September 8, 2004 Minutes-Board Meeting

The regular monthly Board meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, September 8, 2004 following the 10:00 A.M., at 801 Swink Avenue, Rocky Ford, Colorado 81067.

Chairman Mauch announced a quorum was present and he noted that Directors Melissa Esquibel and Ollie Ridley were absent. Motion was made in the Enterprise meeting to excuse the absence of Directors Esquibel and Ridley.

DIRECTORS PRESENT:
Leroy Mauch- Chairman
John Singletary-Vice Chairman
Pete Moore-Treasurer
Loretta Kennedy
Wayne Whittaker

DISTRICT STAFF:
Peter Nichols-Attorney
Kim Chavez-Administrative Coordinator
Randa Morlan-Temporary Hourly Aide

EXCUSED MEMBERS:
Ollie Ridley - Secretary
Melissa Esquibel

INTRODUCTION OF VISITORS:
Chairman Mauch welcomed each of the visitors during the Water Activity Enterprise meeting and asked the visitors introduced themselves and identify the organization they represent.

VISITORS PRESENT:
Rodney Baird, La Junta Tribune Democrat; Ken Ullom, Farmer; Karl Licis, Pueblo Chieftain; Dannie McMillan, City of Lamar; Virgil Cochran, Lamar Daily News; Tammy Stroud, AGUA; John Wilkins-Wells, CSU; Ken Cullen, Farmer; Kevin Salter, KDA/DWR; Doug Melcher, High Plain Ground Water Management and John Heideman, Tamarisk Coalition.

CHAIRMAN'S REPORT:
Chairman Mauch reported that the District is in the process of searching for a successor General Manager. There were 21 applicants and 10 interviews are scheduled for September 20 and 22, 2004. On behalf of the District, Chairman Mauch purchased 50 shares of Lower Arkansas Water Management Association (LAWMA) water, August 26, 2004 in Lamar, Colorado at a cost of $1,925 per share, on which the assessments for this year has already been paid. The newly purchased water will be leased out for $50.00 per share. Chairman Mauch received a letter from Leo Eisel, Brown & Caldwell regarding improving communication between the District and Brown & Caldwell; he would like to attend the October 13, 2004 Board Meeting.

APPROVAL OF MINUTES:
Chairman Mauch asked if the Board members had reviewed the minutes of the August 11, 2004 Board Meeting and the August 24, 2004 Personnel Committee meeting. Chairman Mauch asked whether there were any corrections or additions to the minutes. Director Whittaker suggested adding the following additions to the general meeting minutes on page 5, public comment section, add the sentence, " Mr. Melcher said that he did not keep a copy of the petitions", same section, add, " deficient petitions and mail to Mr. Melcher". Page 6, number 1, the addition of "file a statement of opposition in AGUA", same section, #3, the addition of, "uses his judgment whether or not to purchase any water". Director Whittaker moved to approve the August 11, 2004, Board Meeting minutes as corrected seconded by Director Moore. Director Whittaker moved that the Personnel Committee minutes reflect the addition of, "review resumes which were timely submitted in application for the General Manager position and review." Seconded to approve as corrected by Director Moore. Motion unanimously carried.

TREASURER'S REPORT:
A listing of checks for payment of invoices received following the previous Board meeting was presented to the Board for review. Treasurer Moore reported that the financial report for the month of August was included in the Board's Monthly Meeting Packet. He reported that August total revenues at $53,086.33 with expenditures totaling $125,668.40. The Board examined the listing and reviewed the reconciliation of bank accounts for the past month, whereupon a motion was made by Director Moore, seconded by Director Kennedy and unanimously carried to ratify payment of bills represented by check numbers 1804 through 1840, with the exception of voided check numbers 1814 and 1815. The approved financial report will be attached as permanent record to the minutes.

Treasurer Moore reported that Kim Chavez is the District's Budget Officer for 2005 and her official title is Financial Coordinator/Budget Officer. The assessed valuations have been received from all five counties and all five counties showed an increase with the exception of Crowley County.

COMMITTEE REPORTS:

Water Acquisition-Director Singletary reported that a follow up letter has been sent to Mr. Denton Volgamore August 23, 2004 regarding his Twin Lake shares.

Director Whittaker said he wanted to commend Kim Chavez. She has stepped up to the plate and handled everything that needs to get done in an excellent manner, while working without a General Manager.

Liaison- Director Kennedy stated that the District's video presentation would be held on September 21, 2004 at 7:00 PM at the Robert Hoag Rawlings Public Library located at 100 E. Abriendo Ave, Pueblo Colorado. The press release for the video presentation should be on the Districts letterhead. The Woodruff Memorial Library in La Junta, Colorado expressed their interest in a video presentation and showing for the general public.

