MANAGER’S REPORT

13 October. 2009

The Pilot Butte Canal (PB) was turned off on Monday October 5th with the Central Oregon Canal (CO) to be off on Wednesday October 14th.  All patrons on the PB had been notified of the earlier than usual turn off due to the construction of the Juniper Ridge Project.  Stock water runs on the PB will not occur for the entire winter season with the normal four stock runs scheduled for the CO and as always dependent on the weather. 

Crane Prairie Reservoir storage is nearly the same as last year and is expected to fill to 100% with an average winter.  Wickiup Reservoir is slightly below the level of last year but is also expected to fill.  The likelihood of above average winter flows in the Deschutes River is looking good and the Siphon Power Project will likely be producing in surplus again for 2010.

The Juniper Ridge Pipeline and Hydroelectric Project broke ground on Tuesday October 6th with excavation and pipe staging underway.  On October 12 an official ground breaking ceremony was held on the site of the future hydro facility with guests including Congressman Greg Walden as the key note speaker, representatives of the State of Oregon’s Departments of Energy, Water Resources, Environmental Quality, Oregon State Senator Chris Telfer, State Representative Judy Stiegler, Deschutes County Commissioner Alan Unger, COID board members and employees, managers from DBBC districts with members of the project contractors Slayden Construction, Jack Robinson & Sons, Sunrise Engineering, Malm Engineering and Black Rock Consulting.  Funding partner representatives from the Oregon Watershed Enhancement Board, Deschutes River Conservancy, US Bureau of Reclamation, The Energy Trust of Oregon, Portland General Electric and the City of Bend also attended.

The Habitat Conservation Plan is continuing under its existing grant from the US Fish & Wildlife Service through Oregon Dept of Fish & Wildlife.  The DBBC has received an important approval for a reallocation and extension of spending deadlines in order to continue biological work past September 2009 and keep the HCP effort moving despite not receiving a grant for the HCP for the next federal fiscal year.  A grant application for roughly $400,000 of HCP funding was filed and an announcement of award is expected in the spring of 2010.

 

 

 

 

 

A federal court recently issued a remand to the US Fish & Wildlife Service on the 2007 Bull Trout Critical Habitat Plan (CHP).  COID and the Deschutes Basin Board of Control is evaluating the remand and preparing for filing comments later this fall.  The DBBC was very involved in the last CHP process and is another species involving the Endangered Species Act and the Deschutes Basin.

The Deschutes Water Alliance (DWA), originally formed in 2004 for the purposes of a US Bureau of Reclamation Water 2025 challenge grant, held a meeting of expanded membership on October 12th.  Members now include several irrigation districts of the DBBC, Deschutes-Crook-Jefferson Counties, Cities of Bend-Redmond-Sisters-Prineville, the Deschutes River Conservancy, Avion Water Co, Deschutes Valley Water, and representatives of various federal and state natural resource entities.  The meeting was held to begin the process of information and awareness of regional water related issues.

 

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.

·        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:

·        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.

·        Persistence of patrons failing to beneficially use their water either due to economics, absentee ownership, or mismanagement resulting in potential confiscation by the District as the only viable option to prevent forfeiture.

 

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

·        Weekly project status meetings with contractor team

·        Hydro site parcel acquired from Oregon State Parks Dept

·        The Power Purchase Agreement with PacifiCorp was finalized and executed. The Interconnection Agreement is proceeding on schedule and likely to be ready for signature this fall.

·        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 construction financing with $12 million in long term financing.  ODOE loans carry only a revenue obligation of the project and can not encumber patron assessments.

·        Business Energy Tax Credit application has received its necessary pre-certification.  COID is now eligible to market the tax credits to individuals and entities that have Oregon State Tax obligations.

·        DEQ State Revolving Fund announced Juniper Ridge as a special green project and to receive $2 MM in grant and $2MM 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.

 

 

·        Secured $1 million of US Bureau of Reclamation stimulus funds from the DRC.

·        Energy Trust of Oregon grant for $1 million

·        The City of Bend & COID Intergovernmental Agreement was executed this past month, and represents coordination on many aspects of the Juniper Ridge property owned by Bend and managing the issues with COID and its PBC including a payment of $278K for burying pipe through City owned property.

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 affecting 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.

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

 

 

 

 

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