August 16, 2006 Minutes-Board Meeting
The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, August 16, 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
Bill Hancock-Conservation Program Manager
MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Whittaker moved that the Board convene into the Water Activity Enterprise, seconded by Director Mauch. 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 Esquibel. Motion unanimously carried.
APPROVAL OF MINUTES:
July 19, 2006 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the July 19, 2006 Board Meeting, and whether there were any corrections or additions. Director Whittaker moved to approve the July 19, 2006 minutes, seconded by Director Kennedy. Motion unanimously carried.
TREASURER’S REPORT:
Director Whittaker reported that the financial report for the month of July was included in the Board’s Monthly Meeting Packet. He reported July total revenues of $331,901.35 and total expenditures of $71,510.56. Director Whittaker moved to accept the July Financial Statement, seconded by Director Moore and carried unanimously.
PRESIDENT’S REPORT:
Chairman Singletary took the opportunity to speak before the General Manager’s Report since he would have to leave early.
Chairman Singletary said in regards to negotiations and PSOP participation, an update on negotiations with Colorado Springs, which have been going on for the better part of 18-24 months, trying to come to an agreement that would be satisfactory to the proper use of Fountain Creek, the Arkansas River, and water quality and the enlargement of Pueblo Reservoir.
Chairman Singletary pointed out that he had reported he was optimistic about negotiations with Colorado Springs, and unfortunately, he no longer so optimistic on the way things are to be progressing. He stated it is important to keep the five counties of the District protected.
Chairman Singletary expressed the District would support SDS, but only if Colorado Springs began working toward improving Fountain Creek water quality so that it is comparable to water released from the Pueblo Dam.
Chairman Singletary stated that the flows from Fountain Creek, if controlled, could become an asset through reuse and retention dams. He said if storm water on the Fountain Creek is not controlled, nothing is going to happen. Thus far, Colorado Springs has not funded the plan or moved forward and that has to be done. The District has to hold Colorado Springs to their obligation as expressed in their resolution.
Chairman Singletary said he is frightened by the enlargement of Fort Carson and the continued growth that creates more potential for pollution runoff from urban surfaces. He stated that when you think about it, El Paso County has a bigger population than the state of Wyoming and is sending all its waste down Fountain Creek, which is quite a bit of impact.
Chairman Singletary expressed that the District has supported the Conduit, despite continued grumbling that it is holding up PSOP negotiations. The District supports the request of the conduit committee to apply water form dried-up lands in Crowley County to the Conduit.
Chairman Singletary stated there should not be any more Fry-Ark water at $9 an acre-foot going to Colorado Springs. The Fry-Ark Project was intended to help the lower valley.
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:
Ken Olsen, Lake City Commissioner; Craig Stuller, Lake County; Carl Schaefer, Lake County; Bill Klauber, Lake County; Rego E. Omerigic, Lake County; Del Nimo, Colorado State University (CSU) – Pueblo/Biology; Chris Woodka, Pueblo Chieftain; Virgil Cochran, Southeastern Land & Environment; John Merson, State Parks; Musgrove, Bureau of Reclamation; Roy Vaughan, Bureau of Reclamation; Carl McClure, Farmer; Pat Edelmann, USGS; Gerry Knapp, USGS; Dennis Smith, Lake County; Allison Cortner, Senator Salazar’s office-Pueblo; Kevin Karney, Otero County; and Jim Valliant, CSU-Pueblo.
GM REPORT:
General Director Winner welcomed guests from Lake County and opened the meeting to these visitors to explain why they were attending the Lower District meeting.
PRESENTATIONS:
Lake County Commissioner, Ken Olsen, took the opportunity to thank the District for having them at their meeting. Mr. Olsen explained that in November there was a vote by Lake County on “Do you wish the county commissioners to look into joining the Upper Arkansas or Southeastern District?” The ballot came back with the majority of the votes going to the Lower District, which was not on the ballot. Mr. Olsen then gave a brief history of Lake County with it originally being a mining community and the people of the area not being concerned with water. There is little water in the area for agriculture water.
Commissioner Olsen stated that Lake County does not have water for long-term use to grow with and is concerned for Lake County’s economic future, like the lower valley.
Commissioner Olsen was accompanied by fellow commissioners Mike Hickman and Carl Schaeffer, along with several Lake County residents.
Commissioner Hickman stated that Lake County has been ignored by the big boys. The reservoir levels have gone up and down which affects the fisheries. When you look at Lake County, you see that we have been abused for years and years and years by the federal government, the state and the cities. We get practically nothing.
Dennis Smith, a rancher who represents Lake County on the Arkansas Basin Roundtable, said the county’s issues are similar to those that led to the formation of the Lower Ark District in 2002. He pointed to the difficulty in getting the Arkansas Valley Conduit built to provide drinking water east of Pueblo as a similar struggle for Lake County to get recreation benefits promised under the Fryingpan-Arkansas Project 40 years ago. Mr. Smith asked where the Fry-Ark Project went wrong. Four years ago, you did not have the tools to get done what needed to be done, so you formed the district. Things that were supposed to be developed in Lake County were never accomplished either.
Commissioner Olsen stated that Lake County has made little progress with its investigation on joining the Southeastern District, and has remained at odds over proposed Preferred Storage Options Plan legislation by the district. He also stated that talks with the Upper Arkansas have been productive, particularly in the area of providing blanket augmentation, but the county wants to keep options open.
Commissioner Olsen said Lake County should not be in the water business and they needed assistance from professionals like the Lower District.
Commissioner Olsen said the present commissioners want to see more done to restore fisheries and recreation in the county. Lake County is not saying absolutely no to future projects, but needs to be included as a beneficial party to the process.
