January 17, 2007 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, January 17, 2007 at 10:00 AM, at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Singletary announced a quorum was present with an excused absence being given to Director Mauch.

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

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Bill Hancock-Conservation Program Manager
Kim Chavez-Financial Coordinator
Rachel Bogner-Administrative Assistant

General Manager Winner began by requesting a motion to post the legal postings of the District meetings at 801 Swink Ave, Rocky Ford, CO 81067 and will be held every third Wednesday of the month with the General Meeting beginning at 10:00 a.m. Director Mauch moved to post the legal postings at the above location and Director Whittaker seconded the motion. Motion unanimously carried.

The committee moved to the next order of business of the election of the 2007 District officers. Director Kennedy moved to keep the present officers, seconded by Director Gill. Motion unanimously carried.

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:

Director Whittaker moved that the Board convene into the Water Activity Enterprise, seconded by Director Gill. Motion unanimously carried.

At the conclusion of the Water Activity Enterprise meeting Director Gill moved to reconvene the District Meeting at 10:09 A.M., seconded by Director Esquibel. Motion unanimously carried.

INTRODUCTION OF VISITORS:

Chairman Singletary welcomed each of the visitors to the meeting, asked them to introduce themselves and identify the organization which they represent.

VISITORS PRESENT:

Rebecca Mitchell, HDR Engineering; George Oamek, HDR Engineering; Jerry Kenny, HDR Engineering; Gilbert Werdel, Larkspur Maintenance; Chris Woodka, Pueblo Chieftain; Ken Weber; Del Nimmo, Colorado State University (CSU) – Pueblo/Biology; Adrian Hart, La Junta Tribune Democrat; Virgil Cochran, SE Land and Environment; Alan Ward, Pueblo Board of Water Works; Steve Witte, Division Engineer; Doug Montgomery, City of Lamar; Dan Henrichs, Highline Canal; Kelly Roesch, High Plains A&M; Sal Pace, Senator Salazar’s office-Pueblo; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Tom Musgrove, USBR; Roy Vaughan, USBR; and Allison Cortner, Senator Salazar’s office-Pueblo.

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 December total revenues of $201,574.40 and total expenditures of $275,401.12. Director Whittaker moved to accept the December Financial Statement, seconded by Director Esquibel and carried unanimously.

GM REPORT:

General Manager Winner introduced Peter Nichols to discuss the Voluntary Water Management Program.

PRESENTATIONS:

Peter Nichols – Peter Nichols of Trout, Raley, Montano, Witwer & Freeman, P.C., stated that the goal of the program was for irrigators to lease water to others on long term basis instead of selling and drying up the land. He stated that the canal companies that were eligible to participate included: Rocky Ford, Otero, Catlin, Holbrook, Fort Lyon, Bessemer and the Oxford. Under each ditch there are many shareholders, which are considered may “supply” water for in the program. Attorney Nichols stated that on the other hand there is demand or from entities who would like to lease the water.

Attorney Nichols stated that this program is an alternative to taking water out of the Arkansas Valley permanently. This program, known as the “Super Ditch Company,” would match demands with supply. The program would have the Super Ditch Company negotiate leasing contracts from shareholders who are willing to participate and will flow water to demand as the demand arises. The Super Ditch Company would be a separate entity and would be controlled by the ditch shareholders.

Chairman Singletary stated that in Pala Verde, only a percentage of shares can be used in the program to ensure agriculture integrity.

Attorney Nichols stated that the Super Ditch Company would determine the who, when, and where land would be fallowed during which year and the fallowing would alternate.

Attorney Nichols also stated that this program is set up to not force farmers into the leasing program, but to allow them the choice to participate.

General Manager Winner introduced Jerry Kenny and George Oamek of HDR Engineering.

Jerry Kenny: Jerry Kenny of HDR Engineering gave a presentation on the Lower Arkansas Valley Water Leasing Feasibility Study. To begin, he introduced the Project Team members, though not all were present at the meeting. They included Rebecca Mitchell, Mary Kay Provaznik, Seth Turner, and Tara Fishbain.

Mr. Kenny then covered information presented from July 2006’s presentation before presenting information from the current study. The current study of information will include:

Mr. Kenny gave a refined estimate of available yield, water rights, water rights with diversion, yield estimate for each canal available to participate in the project, a summary of annual yields for a wet, average, dry and extreme dry year.

Mr. Kenny presented information from the initial summary vs. the current summary of annual yields and lastly covered stream flows.

Mr. Kenny turned the presentation over to George Oamek.

George Oamek: George Oamek, an economic consultant for HDR Engineering, presenting information on Economic Assessment for the project.

Mr. Oamek began his presentation with the purpose of the assessment:

Mr. Oamek continued with willing sellers:

Next he covered willing buyers:

Mr. Oamek then covered Data Sources:

Irrigation –

Potential Buyers –

The last topic covered was Regional Economic Impact:

After a brief Question and Anwer session, General Manager Winner introduced the next presenter as Sal Pace from Senator Salazar’s Office.

