MANAGER’S REPORT

9 June. 2009

Irrigation season is in full swing with spring rains and cooler temperatures tapering off peak irrigation demand in the past week.  Wickiup Reservoir gained acre feet of storage and Crane Prairie storage is still relatively high. 

The Juniper Ridge project received formal approval for $17 million of construction financing from the Oregon Department of Energy’s Small Energy Loan Program (SELP).  While the project will likely not need to draw on that much funding it serves as a fundamental commitment to the project.  In addition, the Oregon Watershed Enhancement Board (OWEB) unanimously approved $1 million on June 2nd.   A second $1 million request is pending for later in 2009.  Weekly project status meetings are being held with the Slayden Construction project team to complete final project designs and review and monitor project progress. 

The administrative beginnings of the land exchange with BLM endorsed within the Public Lands Bill creating the Badlands Wilderness has barely begun.  The process of the exchange may take up to two years for completion pending surveys and other transaction details.  This effort will be the responsibility of BLM.

The State legislature continues its deliberations and is nearing the close of the session.  There is still considerable legislative activity of interest to COID including bills involving water issues, land use, destination resorts and the state budget.  The budget for the Oregon Water Resources Department will likely see funding from increased fees involving most applications dealing with water rights. 

Of particular interest is a bill (HB 2003) reintroduced by Rep. Judy Stiegler at the request of COID and the Special Districts Association of Oregon (SDAO) addressing the issue of eliminating liability to land owners and easement holders whose lands are used by people for recreation including trails.  Rep. Stiegler testified on behalf of this bill last week along with representatives from COID and SDAO.  HB 2003 is scheduled for a House vote next week. 

 

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

·        Deschutes County has begun the official review of their Comprehensive Plan.  COID and the fellow members of the DBBC are actively participating in this review and will be providing the County formal comments in the coming months.

·        The Deschutes Water Alliance (DWA) is moving forward with Water Bank transactions and planning for 2009. There is movement to expand active participation of the counties and elected officials and to formalize the partners’ relationships with memorandums of understanding or other forms of agreement for existing and future coordination on regional water issues.

·        Kevin Crew with Black Rock Consulting is facilitating the process for a 20 Year District Capital Improvement Plan (CIP).  Preliminary evaluations and data gathering are already underway with staff coordination and information on the entire irrigation system.  A draft concept is anticipated for Board discussion this winter.

·        COID and four other irrigation districts are continuing their work with City of Bend staff on drafting a Coordination Agreement.  The final Coordination Agreement will address many issues relating to a hopefully solid relationship with the City of Bend.  Issues include infrastructure planning, mitigating development impacts to irrigation district facilities, easements and right-of-ways, and overall coordination of activities. 

·        COID has re-engaged Pacific Power in conversations over termination of their lease and hydro facility at Cline Falls.  COID is still evaluating pursuit of licensing thru FERC and the State of Oregon if it wishes to generate hydroelectricity at that site.  Analysis and evaluation of the costs of licensing are currently under review and contact has been positive with DEQ and ODFW for the project.

·        COID is coordinating with BLM staff on operational issues involving BLM owned and COID owned lands and where COID has federal 1891 Rights of Way.

·        COID is coordinating discussions between the US Forest Service and the Bureau of Reclamation on clarifying operational boundaries at the Crane Prairie Dam.

The challenges presenting themselves:

·        The issue of the gates placed without COID approval on the canal ditch road in southeast Bend is fully resolved with the land owners.  Gates were installed in compliance to COID standards and policy under an enforceable agreement.

·        Issues continue to arise with patrons and the delivery of water to parcels past the District’s Point of Delivery.  The District is evaluating its existing statutory authorities and reviewing policies to assist in resolving these issues.

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

·        Weekly project status meetings with contractor team

·        OWEB approved $1 MM project grant

·        Received $250,000 as restoration grant from Pelton – Round Butte Restoration Fund provided by Portland General Electric and the Confederated Tribes of Warm Springs.

·        ODOE Small Energy Loan Program approved $17 million in project financing.  ODOE loans carry only a revenue obligation of the project and can not encumber patron assessments.

·        Business Energy Tax Credit application near pre-certification.  Communications with ODOE staff indicate full BETC credit to be available to COID.

·        DEQ State Revolving Fund announced Juniper Ridge as a special green project and to receive $2.5 MM in grant and $2.5MM in 20 year 0% interest loan.

·        FERC conduit exemption application submitted with full NEPA and state and federal agency support.  Application to the State of Oregon pending final review for submittal.

·        Grant request of $5 million submitted to the US Bureau of Reclamation under the Water Conservation Initiative program funded by the federal stimulus package.

·        City of Bend Juniper Ridge Management Advisory Board agreed to coordinate and plan with COID on their joint Juniper Ridge activities.  Bend will participate in some of the cost of burying the pipe and execute an Intergovernmental Agreement with COID.

State Legislature

·        Legislative effort to make renewable energy projects completed before 1995, including COID’s Siphon Power Project to be eligible for Renewable Energy Credits (RECs) under the State’s Renewable Portfolio Standard. 

·        Legislative effort to eliminate possible liability issues with the recreational use of easements and rights of way.  Original legislative concept proposed by COID. Bill introduced originally as HB 2879 is now HB 2003 and reintroduced passing House Rules Committee.

·        HB 2227 dealing with Destination Resorts passed committee to be scheduled for House vote.  Amendment 15 has been added to the bill and allows irrigation districts the latitude of approving whether or not to allow Destination Resorts within their boundaries.

·        SB 788 will implement fees on all groundwater wells with a permit or exempt. In addition, a fee will be placed on surface water certificates to assist in funding critical functions of the Oregon Water Resource Department (OWRD).

Status – all bills proceeding

 Deschutes Water Alliance

·        Draft memorandum of understanding under review by DWA members.  It is expected that all three counties, cities, irrigation districts and others will be asked to consider signing the MOU and become engaged in the regional water discussion and planning efforts.

·        Status – In process

David Evans & Associates

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

Status – In Process with no change in last month

Real Estate

·      One 20 acre parcel near Deschutes Market Road and Hwy 97 was listed for sale through Steve Scott Realtors.  Listing, as per District policies, was at the recently updated appraised value.  No offers have been received to date.  The remaining 20 acre parcel was not listed.

Status – In Process with no change in last month

·      COID and the Redmond School District filed and received approval of a partition plat to the City of Redmond.  Traffic issues in Redmond are effecting the timing of the zoning change possibility and execution of a sale to Desertscape.  COID is involved in the City of Redmond’s Eastside Framework Plan addressing these issues along with Deschutes County and the Redmond School District.  Significant funding at a local, state and possibly federal level are being evaluated.

·        The cities of Redmond and Bend along with other jurisdictions are pursuing a bill in Salem to adjust the traffic loading rules that may facilitate development for east Redmond and north Bend.

Status – In Process. Joint meetings being conducted with City of Redmond, Deschutes County, COID, Division of State Lands, Oregon Department of Transportation and the Oregon Transportation Commission.

·        A Conditional Use permit was received for COID owned lands along Teal Road pending county road improvements.  Once completed the Board will evaluate for declaring surplus depending on market conditions and financial requirements of the District.

Status – In Process with no change in last month

·        Presentation and formal proposal prepared for the annual Mount Bachelor Village Homeowners Association annual meeting for April 25 was cancelled.  Efforts to address COID request on scenic easement to allow for development of limited acreage will continue.

Status – On Hold

 Development 

·       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

·        Pursuit of funding designations with Bonneville Power Administration for conservation projects above Pelton Round Butte complex