CENTRAL OREGON IRRIGATION DISTRICT

BOARD OF DIRECTORS’ MEETING

July 14, 2009

 

The regular meeting of the Board of Directors of the Central Oregon Irrigation District (COID) was called to order by President Carroll Penhollow at 9:06 AM on July 14, 2009 in the District Office.

 

Directors initially present were Terry Blackwell, Tom Burke, Robert Borlen, and Carroll Penhollow.  Paul Kasberger arrived at 9:50 AM.  Also attending were Steve Johnson, Secretary-Manager; Priscilla Ross, Assistant Secretary; Liz Dickson, Attorney; Larry Roofener, Operations Manager; Cary Penhollow, Watermaster; John Summers, Siphon Power Plant Operator; and the visitors shown on Exhibit “A”.

 

1.         OPEN FORUM

  • Mercedes Rhoden, a college student working with Crook County for the summer, informed the Board that she had been working with the County to address problems caused by irrigators watering the roads.  She reviewed a draft ordinance (Exhibit “B”) designed to deal with road hazards.  This proposed ordinance provides the Crook County Court the right to levy financial penalties on individuals that willfully put irrigation water on the roads.  These penalties increase with each citation.  Crook County is asking for COID to support this ordinance by turning off an irrigator’s water at the sheriff’s request if that irrigator continues to violate this policy after being issued five (5) citations.   Board discussion ensued with members expressing concerns regarding potential legal liability resulting from turning off irrigation water as statutes are unclear on authority for such cases.  It was noted that this item (Crook County Ordinance Request) was on the Agenda for today’s meeting under New Business and that further discussion of this matter would be postponed until then.
  • Tom Maddux, a patron from Division Three (3), distributed a handout (Exhibit “C”), detailing irrigation issues he and his neighbors are experiencing.  He stated that this item would be addressed in New Business under Point of Delivery Issues.
  • Desiree Covey, a patron from Division Three (3), informed the Board that she and her husband are currently involved in a lawsuit and have already spent many thousands of dollars in legal fees in an attempt to keep their irrigation system as it currently exists.   Ms. Covey stated that Mr. Brown, who purchased the neighboring property about four years ago, has modified the irrigation system that had served their properties for many years to the point that she and her husband are unable to irrigate appropriately.  She asked the Board to enforce the easements along their system giving the Coveys the right to access their system.   It was noted that this situation would also be addressed under New Business, Point of Delivery Issues.

 

2.         MINUTES:

Robert Borlen made a motion to approve the minutes for the June Regular Session Board Meeting as submitted.  Tom Burke seconded the motion.  Terry Blackwell abstained from voting.  The motion was passed with a unanimous vote from the remaining Board members.

 

3.         TRANSFERS/INCLUSIONS:

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

 

PBC Permanent:                                                        Total               1.00

Saxton                                                                                                  1.00 Off

Saxton                                                                                                  1.00 On

 

COC Permanent:                                                       Total                 .90

Bloom                                                                                                    .90 Off

Bloom                                                                                                    .90 On

 

After noting that these transfers are movements of water on the same property to ensure that the rights are correctly mapped, Carroll Penhollow made a motion for approval.  Following a second by Robert Borlen, the motion was unanimously passed.

Carroll Penhollow then reviewed the Petition for Inclusion into District Boundary – PBC noting that this is property for the new Juniper Golf Course.  Even though some of this property is on BLM land, the City of Redmond will pay the assessment.  The Board needs to provide official consent before the Petition can be filed.  A motion was made by Carroll Penhollow and seconded by Robert Borlen to proceed with the inclusion.  The motion was unanimously passed.

 

4.         REPORTS:

            A.        Water Report-

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

B.         Operations and Maintenance Report-

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

            C.        Hydro Report-

A written report (Exhibit “G”) was mailed to the Board prior to the meeting.  Following discussion regarding the raft incident at the trash week the past week, it was noted that the Central Oregon Trail Alliance will be hanging “Dangerous Condition” signs in the area.

