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The regular meeting of the Board of Directors of the Central Oregon Irrigation District (COID) was called to order by President Carroll Penhollow at 9:07 AM on

October 9, 2007 in the District office.

 

Directors present were Carroll Penhollow, Paul Kasberger, Tom Burke, John Robbins and Robert Borlen.  Also attending were Steve Johnson, Secretary-Manager; Liz Dickson, Attorney; Priscilla Ross, Assistant Secretary, Larry Roofener, Operations Manager, Cary Penhollow, Watermaster and the visitors shown on Exhibit “A”.  

 

1.         OPEN FORUM  

  • Steve Younger, a Bend resident living in the Ferguson Road area, stated that he was representing Bill Dolf, another resident of that area.  According to Mr. Younger, Mr. Dolf had been in contact with Don Horton, Executive Director of Bend Parks and Recreation District, and Mr. Horton had told Mr. Dolf that the Parks District was willing to install gates limiting both pedestrian and motorized traffic but that after meeting with Steve Johnson, Bend Parks was no longer going to install the gates.

Steve Johnson responded that he had met with Don Horton and reviewed the letter that was sent last month, see September minutes for a copy of the letter, and that the Parks and Recreation District was amenable to installing three gates, though nothing was said about the gates being pedestrian proof.  It was noted that any gate installation would have to conform to COID’s gate policy and that currently powder river gates are the standard.  Steve Johnson stated that he also talked to Mr. Horton about installing signs on or near the gates that inform the public that the land beyond the gate is private property.  Bend Parks and Recreation District would pay for the gates and their installation.

There was Board consensus supporting the installation of the three gates as long as the Parks and Recreation District purchased and installed gates that conformed to Board policy.  Steve Johnson will contact Don Horton to inform him of the Board’s decision.

 

  • Kathy Fetz, a Bend resident living in the Ferguson Road area, stated that she had not yet received a gate application.  Larry Roofener responded that he would have Jenny Hartzell-Hill contact her.

 

2.         MINUTES:  

Robert Borlen made a motion to approve the minutes as submitted.   Following a second by John Robbins, the motion passed unanimously.

 

3.         TRANSFERS / INCLUSIONS:       

Carroll Penhollow reviewed the following transfers with the Board.  See Exhibit “B”.  He noted that the small reported transfers are movements of water on the same property to ensure that the rights are correctly mapped.

PBC Permanent:                                            Total                  .26

Wallace                                                                                       .26 Off

Wallace                                                                                       .26 On

 

COC Permanent:                                           Total               2.75

Waits                                                                                         .15  Off

Waits                                                                                         .15  On

 

Bovee                                                                                      2.60  Off

Powell Butte Farmers Club                                                       2.60  On

 

Carroll Penhollow made the motion to approve the transfers as reported.  The motion was seconded by John Robbins and was then passed unanimously.  

 

Steve Johnson reviewed the first allocation to the Central Oregon Water Bank (COW Bank) (Exhibit “C”) and noted that COID had allocated 60.12 acres that were above the reserve requirement.  Currently there are four approved water buyers: the Cities of Bend and Redmond, the Deschutes River Conservancy and Avion Water.  He noted that the water purchase price includes transaction costs.  As current available reserves are in excess of 309 acres and the Board had authorized a total of 215 acres to be allocated to the COW Bank, a second allocation will be made before the end of the year. 

 

With increasing urbanization and the requirements that developers agree to move the water rights on that land to the COW Bank, there is increased pressure to have a more formal intergovernmental agreement documenting each participating entity’s responsibility in regards to the COW Bank.  This agreement will be presented to the COID Board for review when completed.  COID verifies that the water rights deposited in the COW Bank are “clean”, that the water has been beneficially used according to statute.  The DRC processes the mitigation credits and instreams.  Steve Johnson noted that the OWRD is getting much stricter about verifying that a water right has beneficial use before they will approve any transfers.  COID is in the process of confiscating water rights that have not been used according to statute.  The Board reviewed a memorandum (Exhibit “D”) detailing water rights that COID intends to confiscate due to non-use.  Cary Penhollow reported that there are now 4.2 less acres on the COC to be confiscated as the Roberts and COID staff met and agreed to a plan to utilize those acres. 

 

It was noted that this confiscated water must be “proved up” in order to maintain the water right.  There was discussion around how COID might best and most efficiently accomplish that water preservation.   One option is to lease these water rights to patrons.  COID staff has drafted a Lease Agreement for this purpose that legal counsel will review.

 

4.         REPORTS:

            A.        Water Report –

A written report (Exhibit “E”) was mailed to the Board prior to the meeting.   

B.         Operations and Maintenance Report –

A written report (Exhibit “F”) was distributed to the Board at the meeting.    

It was noted that in January 2007 the Board decided to evaluate funding for the Small Grant Program in October 2007.  As capital funds are currently limited, there was consensus among the Board that the program would be reevaluated when funding is available.

