The regular meeting of the Board of Directors of the Central Oregon Irrigation District (COID) was called to order by President Carroll Penhollow at 9:09 AM on November 10, 2009 in the District Office.
Directors present were Robert Borlen via conference call, Tom Burke, and Carroll Penhollow. Terry Blackwell and Paul Kasberger were absent. Also attending were Steve Johnson, Secretary-Manager; Liz Dickson, Attorney; Priscilla Ross, Assistant Secretary; Robert Beal, District Engineer; Cary Penhollow, Watermaster; John Summers, Siphon Power Plant Operator; Laura Wollam, Beneficial Use Specialist, and the visitors shown on Exhibit “A”.
1. OPEN FORUM
· Phil Nance, a patron in Division two (2), informed the Board that his father, Red Nance is 87 years old and is a COID patron. Red Nance has about thirty (30) head of cattle and fifteen (15) horses. Somehow Red did not read the postcard COID mailed informing patrons of the fact that there would be no winter water runs on the PBC this winter and that any patron needing assistance needed to contact the District by a specific date. Red Nance has a stock water pond at the back of the property that is used to water his cattle. The only water source for that pond is irrigation water. Phil stated that he was attending the meeting in his father’s behalf to ask for assistance from COID in filling the pond this winter. Cary Penhollow reported that the pond would be accessible for water hauling. Steve Johnson said that when the Board set the October 13th deadline they anticipated that there may be requests submitted after that date that would have to be evaluated on a case by case basis. Carroll Penhollow stated that the Board will discuss this item and make a decision later in the agenda.
· Ray Perry, a patron in Division four (4), informed the Board that he had missed the deadline for getting some of the water rights on his property transferred and that COID had started confiscation proceedings on some of the water rights that are on his property. A memorandum (Exhibit “B”) had been distributed to the Board prior to the meeting that explained this confiscation matter in detail. Laura Wollam stated that Mr. Perry owns a forty (40) acre parcel that has about thirty-six (36) acres of water rights and that 5.2 of those acres are in question and under confiscation. She stated that only 1.3 of those acres can be transferred onto property that he owns. Tom Burke and Carroll Penhollow expressed consensus that the Board is very frustrated that it took so long for Mr. Perry to respond to COID’s notifications regarding the status of the water and to deal with this situation. They stated that it was in the Board’s best interest to protect this water from COID’s perspective, not to solve Mr. Perry’s problem that resulted from his unwillingness to address the situation in a timely manner. Mr. Perry was also informed that he must pay any required transfer fees prior to the time any transfer application is filed and that he must make delinquent assessment payment arrangements with the office. Discussion ensued regarding potential means Mr. Perry could employ to vouch that there was beneficial use on the property. He was told that there is a serious risk that there would be insufficient evidence to prove that water had been beneficially used on the 3.9 acres and the only way to for COID to ensure that that water would not be lost to the state would be to confiscate it. Laura Wollam informed Mr. Perry that if the COID Board decided to confiscate that water, he could file a protest with the state. At that time Mr. Perry would be required to provide sufficient evidence of beneficial use and would be required to cover any state costs associated with that protest. Carroll Penhollow informed Mr. Perry that the Board would address this specific situation later in the meeting and he would be informed of their decision. In the interim any evidence he could provide the Board regarding beneficial use prior to the end of the meeting would be evaluated.
2. MINUTES:
Robert
Borlen made a motion to approve the minutes from the October Regular Session
Board Meeting and the September 17th Special Board Session Meeting
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 “C”.
PBC Permanent: Total 0.20
Marjama .20 Off
Marjama .20 On
COC Permanent: Total
31.70
Christiansen .30 Off
Christiansen .30 On
Waibel 31.40 Off
Waibel 31.40 On
It was noted that the small transfers were movements of water on the same property to ensure that the rights were correctly mapped. Carroll Penhollow made a motion to approve the permanent transfers. Following a second by Robert Borlen, the motion was unanimously passed.
COID Owned Water Rights were reviewed (Exhibit “D”) and
Steve Johnson informed the Board COID has met its 100 acre target for 2009 with
the Central Oregon Water Bank. The
current average blended rate price for water on the
The 2009 Confiscation Update memo (Exhibit “E”) was reviewed. Steve Johnson noted that he has been in contact with Mrs. Crofoot and that the 6.0 acres listed on the memo will not be included in the 2009 Confiscation as she will be working with the District to ensure that those rights are appropriately used in 2010. It was noted that ORS540.610 lays out the specific process that must be followed in the event of confiscation. Carroll Penhollow stated that official Board action on confiscation will be deferred until later in the meeting.
4. REPORTS:
A. Water Report-
A written report (Exhibit “F”) was mailed to the Board prior to the meeting.
B. Operations and Maintenance Report-
A written report (Exhibit “G”) was mailed to the Board prior to the meeting.
C. Hydro Report-
A written report (Exhibit “H”) was mailed to the Board prior to the meeting.
D. Manager Report-
A written report (Exhibit “I”) was mailed to the Board prior to the meeting.
Carroll Penhollow asked if there were any pictures documenting the construction of the original Siphon Power Plant. Bob Beal was asked to find pictures documenting that history from those stored at the plant and give them to Jenny Hartzell-Hill for scanning.
Steve Johnson stated that four pieces of pipe are being laid each day at the Juniper Ridge Hydroelectric Project. The Board expressed consensus that they would like to visit the site on December 8th following the Board meeting.
E. Finance Report-
A written report (Exhibit “J”) was mailed to the Board prior to the meeting. An income statement (Exhibit “K”) reporting COID Operations through October 31st was distributed at the meeting.
Steve Johnson reported that the final ODOE bond rate is 5.15%. This rate is more than 1% lower than that used in the Juniper Ridge initial project feasibility projections.
