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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 9:07 AM on September 8, 2009 in the District Office.

 

Directors initially present were Terry Blackwell, Robert Borlen, Paul Kasberger and Carroll Penhollow.  Tom Burke arrived at 9:47 AM.  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:

A motion was made by Paul Kasberger to approve the minutes for the following three Board meetings held in August: the Regular Session on August 11th, Special Sessions on August 18th  and August 27th.  Following a second by Terry Blackwell, 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               0.30

Sears                                                                                                    0.30 Off

Sears                                                                                                    0.30 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.

Steve Johnson reported that OWRD issued a Final Order on a mitigation application that was filed in 2006 resulting in 63.5 mitigation credits (35.25 acres).  These credits will be offered to the Deschutes Water Alliance Bank to be applied towards the COID 2009 Bank target of 100 acres.

 

 

 

4.         REPORTS:

            A.        Water Report-

A written report (Exhibit “C”) was mailed to the Board prior to the meeting.  Steve Johnson confirmed that Crook County Improvement District #1 had been notified of the October 5th turn off date for the Pilot Butte Canal.

B.         Operations and Maintenance Report-

A written report (Exhibit “D”) was mailed to the Board prior to the meeting.   Discussion ensued regarding weed control on the District’s easements.  It was noted that per Oregon statute weed control is a shared responsibility between both the property owner and the easement holder.  Paul Kasberger stated that goat head weed is becoming more prevalent in certain areas within the District and can cause tire damage.  Management will inform ditch riders of the problem to increase awareness.

Liz Dickson inquired about management’s response to the Robert Brown letter included in the report.  This letter has been placed in the patron’s file and will be addressed this winter.

            C.        Hydro Report-

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

            D.        Manager Report-

A written report (Exhibit “F”) was mailed to the Board prior to the meeting.  Steve Johnson noted the commendation COID received from Karen Kassy regarding Jason Neville’s work.  (Commendation included with the Operations and Maintenance Report.)

E.         Finance Report-

A written report (Exhibit “G”) was mailed to the Board prior to the meeting.  Priscilla Ross noted that a separate fund to report Juniper Ridge activity has been established in the accounting software. 

 

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 most recent draft Clean Water State Revolving Fund Loan Agreement was distributed (Exhibit “H”).  Steve Johnson noted either he or legal counsel had written the detailed comments.

·   A spreadsheet detailing the Juniper Ridge Project Budget (Exhibit “I”) was reviewed.  Costs are listed in the time period they are expected to be incurred.  The payment date could be four to six weeks later. 

·   The Oregon Department of Energy loan agreement should close this week.  The holding costs associated with undrawn funds on this loan were reviewed.  The first loan payment will be due in September 2010.

·   Land Purchase from Oregon State Parks and Recreation Department (OSPRD)

Steve Johnson reported that he and Liz Dickson requested a meeting with OSPRD staff to review the transaction but that there has been no response.  COID has placed $20,000 in escrow for the land purchase per the Board’s direction and OSPRD has been notified of same. 

·   Project Overview  (Exhibit “J”)

Steve Johnson distributed the worksheet and reviewed the projected net cash flows for both Juniper Ridge and Siphon Power Plant from 2011 through 2016.  Discussion ensued regarding the listed Internal Rate of Return assuming project residual value after 20 years of 9%.  There was Board consensus that a separate meeting should be scheduled in the near future to discuss financial strategy, particularly in regards to the investment of excess SPP earnings.

 

  7.       NEW BUSINESS:

The agenda was interrupted to move to New Business

·   Bank of the Cascades (BOTC)

Priscilla Ross introduced Travis Browning, Vice-President, and Brooke Garcia, Professional Banking Officer, from BOTC.   The FDIC Regulatory Order was made public last Monday that was based on an FDIC audit completed in late January 2009.  The Order included the following:

o       Bank capitalization should be increased by 10%.

o       Nonperforming assets (most of which are residential real estate loans) must be reduced.

o       Liquidity should be maintained.

Travis noted that BOTC had to increase their reserves at the end of the second quarter to cover non-performing loans which dropped their capitalization increase below 10%.  He stated that BOTC has already made significant progress in meeting the Order and that the public would be informed of any additional plans, if any, the bank has to increase capitalization.

Brooke Garcia informed the Board that BOTC now capitalizes all public deposits at 110% through securities purchased at the Federal Home Loan bank.  She distributed a handout (Exhibit “K”) detailing current COID account balances and the coverage on each of those accounts.  The Oregon State Pool would cover any amounts not covered through FDIC or BOTC’s collaterization.

