACEY. THE MLP PROGRAM OPERATES AND YOU JUST SAW IT BRIEFLY IN THAT SLIDE DECK.

THE MLP PROGRAM HAS LIKE A PRETTY KEY ENTITY THAT IT'S DEVELOPED TO PROVIDE OVERSIGHT AND TRANSPARENCY OF THESE FUNDS AND HOW THE PROGRAM IS SHAPING UP THAT STATE THAT THAT GROUP IS CALLED THE STAKEHOLDER ADVISORY COMMITTEE.

IT HAS INDIVIDUALS REPRESENTED FROM DIFFERENT SECTORS OF THE REGION COMMUNITIES, GROWERS, AGENCIES, IT'S ACADEMICS AND THAT ORGANIZATION HAS OR THAT COMMITTEE HAS PRETTY CLEAR ROLES WITHIN THE MLP PROGRAM.

THE GROWER, THE FARMER, LANDOWNER PORTION OF THAT BLOCK OF OR OF THIS COMMITTEE IS LACKING OVER TIME WE'VE JUST LOST A LOT OF REPRESENTATION OF THAT GROUP.

SO THIS IS A A CALL AND A REQUEST FOR COMMUNITY MEMBERS WHO ARE INTERESTED AND AVAILABLE TO PARTICIPATE.

IT'S A GOOD OPPORTUNITY TO ENSURE THAT GROWERS ARE ADEQUATELY REPRESENTED IN THIS SPACE, THAT THEY'RE SORT OF SEEN BY OTHER SECTORS OF THE, OF THE COMMUNITY AND SORT OF ABLE TO HASH THESE CONCEPTS OUT IN REAL TIME AND HAVE VISIBILITY ON HOW THIS PROGRAM IS BEING LAID OUT.

JUST A QUICK ON. I'M NOT GOING TO READ THROUGH THESE BUT JUST ON THE IF YOU CHECK OUT THE SLIDE DECK AND AS YOU WALK OUT TODAY THIS IS JUST AN EXAMPLE OF WHAT THAT STAKEHOLDER ADVISORY ROLE IS. IF ALL YOU HAVE IS A PHONE AND NO PEN, IF YOU WANT TO CLICK ON THE NEXT SLIDE, LACEY, YOU CAN JUST SCAN THIS QR CODE. YOU CAN ALSO CATCH ME IF YOU'RE FAST ENOUGH ON THE WAY OUT TODAY.

AND I COULD ALSO JUST TAKE DOWN YOUR INFORMATION IF YOU'RE ABLE TO, AND INTERESTED IN PARTICIPATING IN THIS STAKEHOLDER ADVISORY COMMITTEE.

IF YOU SCAN THAT, IT'LL TAKE YOU TO THE MLP WEBSITE, AT WHICH POINT YOU CAN JUST TYPE IN A NOTE THAT SAYS, HI, I'M INTERESTED IN PARTICIPATING. THIS IS MY INFORMATION.

AND THEN WE'LL WE'LL FOLLOW UP WITH YOU DIRECTLY.

I KNOW THAT WAS A LOT, BUT AGAIN, HOPEFULLY THIS WILL SAVE YOU SOME TIME DURING THE NEXT MONTHS SORT OF PACKED AGENDA.

ANY QUESTIONS OR COMMENTS ABOUT THE MLP PROGRAM? ANY QUESTIONS OR COMMENTS? NO, YOU'RE PRETTY THOROUGH.

ALL RIGHT. THANK YOU. OH, I DO HAVE ONE QUESTION.

SO YOU SAID THERE WAS 2 PROPERTIES THAT WERE COVERED, BOTH COVERED BY THE SAME APPLICATION.

WAS THAT SIBLINGS OR A COUPLE? I'M NOT I SHOULD SAY. I'M THINKING OF HOW TO, YOU KNOW, 2 DIFFERENT PEOPLE PUT IN THIS DEAL FOR THE SAME LAND.

YEAH. THAT'S FUNNY. THEY'RE RELATED. YEAH. BUT YES.

I DON'T WANT TO PROVIDE ANY MORE DETAIL. YEAH.

NO WORRIES. I JUST WANTED TO MAKE PEOPLE CHUCKLE. I DON'T KNOW, THERE'S COMMUNICATION THERE.

YES THERE IS. ALL RIGHT. OH, THERE WE GO. ALL RIGHT.

THANK YOU FOR THAT. WE'LL MOVE TO ITEM 7. WE'RE GOING TO PULL ITEM 7.

