November 12, 2003 Minutes-Board Meeting

A meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, November 12, 2003 at 10:00 A.M., at 801 Swink Avenue, Rocky Ford, Colorado.

After roll call, President Mauch announced a quorum was present.

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

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

INTRODUCTION OF VISITORS:
President Mauch 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; Michael Gates, Rocky Ford Daily Gazette; Dr. Mike Bartolo, CSU Extension; Phil Reynolds, SECWCD; Kelly Roesch, High Plains A&M; Carl McClure, Farmer; Carl Nesselhuf, Farmer; Clay Fitzsimmons, CWPDA; Rachel Merrill, CWPDA; Kevin Salter, DWR-KDA; Dave Miller, NECO President; John Rose, Otero County Waterworks; Miles Bond, Independent Insurance Agent; Bill McCurdy, Farmer; Dean Rusher, Farmer.

APPROVAL OF MINUTES:
President Mauch asked if the Board members had reviewed the minutes for the October 8, 2003 Board Meeting, October 1, 2003 Finance Committee and October 1, 2003 Acquisition Committee Meeting. Director Mauch asked whether there were any corrections or additions to the minutes. Hearing none, Director Wayne Whittaker moved for approval of the October 8 and October 1, 2003 minutes, seconded by Director Melissa Esquibel. Motion unanimously carried.

TREASURER'S REPORT:

• Treasurer Pete Moore reported that the financial report for the month of October was included in the Board's Monthly Meeting Packet. He reported October total revenues at $36,887.19 with expenditures totaling $304,171.75. Director Moore moved to accept the Financial Statement, seconded by Loretta Kennedy. Motion unanimously carried.
• Director Whittaker recommended the outstanding checklist included in the financial statement be omitted in the future, since the list is stated on the reconciliation page.
• Proposed change to purchasing Policy was Page 4, #7, service contracts. Which currently states Service contracts should be reviewed at least every three years, to proposed change, "Service contracts should be reviewed annually and the General Manager may make recommendations to the Board regarding whether to reaffirm or request new bids for supplying the service. Treasurer Pete Moore moved to approve the Purchasing Policy as stated, seconded by Loretta Kennedy. Motion unanimously carried.

PRESIDENT'S REPORT:

• The Board must designate and post the time and place for all Board meetings 32-1-903(1), C.R.S. The Board must pass a resolution at the first regular meeting and if designated posting place has changed, stating the reason for change in time or place 32-1-903(1), C.R.S. Posting will need to be in three different areas, which are the County Clerks Office in La Junta, 801 Swink Ave in Rocky Ford, CO, and in the City building in Rocky Ford. A motion is presented to accept 801 Swink Avenue, Rocky Ford, Colorado, 81067 as a posting site with the reason for the change being, the relocation of the District's office. Director Loretta Kennedy moved, seconded by Ollie Ridley, and to adopted the new posting location of future Board meetings. Motion unanimously carried.
• President Mauch presented a presentation to South Platte in Longmont, Colorado covering the District's formation in the Lower Arkansas Valley. There are 51 Conservancy Districts in the State of Colorado.

GENERAL MANAGER'S REPORT:

Julie Scaplo gave an overview of the following items:

• Web Page: General Manager gave a brief presentation regarding the new web page designed by Dawn DiPrince with Pinon Publishing. The web site's address is www.lavwcd.org, the site will have information, which will review the Mission of the District, contact information, minutes, conservation easements policy, news releases and canals. The canals have different maps and pictures, which were donated by Rodney Baird. If you have any additions or correction, please contact the office.
• Request for professional services: The District is in need of an Engineers and Engineering firms with both surface and groundwater experience and who is familiar with the Lower Arkansas River Basin. This RFP will be sent to the Pueblo Chieftain, Denver Post or Rocky Mountain News, and Colorado Springs Gazette. President Mauch authorizes General Manager to publish RFP.
• Bureau of Reclamation: Comment letters sent to the Bureau of Reclamation regarding the Colorado Springs Utilities Southern Delivery System National Environmental Policy Act's (NEPA) and the City of Aurora, Colorado excess capacity in the Fryingpan-Arkansas Project. Director Loretta Kennedy recommended the letter be signed by all Board Members. Director Loretta Kennedy asked to be excused regarding the Colorado Springs Utilities Southern Delivery System's letter due to conflict of interest.
• Pacific Life 80: Mr. Miles Bond is here to discuss the new proposal for Health, Life, Dental, and Vision plan, which is a PPO. The General Manager recommends the Pacific Life 80 with a deductible of $500.00 in Network or $1,000 out of Network. The total premium per month is $ 1,874.39, which includes life, dental, vision, and chiropractic care. Director Loretta Kennedy moved to accept the General Manager's recommendation, seconded by Melissa Esquibel. Motion unanimously carried.

