REGULAR BOARD MEETING
OCTOBER 10, 2006, 10:00 A.M.
TUMALO IRRIGATION DISTRICT
64697 COOK AVENUE
BEND, OREGON 97701
BOARD: Bill Martin, 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: Chris Mahr, Rick Silver, Nunzie Gould, Ron Cochran, Lisa Armstrong, Dennis Vlach
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 to approve the minutes of the September 12, 2006 Regular Board Meeting and September 12, 2006 Executive Board Meeting, seconded by Vice-Chairman Morrow, motion carried unanimously.
APPROVAL OF VOUCHER LIST
Director Putnam made a motion to approve the October 2006 Voucher List, seconded by Vice-Chairman Morrow, motion carried unanimously.
CRESCENT LAKE WATER REPORT
Manager McDaniels said that Crescent Lake has 29,214 acre-feet, 34% full, which he said is an improvement over last year at this time, at 10,000 cfs. Mr. Rieck estimated that we took less than 4,500 cfs from Wickiup Reservoir. The Oregon Water Resources Department will have the actual numbers by the end of October 2006. Mr. Rieck explained that the second graph shows that we are well below average for usage this year, due to piping, improved monitoring, and the contribution from Wickiup Reservoir.
TUMALO COMMUNITY ASSOCIATION
Lisa Armstrong said that the people who attended the last Tumalo Community Association meeting complimented the District’s website, but asked if the election information could be updated. Ms. Smith explained that the election information could not be updated until the end of the day, October 10th, because that is the deadline for petitions. They also asked if the biographies of the Board Members could be updated.
TUMALO CREEK
Manager McDaniels said we removed approximately 2,600 yards of material from Tumalo Creek above the diversion. The permit was for 2,600 yards. The last time it was done, about fifteen years ago, we removed about 500 yards. Deschutes Sand & Gravel provided the equipment and operators in exchange for the removed material. Our cost was the rental of a pump and a cat.
-2- Minutes of Regular Board Meeting, October 10, 2006
GROUND WATER PATRON POLICY AND WATER RIGHT EXIT CONTRACT
Tabled until November 2006 Regular Board Meeting.
KIT KORISH - REALTOR
Mr. Korish postponed his presentation until the November 2006 Regular Board Meeting.
2006 BOARD OF DIRECTORS ELECTION, DIVISION #4
Manager McDaniels introduced Ron Cochran, who has submitted a petition to run for the position of Director for Division #4. Director Schlueter has also submitted a petition. The deadline for petitions is today. A newsletter will be mailed tomorrow to all patrons in Division #4, a notice of election will be published in the Bulletin “Legal Notices” October 15th and October 22nd, and a notice will be posted in the office. Ballots will be mailed no sooner than October 25th and no later than October 31st, as set by Oregon irrigation district election law. Election Day is November 14, 2006, from 7:00 A.M. to 8:00 P.M., in the District office. The election will be held by mail-in-ballot, according to a resolution passed at the September 12, 2006 Regular Board Meeting. Director Putnam made a motion that an election for the position of Director of Division #4 be held on November 14, 2006, seconded by Director Gainsforth, motion carried unanimously.
BEYOND CONFLICT TO CONSENSUS
See attached flyer. The meeting is October 16, 17, & 18, 2006, in Prineville. Director Gainsforth will attend.
HOUSE BILL H.R.6256
Manager McDaniels said the House introduced the District’s bill for the Tumalo Feed Canal Piping Project, H.R.6256, named the “Tumalo Water Conservation Project Act of 2006”. The Bill authorizes 25% of the project, $4 million, non-reimbursable. See attached copy of H.R.6256. The total cost has been increased to $16 million. Todd Heisler with Deschutes River Conservancy says they can help us raise the balance. A completed project would put 20 cfs instream. Manager McDaniels said the completed Klippel and Weber Projects can be included. The question was asked if lining the canals is an option. Attorney Hopp said (1) piping does something that lining does not do, which is to create pressure that reduces the amount of work on the pumps, thereby reducing power costs; (2) lining has a much shorter life expectancy, and (3) piping eliminates safety issues. Experiments with lining by this District, as well as other districts, have not been successful. Nunzie Gould asked if a graph was available, showing the percentage of water not being used, whether by leasing instream or other non-use. Mr. Rieck said that, even though less water is being used, the amount of water necessary to push the water to the farms is not reduced by the same percentage. Manager McDaniels said that, if the piping is mandated, there will be no money available from the Federal and State Governments, and the District cannot afford to do the piping without government money. If that happens, the District could lose its water rights and be shut down.
-3- Minutes of Regular Board Meeting, October 10, 2006
CHRIS MAHR – GREER, MAHR & ASSOCIATES
Chris Mahr has been the District’s accountant for thirteen years. He said the District needs to develop a long-range plan to determine how much and when money is going to be needed to replace, repair, and maintain the District’s infrastructure. He discussed the possible uses of the District’s properties to create revenue. He said the property could be sold outright, providing one-time revenue, or the District could enter into a joint venture agreement with a developer, whereby revenue is created and shared with the developer as the property is developed and sold. The questions are, do we want our money now, or do we want it down the road, and are we willing to take some risks? Mr. Mahr and his company have worked with several public agencies, non-profit organizations, and private individuals to evaluate which option is best for them. Mr. Mahr said he would assist the District in evaluating a developer’s proposal, and assessing whether that is the best option for the District. He said to avoid any agreement where the developer tries to guarantee a profit for himself. Director Gainsforth asked what Mr. Mahr’s opinion is on ground leases, and how Deschutes River Ranch is doing with ground leases. Mr. Mahr said his experience with Deschutes River Ranch is that it is working very well for them. Attorney Hopp said a ground lease would generate less cash up front, but would create long-term revenue. Mr. Mahr said the District’s investment policy does not preclude a joint venture agreement. The Board asked Mr. Mahr to review the District’s current investment policy and offer suggestions.
NEXT MEETING DATE
The next Regular Board Meeting will be Tuesday, November 14, 2006, at 10:00 A.M., at the District Office. A Budget Workshop will follow the Executive Board Meeting.
ADJOURNMENT
Director Putnam made a motion that the Regular Board Meeting be adjourned at 11:40 A.M., seconded by Vice-Chairman Morrow, motion carried unanimously.