SORRY ABOUT THAT. DURING OUR CLOSED SESSION, STAFF WAS GETTING SOME DIRECTION, AND WE FEEL DISCUSSING THIS ITEM TODAY WOULD INTERFERE WITH THE IMPROVEMENTS THAT NEED TO BE MADE. OKAY WE'LL MOVE ON TO ITEM 8, BUDGET AMENDMENT.

[8. BUDGET AMENDMENT]

THIS ITEM IS A BUDGET. IT'S A SIMPLE BUDGET AMENDMENT THAT SHIFTS DOLLARS IN THE ACCOUNTS IN YOUR BUDGET TO ENSURE THAT EACH ACCOUNT HAS ENOUGH BUDGETED DOLLARS IN IT FOR INVOICES TO BE PAID FROM THOSE ACCOUNTS.

LET ME MAKE SURE. YEAH. THE FISCAL YEAR 25-26 BUDGET WAS APPROVED.

THAT THIS BOARD, APPROVED IN 2025, INCLUDED $3,000 IN THE MEMBERSHIP ACCOUNT LINE.

[00:20:01]

AND THIS WAS SPECIFICALLY FOR THE AQUA AFFILIATE MEMBERSHIP.

THIS IS A REQUIRED MEMBERSHIP TO BE ELIGIBLE FOR THE AQUA APPIA INSURANCE THAT THE GSA HAS.

THE CURRENT YEAR'S INVOICE FOR THE AQUA AFFILIATE MEMBERSHIP DUES IS JUST OVER $6,000, AND THE MEMBERSHIP DUES ARE BASED ON AGENCY SIZE AND REVENUE.

SO THIS BUDGET AMENDMENT IS GOING TO MOVE $4,000 FROM YOUR CONTINGENCY LINE ITEM INTO THE MEMBERSHIP LINE.

THE TREASURER OF THE GSA IS THE COUNTY OF MERCED, AND THE COUNTY'S FISCAL PROCESS REQUIRES THAT THE BUDGET ALIGNS WITH THE EXPENDITURES IN EACH INDIVIDUAL ACCOUNT. AND SO THAT'S WHY THIS BUDGET AMENDMENT IS BEING PROPOSED TODAY.

YOU ON THE SCREEN HERE, YOU ONLY SEE THE OPERATING EXPENSES PORTION OF YOUR BUDGET, BECAUSE THAT'S THE ONLY SECTION THAT THE CHANGE IS PROPOSED IN.

I'M HAPPY TO ANSWER ANY QUESTIONS. SO IS THERE A A BALANCE IN IN THE CONTINGENCY.

CONTINGENCY GOES TO 0. THAT'S IT. THAT LITTLE DASH THERE IS ZERO.

OH I SEE. OKAY. THANK YOU. ANYBODY ELSE? NO. OKAY.

WHAT'S THE PLEASURE OF THE BOARD? I'LL MAKE THE MOTION TO APPROVE THE BUDGET AMENDMENT FOR ADMINISTRATIVE.

I'LL SECOND. OKAY, I HAVE A IS THERE ANY PUBLIC.

I DID PUBLIC COMMENT OR BEGIN THE MEETING. I HAVE A MOTION BY DIRECTOR GIAMPAOLI AND A SECOND BY DIRECTOR KELLY.

ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE. AYE.

ANY OPPOSED? MOTION CARRIES UNANIMOUSLY. THANK YOU.

ALL RIGHT. WE ARE TO. ITEM 9. OPT IN. CANCELLATION.

[9. OPT-IN CANCELLATION]

THE WATER USE ON THIS PARCEL IS ONLY FOR STOCK WATERING PRACTICES, AND HISTORICALLY IT HAS BEEN A DE MINIMIS AMOUNT OF LESS THAN TWO ACRE FEET PER YEAR.

IN THE PAST, STAFF HAS ALLOWED OTHER APPROVED OPT INS TO BE RESCINDED PRIOR TO PAYING THEIR BACK FEES.

HOWEVER, BECAUSE THIS CANCELLATION OF THE OPT IN HAS ALREADY PAID THEIR BACK FEES AND IT WOULD REQUIRE A REFUND OF FEES, LEGAL COUNSEL HAS RECOMMENDED BOARD ACTION TO APPROVE THIS CANCELLATION.

SO BASED ON THE FACTS THAT ONE. THE RULE, THE GROUNDWATER ALLOCATION RULE SPECIFICALLY ALLOWS FOR STOCK WATERING PRACTICES TO CONTINUE ON A GRAZING PARCEL WITHOUT AN OPT IN, AND 2, THE INTO THE SUSTAINABLE YIELD OF NATIVE GROUNDWATER ASSOCIATED WITH THE OPT IN ONLY BECAME AVAILABLE IN JANUARY AND HAS NOT BEEN USED.