PERSONNEL COMMITTEE REPORT:

Director Wayne Whittaker reviewed for the Board the following items:

• Personnel Policy: The General Manager has made some changes to the Personnel Policy. The items changed were Anniversary Date, Non-Exempt monetarily compensation, and the addition of accumulation of up to five vacation days can be carried over to the next year. Deleted item are the monetarily compensation has been deleted and only compensatory time off is offered to the Non-Exempt employee, also any Comp Time older than 60 days shall be paid on the next paycheck has been deleted. Director Kennedy questioned, if the monetarily Comp Time for Non-Exempt employees can, by law, be deleted from the Personnel Policy and not offered as a choice to the Non-Exempt employee. Fair Labor Standards Act may require the District to offer the Non-Exempt employee monetarily compensation or compensatory time off, either or but cannot require only compensatory time off only. Mr. Bart Mendenhall will clarify and get back to the Board. Wayne Whittaker recommends the policy changes be approved, except for the Non-Exempt monetarily compensation issue.
• Administrative Assistant Description: Changes were made in salary range, and wording regarding the reporting to General Manager and the addition stating serves as financial and budget officer when appointed by the Board. This position is for a Non-Exempt Status. Director Pete Moore would like a new title for Kim Chavez, since the job includes Financial Officer, Budget Officer and Administrative Assistant. Director Loretta Kennedy recommended the title of Administrative Coordinator/Budget Officer. Director Wayne Whittaker moved to accept the revised Personnel and Employment Policy, the Administrative Assistant job description and new job Title, seconded by Loretta Kennedy. Motion unanimously carried.

LEGAL COMMITTEE REPORT:

Director Melissa Esquibel summarized the following items:

• Melissa Esquibel reviewed the workshop she attended on November 7, 2003. The workshop was titled, "Revisiting Colorado Water Law Issues or Hard Knock of Water Law". The workshop offered an extraordinary opportunity to learn from individuals from past cases of Colorado's Water Law changes. The workshop was held in Denver, Colorado at the CWC Conference Room.
• Pursuant to our initial action as a Board to review Legal Services at approximately 6 months to 1 year. A Committee meeting will need to be arranged according to the By-laws.

AGENCY LIAISON: None

ACQUSITION COMMITTEE:

John Singletary reviewed the following:

• John Singletary reported that the Acquisition Committee met on November 5, 2003, at 4:00 P.M., which the full Board attended, to review possible water and land deals.
• Director Singletary attended the Tamarisk Symposium on October 22-24, 2003 in Grand Junction, Colorado. Symposium covered the Tamarisk eradication and the possibility of the Tamarisk bill being passed.
• Director Singletary discussed recommendation to reaffirm the Lower Arkansas Valley Water Conservancy District's position that it will consider acceptance of Conservation Easement Donations with or without attached water rights within the District boundaries to promote the preservation of open space including farm and ranch land. The LAVWCD will accept only those donations, which clearly meet such conservation purposes and can be protected in perpetuity, by Loretta Kennedy. Seconded by Director Pete Moore, motion unanimously carried.
• Option to lease Larkspur Ditch (Catlin Canal) for a period of 1-year annual renewable lease. At a rate of $5,000 per year, 10-year option to purchase at 1 million, (while lease is current), 30 day first right of refusal to purchase if another offer is made. The lessor will furnish up to 300 AF of space in Pueblo Reservoir and the lessor will furnish recorder and chart for the ditch. Director Wayne Whittaker who is the Secretary of Catlin Canal, abstained from the vote and let it be known, he owns two shares of Larkspur Ditch. Motion to recommend was heard at the Water/Land Acquisition Meeting on November 5, 2003, from Leroy Mauch to enter into the lease, seconded by Melissa Esquibel. Motion unanimously carried.
• Twin Lake draft letter addressing interest in giving an equal opportunity to all individual shareholders that reside within the District boundaries. How many shares the district will be able to purchase or lease will depend on the number of interested parties, and the shares made available to the District. Melissa Esquibel moved to accept the letter with the suggestion heard, seconded by Ollie Ridley. Motion unanimously carried. This motion has been stricken and will hold until meeting with shareholders can be set up.
• The Land Trust has received the first Conservation Easement on November 11, 2003 from the Broyles Family.

