Dear Friends and Supporters,

2005 ANNUAL REPORT Enhancing and protecting the Upper Deschutes River watershed through collaborative projects in watershed stewardship, habitat enhancement, and community awareness. BOARD OF DIRECTORS Tumalo Creek Restoration Project (Page 5) President Joanne Richter Richter Environmental Consulting Directors Bob Baker Rimrock Ranch Herb Blank Central Oregon Fly Fishers Tracy Bowerman Paddlers of Central Oregon Tom Davis Water Resources Engineering Michael Fisher Central Oregon Community College Bill Friedman Mayor, City of Bend Mike Golden Fisheries and Wildlife Kyle Gorman Oregon Water Resources Dept. Tom Hickmann City of Bend Public Works Steve Johnson Central Oregon Irrigation District Leonard Knott Knott Farms Dennis Luke Deschutes County Commission Darcy McNamara Natural Resources Consulting Bill Swarts Olympic Resource Management Kelly Walker Sunriver Owners Association Staff Ryan Houston Executive Director Kolleen Yake Regional Education Coordinator Lesley Jones Water Quality Specialist Dear Friends and Supporters, The Upper Deschutes Watershed Council seeks to protect and restore the 1,800 miles of rivers and streams that flow from the Cascades to Lake Billy Chinook. Protecting and caring for these rivers requires the commitment of a network of agencies, municipalities, non-profits and interested citizens. In 2005, the Watershed Council continued to bring these local groups together to implement projects that engage citizens in restoring the Deschutes River and its tributaries. This year s annual report highlights some of our most significant accomplishments in habitat restoration, community education and watershed monitoring. Thank you for your continued support as we embark upon 2006. Sincerely, Joanne E. Richter President Ryan Houston Executive Director 2005 Annual Report Contents Page Community Rivers Program 2 Healthy Waters Institute 3 Habitat Restoration 4-5 Water Quality Monitoring 6 Partnerships 7 Funding and Support 8 Upper Deschutes Watershed Council P.O. Box 1812 Bend, OR 97709 Phone: (541) 382-6103 Fax: (541) 382-4078

COMMUNITY RIVERS PROGRAM The Community Rivers Program seeks to increase the connection between people and the rivers that make central Oregon unique. Through hands-on restoration projects, the Community Rivers Program provides local citizens, students, volunteers and landowners with opportunities that improve watershed knowledge and encourage informed conservation practices. 2005 project partners included Deschutes National Forest, Central Oregon Intergovernmental Council, Bend Metro Park and Recreation District, resource, Central Oregon Fly Fishers, Osprey Adventures, Paddlers of Central Oregon, Bend Paddle Trail Alliance, Sun Country Tours, Alder Creek Kayak and Canoe, REI, High Desert Museum, OSU-Cascades and the City of Bend. The Community Rivers Program is made possible by funding from the Oregon Watershed Enhancement Board, private donations, in-kind support and hundreds of volunteers. It is calming to sit with the trees. Even though you may get dirty it is worth it! -Cameron 5th Grade Community Rivers Participant The Riverfest Clean-up removed more than 140 bags of litter from the Deschutes River in Bend. Local river recreation businesses and other volunteers donated the labor and equipment for the project. Students from High Lakes Elementary and Summit High School learn about fish habitat while restoring riparian vegetation to Tumalo Creek (see Page 5 for the Tumalo Creek Project) 2005 HIGHLIGHTS Coordinated local elementary students to restore 500 alder and willow to Farewell Bend Park; Planted an additional 100 native rose and willow at Captain Jack Creek; Planted 1,060 willow, alder, dogwood, and twinberry with students at Tumalo Creek; Recruited nine local business, organizations, and recreation groups for river clean-up; Removed 140 bags of noxious weeds, litter, and instream debris from nine sites along the Deschutes River at the Riverfest Clean-up; Coordinated 1st Street River Trail and Farewell Bend Park weed removal projects with Central Oregon Intergovernmental Council; Facilitated riparian zone education field trip and planting project for local students at Shevlin Park; Hosted 1 st Annual Fall River Clean-up with Bend Metro Park and Recreation District to remove 30 bags of litter from the Deschutes River; Recruited 200 community volunteers; Engaged 110 student participants; and Coordinated 930 volunteer hours. Page 2