THAT STAFF HAS RECOMMENDED CANCELING THE OPT IN AND REFUNDING THE BACK FEES FOR THIS REQUEST.

OKAY. HAPPY TO ANSWER ANY QUESTIONS. ANY QUESTIONS? GEORGE. OH. ALL RIGHT. IS THERE A MOTION TO APPROVE THE CANCELLATION? I'LL MOVE TO APPROVE THE CANCELLATION. I'LL SECOND THAT.

OKAY. I HAVE A MOTION BY DIRECTOR PARK, A SECOND BY DIRECTOR MARCHINI.

ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE. AYE.

ANY OPPOSED? SAME SIGN. MOTION CARRIES 6-0. ALL RIGHT.

[10. BOARD APPEAL OF RECOGNITION AND USE OF ALTERNATIVE SOURCE CREDITS GENERATED PRIOR TO JANUARY 2026 STAFF DENIAL]

APPEALING A STAFF DECISION REGARDING RECOGNIZING THE ALTERNATIVE SOURCE CREDITS GENERATED PRIOR TO JANUARY 21ST, 2026. THE GROUNDWATER ALLOCATION RULE INCLUDES SECTION 2.5.10, WHICH IS RECOGNITION AND USE OF ALTERNATIVE SOURCE CREDITS GENERATED PRIOR TO JANUARY 1ST, 2026, AND UNDER THE SECTION PARTIES THAT TOOK ACTION AFTER ADOPTION OF THE GSP IN JANUARY OF 2020 AND PRIOR TO JANUARY 1ST, 2026. TO USE AN ALTERNATIVE SOURCE FOR EITHER DIRECT RECHARGE OR DIRECT USE IN LIEU OF GROUNDWATER, WOULD BE ELIGIBLE TO RECEIVE AN ALTERNATIVE SOURCE CREDIT WITH SUBMISSION OF THE REQUIRED FORMS BY THE DEADLINE OF DECEMBER 15TH, 2025. SUBMISSIONS AFTER DECEMBER 15TH, 2025 HAVE NOT BEEN ACCEPTED AND CREDITS ARE NOT ISSUED AS THE DEADLINE IN THE RULE HAD PASSED.

DAVID FARMER RANCHES SUBMITTED AN APPEAL OF THE STAFF DENIAL DUE TO THE MISSED DEADLINE FOR THE RECOGNITION OF THESE CREDITS, FARMER RANCHES HAS PURCHASED OUT OF DISTRICT SURFACE WATER FROM MERCED IRRIGATION DISTRICT EVERY YEAR SINCE 2020, AND THEY WERE UNAWARE OF THE DECEMBER 15TH, 2025 DEADLINE FOR RECOGNIZING THE ALTERNATIVE SOURCE OF CREDIT.

[00:25:03]

AND SINCE RECOGNIZING THE USE OF AN INVESTMENT IN MERCED IRRIGATION DISTRICT OUT OF DISTRICT WATER WAS THE INTENTION BEHIND THE INCLUSION OF SECTION 2.5.10, STAFF IS RECOMMENDING THAT THE BOARD TAKE ACTION TO REVERSE THE DENIAL OF THE RECOGNITION AND USE OF ALTERNATIVE SOURCE CREDITS GENERATED PRIOR TO JANUARY 1ST, 2026, WHERE THE APPLICANT HAD ORIGINALLY FILED AFTER THE DEADLINE.

SO THE RECOMMENDATION IS TO ACCEPT THEIR FORMS AND ISSUE THE CREDITS.

ANY QUESTIONS? ALL RIGHT. BOARD WILL ENTERTAIN A MOTION.

SO MOVED. I'LL SECOND IT. I HAVE A MOTION BY DIRECTOR PARK.

A SECOND BY DIRECTOR GALLO. ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.

AYE. ANY OPPOSED? SAME SIGN. MOTION CARRIES 6-0.

ITEM 11. INACTIVE PARCEL. DELINEATION AND WELL.

[11. INACTIVE PARCEL DELINEATION AND WELL REGISTRATION DEADLINE EXTENSION]

THE MERCED SUBBASIN GSA RULES AND REGULATIONS INCLUDE TWO SECTIONS THAT HAD A DEADLINE OF JANUARY 31ST, 2026. 1 WAS FOR DESIGNATING PARCELS AND FIELDS AS INACTIVE UNDER SECTION 2.5.2.1.1, AND 1 WAS FOR REGISTERING A WELL AND SUBMITTING THE FLOW METER ATTESTATION UNDER SECTION 5.2.3.2.2 AS OF JANUARY 31ST.

