September 14, 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, September 14, 2005 at 10:00AM, 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
Ollie Ridley-Secretary
Leroy Mauch
Melissa Esquibel

DIRECTORS EXCUSED:
Loretta Kennedy

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Administrative Assistant

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Whittaker 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 10:05 A.M., seconded by Director Mauch. Motion unanimously carried.

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:
Rodney Baird, La Junta Tribune Democrat; Wayne Snider, La Junta Development; Bill Yohey, Kiowa County Commissioners Office; Carl McClure, Town of Olney Springs; Phil Reynolds, SECWCD; Bill Long, SECWCD; Brenda Fillmore, AGUA; Chris Woodka, Pueblo Chieftain; Heather Maio, Pueblo City-County Health; Sal Pace, Congressman Salazar; Allison Cortner, Senator Salazar; Ken Kester, Senator; Matt Heimerich, Crowley County Commissioner; Gary Bostrom, Colorado Springs Utilities; Lionel Rivera, Mayor of Colorado Springs and Carole Cange, Pueblo citizen.

APPROVAL OF MINUTES:
August 10, 2005 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the August 10, 2005 Board Meeting, and whether there were any corrections or additions. Director Mauch moved to approve the August 10, 2005 Board meeting minutes, seconded by Director Moore. Motion unanimously carried.

TREASURER'S REPORT:
Director Whittaker reported that the financial report for the month of August was included in the Board's Monthly Meeting Packet. He reported August total revenues of $50,622.07 and total expenditures of $71,021.84. Director Whittaker moved to accept the August Financial Statement, seconded by Director Moore and carried unanimously.

RESOLUTION:

•Community Outreach Program- General Manager Winner announced that the Board of Directors of the LAVWCD will need to adopt a resolution for the Community Outreach Program. The outreach objective includes ongoing outreach activities and activities that will be implemented in the future that consist of education, community outreach and conservation programs. Objectives of the Community Outreach Program are:

Director Whittaker moved to adopt the resolution for the Community Outreach Program, seconded by Director Moore. Motion unanimously carried.

•Special Districts Property and Liability Pool- Attorney Mendenhall reviewed the resolution of the Special Districts Property and Liability Pool and noted that the Board of Directors will need to adopt the resolution and appoint a representative and alternate representative to the pool.

Director Whittaker moved to approve the Special Districts Property and Liability Pool resolution, to become a member of the pool and for Chairman Singletary and General Manager Winner to be the Primary and Alternative Representatives, seconded by Director Ridley. Motion unanimously carried.

•Director Mauch announced he had mentioned at the Conduit meeting a couple weeks ago that he would suggest to the Board that the District match SECWCD's contribution of $50,000 toward the Arkansas Valley Conduit Project.

Director Mauch moved to donate $50,000 toward the Arkansas Valley Conduit Project, seconded by Director Whittaker. Motion unanimously carried.

Chairman Singletary noted that the Conduit Project has the District's full support of the project.

•General Manager Winner announced that Tim Gates, CSU has asked for the Board to consider funding $50,000 toward the 2006 year studies of ongoing data gathering, modeling, and pilot implementation efforts of water quality in the Lower Arkansas Valley. General Manager Winner suggested that the Board fund $15,000 for the 2006 studies.

Discussion followed on the amount that the District funded for 2004.

Director Whittaker moved to fund Tim Gates, CSU in his studies of water quality in the Lower Arkansas Valley for $25,000, seconded by Director Mauch. Motion unanimously carried.

Chairman Singletary and Director Whittaker believe Tim Gates' studies could be beneficial to the lower valley.

•General Manager Winner reported on the damage to the Forest Service near Marshall Pass below Larkspur ditch and explained that he would like to exercise the option with the Catlin Canal Company to purchase the Larkspur Ditch if the Board decides to put money into the repairs on the ditch. He is concerned that once the 10 year lease is up that money spent on repairs on the ditch would be lost. He asked for permission to negotiate with the Catlin Canal Company on the Larkspur ditch purchase.

Director Whittaker asked to be recused from the discussion.

