April 13 , 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, April 13, 2005 at 9:30AM, at 801 Swink Avenue, Rocky Ford, CO 81067.

Vice-Chairman Moore announced a quorum was present.
General Manager Winner announced role call.

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

DIRECTORS EXCUSED:
John Singletary-Chairman

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

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 Kennedy. Motion unanimously carried. Vice-Chairman Moore recessed the District meeting at 9:31 A.M. to convene the Executive Session at 9:33 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:

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

Vice-Chairman Moore adjourned the Executive Session at 10:25 A.M, and reconvened the District Meeting at 10:35 A.M.

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

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Esquibel 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 10:38 A.M., seconded by Director Kennedy. Motion unanimously carried.

INTRODUCTION OF VISITORS:
Vice-Chairman Moore welcomed each of the visitors to the meeting, asked them to introduce themselves and identify the organization which they represent.

VISITORS PRESENT:
Rodney Baird, La Junta Tribune Democrat; Tom Musgrove, Bureau of Reclamation; Roy Vaughan, Bureau of Reclamation; Bob Bauserman, Otero County; Dale Baker, CWPDA; Virgil Cochran, Lamar Daily News; Dannie McMillan, City of Lamar; Steve Witte, Division of Water Resources; Joe Flory, Division of Water Resources; Kelly Roesch, High Plains A&M; Eileen Straach, Town of Fowler; Phil Reynolds, SECWCD; Patrice Gapen, Colorado State University-Pueblo-Healy Business Center; Bill Yohey, Kiowa County-Commissioners Staff; Brenda Fillmore, AGUA and Allison Cortner, Senator Salazar.

APPROVAL OF MINUTES:
March 9, 2005 Monthly Board Meeting Minutes- Vice-Chairman Moore asked if the Board members had reviewed the minutes for the March 9, 2005 Board Meeting, and whether there were any corrections or additions. Director Whittaker noted that the following corrections have been made to the general meeting minutes on page 3, under Gary Bostrom, corrected, Corporative to Cooperative. Director Whittaker moved to approve the corrected March 9, 2005 Board Meeting Minutes, seconded by Director Esquibel. Motion unanimously carried.

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of March was included in the Board's Monthly Meeting Packet. He reported that March total revenues at $380,751.14 and total expenditures at $411,404.93. Director Whittaker moved to accept the March Financial Statement, seconded by Director Ridley and carried unanimously.

PRESENTATIONS:
Steve Witte-Colorado Division of Water Resources gave three handouts of the Arkansas River Basin Snowpack and Winter Water Program Report. He reported that the snow pack will help in the deficit owed to Kansas. He announced that 2,000 acre feet were delivered to the offset account in John Martin Reservoir on March 22nd for the first deposit. He stated that the depletion payment to the offset account for Kansas can be made through a series of exchanges to avoid transit loss. The 2,000 acre feet will apply to the 50% required payment on the deficit this year.

Director Whittaker asked Mr. Witte if there was any resolution on the evaporation in the offset account. Mr. Witte responded with "not at this time".

General Manager Winner announced that LAVWCD had hoped to acquire 5,300 acre feet for the offset account.

Other discussion followed on whether the snow pack from the southern tributaries will help in the deficit owed to Kansas and Mr. Witte responded that it will reduce the depletion of well pumping.

Mr. Witte briefly discussed the Arkansas River Compact and gave a handout and discussion on efficiency and the different effects.

Patrice Gapen-Healy Business Center at Colorado State University-Pueblo came before the Board to discuss creating a marketing plan for the District. She wants to connect the talent of CSU with the businesses and discuss the possibility of LAVWCD leading the lower Arkansas Valley into name recognition programs promoted throughout the nation.

General Manager Winner noted that certain products in the lower valley have not been capitalized on such as the Rocky Ford cantaloupe for example. He said that LAVWCD needs to promote products grown in the valley.

Patrice Gapen added that the Healy Business Center would outline a marketing strategy and the professors and students would gather the information required to create a marketing plan. She noted that the District would fund the information-gathering phase of the marketing study.

General Manager Winner asked the Board of Directors to consider entering into a partnership agreement with Colorado State University on a marketing program.

Director Esquibel and Director Kennedy suggest that Ms. Gapen and Colorado State University provide a scope of services and define what the District is looking for and whether CSU can provide those services before they make a motion to partner with Colorado State University on a marketing plan.

Director Esquibel asked to see examples of previous marketing plans that have been done through Colorado State University.

Tom Musgrove-Bureau of Reclamation reported that the Bureau uses the Snotel website for the snowpack report. He then noted that there are 40,000 acre feet available for allocation and about 4,000 acre feet available for the Pueblo Board of Water Works.

COMMITTEE REPORTS:
Water Acquisition- General Manager Winner reported on a proposal to purchase 53.367 shares of Colorado Canal/Lake Meredith water. Director Esquibel moved to authorize General Manager Winner to continue negotiation and close any contract that meets the District's purpose to purchase the 53.367 shares of Colorado Canal/Lake Meredith water, seconded by Director Kennedy. Motion unanimously carried.

