CENTRAL OREGON IRRIGATION DISTRICT

BOARD OF DIRECTORS’ MEETING

April 13, 2010

 

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 April 13th, 2010 in the District office.

 

Directors present were Terry Blackwell, Robert Borlen, Tom Burke, 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, and the guests listed on Exhibit “A”. 

 

1.         OPEN FORUM  

Robert Wallace of Wy’ East Resource Conservation and Development appeared before the Board.  Wy’East is offering rebates that are available through the BPA to replace and / or purchase irrigation system parts and / or improvements.  A list of eligible equipment is displayed on Exhibit “B”.  Robert will be working through Central Electric Cooperative (CEC) to provide this service to COID patrons that are CEC customers.  He stated that the main objective of this program is electrical conservation. 

Steve Johnson noted that COID would be proactive about notifying eligible patrons through a targeted mailing.  Robert was asked to have the appropriate CEC personnel contact COID to facilitate assembling the mailing list.

 

2.         MINUTES: 

Terry Blackwell made a motion to approve the minutes for the March Regular Session Board Meeting as submitted.   Following a second by Tom Burke, the motion passed. 

 

3.         TRANSFERS / INCLUSIONS:     

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

 

PBC Permanent:                                           Total               .15

Atchison                                                                                  .15  Off

Atchison                                                                                  .15  On

 

COC Permanent:                                          Total             12.30

Sheridan                                                                                  1.50  Off

COID Quitclaim                                                                     3.35  Off

Sheridan                                                                                  4.85  On

 

Roman Catholic Baker Diocese                                              1.00  Off

Roman Catholic Baker Diocese                                              1.00  On

 

Clifford                                                                                   3.11  Off

COID Quitclaim                                                                     3.34  Off

Clifford                                                                                   6.45  On

 

PBC Temporary:                                          Total             14.55

COID Quitclaim                                                                     1.10  Off

Holt                                                                                         1.10  On

 

COID                                                                                     13.45  Off

SunTrust Land Co. LLC                                                        13.45  On

 

COC Temporary:                                         Total               6.65

Lillesve                                                                                      .90  Off

COID Quitclaim                                                                     5.60  Off

COID                                                                                        .15  Off

Lillesve                                                                                    6.65  On

 

The Temporary Transfers are allocated for the 2010 Irrigation Season only.

 

The following water transactions were noted:

·         .75 acres of water on the PBC and 8.00 acres of water on the COC were quitclaimed to COID during March.

·         Three “380” transfers which change the point of delivery were reviewed:

o   4.0 acres of Quasi-Municipal off the COC and onto River’s Edge POD #10

o   4.05 acres of irrigation water off the PBC and onto River’s Edge POD #10

o   8.95 acres of irrigation water onto River’s Edge POD #10

 

Carroll Penhollow made a motion to approve the transfers and other water transactions as reported.  Robert Borlen seconded the motion which was then unanimously passed. 

 

Steve Johnson stated that staff had asked how the COID patron base could be best informed about the new COID Confiscated Water Rights Lottery (Exhibit “D”) in a timely manner.  The COID annual newsletter is currently scheduled for publication in the fall.  That timing is too late to allow for adequate planning for the lottery.  Noting the cost of doing a separate mailing, the Board expressed consensus that the 2010 COID newsletter should be published this summer with an article explaining the policy.

 

The Instream Leasing Update memo (Exhibit “E”) was reviewed.  A motion was made by Carroll Penhollow to approve the March requests to lease instream a total of 35.95 acres on new 2010 lease applications.  The motion was seconded by Robert Borlen and unanimously passed.

 

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.  Larry Roofener distributed copies of the recently published Deschutes County Rural Living Handbook and asked for Board comments as to where these booklets should be placed for distribution.  A copy of a letter to the patrons impacted by the Peacock Lane Piping (Exhibit “H”) that describes both those patrons’ and COID’s responsibilities with the irrigation system was reviewed.

 

Liz Dickson stated that cities are now requiring that agreement be obtained from Deed of Trust holders before a right-of-way can be dedicated and asked if COID wanted to amend its policy to require same.  She noted that this requirement applies to new easements, not amendments to existing rights of way.  Steve Johnson noted that COID right of way agreements are currently recorded and that the District does not often obtain new easements.  However, on a go forward basis, if a new easement is required the District needs to ensure that the lender signs off on that right-of-way.  Liz will provide the District a form that can be used for this purpose.

 

Carroll Penhollow interrupted the agenda to move to New Business as Richard (Dick) Donaca, COID’s auditor, had arrived to present the 2009 Annual Reports.

 

7.         NEW BUSINESS

·         2009 Audit Report

Dick distributed a schedule summarizing the District’s financial status for 2009 (Exhibit “I”).  He stated that he had issued an “unqualified opinion” and that there were no exceptions or qualifications to the report.  A comparison of the District’s financial position between 2009 and 2008 highlighted the financial impact of the Juniper Ridge Hydro Project. 

 

4.         REPORTS: (cont.)

C.        Hydro Report –

A written report (Exhibit “J”) was mailed to the Board prior to the meeting.   A review of 2009 activity indicated that the historical numbers need to be corrected.

Paul Kasberger asked to have 20-year history average data regarding kwh production and total energy payments included in this report. 