C.        Hydro Report –

A written report (Exhibit “G”) was mailed to the Board prior to the meeting.  Steve Johnson distributed an email that Bob Beal had sent him regarding a Pacific Power Transformer Lass adjustment.  (Exhibit “H”)  This adjustment will cost about $12,000 for the past three years and will be made monthly on a go forward basis.

            D.        Finance Report –

A written report (Exhibit “I”) was mailed to the Board prior to the meeting. 

E.         Manager Report –

The written Manager’s Report (Exhibit “J”) was mailed to the Board prior to the meeting.   A schedule detailing DBBC’s next steps and action items regarding fish reintroduction was distributed (Exhibit “K”).  Steve Johnson noted that there is a different perspective among the different parties involved resulting in some tension regarding the scope of the Habitat Conservation Plan (HCP) that must be prepared. 

 

The meeting was adjourned for lunch at 11:45 A.M. and reconvened at 12:35 P.M.

Paul Kasberger left the meeting at 11:45 A.M.

 

5.         BILLINGS & PAYROLL: 

Bob Borlen moved to accept the payroll registers and billings as presented. The motion was seconded by Tom Burke and passed unanimously.

 

6.         OLD BUSINESS: 

  • Real Estate Matters – Redmond East 250 acre parcel

Liz Dickson reported that Deschutes County owns 215 acres within the Redmond UGB adjacent to the COID owned property.  The City of Redmond wants to purchase this property but will not buy it until the rezoning process is completed.  The County asked to “piggy back” on the rezoning application with COID.  Liz noted that this relationship could create a political advantage for COID.  There are also potential disadvantages particularly in regards to access points that COID would like in a specific location but that the City might locate in an area more convenient for the airport. 

Steve Johnson stated that Steve Scott had identified “B” bucket properties that could be moved to the “A” bucket.  There are two properties, the Sheridan and Teal Road properties that would benefit from a partitioning process prior to sale.  It was noted that it costs approximately $16,000 and takes about six months to partition each property.  Steve Johnson recommended to the Board that they proceed with one parcel first and then do the other in early 2008.  A motion was made by Bob Borlen to proceed forward with the partitioning process and obtain a conditional use permit on one (1) of the two (2)  parcels.  The motion was seconded by Tom Burke and was then unanimously passed.

The quiet title process on the Deschutes Market Road property is still in progress and expected to take another 90 to 120 days.  There was discussion as to the appropriate timing to market this property.

 

Tom Burke left the meeting at 1:10 P.M.

 

  • Elections for Division 3

As of meeting time, there had not been any petitions submitted for the Board seat to represent Division 3 that expires on December 31, 2007.  It was noted that if John Robbins chooses not to continue serving on the Board, he will have to officially resign and that the Board will then appoint someone to fill that vacancy.  As of meeting time there has only been one petition submitted for Division 2.

 

7.         NEW BUSINESS:

  • Hydromet with Bureau of Reclamation Agreement

Steve Johnson reported that the Bureau can no longer fund 100% of the hydromet cost.  That cost will be allocated to different irrigation districts according to the number of hydromets within the specific district.  It is estimated that the gross cost to COID will be approximately $2,100 and that a portion of this cost will be allocated to Arnold and Lone Pine Irrigation Districts.

Carroll Penhollow made a motion to allow Steve Johnson to sign the Bureau of Reclamation Agreement regarding hydromet cost allocation.  The motion was seconded by John Robbins and was then unanimously passed.

 

  • ORS 197 – Local Government Coordination

Liz Dickson reported that Bend’s UGB expansion has brought various agreements between cities and counties and irrigation districts into an area of concern.  The City of Bend has not been very cooperative in working with other local government agencies.  There are supposed to be Section 195 agreements in place with these entities and the City must consult with those entities on planning as part of that agreement.  She noted that other local governments are forming groups to try to get specific results out of the planning process.  COID’s position is to follow statute and proscribed rules and procedures and is therefore not getting involved with any of these small groups.  The Board expressed consensus with this approach.

 

  • District Strategy and Priorities Discussion

Steve Johnson distributed a memorandum listing both challenges and opportunities that he sees for COID (Exhibit “L”).  He said that we will contact each Board member individually to schedule a two hour session to review the document and discuss each Board members’ priorities.

 

A motion was made by John Robbins and seconded by Bob Borlen to adjourn the Regular Session at 2:15 P.M..  The motion was unanimously passed.

 

 

ATTEST:                     CENTRAL OREGON IRRIGATION DISTRICT

 

 

 

_________________________________         ________________________________

Steven C. Johnson, Manager                               Carroll Penhollow, President

 

_________________________________         _________________________________

Robert Borlen                                                      Thomas Burke          

 

_________________________________         _________________________________

Paul Kasberger                                        John Robbins