February 8, 2006 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, February 8, 2006 at 10:00AM, at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Singletary announced a quorum was present.

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

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Administrative Assistant
Peter Nichols-Water Attorney

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Moore moved that the Board convene into the Water Activity Enterprise, seconded by Director Mauch. Motion unanimously carried.

At the conclusion of the Water Activity Enterprise meeting Director Esquibel moved to reconvene the District Meeting at 10:04 A.M., seconded by Director Kennedy. 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:
Fred Heckman, Farmer; Dannie McMillan, City of Lamar; Virgil Cochran, Southeast Colorado Land & Environment; Carl McClure, Farmer; Ken Weber; Doris Morgan, Senator Allard's office; Alan Ward, Pueblo Board of Water Works; John Rose, Rural Water Providers; Shelly Van Landingham, Colorado State Forest Service; Chris Woodka, Pueblo Chieftain; Matt Heimerich, Crowley County Commissioner; Kelly Roesch, High Plains; Gerald Knapp, Aurora; Brenda Fillmore, AGUA; Pat Edelmann, USGS; Jake & Sheila Norton, Fowler 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 January was included in the Board's Monthly Meeting Packet. He reported that January total revenues of $17,992.38 and total expenditures of $168,579.84. Director Whittaker moved to accept the January Financial Statement, seconded by Director Mauch and carried unanimously.

GM REPORT:
General Manager Winner gave a brief update on the District assets of water, conservation easements and the purchase of the office building.

General Manager Winner reported that the Forest Service with the Larkspur Ditch is requesting an Operating and Maintenance plan along with a bond which General Manager Winner would like to visit with them concerning the bond. He noted that he would also like to visit with Senator Salazar, Senator Allard and Congressman Salazar concerning the Forest Service and ditch issues. He stated that is seems the Forest Service and ditches have become an issue at a federal level.

He noted that the Colorado Springs and Aurora filings are here and that the District is talking with them about setting the filings aside due to the impact it has on the Arkansas Valley Conduit. He added that at this point the success rate is at about 75% in getting them to pull the filings and he believes it can be done.

General Manager Winner reported that the memo of understanding for the Bent Conservation District is well outlined for the expectations of the District.

He reported that he has found a possible conservation easement in Pueblo with three different properties. He noted that two of the properties would make nice conservation easements but the third probably would not. All properties will possibly be included together. He then asked the Board for their input on the easements.

Director Moore suggests looking at the purpose of the easements. If they meet the requirements of the mission he believes the District should accept them.

General Manager Winner added that the appraisal should reflect the property he does not believe would make a good conservation easement. Additional discussion followed on the properties.

He stated that the water quality proposal from Colorado State University along with USGS information will tell about Fountain Creek. This part of the proposal reflects the Preferred Storage Options Plan (PSOP) negotiations.

PRESENTATIONS:
Shelly VanLandingham- Shelly VanLandingham with the Forest Service gave a brief PowerPoint presentation on the eradication of tamarisk along the Purgatoire River and noted that the mission of the Forest service is to restore the native riparian communities of the Purgatoire River by removing non-native species such as tamarisk to protect water resources, native riparian communities, protect from wildfire, and enhance agricultural production.

Pat Edelmann- Pat Edelmann with USGS gave a brief PowerPoint presentation on the water flow in the Arkansas River for 2005 and an update on the snow water equivalent. He reported on the long term variations of Salinity in Fountain Creek and the long term variations in the Arkansas River between Pueblo and Las Animas. He then reported on the estimated annual average Salinity loads between years 2000 and 2005.

PRESIDENT'S REPORT:
Chairman Singletary praised the District staff on a job well done with the Arkansas Valley Farm/Ranch/Water Symposium held on February 2, 2006 and the attendance to the Colorado Water Congress Convention on January 26th and 27th.

Chairman Singletary said that General Manager Winner, Attorney Nichols and he have talked concerning the different pieces of legislation on land fallowing and water quality and that they have been in contact with Representative McFadyen on her water quality bill. She has been helpful to write some of the language to ensure the agricultural entities and each basin will be protected.

Chairman Singletary then reported that last year there was a lot of appropriate action between the PSOP entities in terms of trying to come up with an equation that will ensure the survivability of the lower Arkansas valley. He said there has been progress with Colorado Springs and Aurora and hopefully they will be able to move along soon with the talks.

He then reported on the water quality proposal with CSU-Pueblo and stated that District members have met with them and they seem to be going in the right direction.

He said that with the PSOP talks the last several months the attorney's from the Pueblo Board of Water Works, SECWCD, Colorado Springs, Aurora and LAVWCD have been at the table going over what the District thought was important at the 2005 retreat and that some things have changed. He noted that the overall affect has not changed but the way they are written has changed because it had to be flexible and realistic for everyone.

