May 12, 2004 Minutes-Board Meeting

The regular monthly Board meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, May 12, 2004 following the 10:00 A.M., at 801 Swink Avenue, Rocky Ford, Colorado 81067.

Chairman Mauch announced a quorum was present.

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

DISTRICT STAFF:
Julie Scaplo-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Administrative Coordinator

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

VISITORS PRESENT:
Rodney Baird, La Junta Tribune Democrat; Ken Ullom, Farmer; Brady McElroy, USDA-NRCS; Anthony Mestas, Pueblo Chieftain; Dannie McMillan, City of Lamar; Virgil Cochran, Lamar Daily News; Kelly Roesch, High Plains; Dan Henricks, Highline Canal Superintendent; Bob Hamilton, SECWCD; and Bill Yohey, Kiowa County Government.

CHAIRMAN'S REPORT:
Chairman Mauch reported that the staff's attempt to organize the monthly Board Meeting packets by binding the material with the addition of dividers was a success. Director John Singletary also commended the staff for a job well done.

APPROVAL OF MINUTES:
Chairman Mauch asked if the Board members had reviewed the minutes for the April 14, 2004 Board Meeting. Director Mauch asked whether there were any corrections or additions to the minutes. Hearing none, Director Wayne Whittaker moved to approve the April 14, 2004 Board Meeting minutes, seconded by Director John Singletary. Motion unanimously carried. The April 28, 2004 Special Meeting minutes were presented for approval. Director John Singletary moved to accept the minutes as presented, and Director Wayne Whittaker seconded the motion. 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 April was included in the Board's Monthly Meeting Packet. He reported April total revenues at $153,700.80 with expenditures totaling $208,143.79. 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 Melissa Esquibel and unanimously carried to ratify payment of bills represented by check numbers 1622 through 1674. The approved financial report will be attached as permanent record to the minutes.

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

• Bureau of Reclamation Storage Update: General Manager Scaplo sent a letter addressing the request 500 acre-feet of storage to the Bureau of Reclamation. A questionnaire was sent and completed by District Water Engineer Leo Eisel and submitted to BOR. The BOR contract is now in the hands of Fish and Wildlife. State Water Engineer, Steve Witte is currently considering possible acceptable alternatives in case the Larkspur Ditch run off happens before storage is granted.
• Larkspur Update: Gilbert Werdel, who will be providing maintenance of the Larkspur Ditch, attempted to place the chart recorder April 12-13, but was unsuccessful due to the snow pack. Gilbert Werdel has been in contact with someone with the Western Slope and has verified that there is still a lot of snow. He plans a trip next week. Mr. Witte has tried to contact the satellite link, located at the Larkspur Ditch station, but the link has not been functional for two years. Mr. Werdel will meet with Division Engineer's representative on his next trip to get the satellite link on line. Steve Witte suggested that the LAVWCD combine with the Upper Arkansas and the Town of Salida to install a new measuring station to assist in more accurate measurement of which all three entities would benefit.
• Spady Review: Roger and Vernie Spady would like the Board to consider their 32.19-acre tract of land, which is less than half a mile from Lamar City limits for a conservation easement. This parcel includes 64 shares of Fort Bent Ditch water. It is the District's policy that the parcel should be 35 acres or greater, however the policy will allow the Board to make an exception for special circumstances. After discussion the Board deemed that the tract should be considered for an easement. Director Wayne Whittaker moved to make an exception to the policy allowing 32.19-acre tract. Seconded by Director Ollie Ridley. Motion unanimously carried.
• Colorado Coalition of Land Trust Seminar: A seminar will be held in Lamar, Colorado at the Cow Palace Inn regarding Conservation Easements. The seminar, titled, "Preserving Lands with Conservation Easements", is scheduled from 7:00 PM to 9:30 PM, Tuesday, May 25, 2004. Featured speakers for the seminar include Dan Pike of Colorado Open Lands, Arnie Butler, and appraiser who specializes in easements, and attorney Melinda Beck, Isaacson Rosenbaum Woods & Levy.
• Upcoming Workshop: General Manager Scaplo reviewed the upcoming SDA's 2004 Regional Workshop, "You've Got Questions, We've Got Answers". Registration will be held at 8:30 am with the workshop scheduled 9:00 am to 3:45 pm. The workshop is offered in Colorado Springs June 16, 2004. The registration due date is May 27, 2004. Any Director wanting to attend, please contact General Manager, Julie Scaplo or Administrative Coordinator, Kim Chavez.
• Strategic Plan Update: The suggestions regarding the strategic plan were discussed with Leo Eisel, Water Engineer for the District. He will focus on Phase I of the strategic plan. This week the General Manger received a letter and contract, (Master Services Agreement), from Brown & Caldwell, which needs to be reviewed by the Board for a motion of approval. The Master Service Agreement and Task Order #1 under which the Engineering services provided to LAVWCD, requests authorization for an additional $20,000, (Not to exceed), to cover additional work to develop the water acquisition strategic plan, as well as other engineering services. The contract will need to be signed and returned to Brown & Caldwell. It was recommended that a paid invoice history of 2003, 2004 invoices be compiled and reviewed before any motion is heard.

WATER ACQUISTION:
Director John Singletary gave an overview regarding Special Acquisition meeting held April 28, 2004. The continuing negotiations regarding several water/land purchases was mentioned. The District continues to support the efforts to eradicate Tamarisks, which is listed as a noxious weed in Colorado. Director Singletary returned from a Tamarisk Workshop in Albuquerque New Mexico.

