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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 9:00 AM on May 12, 2009 in the District Office.

 

Directors present were Terry Blackwell, Tom Burke, Robert Borlen, Paul Kasberger, and Carroll Penhollow.  Also attending were Steve Johnson, Secretary-Manager; Liz Dickson, Attorney; Priscilla Ross, Assistant Secretary; Larry Roofener, Operations Manager; Cary Penhollow, Watermaster; Robert Beal, District Engineer; John Summers, Siphon Power Plant Operator; and the visitors shown on Exhibit “A”.

 

1.         OPEN FORUM

  • Ellen Hammond, an employee with the Oregon Department of Agriculture (ODA), stated that she had appeared in Open Forum at the April Board meeting and had asked for a financial contribution from COID of up to $1,000 to help defray costs of printing the Rural Living Handbook for Deschutes County.  Her purpose in appearing today was to describe the handbook and the purpose for its distribution more completely.  The handbook will be a forty (40) page document with four (4) pages on irrigation.  Approximately 20,000 booklets will be printed.  The section on irrigation will address issues relevant to all irrigation districts in the County: patron rights and responsibilities, water rights, easements and property owner responsibilities regarding tail water.  Steve Johnson and Rex Barber will be writing the section on irrigation.   The Oregon Watershed Enhancement Board (OWEB) is funding part of the printing costs.  As part of that funding OWEB is requiring that ODA track booklet distribution through a survey that will be included in the booklet.  Steve Johnson asked that the booklet include information regarding the current and potential impact of the enforcement of the Endangered Species Act, the reintroduction of listed fish and the Salmon Plan on irrigators in the Deschutes Basin.
  • Herb Cronenwett, a patron from Division 2 - Redmond, stated that following his appearance in Open Forum last month he had received a copy of the COID Developer Handbook that addressed requirements for bridge construction within COID facilities.  He stated he believes there have been recent additions to the requirements for bridge construction and that adhering to those requirements would be very expensive.  Paul Kasberger responded that the District has had to set standards for any canal crossings because contractors have impacted District facilities and put the District at risk by installing canal crossings that do not adhere to specific standards. Mr. Cronenwett informed the Board that he thinks construction costs for crossings that are on a patron’s private property should be borne by the District.  Mr. Kasberger noted that many of the crossings that have been installed are done by landowners that are developing their own property and that these costs benefiting a few should not be absorbed by all the patrons in the District.  Jeremiah Fender reported that the District does not have specific design standards for bridges.   Steve Johnson informed Mr. Cronenwett that the Board adopted the Developer Handbook policy last year and that there have been no changes to the policy since.  He noted that the Board has an agenda item under Old Business to discuss Mr. Cronenwett’s request for a reduction in the crossing fee that he was assessed.
  • Deborah McMahan, a patron from Division 2, Redmond, stated that she was appearing before the Board in her capacity as the Land Use Entitlements Officer for Jim Robinson.  She said that following the death of one of the principals in the company(s) in which Mr. Robinson is a majority owner, the company is resolving ownership issues.   The companies in which Mr. Robinson is a principal own a number of properties within COID boundaries.  She informed the Board that she is the only individual, other than Mr. Robinson, who is authorized to represent or make any decisions regarding those properties.  Steve Johnson asked Ms. McMahan to provide the District with a list of all subject properties.  She concurred and said that she will ensure this list is sent to COID.

 

2.         MINUTES:

Terry Blackwell made a motion to approve the minutes for the April Regular Session Board 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 “B”.

 

PBC Permanent:                                                        Total               1.90

Nance                                                                                                  1.90 Off

Nance                                                                                                  1.90 On

 

COC Permanent:                                                       Total               1.13

Snoke                                                                                                  0.35 Off

Snoke                                                                                                  0.35 On

 

COID Quitclaim                                                                                    0.78 Off

Faulkner                                                                                                0.78 On

 

Carroll Penhollow made a motion to approve those transfers.  Following a second by Robert Borlen, the motion was unanimously passed.

 

During April 4.50 acres of water on the PBC and 1.00 acres of water on the COC were quitclaimed to COID.  Carroll Penhollow reported that the 1.00 acre on the COC will be leased instream this season and then purchased by COID following an issuance of Order on instream lease by OWRD.  During the same month .78 quitclaimed acres on the COC were sold.  Steve Johnson noted that the volume of water movements and exhanges is reduced from prior periods due to the low level of development activity.

 

Carroll Penhollow made a motion to approve the May requests for instream leases (Exhibit “C”).  Terry Blackwell seconded the motion which was then unanimously passed.

 

 

 

 

 

4.         REPORTS:

            A.        Water Report-

A written report (Exhibit “D”) was mailed to the Board prior to the meeting.  Cary Penhollow stated that approximately 2,300 acre feet of storage were used instead of the 3,355 acre feet reported due to increased natural flow.

