September 10, 2003 Minutes-Board Meeting

A meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors
was held on Wednesday, September 10, 2003 at 10:00 A.M., at 970 Elm Avenue, Rocky Ford, Colorado.

After roll call-Vice-President Singletary announced a quorum was present.

DIRECTORS PRESENT:
John Singletary-Vice President
Pete Moore-Treasurer
Wayne Whittaker
Ollie Ridley- Secretary
Melissa Esquibel

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

EXCUSED MEMBER:
Leroy Mauch- President
Loretta Kennedy

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

VISITORS PRESENT:
Anthony Mestas, Pueblo Chieftain; Rodney Baird, La Junta Tribune Democrat; Virgil Cochran, Lamar Daily News; Harrell Ridley, Bent County Farmer; Keven Salter, KS Dept of Ag/DWR; Michael Gates, Rocky Ford Daily Gazette; Steve Witte, Colorado Dept. of Water Resources Division Engineer; Dr. Mike Bartolo, CSU Extension; Richard Hallock, Pueblo West.

APPROVAL OF MINUTES:
Vice-President Singletary asked if the Board members had reviewed the minutes for the August 13, 2003 Board Meeting and August 6, 2003 Acquisition Committee Meeting. Director Singletary asked whether there were any corrections or additions to the minutes. Hearing none, Director Ollie Ridley moved for approval of the August 13 and August 6, 2003 minutes, seconded by Director Pete Moore. Motion unanimously carried.

PRESIDENT'S REPORT: None

TREASURER'S REPORT:

• Treasurer Pete Moore reported that the financial report for the month of August was included in the Board's Monthly Meeting Packet. He reported August total revenues at $49,183.50 with expenditures totaling $187,031.74. Pete Moore moved to accept the Financial Statement, Melissa Esquibel seconded. Motion unanimously carried.
• Treasurer Moore reported that Phil Reynolds of the SECWCD has been serving as the District's Financial Officer. The District should appoint a new Finance/ Budget Officer per C.R.S. Section 29-1-104. Treasurer Moore recommended Kim Chavez and moved to appoint Kim Chavez the LAVWCD Finance and Budget Officer. Wayne Whittaker seconded the motion. Motion unanimously carried.
• Treasurer Moore reported that budget estimates must be submitted to the budget officer (Section 29-1-105, C.R.S.) so that a proposed budget can prepared, which must then be submitted to the governing board by October 15. General Manager Julie Scaplo, Treasurer Moore, and the newly appointed budget officer will meet on September 22, 2003, to discuss a 2004 proposed budget. Mr. Moore would like the finance committee to meet before the acquisition committee on October 1, 2003 at 11:00 A.M. in District office to further discuss the proposed budget.
• August 25, 2003, Richard White of Grimsley White & Company reviewed the District's financial records to verify that the records are being kept correctly. Kim Chavez reviewed the audit findings with the Board.
• At last meeting, Director Ridley made a request to transfer the District's funds into an interest bearing checking account. The action is complete and the District has earned $59.42 for a total of four days.

LEGAL COMMITTEE REPORT: None

PERSONNEL COMMITTEE REPORT:
Director Wayne Whittaker requests that Personnel matters be discussed in Executive Session at the end of the regular meeting.

AGENCY LIAISON:
Due to the excused absence of Loretta Kennedy, the General Manager will give a report. It is Director Kennedy's desire to have the Board approve the final revision of the Arkansas River Water Preservation Committee Goals and Principles Document. The principles have been jointly created by several entities within the valley. Lake County is the location of the Arkansas headwaters and Treasurer Moore feels the agreement should include or at least acknowledge Lake County. Pete Moore moved, seconded by Wayne Whittaker to request the Arkansas River Water Preservation Committee add Lake County to the agreement. Motion unanimously carried.

Director Whittaker moved to approve the Goals and Principles, Melissa Esquibel seconded. Motion unanimously carried.

Official signing of the Goal and Principles is scheduled for September 26, 2003, at 1:00 pm at the Pueblo Convention Center.

ACQUSITION COMMITTEE:
John Singletary reported that the Acquisition Committee met on September 3, 2003, at 1:00 P.M. to review possible water and land deals. Vice-President Singletary feels the Acquisition Meetings are very productive in keeping water in the valley and that the District is making great progress. Thanks to Director Whittaker's donation of 1/10 share of Catlin Canal Water, the District is officially in the water business and into the category of water owners.

General Manager Scaplo reports the partnership with the Ark-Valley Preservation Land Trust is on hold until formation information requested by District Lawyer Peter Nichols is received and reviewed. She reports there are at least five people actively pursuing Conservation Easements for completion in December 2003.

LEGAL REPORT:
Attorney Bart Mendenhall reports:

• If a partnership forms between Arkansas Valley Preservation Land Trust and the District, both policies will need to be similar. The District will also need a detailed explanation of how Easements will be completed.
• High Plain A & M / Fort Lyon case: A motion was filed by High Plain to consolidate the 2002 and 2003 cases. Fort Lyon has consented in the consolidation and this has happened.
• Southern High Plains Ground Water Management District has withdrawn their appeal for exclusion. They will pursue exclusion on an individual basis.
• High Plains A&M did not file an appeal with the court prior to the deadline date of August 16, 2003 regarding the challenge to the District's existence.

