MANAGER’S REPORT

10 July. 2007

Natural flow of the Deschutes River is nearly 20% lower for this period compared to last year. Most of this decline is attributable to lower flows in the Little Deschutes River due to low snow pack in that region. Currently all irrigation districts, excluding NUID, are fulfilling their diversions with 100% natural flow, but by August this situation will likely not be the case. It is anticipated that storage withdrawals out of Crane Prairie for Arnold Irrigation District and Lone Pine may be necessary with continued heavy withdrawals out of Wickiup for NUID. While COID diversions will likely be met with natural flow it is possible that diversions will need to be supplemented with storage releases. COID’s storage at Crane Prairie provides some additional water for deliveries, but is not substantial enough to operate the entire District. It will be very important for all patrons to be aware of this situation and to be diligent in their water use.

The District provided comments to the City of Redmond’s comprehensive plan review in conjunction with the new Urban Growth Boundary addressing development impacts to the District and its infrastructure. These comments will be incorporated in the City’s findings and likely be adopted without revisions. 

COID and the Deschutes Basin Board of Control (DBBC) are fully engaged with NOAA and other basin stake holders with the Steelhead reintroduction effort. While a prosecutorial letter of discretion has been received from NOAA by the irrigation districts for this year, continuing conservation measures will have to be implemented to ensure ongoing protection and the consummation of a Habitat Recovery Plan (HCP). To this end, the members of the DBBC are in active discussions with NOAA and the other basin stakeholders. A meeting is scheduled in mid – July with all the parties for a consensus based HCP planning and implementation path, which includes 10j experimental, non-essential designation.

 The opportunities pursued this past month include, but are not limited to:

· The Oregon State Legislature passed all bills favored by COID and the Oregon Water Resource Congress (OWRC) pertaining to the encouragement of hydroelectric production on properly fish screened irrigation canals have passed or are expected to pass with minimal negative impact from amendments.  There is similar progress on the federal level also. 

· Both the NUID and Deschutes River Conservancy legislative bills have been introduced in the US Senate and US House.  Other federal efforts pertaining or impacting irrigation districts are monitored by COID through its participation in the OWRC and the National Water Resources Association (NWRA).

· The 2007 Farm Bill activity in Washington, DC is picking up steam.  COID in conjunction with the Oregon Water Resource Congress is heavily involved with lobbying for expanded provisions for irrigation districts under the proposed Regional Watershed Enhancement Program as part of the established EQIP. The District will continue to be active in this process and monitor the Bill’s progress as it makes its way through the congressional approval process which will likely take until the fall.

· COID is in active conversations with Oregon State Parks on acquiring a 10 acre parcel for the placement of the Juniper Ridge Hydro Project.  The City of Bend has expressed interest in working with the District on this parcel and may complicate the issue.

· The District has selected two very qualified finalists for the new hire position for the Siphon Power Project.  Final on-site interviews of the two finalists will be conducted and a hiring decision completed by the end of July. This hire is being pursued for operational flexibility and to assure reliability of operations going forward. 

· A Master Agreement with Crook County is underway to address both entities’ authorities and requirements for road development and improvement projects.

The challenges presenting themselves:

· US Representative Oberstar (D-MN) introduced a bill in the US House titled “Clean Water Act Restoration” that if passed and signed into law would have an incredibly negative impact on all irrigation districts and patrons.  The introduced bill would extend the onerous regulatory framework of the CWA through the Army Corps of Engineers to basically all waters connected to a stream or river including farmer ponds and all irrigation canals and laterals.  An accompanying and identical bill has been introduced by US Senator Feingold (D-WI) in the US Senate. Hearings are scheduled in the House after the summer recess. COID is playing a very active role with the NWRA and OWRC in providing information on the negative impact this will have on irrigation districts and its patrons.

· The City of Bend has released their proposed UGB and it has a significant impact to irrigated lands of both COID and Swalley irrigation districts. If the proposed UGB is adopted over 2,000 COID irrigated acres will be impacted. Deschutes County has released the Urban Reserve Area boundary also with only a few hundred COID irrigated acres of impact. Discussions have already been initiated with both the City of Bend and Deschutes County.

· Oregon Dept of Environmental Quality (DEQ) has issued new and stricter guidelines on the use of dry wells for the disposal of storm water in Central Oregon. The new standards have basically eliminated the once common use of dry wells and encouraged the use of bio swales for storm water retention. COID has received a number of plans from developers incorporating bio swales outside of the COID easements but very close to the main canals and laterals. The issue of storm water contamination seep into the canals and possible impact to the integrity of the canal infrastructure is a major concern to the District. The District hired Newton Consultants to evaluate these impacts and report to the Board with recommendations and comments. The final report is enclosed in the Board packet for this month’s board meeting.

STATUS REPORT

Deschutes Water Alliance

· Members will be meeting with representatives from OWRD to provide an update on the Central Oregon Water Bank in late July, and to get a better understanding of the Water Supply analysis the State will be performing in the coming year.

Status – In Process

David Evans & Associates

· Assisting District on Juniper Ridge hydroelectric project

Status – Preliminary pipeline design and hydro facility completed

· Assisting District on evaluating retention structures in Dry Canyon

Status – Preliminary structure size and cost estimates completed. Remington Ranch has expressed reluctance to be involved, but discussions are ongoing at this point.

· Assisted District in evaluation of excavation work being done along North Canal Blvd in Redmond.  Will be involved in the development of standards for electrical utilities.

Status – Standard Operating Procedures in development. Follow up discussion with PacifiCorp to be scheduled.

· Cooperative evaluation of potential 50-100 acre re-regulating structure on Central Oregon Canal with Audia-Gordon LLC. Geotechnical work and elevation specifications are underway.

Status – In Process

Real Estate

· Bid schedule for partitioned 40-acre parcel near Deschutes Market Road and Hwy 97 still delayed pending a clarification of deed to property. Issue is being worked for resolution with Steve Scott, Title Company, and Legal Counsel.

Status – In Process

· DesertScape, COID, and the Redmond School District are proceeding on filing for rezoning changes of the 250-acre parcel in east Redmond.  Multiple conversations and meetings with City of Redmond staff on the most productive path for approval. The draft Redmond TSP will be received before the end of July with the planned modified TSP steps to include the 250 acre parcel to be underway shortly thereafter.

Status – In Process

Development

· Coordination agreements with Deschutes County and the City of Bend are required under Oregon Revised Statute (ORS) Chapters 195 & 197 for the establishment of new Urban Reserve and Growth Boundaries.  Both entities have begun the conversations with likely effected irrigation districts and other special districts.

Status – See discussion above in Challenges section. Discussions held and ongoing

· Direct communication with City of Bend and Redmond public works and planning staff on resolving issues of canal safety and impacts of development that will require piping.

Status – In Process. Preliminary discussions held, issues ongoing, no resolution expected for some time.

· Special District representatives conducted a field evaluation of canal structures within the city limits of both Redmond and Bend. Recommendations include COID to implement main canal monitoring program utilizing District field and managerial staff.

Status – In Process. Monitoring Program to be established before end of July.

 ON THE RADAR SCREEN

· Bull Trout Critical Habitat Final Rule amendments

· Funding for the Habitat Conservation Plan work associated with the Steelhead reintroduction.