            D.        Manager Report-

A written report (Exhibit “H”) was mailed to the Board prior to the meeting.   Carroll Penhollow asked about the status of the Cooperation Agreement with Crook County as required by ORS197.  Liz Dickson stated that work on that agreement has stopped, the Agreement is not complete, and easement issues remain unresolved.

            E.         Finance Report-

A written report (Exhibit “I”) was mailed to the Board prior to the meeting.  Robert Borlen inquired if COID Endowment Fund could invest in long-term stimulus bonds that are currently earning more than 7% interest.  Priscilla Ross will contact Linda Zivney of Zivney Financial Services to research this situation.

Public commendation was given to two COID employees:

·   Stuart Keyte for proactively initiating getting insurance reimbursement of $725.45 for COID costs incurred to deal with a vehicle accident during which the driver negligently drove his car into the ditch

·   Janet Brown for proactively working on assessment collections, particularly with delinquent accounts.

 

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:

  • Juniper Ridge Update

Steve Johnson reported on the following items:

·   The Oregon Parks parcel of 10.66 acres that the District is going to purchase is currently being appraised; the survey field work has been completed.

·   DEQ announced last Friday that COID will be receiving $4 million in ARRA funds, $2 million as principle reduction (grant) and the other $2 million as a 20 year loan at -0-% interest.  This is a $1 million reduction from amounts initially requested.  A loan application for the balance of the funds needed for piping has been submitted.

·   BOR has not yet announced grant recipients.  An announcement should be made at the end of July. 

·   PacifiCorp

Power Purchase Agreement – in process

Interconnection Agreement – Two of the four steps involved in this agreement are complete.  PacifiCorp included a $3.9 million cost for interconnection.  This amount is considerably higher than what was allocated in the construction bid.  Meetings are scheduled to negotiate with PacifiCorp.

·   The first progress payment to Slayden Construction is due and will be paid today.  That net payment, after a 5% retention, is $475,369.55.  The Pelton Round Butte grant funds of $250,000 and COID capital funds will be used to make this payment.  The second payment is due in two weeks and OWEB moneys should be available.

·   A draft OWEB Commercial Energy Project Loan document for $17 million was reviewed (Exhibit “J”).   Collateral for this agreement is listed as the building and land for the Juniper Ridge Hydroelectric Project and revenue and the facility for the Siphon Power Project.  It was noted that once the closing documents are signed, COID will be liable for loan fees.  Steve Johnson proposed that the Board meet in Special Session on July 29th to review the status of project financing and the OWEB loan agreement.   A draft resolution (Exhibit “K”) that must be passed at that session was distributed.  A Special Session will be held on July 29th at 4:30 PM to review the status of the Juniper Ridge Hydroelectric Project.

·   A handout detailing Juniper Ridge disbursements to date (Exhibit “L”) was distributed.

 

  7.       NEW BUSINESS:

The agenda was interrupted to move to New Business, 2009 / 2010 Collective Bargaining Agreement – Signatures.  Tom Wines, the President of the SEIU 503, Local 592, joined the meeting.  The Collective Bargaining Agreement for June 1, 2009 through May 31, 2010 was signed by Tom, each member of the Board and Steve Johnson.

 

6.         OLD BUSINESS: (continued)

  • OWRD Fee Increases

Employees Leslie Clark and Laura Wollam joined the meeting to discuss fee increases detailed in Exhibit “M”.  It was noted that these fee increases are a result of state budget cuts for the Oregon Water Resources Department.   If these fee increases had been applied to 2008 transactions, COID costs would have been approximately $8,000 higher.  Steve Johnson noted that it has been District policy to increase patron fees to cover COID operational cash out-of-pocket cost increases.  Discussion ensued regarding the available options for dealing with the increase: lose patron revenue, increase the number of transfers in each group submitted to the state, double the fee to the patron, or increase the base assessment charge.  Paul Kasberger asked about the feasibility of grouping all the transfer applications for one year together and making one filing with the state.  Staff was directed to research this option more thoroughly.  A motion was made by Terry Blackwell to suspend any fee increases until the Board has the opportunity to review staff’s recommendations at a future meeting and take appropriate action.  Robert Borlen seconded the motion that was then unanimously passed.