B.         Operations and Maintenance Report-

A written report (Exhibit “E”) was mailed to the Board prior to the meeting.  Larry Roofener reported that Duane Wolfersperger, COID Shop Foreman, will be programming the gates at Ferguson Road to COID codes.  It was noted that the gate structures have been improved and modified to COID standards and gate agreements will be signed within the next few days.

            C.        Hydro Report-

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

            D.        Manager Report-

A written report (Exhibit “G”) was mailed to the Board prior to the meeting.   Paul Kasberger asked if COID would be eligible as a PacifiCorp rate payer to obtain Energy Trust Funds that could be passed on to COID patrons to be used for existing irrigation system upgrades.  Steve Johnson responded that he will contact Energy Trust personnel and find out the answer.

            E.         Finance Report-

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

 

5.         BILLINGS & PAYROLL:

Robert Borlen made a motion to accept the payroll register and billings as presented.   Terry Blackwell seconded the motion which was then unanimously passed.

 

6.         OLD BUSINESS:

  • Cronenwett Matter

Jeremiah Fender, Land Use Specialist, joined the meeting.  Steve Johnson stated that the Board needed to respond to Mr. Cronenwett’s request to waive or reduce the crossing fees he was assessed for a bridge he wants to install.  He noted that the District needs to be consistent with the way fees are charged.  Terry Blackwell asked for details regarding the current fee structure.  Jeremiah responded that a crossing fee over a ditch that carries less than 5 cfs is $450; $750 for a ditch that carries more than 5 cfs; and $2,500 for the main canal.  Larry Roofener noted that even though the ditch (B-11) on Mr. Cronenwett’s property carries more than 5 cfs, the lower fee was offered due to the nature of the ditch on the property.  Discussion ensued regarding the impact a ditch’s physical characteristics (slope, fill, etc.) has on the amount of work that would have to be done to ensure that a crossing is done correctly.  It was noted that the use of a standard fee structure results in different hourly rates depending on the individual situation.  However, standard fees avoid the problematic issues that can result from hourly billings. 

Following discussion regarding the specification requirements related to a bridge on Mr. Cronenwett’s property, Jeremiah Fender responded that Geotechnical work is only required on main canal or lateral crossings.   He stated that Mr. Cronenwett had submitted a very rough sketch for the proposed bridge that did not list any measurements or specifications.  Jeremiah noted that COID was requiring a drawing of the proposed bridge with measurements and a listing of the materials to be used. 

Mr. Cronenwett asked management about canal width requirements and commented that the width of the ditch on his land encroaches on his property.  He asked to talk to a COID employee about the width.  Larry Roofener responded that he would contact Mr. Cronenwett and visit the property.

Terry Blackwell stated that in his opinion the $450 crossing fee seemed appropriate and that nothing needed to be changed.  Robert Borlen then made a motion to keep the fee at $450.  Carroll Penhollow said that there is no need for a motion to maintain the status quo.  Mr. Borlen withdrew the motion.  It was noted that staff currently has the authorization to work with patrons experiencing financial hardship to set up payment schedules rather than requiring payment in full at the time of service.

  • Oregon Department of Agriculture Rural Living Handbook request

Following discussion regarding whether or not individual irrigation districts or the DBBC, a coalition of districts, should make this contribution, a motion was made by Robert Borlen to contribute $500 to ODA to supplement printing costs for the handbook.  Terry Blackwell seconded the motion that was then unanimously passed.  It was noted that Steve Johnson’s time that will be spent on writing the irrigation section of this handbook is also a contribution COID is making.

  • Juniper Ridge Update

Robert Borlen, as a member of the EPC Proposal Review Team, reviewed the Update and Action Items (Exhibit “I”) with the Board.  Steve Johnson introduced Greg Huston, Executive Vice-President of Slayden Construction whose proposal was awarded the most points.  Steve then reviewed a worksheet detailing the projected project returns given three different funding scenarios (Exhibit “J”) with the worst case scenario at 8.8% and the best case at 21%.  He said that DEQ issued their definitive funding notice on Friday morning.  The other two scenarios show return at different levels of funding from the Bureau of Reclamation.  A total of $5 million in funding will be requested from the Bureau and grant awards will be made in late June or early July.  The variance between the gross capital costs and the contractor bid are soft costs and contingency allowances.   

Steve Johnson noted that the core EPC agreement was acceptable to Slayden Construction.  During negotiations with Slayden following the acceptance of their proposal, approximately $940,000 of cost reductions have been documented in a one page amendment that will be attached to the agreement.  It was noted that a worksheet detailing COID disbursements to date on this project (Exhibit “K”) was included in the Board members’ packets.  The Board will ultimately need to determine how these costs and future COID spending will be treated.

