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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 9:03 AM on August 11, 2009 in the District Office.
Directors initially present were Terry Blackwell, Tom Burke, Robert Borlen, and Carroll Penhollow. Paul Kasberger was absent. Also attending were Steve Johnson, Secretary-Manager; Priscilla Ross, Assistant Secretary; Liz Dickson, Attorney; Larry Roofener, Operations Manager; Robert Beal, District Engineer; Cary Penhollow, Watermaster; John Summers, Siphon Power Plant Operator; and the visitors shown on Exhibit “A”.
1. OPEN FORUM
No issues were presented.
2. MINUTES:
Robert Borlen made a motion to approve the minutes for the July 29th Special Session Board meeting as submitted. Terry Blackwell seconded the motion. A second motion was then made by Robert Borlen to approve the minutes for the July Regular Session Board meeting as submitted. Following a second by Tom Burke, the motion was passed with a unanimous vote.
3. TRANSFERS/INCLUSIONS:
Carroll Penhollow reviewed the following transfers with the Board. See Exhibit “B”.
PBC Permanent: Total -0-
COC Permanent: Total
1.95
Cameron 1.95 Off
Cameron 1.95 On
After noting that this transfer was a movement of water on the same property to ensure that the right is 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 Order for Inclusion into District Boundary – PBC for 177.0 acres for the new Juniper Golf Course. He noted that the Board had approved the Petition for this Inclusion at their July meeting. A motion was then made by Carroll Penhollow and seconded by Tom Burke to approve the Inclusion Order. The motion was unanimously passed.
It was noted that of the 25.2 acres quitclaimed by Heyne, Horton & High Ranch Development during June, 1.3 was cancelled due to non-use and a cancellation fee in the amount of $1,984,28 was deducted from the proceeds paid.
Discussion ensued regarding COID owned water rights in
inventory. Steve Johnson discussed a
pilot project in which COID will move twenty (20) acres to NUID this fall. As this water will be used for agricultural
purposes, he noted that it should come out of the patron reserve. There will be one (1) account set up for the
assessment, which would be billed to NUID.
It will be NUID’s responsibility to charge specific patrons.
4. REPORTS:
A. Water Report-
A written report (Exhibit “C”) was mailed to the Board prior to the meeting.
B. Operations and Maintenance Report-
A written report (Exhibit “D”) was mailed to the Board prior to the meeting. Additional discussion ensued regarding the status of the unauthorized crossing of the COC Dry Canyon Waste. Larry reported that the patron has submitted and paid a for a crossing license application.
C. Hydro Report-
A written report (Exhibit “E”) was
mailed to the Board prior to the meeting.
Discussion ensued regarding the impact the recent electrical storms had
on power generation. SPP personnel will
be working with an electrician in
Steve Johnson noted that SPP is now producing more kwh during irrigation season than in prior years as a result of COID improving water flow management and implementing water conservation projects.
D. Manager Report-
A written report (Exhibit “F”) was distributed to the Board at the start of the meeting.
E. Finance Report-
A written report (Exhibit “G”) was mailed to the Board prior to the meeting. Discussion followed regarding potential investment options for the CD’s held at Raymond James Financial that are maturing in August and September. The Board expressed consensus that those funds should be kept available during the initial phases of Juniper Ridge Hydro construction until outside funding has been finalized.
Schedules detailing Juniper Ridge disbursements to date were reviewed. Priscilla Ross noted that these disbursements will be moved to a separate fund within the accounting software to facilitate reporting.
5.
Robert Borlen made a motion to accept the payroll register and billings as presented. Tom Burke seconded the motion which was then unanimously passed.
6. OLD BUSINESS:
Steve Johnson reported on the following items:
· The Commitment Letter and Indemnification Letter with the Oregon Department of Energy were finalized and executed by the July 31, 2009 deadline.
· The loan closing documents for both Oregon Department of Energy and Department of Environmental Quality are pending and should be completed by August 31. Stoel Rives is serving as legal consultants in facilitating this process. A Special Session meeting of the COID Board will probably be required before the end of August to finalize those agreements.
· BOR has still not announced grant recipients. An announcement is expected within the next two weeks.
· PacifiCorp
Power Purchase Agreement – Expected to be ready for signature this week.
Interconnection Agreement – Negotiations with PacifiCorp have reduced the cost associated with this agreement and discussions are continuing.
· Slayden Construction
§ The second progress payment to Slayden Construction is due and will be paid today. That net payment, after a 5% retention, is $696,692.95. COID capital funds will be used to make this payment until OWEB and DEQ funds are available. The OWEB funds have been approved and awarded to DRC; COID has to submit an agreement with DRC before those funds will be issued.
