June 21, 2006 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, June 21, 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
Peter Nichols-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Administrative Assistant
Bill Hancock-Conservation Program Manager

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

At the conclusion of the Water Activity Enterprise meeting Director Moore moved to reconvene the District Meeting at 10:08 A.M., seconded by Director Whittaker. Motion unanimously carried.

INTRODUCTION OF NEW EMPLOYEES:
Jay Winner introduced new employees joining the staff of the District. New employees were Rachel Bogner, Administrative Assistant and Bill Hancock, Conservation Program Manager.

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:
Gilbert Werdel, Larkspur maintenance, Larkspur; Ken Weber; Del Nimmo, Colorado State University (CSU) - Pueblo/Biology; Pat Edelmann, USGS; Chris Woodka, Pueblo Chieftain; Dennis Darrow, Pueblo Chieftain; Richard Sandquist, Hydro-Pure Growers; Kevin Karney, Otero County; Alan Ward, Pueblo Board of Water Works; Doug Montgomery, City of Lamar; Elaine White, Conservation Easement; Doris Morgan, Senator Allard's Office - Pueblo; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Sal Pace, Congressman Salazar's office-Pueblo and Aaron Freco, Congressman Salazar's office-Pueblo.

APPROVAL OF MINUTES:

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 $263,036.21 and total expenditures of $83,787.35. Director Whittaker moved to accept the May Financial Statement, seconded by Director Esquibel and carried unanimously.

EXECUTIVE SESSION:
Chairman Singletary requested for special council Peter Nichols to Report on matters of the Executive Session that had taken place prior to general meeting §24-6-402(4)(e), CRS. Peter Nichols reported that they had discussed the negotiation strategy regarding negotiations going on with Preferred Storage Options Plan (PSOP) party over PSOP litigations. Mr. Nichols also reported that they are close to an agreement and had received further instructions on negotiations from the board.

GM REPORT:
General Manager Winner gave an update on the Larkspur Ditch. He discussed that the ditch had been cleaned out and widened and that everyone involved was happy about the project. He also reported that by the end of the year there should be 100 acre feet that has passed through the Larkspur. General Manger Winner also directed the board to the packet section under the GM Report called Conduit. He wanted to point out that there was an e-mail from Steve Miller stating the Conduit has reached 80/20 status.

General Manager Winner introduced Richard Sandquist of Hydro-Pure Growers to discuss hydroponics growth and Pat Edelmann to give the district a water quality update.

PRESENTATIONS:

Richard Sandquist - Richard Sandquist a hydroponics farmer from Vineland, CO gave a speech on the history of hydroponics farming. He talked about the price in investing in a hydroponics farm and the different types of crops that can be grown. Additionally, he talked about the cost of greenhouses and noted that hydroponics farming uses about 90% less water than average farming. After his brief history of hydroponics farming Mr. Sandquist displayed to the Board and visitors a sample of wheat grass he had been growing for roughly eight days. He also displayed a growing light called the T5 which uses 50 watts and has a cost of thirty dollars.

Pat Edelmann - Pat Edelmann with USGS gave an update on the presentation he gave to the board in February where he spoke on water flow in the Arkansas River for 2005 and an update on the snow water equivalent. The updated presentation showed that the southwest part of the state is fairly dry and the Upper Basin is getting more moisture. He also reported on water quality. He briefly spoke on the survey expedition to take place along the Arkansas River from Pueblo to Las Animas. The purpose of the survey is to check ground water elevation and seepage in to the river.

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

GM REPORT:
General Manager Winner directed the boards' attention to the request of Greg Hutton for the City of Rocky Ford Recreation Board who had requested help with the city sprinkler system and equipment for Babcock Park. General Manager Winner had Kim Chavez, Financial Coordinator, elaborate on her discussions with Greg Hutton. Kim Chavez stated that the project falls into the "Outreach Program" and deals with community involvement which will benefit roughly 150 to 200 children. The equipment is in great need for replacement and repairs. The equipment includes things for T-ball, Junior Babe Ruth, Senior Babe Ruth, and the sprinkler systems. General Manger Winner stated that a community Outreach Program had been set up about a year ago to assist communities with such requests.

After discussion, the board requested that outreach application form be filled out and returned for further discussion at the July board meeting.

PRESIDENT'S REPORT:
Chairman Singletary briefly discussed the reuse plan and stated that some request information has not been received. The information will be distributed to all the directors once the missing portion has been obtained.

Chairman Singletary also mentioned some of the board members will be heading to Washington D.C. during the week of June 28, 2006.

He continued discussing water quality, reporting that there was some headway with the Fountain Creek Basin, including the Colorado Springs community, in receiving assistance with water quality in Fountain Creek and the Arkansas River. He had also met with Pueblo's District Attorney to touch base on the Fountain Creek project since the DA has a law suite pending on the subject.

Chairman Singletary also noted that Wally Stealey, board member of the Southeastern Colorado Water Conservancy District had surgery and was happy to report he is doing well.

