MANAGER’S REPORT

13 November. 2007

The first winter stock run should be underway on the Central Oregon Canal as of today running to Friday the 17th, and the Pilot Butte Canal run scheduled for November 17th – 20th.  There are four winter stock runs scheduled this winter with the next run scheduled for early January and is always dependent on the weather cooperatively.

Crane Prairie reservoir is holding steady around 31,000 acre feet with Wickiup reservoir filling so far at a rate consistent to last year and is currently at 89,000 acre feet.  The anticipated precipitation this week should benefit both reservoirs.  The precipitation outlook for this winter is positive due to a La Nina effect being present in the Pacific Ocean.  La Ninas usually portend a “wild & wet” winter represented by frequent storm fronts moving through the Northwest.  If this occurs consistently through the winter then the chances of higher winter flows in the Deschutes River increases.

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

·        COID has been invited to participate in a Technical Advisory Committee (TAC) formed to discuss and work with the City of Bend and Deschutes County on Bend’s UGB and URA expansion process.  COID intends to be involved with the TAC going forward.

·        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 continues.  While the House of Representatives has passed their version of the Farm Bill, the US Senate is still working on their version.  The latest version has now passed the Senate Agriculture Committee.  It is anticipated that a final version will not be voted on by the Senate until early 2008.  COID in conjunction with the Oregon Water Resource Congress is heavily involved with making its views known for expanded provisions for irrigation districts under the proposed Regional Watershed Enhancement Program as part of the established EQIP program.

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

·        Reinitiated discussions with PacifiCorp regarding the expiration of the lease on the Cline Falls land and evaluation of COID taking over the small hydroelectric facility already on site.  Several steps need to be evaluated with regards to the facility including state and federal licensing requirements and costs of upgrade.  To date the evaluation of licensing requirements on the state side are minimal, and a formal determination application to FERC for federal licensing is in process. Once the licensing issues are resolved then a more formal evaluation of upgrade and transfer of facilities costs will be undertaken.

The challenges presenting themselves:

·        The State of Oregon has filed a petition for review of the Oregon Court of Appeals Ft Vannoy decision to the Oregon Supreme Court.  The next step is to wait and see if the Supreme Court decides to accept the petition.  This will likely be known within a few months.

·         The Habitat Conservation Plan (HCP) process is still proceeding with conversations and negotiations with other basin stakeholders on a number of issues, including the intended scope of the HCP and interim measures.  COID and the DBBC hosted a two-day field trip within the Deschutes basin for organizations and governmental agency staffs not familiar with the irrigation districts and the conservation work accomplished to date.  Attendees included US Fish and Wildlife Service, NOAA Fisheries, ODFW, American Rivers, Trout Unlimited, Central Oregon Fly Fishers, and Native Fish Society.  All attendees expressed their thanks for the effort and were more appreciative of the conservation efforts extended by the irrigation districts.

·        COID and the DBBC hosted a meeting with the Regional Directors of both NOAA and the Bureau of Reclamation in Portland to discuss funding and accompanying issues with the Steelhead reintroduction.  The discussions centered not only on recognition of the positive efforts of the irrigation districts to date, but also Federal Budget issues not allowing NOAA to place the resources necessary to expedite a 10j rule making.  Reclamation did announce a grant of $50K towards the costs of facilitation of the HCP process and acknowledgement that the DBBC will be pursuing federal budget increases for the funding of conservation projects by the irrigation districts. COID provided testimony to the Bend City Council on a specific subdivision proposed to be built near the CO Canal off of Reed Market Road.  COID expressed concern that “off-site” mitigation projects for traffic impacts of the new sub-division included the construction of two bridges over the Canal and that COID was not consulted.  COID has concerns with regards to any additional structures along this stretch of the canal effecting the integrity of the canal banks and stressed that this section of canal needs to be piped to eliminate these concerns.

·        A report on the Deschutes Basin Mitigation Program will be presented to the Oregon Water Resource Commission in January 2008.  This report will provide data and information on instream flows in the Deschutes River.  The instream flows that will receive particular attention will be the flows at the Culver Gauge as these flows are to be protected from “excess” ground water withdrawal.  While not on the Commission’s agenda but is being discussed amongst basin stakeholders is the issue of the cap on mitigation permits to be issued by OWRD.  The cap is at 200 cfs cumulative for any groundwater permits as a condition of the Mitigation Program.  OWRD has received applications in excess of the 200 cfs cap and there are questions arising from this condition and how is OWRD going to address the issue.  At this point, applications received above the 200 cfs cap are being accepted but not acted upon by OWRD.  There will likely be pressure in the coming months for the Commission to address the mitigation cap to increase the cap.

STATUS REPORT

 Deschutes Water Alliance

·        Deschutes Water Alliance Water Bank is continuing to allocate urbanized water rights from the COID and Swalley irrigation districts to the cities of Bend and Redmond, Avion Water and the DRC.  2007 targets are nearly completed for COID and the Bank members are meeting near the end of November for discussion of 2008 targets of supply and demand.  The Water 2025 grant for the bank is now finished with a final report due to the Bureau of Reclamation by Dec 31, 2007.

·        Discussions are underway to prepare and formalize an Inter-Governmental Agreement between the governmental parties associated with the Bank.

Status – On going

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 – Landowner contacted COID regarding potential crossing of Dry Canyon in Powell Butte area and transfer of water rights to west side of canyon.  Opportunity may exist to build small retention structure and eliminate any tailwater flows continuing down canyon towards the Crooked River.  Grant sources being researched for project.

 ·        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 – On Hold, No progress

Real Estate

·        A Quiet Title action has been initiated by COID on the partitioned 40-acre parcel near Deschutes Market Road and Hwy 97 and a few other parcels along the Pilot Butte Canal in Bend.  Resolution will require formal court action and should occur sometime in 2008.

Status – In Process

·        DesertScape and COID executed a new option agreement for acreage in east Redmond.  DesertScape, COID and the Redmond School District are proceeding on filing for rezoning changes of the 250-acre parcel in east Redmond. The draft Redmond TSP has been received but only included the COID 250 acre parcel under its current OSPR zoning.  A second TSP is being pursued to assess the traffic loading with the COID 250 acre parcel under its proposed zoning as filed with the City of Redmond under the Master Plan.   

Status – In Process

·        Surveying and Conditional Use permitting is being pursued for COID owned lands along Teal Road.  Once completed the  Board will evaluate for declaring surplus depending on market conditions and financial requirements of the District.

 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.  City of Bend legal counsel has filed testimony that an agreement with COID is not necessary, but COID and Deschutes County legal counsels have filed testimony that an agreement is necessary and required.  COID and Swalley have committed to City of Bend planning staff a first draft of the 195 agreement desired.

Status –   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.

 

 ON THE RADAR SCREEN

            ·        Bull Trout Critical Habitat Final Rule amendments

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