HEALTHY WATERS INSTITUTE PROGRAM OVERVIEW The Healthy Waters Institute (HWI) is a research and teaching institute working to improve education and provide students with hands-on knowledge of their local land and water. HWI is an Oregon Trout program implemented locally in partnership with the Upper Deschutes Watershed Council. HWI launched in June 2005. Highlights include: Published and distributed the first and second editions of the journal of the healthy waters institute to more than 2,000 local students; Kolleen Yake, Regional Education Coordinator, helps prepare students from Westside Village School for riparian planting at Farewell Bend Park on the Deschutes River in Bend. Coordinated week-long Salmon Watch program for 180 middle and high school students; Led Tumalo Creek watershed education workshops and field trips for more than 300 K-12 students; Assisted Sisters High School students with macroinvertebrate sampling on Squaw Creek; and As part of the Salmon Watch Program, local students learn to test water quality as one way to evaluate the health of a river. Recruited more than 150 hours of volunteer time from community members and partners. HEALTHY WATERS INSTITUTE PROJECTS Salmon Watch Students identify salmon as an indicator species of stream health. By testing the water quality, studying macroinvertebrates, examining the riparian zone and discussing fish biology, students ascertain the health of the Metolius River. Independent Projects Seniors develop and answer their own waterrelated science questions while satisfying the service-learning component of their high school education. The Healthy Waters Institute will assist seniors in seeking out evidence to support a hypothesis about local watershed health. 1,000 Drops Where does the water that falls on our school go and what happens to it along the way? is a question elementary students attempt to answer through the 1,000 Drops project. Students learn about the hydrologic cycle, water quality, and more as they trace the path of their drop from roof to ocean. Hometown Waters Helping middle and high school students understand the profile of their local watershed -- where does water originate, what factors affect the health of the water, and what can be done to ensure its long term health -- is the purpose of Hometown Waters. Page 3

HABITAT RESTORATION STREAM RESTORATION AT LAKE CREEK LODGE The Lake Creek restoration project includes 725 feet of stream channel restoration at Lake Creek Lodge in Camp Sherman. This reach is dominated by concrete and rock retaining walls and a large pond created in the 1930s. In 2004, the Upper Deschutes Watershed Council entered into a partnership with Lake Creek Lodge and the Deschutes National Forest to restore fish and wildlife habitat by replacing the retaining walls and pond with native riparian vegetation. The restoration project will remove rip-rap and concrete while replacing the existing pond (left) with a naturally flowing stream channel (above). Non-native turf grass along the edge of the creek will be replaced with more than 4,600 native trees, shrubs and wetland plugs. Lake Creek supports native redband trout and very limited numbers of bull trout. In addition, Lake Creek is one of the most important tributaries in the Metolius watershed for the reintroduction of chinook and sockeye salmon that is scheduled to begin in 2008. Before the Pelton-Round Butte dams blocked fish passage, both chinook and sockeye salmon migrated up the Deschutes River into the Metolius River. Many of these chinook spawned in Lake Creek and in the Metolius River near Lake Creek. The sockeye migrated up Lake Creek to Suttle Lake, where they spawned in the lake and in Link Creek, a small tributary. Because Lake Creek travels only about six miles from Suttle Lake to the Metolius River, each reach is critically important for sustaining local fisheries. The restoration here will benefit resident and anadromous fish for years to come. TROUT CREEK WETLAND Trout Creek Wetland, a 28-acre fen located near the Three Sisters Wilderness, supports an unique assemblage of rare plants and mosses and a small population of native redband trout in the nearby creek. The Trout Creek Wetland Restoration Project, completed in 2005, focused on improving hydrologic conditions in the wetland by plugging 1930s-era ditches that were draining the wetland. The plugs were constructed from natural materials (pine slash, sedge mats, fiber matting and soil) to slow the draining of the wetland and raise the elevation of the water table. The project was implemented in partnership with the Deschutes National Forest, with major funding from the Oregon Watershed Enhancement Board and National Forest Foundation. Small, lightweight equipment was used to work in the wetland to avoid impacts to the sensitive vegetation. The project focused on plugging more than 3/4 mile of man made ditches that were draining the wetland. The 30 plugs were constructed with natural materials to mimic the appearance and function of beaver dams. Page 4

