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 The regular meeting of the Board of Directors of the Central Oregon Irrigation District (COID) was called to order by Vice-President Paul Kasberger at 9:06 AM on February 12, 2008 in the District office.

 

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

 

1.         OPEN FORUM  

  • Lisa Klemp, representative for Leona Johnson who is a COID patron, informed the Board that Ms. Johnson has an application submitted with the County to partition some of her property along Horsell Road into three (3) parcels.  The County insists on a ten (10) foot dedication of land adjacent to the road.  Ms. Klemp asked for clarification regarding COID’s position on responsibility for irrigating those ten (10) feet.  Steve Johnson responded that as owner of that land the County will be held accountable for beneficially using the water rights appurtenant to that land.  Cary Penhollow stated that it was COID’s understanding that the County will provide Ms. Johnson the rights to irrigate that property and to manage the water accordingly.  Ms. Klemp asked COID to provide Ms. Johnson written documentation stating the District’s position prior to March 4th.  Steve Johnson concurred with that request.  He also stated that it would be beneficial for Ms. Johnson to obtain a statement from the County describing their plans for Horsell Road.
  • Tim Vezie of KDV LLC distributed a memorandum (Exhibit “B”) describing a dispute with COID regarding work on Forked Horn Butte, a Redmond development.  Larry Roofener had also submitted a memorandum describing COID personnel’s interpretation of this misunderstanding (Exhibit “C”).  There was agreement that if the understanding had been documented, this misunderstanding would have been avoided.    Following discussion, Robert Borlen stated that the Board needed more time to research and discuss alternative solutions to KDV’s requests.
  • Kathy Fetz, a Bend resident living in the Ferguson Road area, thanked both the District for installing signage along the canal and Steve Johnson for attending their neighborhood mediation meeting.  She stated that there have been additional harassments against Bill Dolf since that meeting and wants to get a gate installed.  Steve Johnson responded that COID has a limited responsibility for gate installation in this area as there is little vehicle traffic and minimal canal maintenance.  He reiterated that any gates, if approved by the District, must not impede District operations and adhere to District policy.  It was again emphasized that easement access is a land owner, not a District, issue.

 

Further Board discussion ensued regarding the KDV LLC dispute.  KDV is asking COID to assume responsibility for bringing power to the motor and for the cost of running the motor.  Tom Burke will meet with Larry Roofener and Cary Penhollow to assess the situation further and develop cost estimates of various options.  It was noted that COID personnel are currently documenting agreements and decisions reached and sending that documentation to involved parties to confirm understanding. 

 

President Carroll Penhollow arrived at the meeting at 10:00 AM.

 

  • Carroll Penhollow reported that Ruth Hylton, a COID patron, has contacted him regarding the Brown’s First Addition Homeowners’ Association.  She wants to disband the association to reduce the account fee.  Steve Johnson stated that the District allowed them to combine their accounts to obtain one account fee years ago.  He said that he has talked to Ruth and told her that this “disbanding” can’t be done.  He also informed her that COID is only going to give her water according to her duty right this year.  Steve Johnson is currently drafting a letter to four property owners in this area informing them that their deliveries this year will be based on their water right only.  These same patrons received a letter last year regarding this situation.  It was noted that this property is within the City limits and is subject to the provisions of the Remnant Parcel policy recently adopted by the Board.

 

2.         MINUTES: 

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

 

3.         TRANSFERS / INCLUSIONS:       

Carroll Penhollow reviewed the following transfers with the Board.  See Exhibit “D”.  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               -0-

 

COC Permanent:                                           Total               5.17

Meyer                                                                                        .72  Off

Meyer                                                                                        .72  On

 

Ashcraft                                                                                   1.00  Off

Ashcraft                                                                                   1.00  On

 

Crouch                                                                                     3.45  Off

Crouch                                                                                     3.45  On

 

Steve Johnson noted that there are currently 185.585 acres of water readily available in reserves with another 13.45 acres pending final order.

 

Leslie Clark joined the meeting and explained that an Inclusion Petition has been filed for Lisa Cook-Rosa to add 4.8 acres of land mass to the District so that she can obtain water for the property.  It was noted that if this request is deemed to be viable, an Inclusion Order will be presented at a subsequent Board meeting for approval.

 

Carroll Penhollow made the motion to approve the transfers and Inclusion Petition as reported.  The motion was seconded by Tom Burke and was then passed unanimously. 

 

Leslie Clark than reviewed a memorandum on imposing a cancellation fee on water rights that are cancelled and asked the Board to consider passing a resolution that would adopt this policy.  See Exhibit “E”.  Steve Johnson noted that this situation could be triggered by either 1) the failure to use a transferred water right or 2) the failure to beneficially use a water right for more than five (5) years.  It was noted that now anyone wishing to transfer water must sign a contract that addresses their responsibilities for beneficially using that water and states that the individual will be liable for a cancellation fee in the event the water is not used.   Paul Kasberger made a motion to approve the cancellation fee as requested effective immediately.  The motion was seconded by Robert Borlen and then unanimously accepted.  The formal resolution, Resolution 2008 - 4, will be presented at the March Board meeting for signature.

 

Carroll Penhollow reviewed the memorandum prepared by Laura Wollam detailing five new applications for one-year instream leases totaling 91.24 acres.  See Exhibit “F”.  A motion was made by Carroll Penhollow, seconded by Robert Borlen and unanimously passed to approve the instream leases.

