July 9, 2003 Minutes-Board Meeting

A meeting of the Board of Directors of the Lower Arkansas Valley Water Conservancy District was held on Wednesday, July 9, 2003 at 1:00 P.M., McDonald Hall- Room 120-Otero Jr. College, 1802 Colorado Avenue, La Junta, Colorado.

President Leroy Mauch announced a quorum was present.

DIRECTORS PRESENT:

Leroy Mauch- President
John Singletary-Vice President
Pete Moore-Treasurer
Wayne Whittaker
Loretta Kennedy
Ollie Ridley- Secretary
Melissa Esquibel

DISTRICT STAFF:

Julie Scaplo-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Administrative Assistant

VISITORS PRESENT:
Anthony Mestas, Pueblo Chieftain; Rodney Baird, Rocky Ford Daily Gazette; Phil Reynolds, Southeastern Colorado Water Conservancy District; Andrea Rich, La Junta Tribune Democrat; Virgil Cochran, Lamar Daily News; Rachel Merrill, CWPDA (Colorado Water Protective & Development Association); Dan Henrichs, Highline Canal; Harrell Ridley, Farmer; Don Higbee, LAWMA.

INTRODUCTION OF VISITORS:
President Mauch welcomed each of the visitors to the meeting, and asked them to introduce themselves and identify the organization they represented.

APPROVAL OF MINUTES:
President Mauch asked if the members of the Board had reviewed their copy of the minutes for the June 11, 2003 Board Meeting, and whether there were any corrections or additions. Hearing none, Mr. Whittaker moved, seconded by Ms. Melissa Esquibel, to approve June 11, 2003 minutes. Motion unanimously carried.

PRESIDENT'S REPORT: None

TREASURER'S REPORT:
Treasurer Pete Moore reported that the financial report for the month had been mailed with the Board Meeting minutes of June 11, 2003. He reported for June that total revenues $145,173.91 with expenditures totaling $23,864.81. Verification of the Long-Term Liabilities with an Accountant resulted in deletion of Long-Term Liabilities on the Balance Sheet, and reflecting the initial Ullom Payment as an Asset. Mr. Wayne Whittaker moved, seconded by Melissa Esquibel, to accept Financial Report. Motion unanimously carried.

LEGAL COMMITTEE REPORT:
None

PERSONNEL COMMITTEE REPORT:
Mr. Wayne Whittaker reports per the District's Personnel Policy evaluation of new employees are at three months, six months and one year, then annually. Evaluations are to be done by the General Manager. Since the evaluation is due for the General Manager the Personnel Committee will meet later to discuss this matter.

AGENCY LIAISON:
Mrs. Loretta Kennedy reports that she as a representative for the LAVWCD, have been working with the Arkansas River Water Preservation Committee, which has compiled a draft of "Goals and Principles" to safeguard and preserve water available for diversion and use within the Arkansas River Basin. The following goals are presented for review; a copy attached herewith and becomes a part of the minutes.

The parties will work cooperatively and constructively within this framework towards reasonable and equitable specific solutions, projects and agreements that achieve the parties' respective goals and to the benefit of the Arkansas River Basin. The principles have been jointly created by several entities within the valley. Members of the board will review the "Goals and Principles" received, and will have discussion on August 13, 2003.

WATER ACQUSITION COMMITTEE:
Mr. John Singletary reported that the Water Acquisition Committee met on July 2, 2003, at 1:00 P.M., to review possible water deals. Mr. Singletary feels the Water Acquisition Meeting was very productive; a more extensive description of potential water deals will be covered in Executive Session.

LEGAL REPORT:
Attorney Bart Mendenhall reports:

• The High Plains A & M-Bent County case, regarding legal challenge of District's Existence from Judge Maes's decision-Judge Kolomitz has granted our Order for Summary Judgement and denied High Plains's counter motion. High Plains can appeal the Judgement; however, it is unknown at this time if they will file an appeal.
• High Plain A & M #1 transfer case, the Court did not rule to dismiss the application for failure to comply with Fort Lyon's bylaws. Judge Maes issued a Motion of stay on June 11, 2003, that gives High Plains A & M six months to comply with bylaws of the Fort Lyon Canal Company by seeking Fort Lyon Board approval of the proposed changes.
• High Plain A & M #2-Nothing has happened but Mr. Mendenhall anticipates the same outcome as with High Plains #1.
• Southern High Plains Groundwater Management District's request is in Pueblo District Court for exclusion. They have not notified us of their intent to appeal; the court has not yet provided a record certification from Court as to date. We are working on Mr. Doug Melcher's question to the Board on May 14, 2003. The potential petition to exclude SHPGMA from the LAVWCD's District. There are two condition of exemption from a district, the first being municipality can request exemption if voters, vote to do so, and second being the individual landowners file for exemption. Mr. Mendenhall has been researching this matter since May and has learned that members of SHPGMA would have to file for exemption on an individual basis. Mr. Mendenhall is trying to find a similar cases but it seem as though it has never been done and feels there is very little precedent for the procedure. Mr. Mendenhall would like to contact Mr. Melcher to explain the process. Wayne Whittaker recommended a letter to be sent to Doug Melcher, explaining the cost of handling the application and the complex procedure.
• Bart Mendenhall is working on the documentation for recording the Ullom Option Deal.
• John Knapp and Mike Bartolo of Colorado State University Extension Office can arrange a drip irrigation tour before a future Board Meeting. Drip irrigation is an innovative method of underground pipes, which save water. President Leroy Mauch feels a drip irrigation tour would be beneficial; Mr. Mendenhall will set up the tour.

