October 12, 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, October 12, 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
Ollie Ridley-Secretary
Leroy Mauch

DIRECTORS EXCUSED:
Loretta Kennedy
Melissa Esquibel
Wayne Whittaker-Treasurer

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 Mauch moved that the Board convene into the Water Activity Enterprise, seconded by Director Ridley. Motion unanimously carried.

At the conclusion of the Water Activity Enterprise meeting Director Ridley moved to reconvene the District Meeting at 10:04 A.M., seconded by Director Moore. 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:
Kevin Salter, Kansas Division of Water Resources; John Merson, John Martin Reservoir State Parks; Ross Manley, Senator Allard's Office-Pueblo; Abdel Berrada, Colorado State University; Bill Yohey, Kiowa County Commissioners Office; Brenda Fillmore, AGUA; Kelly Roesch, High Plains; Allison Cortner, Senator Salazar's Office-Pueblo; Chris Woodka, Pueblo Chieftain; Tina Pearson, Rocky Ford Daily Gazette and Ben Doon, Biodiesel Consultant.

APPROVAL OF MINUTES:

TREASURER'S REPORT:
The financial report for the month of September was included in the Board's Monthly Meeting Packet. September total revenues were $48,938.99 and total expenditures were $27,323.38. Director Moore moved to accept the September Financial Statement, seconded by Director Mauch and carried unanimously.

PUBLIC HEARING-BUDGET REVIEW:
Chairman Singletary opened the public hearing for the 2005 Amended Budget and Financial Coordinator Chavez reported that for the 2005 Amended Budget there was a few expenses that were not anticipated for the 2005 Budget. She reviewed the expenses not anticipated and added that the Purchase of Rights needed to be increased. This was done in the form of a resolution. Chairman Singletary read the context of the resolution for Supplemental Budget and Appropriation for Amending the Budget. He noted that the 2005 appropriation for the Purchase of Rights fund will be increased from $645,760.00 to $1,036,358.00 for the purpose of 52 shares of Colorado Canal/Lake Meredith water shares at $223,000 and 553.85 shares water leasing of Twin Lake Water for $167,598. The total expenditures increased from $1,699,860 to $2,090,458. Director Mauch moved to approve the Supplemental Budget and Appropriation resolution, seconded by Director Moore. Motion unanimously carried. The approved resolution will be attached as permanent record to the minutes.

Financial Coordinator, Chavez gave a brief overview of the 2006 Draft Budget. She reported that the 2006 Draft Revenues are $2,386,883 and Draft Expenditures are $2,341,760 with a reserve of $45,122. Director Ridley moved to accept the 2006 Draft Budget, seconded by Director Mauch and carried unanimously. There being no further business, Chairman Singletary closed the public hearing.

Chairman Singletary introduced Allison Cortner of Senator Salazar's Office in Pueblo.

Several Directors commented on the importance of Biodiesel.

PRESENTATIONS:

Ben Doon- Ben Doon, Biodiesel Consultant gave a PowerPoint presentation on the conditions and costs for a small-scale Biodiesel plant in the Lower Arkansas Valley. The topics presented in his presentation were as follows:

An additional packet was handed out to the Directors relating to the PowerPoint presentation.

After Mr. Doon's presentation a few Directors commented and questions were accepted from the public. A few questions asked were tax incentives of Biodiesel, competition with other Biodiesel plants and the amount of water to grow the crops.

GM REPORT:
General Manager Winner updated the Board on the Larkspur Ditch and announced that the installation of the pipe will be finished soon. Additionally, he passed out an agreement between LAVWCD and Larkspur Inc. The agreement is that a pipe will be installed in the Larkspur Ditch at the top of Marshall Pass which will cost $36,000 in which LAVWCD will pay $24,000 and Larkspur Inc. will pay the remaining $12,000. If LAVWCD exercises its option to purchase the property within the next five years and the sale is rejected the Larkspur shareholders shall refund LAVWCD the $24,000.

General Manager Winner noted that an engineer will be needed to investigate the value of the Larkspur Ditch. He added that he has found an engineer, Doug Seely who will charge approximately $7,300 for the investigation of value of the Larkspur Ditch.

Director Mauch moved to have General Manager Winner hire Mr. Seely perform the investigation for value of the Larkspur Ditch and to approve the agreement stated between LAVWCD and Larkspur Inc., seconded by Director Moore. Motion unanimously carried.

General Manager Winner briefly reported on a bill recently introduced into congress on conservation easements. He noted that he would continue to update the Board.

Chairman Singletary gave a brief update on PSOP saying that on the 25th of October a final document will go to the nine entities to discuss the legislation on water quality, economic liability and no more water leaving the valley.

LEGAL REPORT:
Attorney Mendenhall reported on the High Plains case. He noted that the District has joined in a Petition for a rehearing seeking to omit or change some language that could cause a problem. High Plains has filed a Petition for rehearing asking the Court to remand to the Water Court to allow a determination of historical consumptive use for Water Banking and similar uses. He added that the Court has denied the Petition for rehearing.

Attorney Mendenhall reported that the Norwood easement has been completed along with the sale of the tax credits.

He announced that the appraisal and Baseline Inventory look good for the recently approved proposed conservation easement from Cuerno Verde, LLC, but are waiting on an approval from the Bessemer, a final plat for a separation from Pueblo County and for alternated collateral arrangements to be made so the bank does not have to subordinate.

Attorney Mendenhall noted that LAVWCD has received a proposal for a conservation easement from Frank Huett in Canon City. He added that the property is not within the District but is within the District's water shed. The preliminary review of the draft appraisal and baseline report appear to be good and he recommended the Board approve the easement condition upon approval of staff and counsel.

Director Moore moved to accept the conservation easement condition upon approval of staff and counsel, seconded by Director Mauch and carried unanimously.

Furthermore, Attorney Mendenhall reported that a meeting will be held for the Fort Lyon Canal on December 12, 2005 and that the Board, staff and counsel have been invited.

PUBLIC COMMENT:

John Merson, John Martin Reservoir State Parks reported that they have had a good year with a good amount of water in the reservoir for recreational use.

David Mau, USGS briefly reported that Pat Edelman will be available in the future to give a presentation on the Fountain Creek watershed on water quality to the District. He added that USGS is redesigning the ground water network in the Lower Arkansas Valley and that they will be sending a letter out to irrigation owners seeking permission to get their wells in the network. This letter will be going out soon.

ADJOURNED:
Chairman Singletary asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Moore, seconded by Director Mauch to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:26 A.M.