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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 9:19 AM on December 11, 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, Bob Beal, Hydro Engineer, and the visitors shown on Exhibit “A”.   

 

1.         OPEN FORUM  

  • Bill Dolf, a Bend resident, asked Steve Johnson for an update on the signage that is to be installed on the canal roads in that area informing the public that those roads are not for public access.  Steve Johnson showed him the sign that will be mounted in the next week or so on the Central Oregon Canal ditch road between Ferguson Road and 27th Street in Bend.  It was noted that Bend Parks and Recreation Department will be paying for one-half of the sign installation cost.

 

2.         MINUTES:  

Bob Borlen noted two spelling errors within the minutes of the November meeting that need correction.  He then made a motion to approve the minutes as corrected.   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”. 

PBC Permanent:                                            Total               0

 

PBC Confiscation Transfer:                          Total               1.00

Jennifer Root                                                                            1.00  Off

COID                                                                                      1.00  On

 

COC Permanent:                                           Total               3.10

Schinkel Family Revocable Living Trust                         1.60  Off

Schinkel Family Revocable Living Trust                         1.60  On

 

Margot Barron Revocable Trust                                                1.50  Off

Margot Barron Revocable Trust                                                1.50  On

 

COC Confiscation Transfer  :                       Total               1.23

Craig & Cristy Christiansen Revocable Trust                 1.23  Off

Charles W. Brewer                                                                   1.23  On

 

Carroll Penhollow made the motion to approve the transfers and confiscations as reported.  The motion was seconded by Bob Borlen and was then passed unanimously.  

 

Carroll Penhollow reviewed the water rights that were quitclaimed to COID during the month.  Steve Johnson reviewed the water right reserves currently held by COID. See Exhibit “C”.  He noted that 117 acres were allocated to the Central Oregon Water Bank in November and that the funds for those acres should be received by the end of December.  Forty acres were sold to Pahlisch Development Co. during November with those funds available to cover capital costs through the end of the year.  COID has now met the Water Bank targets for both 2007 and 2006.  The 2008 targets will be discussed in January meetings which will include representatives from the Cities of Bend and Redmond.  It was confirmed that the water purchasers will pay exit fees on this water that will go into the Endowment Fund.

 

4.         REPORTS:

            A.        Water Report –

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

B.         Operations and Maintenance Report –

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

C.        Hydro Report –

A written report (Exhibit “F”) was mailed to the Board prior to the meeting.  After discussing the work that Bob Beal has done trying to verify the transformer loss that Pacificorp calculated, it was agreed that Bob will ask Pacificorp for a copy of their calculations detailing how the number was derived.  John Robbins asked if there was a guarantee on the “AquaLastic” product that was proposed to cover the crack joints of the lining.  Bob Beal said that he did have a question as to whether the product would work as well on gunite as it does on concrete.  After discussion regarding the viability of testing the product on a segment of the area needing treatment, the Board expressed consensus that the entire project should be done at the estimated cost of $17,350 if management determines that testing is not feasible or cost effective.

 

The meeting recessed at 10:35 AM for refreshments.  The meeting reconvened at 10:50 AM.

 

            D.        Manager Report –

The written Manager’s Report (Exhibit “G”) was mailed to the Board prior to the meeting.   Steve Johnson distributed a copy of a letter from Oregon Senators Smith and Wyden and Congressman Walden to the Office of Management and Budget that requested an increase of $1.5 million in the Bureau of Reclamation’s Deschutes Project Oregon line-item in the President’s FY 09 budget.  (Exhibit “H”)

The Lease Agreement with GCC was reviewed.  (Exhibit “I”)  Steve Johnson stated that the lease included a one time fee of $5,000 to cover administrative and legal costs and that John Gross, of GCC, had asked him to inform the Board that he thought the fee was excessive.  After Steve stated that he thought the fee was acceptable, a motion was made by John Robbins to accept the new lease agreement and to give Steve Johnson authority to sign the agreement.  The motion was seconded by Tom Burke and then unanimously passed.

