REGULAR BOARD MEETING

                                        OCTOBER 14, 2003, 10:00 A.M.

TUMALO IRRIGATION DISTRICT

64697 COOK AVENUE

BEND, OREGON 97701

BOARD:                  Bob Morrow, Steve Putnam, Gary Blake

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

ATTORNEY:           Bill Hopp

GUESTS:                 Tammy Sailors, Roger Prowell, Jeff Rola

Vice-Chairman Morrow 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 September 9, 2003 Regular Board Meeting and September 9, 2003 Executive Board Meeting be approved, seconded by Director Blake, motion carried unanimously.  

APPROVAL OF VOUCHER LIST

Director Putnam made a motion that the October 2003 Voucher List be approved, seconded by Director Blake, motion carried unanimously.

CRESCENT LAKE WATER REPORT

Manager McDaniels said that Crescent Lake has 28,449 acre-feet, compared to 38,700 at this time last year.    

HIGHLINE PROJECT

Moved to Executive Session.

PENTZ PROPERTY LINE

Tabled for November 2003 Board Meeting.

CITY OF BEND

Roger Prowell with the City of Bend thanked Manager McDaniels for his participation in the City of Bend/Forest Service annual watershed tour.  They toured Crater Creek this year, which is technically out of the watershed, although where the water comes into Tumalo Creek near their diversion is in the watershed.  They are looking at Crater Creek as a potential mitigation project.  He said their intention is to take that water, put it back where Mother Nature intended it, and compensate the District with an equal amount of water.  That would serve as a recharge credit, because that water flows into Sparks Lake, which has no natural outlet.  The City of Bend has given the District $6,500 for measurement devices to be installed by the District.  The data provided by these devices will serve to convince OWRD of the actual volumes and amounts. 

-2- Minutes of Regular Board Meeting, October 14, 2003

Mr. Prowell provided a draft of the Memorandum of Understanding between the District and the City of Bend (see attached copy).  Central Oregon Irrigation District is signing the same agreement.  He showed a graph for 1986 through 2002, which indicated the changes in water use for municipal, agricultural, and environmental.  Agricultural use has actually diminished due to conservation efforts, while municipal use has increased.  Another chart (see attached) indicates current use as: municipal 1%, agricultural 16%, and environmental 83%.                  

DECLARATION OF ELECTION, CERTIFICATE OF ELECTION

This is to certify that James A. Schlueter, Director of Division 4, was duly elected by reason of sole nominating petition to the position of Director, Division 4, of the Tumalo Irrigation District, for the term beginning January 6, 2004 and ending January 1, 2007.   

MITIGATION - TAMMY SAILORS, DESCHUTES WATER EXCHANGE (DWE)

Tammy Sailors explained the mitigation program (see attached Mitigation Program).  The mitigation program was approved by the State of Oregon last year.  They will accept groundwater permit applications up to 200 cfs, after which they will re-evaluate the program.  Applications can be made on existing domestic wells for anything over ½ acre of irrigation.  Mitigation will be required over ½ acre, and some restrictions will apply, such as installation of measuring devices, annual reports to the state, and maximum amounts to be pumped per day.  Mitigation will be by acre-foot, and is for consumptive use, not water right.  A groundwater permit is limited to three acre-feet per acre.  The consumptive use factor for TID is 1.55, which is the amount of water the plant will use that will not return to the system.  The consumptive use factor is the amount that must be mitigated.  Mitigation credits must be permanently transferred in-stream.  Water saved by conservation projects or surface water rights permanently transferred in-stream can qualify for mitigation credits.  The DRC can turn in-stream leases (time-limited transfers) into mitigation credits; two acres leased equals one acre of mitigation credit.  The applicant would eventually have to provide permanent mitigation credits.  If a District water user permanently transfers one acre of water in-stream for mitigation credit, he gets credit for consumptive use; the stream gets credit for the full water right plus transportation loss, and the District loses the water right plus transportation loss.  The DWE does not buy water rights; they broker the transaction. 

LETTER FROM COMPASS COMMERCIAL

Moved to Executive Session.

SET DATE FOR BUDGET & LONG-RANGE PLANNING MEETING

The budget and long-range planning meeting will be Wednesday, November 12, 2003, following the Executive Board Meeting.

WATER TRANSFER - MUELLER

Ken Mueller submitted a notice for a water transfer in 2003.  He has failed to prove up the water according to District policy.  The notice was not included in the District’s 2003 petition.  He said he will prove up the water in 2004.  The Board agreed that Mr. Mueller will pay another transfer fee as set for 2004, according to District policy.      

-3- Minutes of Regular Board Meeting, October 14, 2003

NEXT MEETING DATE

Since Tuesday, November 11, 2003, is Veterans Day, for which the District office is closed, the next Regular Board Meeting will be Wednesday, November 12, 2003, at 10:00 A.M., at the District Office.   

ADJOURNMENT

Director Putnam made a motion that the Regular Board Meeting be adjourned at 11:15 A.M., seconded by Director Blake, motion carried unanimously.