REGULAR BOARD MEETING
MARCH 14, 2006, 10:00 A.M.
TUMALO IRRIGATION DISTRICT
64697 COOK AVENUE
BEND, OREGON 97701
BOARD: Bob Morrow, Steve Putnam, Patricia Gainsforth, Jim Schlueter
STAFF: Elmer McDaniels, Ken Rieck, Shelby Smith, Jan Wickham, Bob Varco
ATTORNEY: Bill Hopp
ENGINEER: Kevin Crew
GUESTS: Rick Silver, Karin O’Banion, Jackie Ehlers, Kim Woolaway, Ron Miller, Robb Reavill, Lisa
Armstrong, Susanna Harrison, Alice Long, Bruce Moon, Phil Kochan, Robert & Gretchen Pederson, Irene Olivien, Jennifer McCrystal, Greg Mohnen
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 to approve the minutes of the February 14, 2006 Regular Board Meeting and February 14, 2006 Executive Board Meeting, seconded by Director Schlueter, motion carried unanimously.
APPROVAL OF VOUCHER LIST
Director Putnam made a motion to approve the March 2006 Voucher List, seconded by Director Schlueter, motion carried unanimously.
CRESCENT LAKE WATER REPORT
Manager McDaniels said that Crescent Lake has 23,339 acre-feet, 27% full.
PUBLIC MEETING APRIL 5, 2006, 5:00 P.M. TO 6:00 P.M., COUNTY HEARING ON LAND PARTITIONS, E-MAIL FROM CONCERNED WATER USERS
See attached copy of Notice of Public Information Meeting. See attached map. See attached list of questions submitted by Lisa Armstrong, on behalf of the group in attendance.
(1) Who created the Laidlaw Butte partition and access road alignment plan? Director Schlueter said the Board has been working on this plan for several years. Are the minutes from the meeting(s) where it was approved available to members for their review? Manager McDaniels said the minutes of the Regular Board Meetings are available to the public. Attorney Hopp said the property was divided according to advice from an engineer and a land use attorney, to maximize the marketability of the properties, and still maintain the character of the neighborhood.
(2) What tax/map lots are owned by the district? What are the 6 month/1 year/10 year/20 year plans with respect to the land owned by the District? Director Schlueter said that most of the District-owned land is a result of forfeitures many years ago. He said the District does not have immediate plans for the 540 acres, or the partitioned lots. Director Putnam said one goal is to establish long-term revenue to replace the loss of the pumice revenues, possibly by leasing the land to someone.
-2- Minutes of Regular Board Meeting, March 14, 2006
(3) Why is TID making plans to sell the Laidlaw Butte Land? Why is TID partitioning these lots now? Is this premised on Measure 37 claims or canal piping? Is TID planning on offering all of the land for sale at the same time? Director Schlueter said the District must maximize the revenue from these properties to continue piping so that we can continue to deliver water, and to cover the losses in pumice revenue, which has been used to subsidize the operating budget for fifty years. Attorney Hopp said that, in the past, the District has been unable to sell properties even though we had buyers, because the land was not properly prepared (zoned) for sale. He said the plan was to prepare the lands now, so that they will be ready to sell when the time comes. Director Putnam said that when grant money becomes available, the District must be in a position to match funds, or lose the grant money.
Phil Kochan asked (1) if we sell a 100 year legacy, will the selling of that resource push 100 years into the future? Director Schlueter said he hopes so. (2) There is a lot of data that shows that piping canals has a double take affect, because the water is not going into the aquifer, and then the conserved water is sold and mitigated, and a pump is put in upstream and sucks more water. Director Schlueter explained that we are not selling the conserved water; we are putting it back into the Deschutes River. Attorney Hopp said some of that conserved water extends the life of the storage in Crescent Lake, because we do not have to pull so much stored water, and we have a more reliable delivery system. In order to get public funding, some water needs to go instream. Assuming that the data is valid and that every drop that goes into the ground comes up at Billy Chinook, what the public money pays for is to have the water in the river in Bend instead of at Billy Chinook. What we are doing is re-watering the Middle Deschutes River.
Director Putnam said that the District does not have a slush fund for catastrophic events, which is one reason it is important to have these properties market ready. Karin O’Banion said she understood that the District has sold some properties, so why don’t we have a slush fund? Director Schlueter said most of the money from previous property sales paid for the Bend Feed Canal Piping Project, in addition to several other capital improvements, such as two fish screens, which were mandated by the State.
