REGULAR BOARD MEETING
DECEMBER 9, 2003, 10:00 A.M.
TUMALO IRRIGATION DISTRICT
64697 COOK AVENUE
BEND, OREGON 97701
BOARD: Bill Martin, Bob Morrow, Steve Putnam, Gary Blake, Jim Schlueter
STAFF: Shelby Smith, Jan Wickham, Ken Rieck, Bob Varco
ATTORNEY: Bill Hopp
ENGINEER: Kevin Crew
GUEST: Tammy Sailors, Jeremy Giffin, Roger Prowell
Chairman Martin called the meeting to order at 10:00 A.M. and appointed Shelby Smith scribe.
Manager McDaniels was not in attendance due to an illness in the family. The Board agreed that he should not return before next week at the earliest.
APPROVAL OF MINUTES
Director Putnam made a motion that the minutes of the November 12, 2003 Regular Board Meeting and November 12, 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 November 2003 Voucher List be approved, seconded by Vice-Chairman Morrow, motion carried unanimously.
CRESCENT LAKE WATER REPORT
Chairman Martin said that Crescent Lake has 30,305 acre-feet.
HIGHLINE PROJECT
Bob Varco said the Bureau of Reclamation’s soil tests have shown the soil not to be consistent with a wetlands area, and they have verbally agreed to allow the District to proceed with the project. A verbal agreement has been reached with Mr. Ellson to exchange an easement on his property for two acres of water, or cash if the District is unable to provide the water, and the agreement is ready for his signature. The easement agreements with the other property owners are ready to send out.
CITY OF BEND, MEMORANDUM OF UNDERSTANDING - ROGER PROWELL
Roger Prowell with the City of Bend asked the Board to reconsider signing the Memorandum of Understanding he provided at the November Board Meeting, which the Board moved not to sign at that time. Mr. Prowell said the new interim city manager would probably be Ron Garzini. He felt that, because Mr. Garzini was previously the interim manager for Central Oregon Irrigation District and had a basic understanding of the Basin’s needs, there would be opportunities for better communication between the City of Bend and the District. He also said that there has been movement on the Oregon Water Resources Department’s (OWRD) part to become more flexible, and there will be more options available for the City and the District to work together. Mr. Prowell
-2- Minutes of Regular Board Meeting, December 9, 2003
asked how much water the District could divert from the River versus Tumalo Creek? Kevin Crew said 160 cfs. He said the rules are changing regarding certain organisms, which will require the City to put a filtration plant or go to a UV disinfection system. He asked if the City chose to abandon its surface water rights and went exclusively to ground water, would the District be interested in absorbing the 692.90 acres of water rights currently held by the City under the District’s certificates? At the Upper Deschutes Watershed Council meeting held last night, he heard the comment that the District had pretty much dried up the lower section of Tumalo Creek during the November stock run. Jeremy Giffin with OWRD said the District did not exceed its legal right.
DESCHUTES RESOURVES CONSERVANCY - TAMMY SAILORS
Ms. Sailors asked the Board to consider the Deschutes Resources Conservancy (DRC) Memorandum of Understanding and Annual Water Leasing Program Grant Agreement for 2004. One of the changes from 2003 is under F. Payments: Water rights with a 1913 priority date may be leased in-stream, but will not be compensated unless the District supplies written documentation approved by the State Watermaster that states the District and State will treat the 1913 rights the same as it treats the 1900, 1905, and 1907 rights. The 1961 rights will not be compensated, because they can be shut off early during a short water year. Ms. Smith asked that this information be included in the newsletter insert, so that people who lease 1961 rights in-stream will not assume that they will be compensated. Director Putnam expressed concern that, if 2004 is a short water year, should we be leasing water in-stream at all? The question of including the supplemental rights in the lease also needs to be resolved. If we include the Certificate numbers, but not the associated rate and duty, the supplemental rights are only partially protected. If we include the Certificate numbers with the associated rate and duty, the supplemental rights will be protected, but we will be required to release the supplemental rights in-stream. Director Schlueter made a motion that the District adopt the Memorandum of Understanding and Annual Water Leasing Program Grant Agreement for 2004, seconded by Vice-Chairman Morrow, vote: aye - Vice-Chairman Morrow, Director Blake, and Director Schlueter, abstain - Director Putnam, motion carried. The Board approved the DRC insert for the January newsletter, with the 1913 and 1961 rights clarified.
BEND FEED CANAL FISH SCREEN
Bob Varco has estimated the cost for doing the Bend Feed Canal Fish Screen in-house at approximately $60,000 to $65,000 for the concrete water box only, including labor. The Oregon Department of Fish & Wildlife will allow us to operate without a fish screen in place as long as we’re moving forward. We have approval from ODF&W for the Bend Feed Canal Fish Screen design.
MULTIPLE DELIVERIES
Ms. Smith asked for clarification of the policy on multiple deliveries, i.e. does “prior to January 1, 1984” refer to when the delivery was built or when the property was acquired? The Board agreed that the criterion is when the property was acquired. If a water user owned property with multiple deliveries prior to January 1, 1984, he will be charged one delivery fee. If he sells that property, the new owner will be charged one delivery fee for each delivery.
-3- Minutes of Regular Board Meeting, December 9, 2003
GRANT MONEY
Attorney Hopp said that, because our grant request for the last section of the Bend Feed Canal Project has been reduced from $550,000 to $350,000, he and Manager McDaniels need to go to Washington DC to try for the full amount. They will also seek an authorization for $14 million for the Tumalo Feed Canal. Director Putnam made a motion that Manager McDaniels and Attorney Hopp go to Washington DC in February 2004 to seek additional funding, seconded by Director Schlueter, motion carried unanimously.
REPORT ON OWRC ANNUAL MEETING
Attorney Hopp said he and Manager McDaniels met with several people with the OWRD and the BOR. They also met with Ron Garzini, proposed interim manager for the City of Bend. They met with Christina McNitt, the OWRC lobbyist to the legislature. She and Anita Winkler with OWRC have been working on defeating the water rights ownership bill. We have a new representative, Gene _____________, who took Ben Westlund’s place. Attorney Hopp suggested that we invite him to the March Board Meeting, and to take a tour of the District. Ms. McNitt offered to come to the Board Meeting and the tour.
SPECIAL DISTRICTS - TIM ILTZ
Mr. Iltz with Special Districts provided information on loans (see attached schedule). A loan would be used to finish the Bend Feed Canal Project, and would be paid back by either a grant or property sales. The savings in increased costs for materials would offset the cost of the loan. Attorney Hopp said the District could take out a loan without a vote of the water users, as opposed to a bond, which does require an election. Director Putnam said that it might not be prudent on the Board’s part to take out a loan without the water users’ approval. The Board authorized Manager McDaniels to pursue this option.
NEXT MEETING DATE
The next Regular Board Meeting will be Tuesday, January 13, 2004, at 10:00 A.M., at the District Office. This will also be the Annual Meeting.
Regular Board Meeting was recessed at 11:40 A.M.
Regular Board Meeting was reconvened at 1:10 P.M.
APPROVAL OF 2004 OPERATING BUDGET
Director Putnam made a motion that the 2004 Operating Budget be approved as submitted at the November Regular Board Meeting, seconded by Vice-Chairman Morrow, motion carried unanimously.
ADJOURNMENT
Director Putnam made a motion that the Regular Board Meeting be adjourned at 1:15 P.M., seconded by Vice-Chairman Morrow, motion carried unanimously.