351 PARTIAL DELINEATIONS EITHER INACTIVE IRRIGATED AGRICULTURAL LANDS OR NON PRODUCTION FIELD AREAS HAD BEEN SUBMITTED THROUGH THE GROUNDWATER ACCOUNTING PLATFORM AND 37 WELLS HAVE BEEN REGISTERED.

THE GSA HAS RECEIVED REQUESTS TO SUBMIT INACTIVE PARCEL DELINEATIONS AFTER THE JANUARY 31ST, 2026 DEADLINE. AND ADDITIONALLY, WHILE PARTIES WHO WISH TO MONITOR CONSUMPTION BY REPORTING MONTHLY FLOW METER USING THE ALTERNATIVE METHOD TO IN SECTION 2.5.2.3.2, WHILE THEY MAY HAVE ALREADY REGISTERED THEIR WELLS.

THERE ARE MANY OUTSTANDING WELLS THAT ARE REQUIRED TO MONITOR CONSUMPTION OF NON FIELD PRODUCTION AREAS LIKE DAIRIES OR POULTRY FACILITIES USING MONTHLY FLOW METER DATA REPORTING, AND THOSE HAVE NOT BEEN REGISTERED BY THE DEADLINE.

SO AGAIN, SINCE THIS IS THE INITIAL YEAR OF THE GROUNDWATER ALLOCATION RULE, IT'S EXPECTED THAT NOT ALL THE GROWERS WITHIN THE BASIN ARE AWARE OF THE RULES AND HOW THEY APPLY TO THEM AND THE DEADLINES ASSOCIATED WITH IT.

AND BECAUSE THE IRRIGATION SEASON HAS NOT YET STARTED, AND IT'S UNLIKELY THAT AN EXTENSION AN ADDITIONAL MONTH TO EITHER REGISTER A WELL OR DELINEATE AN INACTIVE PARCEL WOULD IMPACT THE ACCOUNTING OF CONSUMPTION.

STAFF IS RECOMMENDING THAT THE BOARD EXTEND THE DEADLINE FOR SUBMITTING INACTIVE PARCEL DELINEATIONS, AND FOR WELL REGISTRATION AND FLOW METER ATTESTATIONS TO JANUARY 28TH, 2026.

AND I WOULD JUST MAKE A NOTE THAT WITH THIS EXTENSION, STAFF WOULD ALSO REACH OUT TO THOSE NON-FIELD PRODUCTION AREAS THAT WE ARE AWARE OF WHO HAVEN'T REGISTERED, AND LET THEM KNOW THAT THEY DO NEED TO HAVE A WELL TO REPORT THEIR GROUNDWATER USE IN THOSE AREAS DURING THIS MONTH.

SO THROUGH THE PLANNING DEPARTMENT, DO YOU HAVE ACCESS TO ALL THOSE NAMES AND ADDRESSES? THROUGH THE THROUGH THE PLANNING DEPARTMENT, WE DO KNOW WHERE THE WHERE THE DAIRIES ARE AND THOSE THINGS ALSO I BELIEVE ADRIEL RAMIREZ WITH ZANJERO HAS ALSO LOOKED AT SOME OF THE NON-FIELD PRODUCTION AREAS AS WELL.

AND SO WE WE HAVE A GENERAL UNDERSTANDING. SOME OF OUR PARCEL DELINEATIONS THAT HAVE BEEN SUBMITTED WERE SUBMITTED FOR NON-FIELD PRODUCTION AREAS, BUT A LOT OF THOSE DO NOT HAVE A WELL ASSOCIATED WITH REPORTING THE GROUNDWATER USE OF THAT NON-FIELD PRODUCTION AREA.

OKAY. ANY OTHER QUESTIONS? DID YOU HAVE A QUESTION, BOB? NO, NO. OKAY. SINCE THIS ONE'S A LITTLE DIFFERENT, I'M GOING TO OPEN UP FOR AGAIN FOR PUBLIC COMMENT.

OKAY. SEEING NONE, WE'LL BRING IT BACK TO THE DAIS.

WHAT'S THE PLEASURE OF THE BOARD? I'LL MAKE A MOTION TO APPROVE THE EXTENSION OF THE DEADLINE TO FOR INACTIVE AND WELL REGISTRATION TO FEBRUARY 28TH, 2026. I'LL SECOND.

