Home Featured Stories What is the Irrigation District Trying to Hide?

What is the Irrigation District Trying to Hide?

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What is the Irrigation District Trying to Hide?
Jimi Netniss, Modesto Irrigation District General Manager

Last year, the Modesto Irrigation District (MID) hired 4Creeks Engineering to conduct an investigation into Director Larry’s Byrd’s irrigation practices on the AB La Grange Ranch in southeastern Stanislaus County. December 16, the MID Board of Directors reviewed the investigation, and then voted against continuing. The decisive vote was by Byrd himself, in a clear conflict of interest. Directors Robert Frobose and Chris Ott voted for further investigation.

Byrd’s vote is being investigated by the Fair Political Practices Commission (FPPC). The Stanislaus County District Attorney is investigating Byrd’s alleged misappropriation of MID surface water.

Newcomers to the Byrd investigation may need to know that Larry Byrd’s irrigation practices became a matter of public interest when a former ranch resident alleged Byrd irrigated out-of-district last July 8. That claim was subsequently supported by two former employees, one of whom, Todd Sill, came forward publicly.

Like many top ranch managers, Todd Sill keeps journals. He kept meticulous records while working for Larry Byrd on the AB La Grange Ranch, where he had worked for almost two decades prior to working for Byrd.

When summarizing the methodology for the investigation, 4Creeks produced the following:

“….extensive investigative efforts were undertaken to obtain firsthand operational knowledge and validate assumptions regarding the study unit. Multiple interviews were conducted with key personnel possessing direct insight into the farming and water-management activities, including former and current employees of the farming operation, former and current MID staff, and the property owners. The information provided from individual interviews collectively offered critical context on historical and current operational practices.

AB La Grange Ranch sign
AB La Grange Ranch iron frame by Todd Sill

No transcripts or summaries of interviews were provided in the 4Creeks’ published report. In addition to Sill’s and his coworker’s testimony, knowledgeable observers would have expected reports from the ditchtenders who monitored surface water usage on Byrd’s properties. Those interviews might have explained why there were discrepancies between the ditchtenders’ reports and power usage records for the same water years and irrigation events as reported by 4Creeks.

Moreover, 4Creeks’ investigation showed that, in 2022, when the MID allotment was 30 inches, Byrd pumped 40.37 inches. During last year’s December 16 MID Board meeting, Larry Byrd said that his “Master Water Plan” (or Account) would explain the apparent excess use.

However, after MID produced the Master Account records for 2022, the reports showed that Byrd had been billed for two acre-feet of MID surface water on eight different accounts that irrigated pasture and/or almonds.

Any successful farmer knows neither almonds nor pasture will produce on two acre-feet of water over a year’s time. In fact, the 4Creeks’ investigation verified, with granular specificity, that, in years of normal rainfall, almond orchards in the exact location of the AB La Grange Ranch require three-and-a-half acre-feet of water. 4Creeks also determined Byrd could not have used groundwater for the out-of-district almond trees on the AB La Grange Ranch, as he had previously claimed.

Transcripts of interviews from the 4Creeks’ investigation are clearly of interest and value to MID ratepayers and farmers, many of whom remain frustrated that Larry Byrd was able to end the investigation by voting in his own interest. In fact, according to FPPC guidelines, Byrd should not even have been present while the vote was discussed by other Boardmembers.

One of MID General Counsel Frank Splendorio’s areas of expertise is conflicts of interest. Why didn’t Splendorio point out Byrd’s clear conflict of interest last December 16?

Frank Splendoria General Counsel for Modesto Irrigation District
Frank Splendorio, General Counsel for Modesto Irrigation District

When I requested transcripts of the 4Creeks’ interviews, I received equivocal responses from Splendorio. When I asked to know who signed off on Byrd’s Master Water Account, I received more equivocal responses. Thus far, MID has not produced the interviews nor any record of who approved of Byrd’s irrigation reports.

Four Creeks determined that Byrd pumped almost three-and-a-half acre-feet onto the AB La Grange Ranch in 2022. According to MID’s own records, he was billed for two acre-feet. The discrepancy amounts to a loss of revenue and a cost that is ultimately borne by MID ratepayers and farmers in a clear abuse of the public trust. Seven other properties were also underbilled.

MID management has been aware of allegations concerning Larry Byrd’s misappropriation of MID surface water for well over a year. MID is a public utility. MID management and Counsel work for MID ratepayers and farmers.

MID General Manager Jimi Netniss and Counsel Frank Splendorio both have a fiduciary duty to conserve and utilize MID resources fairly and efficiently for the benefit of MID ratepayers and farmers. Netniss, who worked in finance prior to becoming General Manager, supposedly has extensive experience with rates and budgets. Why would he not have discovered discrepancies between Byrd’s reported usage and billing months ago? Did he even look?

