April 14 , 2004 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, April 14, 2004 at 10:00 A.M., at 801 Swink Avenue, Rocky Ford, Colorado 81067.

President Mauch announced a quorum was present.

DIRECTORS PRESENT:
Leroy Mauch- President
John Singletary-Vice President
Pete Moore-Treasurer
Loretta Kennedy
Melissa Esquibel
Wayne Whittaker

DISTRICT STAFF:
Julie Scaplo-General Manager
Kim Chavez-Administrative Coordinator
Janet Arenas-Temporary Receptionist

EXCUSED:
Ollie Ridley - Secretary

INTRODUCTION OF VISITORS:
Chairman Mauch welcomed each of the visitors during the Water Activity Enterprise meeting. The visitors introduced themselves and identified the organization they represented.

VISITORS PRESENT:
Rodney Baird, La Junta Tribune Democrat; Deora Burns, Rocky Ford Daily Gazette; Phil Reynolds, SECWCD; Anthony Mestas, Pueblo Chieftain; Richard White, Auditor; Terry Tompkins; Doug Melcher, Farmer; Virgil Cochran, Lamar Daily News Kevin Salter, KDA-DWR; Lawrence Schenck, Farmer; Ken Ullom; Easement Applicant; Leroy Brase, Farmer; Ken Cullen, Easement Applicant; Mike Bartolo, CSU Ext Office; Abdel Berrada, CSU Ext Office; Kelly Roesch, High Plains; Steve Miller, Colorado Water Congress Board Member; Luis Garcia, Civil Engineer Colorado State University; Dr. Timothy Gates, Colorado State University; and John LaHadie, Colorado State University.

CHAIRMAN'S REPORT:
Chairman Mauch reported the District held a work session April 1, 2004 to discuss appraisal methodology at the District office 801 Swink, Rocky Ford Colorado. Several landowners planning to donate conservation easements to the District were present in addition to several appraisers.

APPROVAL OF MINUTES:
Chairman Mauch asked if the Board members had reviewed the minutes for the March 10, 2004 Board Meeting, March 25, Special Meeting minutes, March 22, Exclusion Hearing minutes and the March 24, 2004 Special Meeting minutes. Director Mauch asked whether there were any corrections or additions to the minutes. Hearing none, Director John Singletary moved to approve all the minutes presented, seconded by Director Loretta Kennedy. Motion unanimously carried.

TREASURER'S REPORT:
A listing of checks for payment of invoices received following the previous Board meeting was presented to the Board for review. Treasurer Pete Moore reported that the financial report for the month of March was included in the Board's Monthly Meeting Packet. He reported March total revenues at $361,531.28 with expenditures totaling $27,561.04. The Board examined the listing and reviewed the reconciliation of bank accounts for the past month, whereupon a motion was made by Director Moore, seconded by Director Wayne Whittaker and unanimously carried to ratify payment of bills represented by check numbers 1587 through 1621. The approved financial report will be attached as permanent record to the minutes.

ANNUAL AUDIT REPORT:
Mr. Richard White C.P.A., Grimsley White & Company audited the general-purpose financial statements of the Lower Arkansas Valley Water Conservancy District for year ending December 31, 2003. Mr. White thanked the Board for allowing him to conduct the audit. He reported that the audit went very smoothly for the first District audit. The audit was conducted February 26, 27 and March 1, 2004. The annual report is a document containing a detailed amount of information. From an overview perspective, the District remains in a good financial position. The Comprehensive Annual Financial Report is prepared annually as part of the state-required audit by an independent, certified and municipally licensed auditor. The auditor's opinion revealed no significant and unusual transaction entered, and no uncorrected misstatements. The auditor gave an opinion with no reportable conditions, clean audit. During the audit a few opportunities for strengthening internal controls and operating efficiency were identified:

1. Adjusting journal entries should be reviewed and initialed by the General Manager.
2. The General Manager should review and initial all bank reconciliation's each month.

Mr. White gave a summary of the audit report and encouraged the Directors to call him if any questions exist. Director Wayne Whittaker moved to accept the Financial Statement Audit report, seconded by Director Melissa Esquibel. Motion carried. The approved Audit report will be attached as permanent record to the minutes and a copy will be filed with Office of the State Auditor.

