EMPLOYEE RECOGNITION: Chairman Miller presented Dawn Henderson with a Certificate of Recognition for her 10 years of service to the District.

GUESTS:

PAUL BURNS DEVELOPMENT: Jim Stormo, Engineer for Paul Burns’ Desert Sky Estates Subdivision was present to represent Mr. Burns. Manager Wilcox recapped that the Board agreed that they were willing to accept a letter of credit from Mr. Burns for the highest bid plus 30% to cover the cost of piping that portion of the D-Line that runs adjacent to Mr. Burns’ subdivision to be used if Mr. Burns became in default of installing that pipe within the time frame given.

Since the last Board meeting Manager Wilcox has had time to research the option of Mr. Burns purchasing an assigned Certificate of Deposit (CD). The process for collecting on a letter of credit or assigned CD is basically the same. They both require that a sworn statement be presented to the bank and the bank will write a check in the amount of the CD or letter of credit. The differences are that the letter of credit is an unissued unsecured loan that the bank agrees to provide if it becomes necessary. The letter of credit is costly to the person or entity that is responsible for getting it. A CD allows the person or entity to deposit the funds with the bank and collect interest on the deposited funds.

The District received two bids for current day installation of the piping project in the amounts of $142,135 and $149, 879. It was suggested to add 10% per year for cost projections figures. Mr. Stormo said that it would be three years on the outside for the installation of the pipe, but they are expecting it to be more like one to two years. The Board decided on $190,000 for the deposit amount by using the average figure between the two bids and adding in 10% cost increase per year for three years.

After a considerable amount of discussion, Director Bergstrom moved to accept an assigned CD from Mr. Burns for $190,000 for the D-Line piping project which is to be completed by January 1, 2013. After further discussion, the motion was seconded by Director Locke.

This project has to be done when irrigation water is not running. Mr. Burns has missed the opportunity of doing the project before water comes on this season. The January 1, 2013, date allows Mr. Burns three seasons to complete the project, while still allowing the District time to complete the project before water comes on in 2013 if necessary.

After more consideration, Director Bergstrom moved to amend the motion to include the stipulation that any costs above the projected estimate of $190,000 will be the responsibility of Paul Burns as Desert Sky Estates and any funds left over will be returned. Director Jeppeson seconded the amendment. There being no further discussion the amendment was voted on and passed unanimously.

There being no further discussion, the motion as amended was voted upon and passed unanimously. This information will be included in the Developer’s Agreement.

CHET PRIOR - UMATILLA BASIN WATER COALITION (COALITION): Mr. Prior is the Chairman of the Coalition and attended today to speak about the Coalition and the Umatilla Basin Water Commission. The Coalition was established by a Memorandum of Understanding between a number of entities. It was originally set-up to promote the passage of HB2406. That bill passed and resulted in $750k to be used for groundwater studies that were done by IRZ. After the first study was completed, HB3369 was drafted by Representatives Bob Jenson and Jefferson Smith. This bill included $2.5m to continue the groundwater studies and restoration.

The Coalition expected to receive state funds for operations, but have not received any to date. The original members of the Coalition were asked to contribute $2,500 each. Those funds were used to have IRZ prepare a Work Study for their Work Plan. The Coalition acts as a focus group to keep the work moving forward. They established the Commission that was needed in order to receive funds from the state. The Commission is comprised of the Umatilla Tribes, Umatilla County, Morrow County, Westland Irrigation District and County Line Recharge.

Mr. Prior encouraged the District to continue our participation in the Coalition. He also wanted to discuss the usage of the Phase II facilities for groundwater recharge. Coalition members have met with and are seeking authorization from the BOR to use Cold Springs Reservoir and the Phase II pumping station when it is not in use by the BOR or the District in order to leave more water in the Umatilla River and for recharge.

Mr. Prior told Manager Wilcox that he would provide the Board with a budget in order to decide if they wanted to contribute financially to the Coalition. He did not have that budget available to present at this meeting. The Board agreed that they want to review a budget from the Coalition before they make a decision as to whether or not a financial contribution will be made.

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

FINANCIAL STATEMENTS & VOUCHERS: The Board reviewed the Profit & Loss Report for March 2010. The Board reviewed and signed the March/April 2010 Vouchers Report. Vouchers Numbered 36496 through 36552 were reviewed and approved. The Board also signed expense checks.

POTENTIAL LAND SALE – COLUMBIA LIFE KNOWLEDGE CENTER (CLKC): Manager Wilcox reported that he recently spoke to Jeri Boechter and was informed that there they are working with SWCD to receive grant funding for the project. CLKC could prepare a contingency package to present to their partners once they receive the grant information.

ENERGY TRUST: The District received letter and questionnaire from Black Rock Consulting on behalf of Energy Trust of Oregon. Energy Trust of Oregon is conducting evaluations for potential hydropower project development and energy efficiency upgrades at irrigation district and similar agencies. Manager Wilcox completed and returned the questionnaire. There is no cost or obligation to the District for the review. It will, however, provide information about potential hydro at Cold Springs Reservoir.

FORECLOSURES: Business Manager, Annette Rambel submitted two accounts to the Board that meet the requirements to be forwarded to the District’s attorney to begin the foreclosure process. The two accounts submitted were Carol Johnson’s property 4N2906A 5202 and Larry & Sheri Buckingham’s property 5N2826D 602. A third account was scheduled to be presented to the Board, but was paid in full this morning.

Director Locke moved to have Carol Johnson and Larry & Sheri Buckingham’s accounts forwarded to Attorney Doug Hojem to begin foreclosure proceedings. Director Jeppeson seconded the motion. There being no further discussion the motion carried unanimously.

HERMISTON SCHOOL DISTRICT PROPOSED LAND PURCHASE: Manager Wilcox received an appraisal for the 4.2 acres of property on Theater Land that the Hermiston School District is interested in buying. The appraised value is $50,000. Dr. Maiocco has asked Attorney Doug Hojem to prepare a proposal based on the appraisal.

ADJOURNMENT: There being no further business, the meeting was adjourned by Chairman Miller at 5:14 p.m.