Phil Kochan asked what would happen if the District ignored mandated projects, such as the fish screens. Director Putnam said Methow Irrigation District in Washington refused to do a mandated project, and the State took half their water. Director Schlueter said we delayed the construction of the fish screens as long as possible. Mr. Kochan asked what would happen if we sent a letter to our water users, asking them to approve raising the rates or donating money to pay for capital improvements. Manager McDaniels said many of our water users could not afford that kind of an increase.
(4) Do you have a prospective buyer for the Laidlaw Butte land? Director Schlueter said there has been some interest, but no serious buyers at this time.
(5) Members of the District would like the Board to consider the creation of a planning committee that would serve as a liaison to the Board. The planning committee would offer creative ideas for land use and support the Board’s efforts in land sale activities. Rick Silver said they would not interfere in Board decisions regarding operations, but would serve as liaison between with the membership and the Board. Director Putnam said they would be interested in such a committee.
-3- Minutes of Regular Board Meeting, March 14, 2006
(6) Would the District consider deed restrictions for the Laidlaw Butte land? Attorney Hopp said attaching deed restrictions would lower the value of the properties, and the Board has a fiduciary duty to maximize the value of these properties, for the benefit of all the water users. Phil Kochan said deed restrictions might reduce the value of the property if it is sold, but not if it is leased. Director Putnam said deed restrictions are too much like home owners associations, which restrict what can be done with privately owned property. The members are more concerned that the properties would be split up either more after they are sold.
(7) Are the District’s financials available to members for their review? Yes.
(8) Are the last three amendments to the by-laws available to members for their review? Yes.
(9) Could you provide information on the 40-acre parcel that was sold by the District located between Route 20 and Sizemore Rd? Why was there an emergency zone change? Irene Olivien asked why there was no for sale sign on the 40 acres, and why the County said there was an “emergency zone change”. Director Schlueter said that was a land-locked property that was on the market for several years before Mr. Eggiman bought it. Manager McDaniels said he believed that 40 acres was listed with another 240 acres, and the sign was on Highway 20.
All guests except Greg Mohnen, Rick Silver, and Phil Kochan left at 11:15 A.M.
TUMALO FEED CANAL FISH SCREEN
Manager McDaniels said the cold weather has put us behind schedule, but we should still be ready by April water season.
VERIZON WIRELESS
Manager McDaniels said Verizon Wireless is building their facilities on Laidlaw Butte. We have received $2,000 from them.
YELLOWKNIFE
Attorney Hopp is writing the agreement for Yellowknife per the Board’s instructions at the February 14, 2006 Regular Board Meeting. We are giving them a forty-five day option period for $500. If they exercise the option, the $500 will be their first month’s rent; if they don’t, they forfeit the $500. It is a five-year lease, first year $500 per month, with a 4% bump each year. They will be using the District’s pole for their equipment. If they put up a second cluster of antennas, the rent goes up $500. They will be using the District’s power. If they bump the power use over the minimum, they will pay the difference.
CASCADE CHAINBREAKER MOUNTAIN BIKE RACE
See attached copy of letter from Cascade Chainbreaker dated February 17, 2006. They are requesting permission again this year to use District land for their annual bike race. Director Schlueter made a motion that this request be approved, seconded by Director Putnam, motion carried unanimously.
-4- Minutes of Regular Board Meeting, March 14, 2006
WATER TRANSFERS
Martin to Callen – 1.00 acre
Marks to Callen – 1.00 acre
Lundgren to Self – 3.10 acres
Coats to Scott – 4.80 acres
Director Putnam made a motion to approve these water transfers, seconded by Director Schlueter, motion carried unanimously.
2006 INSTREAM LEASES
See attached copy of list of 2006 Instream Leases. We have 24 participants this year, with 402.59 acres of water, not including Bend Park & Recreation District’s 105.00 acres. In 2005, we had 30 participants with 374.46 acres of water. Eight of the participants would have been in jeopardy this year. The State will not require leasing the supplemental rights this year. Director Schlueter made a motion to approve these instream leases, seconded by Director Putnam, motion carried unanimously.
NEXT MEETING DATE
The next Regular Board Meeting will be Tuesday, April 11, 2006, at 10:00 A.M., at the District Office.
ADJOURNMENT
Director Putnam made a motion that the Regular Board Meeting be adjourned at 11:55 A.M., seconded by Director Schlueter, motion carried unanimously.