MANAGER’S REPORT

9 March. 2010

The winter is almost over and irrigation season will begin in April.  The snowpack moisture content is at 56% of average but both Wickiup and Crane Prairie Reservoirs will be full.  The below average snowpack will diminish natural flows in the Deschutes and it is anticipated that NUID and Arnold will be relying on storage for operations beyond the levels of the last few years. Water management will be key this summer for all irrigation districts.

The Juniper Ridge Project continues to be on schedule and on budget.  All 13,750’ of 9 foot diameter steel pipe is installed with only the remaining tail race and inlet structures to be completed before irrigation season.  Testing of the pipeline with intermittent water flows will begin the first week of April and it is anticipated that irrigation season with uninterrupted flows will occur around April 8^th.  During irrigation season the hydroelectric facility will still be under construction but is scheduled to become fully operational and deemed commercial this fall.

The repairs to the canal bottom collapse on the Central Oregon Canal were completed in time for the scheduled stock run last month and analysis of the repairs after the stock run were very positive.  The pending stock run in March will provide an additional test on the repairs and an evaluation of the integrity of the canal for the coming irrigation season.

The Oregon Legislature concluded its special one month session and passed two bills that were of particular interest to COID and both are anticipated to be signed by the Governor. 

The first bill passed now allows the Siphon Power Plant to be eligible to participate in the Oregon Renewable Portfolio Standard and if certified will be allowed to market/sell Renewable Energy Credits. This is a very positive outcome that could generate additional revenues to COID.

The second bill involved changes to the structure of the State’s Business Energy Tax Credit Program. While significant changes were made to adjust and lower the State’s general revenue impacts there was minimal change to the pre-certified status COID received for the Juniper Ridge Project.  Any new hydro plants pursued by COID will fall under the new statutes passed by the Legislature.

Opportunities:

• The DBBC submitted appropriation requests to the Congressional Delegation for additional federal funding of the Bureau of Reclamation’s Deschutes Project line item.  Funding has successfully been increased by several hundred thousand dollars in each of the last two years and utilized by COID and the other irrigation districts in the DBBC for conserved water projects.

• 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.

• Deschutes County is proposing new rules for Destination Resorts.  Hearings began in January and are continued for the public record.

• 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 and beyond.

• The Deschutes Water Alliance (DWA) conducted its second public meeting with stakeholders from all irrigation districts, cities, counties, the Confederated Tribes of Warm Springs, the Deschutes River Conservancy and various other state agencies were in attendance. Discussion and presentations focused on particular water concerns and addressing questions raised at the first DWA meeting.

• 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.

Report prepared by:  Steven C Johnson

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