MANAGER’S REPORT

12 May. 2009

Spring time in Central Oregon is anything but predictable.  Temperatures were running into the mid-eighties one week then turning into very wet and very cool the next was our situation this past month.  Above average precipitation throughout the District for several days was welcomed and diversion levels from the Deschutes were reduced and no longer required pulling storage from Crane Prairie to meet demand.  NUID experienced such a reduction in demand due to the rain that they closed their canal for several days.  Combining the precipitation and reduced outflows from Wickiup has actually allowed the reservoir level to increase.

That is the good news – the bad news is that COID and the other irrigation districts in the Deschutes Basin Board of Control were not awarded the applied for Habitat Conservation Plan (HCP) grant.  The grant request was for the necessary funding to carry on the HCP effort past September of this year.  This was obviously disappointing news that may negatively effect the progress of the last two years.  Increased grant requests around the country and reduced funding availability for this program contributed to the situation.  COID and the DBBC is working with our Congressional delegation and State and Regional officials from the US Fish & Wildlife Service for alternative funding to keep the process going forward.  The next grant filings can take place in September 2009 for awards expected in the spring of 2010. 

The National Oceanic and Atmospheric Administration (NOAA) announced at the HCP Stakeholder meeting held in Prineville on April 27th that a draft 10j Rule is expected to be issued early this summer. If successfully implemented, this rule will classify the reintroduced steelhead as “experimental, non-essential” but still be listed as threatened. While the steelhead may carry experimental, non-essential status, it is likely only for an intermediate term of time.  This time will be critical for the irrigation districts to continue pursuing conservation projects and mitigate any potential negative effects their diversions may have on the steelhead.     

The federal economic stimulus package picture continues to develop for COID’s Juniper Ridge Piping and Hydroelectric Project scheduled to begin construction in October 2009.  Several other irrigation districts in Central Oregon also have good chances of their projects receiving some funding also.  The planning and work on water conservation projects over the past few years allowed the irrigation districts to be fully positioned with readily available projects eligible for stimulus funding.  The recently approved federal appropriations of nearly $400,000 for the Deschutes Project will inject available funding for further conservation work.  The Deschutes Basin Board of Control has requested to our congressional delegation for a $5 million appropriation for FY 2010.

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 has until next week for all bills to have passed out of their initial committee or they are “dead”.  The budget shortfall in funding along with a number of other issues are driving a fast pace for the legislature.  There are many bills dealing with water and land use still alive and still receiving the attention of COID and the other irrigation districts of the Oregon Water Resource Congress.

The Juniper Ridge Hydroelectric and Piping Project is continuing on schedule.  May 1st was the deadline to receive bids on the project.  As anticipated a total of five (5) bids were deemed complete and officially received.  Review of the bids has commenced with a ranking of the bids completed.  It is anticipated that a project team will be officially selected by the Board of Directors by May 15.  Construction will begin in early October 2009 with completion of the piping by April 2, 2010 and the hydro facility up and running by late summer 2010.

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 nearing resolution with the land owners preparing to modify the gates to comply toCOID standards and policy.

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

·        Pre-Proposal meeting with potential bidders on March 10

·        Submitted grant application to OWEB with Deschutes River Conservancy for $3.75 MM.

·        ODOE Small Energy Loan Program application submitted along with pursuit of commercial and federal loan guarantee financing.  ODOE loans carry only a revenue obligation of the project and can not encumber patron assessments.

·        Business Energy Tax Credit application submitted in early February

·        DEQ State Revolving Fund application accepted. Ranked #5 project in state for funding – funding request $5million. $2.5 MM in grant and $2.5MM in 20 year 0% interest loan.

·        FERC and State permit application to be submitted after natural resource consultations completed in late April

·        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.

·        Federal economic stimulus funding thru Bureau of Reclamation request of $5 million pending. Notification expected early summer.

Status – proceeding

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.  Senate Bill 743 has a scheduled hearing on April 14. COID testified in support.

·        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 HB 2879 with first hearing completed and amendments pending.

·        HB 2227 dealing with Destination Resorts passed committee to be scheduled for House vote.  Amendment 7 was also passed by committee and prohibits Destination Resorts within irrigation district 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 are still proceeding on filing for rezoning changes of the 250-acre parcel in east Redmond. The partition application filed last year is expected to be finalized this coming month, but 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