GENERAL MANAGER'S REPORT:
General Manager Julie Scaplo discussed the following items:

• Strategic Plan Update: The suggestions regarding the strategic plan were discussed with Leo Eisel; water Engineer for the District, and he will focus on Phase I of the strategic plan. Mr. Eisel has requested ditch bylaws, from which he will provide information regarding Ditch Ranking Criteria by April 26. The Ditch Ranking will be presented at the May 12th Board Meeting.
• Larkspur Update: Gilbert Werdel, who will be providing maintenance of the Larkspur Ditch, videotaped his trip to Larkspur Trans-Mountain Ditch April 12-13, for the purpose of placing the chart recorder. Gilbert Werdel did state there is more snow this trip compared to his trip in March. He will plan his next trip approximately for the end of April, or first of May.
• PSOP Update: Five additional USGS water quality monitoring stations were approved by the PSOP participants, which are Wild Horse Creek, St. Charles Mesa River, Fountain River above Pueblo County Line, Pueblo Wastewater Treatment Plant, and Salt Creek. The cost for the additional five sites would be approximately $6,000 per year to the PSOP participants. The next PSOP meeting will be April 27, 2004 a 10:00 am at the SECWCD office.
• Sova Response Letter: A letter was written in response to Councilman Bill Sova's comments which were discussed at the last Board meeting, "it is not Pueblo's job to watch out for the rest of the Lower Arkansas Valley", regarding the IGA between the City of Pueblo, the Pueblo Board of Water Works and the City of Colorado Springs. The General Manager asked the Director to whom the letter needs to be addressed. The Board would like the letter to be sent to Pueblo City Council members and to the Pueblo newspaper.
• GOCO Update: We have been requested to submit a concept paper to GOCO by April 28, 2004 for our Conservation Easement Large-Scale Project. Regarding the $6 million budgets which would be used over 3 years.
• Letter to Senator Campbell: The Directors received copies of the letters to Senator Ben Nighthorse Campbell from Mayor of Grand Junction and the Colorado River Water Conservation District regarding Selenium studies in Colorado waterways and obtaining funding for a comprehensive study. A letter was written by the General Manager and also sent to Senator Campbell and other legislators asking for assistance in securing an appropriation for FY '05 to fund the study..
• NRCS Support Letter: Mr. John Knapp, NRCS, at the March 10 meeting discussed irrigation improvement of drip irrigation and sprinklers for the area. This summer there will be 19-20 sprinklers installed, which are funded by cost sharing and 50% match from USDS. A motion was made to write a letter to the Legislators asking for funds that will benefit the farmers and will provide tools to assist the valley, created by Julie Scaplo and Mr. John Knapp. A copy of the letter was given to the Directors for review. Chairman Mauch suggested the addition of $2 million funding amount be added to the support letter and then to send the letter to the appropriate legislators
• District Video: General Manager asked for suggestions regarding presentation of the District video. Director Loretta Kennedy recommended a copy could be used for presentations. It was suggested that a copy could be kept at the Pueblo Library and Community Colleges in Lamar and La Junta.

LIAISON REPORT:
Director Loretta Kennedy reported that she has been asked to give a presentation to the Walsenburg Water Board; no certain date has been scheduled. The focus will be goals and perspectives of the District. The other item of discussion was Senate Bill 215 concerning the applicability of section 29-20-101, CRS, of the "Local Government Land Use Control Enabling Act". Senator Entz is the Bill sponsor. The Pueblo County Board of County Commissioners has written a letter opposing this Bill.

We need to send a "Red Alert" to Senators and other Counties in our District. This Bill will have a direct affect on the Pipeline. Director John Singletary moved to oppose SB-215 in the form of a Resolution, seconded by Director Pete Moore. Motion unanimously carried.

LEGAL REPORT:
Bart Mendenhall reports on the following issues:

• Mr. Bart Mendenhall updated the Directors on the High Plains A&M litigation. There is a confidentiality order issued but the District will be responding to the proposed Case Management Order of High Plains. Bart Mendenhall states he has been informed that Fort Lyon Canal Company, under it rights under Civil Procedure of Water Court Rules, are going to advise Judge Maes that they want this matter to be tried in Otero County.
  
