January 12, 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, January 12, 2005 following the 10:00AM Enterprise Activity meeting, at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Mauch announced a quorum was present.

DIRECTORS PRESENT:
Leroy Mauch- Chairman
John Singletary-Vice Chairman
Pete Moore-Treasurer
Ollie Ridley - Secretary
Loretta Kennedy
Wayne Whittaker
Melissa Esquibel

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Temporary Hourly Aide

INTRODUCTION OF VISITORS:
Chairman Mauch welcomed each of the visitors to the meeting, asked them to introduce themselves and identified the organization they represented.

VISITORS PRESENT:
Rodney Baird, La Junta Tribune Democrat; John Rose, Arkansas Valley Land Trust; Virgil Cochran; Lamar Daily News, Phil Reynolds, SECWCD; Dale Baker, CWPDA; Bob Wilger, LAWMA; Steve Malott, Catlin Canal; Jake Klein, Otero County Commissioner; Chris Woodka, Pueblo Chieftain; Kevin Salter, Kansas Department of Agriculture; Ross Manley, Senator Allard; Brenda Fillmore, AGUA; Matt Heimerich, Crowley County Commissioner; John Knapp, USDA Natural Resources Conservation Services; Gilbert Werdel, Larkspur Ditch and Orval Tomky, Farmer.

PRESIDENT'S REPORT:
Chairman Mauch gave a brief review of the Lower Arkansas Valley Water Conservancy District's Highlights for 2004.

January 2004-He reported that LAVWCD agreed to lease Larkspur Ditch from Catlin Canal and hired a water engineering consulting firm, Brown and Caldwell.

March 2004- Leased water to CWPDA, AGUA, Town of Fowler Golf Course, Otero County Roads Department and area farmers. They held a hearing for Exclusion of Lands from the District and the Irrigation Expo was held to promote technological improvements for agriculture.

April 2004- A pledge was made to support Colorado State University and USGS with water quality studies in the Lower Arkansas Valley.

May 2004- Participated in the investigation of the IGA between Aurora, Pueblo, Colorado Springs, SECWCD, FVA, Pueblo Board of Water Works; LAVWCD financially helped the Colorado Canal share holders with legal fees encountered with IGA and co-sponsored the Tamarisk Coalition.

June 2004- Purchased 20 shares of Colorado Canal/Lake Meredith, 72 acres in Pueblo County with 72 shares of Bessemer Ditch Water.

August 2004- Approved letter of support for Mr. John Wilkens-Wells for the irrigation tile drain system.

September 2004- Completed first video presentation and supported the City of Lamar Dual Water Distribution System.

November 2004- Introduced new General Manager Jay Winner, made a statement concerning PSOP, sent letter to Congressional Delegation stopping PSOP from proceeding during the Lame Duck Session.

December 2004- Sent letter to Congressional Delegation and Elects concerning PSOP issues, committed to lease 257 shares of Twin Lake water at $300 per share down from $700 per share and received a Conservation Easement from Dr. Zacher.

OFFICIAL DISTRICT BUSINESS:

Oath of Office: Notary Kim Chavez swore in the newly appointed Directors and notarized each Oath of Office Statement.

Election: General Manager Winner announced a re-organization meeting of the Board is needed to elect Board Officers. General Manager Winner heard nominations for Chairman of the Board. Director Mauch noted that he would be stepping down from the Chairman position. Directors of the Board each thanked Director Mauch for all he has done in the last two years on the Board. Director Mauch nominated Pete Moore for the Chairman position. Director Esquibel nominated John Singletary for the Chairman position, seconded by Director Kennedy. Director Singletary was elected on a 5-1 vote. Director John Singletary will be the Chairman of the 2005 LAVWCD Board. General Manager Winner opened the floor for nominations of Vice-Chairman. Director Whittaker nominated Pete Moore, seconded by Director Esquibel. Director Moore was elected as Vice-Chairman. General Manager Winner opened the floor for Treasurer nominations. Vice-Chairman Moore nominated Ollie Ridley, seconded by Director Kennedy. Director Ridley declined. Director Mauch nominated Wayne Whittaker, seconded by Director Esquibel. Director Whittaker was elected as Treasurer. General Manager Winner opened the floor for nominations of Secretary. Director Whittaker nominated Ollie Ridley, seconded by Director Esquibel. Director Ridley was elected as Secretary.

Legal Posting: Pursuant to C.R.S. 32-1-903(1), the Board must designate and post the time and place for all Board meetings. The Board must also pass a resolution at the first regular meeting and if designated posting place has changed, state the reason for change in time or place. Posting will be in three different areas, Otero County Courthouse, 801 Swink Avenue, and Rocky Ford City Hall. Director Esquibel moved, to adoption the resolution for the Regular Board Meeting time to be 10:30 A.M. on the 2nd Wednesday of each month with the Executive Session beginning at 9:30 A.M., seconded by Chairman Singletary. Motion unanimously carried.

APPROVAL OF MINUTES:

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of December was included in the Board's Monthly Meeting Packet. He reported that December total revenues at $23,730.46 with expenditures totaling $54,482.11. The Board examined the Financial Statement, whereupon a motion was made by Director Whittaker to accept the December Financial Statement, seconded by Director Moore and carried unanimously.