LEGAL REPORT:

Attorney Bart Mendenhall reports:

• The time and period for new applicant has passed and there is one applicant out of Pueblo in addition to the existing Board members. Mr. Mendenhall is working with the clerk in Judge Maes' office.
• Mr. Mendenhall has received an application for consolidating the case filed by the independent Ft. Lyon applicants. Since the other Fort Lyon cases have been consolidated, the same scenario is expected with this filing.
• The motion filed by High Plain A & M / Fort Lyon case has been consolidated for the 2002 and 2003 cases. Southeastern Colorado Water Conservancy District has asked for limited written discovery having to do with a specific part of their application. Judge Maes ruled on this, he denied the motion and set a date in January to keep things moving along.
• The Conservation Easements notebook arrived from Peter Nichols and has been handed over to Melissa Esquibel has and will be used when receiving future Easements. The proper procedure to follow easements would be examination of the proposed easement to insure all paperwork was in order, review by General Manager, Board Members and Attorney. Along with the acceptance and implementation of the easement by LAVWCD.
• Mr. Mendenhall received a call from John Lefferdink from the Fort Lyon Canal, Mr. Lefferdink acts as an adviser and advocate, which High Plains A&M have questioned. Mr. Lefferdink would like Mr. Mendenhall to act as a special advocate for Fort Lyon. Mr. Mendenhall would consider the request, however, he would need Board approval before he can continue. Director Whittaker moves to authorization to Mr. Mendenhall to offer his service as an advocate if needed in the Fort Lyon/High Plains A&M hearing held in Las Animas, Colorado during November 12-14, 2003. Seconded by Loretta Kennedy, motion unanimously carried.

NEW BUSINESS:

• Discussed the possible partnership with United States Geologic Survey to consider water quality in the Lower Arkansas. The District would like Pat Edleman to come down for a presentation. Edleman is now doing water quality testing in conjunction with the preferred storage options plan n Pueblo Reservoir.
• Union Park Project: Presented by Dave Miller of Natural Energy Resources Corporation, gave a presentation on the Union Park Project. The $2.5 billion project, which Mr. Miller has been actively pursuing since 1986, calls for a new reservoir and an approximately 560-foot high dam to be built 10,000 feet above sea level on Lottis Creek. This location would allow services to extend to five major river basins.
• LAVWCD Board Members met with CWPDA on November 12, 2003 at 8:30 AM regarding future partnership.

PUBLIC FORUM:

• Mr. Bill McCurdy voiced his opinion regarding the Twin Lake Lease. Mr. McCurdy perceives the LAVWCD made a verbal agreement to lease his Twin Lake Shares and now with the approved letter discussed earlier. He wonders where that leaves him because he has rejected other proposals. After some discussion, the Board gave direction to General Manager, Julie Scaplo and Bart Mendenhall to arrange a special meeting to find a solution. A hold is established regarding the Twin Lake Letter previously discussed until after the special meeting.
• Mr. Carl Nesselhuf has Catlin Water with approximately 110-130 shares for Augmentation; he would like to work together on a possible augmentation lease plan. The Board would like Mr. Nesselhuf to submit a proposal for the next Acquisition meeting.
• Notice of sale of real estate for approximately 140 acres in Section 24 and 14 in Crowley County, which could be ideal for a conservation easement. This property has 140 acres of river bottomland and two shares of the capital stock of the Catlin Canal Company, two shares of the stock of Larkspur, Inc. and 2,327 shares of the stock of the Pisgah Reservoir and Ditch Company. The property is near Manzanola, Colorado. After a short discussion, it is decided to discuss this matter at the next Acquisition meeting.

ADJOURNED:

President Mauch asked if there were any other questions or other matters to come before the Board. Hearing none, the meeting was adjourned at 12:20 P.M