REGULAR BOARD MEETING
DECEMBER 14TH , 2010, 10:00 A.M. Revised per Board
TUMALO IRRIGATION DISTRICT OFFICE Member Cochran
64697 Cook Avenue
Bend, Oregon 97701
BOARD: Bob Morrow, Stephen Putnam, Dean Tuftin, Ron Cochran, Patricia Gainsforth
STAFF: Elmer McDaniels, Kenneth Rieck, Bob Varco, Jan Wickham, Fran DeRock
ATTORNEY: Bill Hopp
ENGINEERS: Jon Burgi
GUESTS: Greg Mohnen
Vice-Chairman Morrow called the meeting to order at 10:00 A.M. and appointed Fran DeRock scribe.
APPROVE MINUTES
Director Cochran provided a copy of the minutes of the November 9th, 2010 Regular & Executive Board Meetings with grammatical and punctuation changes noted. He requested the changes be made on the final copy of the minutes for November 2010. Director Putnam made a motion to approve the minutes as corrected. Director Gainsforth seconded the motion and it carried unanimously.
APPROVE VOUCHER LIST
The Board of Directors unanimously approved the December 2010 voucher list by signature on the voucher list.
CRESCENT LAKE WATER REPORT
Per Manager McDaniels, Crescent Lake has gained 3,500 acre feet of storage in the last month. He stated the lake could fill this winter. Crescent Lake currently holds 63,555 acre feet.
HCP REPORT
Per Manager McDaniels and Engineer Burgi, there is nothing new to report.
BILL MARTIN ROAD UPDATE
Bill Martin Road has been dedicated to Deschutes County and the District is waiting for County Board signatures in order to complete the transfer of the road to the County. The road will be maintained by the owners of the properties adjacent to the road. TID will need to disclose this to potential buyers of the District’s parcels on Bill Martin Road.
GRANTS UPDATE
The BOR Water Smart Grant for TFC Phase II Piping is complete. We have the waiver for the Buy America requirement which is needed for the BOR/ARRA Grant through DRC.
Director Cochran asked if we have Directors Insurance, and, if so, how much. He requested that the District find out what the limits of coverage are on the policy.
The OWEB Grant for Phase II (also through DRC) needs to be reviewed and approved by Attorney Hopp. Once approved, all Board Members will need to review and sign the Agreement. Director Putnam made a motion to approve the OWEB Grant with Attorney Hopp’s review and approval. Director Tuftin seconded the motion and it carried unanimously.
The DEQ originally stated that they would be able to forgive around 30% of the loan we anticipated getting from them to match our Grant funds from ARRA. Now DEQ is saying they could only forgive about 7% or less. Manager McDaniels is recommending we drop the ARRA Grant and thus reduce the large loan we would need from DEQ. The loan from DEQ is a credit line. If the District does not take the ARRA Grant, the DEQ line of credit would be about $440,000. This would take the Phase II piping to the Klippel Siphon. In the next few months we can search for other grant funds to repay the DEQ loan. The Board decided to put this discussion on hold until the rest of the Regular Board Meeting agenda has been addressed and the Executive Board Meeting has been completed.
PHASE II BID RESULTS
Weekly Bros, Inc. was the low bidder on the Phase II Piping project and was awarded the contract. Their bid was $703,338 and the next lowest bid was from Tapani, for a bid of $720,600.
STATE LANDS UPDATE
Per Attorney Hopp, the District has sent their proposal to the Department of State Lands for a land swap. We proposed an exchange of 120 acres for 240 acres. The 120 acres has more timber on it. We have not heard back from State Lands.
CONSERVED WATER POLICY RESOLUTION
Attorney Hopp read the Board Resolution regarding the renewal of the District’s Conserved Water Policy. Director Gainsforth made a motion, after discussion, to pass the Resolution. Director Putnam seconded the motion and it carried unanimously.
INSTREAM LEASE AGREEMENT FOR 2011
There are no changes to the 2011 Instream Lease Agreement except for a cost increase of $24 per lease. Director Gainsforth made a motion to approve the 2011 Instream Lease Agreement. Motion was seconded by Director Putnam and it carried unanimously.
CITY OF BEND STANDPIPE
Director Putnam found a reference to the City of Bend standpipe in the Bend Bulletin newspaper archives. Attorney Hopp found agreements from the 1950’s and the 1980’s referencing litigation regarding the City of Bend/Tumalo Creek water rights. Director Gainsforth remembers using a standpipe in the 1980’s. These people are still searching for more information regarding a City of Bend standpipe.
PACIFIC RIM CLAIM
Pacific Rim Energy has filed for permits to study hydro projects in our District, as well as, most other irrigation districts in Oregon The District needs to file a protest to this. Manager McDaniels thinks that the state water association should file the protest for all the districts.
CITY OF BEND MOU
The City of Bend wants to sit down with all of the Water Districts to try to meet the needs of everyone involved with City’s water issues. The City has drafted an MOU to discuss an agreement between the City and the irrigation Districts.
EASEMENTS
Attorney Hopp is strongly recommending that the District get all of its piped easements recorded. This will protect the District from future problems if someone wants to build on or near the pipes.
ADJOURN
Director Putnam made a motion to adjourn the Regular Board Meeting at 11:28 a.m. Motion was seconded by Director Gainsforth and it carried unanimously.
RECONVENE
Vice Chairman reconvened the Regular Board Meeting at 12:16 p.m. and appointed Fran DeRock scribe.
GRANTS UPDATE CONTINUED
Manager McDaniels reiterated his recommendations for going forward with only two grants and the DEQ loan, as he stated earlier in the Board Meeting. Director Putnam made a motion to proceed with Manager McDaniels recommendations, after reviewing the OWEB agreement. Director Cochran requested that the following be added to the motion: Without future grants to repay the loan, it will obligate our water users to a $47 per year additional charge per head gate. Also, the reason not to take the ARRA Grant was/is not to indebt TID for another $460,000 that we do not have the ability to cover and the Board is unwilling to expose the District to that much additional debt. Motion was seconded by Director Gainsforth and carried unanimously.
2011 BUDGETS REVIEW/APPROVAL
The second draft operating and long term funds budgets were mailed to all Board Members with their board packets. This draft shows the changes discussed at the last Board Meeting. The only change made to the draft that was not discussed prior was the increase in the District’s unemployment taxes, which increased payroll taxes from 3% to 11%.
Manager McDaniels recommended dropping the TID staff wage increase on the 2011 budget. The Board Members requested the wage increase be left in the operating budget.
The draft budget shows the 2011 head gate fee will be $603 and the per acre fee will be $54 to cover the expected increases. The BCX (COI) fees will be $603/$88. (The difference is due to the higher fees TID pays COI for the water provided to BCX certificate holders.) However, all fees are only estimates and subject to revision.
Director Gainsforth made a motion to approve the operating budget as amended. Director Cochran seconded the motion and it carried unanimously.
The Board Members reviewed the draft Capital Budget, which shows recommended changes discussed at the last Board Meeting. Director Putnam made a motion to approve the Capital Budget with the understanding that the budget for Land Development expense will need to be adjusted quarterly. Director Gainsforth seconded the motion and it carried unanimously.
ADJOURN
Director Putnam made a motion to adjourn the Regular Board Meeting at 12:55 p.m. Motion was seconded by Director Tuftin and carried unanimously.