Carroll Penhollow read the resolution directing that all delinquent charges and assessments to be foreclosed (Exhibit “L”). A motion was made by Tom Burke and seconded by Robert Borlen to approve this resolution. The motion passed unanimously. Robert Borlen authorized Priscilla Ross to sign the Resolution.
5.
Tom Burke made a motion to accept the payroll register and billings as presented. Robert Borlen seconded the motion which was then unanimously passed.
6. OLD BUSINESS:
·
Instream Leasing Program
Steve Johnson introduced Gen Hubert and Scott McCaulou from the Deschutes River Conservancy. Scott noted that this is the 10th year that COID has participated in the Instream Leasing program and that COID is a critical participant in their program. COID uses the program as a means for patrons to meet beneficial use requirements and to meet the river flow standards being defined in the Habitat Conservation Plan. Two years ago COID quit using five-year leases for any patrons other than municipalities. It was noted that there has been a decrease in the number of COID acres leased instream. A memorandum was distributed detailing current activity (Exhibit “M”). Gen Hubert reviewed a memorandum (Exhibit “N”) listing proposed changes that may increase the number of instreamed acres. She noted that one of the proposals includes DRC paying both the COID and state lease fees related to instreaming. The total 2,500 acre cap for instreamed acres would not change.
Following discussion, a motion was made by Tom Burke to allow three-year instream leases as long as they meet the following criteria:
o A minimum of five water rights acres must be included.
o COID has the right of Operational Review before the lease is approved.
o COID has the right to opt a patron out of the lease due to operational issues.
The motion was seconded by Robert Borlen and unanimously passed. A draft of the flyer that will go to COID patrons regarding the instream program was reviewed (Exhibit “O”). Verbiage notifying patrons that 1) there is a 2,500 acre cap and that instream leases will be approved on a first come, first served basis with priority given to rights with non-use and 2) COID has the right of Operational Review before any lease will be approved will be included in the flyer.
The meeting was recessed for lunch at 12:30 PM.
The meeting reconvened at 1:10 PM.
· PBC Winter Water Run Patron Status
Cary Penhollow reported that COID now has agreements with all PBC patrons requiring assistance in obtaining water for their livestock this winter who contacted the District prior to the time deadline. He stated that all patrons have been very cooperative. The total cost, including the amount for Red Nance if approved by the Board, is $33,700. A motion was made by Robert Borlen to pay Red Nance the agreed amount of $35 per head of cattle for winter water deliveries. The motion was seconded by Tom Burke and unanimously passed.
· Approve COC Winter Water Run Schedule
The COC winter water run dates as detailed in the Water Report were reviewed. Following a motion made by Robert Borlen and seconded by Tom Burke, the schedule was approved unanimously.
·
OWRC Conference in
Steve Johnson reported that Terry Blackwell would be unable to attend the conference. Due to the desire to attend the workshops that will be presented Tuesday afternoon, the van will leave the COID office at 9:00 AM that morning.
· Water Feasibility Review Fee - Sign Resolution 2009-16
This Resolution is filed with the October minutes as Exhibit “M”.
The Board members in attendance signed this Resolution that was approved at the October 13th Regular Board Meeting. Robert Borlen authorized Priscilla Ross to sign on his behalf.
· Confiscated Water Rights Lottery – Sign Resolution 2009-18 (Exhibit “P”)
The Board members in attendance signed this Resolution to document the motion that was approved at the October 13th Regular Board Meeting. Robert Borlen authorized Priscilla Ross to sign on his behalf.
Perry Water Right Transfer / Confiscation
Kyle Gorman of the Oregon Water Resources Department informed the Board that COID was free to move ahead with confiscating the 5.2 acres on the Perry property because the Perrys failed to respond within the first 30 days after notification. He stated that COID could move 1.3 of those acres to land Mr. Perry is currently watering as part of the confiscation process. If this transfer were done through confiscation, Mr. Perry would not have to pay the $400 transfer fee. Carroll Penhollow made a motion to proceed with the listed confiscation as detailed in Exhibit “E”. The motion was seconded by Robert Borlen and unanimously passed.
· Leslie Clark joined the meeting. She explained that two cans would be used in the drawing; one for each canal. There are tickets for each patron interested in and able to acquire confiscated water in the cans. Tom Burke, a Board member not included in the draw, had verified that each ticket number listed on Exhibit “Q” was appropriately assigned and placed in each can prior to the meeting and signed to attest that fact. Leslie noted the following water availability and request:
PBC Available 3.21 acres Requested 17.03 acres
COC Available 18.30 acres Requested 18.30 acres
(Note: The worksheet shows 19.6 requested on the COC but 1.3 will be transferred to Mr. Perry per the confiscation motion detailed above.)
Tom Burke drew the tickets from each can. That draw was recorded on Exhibit “R”. Marguerite Kasberger will get the 3.21 acres drawn on the PBC. The other awarded acres on the COC are detailed on the Exhibit.
7. NEW BUSINESS:
· Elections:
o Division 4 – Certificate of Election (Exhibit “S”)
The Certificate of Election was read by Carroll Penhollow and signed appropriately.
8.
BOARD
COMMENTS:
None
Larry Roofener joined the meeting at noon. He reported that he had reviewed the plans for the Brown Agreement with the engineers at Sunrise Engineering. Some changes will have to be made to those plans to bring the plans in compliance with COID standards.
A motion was made by Robert Borlen to recess the Regular Session of the COID Board at 2:05 PM to convene in Executive Session per
Regular Session was reconvened and then adjourned at 4:31 PM following a motion by Robert Borlen that was seconded by Tom Burke.
ATTEST: CENTRAL OREGON IRRIGATION DISTRICT
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Terry Blackwell Robert Borlen
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Thomas Burke Paul Kasberger