LEGAL REPORT:
Peter Nichols, Trout, Witwer & Freeman will review the following in Bart Mendenhall absence.

NEW BUSINESS:
City of Lamar dual system. Dannie McMillan, Superintendent with City of Lamar along with John Wilkins-Wells, Colorado State University-Ft Collins gave a presentation of a dual water distribution system, " Pressurized Secondary Supply Feasibility Study". Mr. McMillan said the system could help provide a new market for irrigation water that would help keep it in the valley. The system would use Ft. Bent Canal system water rights the City owns to provide a secondary source of untreated water for outdoor watering uses. The City will continue use the existing water system for indoor and potable water uses. The dual water system would cost approximately 8 million to build with six phases to the project. City of Lamar is searching for funding for Phase I of the project from the LAVWCD in the amount of $200,000. Mr. McMillan said he would be requesting funding assistance from several sources, including Colorado Water Conservation Board, Colorado Department of Local Affairs and GOCO. Director Kennedy said she certainly support this project, but would like to see a financial breakdown.

Tamarisk Coalition Presentation. John Heideman, Finance Director for the Grand Junction Tamarisk Coalition gave a brief overview of the tamarisk; also know as salt cedar, and its water stealing nature. The tamarisk was brought in from Asia in the 20th century as a decorative tree due to the purple flower the tree produces. The tree has spread to over 17 states. The Federal Government has named the tree as a noxious weed and this could receive Federal funding to help control the tamarisk. Mr. Heideman requested support for the eradication effort by funding of $20,000 for the coalition. Direct Singletary thanked Mr. Heideman for the important information.

Colorado State University-Pueblo. Kristina Proctor of CSU-Pueblo reported that she and other officials met with Directors Singletary and Kennedy at Otero Jr. College in La Junta. They met to discuss ways the University and the District could work together on forming a comprehensive overall strategic and master plan. The University has faculty and staff with expertise in water issues that could be engaged in both water and related economic issues. Another possibility is the University providing an intern for the District. Director Singletary said the next step would be for the LAVWCD Board and CSU officials to meet and discuss the possibilities.

OLD BUSINESS:
The following entities would like financial assistance from the District:

PUBLIC COMMENT:
Ken Cullen had filed three conservation easements with the District and paid a total of $1,050 in application fees. Mr. Cullen feels he completed all the necessary steps to complete the conservation easements; however, the District did not accept the easement applications. Mr. Cullen has taken the easements to another source and would like the application fee money returned. The application fees of $350 are to cover administrative expenses such as copies, phone calls, processing, and legal review cost. The LAVWCD Conservation Easement Policy Guidelines and Procedures Document, page 2, Section III. Procedures, states that the application fee of $350 per easement is non-refundable and used to set off the processing and legal review costs. Director Singletary moved to refund the $1,050. Director Whittaker said research of the records indicates that the applications did not incur legal review cost and for that reason the money should be refunded. Seconded by Director Whittaker and motion was unanimously carried.

Mr. Doug Melcher of Southern High Plains Ground Water Management Association presented Counsel with 2 new petitions and 3 revised petitions for review in the exclusion process. In addition, Melcher submitted a check in the amount of $136.00 for the filing fee for the approved petitions. The Board recommended that since Legal Counsel Bart Mendenhall was out of the office until September 30, 2004, the new petition would be reviewed upon his return.

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Whittaker moved that the Board convene into Executive Session, seconded by Director Kennedy. Motion unanimously carried. Chairman Mauch recessed the District meeting at 12:45 PM to convene the Executive Session at 1:00 P.M.

Peter Nichols review that the Executive Session will be held for the purpose of:
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 August 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 Mauch adjourned the Executive Session at 2:45 P.M, and reconvened the District Meeting at 2:46 PM.

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

MOTIONS OUT OF EXECUTIVE SESSION:
Chairman Mauch said there were recommendations from Executive Session, which were as follows:

1. Commit support to the City of Lamar Dual Water System of up to $100,000 contingent on plan completion. Director Kennedy moved to grant support to City of Lamar Dual System. Seconded by Director Moore. Motion unanimously carried.

2. Commit support of $25,000 to Tim Gates, Colorado State University-Ft. Collins Research to support optimal management of the Lower Arkansas River, Colorado. Director Singletary moved to grant support for the research funding of $25,000. Seconded by Director Moore. Motion unanimously carried.

3. Commit support to the Tamarisk Coalition program in the amount of $5,000. Director Singletary moved to grant support of $5,000 to Tamarisk Coalition. Seconded by Director Whittaker. Director Kennedy voting nay. Motion passed with a vote of 3 to 1.