General Manager Winner advised that currently he is in the process of setting up a presentation from the Colorado State University to the Pueblo County Commissioners and Pueblo City Council on the water quality study.

LEGISLATIVE REPORT:

Peter Nichols: Peter Nichols discussed that the Governor had not vetoed any of the bills that the board had been interested in. He noted that the Governor had signed legislation approving the charter for inter basin compact basin mission. This incorporates $10 Million for projects that will be identified by various regional water round tables.

Doris Morgan: Doris Morgan, Senator Allard's office-Pueblo noted that S2604 - the Headwater Protection and Administration Act, introduced by Senator Allard, has not been signed movement by the billing committee.

Sal Pace: Sal Pace, Congressman Salazar's office, updated on the bio-diesel project through the LAVWCD and earmarks $200,000 Otero County project. It has not been finalized and still needs to go through the house, the senate, and have the President's signature.

COMMITTEE REPORTS:

Personnel: Director Kennedy reported that the Conservation Easement Legal Education (CLE) Seminar would take place on June 23, 2006 from 8:45 A.M. to 4:30 P.M. at the Pueblo Depot.

Legal: Director Esquibel reported that the Continuing Legal Education (CLE) Seminar on Conservation Easements will be held on June 23, 2006 at 8:45 AM at the Pueblo Union Depot in Pueblo, Colorado. Director Esquibel added that there were currently fifty-six people who had responded with registration forms and payment. The seminar is approved for seven legal credits and seven hours real estate credit. General Manager Winner gave suggestion to have a similar seminar every year though board took no action on the matter.

LEGAL REPORT:
Attorney Mendenhall reported that both John Stroh and Wanda Stroh have been placed on probation for one year, subject to completion of thirty hours of educational classes and payment of $1,000.00 fine.

Attorney Mendenhall reported that he and General Manager Winner had spoken to the Highline Board and Fort Lyon Canal Board along with several shareholders about the Water Management Program. Most were interested in the program and wanted more information. He maintained that there was no interest in controlling the program and that no program should force any owner to do anything.

Attorney Mendenhall brought three Conservation Easements to the Boards' attention stating that they were ready for resolution.

Resolution 2006-05: Director Mauch moved to accept resolution 2006-05, Alvin E. Carter and Karol A. Carter's of Crowley County for an 80-acre easement with Colorado Canal water rights. Director Esquibel seconded the motion. Motion unanimously carried.

Resolution 2006-06: Director Moore moved to accept resolution 2006-06, Bert D. Hansen and Mabel S. Hansen's of Bent County for 80-acres of land with Fort Lyon Canal water rights. Director Esquibel seconded the motion. Motion unanimously carried.

Resolution 2006-07: Director Kennedy moved to accept resolution 2006-07, Eustice Zacher's of Pueblo County for 80-acres with a well and gravel pit, but no surface rights. Director Moore seconded the motion. Motion unanimously carried.

Attorney Mendenhall mentioned the CLE Seminar and was glad that Kim Chavez, Financial Coordinator had put through the effort and enabled to seminar to count towards seven hours of real estate credits.

Attorney Nichols recommended that the district file a statement of opposition in the Fountain Creek and Arkansas River Basin, Case # 06CW23. Director Whittaker so moved, and was seconded by Director Esquibel. Motion unanimously carried.

Attorney Nichols stated that the district had rented water from the Pueblo Water Works in the previous month and he had filed a pre-application to Colorado Conservation Board to get a reimbursement of roughly $70,000.

Attorney Nichols discussed the districts interest in purchasing 200 preferred stock shares of the Lower Arkansas Water Management Association's (LAWMA) Kesee II. He explained that he and Attorney Mendenhall had looked over the contract and had sent questions to the attorneys of LAWMA. The LAWMA attorneys had been in contact and are working on getting a response to the district by the July board meeting.

Attorney Nichols also discussed the fallowing program. He sated that H.D.R Engineering had been hired to prepare a report to see if the program would be feasible. The preliminary report indicates that there is adequate water between Pueblo and John Martin for suck a program. The report also states that the area is in a drought. The report will be available at a later time when it is completed. Nichols suggested that the district forge ahead with the program though he believes four things need to be done.

Recommendation One: Investigate ditch company articles of corporation by-laws.
Recommendation Two: Identify land use regulations.
Recommendation Three: Complete a Financial Feasibility Study.
Recommendation Four: Study work on actual structure of organization.

Director Kennedy made a motion to accept the four recommendations. Director Esquibel amended the motion stating that the motion, being within the mission of the district, to accept the recommendations of investigating the corporation by-laws, identifying land use regulations, completing a financial feasibility study, and studying the structure of the organization to allow them to be put into action. Director Gill seconded the amendment. Director Kennedy accepted the amendment. Director Moore seconded the motion with the amendment. Motion unanimously carried.

PUBLIC COMMENT:
Elaine White thanked General Manager Jay Winner for his assistance with her Conservation Land Easement. She was impressed by the assistance the District provides.

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 12:03 P.M.