CENTRAL OREGON IRRIGATION DISTRICT

BOARD OF DIRECTORS’ MEETING

March 11, 2008

 

 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 9:04 AM on March 11, 2008 in the District office.

 

Directors present were Terry Blackwell, Robert Borlen, Tom Burke and Paul Kasberger.  President Carroll Penhollow was absent.  Also attending were Steve Johnson, Secretary-Manager; Liz Dickson, Attorney; Priscilla Ross, Assistant Secretary, Larry Roofener, Operations Manager and Cary Penhollow, Watermaster.

 

1.         OPEN FORUM   - No issues were presented

 

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:        (Exhibit “A”)

Paul Kasberger noted that the following transfers were detailed in the Transfer report. 

PBC Permanent:                                            Total               -0-

 

COC Permanent:                                           Total               3.10

COID                                                                                      2.00  Off

Brader                                                                                      2.00  On

 

Clark                                                                                          .70  Off

COID                                                                                        .40  Off

Clark                                                                                        1.10  On

 

Leslie Clark joined the meeting and reported that the Inclusion Petition for Lisa Cook-Rosa to add 4.8 acres of land mass to the District that was presented at the February Board meeting had been approved and that the Order for Inclusion was pending.  Tom Burke made the motion to approve this Order for Inclusion.  The motion was seconded by Robert Borlen and then unanimously passed.

 

A motion was made by Paul Kasberger to approve the transfers as reported.  Robert Borlen seconded the motion which was then unanimously passed.

 

Steve Johnson reported that Brasada Ranch is requesting a change of use of 4.3 acres from Irrigation to Recreation Water Use and a temporary transfer of 2.9 acres of Pond Maintenance rights to be used to establish a pond previously intermittently filled by waste water off J-9.  After the water loss is monitored to determine the exact quantity of Pond Maintenance rights needed, Brasada will purchase Pond Maintenance rights from COID and permanently transfer them to the pond location.  Robert Borlen made a motion, seconded by Tom Burke, to accept this change in use of water.  The motion was unanimously passed.

 

The memo detailing 2008 Instream Lease Requests (Exhibit “B”) was reviewed noting that a total of 2,169.247 acres are leased instream as of March 5, 2008.  A motion to approve these instream leases was made by Robert Borlen, seconded by Tom Burke and then unanimously passed.

 

4.         BILLINGS & PAYROLL: 

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

 

5.         REPORTS:

            A.        Water Report –

A written report (Exhibit “C”) was mailed to the Board prior to the meeting.   The Board expressed consensus with the 2008 Irrigation Season start dates of April 10th on the Pilot Butte Canal and April 14th on the Central Oregon Canal.

B.         Operations and Maintenance Report –

A written report (Exhibit “D”) was mailed to the Board prior to the meeting.   Per the Board’s request from the February meeting, Larry Roofener summarized COID’s proposal to KDV LLC regarding the lateral power drop option and cost on Helmholtz Way.  The Board expressed consensus with this proposal.

C.        Hydro Report –

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

D.        Manager Report –

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

 

7.         NEW BUSINESS

Paul Kasberger interrupted the regular meeting agenda to introduce Richard Donaca, CPA, to present the 2007 audit report.    Mr. Donaca briefly reviewed the 2007 financial reports and other audit letters with the Board.  He noted that he had issued a clean opinion on the audit.  Discussion ensued regarding Custodial Credit Risk as discussed in Note 2.  Mr. Donaca informed the Board that this risk is a result of banks being required to collateralize only a percentage, 25% for banks with excellent credit ratings, of any government entity’s deposits.  He noted that House Bill 2901, effective July 1, 2008, changes public funds collateralization requirements.  After commending staff for an excellent job in regards to audit preparation, Terry Blackwell made a motion to accept the 2007 audit reports as presented.  This motion was seconded by Robert Borlen and was then unanimously passed.

