MANAGER’S REPORT

8 June. 2010

Cool and wet is the standing pattern for the weather but everyone knows that summer will eventually arrive in Central Oregon .  The weather is reducing overall demand for irrigation and is helping slow the drawdown at Wickiup Reservoir which will reserve water for higher demand in North Unit ID later in the season.

The Juniper Ridge Hydro is still on schedule and on budget.  The major components of the hydro plant have started to arrive and system testing will begin by mid-summer and commissioning for late September to early October.  DEQ has issued its 2010 project ranking for the Clean Water State Revolving Fund and the COID Juniper Ridge project is eligible for additional funding including grant funds.  This funding is dependent on the anticipated federal monies to become available sometime later this summer.  If approved, COID will be able to displace project debt with this funding.

Visited with congressional delegation staff in Washington DC on May 24^th to discuss the Deschutes Basin Board of Control’s (DBBC) appropriations request for water conservation projects and other basin issues.  In addition, met with Eric Schwaab, the head of National Marine Fisheries Service (part of NOAA) and his staff and discussed the progress of the Section 10(j) draft rule designating the recently reintroduced Steelhead as experimental and non-essential.  Mr. Schwaab and staff expressed continued commitment to getting the draft rule into the Federal Register this summer, and a target date of July 31.

By the time of the Board meeting, the irrigation district managers of the DBBC will have conducted a basin tour with the new Bureau of Reclamation Regional Director, Karl Wirkus.  Mr. Wirkus is very familiar with Central Oregon and served out of Reclamation’s Bend Field Office for several years.  The tour is to include both the Swalley and COID hydro and pipe projects along with tours of NUID and Ochoco ID and Bowman Dam in Prineville.

The status of new rules is still pending and in process on the statutes passed by the Oregon State Legislature involving the Business Energy Tax Credit Program.  COID and others are directly involved with these proceedings and providing input and clarification as the process continues.  There is still no foreseen impact to the tax credits involved with the Juniper Ridge Hydro project.

The Oregon Water Resource Commission conducted their monthly meeting in Bend on June 3-4 with presentations including the Integrated Water Resource Planning effort going on state-wide in addition to a presentation by members of the Deschutes Water Alliance on issues involved with our Basin’s efforts on water conservation and planning.  I was given an opportunity to present to the Commission an update and description of the multi-stakeholder Habitat Conservation Planning process as well as provide a tour of the Juniper Ridge Hydro and Piping Project.

Opportunities

• 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 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 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.  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.

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. 

Report prepared by:  Steven C Johnson

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