MANAGER’S REPORT

11 September. 2007

Letters were sent to all patrons advising everyone of new policy approved by the Board to assist COID in resolving neighbor conflict and controlling costs for private delivery issues.  Letter included a copy of the resolution and policy as passed by the Board in addition to estimated dates of end of irrigation season, October 10 for the Central Oregon Canal and October 11 for the Pilot Butte Canal.

COID with the Deschutes Basin Board of Control (DBBC) is fully engaged with NOAA, US Fish & Wildlife Service (USFWS), 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, USFW, and the other basin stakeholders.  A meeting is scheduled for September 24th and several issues are expected to be discussed, including the scope of the HCP – meaning the geographic breadth and ecological depth that needs to be analyzed and evaluated, and the support and clarification of language to provide to NOAA with regards to the ESA Section 10(j) Non-Essential Experimental designation of the steelhead population.  Support for NOAA to pursue a 10(j) rule making is important for the purposes of providing “liability protection” to anyone who is performing an activity that may be harmful to the ESA protected species.  COID is very active in working with our Congressional delegation and with the Cities and Counties of Central Oregon on this very serious issue that will take several years to complete.  A meeting of the DBBC with the counties and cities is scheduled for the afternoon of September 11th.

COID, on behalf of the DBBC, submitted a grant proposal via the Oregon Department of Fish and Wildlife to the USFWS for assistance with the HCP planning and development process just beginning.  The grant request was for $305,000 of federal assistance for HCP development, professional consulting services and professional facilitation.

The City of Bend’s Urban Reserve Area (URA) and Urban Growth Boundary (UGB) process is underway and will likely require an extended period of time to get to approval.  There have been several joint meetings of the City of Bend and Deschutes County Planning Commissions with a lot of testimony received, including testimony from COID and Swalley Irrigation District (see August 2007 Manager Report).  Both commissions decided to “suspend” hearings on the URA in order to focus on the UGB.  A series of additional joint meetings of the planning commissions are being planned, including a Technical Advisory Committee to include special districts (which includes irrigation districts and park districts) to work through the issues and analysis.  COID will be involved with this process going forward.

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

·        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 front and center as Congress reconvenes following its summer recess.  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. 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 end of this fall.

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

·        Discussions with the participants of the Deschutes Water Alliance Bank (formally Central Oregon Water Bank) are continuing on formalizing into a multi-party agreement.  While allocations and transactions have been occurring under an existing Memorandum of Understanding, it is believed that a more formal structure would be beneficial to provide assurances to all participants.

·        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.

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.

·        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.

·        Meetings have been held with the City of Redmond staff and several developers involved with piping of the C Lateral in Redmond’s Northwest Area Plan.  While there is a cost associated with the piping many benefits were identified and discussed, including the reduction of COID easement creating more buildable lots for developers along with eliminating flooding of subdivisions and improving public health, safety and welfare.  Annexation agreements are likely to be executed before the end of 2007 and COID is coordinating with the City of Redmond on a number of development issues.

STATUS REPORT

 Deschutes Water Alliance

·        Formulating formal organizational structure for Water Bank with funds from Water 2025 grant being utilized for legal assistance.  Naming water bank to Deschutes Water Alliance Water Bank.

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 – 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.

 ·        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

·        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 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 will be received soon 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 irrigation season.

 

 ON THE RADAR SCREEN

            ·        Bull Trout Critical Habitat Final Rule amendments

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