 

 

 

5.         REPORTS: (continued)

 

E.         Finance Report –

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

 

6.         OLD BUSINESS: 

  • Sign Approved Resolution: 2008-4 Cancellation Fee Policy

This Resolution, approved at the February 2008 Board meeting, was distributed for signatures.  The original is filed with the February Board meeting minutes.

  • Town Hall Meetings – Review

Steve Johnson reported that the meetings in Powell Butte and Terrebonne went well with attendance similar to last year.  It was noted that an item needing clarification among patrons is the difference between a headgate fee and an account fee and that it would be an appropriate topic for a newsletter article. Following discussion it was decided to keep the two meeting format for 2009. 

  • Real Estate Update

Liz Dickson reported that the name on the title has been changed from Central Oregon Irrigation Company to Central Oregon Irrigation District for all applicable properties, including the property on Deschutes Market Road, per a quiet title action filed with Case Number 07CV0564ST.

Paul Kasberger stated that he believed the Board needed to clarify a strategic plan for managing the proceeds from future real estate sales.  Steve Johnson said that he is currently preparing a list of COID potential capital requirements for the Board’s evaluation and that a special session will be scheduled when that list is complete. 

  • Update from Liz Dickson on Powell Butte Farmer/Community Club (the Club) Proposal

Liz Dickson reported that per her research public money may not be appropriated for private purposes unless the expenditure benefits the whole community.   She also emphasized that a public entity must treat all its patrons equally.  Based on these findings a motion was made by Terry Blackwell that management should regretfully inform the Club that, based on Oregon law, COID cannot donate money or services.  This motion was unanimously passed following a second by Robert Borlen.  Discussion ensued regarding two different available options that may be available to the Club.                      

1)  The Club can pay for labor and parts on a payment plan as long as costs are recovered in one year.  This option is provided to other patrons when necessary.

2)  COID staff will discuss the option of irrigating the Club’s larger parcel with the purpose of using that larger parcel to prove up COID owned water rights which would benefit the entire District.  If this option is agreed to by the Club, COID would pay for the installation and a larger headgate to handle the delivery.

  • Final SPP 2007 Excess Calculation  (Exhibit “H”)

Priscilla Ross reported that this schedule details the variance between the final allocation and the preliminary calculation reviewed by the Board at the January meeting.  These funds have already been allocated.

  • Geotech Status – Audia Gordon Proposal

Per the Board’s request from the February meeting, Steve Johnson handed out an email from Jim Gordon of Audia Gordon which stated that Audia Gordon has a controlling interest in the property on which they want to evaluate building a multi-use water facility.  COID’s cost share of this evaluation to be done by David Evans and Associates would be approximately $3,700.  A motion was made by Robert Borlen and seconded by Tom Burke to have staff notify Audia Gordon to proceed with this work.  The motion was unanimously passed.  Steve Johnson noted that this item was brought to the Board for approval because it is a capital expenditure that was not part of the original capital budget.

 

Steve Johnson informed the Board that Pacificorp showed $21,957 as a transformer loss adjustment on the statement detailing February’s Power Purchase.  It was noted that these funds will actually be deposited into COID’s bank account near the end of March.   This statement had been faxed to Liz Dickson when received.  Liz stated that she had contacted Pacificorp and the employee that she had been negotiating with had no idea that the deduction had been taken.   She stated that she believed that this retroactive adjustment was not appropriate as Pacificorp had altered the contract based on their conduct.  The Board directed Liz Dickson to resolve this issue.

 

7.                  NEW BUSINESS:  (continued)

  • 2008 Irrigation Season Start Dates

Item addressed as part of the Water Report.

 

Paul Kasberger recessed the Regular Session of the COID Board to Executive Session at 12:10 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 1:05 PM.

 

Steve Johnson stated that COID had received a special request from Oregon Water Resources Congress for $1,250 to help them prepare for the upcoming Legislature.  It was decided to research this request further before making a decision.

 

A motion was then made by Terry Blackwell and seconded by Tom Burke to adjourn the Regular Session at 1:10 PM.  The motion was unanimously accepted.