  
• Mr. Melcher re-submitted three exclusion petitions for approval. After review of the petitions, attorney Bart Mendenhall finds #8, #23, #24 should be approved for exclusion from the District. Director Pete Moore moved that the District grant exclusion for those petitions counsel reported meet the requirements of the statute and are within the Southern High Plains or Northern High Plains ground water management districts on the grounds that the state ground water commission has determined that the ground water within those districts in its natural course would not be available to and required for the satisfaction of decreed surface water rights and exclusion is in the best interests of our district. Motion seconded by Director Loretta Kennedy. The motion carried with a 5-1 vote, Director Wayne Whittaker voting against the exclusion.
  
  
• The District received one additional petition of exclusion from, James N. Kalma and Peggy A. Kalma, in Prowers County, Colorado. A hearing has been scheduled May 26, 2004.
  
  
• District legal council was asked to review the IGA agreement between City of Pueblo, Pueblo Board of Water Works and Colorado Spring. There are two main areas of concerns,. The first being the agreement by Colorado Springs and the City of Pueblo's recreational request. The Flow Decree, when it occurs, will have an effect on the water within the Valley when moving water up the Valley to Pueblo Reservoir. This would also affect anyone wanting to move water out of the Division of Basin.
  
  
• It would also effect for example, if the District wanted to move water rights and store them in Pueblo Reservoir for augmentation, you would have to get the approval of the City of Pueblo. The other issue with the IGA is contained in paragraph 4, (D), Incorporation of Flow Management Program, "authorizes the Secretary to refuse to contract with any entity whose exercise of senior water rights with decreed points of diversion down steam of Pueblo Reservoir would diminish the water supply available to the Flow Management Program and who has not entered into a written agreement with the District to be bound by the Flow Management Program". We are not totally sure of what the intent is hoping to accomplish to get those entities that have not agreed to the flow management program in line. It will have the affect of movement outside the division and movement of water inside the division. It would affect the use of water for augmentation. Attorney Mendenhall recommended the District oppose this particular paragraph of the IGA.
  
  Director John Singletary moved to inquire the intent of paragraph (D),. Motion seconded by Director Loretta Kennedy. Motion unanimously carried.

OLD BUSINESS:
Dr. Tim Gates, CSU, gave a presentation regarding the on-going data collection and modeling efforts in the Lower Arkansas Valley. CSU is seeking funding from Federal, State and Local Agencies. Total estimated budget for the next Phase (3 year) is $900,000 to $1,500,000. In addition to the financial support from the District, a support letter regarding the support for the, "Strategies for Remediation of a Salinity-Threatened Irrigated Watershed", proposed project. Director Loretta Kennedy moved to issue a support letter and Financial support from the District, which General Manager Julie Scaplo, Dr. Gates and Jim Broderick, SECWCD GM will discuss dollar amounts at a meeting to be set up by Dr. Gates. Motion seconded by Director John Singletary. Motion unanimously carried.

PUBLIC FORUM:
Mr. Douglas Melcher of Southern High Plain Ground Water Management Association submitted for review 20 new petitions for exclusion from the District. District Counsel Bart Mendenhall will review and report back to Mr. Melcher at a later date.

Director Loretta Kennedy moved that the Board convene into Executive Session, seconded by Director Pete Moore. Motion unanimously carried. Chairman Mauch recessed the District meeting to convene the Executive Session at 12:30 P.M.

The Executive Session will be held for the purpose of:

• 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 may be subject to negotiations; developing strategy for negotiations; and instructing negotiators."

To discuss the following matters:

• Water Acquisition
• Legal Advice

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

• Board Members Present
• District Staff (General Manager & Administrative Coordinator)
• Counsel for the District

Chairman Leroy Mauch adjourned the Executive Session at 1:39 P.M, and reconvened the District Meeting at 1:40 PM.

REPORT FROM EXECUTIVE SESSION:
Mr. Mendenhall reported the Executive Session covered the following issues:

• Acquisition property interest
• Matters concerning legal advice
• Matters that may be subject to negotiations

Chairman Leroy Mauch said there was no action to be taken from the Executive Session discussions.

A Motion was made by Director John Singletary to table further executive session discussion until the Special Meeting to be held April 28, 2004. Seconded by Director Pete Moore. Motion unanimously carried.

ADJOURNED:
Chairman Mauch asked if there were any other matters to come before the Board. Hearing none, motion was heard from Director Pete Moore, seconded by Director John Singletary to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 1:40 P.M