MANAGER’S REPORT

13 September. 2011

The weather is staying warm but irrigation demand is gradually declining in the area and within COID.  Water levels at Wickiup and Crane Prairie are high and will remain so into the coming winter.  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. 

The Deschutes Basin Board of Control (DBBC) and the City of Prineville received notice that the Habitat Conservation Planning (HCP) grant request of $407,000 for 2012 was awarded by the US Fish & Wildlife Service. This was the only HCP planning grant awarded in the State of Oregon and represents the third grant received by the DBBC and Prineville.  Federal funding of this program may be reduced in the future due to budgetary adjustments and the focus is on completing as much work as possible under this grant to have the critical mass of information necessary to keep the HCP moving forward with reduced or eliminated funding in the future.

Congressman Greg Walden’s bill on the Crooked River (HR 2060) passed its first hurdle with a unanimous vote out of a House sub-committee and is expected for markup and a possible vote on the US House floor this fall. The DBBC continues to be very involved with the efforts in support of the bill.

The Business Energy Tax Credit (BETC) for Juniper Ridge is being actively promoted to the investment and business community in Oregon. An entity that has Oregon state income tax liability for tax years 2012 going forward is eligible and can contact COID directly for information.  The amount of funds that will be realized to COID from the BETC has actually increased from $4.2MM to $5.3MM due to a recent Oregon Department of Justice opinion. These amounts will be used to buy-down the existing obligation to ODOE under the terms of our Small Energy Loan agreement. It is required for COID’s BETC to be sold before the end of 2011 for eligible use for 2012 going forward. 

The Siphon Power Project and the Juniper Ridge Hydro have received preliminary approval for certification by the California Energy Commission. Once certified COID will be eligible to sell the Renewable Energy Credits (RECs) generated by our renewable energy plants 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.

COID has filed the necessary paperwork with the Oregon Department of Energy to officially register SPP and Juniper Ridge as officially generating RECs for the Oregon RPS.

There is increasing focus in Central Oregon for identifying available lands of large acreage ready for development by relocating companies. The tri-county area is mobilizing the packaging and marketing for relocation opportunities in the area and the COID property of 200 acres east of Redmond is in the mix. The tri-county area has barriers to entry with available electricity supply and a few other infrastructure related issues but is actively addressing these in mutual cooperation. A recent study was completed discussing these issues in detail and is available on the web. COID intends to be an active participant in this process.

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, Swalley and ODFW along with the Upper Deschutes Watershed Council (OWEB agent) will be preparing an agreement to formalize the grant and work product likely by September.
  • 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

  • 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]

  • 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