GENERAL MANAGER'S REPORT:
Julie Scaplo gave an overview of the following items:

• PowerPoint Draft: Board Member Loretta Kennedy heard a request for PowerPoint presentation on the June 11, 2003. Julie has composed a draft presentation for review, which was sent out to the Board on June 17, 2003. The presentation will cover Mission of the District, Milestones, Strategic Priorities, Communication, Water Acquisition Tools, Partnerships, Resource Management, and Funding Options. Any comments, suggestion, or recommendations are welcomed.
• Aquila, Inc. Donation: A thank you letter addressed to Aquila, Inc. (Electric Company), attention to Roger Kort for the generous donation of a Compaq Desk Pro computer, which will allow us to direct more District resources toward the pursuit of our Mission to acquire, retain, and conserve water in the Lower Arkansas Valley.
• SECWCD PowerPoint: A copy of the presentation to be given at the SECWCD's monthly meeting for Ark-Valley Conduit on July 17, 2003, entitled "Creating a Governing Entity Structure".
• New Office Lease: The lease agreement between LAVWCD and Mr. William Gates was signed June 20, 2003. The new office address will be 970 Elm Ave, Rocky Ford, CO 81067, phone numbers will be 719-254-5115, and fax 719-254-5150. Moving, into the new office will be mid July.
• Mr. Rizzuto's Letter: A letter to Otero Junior College will be sent attention Mr. Jim Rizzuto thanking him for the generous accommodations the college has provided for the past six months. It also notifies the College of our intent to relocate to 970 Elm Ave, Rocky Ford, and the estimated last day LAVWCD will occupy Room 109 will be July 31, 2003.
• Furniture Bids: A comparison was shown on four furniture bids received, from Viking Office Supply, $ 11,285.00; Office Depot in Pueblo, Colorado, $ 10,022.00; Gobin's in La Junta, $7,072.35; RMRM, $ 6,088.12. RMRM (Rocky Mountain Record Managers of Pueblo, CO.) had the lowest bid, which includes free installation, and lifetime warranty. Melissa Esquibel recommends authorizing Julie Scaplo to select a bid that will be best for the District. Wayne Whittaker moved, Melissa Esquibel seconded, to authorize Julie Scaplo to select furniture bid. Motion unanimously carried. Also reviewed is the lease of a copier from Gobin's Office Supply, from DI183, DI183F, DI251, DI251F, Julie Scaplo recommends the DI183F, which has a lease price of $ 123.00 per month and terms of 39 months with a service plan of $25.00 per month. The service charge includes parts, labor, toner and 1351 copies. Any excess copies will be billed at .0185 per copy. Wayne Whittaker moved, Melissa Esquibel seconded, to approve the DI183F. Motion unanimously carried.
• Land Trust Brochures: We have received brochures and videos ordered from Land Trust Alliance of Washington, DC. A copy of the Brochure was included in the meeting packet. This publication is designed to provide accurate, authoritative information on the Conservation Easement, and Conservation Options. A time will be scheduled at a future meeting to review videos; the time needed will be about 30 minutes.
  
• Hallock Award: The District would like to thank Mr. Richard Hallock for his exceptional service as acting general manager, by presenting him with an award at a future meeting.
• BlueSky Magazine Interview: Dawn DiPrince, Editor for BlueSky Magazine Quarterly, will conduct LAVWCD interviews in July, for their next publication that is due out sometime next quarter. BlueSky Quarterly is a magazine for Southeastern Colorado, covering different issues that affect Southeastern Colorado.
• Water Tour Agenda: Mr. Bill Milenski will be guiding a tour of the Arkansas River system. Water Tour agenda is set for August 1, 2003, with the tour leaving Pueblo, from the SECWCD parking lot, 31717 United Avenue (Airport Industrial Park). Start time 7:00 A.M., lunch at 12:00 noon in Manzanola at Jasper's and proceeding until 7:00 P.M., concluding at the Amity Ditch. An invitation will be sent to approximately 45 people with RSVP postcard enclosed and due back by July 25, 2003. Action was given to provide van or bus to accommodate the number of attendees. Julie Scaplo informed the Board a list of possible attendees would be needed for addressing the invitations.

