June 9, 2004 Minutes-Board Meeting

The regular monthly Board meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, June 9, 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
Melissa Esquibel
Wayne Whittaker

DISTRICT STAFF:
Julie Scaplo-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Administrative Coordinator
Randa Morlan-Temporary Receptionist

EXCUSED:
Loretta Kennedy

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; Anthony Mestas, Pueblo Chieftain; Dannie McMillan, City of Lamar; Virgil Cochran, Lamar Daily News; Dan Henricks, Highline Canal Superintendent; Tammy Stroud, AGWA; Karl Licis, Pueblo Chieftain; Betty Shepherd, Rocky Ford Daily Gazette; and Phil Reynolds, SECWCD.

CHAIRMAN'S REPORT:
Chairman Mauch read a Thank you letter from Matt Heimerich, Crowley County Commissioner for the Legal expense assistance in support of the minority shareholder of Colorado Canal. The minority shareholders have incurred several thousand dollars of legal expenses evaluating the recent IGA between Pueblo, Colorado Springs Utilities, Aurora and the Colorado Canal.

APPROVAL OF MINUTES:
Chairman Mauch asked if the Board members had reviewed the minutes for the May 11, 2004 Personnel Committee minutes. Director Mauch asked whether there were any corrections or additions to the minutes. Hearing none, Director Wayne Whittaker moved to approve the May 11, 2004 Personnel Committee minutes, seconded by Director Melissa Esquibel. Motion unanimously carried. The May 12, 2004 Board Meeting minutes were presented for approval. Director Melissa Esquibel 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 May was included in the Board's Monthly Meeting Packet. He reported that May total revenues at $290,280.69 with expenditures totaling $52,886.93. 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 1675 through 1713. 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:

Acquisition Proposals:

Larkspur Update: The Larkspur Ditch is currently producing two and a half acre-feet a day. At the beginning of June we had 40 AF in storage at Clear Creek Reservoir. The water will be available for sale after mid-July. This will be Trans- mountain water. A price will need to be determined at the next Board Meeting. A flow chart has been included in the Board packets for review. The Board members will plan a trip to the Larkspur Ditch June 28-29, 2004.

Strategic Plan Update: The suggestions regarding the strategic plan will be discussed with Leo Eisel, Water Engineer for the District. Some comments were heard:

District Video: Presentation will be held July 12, 2004 at Rawlings Library in Pueblo, Colorado at 7:00 PM. There will be a panel discussion after the presentation.

GOCO Update: GOCO will review the application submitted by the District on June 16th, 2004. We will know if we advance to the next step in the grant process.

WATER ACQUISTION:
Director John Singletary reminded the Board that there will be no Special Meeting June 23rd. The Tamarisk Bill passed Federal legislation in the Senate.

LEGAL REPORT:
High Plains A&M: The Fort Lyon Litigation continues to move along. There continues to be filings in the case and we are now getting disclosure reports from the non-represented parties, which will be monitored as they are filed. We are in a holding status until we hear from Judge Maes. Previously, Judge Maes set a trial date and established other deadlines for the Case Management Order. The trial is set for October 3 to approximately December 2, 2005, for a total of 40 trial days. The Order from Judge Maes is expected sometime this month. In addition, scheduled for Monday and Tuesday, June 14-15th, 2004 a Fort Lyon Canal tour for the Attorneys and Engineers of the opposers, which Bart Mendehall will attend, along with Julie Scaplo.

Exclusion Process: Bart Mendenhall has contacted Doug Melcher, High Plains Groundwater Management, to discuss some of the problems he encountered while reviewing the submitted petitions for exclusion. The next special hearing for exclusion won't be scheduled until the problems are resolved.

CONDUIT MEETING UPDATE:
Phil Reynolds gave a short report regarding the conduit meeting held on May 25, 2004. A financial Feasibility Study was authorized by the SECWCD to assess the cost and method of payment of the conduit. Before they present the figures to Legislation, the figures needed to be verified.

PUBLIC COMMENT:

Dannie McMillan, City of Lamar expressed his opinion that the District needs to acquire storage in John Martin Reservoir. Water can be used in meeting the minimum-flow through Pueblo requirements in the IGA with Colorado Springs to pursue its Southern Delivery would be recovered in storage facilities in the lower valley.

Dan Hendricks, superintendent of the High Line Canal Company and Huerfano Cucharas Ditch board member said the Bradford Reservoir would be a good storage vessel for the District. It is currently limited to 32,000 AF of storage but with some repairs it's capable of storage of 64,000 AF. The Huerfano Cucharas Board is seeking other entity assistances for ditch repairs.

Rodney Baird has compiled a ditch information booklet for the Lower Arkansas Valley. The booklet was presented to the Board for review, which the Board feels is very useful information. The staff will assist in getting the booklet copied and help disseminate to interested parties as a service to the valley at no charge.

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Melissa Esquibel moved that the Board convene into Executive Session, seconded by Director Wayne Whittaker. Motion unanimously carried. Chairman Mauch recessed the District meeting to convene the Executive Session at 11:11 A.M.

The Executive Session will be held for the purpose of:

To discuss the following matters:

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

Chairman Leroy Mauch adjourned the Executive Session at 12:05 P.M, and reconvened the District Meeting at 12:10 PM.

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

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 12:11 P.M