The lease on the power facility operated by Pacificorp at Cline Falls expires in March 2013.  Steve Johnson noted that Pacificorp stopped operating the facility in 2006 and that COID owns the land and water rights where the facility is located.  There appear to be no legal hurdles regarding the licensing process on this facility.  COID will file a formal application for FERC jurisdictional review before the end of December.  It was noted that if the waterway is deemed to not be navigable, FERC does not have jurisdiction.  Estimated revenue from this facility would be approximately $150,000 to $180,000, however, costs required to bring this facility to effective and efficient operational status are currently unknown.

 

5.         BILLINGS & PAYROLL: 

Paul Kasberger moved to accept the payroll registers and billings as presented. The motion was seconded by John Robbins and passed unanimously.

 

6.         OLD BUSINESS: 

  • Resolution 2007-15 Signatures

The resolution was distributed for signatures.

 

7.         NEW BUSINESS

  • Resolution 2007 – 16: Development Irrigation Plan Fee  (Exhibit “J”)

Carroll Penhollow read the resolution summary.  A motion was made by Bob Borlen to waive the reading of the resolution as drafted.  The motion was seconded by Tom Burke and was unanimously passed.  Bob Borlen then made a second motion to accept Resolution 2007 – 16 regarding the Development Irrigation Plan Fee.  John Robbins seconded that motion.  The motion passed by a unanimous vote.

  • Resolution 2007 – 17: Groundwater Patron Policy (Exhibit “K”)

Carroll Penhollow read the resolution background.  Bob Borlen made a motion to waive the reading of the resolution as drafted.  The motion was seconded by Tom Burke.  After Steve Johnson stated that he wanted to amend the remedies detailed in the resolution, Bob Borlen withdrew the motion.  The remedy needs to be changed to include the base charge in the annual evaluation.  Bob Borlen made a motion to waive the reading of the resolution as drafted and amended.  The motion was seconded by Tom Burke and was then unanimously passed.  Bob Borlen then made a motion to accept Resolution 2007 – 17 regarding Groundwater Patron Policy.  Tom Burke seconded the motion that was then passed by a unanimous vote.

The amended resolution will be presented at the January board meeting for signature.

  • Patron Matters

Larry Roofener updated the Board regarding an easement reduction request for property located at 2662 SW 27th St. in Redmond that was submitted by Larry Wilson of Bend.  (Exhibit “L”).  Following discussion about existing COID easements in that area and District policy addressing easement reductions, the Board determined that this issue needed to be returned to staff for review.  A staff report will be presented at the January meeting.

  • Division 3 Board Position

There was no petition filed for the Board Member position from Division 3 (Bend) with a term starting January 1, 2008.  Therefore the Board will need to appoint someone to fill that vacancy at the January Board meeting.  John Robbins, current Board member from that Division, informed the Board that he would be willing to serve at the discretion of the Board if appointed.

 

 

 

The meeting was recessed for lunch at 12:30 PM.   Carroll Penhollow reconvened the meeting at 1:30 PM.

  • 2008 Budget (Exhibit “M”)

Priscilla Ross distributed schedules detailing actual operating results through October 31, 2007, COID cash balances at November 30, 2007 and the proposed 2008 Operating, Capital and SPP budgets.  Steve Johnson reviewed the schedules with the Board. 

 

A motion was made by John Robbins and seconded by Tom Burke to adjourn the Regular Session at 3:00 PM.  The motion was unanimously accepted.

 

 

ATTEST:                     CENTRAL OREGON IRRIGATION DISTRICT

 

 

_________________________________         ________________________________

Steven C. Johnson, Manager                               Carroll Penhollow, President

 

 

_________________________________         _________________________________

Robert Borlen                                                      Thomas Burke          

 

 

_________________________________         _________________________________

Paul Kasberger                                                    John Robbins (no longer on Board effective 12/31/2007)