MANAGER’S REPORT

12 January. 2010

The District enters the year with no changes to the patron annual assessment and the Operations & Maintenance (O&M) budget in balance with an estimated cash contribution of $287,258 from the Siphon Power Project (SPP) and cost control measures implemented by the District. This marks another year of cash proceeds from SPP offsetting assessments. Estimated assessment income is only $2,001,557 of the total O&M budget expense of $2,381,161. Overall the assessments cover 84% of district expenses. Assessments would need to be about 19% higher without SPP and other income sources from fees.

The Juniper Ridge Project continues to be on schedule and on budget. Over 7,000 feet of 9 foot diameter steel pipe has been laid and construction of the hydro facility building is about to begin.

The Wickiup and Crane Prairie reservoirs are filling nicely and should be full before the beginning of irrigation season. While the winter has yielded a lower than average snowpack thus far, there have been consistent weather fronts bringing moisture to the Cascades and the region overall. This precipitation coupled with above average flow releases from Wickiup has allowed the SPP to generate some electricity during most of this fall and winter. The above average releases from Wickiup are a result of close management and coordination between NUID and the State Watermaster.

The Oregon Legislature will be having a special session in February. In addition to budgetary issues there will likely be some legislation that may impact or involve COID and other fellow irrigation districts.

Opportunities

· COID along with NUID and Swalley are conducting negotiations with two energy companies interested in implementing small scale hydro at the North Canal Dam in Bend. This process will be ongoing over the next few years.

· The Habitat Conservation Plan is continuing under an extension of its existing grant from the US Fish & Wildlife Service through Oregon Dept of Fish & Wildlife. 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). The USFWS is expected to release a new CHP before the end of January.

· Deschutes County is proposing new rules for Destination Resorts. Hearings are scheduled with the Commissioners on January 20at 10am and 6pm.

· Deschutes County has begun the official review of their Comprehensive Plan. The initial hearings have been conducted by the Planning Commission and upon their completion will forward a recommended plan to the County Commissioners. The process will likely take up most of 2010.

· COID and BLM have begun the anticipated two year process to complete the land swap authorized by Congress in the public lands bill passed this year in Badlands area east of Bend.

· 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.

Challenges

• 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

· See separate Project Update report

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.

Status – Paused. No joint meetings have been conducted with City of Redmond, Deschutes County, COID, Division of State Lands, Oregon Department of Transportation and the Oregon Transportation Commission for several months.

· 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. Successful coordination and planning on Odem-Medo improvements most recent example of effort.

Status – Ongoing.

 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