GENERAL MANAGER'S REPORT:

Packet Changes: General Manager Winner announced to the Board that he would like to re-arrange the Board meeting packet. He suggests starting the agenda with Public Comment then Old Business, New Business, General Manager's Report and Committee Reports. He also noted that he would like to shorten the packet to about 20-25 pages.

Chairman Singletary suggests that the information removed from the Board meeting packet be available to the Directors before the meeting. He also suggests keeping the meeting consistent with the meeting agenda and time.

Director Whittaker suggests having the agenda separate from the packet.

Director Esquibel asked that the Directors only receive articles that need discussed during the Board meeting.

Vice-Chair Moore asked that the packet tabs correspond with the agenda.

Twin Lakes Leases: General Manager Winner announced that LAVWCD has now leased from various owners 287 shares of Twin Lakes water and that he will contact Gerald Jordan for more water. LAVWCD is leasing the water at a cost of $300 per share.

Legal Services Contract: General Manager Winner asked the Board whether they would like to continue the contract with Trout, Witwer & Freeman for legal services and monitoring Water Legislation through Colorado Water Congress. Director Esquibel moved to continue the contract with Trout, Witwer & Freeman, seconded by Director Kennedy. Motion unanimously carried.

Chairman Singletary announced that anyone is welcome to the meeting that will be held with the leadership of both houses of the legislature within the next couple of weeks. He asked that General Manager Winner set it up.

Director Whittaker asked that the bill from Trout, Witwer & Freeman reflect the total charge and the District's proration portion of the charges.

Review of District Bills: General Manager Winner announced that he would like to hold the District's bills in the amount of $500 or more until after the 15th of the month to have the Directors review them.

Director Esquibel asked that only Treasurer Whittaker, Chairman Singletary and General Manager Winner review the bills unless they believe it should be reviewed by all Directors.

Video Presentations: General Manager Winner announced that two video presentations occurred during December. The first presentation was held at the Crowley County Heritage Center in Crowley where 19 people were present. The second video presentation was held in Rocky Ford at the Boys and Girls Club with about 25 children present. He reported that since the presentation in Crowley, LAVWCD has received six conservation easements.

General Manager Winner announced that he plans on having the District video translated into Spanish for the Spanish community and a separate video made for children. He would like to visit all local schools K-12 within the next year to talk about water issues. A coloring book in Spanish and English for children is also an idea to be presented. The goal is to get the word of conserving water to the parents.

Director Esquibel stated that the video and coloring books are a good idea for the children.

Meetings: General Manager Winner reported that he recently attended a meeting with Jim Broderick and Alan Hamel to discuss water and PSOP legislation. The outcome of the meeting was to form a committee of two people from the Lower Water Conservancy District, two people from the Upper Water Conservancy District and two people from the Southeastern Water Conservancy District. The first meeting will be on February 3, 2005. The discussion of the meeting will cover the purpose of the meeting, the structure of the meeting and where they want to go to. He suggests that Chairman Singletary and Vice-Chairman Moore attend the meeting. He would like everyone from each District to be on the same page and to work on moving PSOP forward.

General Manager Winner announced that another meeting is set on February 1, 2005 with Colorado Springs Mayor Lionel Rivera and Vice-Mayor Richard Skorman at the Pueblo County Courthouse to discuss PSOP. He asked that Chairman Singletary and Vice-Chairman Moore attend this meeting.

Selenium: General Manager Winner reported on a meeting he attended the day before with Water Quality on Selenium. He presented a map and explained where and why Selenium is becoming a factor in the Lower Arkansas Valley.

Director Whittaker further discussed the map and the circular system of water to and from Colorado Springs and down the Fountain. He explained how the return flows from Fountain Creek pick up additional Selenium. He further explained how Colorado Springs can use some of the transmountain water to extinction.

General Manager Winner noted that with green water coming down the Fountain from Colorado Springs more Selenium is put into the Lower Arkansas Valley water and that the cities of Rocky Ford and La Junta will be the ones having to clean the water. He asked that Selenium be looked at in studies of Water Quality.

COMMITTEE REPORTS:

Water Acquisition- General Manager Winner reported that Shannon Torgler did not believe LAVWCD offered enough for Twin Lakes shares. He has a few negotiations to discuss in Executive Session.
He reported that the lease on Bessemer farm has been executed for five years.

Director Whittaker reported that the Larkspur snow pack has been good.

LEGAL REPORT:

High Plains A&M- High Plains A & M has been denied by the Supreme Court on their request to consolidate appeals and the Court gave no reason for the denial. The High Plains briefs are due on Friday, January 14, 2005.

Attorney, Mendenhall noted that the easement with Dr. Zacher has been completed and was recorded with the Huerfano County Clerk and Recorder. He would like to discuss the matter further in Executive Session.

He reported that he attended the presentation given by Ed Smith the General Manager of the Palo Verde Irrigation District and that he reviewed the contracts involved with their agreement with Los Angeles.