He reported that they are getting closer on the water management program and that it was delayed due to the Colorado Springs and Aurora filings.

Director Whittaker commented that he had asked General Manager Winner about the exchange capacity for the Conduit.

Chairman Singletary responded saying that there are major issues such as water fallowing and water quality but that the Districts commitment to the Conduit is the exchange capacity and that he believes the District input has been valuable in the re-write of the language of the SECWCD proposal for legislation.

PUBLIC COMMENT:
John Rose noted that it was said Attorney Nichols gave a speech in a recent meeting in Colorado Springs and that his main topics were directed toward the land fallowing/leasing program and Biodiesel. He wanted to know whether his speech was restricted to land fallowing and Biodiesel and whether the District is holding information on the PSOP negotiations.

Chairman Singletary reported that Attorney Nichols' speech was not restricted to those subjects and that the District has nothing to hide. The District wants to keep a limit to Aurora and Colorado Springs on removing water from the Lower Arkansas Valley.

He noted that ditch companies will also be a part of the land fallowing program. The program will be an independent entity based on a model reflecting who used water last and taking in as much consideration as the District did with the winter water program. They are trying to get an infusion of cash so people can monitor and utilize their water rights and this will also restrict the entities such as Aurora, Colorado Springs and others of coming to get water except through a good model that the District hopes will not damage the valley any further.

He briefly commented on Biodiesel saying that it would help the agricultural community and Country. He also stated that the District is not trying to control the land management or Biodiesel programs, but to help in securing authority and funds.

General Manager Winner reported that Peter Nichols also covered water quality, water quantity, Fountain Creek, Storage and other topics at the meeting held in Colorado Springs.

Chairman Singletary added that the Conduit is at the top of the Districts list and feels it is important to protect the Conduit as it goes through legislation.

John Rose noted that he believes it would benefit the District and the valley to speak openly of the PSOP negotiations and that the information needs to be shared with the public.

Director Moore commented that he could not disagree more to have the negotiations open to the public.

Chairman Singletary assured John Rose that the District is not trying to hide anything and that the legislation has been talked about in many of the past Board meetings openly. He assured John Rose that the details of the agreements would be made public before they become final. He noted that many parts of the legislation such as land management and the Biodiesel programs are still being discussed.

COMMITTEE REPORTS:
Personnel: Director Kennedy reported that at the Personnel Committee Meeting on January 11, 2006 General Manager Winner was given a performance review and that he has high scores. He has performed above and beyond expectations.

Liaison: Director Kennedy briefly reported on the Arkansas Valley Farm/Ranch/Water Symposium on February 2, 2006 and that it went very well and was very productive.

Director Kennedy reported that she has visited with Mr. Stutzman from CoBank about the agricultural interests in Colorado and she would like to have Jack Cassidy come and speak at one of the District Board meetings to see what they may have to offer.

Legal: Director Esquibel briefly commented and updated on the Continuing Legal Education (CLE) program.

LEGAL REPORT:
Attorney Mendenhall reported that the District has been continuing to clean up the files of conservation easements and prepare packages of original documents for the District to maintain for its long term monitoring of the easements. He reported that one of the Districts properties has sold and that they are working with the previous owner to make the new owner aware of his obligation to maintain liability insurance naming the District as an additional insured.

Attorney Mendenhall noted that he attended the Farm/Ranch/Water Symposium on February 2, 2006 and that in discussion with attendees there was a near unanimous agreement that leasing would be preferred over sale and the option they would likely prefer. He added that many farmers present at the Symposium felt that a unified front of the many ditches was the best.

Attorney Mendenhall noted that the Board should be aware that Amendment 38 is on the November ballot and that if it should pass there will be many new burdens and requirements placed on the District concerning citizen initiated petitions and referendum issues. He then discussed a few of the other issues with Amendment 38.

Additionally, Attorney Mendenhall reported that the District is working on an agreement with Mr. & Mrs. White for the rehabilitation of their conservation easement that will set forth the terms under which the District will work with them and for protection of the District as well.

Director Kennedy noted that the January 11, 2006 Board meeting reflected discussion on the PSOP negotiations and that Attorney Nichols had attended that meeting to discuss the PSOP negotiations.

PUBLIC COMMENT:
Matt Heimerich, Crowley County Commissioner congratulated Director Gill on his being appointed to the Board of Directors.

Virgil Cochran, Southeast Colorado Land and Environment said he agrees with both ends of the PSOP negotiations but suggests that at the end of each negotiation to disclose the information to the public.

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 Mauch to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:26 A.M.