Sal Pace: Sal Pace stated that Senator Salazar is working on a stand alone bill concerning the Conduit. He stated that Senator Salazar continues to be on the Ag Committee and the committee is rewriting the farm bill. He also stated that the Senator is looking for information from the Lower Arkansas Valley.

Sal Pace brought forth a draft on PSOP. He went through each point that had changed from the previous draft. Some changes were made to Section 1(c), (d), and (e); Section 2 was completely revised; Section 3 was changed in attempt to put the program in the States hands instead of Federal hands; Section 4 was not changed, but was a different section in the previous draft; Section 5 mostly came from the previous drafts and the Senator will be meeting with the water advisory committee about this section.

Sal Pace stated that if the Board were to have any questions or suggestions on the draft to contact him directly.

GM REPORT:

General Manager reported The Colorado Water Conservation Board would be making available $1.5 million in the 2008 fiscal year and they would like to meet one on one about the fallowing leasing program.

General Manager Winner stated he had visited with Kiowa County about inclusion. They want help with problems in their county but need to become district members for more assistance.

PRESIDENT’S REPORT:

Chairman Singletary stated that things were moving forward with Colorado Springs on the Fountain Creek issue.

Chairman Singletary reported that he had visited with lobbyists because there are roughly thirteen (13) bills being introduced that may impact the District. He requested to have permission to engage a lobbyist. Peter Nichols was given instructions to follow up on the assistance from a lobbyist.

Chairman Singletary stated that the District had sent a letter to the Southeast District on 5149 Allocation Principles.

Chairman Singletary thanked the District staff for their work on conservation easement seminars.

Chairman Singletary reported that the Aurora contract should be available for review by March.

LEGISLATION REPORT:

Attorney Peter Nichols reported that the democrats are in control and are moving quickly. He stated that there are many bills being presented to the legislature.

Attorney Nichols went over the House Bills relating to the District. There were:

Attorney Nichols discussed the possibility of hiring a lobbyist. He recommended authorizing John to retain a contract lobbyist for legislation session which had been spoken to that meet District criteria. Director Whittaker moved to have a lobbyist and public affairs consultant to not exceed $25,000 each position. The motion was seconded by Director Kennedy and carried unanimously.

Attorney Nichols mentioned the Farm Ranch Water Symposium & Trade Show that would take place on February 1, 2007 and would cover the topic of the “Super Ditch” for introduction to the public.

Attorney Nichols discussed the program that used to be known as PSOP. He stated that the Districts issues have become regional water issues.

Attorney Nichols stated the Colorado Springs agreement has fallen apart.

Attorney Nichols said that an agreement had been reached with most entities on Regional IGA.

Attorney Nichols stated that he had met with Colorado Springs and Fountain Creek and they had agreed to support hiring a coordinator to get the master plan for Fountain Creek to cover all the issues with Fountain Creek. He suggested the District make a motion that would approve the Fountain Creek project and both the District and Colorado Springs each funding $150,000 to hire the coordinator.

Chairman Singletary suggested having the agreement being a signed agreement.

Director Kennedy made the motion to allow Chairman Singletary enter into the MOU to get Fountain Creek moving forward with $150,000 used to hire a coordinator. Motion made by Director Whittaker, seconded by Director Moore. Director Esquibel included that this motion furthers the Districts mission. The motion carried unanimously.

Attorney Nichols requested the Board make a motion to authorize him to file statements with case 06CW101. Director Moore moved to authorize Attorney Nichols to file statements with the case. The motion was seconded by Director Mauch. Motion carried unanimously.

Chairman Singletary mentioned that the wife of Bob Jackson had died and that a donation was sent in her name to the Pueblo Zoo.

COMMITTEE REPORTS:

Personnel: Director Kennedy had nothing to report.

Liaison: Director Kennedy reported on Lake County. Stated had a phone conference on December 22, 2006 with herself, Ken Olsen, and others from their board. She stated that Lake County participated with the Upper District and were impressed with them, though Lake County is concerned their need are not being met. Their concerns include water quality and maintaining their fisheries. Another concern Lake County has is that the Upper District wants back taxes to be paid by Lake County. Director Kennedy stated she believes Lake County would be a good fit for LAVWCD. She reported that Lake County will be in contact to see what the next step is.

Legal: Director Esquibel had nothing to report.

LEGAL REPORT:

Attorney Bart Mendenhall thanked Kim Chavez for her had work with the Conservation Easement CLE Seminar. Attorney Mendenhall stated that a good example given at the seminar was that a conservation easement was unable to get subordination since the bank members were on vacation at the end of the year. It made a good example at the CLE that individuals attempting to complete a Conservation Easement should not wait until the last minute.

Attorney Mendenhall requested that the District keep in mind when notices and agendas are posted that it needs to state action will be taken.

Director Moore stated the name of those who would be the 2007 officers for LAVWCD. They are:

PUBLIC COMMENT:

There were no public comments.

ADJOURNED:

Chairman Singletary asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Mauch, seconded by Director Esquibel to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 12:19 P.M.