Jimi Netniss General Manager for Modest Irrigation District
Jimi Netniss, Modesto Irrigation District General Manager

Despite conclusive evidence that Byrd could not have irrigated his out-of-district trees with groundwater, 4Creeks reported the investigation was “inconclusive.”

The report did not note that Byrd went over his allotment in 2022, and did not report discrepancies between ditchtenders’ reports and power records. However, Management and Counsel should have noted those items immediately upon reading the report. To date, MID has refused to explain why Larry Byrd was billed for far less water than he used in 2022 and, most likely, in many other years.

Thus far, after over a year, MID Management and Counsel continue to fail to produce records and testimony that could clarify the record regarding Director Larry Byrd’s alleged (mis)use of MID surface water on the AB La Grange Ranch, including egregious underbilling, prohibited use of MID surface water outside of MID boundaries, and wide discrepancies between ditchtender reports and power records. They have failed to provide the interviews 4Creeks said provided “firsthand operational knowledge” and “critical context on historical and current operational practices.

Absent counter-evidence, MID ratepayers and farmers have the right to know how much income the district has lost due to incompetent management and accounting. They also have a right to just compensation for their losses.

 

 

 

 

13 COMMENTS

  1. Its simple – GM Netniss sends Byrd a bill for the amount of water that the records show he used (stole) but did not pay for. In 2022 40.37 inches used and he paid for 24 inches @ $200.00 per acre-foot that totals to about $90,000 and Netniss does the same math for the other 9 years. It’s called fulfilling MID’s fiduciary responsibility to the ratepayers.

    • Agreed… but that’s not going to happen. GM Netniss is not a fiduciary responsibility guy, he’s not a water steward guy, not a protect the rate payer guy, he’s a protect my salary and pad my retirement guy. If Byrd appointed him, he’s not going to bite the hand that feeds. The guy can’t even speak to water topics, we thought Schwandt was inept.

  2. You are absolutely correct in your observations and concerns Eric. And that malfeasance in leadership of a public utility is what a Civil Grand Jury (CGJ) is empowered to investigate and report out on. The obfuscation and avoidance of oversight of resources, billing and compliance is plain to see. This flawed legal guidance regarding conflicts of interest and transparency are obvious to lawyers and non-lawyers, alike. It appears to me that our CGJ is ill-advised by the District Attorneys office.

  3. It has always been considered wrong to steal water or electricity from MID and really it is stealing from your neighbors not MID. Why is this Byrd case any different from a legal or moral standpoint? The facts prove out that he stole water. How much needs a closer evaluation?

    • Breanna, as Eric Caine has demonstrated, there is more to this entire affair than Larry Byrd clearly stole water. There is an organization that failed the ratepayers. There should be internal controls within the system to observe and detect non-compliance, just like on the electricity side. From the ditch tender, to the discrepancies year over year, a review of the master water plan, the response to a whistleblower, the retention of 4Creeks who was inadequate to complete a forensic audit and draw conclusions, an attorney who could not apply basic conflict of interest standards to a board vote, and the delayed production of requested documents. This first came to light 14 months ago and the District management still cannot fully account for or quantify the volumes of water. The CGJ needs to explore the failing of management and legal, much like they did with StanCOG. As you say, Byrd clearly stole water and there should have been a District managed response 6 -12 months ago.

  4. The ratepayers can file a lawsuit against MID and Byrd to recover ratepayers loses. The first step is filing a claim against MID. The water code also allows for up to $2500.00 an acre foot for damages for water that was illegally diverted or used unauthorized especially in drought conditions when other rightful users were required to cut back on their water use.

    • It’s already been determined Byrd did not use well water. Todd Sill and a coworker can confirm that determination. Where are the interviews?

    • Yeah – NO. Soil chemistry doesn’t work that way. Now if you had a water sample when it was happening, YES. As Vance Kennedy used to say – check the Tritium levels!

  5. Great work, Eric. Shine the light brother. What’s that old saying: right is still right even if nobody is doing it, and wrong is still wrong even if everyone is doing it. It does feel we are getting thicker into an era of more and more open corruption, where people can skim, cheat, bully, lie and scheme — and then simply say they aren’t. Sad.

    We are lucky to have people like you doing the good work.

    • Thank you JT. Yes, right is right and wrong is wrong. In the end, community standards are determined by the values we are willing to defend and uphold. We need to appreciate and support our public servants and reject graft and corruption. Always good to hear from you JT.

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