June 8, 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, June 8, 2005 at 9:30AM, 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
Ollie Ridley-Secretary

DIRECTORS EXCUSED:
Loretta Kennedy
Leroy Mauch
Melissa Esquibel

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

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Moore moved that the Board convene into Executive Session under the C.R.S. sections for the following purposes, seconded by Director Whittaker. Motion unanimously carried. Chairman Singletary 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."

To discuss the following matters:

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

Chairman Singletary adjourned the Executive Session at 10:24 A.M, and reconvened the District Meeting at 10:34 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 Moore moved that the Board convene into the Water Activity Enterprise, seconded by Director Whittaker. Motion unanimously carried.

At the conclusion of the Water Activity Enterprise meeting Director Moore moved to reconvene the District Meeting at 10:36 A.M., seconded by Director Ridley. 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:
Rodney Baird, La Junta Tribune Democrat; Carl McClure, Olney Springs; Tim Macklin, RC&D; Cindy Schleining, NRCS; Dannie McMillan, City of Lamar; Phil Reynolds, SECWCD; Roy Vaughan, U.S. Bureau of Reclamation; Virgil Cochran, Lamar Daily News; Joe Flory, Division of Water Resources; Steve Witte, Division of Water Resources; Pat Edelman, USGS; Tom Musgrove, U.S. Bureau of Reclamation; Brenda Fillmore, AGUA; Allison Cortner, Senator Salazar's Office-Pueblo and Chris Woodka, Pueblo Chieftain.

APPROVAL OF MINUTES:
May 11, 2005 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the May 11, 2005 Board Meeting, and whether there were any corrections or additions. Director Whittaker moved to approve the May 11, 2005 Board Meeting Minutes, seconded by Director Ridley. Motion unanimously carried.

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of May was included in the Board's Monthly Meeting Packet. He reported May total revenues of $328,000.08 and total expenditures of $317,319.15. Director Whittaker moved to accept the May Financial Statement, seconded by Director Moore and carried unanimously.

PRESENTATIONS:
Steve Witte- Steve Witte, Division of Water Resources gave a brief update on the state line deficit to Kansas reporting that through the year of 2004 there was an approximate 6,000 acre feet reduction made to the deficit. He added that in June the Fry-Ark allocation was made which yielded Pueblo Board of Water Works an additional 1,004 more acre feet available to the LAVWCD to make a delivery to the offset account in John Martin Reservoir. Mr. Witte reported that the Division of Water Resources would be meeting with the Fort Lyon Canal Company Board that day concerning exchanges and whether they would assist in the delivery to John Martin Reservoir's offset account for the deficit owed to Kansas.

Mr. Witte reported that Colorado snowpack seems to have peaked for the year and the runoff is good. He gave a handout on the Arkansas River Daily Report, Ditch and Reservoirs and briefly reviewed inflows and outflows in various areas.

Additional discussion followed on a project array of 1,600 water tanks that will be used to collect data on cosmic ray. Director Ridley suggested inviting Jan Anderson of Southeast Colorado Enterprise Development to the next Board meeting for additional information concerning the Cosmic Ray observatory.

Mr. Witte further discussed House Bill 1177 that the Governor signed on inter-basin compacts.

Tim Macklin & Cindy Schleining- Tim Macklin, RC&D briefly reported that the Bent Conservation District had been sharing information and resources with other Tamarisk projects in Colorado and that they have bought equipment for the Tamarisk eradication.

Cindy Schleining, Bent Conservation District/NRCS gave a PowerPoint presentation update on the Tamarisk project in Bent County. She noted that they have been working together with several groups including the Corp of Engineers, National Parks Service at Bents Old Fort, Rocky Mountain Bird Observatory and the Partners for Wildlife Program.

Ms. Schleining updated the Board on the eradication of Tamarisk along the Arkansas River in Bent County near Las Animas, CO. She noted that they had cleared 12.1 acres of Tamarisk along the Arkansas River near Las Animas on April 6 & 7, 2005. On June 2, 2005 they sprayed the Tamarisk in the cleared area and on June 7, 2005 the trees began to die. To date they have received a total of $171,183 in funding for the project.

Tim Macklin reported that a Tamarisk conference would be held at the Cow Palace Inn at 9:00 A.M. in Lamar, CO on June 23, 2005 and that all LAVWCD Directors are invited.

