MANAGER’S REPORT

8 September. 2009

The irrigation season is proceeding well into the Labor Day weekend with definite cooling and possible rain in the forecast.  This weather change will coincide with the shoulder season of the irrigation diversion totals reducing gradually into the fall.  As many patrons on the Pilot Butte Canal (PBC) are aware through individual notices and in the newsletter, the irrigation season will end October 5 due to the Juniper Ridge piping and hydro project with the CO Canal turning off the next week.  COID staff has received comments and concerns from several patrons on the PBC regarding their water needs for stock during the winter.  COID staff and board members are actively working with these patrons on solutions and they will be implemented.

There are indications that an El Nino weather pattern could be developing for this upcoming winter.  Typical El Nino weather will be rather dry in the first half of the winter and then very wet weather in the later half.  Average winter weather will sufficiently replenish the reservoirs so it will be a wait and see as usual as to how full the reservoirs and winter flows in the Deschutes River will play out.

 The Juniper Ridge Pipeline and Hydroelectric Project is proceeding through its final financing and contracting stages.  Oregon Department of Energy (ODOE) is preparing the final closing documents for the project’s construction financing and is scheduled to close on September 9.  The Oregon Department of Environmental Quality funding documents for the $4MM of stimulus funding are anticipated to close around September 11.  Oregon Watershed Enhancement Board staff has completed the agreement with the District and the Deschutes River Conservancy for $1MM of grant.  In addition, the Bureau of Reclamation will be providing $1MM of stimulus funds through the Deschutes River Conservancy.  Total grant funds and incentives confirmed to be received for the Juniper Ridge Project now total $11.7MM.  The remaining costs of the Project are to be facilitated through the Small Energy Loan Program at ODOE.  At this point, all project procurement, design, financing and staging is on schedule for construction to begin on October 6.  All patrons on the Pilot Butte Canal should have received a postcard notice that there will be no winter stock runs this year.  Patrons with no alternative water sources for their livestock are asked to contact the District office.

 

 

 

 

 

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 last month.  It is anticipated to know the results of this grant request 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 opportunities pursued this past month include, but are not limited to:

·        The City of Redmond approved a Trails Agreement with COID for trails within the District’s right of ways in the Redmond area.  Development of trails is dependent on the City receiving land owners’ approval.

·        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.

·        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.

 

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

·        Weekly project status meetings with contractor team

·        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 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.

·        COID’s grant request of $5 million submitted to the US Bureau of Reclamation under the Water Conservation Initiative program was denied, but will be receiving $1 million of these funds through the Deschutes River Conservancy

·        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.

 

 

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 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