MANAGER’S REPORT

8 April. 2008

The last winter stock runs of the season were successfully completed last month and the irrigation season will begin this week.  Wickiup reservoir will be filled to capacity and Crane Prairie close.  The snow pack is at 150% of normal and cool temperatures exist in the mountains indicate that peak natural flows could extend into late May.  This benefits the junior water rights, particularly NUID, later than usual into the irrigation season and should reflect itself in a good carryover position with the reservoirs this fall.

There was a DBBC Habitat Conservation Plan meeting of basin stakeholders and governmental agencies on March 10th in Bend.  This was the first large stakeholder meeting since September 2007.  The Stakeholder discussion still centered on the scope of the HCP and working through expectations of the process and timeline.  The good news was the announcement of the DBBC having its $306,000 USFWS Section 6 grant for HCP Planning approved.  Next steps are for the DBBC to prepare the Request for Proposal and Qualifications package and send out to experienced consulting firms to begin the science gathering portion of the HCP process.  It is expected to have a consulting firm selected and work started in the Basin by June.  At this point, it is only the members of the DBBC that have declared an intent to pursue Incidental Take Permits (ITP) for their activities.  It is quite possible that other governmental parties may join in the HCP to pursue an ITP.

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

·        COID is participating in the 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.  In addition, the irrigation districts are holding discussions with City of Bend staff on issues that require coordination.  These discussions are intended to provide the basis for a coordination agreement between the irrigation districts and the City of Bend.  In addition, the evaluation of EFU lands both irrigated and non-irrigated has been started by City staff.

·        Both the NUID and Deschutes River Conservancy legislative bills have been introduced in the US Senate and US House with no further movement at this time.  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.  Both the US House and US Senate have passed their own versions of the Farm Bill.  This will require a conference between the House and Senate and then passage from each chamber to be presented to the President for signature or veto.  The current Farm Bill expired on March 15th  with an extension passed to Mid-April.  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 Deschutes River Conservancy (DRC) Board of Directors unanimously approved pursuing funding for the COID Juniper Ridge Hydro Project ($4MM), and the C-1 lateral ($80k) piping projects.

 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 Oregon Supreme Court has decided to accept the petition and a hearing is scheduled in May 2008. 

·        Continued working with two groups of patrons effected by development and atrophy of water deliveries and infrastructure in Redmond. Both groups are classified as Remnant Parcels and subject to the new COID policy.

STATUS REPORT

 Deschutes Water Alliance

·        A grant was filed for Water Bank capitalization under the new Oregon Water Supply and Conservation Initiative.

·        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

·        Cooperative evaluation of potential 50-100 acre re-regulating structure on Central Oregon Canal with Audia-Gordon LLC.  Some geotechnical work and elevation specifications were conducted last year with a thorough analysis to be scheduled upon Board approval.

Status – Modified proposal approved by COID Board in March meeting with work to commence in April after irrigation season begins.

Real Estate

·        A Quiet Title action was successfully resolved in COID’s favor 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.  The Board approved proceeding with completion of all survey work after reviewing the updated appraisal report.  The land has been officially declared surplus by the Board.

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 along with 215 acres owned by Deschutes County within the Redmond UGB and adjacent to the COID 250.

Status – In Process. Joint meetings being conducted with City of Redmond, Deschutes County and COID

·        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.

Status – In Process

·        Deschutes County is moving forward on the 19th Street extension south of the Fairgrounds all the way to the Deschutes Market Junction.  Right of way will need to be acquired off of two COID parcels. 

Status – Initial conversations with Deschutes County staff

 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.  Redmond and COID met in December and agreed to schedule regular coordination meetings going forward, likely on a semi-annual basis.

 ON THE RADAR SCREEN

            ·        Bull Trout Draft Recovery Plan

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