March 9 , 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, March 9, 2005 at 9:30AM, 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
Leroy Mauch
Melissa Esquibel

DIRECTORS EXCUSED:
Ollie Ridley-Secretary
Loretta Kennedy

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

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Esquibel moved that the Board convene into Executive Session under the C.R.S. sections for the following purposes, seconded by Director Whittaker. Motion unanimously carried. Chairman Singletary recessed the District meeting at 9:34 A.M. to convene the Executive Session at 9:36 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."
• C.R.S. 24-6-402(4)(f): "Personnel matters except if the employee who is the subject of the executive session has requested an open meeting, or if the personnel matter involves more than one employee, all of the employees must request an open meeting."

To discuss the following matters:

• Legal advice
• Negotiation matters
• Personnel matters

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

• Board Members Present
• District Staff
• Counsel for the District

Chairman Singletary adjourned the Executive Session at 10:27 A.M, and reconvened the District Meeting at 10:36 A.M.

REPORT FROM EXECUTIVE SESSION:

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

• Matters concerning legal advice
• Negotiation matters
• Personnel matters

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

At the conclusion of the Water Activity Enterprise meeting Director Esquibel moved to reconvene the District Meeting at 10:37 A.M., seconded by Director Mauch. 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 they represented.

VISITORS PRESENT:
Ross Manley, Senator Allard; Rodney Baird, La Junta Tribune Democrat; Steve Witte, Division of Water Resources; Cathy Garcia, Action 22; Dale Baker, CWPDA; Paul Westhoff, CDOT; Brian Taylor, AVRWP; Carl McClure, Town of Olney Springs; Roy Vaughan, U.S.B.R.; John Knapp, NRCS-USDA; Kelly Roesch, High Plains A&M; Phil Reynolds, SECWCD; Alan Hamel, Pueblo Board of Water Works; Richard White; Grimsley White, LLC; Brenda Fillmore, AGUA; Dannie McMillan, City of Lamar; Virgil Cochran, Lamar Daily News; John Wilkens-Wells and Lauren Grasmick, CSU; Gary Bostrom and Wayne Basher, Colorado Springs Utilities.

APPROVAL OF MINUTES:
February 9, 2005 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the February 9, 2005 Board Meeting, and whether there were any corrections or additions. Director Esquibel moved to approve the February 9, 2005 Board Meeting Minutes, seconded by Director Mauch. Motion unanimously carried.

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of February was included in the Board's Monthly Meeting Packet. He reported that February total revenues at $100,850.19 with expenditures totaling $54,802.26. Director Whittaker moved to accept the February Financial Statement, seconded by Director Esquibel and carried unanimously.

AUDITORS REPORT:
Richard White-Grimsley White & Company reported that the 2004 Financial Statements were reasonable and that the format had changed. He gave a handout booklet on the 2004 Financial Statements and briefly reviewed the difference in revenues and expenditures between 2003 and 2004. He noted that the property tax had lowered and not much change had occurred in the Proprietary Fund.

PRESENTATIONS:
John Wilkens-Wells-Colorado State University came before the Board to discuss the progress being made in the Lower Arkansas Valley Drainage System Rehabilitation Project with the Tile Drains. He gave a handout and a brief PowerPoint presentation on how they locate the drains, the cost analysis and mapping of the tile drains and the problems of discharge with the tile drains. He noted that they plan to locate the drains by the end of the summer. Once they have located the drains they then plan to clean, repair and improve them.

Chairman Singletary asked Mr. Wells to review what improvements would come about if the drains were repaired.

John Wilkens-Wells said better soils, lower salinity, better water quality, a decrease in flooding, better landscapes and better drainage.

Gary Bostrom-Colorado Springs Utilities came to talk about Regional Cooperative Efforts, Existing Cooperative Efforts, Elements of the Cooperative Process and Future Cooperative Efforts. He reported that they have a Historic Partnership with Pueblo Board of Water Works, City of Aurora and the Fountain Creek Watershed. He noted that Colorado Springs Utilities is currently pursuing the Southern Delivery System and wants to work together to address the PSOP legislation, using the Pueblo Reservoir more efficiently, water banking and addressing water quality issues.

Steve Witte-Colorado Division of Water Resources gave a handout of the Arkansas River Basin Snow pack and Winter Water Program Report. He reported that 2,000 acre feet will need to be delivered to the offset account in John Martin Reservoir after March 15th for the first deposit. He stated that the deficit can be made through a series of exchanges.