TUMALO CREEK RESTORATION PROJECT HABITAT RESTORATION The 1979 Bridge Creek Fire, combined with salvage logging, left three miles of Tumalo Creek without instream woody material or riparian vegetation to provide habitat and prevent stream channel erosion. Over the last 20 years, the stream system has continued to unravel, with widespread erosion of the stream channel leading to loss of wetlands and fish and wildlife habitat. Since 2004, the Watershed Council and the Deschutes National Forest have been leading a three-year, $900,000 effort to restore stream stability and increase fish habitat in the 2.8 mile reach most affected by the fire and salvage logging. The project, implemented in three phases spanning from 2004 to 2007, is designed to address the longstanding issues of system instability and restore important fish habitat in Tumalo Creek. Through the course of the project, more than 50,000 native plants will be installed and over 3,000 whole trees will be added instream to provide much needed instream habitat and channel stability. Throughout the 2.8-mile project area, restoration focused on improving fish habitat by increasing sinuosity, adding large woody material and planting native riparian vegetation. Phase III of the Tumalo Creek project will continue in 2006 with the restoration of the final 1.1 mile reach. Funding and support is being provided by the National Forest Foundation, Oregon Watershed Enhancement Board, City of Bend, and the Deschutes Mitigation and Enhancement Fund. Summit High School is providing all project survey and monitoring as part of a science course led by Mark McGarigal. Created logjam structures (left) help increase bank stability, provide cover for fish and retain deep pools. The log structures are assembled from whole trees keyed into the creek banks to provide long-term bank stability (right). Over time, the 50,000 riparian plants installed as part of the project will provide additional rooting strength to reduce erosion, increase habitat and provide shade cover. Additional habitat restoration projects include: Whychus Creek Restoration at Camp Polk (Sisters) Miller Property Bank Stablization (Deschutes River, Bend) Deschutes River Trail Riparian Restoration (Deschutes River, Bend) Deschutes River Clean Up (Deschutes River, Bend) Captain Jack Creek Riparian Restoration (Black Butte Ranch) Odell / Maklaks Creek Fish Passage Improvements (Klamath County) Riverbend Community Park Riparian Restoration (Deschutes River, Bend) Sunriver Riparian and Fish Habitat Enhancement (Deschutes River, Sunriver) Page 5

WATER QUALITY MONITORING Since 2001, the Watershed Council s Water Quality Monitoring Program has been collecting, analyzing and distributing information about the status and health of the rivers in the upper Deschutes watershed. Our monitoring identifies priority areas for restoration, evaluates restoration success and identifies emerging conservation issues. To date, 200 stations in the Deschutes River, Tumalo Creek, Whychus Creek (formerly Squaw Creek), Metolius River, and Little Deschutes River watersheds have been included in the monitoring program. In 2005, the UDWC collected data from 89 monitoring stations, brought outreach and education to local communities, and provided technical assistance to numerous stream restoration projects. 2005 SUMMARY The Watershed Council and partners monitored 89 temperature stations in 2005: United States Forest Service (49 stations) Upper Deschutes Watershed Council (22 stations) City of Bend (12 stations) Bureau of Land Management (3 stations) Crooked River National Grasslands (2 stations) Portland General Electric (1 station) Eleven of the stations were also monitored for: Dissolved oxygen & percent saturation ph Specific conductance and total dissolved solids Turbidity Nutrients Chlorophyll-a Escherichia coli Ten stations on Whychus Creek were additionally monitored for macroinvertebrates with the Xerces Society. Nine volunteers provided 110 hours of monitoring in four watersheds. Working with the Xerces Society, the Watershed Council organized macroinvertebrate monitoring for 10 stations along Whychus Creek. Regional Temperature Monitoring Temperature changes have been tracked since 2001 to evaluate whether local rivers meet state criteria and how streamflow restoration efforts are reducing in-stream temperatures. City of Bend Water Quality Monitoring The City of Bend and the Watershed Council have partnered since 2003 to evaluate the water quality of the Deschutes River and Tumalo Creek within the Urban Growth Boundary. The monitoring, designed to identify baseline conditions, will continue to 2009. Oregon State University Undergraduate Internship Starting 2005, the Watershed Council and OSU partnered to provide OSU students an 11-month internship in watershed research and science. Rachel Francois joined the Watershed Council as the first OSU intern. Volunteer Monitoring In 2005, nine volunteers participated in Regional Temperature Monitoring along the Deschutes River and Whychus, Tumalo, and Paulina creeks. Regional Database Since 2001, the UDWC has provided water quality data management for the region. This database is shared with partners and utilized to evaluate watershed health. Page 6

