New Board, Old Bills for Blue River Water District

The Blue River Water District Board took major steps to reconstitute its governing body and address lingering financial challenges during its January 15 meeting, held at 6:03 p.m. and chaired by Jim Parks.

Parks opened the meeting by introducing himself as a permanent Blue River resident and board chair. Treasurer and secretary Shannon also introduced herself as a permanent resident and district water user. Board member Josh Poke was absent.

Board vacancies addressed

Much of the meeting focused on restoring a functional board after recent resignations and eligibility questions. Dave Hunter was formally appointed by Lane County commissioners to fill the seat vacated by Anthony Abel, who resigned in early September. Parks administered the oath of office, officially seating Hunter and restoring a quorum.

With a quorum established, the board voted unanimously to disqualify Tony Casad from serving, citing that he does not reside in Blue River and does not maintain a permanent domicile within the district. The decision created a second vacancy.

Kate Donoho, a Blue River resident, expressed interest in the open seat. The board voted unanimously to appoint her, and she was sworn in during the meeting, completing the board’s membership.

Treasurer role reassigned

Parks then proposed restructuring officer roles, stating he wished to step away from treasurer duties. Following discussion, the board voted to appoint Donoho as treasurer. Parks and Donoho agreed to work together to transition responsibilities in the coming weeks.

Superintendent classified as contractor

The board also discussed the employment status of the district’s water superintendent. Parks clarified that the superintendent is classified as an independent contractor rather than an employee, meaning the district issues a year-end 1099 form and does not provide benefits or payroll tax contributions.

Parks said the district has had no employees since 2019 and noted that prior superintendents were not licensed or bonded contractors. Certification requirements were discussed, with Shannon noting that she and her husband have completed Direct Responsible Control (DRC) coursework and filed required paperwork with the Oregon Health Authority.

Fire recovery finances under strain

Treasurer Shannon delivered an extensive financial report detailing the district’s ongoing struggle to reconcile fire recovery expenses. She said significant time was spent reconstructing records after discovering 53 checks written without clear documentation of recipients or purposes.

Insurance reimbursement proved incomplete. The insurer initially denied roughly $50,000 in trailer rental costs related to post-fire operations, approving only one year of expenses despite four years of use. Although some additional funds were later recovered, Shannon reported the district remains approximately $50,000 in the red for fire recovery.

Several vendors involved in fire-related work, including Slayco and Civil West, have threatened to place liens on district property due to unpaid bills. Some outstanding balances have accrued interest. The board discussed transferring funds between accounts to meet payment obligations.

Monthly expenses include tank lease payments, bookkeeping services, and utilities. Shannon reported recent water sales of $5,800—higher than average—largely due to customers paying overdue balances.

FEMA funding still absent

Board members expressed frustration over delays in promised FEMA funding. Shannon said FEMA representatives had previously guaranteed reimbursement, with assurances funds would arrive by the end of the year. Communication has since become inconsistent, and the district has received no FEMA money to date.

Project updates and public communication

Parks provided updates on ongoing water installation work, noting that schedules shift frequently as contractors encounter unexpected conditions. He said updates are shared regularly and posted online.

The board agreed to shift primary public communications from Facebook to the district’s website, blueriverwaterdistrict.com. Hunter volunteered to assist with website management, and Parks said the two will meet regularly to transition responsibilities.

Governance work ahead

The board acknowledged the need to formalize bylaws and policies. Shannon shared sample bylaws from the Beverly Beach Water District and said additional materials from the Small District Association of Oregon would be provided. Board members agreed to review the documents ahead of the next meeting.

Parks explained that policies can be adopted in a single meeting, while ordinances require three public readings. Existing ordinances largely address emergency water restrictions and billing procedures.

Administrative notes

The board briefly discussed the possibility of changing banks but agreed to revisit the issue after the fiscal year ends on June 30. Concerns were raised about fees associated with accessing records at the district’s current bank.

The next regular meeting of the Blue River Water District Board is scheduled for February 4. Meetings are held on the first Wednesday of each month, with park district meetings set for the second Wednesday to avoid conflicts.