PERSONNEL COMMITTEE:
Director Wayne Whittaker reported that the Committee met May 11, 2004 at 2:00 pm. Directors in attendance were Director Ollie Ridley, Director Melissa Esquibel, and Director John Singletary. The Committee has revised the evaluation form for General Manager to better suit responsibilities preformed. The Personnel Policy calls for review of each employee at one-year intervals, from the date of hire. It was suggested that the review take place in September prior to the preparation of the budget, so the budget can reflect any changes. Director Whittaker feels the District's staff are great employees and would like to compliment the employees on a job well done. Director Whittaker moved to change the date of the evaluation date to September, seconded by Director Ollie Ridley. Motion unanimously carried.

AGENCY LIAISON:
Agency Liaison Loretta Kennedy gave an update regarding the State Legislative bills:

• SB-118-Concerning the exclusion of land within a designated ground water basin from a water conservancy district. This bill did not pass the committee.
• HB-1043-The Attorney General discussed crafting 1041 regulations into a tool to aid in the protection of water. This bill did pass the committee with amendments.

LEGAL REPORT:

• High Plains A&M: Mr. Bart Mendenhall reported that the trial date has been set for October, 2005 for a water transfer application filed by High Plains A & M, LLC, which is seeking a change of use on shares of Fort Lyon Canal Company water. The trial is scheduled to last 40 days by Judge Dennis Maes. The location of the trial is unknown pending Judge Maes determination on several motions. Fort Lyon Canal Company has filed a motion seeking change of venue to Otero County, Judge Maes has not ruled on this motion. Bart Mendenhall added, the trial date is not cast in concrete, for example the opposers need to have at least one irrigation season to review the property. One concern is the Fort Lyon Canal Board's order ruling on conditions of the transfer. Second, SECWCD filed a motion seeking for dismissal of suit, to prevent the transfer of water to other cities. As far as the Discovery schedule, approval is needed to hire Brown & Caldwell's Leo Eisel to conduct engineering studies for the trial. Mr. Mendenhall recommends that the LAVWCD and SECWCD share the engineering expenses 50/50. The engineering studies will consist of double-checking High Plains A&M engineering figures. Director Melissa Esquibel moved to retain Leo Eisel as engineering expert in the High Plains legation with the understanding that the cost be shares with SECWCD and any other objectors that might join. Seconded by Director Loretta Kennedy. Motion unanimously carried.
• Costilla County Commissars vs. Costilla County Conservancy District: The case involves a Sept. 20, 1999, meeting at the Hideaway Restaurant in Alamosa, Colorado, which included two of the three Costilla County Commissioners. The meeting was conducted to hear presentations by various State Government officials and representatives of a private mining company. The mine's compliance with County-issued permits was one to the topics discussed at the meeting. Costilla District Judge John Kuenhold ruled that the Commissioners didn't arrange the meeting and because they didn't actively participate in the discussion or made no presentation. The Commissioners were invited to the meeting by Costilla County Director of Social Services. The Amici brief states that the Commissioners violated the law when a quorum of the Board met without prior public notice, in a private meeting at which public business was discussed. The trial court granted summary judgment in favor of the Board
  
  
  Section 24-6-402(1)(b) defines meeting as any kind of gathering, convened to discuss public business, in person, by telephone, electronically, or by other means of communication. The Act excludes from its scope any chance meeting or social gathering at which discussion of public business is not the central purpose. Section 24-6-402(2)(e).
  
  
• Resolution to transfer assets/debt to Enterprise Fund: During the 2003 audit Mr. Richard White with Grimsley White & Company requested a resolution to transfer assets/debt from the General Fund of the Lower Arkansas Valley Water Conservancy District to the Enterprise Fund of the District. Motion was heard from Director John Singletary to approve the transfer resolution. Seconded by Treasurer Pete Moore, motion unanimously carried.

OLD BUSINESS:

Bob Hamilton, SECWCD and LAVWCD's Director John Singletary reported on a recent Tamarisk meeting May 5, 2004 aimed at developing a strategic plan in Colorado for Tamarisk eradication. Many entities attended the meeting geared at eradication at a basin-wide attempt. SECWCD has applied for $300,000 in funding for two projects. The first along the Arkansas River near Las Animas and the other at Fountain Creek. The first steps in the effort are to develop an accurate inventory as to where the Tamarisks are growing. The Tamarisk is a water-robbing tree, which grows along rivers throughout the Arkansas Valley, and the Western United States. The Tamarisk sucks tens of thousands of acre-feet of water every year.

Bob Hamilton gave a brief report regarding the availability of Fryingpan-Arkansas water to be allocated this year, which totals approximately 15,000 acre feet available for diversion. However, Mr. Hamilton feels this estimation is too high. A meeting will be held today at the SECWCD offices.

MOTION TO ENTER INTO EXECUTIVE SESSION:

Director Melissa Esquibel moved that the Board convene into Executive Session, seconded by Director John Singletary. Motion unanimously carried. Chairman Mauch recessed the District meeting to convene the Executive Session at 11:30 A.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, Conservation Easements
• 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 2:29 P.M, and reconvened the District Meeting at 2:30 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

MOTION OUT OF EXECUTIVE SESSION:

Motion was heard out of executive session that the District will accept appraisals for conservation easements that are done by an appraiser that has been reviewed and found acceptable by GOCO or GOCO's review appraisers in two or more instances. If the landowner chooses not to use an appraiser recognized by GOCO as acceptable, the landowner will be responsible for the cost of the review. The motion was heard from Director Wayne Whittaker, seconded by Director Melissa Esquibel. Motion unanimously carried.

Another motion was heard by Director John Singletary to allow General Manager to negotiate with the landowner to allow $1,000 to be used for another appraisal with the exception that the appraisal cannot be done by the same appraiser. Seconded by Director Wayne Whittaker. 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 Wayne Whittaker, seconded by Director Melissa Esquibel to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 2:40 P.M