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March 12, 2026 • 173 mins
Meeting Purpose
To review operational updates, approve financials, and define the district's tactics for the 2026 water season, and review the strategic plan (branch or sequel) to ongoing ESA reconsultation.
Key Takeaways
• 2026 Water Season: The board approved an April 15 start and October 15 end date. This firm stance is based on KID's contract lacking an apportionment clause, which legally obligates the district to deliver water to Article 13A contractors for the full season without discretion.
• ESA Reconsultation Pivot: Reclamation's denial of KID's "applicant status" forces a strategic decision point (Branch or Sequel). The district will now open a Branch to explore a Habitat Conservation Plan (HCP) to secure independent ESA take coverage, bypassing Reclamation's control.
• Major Operational Upgrades: Significant in-house upgrades to the G Siphon and A Canal gate controls were completed for ~$55k, replacing unreliable systems and saving an estimated $450k vs. contractor bids.
• Groundwater Initiative: Reclamation's denial of a small storage grant will be countered by a new, multi-entity MOU (KID, county, KCC, other districts) to build a stronger coalition for future funding.
Financials
• Budget: The financial report was approved. The expenses for "C" Canal emergency repair work was noted as a one-time cost, significantly higher than the anticipated cost and exceeded approved budget.
• Delinquency: A $542,607 shortage in assessments to KID due 1 March. A bounced check from a major landowner was reported. Per policy, late charges will apply starting April 1.
Operational Updates
• Winter Maintenance Project Status: The project list is mostly green (complete). Two check improvements (Number 9/8 and Grisby) were deferred due to high costs ($90k each).
• A Canal Fish Screen Cleaner: Re-engineered from a single 800–1,000 lb unit into a three-piece system for safer, more efficient maintenance.
• A Canal Gate Controls: The unreliable magnetic positioning system was replaced with a new electronic system.
o Cost: ~$5k per gate stem vs. $200k for the previous system.
o Benefit: Enables local troubleshooting and provides visual feedback, mirroring the reliability of the Hoover Dam's system.
• G Siphon Modernization: The manual, chainsaw-driven gate operation was replaced with an off-grid, solar-powered 24-volt motor system.
o Cost: ~$5k vs. an estimated $400k–$500k for a contractor-led upgrade.
o Benefit: Provides remote SCADA control and safety features to prevent mechanical damage.
• KBID Well Levels: Spring measurements show levels are up 3 feet from spring 2025, with the one well again flowing artesian.
2026 Water Season
• Irrigation Season Dates:
o Start: April 15 (approved by motion).
o End: October 15.
• C Contracts: No water deliveries will be entertained for C contracts this year (approved by motion).
• April 1 Meeting Strategy:
o Position: KID will operate per its contract, delivering water to 13A contractors until October 15.
o Rationale: KID's contract lacks an apportionment clause, making this a non-discretionary obligation. Other districts with such clauses must manage their own allocations.
o For Discussion with other Districts: Negotiate a lake elevation or volume trigger with other districts to define Warren Act (B) contracts while ensuring KID can meet its 13A commitments.
ESA Reconsultation & Reclamation Engagement
• Applicant Status Denial: Reclamation denied KID's request for ESA Section 7(a)(3) applicant status.
o Reclamation's Rationale: An applicant requires federal approval for an action. KID's operations, per Reclamation's view, do not.
o KID's Interpretation: This denial implies KID's operations are non-federal and do not require Reclamation's approval, strengthening the district's legal position.
• The ESA Process for Dummies – starts on chart 48 of the attached. I recommend ALL take a moment to look at this information!!!! Watch this session as an extract.
• Title Transfer Stalled: Reclamation sent a non-binding draft MOU, but the process remains blocked by Reclamation's claims of outstanding financial obligations and Indian Trust issues.
• Warran Act Contract Issue: A property owner on a subdivided Warran Act parcel cannot receive water.
o Problem: KID cannot modify the federal contract to resolve this.
o Solution: The issue (one of several) will be escalated to Reclamation to demonstrate a key benefit of title transfer: local authority to solve such problems.
Klamath Water Users Association (KWUA) Legislation:
o Proposal: KWUA is championing the "Federal Water Projects Consultation Improvement Act of 2025."
o Legal Risk: Executive Session Discussion
New Strategic Direction: Habitat Conservation Plan (HCP)
• Rationale: The applicant status denial forces a new path to secure ESA take coverage independently of Reclamation.
• Action: The board directed the manager and legal counsel to explore an HCP, which would allow KID to operate under its own terms.
• Funding for HCP Modeling: The board allocated up to $50,000 from the science budget to fund flow-through modeling for the HCP.
o Rationale: This ensures KID that the modeling process is going to be completed on time and to standard and avoids using Reclamation's resources, which MUST BE focused on the proposed action.
Other Updates
• DRA Program: The 2026 program is funded with $9.2M for a single-year option and a separate five-year program. Final details are pending.
• OWRD (KA622): The case is stalled after Administrative Law Judge "mistaken order."
• Board Governance Training: Recommended to secure a 2% insurance discount.
• Earthquake Insurance: A quote for full-district coverage is $9,000/year. The board will consider adding it to the 2027 budget.
Next Steps
• Gene:
o Prepare for the April 1 district managers' meeting with the board's guidance
o Send Reclamation's denial letters to the DC team for awareness.
o Escalate the Warran Act contract issue to Reclamation.
o Review the draft title transfer MOU with Nathan and provide feedback to Reclamation before the early April title transfer meeting.
o Coordinate with Nathan to explore the feasibility and conditions of a Habitat Conservation Plan (HCP).
o Allocate up to $50,000 from the science budget for HCP flow-through modeling.
o Send the board the link for the June board governance training.
o Continue coordination with D.C. for an AT meeting
• Board:
o Review the draft title transfer MOU and provide redlines to Nathan by March 27.
• Rodney & Dave:
o Attend the April 1 district managers' meeting with Gene.
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