 

6.         OLD BUSINESS: (continued)

·   Juniper Ridge Update

·   The Clean Water State Revolving Fund loan should close either the end of this week or early next week.  The total loan is $4,000,000; $2,000,000 is forgiven principal, the other $2,000,000 an interest free note.  This loan, as well as the ODOE loan, is secured by net revenues from both the Siphon Power Plant and the Juniper Ridge Hydro Project and is in second position to the ODOE loan.  It was noted that these funds can only be used for the piping portion of the project. 

 

Carroll Penhollow suggested that the Board consider Resolution No. 2009 – 15, Resolution to Authorize a Clean Water State Revolving Fund (CWSRF) Loan (Exhibit “L”).  Carroll then read the header for the Resolution, stated that the language within this Resolution was the same as Resolution No. 2009 – 14 which the Board approved at the August 27th Special Session, and called for the motion.  The motion to authorize the CWSRF Loan was made by Paul Kasberger, seconded by Robert Borlen and unanimously passed.

 

·   Point of Delivery Issues

Steve Johnson reported that there are signed settlement papers documenting agreements between the Coveys and Mr. Brown and Mr. Maddux and Mr. Brown.  There is also an agreement detailing both COID’s and Mr. Brown’s responsibility regarding the work that needs to be completed.  Mr. Brown will pay for the plans and piping to be done.  COID will provide the labor and ½ the cost of the materials for the box that will be installed.  Once the work has been completed and approved by COID, the points of delivery will be moved.  Steve Johnson verified that a separate agreement documenting easement agreements between COID and Mr. Brown will be finalized and signed before work begins.

·   Deschutes Water Alliance MOU (Exhibit “M”)

Liz Dickson noted that as the Board had approved the MOU in understanding at the August meeting, official approval was needed now that the agreement language was finalized.  Robert Borlen made a motion to approve the Deschutes Water Alliance MOU.  Tom Burke seconded the motion that was then unanimously passed.  Robert Borlen was designated as the elected official representative for COID and Steve Johnson as the alternate.

·   Amendment to Water Right Transfer Policy:  Resolution No. 2009 – 12 (Exhibit “N”)

The purpose of this amendment is to bring COID’s policy in agreement with the State policy which no longer provides written notice of a proposed transfer to lien holders.  The motion was made by Terry Blackwell and seconded by Tom Burke to approve the Resolution.  The motion passed unanimously.

·   PBC Winter Water Run Patron Issues

Comments have been collected and documented from concerned patrons.  Staff has been meeting with patrons with stock to discuss potential solutions.  The Winter Water Run Committee (Carroll Penhollow, Paul Kasberger, Cary Penhollow, Larry Roofener, Steve Johnson) met last Friday and came to a consensus that the best plan of action for COID would be to obtain bids from several water haulers and select one hauler for the deliveries, identified and approved by the Board.  The patron will be responsible for managing the water deliveries.  COID will purchase approximately 20 to 30 water tanks to facilitate water delivery during the winter.  Steve Johnson stated that a letter explaining the regulations regarding winter stock runs will be sent to all patrons who have contacted the office regarding winter stock runs that do not own livestock.

 

  7.       NEW BUSINESS (continued):

·   Resolution for Election by Mail: Resolution No. 2009-13  (Exhibit “O”)

The term for the Board member from Division 4, currently held by Robert Borlen, expires on January 1, 2010.  This Resolution authorizes the election for that position to be done by mail.  The COID newsletter, delivered to patrons on September 3rd and 4th, contained notice of this election.  Following a reading of the Resolution by Carroll Penhollow, Terry Blackwell made a motion to approve Resolution No. 2009-13.  That motion was seconded by Tom Burke and unanimously passed.

·   End of the Irrigation Season for the Central Oregon Canal

A motion was made by Robert Borlen to end the 2009 irrigation season on the Central Oregon Canal on October 14th.   Tom Burke seconded the motion that was unanimously passed.   

 

8.                  BOARD COMMENTS:

None

 

The Board recessed the Regular Session of the COID Board at 12:03 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 12:27 PM. 

 

A motion was made by Robert Borlen to adjourn the meeting at 12:28 PM.  Terry Blackwell seconded that motion.

 

 

 

 

ATTEST:                     CENTRAL OREGON IRRIGATION DISTRICT

 

 

 

_________________________________         ________________________________

Steven C. Johnson, Manager                               Carroll Penhollow, President

 

 

_________________________________         _________________________________

Terry Blackwell                                                   Robert Borlen           

 

 

_________________________________         _________________________________

Thomas Burke                                                     Paul Kasberger