REGULAR BOARD MEETING

DECEMBER 10, 2002, 10:00 A.M.

TUMALO IRRIGATION DISTRICT

64697 COOK AVENUE

BEND, OREGON

BOARD:               Bill Martin, Bob Morrow, Jim Schlueter, Steve Putnam, Gary Blake

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

ATTORNEY:         Bill Hopp

ENGINEER:              Kevin Crew

GUESTS:                   Anthony Amadio

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

APPROVAL OF MINUTES

Director Putnam made a motion that the minutes of the November 12, 2002 Regular Board Meeting be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.  

APPROVAL OF VOUCHER LIST

Director Putnam made a motion that the December 2002 Voucher List be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.

JEOPARDY WATER

ORS 540.572 requires that a water right must be used beneficially at least once in a period of five consecutive years.  Manager McDaniels determined, by viewing the properties in question, that the following water rights were not beneficially used during the 2002 irrigation season, which was the last season in which they could be used to avoid forfeiture. 

Mr. Amadio has 19.0 acres of water rights located on 16-11-26-NE/SE-00603, which are in jeopardy of being forfeited for five consecutive years of non-use.  The District has followed ORS 540 and District policy by notifying Mr. Amadio by certified letters dated January 10, 2001, December 21, 2001, and November 19, 2002.  In protest, Mr. Amadio submitted a letter to the Board, signed by five neighbors, attesting that the water was used in 2002. See attached copy.  According to Oregon Statute, Mr. Amadio is entitled to a hearing, which the Board set for December 16, 2002, at 10:00 A.M, in the District Office.  Mr. Amadio arranged for his attorney to attend. 

Elmer & Geraldine Stoller have 2.0 acres of water rights located on 16-11-35-NE/SE-02000, which are in jeopardy of being forfeited for five consecutive years of non-use.  They were notified by certified letters dated January 10, 2001, December 21, 2001, and November 19, 2002.  In protest, the Stollers submitted a letter dated December 7, 2002, and copies of checks for power bills.  See attached copies.  They will be contacted to attend a hearing on December 16, 2002, following the hearing for Mr. Amadio.

Kelly R. & Christine Chambers and Grace Beavens have 1.0 acre of water rights located on 16-12-08-NE/SE-01302, which are in jeopardy of being forfeited for five consecutive years of non-use.  They were notified by certified letters dated December 21, 2001, January 10, 2001, and November 19, 2002.  They have not entered a

-2- Minutes of Regular Board Meeting, December 10, 2002

protest.  They will be contacted to attend a hearing on December 16, 2002, following the hearing for Mr. & Mrs. Stoller.

CRESCENT LAKE WATER REPORT

Manager McDaniels said that Crescent Lake has 38,722 acre-feet, up 143 acre-feet from last month; we are spilling 4.3.        

PROJECT 1B

Manager McDaniels asked for approval to go out for bid on Project 1B, through the River’s Edge Golf Course, subject to funding.  Mr. Crew said he might break up the project into smaller increments for bidding purposes.  Director Putnam made a motion that Project 1B go out for bid, subject to funding, seconded by Director Blake, motion carried unanimously. 

BOARD TRAINING

Oregon Water Resources Congress has scheduled board training for Thursday, January 23, 2003, 10:00 A.M. to 5:00 P.M., location to be determined.  Gary Blake and Shelby Smith have agreed to attend.  

DESCHUTES RESOURCES CONSERVANCY MEMORANDUM OF UNDERSTANDING

See attached copy of revised Memorandum of Understanding.  This version bears little resemblance to the version submitted at the November Board Meeting.  According to this MOU, DRC has retained most of the control.  If the District refuses the payment from DRC to be distributed to the water users who lease, we can continue to participate in the leasing program without signing the MOU.  Director Schlueter made a motion that the MOU be tabled until Attorney Hopp can review it with Gail Achterman, DRC’s attorney, seconded by Director Putnam, motion carried unanimously.

SECOND READING OF RESOLUTION PROHIBITING EMPLOYEES FROM SERVING ON BOARD OF DIRECTORS

Director Schlueter made a resolution that the District adopt this resolution as part of the Policies and Procedures, as follows: The Board of Directors of Tumalo Irrigation District hereby recites the matters set forth below.  (A) 1999 Laws Chapter 336, House Bill 3334, permits Districts listed in ORS 198, by Ordinance or Resolution, provide that any individual who is an employee of the District is not eligible to serve as a member of the governing Board by which the individual is employed. (B) Said Ordinance or Resolution must take effect at least one (1) year prior to the date of the regular District election.  Now therefore, be it resolved by the Board of the District as follows: Section 1. Resolution:  Any individual who is an employee of the Tumalo Irrigation District is not eligible to serve as a member of the Board of Directors of the Tumalo Irrigation District by which the individual is employed.  Section 2. Effective Date: This Resolution shall take effect immediately upon its adoption by the Board. Seconded by Vice-Chairman Morrow, resolution carried unanimously.  This is the second reading of this resolution. 