ALL RIGHT. SO I HAVE A MOTION BY DIRECTOR KELLY A SECOND BY DIRECTOR GIAMPAOLI.

ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE. AYE.

ANY OPPOSED? MOTION CARRIES 6-0. ALL RIGHT. THAT BRINGS US TO ITEM 12.

[12. STAFF REPORT]

[00:30:03]

WE PROVIDED ONE ON ONE PLATFORM ASSISTANCE TO GROWERS.

WE HAD ABOUT 40 PEOPLE IN ATTENDANCE, AND WE WERE ABLE TO ANSWER A LOT OF QUESTIONS AND MAKE REQUESTED CHANGES TO GROUNDWATER ACCOUNTING PLATFORM ACCOUNTS.

AND SO I THINK IT WAS REALLY HELPFUL TO HAVE THAT 1 ON1 TIME.

SECOND ITEM IS USAGE STATEMENTS. WE DID A MAILING OF 2025 USAGE STATEMENTS ON LATE LAST WEEK ON FRIDAY OF LAST WEEK. SO OVER THE LAST COUPLE DAYS AND THIS WEEK, ALL THE GROWERS IN THE BASIN SHOULD BE RECEIVING THEIR 2025 USAGE STATEMENTS.

THAT'S APPROXIMATELY 800 WATER ACCOUNTS WILL RECEIVE A USAGE STATEMENT IN THE MAIL.

IT DETAILS THEIR ACTUAL 2025 WATER USE AS COMPARED TO THE EXAMPLE ALLOCATION.

AND SO IT'S ACTUAL WATER USE. LOOKING AT WHAT THE 2026 ALLOCATION WOULD HAVE BEEN IN 2025.

THE USAGE STATEMENTS DO INCLUDE THE PIN NUMBERS FOR THOSE WHO HAVE NOT YET CLAIMED THEIR WATER ACCOUNT, AND THEY GIVE A BRIEF SUMMARY OF THE GROUNDWATER ALLOCATION RULE.

AND SO HOPEFULLY THAT'LL BE BOTH A PROMPT TO ENCOURAGE FOLKS TO CLAIM THEIR WATER ACCOUNT ON THE PLATFORM, AND TO ALSO JUST GET A BETTER UNDERSTANDING OF THEIR WATER USAGE IN THE YEAR OVER THE YEAR 2025.

THIS BOARD HAS WANTED TO PROVIDE THESE PARCEL BASED WATER BUDGETS SINCE 2022, WHEN YOU STARTED TALKING ABOUT THAT.

AND SO THROUGH THE GROUNDWATER ACCOUNTING PLATFORM, WE'RE ABLE TO DO THAT. AND THIS IS OUR 1ST USAGE STATEMENT THAT WE'VE SENT.

THE LAST THING I WANT TO MENTION IS THE WELL FLOW METER REPORTING.

AND SO FOR THOSE GROWERS WHO HAVE REGISTERED THEIR WELLS ON THE GROUNDWATER ACCOUNTING PLATFORM, THE FIRST OF THE MONTHLY REPORTING IS DUE FEBRUARY 15TH.

THE GSA HAS EMAILED EVERYONE WHO HAS REGISTERED A WELL WITH AN EXCEL FORM THAT WE HAVE CREATED TO REPORT THE MONTHLY FLOW METER READING.

THE GROUNDWATER ACCOUNTING PLATFORM RIGHT NOW IS NOT YET ABLE TO ACCOMMODATE THE USER ENTRY OF THOSE READINGS, BUT THE GSA WILL INPUT THE READINGS FROM OUR SIDE.

AND SO WE'VE PROVIDED THEM THE EXCEL DOCUMENT THAT THEY WILL FILL OUT.

AND THEN WE WILL DO A BULK UPLOAD TO UPLOAD THAT DATA INTO THE GROUNDWATER ACCOUNTING PLATFORM.

THEY'LL DO THAT MONTHLY AND THEY'LL PROVIDE A PHOTOS OF THEIR METER READING AS WELL.

AND SO THOSE HAVE BEEN EMAILED OUT TO EVERYONE WHO REGISTERED AS WELL.

AND THAT'S ALL I HAVE. THANK YOU, THANK YOU THANK YOU.

WE'LL MOVE ON TO ITEM 13 BOARD REPORTS. ANYBODY? NOPE. OKAY. ALL RIGHT THEN OUR NEXT MEETING WILL BE HELD ON MARCH 12TH, 2026 AT 2 P.M.

[14. FUTURE MEETINGS]

ADJOURNMENT. THANK YOU ALL FOR COMING TODAY. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.