Director Whittaker motioned to authorize General Manager Winner to sign a contract with the Bureau of Reclamation for temporary storage of 500 acre feet in Pueblo Reservoir, seconded by Director Esquibel. Motion unanimously carried.

GM REPORT: General Manager Winner reported that a presentation will be given to the Manzanola Elementary school on May 3, 2005.

He announced he had met with Otero County Commissioners on Monday concerning Conservation Easements and noted that the appraisal handbook will come out the following week. Bill Milenski and Pat O'Brian will receive a copy to see if it meets their approval.

On April 21, 2005 Russell George will be speaking at the Southeast Colorado Water Conservancy District office.

General Manager Winner thanked Bob Rawlings for holding a meeting at the SECWCD office a couple weeks earlier with the Colorado Water Conservation Board, Harold Miskel and LAVWCD to discuss available grant money.

General Manager Winner announced that Chairman Singletary is in Washington D.C. and will have met with Senator Ken Salazar three times, Representative Mark Udall three times and Congressman John Salazar three times.

Director Esquibel moved to authorize General Manager Winner with the assistance of Director Mauch and Director Whittaker to negotiate a contract for services of Mr. Werdel to supervise getting water from Larkspur Ditch this spring. The contract may be renewable if the Board sees fit, seconded by Director Kennedy. Motion unanimously carried.

General Manager Winner suggests a trip to the Larkspur Ditch in the near future.

Personnel- Director Kennedy noted that the Personnel Committee had met and announced that General Manager Winner's probation area has been completed and he has done an exceptional job. Director Kennedy moved to increase General Manager Winner's salary to $72,000 per year effective May 1, 2005, seconded by Director Whittaker. Motion unanimously carried.

Director Kennedy asked the Board of Directors to review the employee Personnel Manual and send recommendations to her. She noted that it will be reviewed at each Board Meeting until it is a completed document and meets all Directors approval.

Liaison- Director Kennedy asked the Board to consider whether they want to go to the Ballot for authority to bond.

Director Mauch noted that the Board should also consider going to the Ballot for personal property tax.

Attorney Mendenhall said that there will probably need to be two separate Ballots.

Director Esquibel moved to direct General Manager Winner and Attorney Mendenhall to prepare a proposed draft Ballot language for bonding authority.

Director Kennedy suggests doing one Ballot per year. In addition, she asked the Board whether they want to present to any and all other counties in the basin the opportunity to join the District.

Attorney Mendenhall noted that procedures apply to add property to the District and that it would be a Ballot issue.

Director Esquibel suggested sending an offer letter to the County Commissioners and entities open for discussion regarding their ability to join the District.

Dannie McMillan-City of Lamar cautioned the Board concerning inclusion of some counties into the District.

Vice-Chairman Moore noted that counties interested in joining with the District would have to petition to be included; in turn the District would have opportunity to approve of that county.

LEGAL REPORT:
High Plains A&M- Attorney Mendenhall reported that the Supreme Court has granted High Plains an extension to file its reply briefs until April 20, 2005. He noted that the Supreme Court has accepted the Amicus Curiae Brief of the Cache La Poudre Water Users Association, the Thompson Water Users Association and the Northern Colorado Water Conservancy District.

Attorney Mendenhall reported that on March 28, 2005 the Supreme Court decided East Cherry Creek, 04SA6. This case involved non-tributary Arapahoe aquifer ground water. The Court has held that the State of Colorado was entitled to an adjunction of its right without making a threshold showing of a non-speculative, beneficial use. He noted that some have interpreted this holding to give grounds for concern in the High Plains case. The Court pointed out that the anti-speculation doctrine is not applicable to judicial determinations of availability of non-tributary ground water, under the controlling statutes; the appropriation must further satisfy the State Engineer of a non-speculative, beneficial use before withdrawing non-tributary ground water. This case does reinforce the District's decision to file a separate brief to make alternate argument, to give the Court some alternative choices, if it chooses not to rule on the anti-speculation doctrine in this case.

Attorney Mendenhall announced that Director Moore and he have met with several entities in the valley to receive input on the Preferred Storage Option Plan (PSOP) negotiations and to also reach out and communicate with the constituencies. He noted that they have had a good response.

PUBLIC COMMENT:
Phil Reynolds spoke on behalf of the Arkansas River Basin Water Forum (ARBWF) and thanked the District for their participation in the ARBWF held Thursday, April 7, 2005 and Friday, April 8, 2005 in Trinidad, Colorado. He noted that the next year's forum will be held in Salida, Colorado.

Mr. Reynolds noted that a meeting was held on the Arkansas Valley Conduit the previous week in Washington, D.C. and that it went well.

General Manager Winner briefly introduced Allison Cortner of Senator Salazar's Pueblo Office.

Dannie McMillan-City of Lamar reported that they will have follow-up information in the near future on the Secondary Supply Dual Water Systems.

ADJOURNED:
Vice-Chairman Moore 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 11:44 P.M.