COMMUNITY PARTNERSHIPS CREEK RESTORATION AT CAMP POLK Since the Deschutes Basin Land Trust acquired the 145-acre Camp Polk Meadow Preserve in 2001, the Land Trust has sought to restore more than 1.5 miles of Whychus Creek (formerly Squaw Creek) that was channelized in the 1960s. In 2005, the Watershed Council and the Land Trust joined with the Deschutes National Forest to develop a comprehensive stream restoration plan. The restoration effort will improve habitat for resident and anadromous fish, including steelhead trout that are expected to be reintroduced in 2008. Camp Polk Meadow Preserve With funding from the Deschutes River Conservancy and other partners, the project team has embarked upon a 12-month effort to develop the restoration plan. The restoration design will be completed by Fall 2006. HEALTHY WATERS INSTITUTE In February 2005, the upper Deschutes River was chosen to be one of four pilot watersheds for Oregon Trout s Healthy Waters Institute. The Healthy Waters Institute is a statewide, research and teaching institute dedicated to improving education by working with local communities to connect students to their home waters. The Upper Deschutes Watershed Council joins Bear Creek (Medford), Marys River (Corvallis), and Johnson Creek (Portland) in the three-year pilot program to develop and implement the educational goals and objectives of the Healthy Waters Institute. Through the mutually beneficial partnership, the Watershed Council and Oregon Trout have been developing educational program materials, visiting classrooms, leading field trips, and coordinating hands-on service learning projects for local K-12 students. DESCHUTES RIVER PARTNERSHIP FOR WATERSHED RESTORATION 2005 was marked by the development of a formal partnership agreement between the Watershed Council and the Deschutes River Conservancy. Although the two organizations have worked together for the past eight years, the partnership establishes the following: Collaborative fundraising and marketing Shared staffing Enhanced Board of Directors communication Combined administrative management The partnership integrates the Deschutes River Conservancy s expertise in streamflow restoration with the Watershed Council s efforts in habitat restoration, education and monitoring. Because all of these elements are critical for long-term watershed restoration success, this integration improves efficiency, expands project opportunities and helps both organizations better achieve their mission. Page 7

FUNDING AND SUPPORT 2005 FUNDING COMMITMENTS & EXPENSES In fiscal year 2005, the UDWC secured more than $900,000 in funding from local, state and federal sources, representing a 12% increase over 2004 (see graphic). These funds support the on-the-ground restoration, educational programs, community events and the water quality monitoring efforts of the UDWC. Although grants make up the largest portion of the UDWC s funding portfolio, the diversity of funding sources has grown over the past several years. As part of the UDWC s ongoing effort to build sustainable funding, the UDWC continues to seek diversity in its funding portfolio. Funding Commitments Secured in FY 2005 Contracts $157,150 (17%) Private Donations $12,700 (1%) Events $16,533 (2%) FY 2005 Income and Expenses Income Grants $533,623 Contract Service Income $54,328 Events $16,533 Donations $12,700 Total Income $617,184 Expenses Contract Services $218,833 Personnel $131,532 Supplies and Maintenance $29,576 Occupancy $13,153 Printing $7,360 Travel $3,648 Misc. $819 Postage $3,237 Depreciation $1,715 Professional Expenses $3,438 Staff Training $380 Total Expenses $413,691 Note: A significant portion of the FY 2005 income is restricted for expenses to be incurred in 2006. Audited financial statements are available upon request. Grants $731,720 (80%) Sources of Grant Funding Secured in FY 2005 Funding Source Amount Oregon Watershed Enhancement Board $335,800 Oregon Trout $150,000 National Forest Foundation $130,790 Oregon Department of Environmental Quality $79,880 Deschutes County $20,000 Oregon Department of Fish and Wildlife $15,000 Other $250 Total $731,720 Note: A portion of the 2005 funding commitments are for project expenses in 2006 and 2007. The new partnership between the Watershed Council and the Deschutes River Conservancy has led to collaborative fundraising efforts. In 2006 and beyond, this joint effort is expected to help diversity the Watershed Council s funding portfolio. The Upper Deschutes Watershed Council is a 501(c)3 non-profit community organization committed to protecting and restoring clean water, healthy fisheries and overall watershed health in the 2,000,000-acre upper Deschutes River watershed. To learn more about the Upper Deschutes Watershed Council, please contact us: P.O. Box 1812 Bend, OR 97709 Phone: (541) 382-6103 Fax: (541) 382-4078 Page 8