He announced that he has made arrangements for Trish Flood of Wright Water Engineers to attend the Fort Lyon Canal Company Board meeting this day of Wednesday, January 12, 2004. She will arrange a visit to meet with their General Manager Manny Torres about the operation of the ditch and engineering information of the appraisal.

Director Whittaker moved to direct Attorney Mendenhall to file a statement of opposition in the Upper Arkansas Valley Water Conservancy District's Case for exchange, seconded by Director Kennedy. Motion unanimously carried.

Attorney Mendenhall noted that LAVWCD had received a response from the Secretary of State to waive the late reporting penalty and donate the funds to a 501 (c) (3) entity. He asked the Board if they wished to approve a proration to donate the funds to a 501 (c) (3).

Chairman Singletary noted that they would want a receipt, cancelled check or a type of confirmation from Mr. Chuck Ford for the 501 (c) (3) entity to be chosen for the funds.

Director Kennedy motioned to recommend the District donate the Campaign funds to a 501 (c) (3) entity; the Tamarisk Coalition, seconded by Director Ridley. Motion unanimously carried.

OLD BUSINESS:

General Manager Winner reported that the Internal Revenue Service changed the optional standard mileage rates from 37.5 cents per mile to 40.7 cents per mile.

Director Mauch motioned to accept the 40.7 cents per mile up from 37.5 cents per mile, seconded by Vice-Chair Moore and carried unanimously.

Director Mauch moved to adopt a resolution to authorize Treasurer Whittaker to sign checks, seconded by Director Esquibel. Motion unanimously carried.

NEW BUSINESS:

Matt Heimerich- Crowley County Commissioner Matt Heimerich thanked the Board for their support with the Tile Drain Systems and noted that Director Whittaker recently attended the meeting of the Lower Arkansas Valley Improvement Association which discussed Selenium. He briefly voiced his concerns on Selenium and the effect it has on the Western United States.

Mr. Heimerich noted that he attended a meeting concerning PSOP with General Manager Winner, Alan Hamel and Jim Broderick and that the meeting was very productive.

He believes it is important that everyone is involved and can work together. He reported that he had supplied Winner with a few PSOP highlights and four IGA's that the Board was interested in. The first IGA being with Upper Arkansas Water District, Aurora and Southeast; second, Southeast and City of Aurora; third, City of Aurora and Otero County; finally, City of Pueblo, Southeast, Fountain, Colorado Springs Utilities, Pueblo Board of Water Works and Colorado Canal..

Mr. Heimerich announced that water storage is needed and that he supports enlargement of Lake Pueblo and Turquoise Lake. His opinion is that a small community can only afford storage by teaming up with a larger city. He urged the LAVWCD Board to support PSOP to enlarge Lake Pueblo and Turquoise Lake to use the Fry-Ark Project to store non-project water.

Chairman Singletary noted that the LAVWCD is not here to be obstructionists but to make sure the Lower Arkansas Valley will have a future in 50 years.

Director Kennedy noted that LAVWCD does not oppose storage; just the way the legislation was written. Environmental, economic and legislative concerns need to be ironed out.

Vice-Chair Moore reported that the Lower Water District must be regarded as equal to Colorado Springs and Southeastern Water Conservancy District. He noted that the people in the lower valley are hard working people and that the continuing veiled threats must stop.

Chairman Singletary announced that LAVWCD is taking the next step to be involved in the legislation.

Director Whittaker announced that the Bureau of Reclamation and cities that control the Fry-Ark Operations have done what they wanted for years like long-term excess storage contracts in which PSOP formalizes. He noted that LAVWCD's issue is not with PSOP, but with the legislation of things not in the project.

PUBLIC COMMENT:
Mr. John Rose noted how pleased he is with the Lower Arkansas Valley Water Conservancy District and thanked them for what they have done and what they will do in the future.

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Esquibel moved that the Board convene into Executive Session after a five minutes recess, seconded by Director Whittaker. Motion unanimously carried. Chairman Singletary recessed the District meeting at 11:43 A.M. to convene the Executive Session at 11:52 A.M.

C.R.S. 24-6-402(4)(a): "Concerning the purchase, acquisition, lease, transfer, or sales of any real, personal, or other property interest."

C.R.S. 24-6-402(4)(b): "Conferences with an attorney for the public entity for the purposes of receiving legal advice on specific legal question."

C.R.S. 24-6-402(4)(e): "Determining positions relative to matters that be subject to negotiations; developing strategy for negotiations; and instructing negotiators."

To discuss the following matters:

The presence of the following persons was requested at this Executive Session:

Chairman Singletary adjourned the Executive Session at 12:56 P.M, and reconvened the District Meeting at 12:57 P.M.

REPORT FROM EXECUTIVE SESSION:

Mr. Bart Mendenhall reported the Executive Session covered the following issues:

MOTIONS OUT OF EXECUTIVE SESSION:

Chairman Singletary said there were recommendations from Executive Session.

1. Director Kennedy moved to accept the requirements concerning the acceptance of an easement outside the District's boundaries and that the acquisition is necessary, seconded by Vice-Chairman Moore. Motion unanimously carried.

ADJOURNED:
Chairman Singletary asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Esquibel, seconded by Director Whittaker to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 1:06 P.M.