May 17, 2006 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, May 17, 2006 at 10:00 a.m., 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

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

At the conclusion of the Water Activity Enterprise meeting Director Kennedy moved to reconvene the District Meeting at 10:09 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 which they represent.

VISITORS PRESENT:
Bill Long, Southeastern Colorado Water Conservancy District (SECWCD); John Rose, Rural Water Providers (RWP); Don Higby, Lower Arkansas Water Management Association (LAWMA);Virgil Cochran, Southeast Land and Environment; Del Nimmo, Colorado State University-Pueblo-Biology; Ken Weber; Tim Macklin, RC&D Southeast Colorado; Alan Ward, Pueblo Board of Water Works; Richard Mohnen, Moses Wittemyer; David Harrison, Moses, Wittemyer; Grady McNeill, Colorado Division of Wildlife; Kelly Roesch, High Plains; Doug Montgomery, City of Lamar; Chris Woodka, Pueblo Chieftain; Doris Morgan, Senator Allard's office-Pueblo; Mary Miller, Natural Resource Conservation Services (NRCS); Joe Kelley, Colorado Water Protective Development Association (CWPDA); Kevin Salter, Kansas Division of Water Resources; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Tom Musgrove, Bureau of Reclamation; Roy Vaughan, Bureau of Reclamation; Allison Cortner, Senator Salazar's office-Pueblo; Matt Heimerich, Crowley County Commissioner; Steve Witte, Division 2 Water Engineer..

APPROVAL OF MINUTES:

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of April was included in the Board's Monthly Meeting Packet. He reported April total revenues of $161,032.05 and total expenditures of $47,738.18. Director Whittaker moved to accept the April Financial Statement, seconded by Director Mauch and carried unanimously.

GM REPORT:
General Manager Winner introduced David Harrison of Moses, Wittemyer, Harrison and Woodruff, P.C. for LAWMA to discuss the purchase of the Keesee Ditch.

PRESENTATIONS:
David Harrison- David Harrison of Moses, Wittemyer, Harrison and Woodruff, P.C. for Lower Arkansas Water Management Association (LAWMA) gave a brief PowerPoint presentation on the Keesee Ditch and the possible purchase of 200 preferred shares at $3,166.00 per share to the District. He discussed possible participation in the purchase of the Keesee Ditch along by other organizations including the Lower Arkansas Water Management Association (LAWMA). Items discussed are as follows:

Brief discussion and several questions of concern followed on the purchase of LAWMA preferred stock. Chairman Singletary recommended participating in the Keesee Ditch purchase.

Steve Witte - Steve Witte, Division II Water Engineer gave a brief presentation on stream depletion and use of the HI model in calculating water to Kansas. He reported that Colorado is again in debt to Kansas for approximately 10,700 acre feet of water. Mr. Witte suggested putting water into an offset account for Kansas as was done in the previous year. He asked the Board for their support in obtaining water for the offset account for delivery to Kansas. He noted that it is possible the District would qualify for the Drought Assistant Program grant again, and that the Pueblo Board of Water Works has a proposal of 5,000 acre feet of water available at $9.00 per acre feet. A portion of evaporation costs will be credited to Colorado.

Director Mauch moved to authorize the purchase of the 5,000 acre feet of water made available by the Pueblo Board of Water Works at $9.00 per acre feet and that the Board finds it meets the purpose as established by the Board of maintaining and conserving water in the valley and for the benefit of the community, seconded by Director Kennedy. Motion unanimously carried.

Joe Kelly - Joe Kelly, CWPDA commended the Board for their efforts in the debt owed to Kansas last year and noted he is hopeful the District can get funding from a grant this year.

Tom Musgrove - Tom Musgrove, Bureau of Reclamation briefly talked about the re-payment of the Frying-pan Arkansas Project and gave a handout on the Allocations of the Frying-pan Arkansas Project, Investment of the project, Multipurpose O&M Distribution Cost Authorities, Agricultural Water Revenues, Municipal and Industrial Water Revenues, and the project expenditures.

A brief question and answer period was held after the speech.

GM REPORT:
Director Kennedy moved to authorize General Manager Winner to negotiate a contract with Jerry Kenny as the engineering firm to perform a feasibility study on a water management program, seconded by Director Mauch. Motion unanimously carried.

Director Esquibel noted that the Board has determined the potential for a water leasing/land fallowing program that serves to fulfill the District mission in protecting the economic development of the Arkansas River Basin and keeping the water in the valley and that it benefits the District, but allows information to be acceptable to other agencies and organizations needing the information and falls within the District mission.