Commissioner Olsen stated Lake County would bring high mountain storage opportunities to the Lower Ark District and would benefit by having to pay less in back taxes to join the Lower Ark, compared to the other two districts.
Director Kennedy stated that Lake County is not standing out there all alone. Water projects should benefit the entire state. It should not become an urban area surrounded by desert.
At the end of the presentation by Lake County, Chairman Singletary, having to leave the meeting early, turned the meeting over to Vice-Chair Moore.
GM REPORT:
General Manager Winner suggested setting up a committee between the Lower District and Lake County to pursue talks between the two and try to discover any problems or issues that may arise in the future from the joining of Lake County to the Lower District. He suggested having two board members on the committee, including Director Kennedy.
Vice-Chair Moore requested discussion on the subject. After hearing positive feedback on the issue, he requested a formal motion to set up a committee. Director Esquibel moved to form a committee with General Manager Winner and two board members to continue talks with Lake County and discuss possible problems with the merger. Director Kennedy seconded the motion. Motion carried unanimously.
General Manager Winner pointed out the Larkspur tab in the board meeting packet. He stated he is currently working with Director Whittaker and the Larkspur Ditch / Catlin Canal Company trying to put the contract into place to purchase the Larkspur.
General Manager Winner discussed Proof of Concept tab in the board meeting packet. He stated the feasibility study for the investigation of the proof of concept paper is available to see if our water management program will work. The paper has been finalized and the program will work. The ditch companies he spoke to on the matter expressed they wanted to get the project moving fast. This program can really help the Valley. It originally had been planned to work with entities like Colorado Springs on the project, though that no longer is feasible.
Attorney Peter Nichols took the opportunity to discuss this subject to avoid jumping back and forth. He pointed out the draft analysis of 10/41 regulations in the Lower Arkansas Valley and District will need to obtain a 10/41 permit from Otero and Bent Counties. Attorney Nichols also stated that after looking at some of the ditch by-laws, some of them will need amended to participate in the program.
Attorney Nichols also stated that he had identified a water economist to prepare a proposal of a feasibility study for the district, which had been voted on at the July board meeting. He also said that Colorado Spring’s attorney will be assisting the District with ditch by-laws and the project.
General Manger Winner addressed the Needs Assessment Tab. The needs assessment is part of the Arkansas Basin Round Table. Provided in the packet is a matrix which allows you to fill in the gaps to what studies have and have not been completed. When people leave the water business, they leave gaps, and with this matrix it will give new comers the ability to see all the information already completed.
General Manger Winner gave a year-to-date report on conservation easements. As of the date, the District has accepted conservation easements on 156 shares of water and 318 acres. There were six different easements totaling $1.3 million dollars and water value of $830,000. He expects that the district will have at least this many more easements by the end of the year.
General Manger Winner stated that the District is also working with a gentleman on a master plan for the Arkansas Basin to have good direction on water acquisition and easements.
General Manager Winner also stated that Kim Chavez and Rachel Bogner had worked very hard on the Wake-up Breakfast with La Junta. He then had a slide show presentation given to show pictures of the wake-up breakfast.
General Manager Winner pointed out that there were invitations in front of all the Directors with information on the Legislative Dinner to be held at the Colorado State Fair and all the Directors were invited.
COMMITTEE REPORTS:
Personnel & Liaison: Director Kennedy had nothing to report.
Legal: Director Esquibel stated that the District is not being sued at this time.
LEGAL REPORT:
Attorney Nichols spoke on the Keesee II and water rights purchased to keep water in the Lower Arkansas Valley. He started putting together a list of those to buy LAWMA, including state parks and Natural Resource Services. The board had agreed to make the deal go forward. Attorney Nichols stated that the District is at an impasse with LAWMA and that the attorneys of Keesee Ditch believe they will be able to close the deal by selling everything to their shareholders. The District has expressed to the Keesee Ditch that if the deal does not go through, the District would be interested in purchasing a portion of the Keesee.
Attorney Nichols pointed out a legal brief to the board and stated the District had given permission to hire a lobbyist to help with water quality legislation. He stated that many had been identified who had no issues in representing the Districts agendas with water. Interviews will need to begin soon so recommendations could be made.
Attorney Mendenhall addressed the Pension Protection Act of 2006(H.R.4), which contains good news for conservation easements. It provides for increasing the deduction limits for qualified easements from thirty percent to fifty percent, allows qualified farmers and ranchers (those deriving more than 50% of their income from farming or ranching) to deduct up to 100% of their income, and increases the number of years over which a donor can take those deductions from six to sixteen years.
Attorney Mendenhall explained there would be a meeting with the Holbrook Ditch Directors on Friday, August 18, 2006. All of the companies have been at least interested so far, if not ready to get on board. Attorney Mendenhall also stated he is in the process of scheduling meetings with Oxford-Farmers and any other ditch companies which should be visited.
Attorney Mendenhall explained that conservation easements continue to take a considerable amount of time, but progress is being made. One easement has been closed during the week. Several others are coming along, but need detail work before they can be finished. They should close soon.
Attorney Mendenhall brought one conservation easement to the Boards attention.
Resolution 06-10: Director Esquibel moved to change the words “with further” to “will further” in the resolution. Director Esquibel then moved to accept Resolution 06-10, Matthew Markham Carter of Crowley County for 40-acres of land with 25 shares in Colorado Canal Company and 25 shares in Lake Meredith Reservoir Company, with above mentioned changes being made. Director Kennedy seconded the motion. Motion unanimously carried.
PUBLIC COMMENT:
Commissioner Olsen took the opportunity to thank the District again for having Lake County at the board meeting, as did Dennis Smith.
ADJOURNED:
Vice-Chairman Moore asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Esquibel, seconded by Director Kennedy to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:08 P.M.