MANAGER’S REPORT

12 February. 2008

Winter stock runs for early February have been delayed due to weather conditions.  A slight warming trend mixed with some rain this week should provide an opportunity to do the runs for each canal in the next two weeks.

Snow pack is now 138% of average for this time of year, and both Wickiup and Crane Prairie are projected to fill before irrigation season begins.  There has obviously been a lot of moisture since December throughout the basin and if it continues the upcoming natural flows should improve over last year into the summer.  In addition, this situation has allowed more water to be released out of Wickiup (125cfs) increasing Upper Deschutes River flows to address environmental habitat concerns.

While the recent winter weather has impacted the efficiency of the planned maintenance work, projects are still ongoing as intended with full crews.

The City of Bend had a main water line break near the Pilot Butte Canal this past week.  Considerable excavation work had to be done for the repairs which were very close to the culvert pipe carrying the Pilot Butte Canal underneath the Bend Parkway.  COID personnel were notified and supervised the work that was performed.  The waterline repair had no negative impact to the District facilities.

 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.

·        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 be voted on by the Senate in February.  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.

·        Met with Crooked River Watershed Council personnel this past month to begin the process of initiating a preliminary study with COID of water entry and control in the Dry Canyon.  This collaborative effort is intended to form the basis for a comprehensive approach to dealing with the water flows that eventually end up in the Crooked River.  These flows are designated as a Non-Point Source of pollution under the Clean Water Act and need to be addressed in the future, particularly with the upcoming reintroduction of Steelhead in the Crooked River.

o       COID is working with a private landowner on a water delivery and retention structure in the Dry Canyon.  Landowner has been provided expense estimates of the project. COID will provide some in-kind in the form of on-site observation and project coordination.

·        Meeting with the Energy Trust of Oregon (ETO) Board of Directors scheduled for February 13th in Portland regarding a $1MM grant request for the Juniper Ridge Hydro Project.  Unanimous approval from the ETO Project committee was secured in late January.

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. 

·         A report on the Deschutes Basin Mitigation Program (provided in Board packets) will be presented to the Oregon Water Resource Commission later this month (Feb 29), and stakeholders from the Deschutes Basin have been invited to provide comments (also included in the Board packet).  A quick summary of the report notes no negative flow impacts to the Middle or the scenic protected Lower Deschutes River, and in fact show flow improvements.  The report also documents that groundwater applications received by the OWRD exceeds the programs cap of 200 cfs.  At this point, applications received above the 200 cfs cap are being accepted but not acted upon by OWRD. 

·        HCP group on Steelhead Reintroduction is scheduled to meet on March 10th.  Status on HCP grant application is still pending with expected results in late spring.

o       Met with USFWS Portland Office personnel to discuss DBBC HCP effort and discussion of work underway on process. 

STATUS REPORT

 Deschutes Water Alliance

·        COID and Swalley Board of Directors approved the 2008 targets for the DWA Water Bank.

·        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 – Proposal before Board February

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 not been officially declared surplus by the Board at this point.

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. 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

 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.