General Manager Winner will follow up on water quality with the Pueblo County Commissioners in the near future.

Doris Morgan - Doris Morgan, Senator Allard's office-Pueblo noted that S2604 is the Headwater Protection and Administration Act legislation introduced by Senator Allard. Its purpose is to ensure the health of Colorado's forests and primarily deals with the beetle infestation throughout Colorado affecting the water shed and forests which are being destroyed. She asked the Board to write a support letter for legislation S2604.

General Manager Winner suggested writing a letter of support.

Director Mauch moved to send a letter of support for legislation S2604, seconded by Director Whittaker. Motion unanimously carried.

Director Kennedy asked that David Harrison of Moses, Wittemyer, Harrison and Woodruff, P.C. send the proposed resolution of all unresolved issues with the Keesee Ditch purchase to General Manager Winner. The Board will attempt to have a decision by the June Board meeting on the purchase of the Keesee Ditch.

PRESIDENT'S REPORT:
Chairman Singletary reported that the Colorado Water Congress lobbyist was against the District in House Bill 1352 for Water Quality and believes the Board should look into not being a member of the Colorado Water Congress.

General Manager Winner briefly reported on House Bill 1352 and noted that it will be introduced again next year.

COMMITTEE REPORTS:

Personnel: Director Kennedy reported that the Program Coordinator position job search ended on April 7, 2006 and that General Manager Winner has a recommendation for the position. Director Kennedy moved to authorize General Manager Winner to hire the Program Coordinator, seconded by Director Moore. Motion unanimously carried.

Legal: Director Esquibel reported that the Continuing Legal Education (CLE) Seminar on Conservation Easements will be held on June 23, 2006 at 8:00 AM at the Pueblo Union Depot in Pueblo, Colorado. She briefly reviewed the registration fee for $20 per person. Cost will include lunch and fee of the several speakers.

Director Esquibel noted that the proposed Preferred Storage Options Plan (PSOP) bill will be submitted to the Southeastern Colorado Water Conservancy District (SECWCD) Board. She moved that the District send to the congressional delegation a letter indicating that we are actively involved in Preferred Storage Options Plan (PSOP) negotiations. It is obvious that the District is not stalling and consider it to be very important to this area, region and state and that the District believes in the need to keep abreast and keep the delegation abreast with where the District is on the negotiations as well as the continued commitment to the Arkansas Valley Conduit. The District believes the negotiations and the Conduit are inherent to the future of the lower Arkansas valley and that it is the District's responsibility to let the lawmakers know that the District is not dragging their feet on this piece of legislation.

Director Esquibel moved to send a letter to the congressional delegation outlining the District's progress and where it stands on these issues at the time PSOP legislation is considered at the SECWCD on May 18, 2006, seconded by Director Kennedy. Motion unanimously carried.

LEGAL REPORT:

Attorney Mendenhall reported that the Board has been offered a Temporary Water Storage contract with the Bureau of Reclamation and execution of the contract will further the objective of the District to provide a water quality supply to the residents and lands of the District.

Director Whittaker moved to authorize General Manager Winner to execute the contract with the Bureau of Reclamation on the Frying-pan Arkansas Project for Temporary Water Storage, seconded by Director Esquibel. Motion unanimously carried.

Attorney Mendenhall briefly reported on the Fort Lyon Canal water sale to Pure Cycle in Thornton, Colorado. He noted that he is not sure of their intent for the water at this time but will continue to update the Board.

Attorney Mendenhall noted that the Board received an article in their packet on the remarks from Steven T. Miller, Commissioner, Tax Exempt Entities. Mr. Miller's job is to oversee charitable contribution for the Internal Revenue Service (IRS). He delivered a speech to the Spring Lands Conference of the Land Trust Alliance on March 28, 2006. He is very pointed about problems with give-backs of Easements under circumstances remarkably similar to those in Otero County. He is also blunt about his intent to hold receiving entities responsible for the acts of their donors. Mr. Mendenhall complimented the Board on its fortitude in holding to its course.

Mr. Mendenhall reported that the District is in the process of reviewing two proposed conservation easements. He noted that he planned to present the easements to the Board for review, but had some issues with the paperwork and appraisals which will need to be resolved before they can be presented.
He briefly added that work continues on encouraging discussions and input for a fallowing program.

Director Moore commended the Legal Counsel for keeping the District out of trouble with conservation easements.

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 11:56 A.M.