John Knapp-NRCS & RC&D reported that over 100 new irrigation improvements are in progress between Pueblo and Lamar. He stated that Pueblo County has 16 new irrigation improvements; Rocky Ford, 35; Las Animas, 15 and Holly and Lamar, 45.

He noted that since LAVWCD had financially sponsored and taken leadership of the Bent County Tamarisk & Working Group the USDA can now support the financial aid through a program called the Wildlife Habitat Improvement Program and focus some of the cost share dollars toward Prowers, Bent and Otero Counties.

He announced that the USDA is wanting to create a sign up period for producers and land owners with Tamarisk issues to speak with them and sign up for a conservation plan or contract to apply for a private program where USDA would supply up to 75% of the cost share over a 3-4 year period.

He reported that RC&D will have a meeting next Tuesday, March 15, 2005 in the La Junta office and the meeting will be based on the Tamarisk technical research at Bents Old Fort.

Chairman Singletary asked Mr. Knapp to perhaps get back with the Board on ways the District can assist the agricultural community through transformation, agricultural practices and new direction.

Alan Hamel- Pueblo Board of Water Works-Chairman Singletary thanked Mr. Hamel and the Pueblo Board of Water Works for their effort in making water available to LAVWCD to help in the deficit owed to Kansas.

COMMITTEE REPORTS:
Water Acquisition- General Manager Winner reported that he had finalized the purchase of 80 shares of Colorado Canal yesterday and is working on trading the shares for Twin Lakes water by the end of the month.

General Manager Winner announced that LAVWCD has leased 279 shares year to date and has re-leased 213 shares. He noted that LAVWCD currently owns 443 shares of Colorado Canal, Twin Lakes, Catlin Canal, Fort Lyon Canal and Bessemer water.

He reported that the Jordan appraisal is done and the Fort Lyon rough draft appraisal is done.

GM REPORT:
General Manager Winner reported that the talks with Colorado Springs, Pueblo Board of Water Works and SECWCD have went well and they are moving to the next level starting with a meeting on March 10, 2005 with himself, Peter Nichols, Dave Rawlings and Gary Bostrom.

On April 14, 2005 Paul Flack, Colorado State Parks will be attending a meeting at the Best Western Bents Fort Inn in Las Animas, CO and would like the Board to attend.

On April 11-13, 2005 the District Board has been invited to attend the Natural Water Resource Meeting in Washington D.C.

General Manager Winner asked the Board of Directors for their endorsement on sending a letter concerning PSOP to the Congressional Delegation.

Director Whittaker moved to send the letter concerning PSOP to the Congressional Delegation, seconded by Director Esquibel. Motion unanimously carried.

Financial Coordinator Chavez reported that the 2nd Annual Irrigation Expo sponsored by Teeter Irrigation and co-sponsored by LAVWCD will be held from 9:00 A.M.-4:00 P.M. March 10, 2005 at the Rocky Ford Fairground 4-H Building. She announced that a free lunch will be provided and that the following vendors will be attending: TLM Constructors Inc., Pipeyard, Inc., Jigot Aqua Solutions and a few vendors from Teeter Irrigation.

Chairman Singletary thanked the City of Rocky Ford for allowing LAVWCD to use the space of the 4-H Building for the Irrigation Expo.

Legal- Director Esquibel moved that legal counsel be granted the ability to intervene in any pending litigation that would be beneficial to the District, seconded by Director Whittaker. Motion unanimously carried.

Liaison-Chairman Singletary and Director Esquibel reported that Peter Nichols has done well at informing the district on any legislative issues.

LEGAL REPORT:
High Plains A&M- Attorney Mendenhall reported that the Supreme Court had granted the motion of SECWCD to consolidate the two High Plains cases. It had denied High Plains motion to renew the consolidation of all three cases. The Cache La Poudre Water Users Association, the Thompson Water Users Association, and the Northern Colorado Water Conservancy District had all filed an Amicus Brief with the Court.

He reported that answer briefs had been filed and LAVWCD is waiting for the rebuttal briefs and do not know when oral arguments will be scheduled, but assume the Court will want them.

Attorney Mendenhall noted that the IRS has two agents in Prowers County investigating conservation easements. He added that they seemed interested in anticipated growth rates and anticipated demand for lots. He said they reported they are looking at about one hundred and fifty-five easements.

He recommended not filing any statements of opposition due to the recent resume from Water Court.

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 12:06 P.M.