MANAGER’S REPORT

11 October. 2011

Irrigation season is winding down and obviously the weather is starting to get quite cool with some precipitation.  The District is still intending to continue the irrigation season to October 17 for the Central Oregon Canal and October 19 on the Pilot Butte Canal.

Water levels at Wickiup and Crane Prairie are gaining water with high levels and will very likely fill before next irrigation season.  It is anticipated that there will be above minimum flow releases from the reservoirs throughout the winter which may provide for hydroelectric power generation at the Siphon Power Plant and beneficial habitat in the upper part of the Deschutes Basin.

Congressman Greg Walden’s bill “The Central Oregon Jobs and Water Security Act” (HR2060) passed all required House Committees and was passed to the full US House of Representatives for a pending vote as yet unscheduled.  This bill is involving several issues in the Crooked River valley and is supported by the Deschutes Basin Board of Control.

The Business Energy Tax Credit (BETC) for Juniper Ridge is being actively promoted to the investment and business community in Oregon. Recent legislative and administrative rule changes have occurred in the last few months. An entity that has Oregon state income tax liability for tax years 2011 going forward is eligible and can contact COID directly for information.  The amount of funds that will be realized to COID from the BETC is $5.3MM and will be used to pay down existing debt balances on the project.

The Siphon Power Project (SPP) and the Juniper Ridge Hydro have received full certification by the California Energy Commission. COID is now eligible to sell the Renewable Energy Credits (RECs) generated by our renewable energy plants in 2011  into the State of California. Final rules for the sale of out-of-state generated RECs into California are expected to occur possibly by year end 2011.  COID is coordinating with other entities within Oregon on this matter and has started receiving inquiries on REC availability.

The SPP and Juniper Ridge are now officially generating RECs for the Oregon RPS effective January 2011.

There will be a full Deschutes Water Alliance stakeholder meeting at the Deschutes County Services Building at 9:30am on November 1.  DWA stakeholder meetings are open to the public.  Updates are going to be provided on the issues and possible solution paths involving water in the four sub-basins of the Deschutes.

COID and Natel’s application to the US Department of Energy (DOE) was not awarded in the first round announcement out in mid-September.  Natel and COID are still working together on finalizing project design and plan on actively soliciting grant funding for the project from DOE’s projected second round of announcements planned for later this year. The proposed project for a hydro on the NC-2 falls was well rated and ranked very highly for consideration.

Opportunities

  • Approved 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.  Next steps will be to meet with ODFW staff on certain elements of the design.
  • The COID and BLM land exchange in the Badlands area east of Bend is still working its way toward finalization. It is anticipated that completion will be in 2012.
  • COID is engaging in discussion with PacifiCorp with the Cline Falls facility on 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 group of these stakeholders including Bend Parks, City of Bend and PacifiCorp has 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. This effort will take place during 2011 and likely beyond. The DBBC is active and regularly participates in these discussions.
  • The City of Redmond Development Commission has requested comments from COID on their draft Strategic Plan. District staff are preparing comments for submittal to Redmond in September.

Challenges

  • Water right confiscation notices were mailed out to several patrons informing them that there is only one year left to prove up their water rights or they will have to be relinquished. District staff is continuing to work with the affected patrons on their water plans for next year. Reminder – any water rights eventually confiscated by the District are awarded to qualified patrons with an impartial lottery conducted each spring before irrigation season.
  • 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

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 – Paused.  ODOT and the City of Bend have executed an agreement this past month that may facilitate movement of a similar agreement for Redmond. Legislation has been filed in Salem that may further produce positive effects for potential development. [See discussion above]

* COID participated in a recent Redmond Development Commission meeting on a proposed Strategic Plan for the City of Redmond which includes several items of interest to COID, including trails, transportation and system infrastructure.

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

Development 

  • COID, Arnold, Swalley 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 2011.  NUID has joined the efforts already underway.

Status – Ongoing. 

 

ON THE RADAR SCREEN

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