 

D.        Manager Report –

The written Manager’s Report (Exhibit “K”) was mailed to the Board prior to the meeting.   The following items were highlighted:

·         COID received a letter from NOAA this week that they will issue a 10j draft rule which, if finalized, will provide a release from full ESA enforcement for a period of time for the Basin.  Steve Johnson noted that Greg Walden brought this issue before the Oregon Legislative delegation at their weekly meeting and that all delegates signed a letter to NOAA expressing their support to issue the draft rule.

·         Notice was received this week that the DBBC has been awarded an HCP grant of $407,400, the only grant issued to Oregon this year.

·         A DWA meeting will be held on April 22nd at the Redmond Fire Hall.  Robert Borlen will attend the meeting with Steve Johnson.

·         On May 13th there will be a session to address Oregon’s Integrated Water Resources Strategy in Redmond at the Fire Department.  It was noted that Oregon is one of the few states that does not have such a strategy in place.  Steve Johnson stated that he is encouraging both staff and Board members to attend this session as it’s critical that irrigation districts be involved in the process.  Discussion ensued regarding the role the DBBC should play in establishing this strategy.  There was Board consensus that there needs to be more communication between different District Boards to effectively build a common position.  Steve Johnson stated that he would schedule a Water Session with representatives from each District to begin the process.

·         Steve Johnson reviewed a letter from the DBBC to the USFS regarding their proposal to restore a wetland in Ryan Ranch Meadow.  He stated that a former BOR employee, Harold Sexton who was the engineer for the Deschutes Project, had been contacted and stated that this was not a natural wetland and it resulted from higher flows from stored water.  Liz Dickson noted that Mr. Sexton’s communication, even though it’s recorded, needs to be in the form of a legally admissible affidavit.

 

E.         Finance Report

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

 

5.         BILLINGS & PAYROLL:  

Robert Borlen moved to accept the payroll registers and billings as presented. The motion was seconded by Tom Burke and passed unanimously.

 

6.         OLD BUSINESS

·         KC Hydro, North Canal Dam and Cline Falls  (Exhibit “M”)

Steve Johnson reported that KC Hydro has filed a preliminary application on both the property and water right on the Cline Falls site.  COID will file an application with municipal preference that provides a three year window to allow COID to demonstrate an active involvement on the project.  The filing also must demonstrate why COID is best suited to get the power facility at Cline Falls operational.

 

·         Swalley -  COID IGA for Swalley Hydro Facility (Exhibit “N”)

Following a review of the agreement and noting that it is still subject to legal review, a motion was made by Paul Kasberger to approve the IGA.  Tom Burke seconded the motion that was then unanimously passed.

 

·         BLM Exchange

Liz Dickson reported that the Federal government can give land to a state regardless of the land’s size or shape.  However, per the State of Oregon the land must be of a certain size to become a legal lot of record.  Liz stated that she will be meeting with the Counsel for Deschutes County and other land use attorneys to develop a legislative fix for this matter.  Discussion ensued regarding the Board’s position on  whether or not this fix would be in the District’s best interest.  It was agreed that this matter should be addressed at the May Board meeting.  Maps of the applicable parcels will be available to allow a more complete evaluation of the impact of the exchange.

 

7.         NEW BUSINESS

·         Resolution 2020 – 5; WaterSMART Grant Authorization  (Exhibit “O”)

Steve Johnson noted that the Resolution must be passed even though the Proposal has not yet been completed as the Proposal must be submitted by May 5th and the Resolution must be part of that Proposal.  This Proposal will be for a Challenge Grant to fund approximately $1 million of the project to pipe another 4,000 feet upstream from the existing Juniper Ridge pipeline.

Following a reading by Carroll Penhollow, a motion was made by Robert Borlen and seconded by Paul Kasberger to approve the Resolution.  The motion was unanimously passed. 

 

·         Natel Energy

This firm has developed “low-head” hydro machines.  COID has several locations in the District that have both enough elevation “fall” and proximity to power distribution lines that they could support this machine.  The capital cost to install this type of generating equipment would be significantly less than that required for the type of hydro currently being installed at Juniper Ridge.  A “low-head” system could provide the potential to involve irrigators to utilize electricity for their own use.

 

6.         OLD BUSINESS  (cont.)

  • Juniper Ridge  (Exhibit “P”)

Kevin Crew of Black Rock Construction joined the meeting.  It was noted that Notice of Substantial Completion on the Pipeline has been executed.  Kevin Crew reviewed the Change Order #5 (Exhibit “Q”) that was necessitated by PacifiCorp’s requirements.  The requirements detailed in the Change Order will cost $628,772.33 and use approximately $465,000 of the Project $900,000 contingency.  The project will be on schedule with Commissioning scheduled for mid-October.  This Change Order must also be approved by the Oregon Department of Energy.

Robert Borlen made a motion to approve Change Order #5.  Tom Burke seconded the motion that was then unanimously passed.

 

·         North Canal Dam Fish Passage

Kevin Crew showed drawings of the fish return passage work done at the North Canal Dam.  He stated that the original facility was not designed correctly and there was a problem with excess sedimentation and moss buildup.  COID personnel fabricated and installed new gates.  Kevin commended staff for both the excellent quality of their work and their commitment to get the gates installed before irrigation season. 

 

Carroll Penhollow recessed the Regular Session of the COID Board at 1:00 PM for lunch and to meet 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.

 

The Regular Session of the Board was reconvened at 2:00 PM.

 

8.         BOARD OF DIRECTOR COMMENTS

 

None

 

Carroll Penhollow adjourned the Regular Session of the COID Board at 2:02 PM following a motion by Robert Borlen that was seconded by Tom Burke.