Chairman Singletary explained that the District needs to be on firm ground with the Catlin Canal Company.

General Manager Winner said that the District was responsible for the damage on the road, and that the insurance company has agreed to payment for repairs.

Attorney Mendenhall recommended amending the existing agreement provide for Catlin Canal Company shareholders to vote on whether or not they would approve the sale if the District exercised the option.

Director Mauch moved to recommend that the existing agreement be amended where it is binding and exercise the option in 2006, seconded by Director Ridley. Motion unanimously carried.

•General Manager Winner passed out the agenda for the Arkansas River Basin Roundtable meeting to be held on September 15, 2005.

General Manager Winner reported that Attorney Mendenhall will update on a few conservation easements which he believes the Board should accept. He then passed out a copy of letters from Peter Nichols addressed to Michael Strugar of the Conservation Resource Center which state that the conservation easement appraisals look excellent.

PRESENTATIONS:
Representative Dorothy Butcher- Representative Butcher addressed the importance of water and agriculture in Southeastern Colorado and said that everyone needs to think about the future and our communities futures. She further discussed water quality in Southeastern Colorado and her concern with the spills of sewage into the Fountain Creek. She added that it is important to involve the citizens affected by the problems of water quality.

Representative Butcher read a list of her requests from a letter she sent to the Colorado Springs Mayor Lionel Rivera:
1. Establish a storm water enterprise in Colorado Springs.
2. Create a priority list for repairs of rebuilding and repairing of sewers and storm drains.
3. Have the developers build storm water detention ponds.
At the conclusion of Representative Butcher's speech she asked the LAVWCD Board to support Friends of the Fountain and support the restoration of the river.

Chairman Singletary commented saying that the District has been working on a plan concerning the Fountain and believes they are ahead of the Friends of the Fountain.

Representative Butcher suggested that the Board send a representative of the District to attend the meeting of the Friends of the Fountain.

Senator Ken Kester- Senator Ken Kester gave a brief speech on the importance of water quality in the Lower Arkansas Valley and the importance of keeping water here. He added that cooperation plays an important role in the Lower Arkansas Valley.

Chairman Singletary commented that water quality is a large priority in the valley.

Representative Butcher noted that she did not mean to point fingers at Colorado Springs but at the issue of water quality. She added that three draft bills on water quality will be coming out soon and that they will invite the District to the table in helping draft the bills.

Sal Pace representing Congressman Salazar's Office commented the he attended a meeting of the Colorado Water Conservation Board in Glenwood Springs, CO and said their board unanimously supports Referenda C and D.

General Manager Winner commented that Pueblo citizens and the District need to be active in and support the storm water enterprise and noted that he plans to attend a meeting on September 20, 2005 in full support on the storm water enterprise which addresses the prevention of storm water flows down the Fountain Creek.

Lionel Rivera -Colorado Springs Mayor, Lionel Rivera reported that Colorado Springs is working diligently to meet all needs of the people and that they want to help with economic development. He said he believes that growing crops in the lower valley to produce Biodiesel would be a good idea for the Lower Arkansas Valley. He noted that they are currently working on a project with reinforcing a sewer line across Fountain Creek. Additionally, they have been replacing and repairing old sewer systems and storm drains, but are now re-prioritizing their funds. He added that they have an obligation and a duty to do something, and that they are putting more requirements on developers. He added that they also want to be there to help farmers financially whether it is through leasing or purchase of Biodiesel fuel.

Director Mauch noted that he appreciated Mr. Rivera's comment on being there for the farmer.

Bill Long - Bill Long, SECWCD briefly reported on the Arkansas Valley Conduit and thanked the District for their contribution toward the project. He noted that a meeting was held in La Junta, CO on July 16, 2005 with Senator Allard and Senator Salazar. The main concerns of the project addressed are how the communities will pay for their portion of the project and if there is a sufficient water supply for the Conduit. He reported on the studies of the Arkansas Valley Conduit and briefly reviewed the funding of the project. He finished saying that we need to better understand the funding of the project and that a clear picture of the re-payment is needed. Additionally he added that each entity will be visited by the engineering firm for the Conduit project.