 

The agenda was adjusted to address a New Business item regarding the Powell Butte Farmer’s Club as two representatives from that club, Don Hepperle and Chuck Cruikshank, had joined the meeting.  Cary Penhollow reported that the Powell Butte Farmers/Community Club, a 501(c)(3) organization, had been given water rights and is requesting COID donate the delivery point for needed irrigation water.  See Exhibit “G”.  Larry Roofener estimated the total cost of this installation at $1,921 with materials costing $776.  Discussion ensued regarding how this request would fit within COID’s Contribution Policy.  The Board expressed consensus that the District could not purchase the materials but might be able to provide in kind work.  However, they want Liz Dickson to review legal restrictions regarding in kind contributions and verify COID’s ability to do so.   Terry Blackwell made a motion to approve COID contributing the in kind work detailed in the Work Order totaling $1,145, subject to Liz Dickson’s review, to the Powell Butte Farmers/Community Club, a 501(c)(3) organization.  Robert Borlen seconded the motion that was then unanimously passed.

 

 

 

4.         REPORTS:

            A.        Water Report –

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

B.         Operations and Maintenance Report –

A written report (Exhibit “I”) was mailed to the Board prior to the meeting.   Larry Roofener informed the Board that COID is now tracking the cost of winter water runs.

C.        Hydro Report –

A written report (Exhibit “J”) was mailed to the Board prior to the meeting.  Bob Beal and Steve Johnson updated the Board on the status of the transformer loss issue.  COID had proposed to pay these amounts on a go forward basis only as Pacificorp had not remedied the problem previously rather than pay the $21,000 currently requested.  Pacificorp did not accept this proposal and is also asking that the entire agreement be rewritten.  Steve Johnson asked the Board to agree to Liz Dickson spending a limited amount of time writing a response letter with a counterproposal regarding amounts due.  The Board expressed consensus with this proposal.

D.        Manager Report –

The written Manager’s Report (Exhibit “K”) was mailed to the Board prior to the meeting.  

E.         Finance Report –

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

 

5.         BILLINGS & PAYROLL: 

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

 

The meeting recessed for lunch at 12:00 PM and reconvened at 12:20 PM.

 

6.         OLD BUSINESS: 

  • Real Estate Update

Steve Johnson reported that work regarding the Deschutes Market Road and Teal Road parcels is ongoing, nothing new to report.  He talked to Diane Wilcox of Mt. Bachelor Village regarding the desired visual easement waiver.  Diane requested that Steve send her a packet describing the proposal before the April 26th meeting of the Mt. Bachelor Village Board. 

An on site walk of the TenBar property showed a noticeable “fall” in the area that may someday make that property suitable for a hydro facility, especially if the canal in that area is eventually piped.  Cary Penhollow noted that this property is also used currently to “park” water.  As a result, this property should not be considered surplus in the near future.

COID is filing a legal lot of record and text amendment on the Juniper Ridge property (ten acres currently owned by State Parks) as current zoning doesn’t allow for hydro facilities.  Liz Dickson noted that the text amendment is very minimal.

  • Resolution 2008 – 3, Remnant Parcels Policy   (Exhibit “M”)

Robert Borlen made the motion to approve this formal Resolution which had been approved in concept at the January Board meeting.  The motion was seconded by Tom Burke and was then unanimously passed.

 

7.         NEW BUSINESS:

  • Foreclosures  (Exhibit “N”)

A motion to file suit for foreclosure against the three listed properties was made by Terry Blackwell and seconded by Robert Borlen.  That motion was unanimously accepted.

  • Scheduling Town Hall Meetings

Following discussion a decision was made to have two town hall meetings during 2008.  One will be held in Powell Butte and the other in Terrebonne.  Tentative dates based on facility availability are as follows:

            March 3rd         6:30 PM           Powell Butte Christian Church

            March 5th         6:30 PM           Terrebonne Grange

There was agreement that the agenda items for these meetings will include fish reintroduction in the basin, COID budget, and the Endowment Fund and associated strategy regarding that Fund.

  • GCC Lease Proceeds

Steve Johnson reported that COID currently is receiving $1,667 per month from GCC Communications.  These funds are deposited into the Endowment Fund.  District personnel are proposing putting those funds in the Building Fund to help offset the debt payment that will be due in 2009.  A motion was made by Robert Borlen and seconded by Tom Burke to make that change in allocation.  There was unanimous approval of the motion.

  • PBC Rereg Evaluation     (Exhibit “O”)

It was noted that COID would benefit from a reregulating facility on the CO Canal that could be used to better regulate water deliveries during the beginning and ending of the irrigation season when demand is erratic.  Audia-Gordon Development is proposing building such a structure but needs to understand the geology of the area and to determine if such a structure will be effective before committing to the project.  They were looking to COID to share in the cost of such an analysis.  Discussion ensued regarding the viability and type of future development plans in that area.  Steve Johnson suggested and the Board agreed that additional information was needed before a funding decision could be made.

 

Carroll Penhollow adjourned the Regular Session of the COID Board to Executive Session at 1:10 PM per

·        ORS 192.660(2)(h) to consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed.

 

The Regular Session of the COID Board was reconvened at 1:22 PM.

 

A motion was then made by Terry Blackwell and seconded by Tom Burke to adjourn the Regular Session.  The motion was unanimously accepted.

 

 

 

ATTEST:                     CENTRAL OREGON IRRIGATION DISTRICT

 

 

 

_________________________________         ________________________________

Steven C. Johnson, Manager                               Carroll Penhollow, President

 

 

_________________________________         _________________________________

Terry Blackwell                                                   Robert Borlen           

 

 

_________________________________         _________________________________

Thomas Burke                                                     Paul Kasberger