Robert Borlen made a motion to approve acceptance of and announce the notice of intent to award the contract for the Juniper Ridge Hydroelectric Project to Slayden Construction, Inc. in the amount of $21,048,675 and to authorize Carroll Penhollow, Board Chairman, to sign the approved contractual documents on May 19, 2009.  Terry Blackwell seconded the motion.  Prior to the call for the vote, Paul Kasberger asked about the amount of liquidated damages in the contract if the pipeline is not in service by April 15th, 2010.   Greg Huston responded that those damages are $30,000 per day but assured the Board that the irrigation system would be ready by April 2nd.  The Board then unanimously approved the motion.

Terry Blackwell publicly thanked and expressed his appreciation for the work done by the EPC Proposal Review Team.

 

 

7.         NEW BUSINESS:

  • Workers’ Comp Volunteer Resolution 2009-8    (Exhibit “L”)

Priscilla Ross stated that SDAO required this Resolution to cover the volunteer that COID has staying at the Crane Prairie cabin this summer.  Carroll Penhollow read the Resolution and then made the motion to accept same.  The motion was seconded by Robert Borlen and then unanimously passed.

  • Water Marketing and Efficiency Grant Authorization  -  Resolution 2009 – 9 

(Exhibit “M”)

Steve Johnson stated that this authorization is a requirement of the BOR Grant application.  Carroll Penhollow read the Resolution.  Following the reading a motion was made by Terry Blackwell for approval.  Robert Borlen seconded the motion that was then unanimously passed.

 

8.         BOARD COMMENTS:

  • Paul Kasberger noted that the current economic situation is creating a favorable environment for purchasing necessary machinery and equipment.  Staff will research opportunities.
  • Terry Blackwell reported that he has delved into the question regarding the District’s named status as a “quasi” Municipal Corporation.   COID is and always has been a Municipal Corporation.  The word “quasi” is a descriptive term.  Even though COID is a Municipal Corporation, it does not have the same characteristics as a municipality which can be confusing for patrons.  An example relates to voting rights.  Within a city (a municipality) anyone of voting age living within the city’s defined boundaries has a right to vote.  However, voting rights for an irrigation district, even though it is a municipal corporation, are restricted to patrons of that district. 
  • In response to a Board member’s question regarding Ms. McMahon’s purpose in attending today’s meeting, Liz Dickson responded that Ms. McMahon works for the company that Jim Robinson owns and has been given responsibility to manage the properties owned by Mr. Robinson and entities in which he is a principal owner.  She came to the meeting to clarify that position with the Board and to inform the Board that if other people come to speak to the Board they do not have the authority to make property decisions regarding any subject properties, including Audia Gordon LLC.  If a corporation has title to land with water rights, an individual must be a principal or officer within that corporation to be a patron.  Liz Dickson noted that any member of the public may speak at Open Forum.  However, the Board has a different perspective in dealing with patron vs. non-patron matters.  Steve Johnson suggested that people wishing to speak at Open Forum should first state where they live and have water.  The Board has the right to ask individuals questions to determine if they are patrons.  Liz noted that Ms. McMahon had contacted her to inform her that they are interested in building a water retention structure on their property.

 

The Board recessed the Regular Session of the COID Board at 11:25 AM for lunch and then to convene in Executive Session per

 

  • ORS 192.660(2)(e) to conduct deliberations with persons designated by the governing body to negotiate real property transactions.
  • 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.
  • ORS 192.660(2)(i) to review and evaluate the employment-related performance of the chief executive officer of any public body, a public officer, employee or staff member who does not request any open hearing.

 

Following the adjournment of the Executive Session, Carroll Penhollow reconvened the Regular Session at 12:35 PM. 

 

 

A motion was made by Terry Blackwell to authorize Steve Johnson to sign any required documentation to finalize the partition of the Redmond East 250 between COID and the Redmond School District and to spend up to $36,000 to complete same.  Robert Borlen seconded the motion that was unanimously passed.  It was noted that after the partition is approved the Board will authorize the land to be conveyed to the Redmond School District.

 

A motion was made by Terry Blackwell to adjourn the meeting at 12:40 PM.  Robert Borlen seconded that motion.

 

 

 

ATTEST:                     CENTRAL OREGON IRRIGATION DISTRICT

 

 

 

_________________________________         ________________________________

Steven C. Johnson, Manager                               Carroll Penhollow, President

 

 

_________________________________         _________________________________

Terry Blackwell                                                   Robert Borlen           

 

 

_________________________________         _________________________________

Thomas Burke                                                     Paul Kasberger