§ The construction plan is on schedule. 100% of the design process should be done by the end of August. Pipe is on schedule to be delivered and staged during September.
· It was noted that each funding item discussed in the Special Session held July 29th has been approved.
· Bend City Council approved the Intergovernmental Agreement of $278,000 for digging the pipe to a lower level within City limits.
· FERC conduit exemption
Application may have to be resubmitted as a deed is needed to document “control of the site”.
7. NEW BUSINESS:
The agenda was interrupted to move to New Business
· Swalley Irrigation Request
Suzanne Butterfield, the Manager with Swalley Irrigation District, directed the Board to read a letter she had written to COID on August 5, 2009 (Exhibit “H”) requesting that Swalley purchase 10 cfs for 16 days during the end of September. Steve Johnson stated that COID can amend this year’s limited license request from 450 acre feet to 750 acre feet. It was noted that this water will come out of COID’s allocated storage. The cost of this license is $750.
Robert Borlen made a motion to allow Swalley Irrigation District to move 300 acre feet from COID’s storage in Crane Prairie. Swalley will pay 50% of the license fee. Following a second by Tom Burke, the motion was unanimously passed.
Steve Johnson informed the Board that COID will be working on an interdistrict agreement that will address North Canal Dam access and maintenance.
Discussion ensued regarding the need to inform Swalley customers served by COID about the fact that there will be no winter water runs on the PBC this winter.
6. OLD BUSINESS: (continued)
Liz Dickson reported that the parties in this issue have agreed to attend a special mediation session. Steve Johnson is to facilitate the meeting; no lawyers will be present. The Board of Directors expressed consensus approval for Steve Johnson’s involvement in this process. However, they also agreed that this is a final step as COID has “gone the extra mile” in attempting to find resolution for these parties. The conditions for moving the point of delivery were reviewed and reconfirmed.
Employees Leslie Clark and Laura Wollam joined the meeting to present an updated fee proposal (Exhibit “I”) due to the recent state legislation increasing the fees charged by OWRD. Leslie Clark reported that staff is proposing that a pilot project to group more applications together for filing be implemented in 2010. In the interim staff will focus on addressing the large amount of transfer requests that need to be processed. The proposed fees will be implemented immediately and the financial impact monitored. A motion to approve the proposed fee increases effective immediately and to approve the implementation of a pilot project in 2010 to process transfers differently was made by Tom Burke. Following a second by Robert Borlen, the motion was unanimously passed.
Steve Johnson reviewed the shortened MOU. It was noted that there is no longer an Executive Committee listed. The objectives were reviewed. Discussion ensued regarding the consensus verbiage in the second paragraph on page 4. Robert Borlen made the motion to execute and sign the MOU. Terry Blackwell seconded the motion that was then unanimously passed. Following the vote, Robert Borlen volunteered to serve as the Elected Official; Steve Johnson agreed to be Alternate.
No Board members are available to attend.
7. NEW BUSINESS:
Authorizing and Approving Execution
of an Agreement between COID and the Deschutes Water Conservancy for a
Conserved Water Agreement related to OWEB Funding for the Conserved Water
Project on the
Steve Johnson noted that it completes the understanding with the Deschutes River Conservancy for both OWEB and contingent BOR funding related to the Juniper Ridge Hydro project.
Robert Borlen read and then made a motion to approve Resolution Number 2009-11. Terry Blackwell seconded the motion that was then unanimously passed.
Steve Johnson noted that the Board needs to approve and sign a resolution approving the execution of an agreement between COID and the DEQ. However, this document is not yet final as there are language changes that need to be addressed. A Special Session will be noticed and held to document approval.
8.
BOARD
COMMENTS:
None
The Board recessed the Regular Session of the COID Board at 12:25 PM for lunch and then to convene in Executive Session per
Following the adjournment of the Executive Session, Carroll Penhollow reconvened the Regular Session at 1:50 PM.
A motion to give Liz Dickson and Steve Johnson the authorization to negotiate with State Parks and Recreation Department to purchase the Juniper Ridge property within the parameters discussed in Executive Session was made by Tom Burke. Following a second by Robert Borlen, the motion was unanimously passed.
Terry Blackwell made a motion to approve staff to proceed to
work with
A motion was made by Terry Blackwell to adjourn the meeting at 1:55 PM. Robert Borlen seconded that motion.
ATTEST: CENTRAL OREGON IRRIGATION DISTRICT
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Terry Blackwell Robert Borlen
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Thomas Burke Paul Kasberger