REGULAR BOARD MEETING

                                        AUGUST 12, 2003, 10:00 A.M.

TUMALO IRRIGATION DISTRICT

64697 COOK AVENUE

BEND, OREGON 97701

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

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

ATTORNEY:           Bill Hopp

ENGINEER:            Kevin Crew

GUESTS:                 Tammy Sailors, Roger Prowell

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 July 8, 2003 Regular Board Meeting and July 8, 2003 Executive Board Meeting be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.  

APPROVAL OF VOUCHER LIST

Director Putnam made a motion that the August 2003 Voucher List be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.

CRESCENT LAKE WATER REPORT

Manager McDaniels said that Crescent Lake has 39,705 acre-feet.  We’re taking 40 feet out of Tumalo Creek.  

PENTZ APPEAL

See attached copy of letter from Jim & Joylee Pentz dated June 10, 2003.  The Pentz’s submitted a request for a variance to locate a dwelling closer than 250 feet from a mine at the July 8, 2003 Regular Board Meeting, which the Board denied.  The Pentz’s are appealing that decision by this letter.  Manager McDaniels recommended approval, subject to Attorney Hopp writing an agreement that the Pentz’s will not oppose mining operations in the future.  Attorney Hopp suggested that, as part of the agreement, the Pentz’s be required to move their fence, which is located in the 250-foot easement.  Director Schlueter said that, since every fence in that area is in the wrong place, he didn’t think we should require the Pentz’s to move theirs.  Attorney Hopp said that, since the District is trying to sell its property, the fence should be located on the property line.  Director Schlueter made a motion that the request be approved, with the written agreement, including moving the fence to the property line, seconded by Director Putnam, motion carried unanimously.  The Pentz’s are to be responsible for any legal fees incurred by the District in writing the agreement.   

2002 AUDIT REPORT

Chris Mahr with Stephen Greer and Associates gave the Board and staff copies of the 2002 Financial Statements.  Mr. Mahr said it was a clean audit report.  However, he felt that several items required discussion.  1. Better support (time cards) for man-hours and equipment used on the small BOR projects (piping, telemetry,

-2- Minutes of Regular Board Meeting, August 12, 2003

and measuring devices).  2. Cash balances exceeded the collateral on file at the bank.  3. Use of the District’s credit card for personal use by District employees.  The purchases were approved by Manager McDaniels, and

reimbursed by the employees in question.  Director Schlueter made a motion that no personal use, either for a District employee or a District water user, of the District credit card be allowed, seconded by Director Putnam, motion carried unanimously.  District policy will be written to include the above motion.  4. Use of District cell phones for personal use.  Mr. Mahr suggested that policy be written regarding the personal use of cell phones.  Manager McDaniels said that, as long as the maximum minutes are not exceeded, he didn’t see a problem.  Director Putnam made a motion that the 2002 Audit Report be approved, seconded by Director Schlueter, motion carried unanimously.    

HIGHLINE DITCH PROJECT

Bob Varco and Ken Rieck gave a presentation of the proposed Highline Ditch Project, approximately 10,000 feet of piping, as a demonstration pressurized piping project.  This project was chosen because it presents the most viable and productive option.  Mr. Varco and Mr. Rieck have spoken with some of the water users on this ditch, and have had favorable responses.  The project would be done in three phases.  Phase I would be funded by the $165,000 BOR grant, of which $141,000 is left.  Hopefully, additional BOR grants would fund Phases II and III.  The District would need to match with in-kind service.  Mr. Varco said that there has been discussion of charging the water users who benefit from this project an additional fee.  He suggested that the District focus on the conservation benefits and increased efficiency, and not charge additional fees to the water users.  Ms. Smith asked that they submit a preliminary budget for this project, out-of-pocket expenses to include materials, rental equipment, and cost to purchase easements, and in-kind service to include labor and equipment.  Phase I would begin in November 2003, and take about three months.      

ROCK SLIDE - BEND FEED CANAL PIPE #1

Manager McDaniels said that rocks slid down the steep hillside and blocked the hiking trail.  It has been cleaned up so our vehicles and hikers can get through.  Bend Parks & Recreation is responsible and liable.   

RESOLUTION FOR MAIL-IN-ELECTION FOR DIVISION #4

Director Putnam made a motion that the Board of Directors election for Division #4 be held by mail-in-ballot, seconded by Vice-Chairman Morrow, motion carried unanimously.

INSTREAM LEASE CHECKS

Manager McDaniels reported that the District cut the instream lease checks, and the Deschutes Resources Conservancy mailed them to the lessors. 

WATER TRANSFER

                Seliger to Seliger - 2.20 Senior Rights

Director Putnam made a motion that this transfer be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.

-3- Minutes of Regular Board Meeting, August 12, 2003

VETERANS DAY, TUESDAY, NOVEMBER 11, 2003

Manager McDaniels reported that, if an election is required, it will be held on Veterans Day, Tuesday, November 11, 2003.

IRRIGATION SEASON ENDS

Manager McDaniels suggested that water be shut off Friday, September 26, 2003.  The Board agreed.  A newsletter will be mailed to the water users this week.

DESCHUTES HABITAT TOUR

See attached announcement.  This tour will be from 9:00 A.M. to 4:30 P.M., Thursday, August 14, 2003.

ISCO INDUSTRIES

Manager McDaniels and Kevin Crew have been invited to visit ISCO Industries (pipe company) in Canada next week, all expenses to be paid by ISCO Industries.

WATER RESOURCE BOARD

The Water Resource Board is meeting in Bend September 11 & 12, 2003.  Irrigation Districts have been invited to speak. 

MITIGATION RULES, OAR CHAPTER 690, DIVISIONS 505 AND 521

A hearing will be held Monday, August 25, 2003, 6:30 to 7:30 P.M., at the Deschutes County Commission Hearing Room in Bend, Oregon.

NEXT MEETING DATE

The next Regular Board Meeting will be Tuesday, September 9, 2003, at 10:00 A.M., at the District Office. 

ADJOURNMENT

Director Schlueter made a motion that the Regular Board Meeting be adjourned at 11:40 A.M., seconded by Vice-Chairman Morrow, motion carried unanimously.