MINUTES: The Board reviewed the minutes of the February 11, 2010, Regular Board Meeting and the February 24, 2010, Annual Meeting. Director Jeppeson moved to approve the minutes as presented. Director Locke seconded the motion and it carried unanimously.

FINANCIAL STATEMENTS & VOUCHERS: The Board reviewed the Profit & Loss Report for February 2010. The Board reviewed and signed the February/March 2010 Vouchers Report. Vouchers Numbered 36434 through 36495 were reviewed and approved. The Board also signed expense checks.

EXCHANGE AGREEMENT: Manager Wilcox reported that the District’s Attorney, David Filippi, informed the BOR that we would like to get the Exchange Agreement completed however; we need to get the water rights certification issue resolved first.

POTENTIAL LAND SALE – COLUMBIA LIFE KNOWLEDGE CENTER (CLKC): Manager Wilcox reported that he has been unable to contact Greg Juell in the last month. The appraisal and boundary line adjustment has been done. The District needs to change the legal description on the deeds and get them recorded.

POTENTIAL LAND SALE – HERMISTON SCHOOL DISTRICT (HSD): Manager Wilcox reported that he has spoken with Dr. Miaocco for HSD. Manager Wilcox informed Dr. Maiocco that the District would consider selling HSD the additional acreage that they need for the school, about 3.60 acres. HSD is going to initiate an appraisal on the property and submit a proposal to the District.

PAUL BURNS DEVELOPMENT: Manager Wilcox reported that Mr. Burns is making progress in getting the water rights transferred. Manager Wilcox still needs to check the maps to verify that all of the potential buyers are within the District’s boundary.

The BOD decided at the last meeting that they were willing to accept a letter of credit from Mr. Burns’ bank for the highest bid plus 30% to cover the cost of piping the D-Line before 2013. Mr. Burns would like to issue a dedicated CD in the District’s name in lieu of getting the letter of credit. Manager Wilcox has researched the letter of credit, but will need to research the CD option further. Also, the BOD approved the installation of a temporary chain link fence the entire length of the open canal until the pipe is installed.

Mr. Burns submitted an estimate for the piping project of approximately $80,000. This estimate seemed low compared to other projects that are currently on-going in this area. Manager Wilcox received two independent estimates for the project. One estimate was $149,879 and the other was $142,135. Those figures are based on current prices of materials. It was suggested that we add 10% per year for cost projection figures.

Director Bergstrom moved to postpone the option of a dedicated CD for the Burns Development D-Line piping project until the District has time to research the option further. Director Jeppeson seconded the motion and it carried unanimously.

AQUATIC WEED CONTROL: Manager Wilcox reported that the EPA has issued labels for Cascade and Teton. It is now going through the Department of Agriculture to get it labeled in Oregon. It should be ready in time for in-season use.

Director Bergstrom moved to accept the low bid and purchase the truck from Tom Denchel Ford for $18,150. Director Jeppeson seconded the motion and it carried unanimously.

HYDRO PROPOSAL FOR COLD SPRINGS RESERVOIR: Manager Wilcox has being working with Bob Mueller and Mitch McClanahan regarding potential hydro projects at CSR. They propose installing a hydro unit to use as we are putting water into CSR, take that unit out once the water is in CSR and place it at the base of the dam and run the water through again it as the water is coming out of CSR.

They are proposing to use two units instead of one to compensate for variance and flow into and out of the reservoir. Each unit is a 220kW Morrison Vertical Propeller Hydraulic Turbine, based on 34,000 gpm @ 40 ft. net head.

Their preliminary budget for two complete turbines, including synchronous generators, switchgear and load governor is $980,000. They also offered to provide additional services of power market research and evaluation, support references and data for the BOR, independent project evaluation by a consulting firm and installation engineering and costs.

They estimate that a 40’ head at 76.5 cfs, 270 day operation at $0.10/Kw hour would generate $142,560 per year. No action was taken on this matter.

MINI EXCAVATOR BIDS: The District received three bids for the purchase of a mini excavator. One was for a 2007 CAT with 950 hours that will need new tracks. Included are a 24" dipping bucket and a 40" muck bucket. Total price w/new tracks is $35,375.

The second bid was for a 2007 Deere with 800 hours. It comes with three buckets, 12", 24" and 36". The price is $38,900.

The third bid was for a 2007 Hitachi with 1,200 hours. This machine has new tracks, a cab with heater, a/c and suspension seat. It comes with the 12", 24" and 36" buckets. The price is $28,700 and this machine is preferred by the crew.

Funds have been allocated in the 2010 budget to purchase this item. It will also require the District to purchase a trailer to haul the machine and that will cost approximately $4,500.

Director Bergstrom moved to purchase the mini excavator with the lowest bid, the 2007 Hitachi for $28,700. Director Locke seconded the motion and it carried unanimously.

They expect to have the line finished by the time that water is turned on however they will still need to install some of the laterals.

RON SAGER PROPERTY: Director Bergstrom mentioned that he received a call from Mr. Sager. Manager Wilcox said that they plan to put in a new head wall to resolve his problem. Director Bergstrom asked that someone call Mr. Sager and tell him what work is scheduled to done.

UMATILLA BASIN COALITION: Manager Wilcox attended the most recent Coalition meeting. The Coalition began about a year ago. Out of Coalition has come a Commission that includes the Tribes, County Line Water Improvement District, Columbia Improvement District, and Umatilla and Morrow Counties. This Commission’s goal is to try to get another water recharge project started that would help the groundwater situation, primarily in the Ordinance Basalt Area. They are also looking at the Echo Meadows Area and the Stanfield District’s area.

Initially it was suggested that each of the entities involved in the Coalition contribute $2,500 for operating costs. A number of entities did donate to the Coalition. Those funds have been used and the grant money cannot be used by the Coalition. They are requesting that members of the Coalition make contributions of $2,500 each. To date, HID has not contributed to the Coalition.

Manager Wilcox asked the Board if the District wanted to contribute to the Coalition. The Board agreed to address this matter at the next Board meeting.

ADJOURNMENT: There being no further business, the meeting was adjourned by Chairman Miller at 5:54 p.m.