REGULAR BOARD MEETING

May 14, 2002, 10:00 A.M.

DISTRICT OFFICE

BOARD:               Bill Martin, Bob Morrow, Steve Putnam, George Bach

STAFF:                Elmer McDaniels, Shelby Smith, Jan Wickham, Ken Rieck

ATTORNEY:         Bill Hopp

GUESTS:                   Chris Mahr, Kevin Crew, Greg Mohnen, Gary Blake, Les Morton, Ila Cronen

Chairman Martin called the meeting to order at 10:00 A.M. and appointed Shelby Smith scribe. 

APPROVAL OF MINUTES

Vice-Chairman Morrow made a motion that the minutes of the April 9, 2002 Regular Board Meeting and April 9, 2002 Executive Board Meeting be approved, seconded by Director Putnam, motion carried unanimously.  

APPROVAL OF VOUCHER LIST

Director Putnam made a motion that the May 2002 Voucher List be approved, seconded by Director Bach, motion carried unanimously.

CRESCENT LAKE WATER REPORT

Manager McDaniels said that Crescent Lake has 52,185 acre-feet.  We may hit 60,000 acre-feet.  We have been releasing the minimum allowed by the Oregon Water Resources Department.     

PROJECT 3B UPDATE

3B is done.  Attorney Hopp suggested that a copy of the Bulletin article on the Smith tour be sent to Smith, Walden, and Wyden.  There will be a tour June 10 with Northwest Power Planning.

BULL TROUT, BOARD OF CONTROL - TODD GRIFFITH

Mr. Griffith said that the U.S. Department of Fish & Wildlife has come out with the opinion that the Upper Deschutes be listed as a Bull Trout habitat.  The Board of Control has hired the legal firm of Stoel Rieves to represent the participating districts against such an action, as it may limit the operation of Reclamation facilities in the upper basin, prejudicing their ability to provide irrigation water to the districts.  There could also be other impacts, such as recreational fisheries for brook trout and other species that might have to be eliminated to allow successful bull trout reintroduction.  See attached copy of draft comment letter.  Mr. Griffith asked if the District wished to participate in this effort, as a member of the Board of Control.  The Board had decided at the last Board Meeting not to join the Board of Control.  Manager McDaniels recommended that they reconsider.  Gary Blake, a District water user, said that the value of being part of the group was in the ability to afford the best legal opinion, the best researched opinion, and the best data.  He felt that if the District wrote a letter apart from the Board of Control’s letter, it would be very difficult for the District to afford the kind of legal advice needed to win on this issue.  The Board still disagreed with the items discussed previously, and felt that the agreement should deal with political issues only, but agreed to join, in the best interests of the District.  Director Bach

-2- Minutes of Regular Board Meeting, May 14, 2002

made a motion that the District join the Board of Control, seconded by Director Putnam, motion carried unanimously.                 

2001 ANNUAL AUDIT

Chris Mahr with Steven Greer & Associates provided copies of the 2001 Annual Report to the Board.  He said that it was a clean audit.  He reminded the Board that, under the Single Audit Act, we need to be careful about matching funds for each phase of the Bend Feed Canal Project, rather than waiting until all phases are complete. We have been using a 10% overhead factor, which is probably not acceptable.  Mr. Mahr and Ms. Smith will work on an acceptable factor, which will probably be about 7%.  The Single Audit added about $2,500 to the cost of the Annual Audit.       

TUMALO TOWN DITCH/DISTRICT WATER RIGHTS

Ms. Smith explained that the District has four units of Tumalo Town Ditch water, which is equivalent to approximately .23 acres of water.  This water is located in Block 14, Lots 15 - 18, just north of the office, and covers 100 x 100 square feet, or four lots.  Harriet Gummus, secretary for Tumalo Town Ditch, has one person who might be willing to take two units.  Another option would be to lease them instream; however, Mrs. Gummus was opposed to that idea.           

CARD FROM DESCHUTES RESOURCES CONSERVANCY

See attached copy of card from Deschutes Resources Conservancy.

LETTER FROM USBR

See attached letters from Bureau of Reclamation dated April 8 and April 11, 2002.  Manager McDaniels will be attending two functions.

LETTER FROM CHUCK & JANIE RICHTER

See attached copy of letter from Chuck & Janie Richter.  Director Putnam made a motion that the District sell the outhouse at the shop to the Richters for $200.00 as is, where is, on condition that they remove it and fill the hole, seconded by Vice-Chairman Morrow, motion carried unanimously. 

UPPER DESCHUTES AGRICULTURAL WATER QUALITY MANAGEMENT AREA PLAN

Manager McDaniels made a copy of this report available to the Board, since it was quite lengthy.

WATER TRANSFER

            Kiesow to Kiesow - 1.40 Senior Rights

Ms. Smith said this is a self to self transfer, correcting the placement of the water, and is contingent upon completion of the paperwork.  Director Bach made a motion that this transfer be approved, seconded by Vice-Chairman Morrow, motion carried unanimously. 

-3- Minutes of Regular Board Meeting, May 14, 2002

NEW PICKUP

Manager McDaniels said that Ken Rieck’s 1992 Ford pickup will require extensive repairs, $3,000-$4,000, if not replaced.  He suggested that the District purchase a 2002 Ford Ranger with an extended cab, so Ken can carry his GPS equipment safely.  The bids are Roberson Ford Sales, Inc. at $16,243, and Miller Ford-Nissan at $15,743.  Director Putnam made a motion that the District purchase a Ford Ranger from Miller Ford-Nissan, seconded by Vice-Chairman Morrow, carried unanimously.     

SAFE DRINKING WATER ACT

Mrs. Cronen asked if the District could provide information on installing a filtration system that doesn’t cost $3,000.  She was advised to talk to Tom Charbonneau with the Oregon Department of Human Services. 

FISH SCREENS

Mr. Crew said that US Fish & Wildlife Service funds are being made available through the Oregon Department of Fish & Wildlife, known as FREMA funds.  They will pay up to 65% of the project costs, and the District must have at least 10% involvement.  $150,000 has already been allocated for each screen by ODF&W.  FREMA will cover the balance up to 90%.  Fish ladders will need to be addressed separately.   

NEXT MEETING DATE

The next Regular Board Meeting will be Tuesday, June 11, 2002, at 10:00 A.M., in the District office. 

ADJOURNMENT

Director Putnam made a motion that the Regular Board Meeting be adjourned at 11:45 A.M., seconded by Vice-Chairman Morrow, motion carried unanimously.