Pat Edelman-Pat Edelman, U.S. Geological Survey presented a brief PowerPoint presentation on water quality, selenium and salinity in the lower valley. He reviewed the salinity concentrations for the lower Arkansas valley and the defects selenium poisoning causes to wildlife and birds.

Tom Musgrove- Tom Musgrove, Bureau of Reclamation updated the Board on the snowpack runoff. He added that the lower valley would not meet their water projections for the year. They had estimated 44,000 acre feet but believe they will receive between 37,000-38,000 acre feet of water.

ACQUISITION REPORT:
Water Acquisition- General Manager Winner reported that the District had closed on the Colorado Canal water and had traded it for 13 shares of Twin Lakes water. He noted that the District had also closed on the Holbrook farm of 132 shares of water with 135 acres of land.

General Manager Winner proposed that the Board purchase a Rocky Ford farm consisting of 1 share of Rocky Ford Ditch water and 8.5 acres of land. Director Whittaker moved to have General Manager Winner negotiate on the purchase of the Rocky Ford farm, seconded by Director Ridley. Motion unanimously carried.

GM REPORT:
General Manager Winner reported that the District was successful in receiving the grant of $149,397.00 for the state line deficit to Kansas. He added that the District should receive their funding by beginning year of 2006. He reported that the Conduit bill had again been presented.

Chairman Singletary added that the Tamarisk bill is moving and progressing well.

General Manager Winner reported that Coordinator Chavez has been working on a marketing project for the District.

General Manager Winner asked the Board to approve hiring Ben Doon a Biodiesel consultant at approximately $18.00 per hour for an average of 120 hours per month to help with the building study and business plan for building a Biodiesel plant in the lower Arkansas valley. In addition, cost sharing, partnering and grants would also be available. Director Moore moved to authorize General Manager Winner to pursue hiring Ben Doon as the District's Biodiesel consultant, seconded by Director Whittaker. Motion unanimously carried.

General Manager Winner proposed the District negotiate on a partnership with Colorado State University-Fort Collins to evaluate winter canola as a crop for Biodiesel. Chairman Singletary asked that the Board refine the proposal. Director Whittaker moved for General Manager Winner to negotiate with CSU-Fort Collins on growing winter canola as a source for Biodiesel in the lower Arkansas valley.

General Manager Winner reported that the Larkspur Ditch is higher than it had been in its 56 year average. He noted that he would be meeting with the Forest Service, the Superintendent of the Catlin Canal and the Larkspur maintenance person Gilbert Werdel on June 9, 2005 to visit the Larkspur Ditch. Additionally, he suggested that the Board move to cost share with other entities on the monitoring station at Larkspur Ditch.

Director Ridley moved to cost share with other entities on the monitoring station that says the Larkspur Ditch should be on the South Arkansas, seconded by Director Whittaker. Motion unanimously carried.

COMMITTEE REPORTS:
Personnel- General Manager Winner noted that the employee handbook is in its final draft and will be presented at the next Board meeting for possible approval.

Liaison- Chairman Singletary reported that General Manager Winner, Chairman Singletary, Vice-Chairman Moore and Water Attorney Nichols had been attending negotiations on PSOP and are working on putting a document together to present to the Board for discussion on the requirements of keeping the lower valley alive for the future. He added that the Preferred Storage Options Plan (PSOP) was moving along and that on June 30, 2005 they would meet to see where they are on negotiations.

Director Whittaker suggested that when a final document is presented that it be available to the public for input.

LEGAL REPORT:
High Plains A&M- Attorney Mendenhall reported that the High Plains and ISG cases are set for oral argument in the Colorado Supreme Court on June 14, 2005 at 9:00 A.M. He noted that the Board should be aware that an action has been brought against appraiser John Stroh in Otero County District Court. The action is nothing remarkable with the exception that the defendants are resisting revealing the name of their insurance company.

PUBLIC COMMENT:
Phil Reynolds, SECWCD and Allison Cortner, Senator Salazar's Office-Pueblo announced that on July 16, 2005 a Conduit meeting will be held to discuss all aspects of the project. Allison Cortner added that the meeting will be held in the lower valley possibly at Otero Junior College in La Junta, CO.

ADJOURNED:
Chairman Singletary asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Moore, seconded by Director Ridley to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:55 A.M.