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

• CPA's: General Manager attended a meeting in Lamar, Colorado regarding Conservation Easements September 4, 2003. The CPA firm Kennedy and Cole would like to hold workshops for their clients regarding Conservation Easements.
• Land Stewardship Consulting: Baseline inventories are scheduled on the Don Ullom properties September 18 & 19, 2003. Alan Carpenter of Land Stewardship Consulting will be conducting the inventories.
• IGA: General Manager will attend Arkansas Basin Roundtable meeting this afternoon, (September 10), and will receive copies of the SECWCD/Aurora IGA agreement. Copies of the agreement will be distributed to the Board Members on Thursday, September 11. SECWCD plans to vote on the IGA next Thursday, September 18, 2003.
• Upcoming Events: General Manger gave a brief summary of the coming events. If any Board Member would like to attend these events, please contact the District office.

OLD BUSINESS:
The following issues were discussed:

• LAVWCD Land Trust Conservation Easement Policy: A policy will be written and sent to the Board for approval at a future meeting. The Board needs to clarify a few questions regarding application fees, stewardship fees and baseline inventory costs. These questions will be addressed at the next Acquisition Meeting on October 1, 2003.
• SECWCD/Aurora IGA: Director Whittaker expressed his concern relating to the IGA because it supports the preferred storage option plan, which would enlarge Pueblo reservoir. It would behoove the Southeastern District to look at the plan and amend the plan to allow space to be 'multiple use'. The Board may plan a conference call to discuss the IGA after copies have been received and reviewed by Board Directors.
• Steve Witte: Vice-President Singletary asked Division Engineer Steve Witte how the 66,000 additional acre-feet storage in Lake Pueblo would be filled. Vice-President Singletary asked where the water would come from the fill it. Mr. Witte said that the re-operations plan at the Pueblo Reservoir, part of the proposed increase in storage capacity, would allow storage of non-project water in the project. Singletary asked why Aurora is so eager to pass the new legislation to allow the additional storage space plus the new re-operation plan. Mr. Witte did not attempt to speculate.

NEW BUSINESS:
Vice-President Singletary would like to recognize Mr. Richard Hallock. Mr. Hallock served as acting General Manager of the District until April 8, 2003. The District would like to thank Mr. Hallock for his exceptional service by presenting him with an award. Vice-President Singletary explained that Mr. Hallock is one of the reasons the District is thriving today. It is an honor to present Mr. Richard Hallock with an award, which represents the hard work he has done for the District; from the Board and the Lower Arkansas Valley.

Mr. Witte presented the Lower Arkansas Valley Water Conservancy District with the gift of a map, which covers the entire Arkansas River Drainage Basin and identifies the major reservoirs, tributaries and all major ditches below Pueblo. Mr. Witte was thanked by the Board.

Mr. Witte reported on the content of Special Master Arthur Littleworth's draft report regarding the on-going litigation with the State of Kansas. The summary is as follows:
1. The report states prejudgment interest is to be calculated from the period 1950 to 1994 for $29- million instead of $53- million that was first requested.
2. The Supreme Court is asked to approve the order of July 25, 2001 and reject the proposed evidence Kansas had presented regarding winter water storage.
3. Colorado use rules have brought Colorado in compliance with the obligation under the Arkansas River Compacted for the period from 1997 to 1999.
4. Colorado measurement rules are adequate for the purpose of supplying data for input to the HI model. Flow meters will not be needed.
5. He found that the data should be better; there are five stations to measure evapo-transportation losses of the river. The Special Master requires that the stations provide accurate information instead of adjusted data. Mr. Witte would like the District to assist in the cost of having Mike Bartolo from Colorado State University check the hydrograph on the correction and measurement at the sites. Mr. Witte estimated the cost to be approximately $2,000.
Mr. Bartolo gives the web address of www.csuag.com.

Kevin Salter with Kansas Department of Ag/DWR explained there are four field offices in Kansas and what they need is interaction with Colorado, especially the LAVWCD Board. He came to see the dry-up acreage. He would like to have more of a field presence. Vice-President Singletary thanked Mr. Salter for coming down to the meeting and feels Kansas has the benefit of the LAVWCD. He would like Mr. Salter to return to discuss Kansas Law.

PUBLIC FORUM:
Director Singletary asked if there were any other questions or matters to come before the Board, hearing none- Vice-President Singletary said a request had been made for the Board to enter into Executive Session for the purposes 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)(f): "Personnel matters except if the employee who is the subject of the executive session has requested an open meeting, or if the personnel matter involves more than one employee."

The presence of the following persons was requested at this Executive Session:
· Board Members
· General Manager
· Counsel for the District
· Administrative Assistant
Pete Moore moved that the Board convene into Executive Session, seconded by Melissa Esquibel. Motion unanimously carried.

Vice-President recessed the District meeting to convene the Executive Session at 12:30 P.M. He adjourned the Executive Session at 12:45 P.M, and reconvened the District Meeting.

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

• Acquisition property interest
• Employment matters
  Wayne Whittaker moved, seconded by Melissa Esquibel to increase Administrative Assistant/Finance Officer salary for $32,000 as of September 1, 2003. Motion unanimously carried.

Director Pete Moore moved, seconded by Ollie Ridley, to hire a housekeeper for the District office. General Manager and Administrative Assistant are currently doing the cleaning. Motion unanimously carried.

ADJOURNED:
Singletary asked if there were any other questions or other matters to come before the Board. Hearing none, the meeting was adjourned at 1:00 P.M.