Manager's Report

10 August. 2010

Hot, dry and sometimes windy – normal Central Oregon summer is here. The District has been running at full water right for several weeks and will continue until the weather changes substantially.

Wickiup and Crane Prairie are at lower levels than last year at the same time and reflects the lower natural flow availability to the junior water right districts.  It is likely that a very good winter will be necessary to refill both reservoirs for next year.

The Juniper Ridge Hydro is still on schedule and on budget.  The hydro turbine is on-site and installed with the generator scheduled for installation in mid-August. The interconnection work with PacifiCorp is proceeding on schedule and will be nearly complete short of the commissioning by the beginning of September. On line generation is still anticipated to be in late September to early October.

Hearings on the new State of Oregon Business Energy Tax Credit Program (BETC) are scheduled for this next month and COID is planning on actively participating in the process.  There is still no foreseen impact to the tax credits involved with the Juniper Ridge Hydro project.  There will be, however, an impact for future hydroelectric projects by the District unless the Legislature decides to update the program in the next legislative session in 2011.

A Working Group meeting of the Habitat Conservation Planning effort (HCP) was conducted last week near the PGE/CTWS Pelton Dam complex. Issues discussed were the identification and prioritization of needed studies to be conducted by the hired biological consultants going forward. Progress is step by step but is going forward.

Opportunities

  • Preliminary design and cost estimates have been completed for Juniper Ridge Phase II done in cooperation with the Energy Trust of Oregon and conducted by Black Rock Consulting. Next steps will include discussion with potential funding sources similar to Juniper Ridge Phase I. Construction is likely within the next 2-3 years and would extend the piping of Phase I upstream to approximately Old Deschutes Road on the Pilot Butte Canal.
  • Discussions and preliminary evaluation of the Natel Energy Hydroelectric Machine technology are progressing. COID will be actively involved with continued evaluation of project costs and several suitable sites throughout the District in the coming year.  Natel is anticipating receiving a US Dept of Energy grant to extend their technology which would increase the likelihood of one of their machines to be utilized within COID territory.
  • 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.
  • 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 the Badlands area east of Bend.  A MOU detailing the mandatory cost share of the related expenses is on the Board agenda for the June meeting.
  • 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 through 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.  There has been a private company that has filed a preliminary permit application with FERC for the COID Cline Falls site.  COID is evaluating the options on how to deal with this filing and will be addressed as a separate Board agenda item.

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

  • Pleasant Ridge road is being proposed by ODOT to the Deschutes County Commissioners for closure at the north end where it intersects with Hwy 97.  There is no foreseen negative consequences to the real estate owned by COID in that vicinity.

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.  Proposed expansion and improvements in Redmond on South Canal will require coordination.

Status – Ongoing.