MR. DONALD HIGBEE (LAWMA):
Lower Arkansas Water Management Association Representative Don Higbee gave an overview of his association, which runs from Pueblo to the Kansas line. LAWMA was formed in 1972 as a non-profit well owner Association that considers itself both a well association and water management agency. In the 1980's the association involved in legal matters between Kansas and Colorado, LAWMA is more flexible then other ditch companies, having a lease pool, which is similar to a water bank. Lease value varies, this years' value is approximately $40.00 per share, next year may see an increase to $130-$140 per share, and in a wet year, it is some where around $20.00. A share is equal to an Acre Ft in an average year. LAWMA shares have an assessment of $11.30 with the possibility of increase up to $20.00. There are 18,495 shares currently in the association, with yields of 18,000-Acre feet. Transfer of shares need to be approved by the Board of LAWMA; the Board has never turned down the movement of shares. President Leroy Mauch asked, "Would it be beneficial for the LAVWCD to own shares in your association?" Mr. Higbee responded, "The attorneys' for LAWMA do not believe it would be beneficial, but I can see some benefits for example, the possible access to storage in Pueblo Reservoir thru SECWCD". Mr. Higbee would be interested in working with LAVWCD. Mr. Higbee was thanked for his explanation of LAWMA, and the Board felt the overview was very informative.

OLD BUSINESS:
Melissa Esquibel spoke with Scott Richards at PCC regarding the price of producing a video. The cost would depend on what our needs would be; videos are five to seven minutes. There are two methods a video can be priced, the first is approximately $500 per finished minute and the other is an estimate of shooting days, generally, they charge $200 a day plus travel with $150 for editing. Mr. Richards has a couple of people working with him, who are very capable shooters. He would have the ability to produce a video in three or four weeks and feels the video would be completed within a month of shooting. He prefers that we have our own script. He has the capability to do voice-overs. He comes very highly recommend from other groups whom have also previously had videos produced. Julie Scaplo recommends the shooter attend the River Tour on August 1, 2003 for the coverage needed. General Manager will contact Scott Richards for River Tour arrangements.

NEW BUSINESS:

• Loretta Kennedy asked that SECWCD's General Manager Jim Broderick give a presentation to the Board. She would like the same PowerPoint presentation Mr. Broderick gave to the Pueblo City Council, which discussed Regional Water Issues.
• Mr. Wayne Whittaker mentioned that Aurora's lease plan for the High Line Canal has been filed and that any comments need to be filed within thirty days.
• Mr. Singletary would like to review the River Tour Invitation List for August 1, 2003 Tour. Suggestions heard were Press, County Commissioners, and Legislators.

PUBLIC FORUM:
Phil Reynolds reported SECWCD agreed to the use of parking area at SECWCD for the August 1, 2003, River Tour. Mr. Reynolds also reported the status of the letter from LAVWCD requesting 5000 acre-feet of PSOP storage. SECWCD top priorities have been Aurora, Colorado Springs, and Pueblo IGA. They are looking at a PSOP meeting sometime in August. Mr. Reynolds would like to recommend adding a drip irrigation stop to the tour; it would be an extra benefit. He also announced that the SECWCD would be holding a Dam Safety Meeting July 10, 2003, at 1:00 P.M.

Ollie Ridley moved the Board enter into Executive Session for the purpose of:
C.R.S 24-6-402(4) (a): "The executive session concerned the purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest."
C.R.S 24-6-402(4) (e): "Determining Positions relative to matters that may be subject to negotiation; developing strategy for negotiation; and instructing negotiators."
C.R.S 24-6-402(4) (b): "Conferences with an attorney for LAVWCD for the purposes of receiving legal advice on specific legal question."

Wayne Whittaker seconded the motion, to enter into Executive Session. Motion unanimously carried. Mr. Mauch recessed the District meeting to convene the Executive Session at 3:01 P.M.

President Mauch adjourned the Executive Session at 4:20 P.M, and reconvened the District Meeting.

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

• Water Acquisition for LAWMA shares
• Legal Matter regarding exemption proposal for SHPGMD (Southern High Plains Groundwater Management District)

LAWMA SHARE:
Melissa Esquibel made a motion to purchase 100 LAWMA shares from Mr. Norman Dorenkamp at $2,250 per share to be paid near end of 2003. Loretta Kennedy seconded the motion. Motion unanimously carried.

COLORADO LEGISLATIVE COUNCIL:
We have been contacted by, a staff member of the Colorado Legislative Council. The Legislative Water Resources Review Committee has planned a statewide tour and the Legislators have requested a meeting with the LAVWCD to discuss regional issues, when they are in Rocky Ford area. The following legislators are planning to attend the tour:

Lewis Entz
Diane Hoppe
Jim Isgar
Carl Miller
Abel Tapia
Al White
Ken Chlouber
Jim Dyer
John Salazar
Greg Rippey

It was recommended to hold the dinner at El Capitan Dining Room and Lounge, located at 501 Main Street, Rocky Ford, CO.

ADJOURNED:

President Mauch asked if there were any other questions or other matters to come before the Board. Hearing none, the meeting was adjourned at 4:30 P.M.