 

  7.       NEW BUSINESS: (continued)

  • Point of Delivery Issues

·   Tom Maddux reviewed the emails that he distributed to the Board during Open Forum.  He read the speech printed in Exhibit “N”.   It is Mr. Maddux’s belief that he holds an easement through Mr. Brown’s property that he should be able to access to maintain his system.   According to Mr. Maddux, Mr. Brown is refusing him that access.   Consequently Mr. Maddux is requesting that COID move his point of delivery.  Steve Johnson stated that the irrigation contract as proposed by COID would accomplish the same objective as moving the point of delivery.   Following discussion regarding the many issues with this delivery, it was noted that Mr. Maddux’s issue with COID’s proposed solution is his unwillingness to pay COID for any maintenance on the pipe that would be installed to handle his delivery.   Mr. Brown had previously offered to install this pipe at his expense.  The Board expressed consensus that the District will not set a precedent for increasing COID operations and maintenance costs as a result of adding points of delivery to the existing system.  They also expressed an opinion that, if the proposed pipe was installed according to COID standards and had the required screening and locks, maintenance should be very minimal.   Liz Dickson summarized the settlement offer that had been previously made:  Brown would pay for the materials and COID the labor for a splitter box that would divide the delivery into five pieces, COID personnel would access the box to control those deliveries, and any operations and maintenance costs needed for those deliveries would be billed to the patron.

·   Desiree Covey informed the Board that their main interest was to keep their existing system in place.  According to Ms. Covey, Mr. Brown is requesting that the buried pipe serving the Covey property that is currently on Mr. Brown’s property be moved.  Ms. Covey stated that she and her husband are opposed to moving the pipe due to the elevation changes and proposed pipe corners that could create delivery issues.  She said that she is not opposed to paying COID maintenance on the system and is not currently asking for a change in the point of delivery.  

·   Carroll Penhollow stated that the Board could not make a recommendation until staff talked to Mr. Brown or his representative to determine his position in this matter.  Steve Johnson will make that contact before the next Board meeting.

  • Crook County Ordinance Request

The Board expressed consensus that COID does not want to have to do “police action” regarding irrigation water deliveries due to potential liability.  The District’s responsibility for delivering water ends at the point of delivery.  COID is not in support of Section 6.04 in the Ordinance Draft.  It was noted that irrigation water management could fit into the Coordination Agreement with Crook County 

  • Insurance Agent of Record Notification: Century Insurance (Exhibit “O”)

Carroll Penhollow stated that this document officially named Century Insurance Group  as COID’s insurance representative.   This is an official notice only as Century Insurance Group has been doing COID’s insurance work for the last few years.

  • Training Notice: Operating Your Special District

The notice from Special Districts (Exhibit “P”) was reviewed and Board members were encouraged to attend this session.

  • Equipment Purchase (Exhibit “P”)

Larry Roofener reported that COID had made a $100,000 cash offer on a 2008 Kobelco ED 150 Hydraulic Excavator to Feenaughty Machinery Co. to replace the John Deere 110.   This offer has been accepted.  The Board Equipment Committee, Tom Burke and Paul Kasberger, recommended the purchase.   It was noted that this machine is larger than the 110 and is more of a dozier, that it can better shape canals.  Tom Burke made a motion to purchase the machine.  Paul Kasberger seconded the motion that was then unanimously passed.

 

8.                  BOARD COMMENTS:

Carroll Penhollow shared a letter that he received from State Representative Judy Stiegler (Exhibit “Q”) regarding work she had done on HB2003 that supported COID.

 

The Board recessed the Regular Session of the COID Board at 1:30 PM 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.

 

Following the adjournment of the Executive Session, Carroll Penhollow reconvened the Regular Session at 2:45 PM. 

 

A motion was made by Robert Borlen to adjourn the meeting at 2:45 PM.  Tom Burke seconded that motion.