-3- Minutes of Regular Board Meeting, December 10, 2002

SECOND READING OF RESOLUTION REGARDING HIRING FAMILY MEMBERS

See attached copy of ORS 659A.309 “Discrimination solely because of employment of another family member prohibited”.  Director Schlueter made a resolution that ORS 659A.309 be added to the District’s Policies & Procedures, seconded by Director Putnam, resolution carried unanimously.  This is the second reading of this resolution.

SAFE DRINKING WATER ACT

The number of accounts (24) that use irrigation water for domestic purposes has not changed significantly since last month.  See attached copy of “Verification of Cistern Water Source for Human Consumption” from Deschutes County.  Deschutes County will not issue a building permit on property using a cistern for storage of domestic water, even if a treatment system has been installed. 

2002 WATER TRANSFERS

Transfer #N02.004.  See attached copy of letter from Dan Leahy dated December 2, 2002.  Dan J. & Joi L. Leahy purchased 1.0 acre of water rights from Rudi M. & Carla R. Booher in 2002.  There was no water on the Leahys’ property prior to this transfer.  The Leahys had a delivery built and asked for the water, but failed to use it beneficially to the District’s satisfaction.  The Board agreed that the water was not used beneficially, and reduced the additional fee from $300.00 to $150.00 for submission in 2003.  Ms. Smith will contact the Leahys to see if they wish to pay the additional fee of $150.00 and submit the transfer in 2003.  If they refuse, the water will stay on the applicant’s (seller’s) property.   

Transfer #N02.001.  See attached copy of letter from Greg Nelson, OWRD, dated December 6, 2002.  Charles E. Woolsey sold 3.0 acres of water rights to Joel & Julia C. Gisler in 2002.  The transfer was not completed, because Mr. Woolsey’s mortgage holders refused to release the water.  Mr. Woolsey refinanced the property, and the new mortgage holder also refused to release the water.  The water remains on Mr. Woolsey’s property.  Bruce White, Mr. Woolsey’s attorney, asked Mr. Nelson to write a letter to the District, outlining the requirements of a 540.580 water transfer.  Those requirements do not include a mortgage holder’s release under ORS 540.580.  However, the District does require the release before a transfer can be completed.  Attorney Hopp said that the District can have a policy that goes beyond what the State of Oregon requires.  The Board agreed that water will not be transferred without the District’s release form signed by the mortgage holder. 

OWRC ANNUAL MEETING REPORT

Manager McDaniels and Attorney Hopp attended this meeting.  The question of who owns a water right (the water user, the District, or the State) was discussed.  The Deputy Director of the Oregon Water Resources Department believes the water user owns the right.  Attorney Hopp believes that the water right is held in a trust capacity, that the water user has beneficial use of the water, but the District owns the right.  No agreement was reached at the meeting. 

-4- Minutes of Regular Board Meeting, December 10, 2002

GERKING FLUME

Manager McDaniels said that 50% matching funds may be available from the Historical Fund/Federal Parks & Recreation for repairs to the Gerking Flume.  They would require that a pipe be installed in the flume, leaving the flume standing.  The Board agreed that the pipe needs to be buried, because of the dangerous support structure, and because of the connection within the Bend Feed Canal Piping Project.  

NEXT MEETING DATE

The next Regular Board Meeting will be Tuesday, January 14, 2003, at 10:00 A.M., at the District Office.  The Annual Meeting will be held at the same time.

Regular Board Meeting was recessed at 11:50 A.M.

Regular Board Meeting was reconvened at 2:15 P.M.

2003 BUDGET

Following a budget workshop, Vice-Chairman Morrow made a motion that the 2003 Budget be approved as amended, seconded by Director Putnam, motion carried unanimously (copy of amended Operating and Capital Budgets attached).

ADJOURNMENT

Director Putnam made a motion that the Regular Board Meeting be adjourned at 2:20 P.M., seconded by Vice-Chairman Morrow, motion carried unanimously.