MANAGER’S REPORT

10 January. 2012


We enter 2012 with very mild and dry weather compared to an average winter in Central Oregon. While winter still has a few months to go it would be nice to get more precipitation. Weather forecasts still have us in a La Nina and with increasing precipitation and lower temperatures but will have to see it to believe it at this point. Meanwhile the reservoirs are filling fine and hydroelectric production continues at the Siphon Power Project at very high levels.

The Board has indicated that there will be no change in the assessment charges for 2012 and will be finalized at the January Board meeting. This marks the fourth consecutive year of no increase in the assessment, and since 2004 (9 yrs) there has been only one increase and that was in 2008. COID managed its expenses well in 2011 and came well under budget to help ease any pressure from increased costs into 2012.

The maintenance schedule is very full for this winter, as always, with over 400 miles of canals and laterals and over 3,000 deliveries to maintain. All of the projects are routine this season with ditch cleaning, headgate repairs and weir replacements the bulk of the work to be done.

The Habitat Conservation Planning effort is set to begin its fifth year with all member irrigation districts of the Deschutes Basin Board of Control (DBBC) irrigation districts and City of Prineville continuing to participate. While work will continue in this effort for several more years, the HCP has received its 3rd grant from the US Fish & Wildlife Service that carries funding through 2012 and sets the framework for a draft Habitat Conservation Plan in 2013-14. Investment to date by the DBBC, Prineville and the Federal Government is slightly over $2.5 million to date with the vast majority of the dollars coming from the HCP grant funding.  Another important milestone should occur in the first half of 2012 with NOAA anticipated to issue its final 10j Rule designating the reintroduced hatchery steelhead “experimental and non-essential”.  This will be the first ever 10j rule issued by NOAA in the entire U.S..

The Business Energy Tax Credit (BETC) for Juniper Ridge is being actively promoted to the investment and business community in Oregon. A company or individual that has Oregon state income tax liability for tax years 2012 going forward is eligible and can contact COID directly for information.  There is a 33.5% discount in the purchase price of the tax credits yielding near a 15% return to the purchaser. In other words, a $1.00 tax credit can be purchased for $.665 cents.


Opportunities

  • Evaluation of district infrastructure to reach potentially “new” lands is underway with preliminary indications of some possibilities and interest in the Terrebonne area. Expansion would take place with transferring existing water rights or potentially from conserved water projects. Further refinement of the Terrebonne possibility is planned this winter.
  • The NUID Supply Initiative is presenting COID with possibilities of funding for system improvements of either piping or lining that will result in the transfer of all or part of the conserved water generated. COID has many opportunities for such projects and will be further evaluating and refining these projects going forward for either possible transfer to NUID or for use by COID. COID will deliver any transferred water to NUID via the Pilot Butte Canal.
  • Follow up discussions were held with ODFW on the design of the fish ladder for the North Canal Dam. Oregon Watershed Enhancement Board (OWEB) funding is now available to proceed with the design on the fish ladder for the North Canal Dam. COID, NUID, and Swalley with the Upper Deschutes Watershed Council (OWEB agent) have finalized an agreement to formalize the grant and work product.  
  • The COID Board has determined to withdraw from the BLM land exchange in the Badlands area east of Bend. This is due to higher than expected costs necessary to proceed and finalize the BLM land exchange. There is the possibility that BLM will acquire portions of a few parcels but that will be up to BLM to determine and finance on their own behalf.
  • COID is engaging in discussion with PacifiCorp regarding the Cline Falls facility and the next steps to clarify the conditions for the lease termination on that site for March 2013. COID is evaluating the costs for retrofitting and upgrading the facility to potentially pursue FERC licensing for a hydro project at this location and filed a 6 month project update with FERC in early September.
  • The DBBC has been a member of a group of stakeholders formed to evaluate options for dealing with the building sedimentation in Mirror Pond located in Bend. A smaller management group of these stakeholders including Bend Parks, City of Bend and PacifiCorp hired a project manager to assist in the effort of developing a community based plan to develop options and gather funding for this Mirror Pond issue. After evaluating proposals received for the continuation of this work it was determined by the management group that there was no available funding to proceed further and the pursuit of a possible bond measure to be considered. The DBBC will continue to monitor and evaluate the process as it moves forward in the future and carries no financial responsibilities to date.
  • COID conducted a limited survey this past summer of potential patron locations eligible for Energy Trust of Oregon incentives for either micro-hydro installation or older pump replacement. Work is still being done by ETO and COID staff in this evaluation of eligibility and functionality. Patron locations had to be within the Pacific Power service area and have a minimum pump size to be included in the survey. It is anticipated that this evaluation will be completed before the end of February.

 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.
  • There are continuing issues with proper safety and normal operations involving heavy use of COID’s ditch roads by the citizens of Bend, particularly in the District owned parcel in south Bend near the SPP. COID has communicated these concerns to Bend Parks & Recreation and has recommended closure of some of the trails utilized. This will likely be an ongoing issue with Bend Parks in 2012.


STATUS 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 – No Change

  • 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 therefore any potential sale to an interested buyer.  

Status – Evolving.  Solutions are being evaluated by the City of Redmond, Deschutes County and COID to enable development to proceed in eastern Redmond. Possible solutions may be along the lines of the agreement reached by ODOT and the City of Bend, or with possible legislation in Salem.

  • Occasional inquiries on various District owned parcels are directed to Real Estate Agent of Record – Steve Scott Realtors.

  Development 

  • COID, Arnold, Swalley , NUID and Tumalo are in active discussions with the City of Bend to implement the recently executed MOU and pursue an Inter-Governmental Agreement by the end of April 2012.  

Status – Ongoing.  

ON THE RADAR SCREEN

  • Federal legislation and regulation of renewable energy projects
  • Federal regulation of wetlands and jurisdiction of irrigation canals