Heather Maio - Heather Maio, Pueblo City-County Health Department briefly added that they have been collecting and testing data along the Fountain Creek and that they have found many forms of bacteria in the water ranging from normal levels to high levels. She announced that they want to post several caution signs along the river to warn everybody of the dangers in and around the water. Additionally she discussed the difference in the water quality from the time they began the testing in July up until August 3, 2005. Furthermore, she noted that they have been working with Colorado Springs on water quality.

Wally Stealey - Wally Stealey, Chairman of SECWCD briefly reported that the Conduit bill seems to be in very good shape; the Preferred Storage Option Plan (PSOP) has been moving very slow because they want everyone to be on the same page. He added that water quality must have the state's support and then commented on Referendum C and D.

GM REPORT:
General Manager Winner updated the Board on what Biodiesel would currently cost per gallon with the different types of oil.

Director Mauch added that several members of the Board went on a tour in August 19, 2005 to tour the seed crushing plant in Lamar, CO.

Director Whittaker moved to support the Friends of the Fountain and Referendum C and D. Chairman Singletary added that he believes it may cause a conflict with their negotiations if the District were to support Friends of the Fountain at this time. Director Whittaker withdrew his motion.

Director Mauch moved to support Referendum C and D, seconded by Director Moore. Motion unanimously carried.

Chairman Singletary gave a brief update on the High Plains case and PSOP and added that they wanted to address no more water leaving the Arkansas River Basin.

General Manager Winner reported that the District has been working on the end result of the Fountain.

COMMITTEE REPORTS:
Personnel- Director Moore reported that the Personnel Committee had met at 8:30 A.M. to discuss salaries and that they have no motions to make at the time.

Legal -Director Esquibel noted that they are still working on the organization of a Continuing Legal Education (CLE) program for attorneys on conservation easements and that they are were looking for and have found a co-sponsor for CLE.

LEGAL REPORT:
Attorney Mendenhall announced that a decision has been reached in the High Plains cases and that the District has won. The court specifically applied the anti-speculation doctrine to change cases, which is what the District wanted. The District through Water Attorney Peter Nichols has made a due process argument, and the Pueblo Board of Water Works, through Bill Paddock, had made a maturity argument also. These arguments, were simple so that the Court would have an alternative way to decide in our favor if they did not want to extend the anti-speculation doctrine. While the District achieved the most wanted results, the Court dismissed without prejudice, meaning that if High Plains comes back with a buyer, they may proceed.

He added that in the ISG case, Justice Hobbs took the opportunity to clarify the Santa Fe Trails Ranches case. In that case a water right decreed for industrial use was used for irrigation at a different point of diversion for many years. Santa Fe Trails Ranches wanted to change that use to municipal. The Court said that the irrigation use could not be counted as historic consumption, since it is not the decreed use. ISG claimed that Santa Fe Trails would cause them to lose historic consumptive use if they leased for short periods, but Justice Hobbs said that temporary changes authorized by the State Engineer through a statutory provision, like water banking or a temporary supply plan would not cause them loss of historic consumptive use.

Attorney Mendenhall reported that he arranged a meeting with Peter Nichols, Bill Silberstein of the CCLT and himself on August 31, 2005 to meet with Attorney General John Suthers, the Chief of his Natural Resource department, and the Deputy AG for Legal Policy and Governmental Affairs. He said they were able to give them background briefing on the District and its goals. They were able to discuss some current issues such as conservation easements. He reported that Mr. Suthers was supportive and Attorney Mendenhall believed it would be very helpful and supportive in the future.

Finally, Attorney Mendenhall reported that the District has two conservation easements pending. He reported that they are looking good and believes it would be acceptable to accept the Kennedy and Jordan easements subject to staff and Counsel approval.

Director Moore moved to approve the finalization of the Kennedy and Jordan conservation easements subject to staff and Counsel, seconded by Director Mauch. Motion unanimously carried.

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 Moore to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:56 A.M.