November 10, 2004 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, November 10, 2004 following the 10:00AM Enterprise Activity meeting, at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Mauch announced a quorum was present.

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

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Temporary Hourly Aide

INTRODUCTION OF VISITORS:
Chairman Mauch welcomed each of the visitors to the meeting, asked them to introduce themselves and identified the organization they represented.

VISITORS PRESENT:
Anthony Mestas, Pueblo Chieftain; Rodney Baird, La Junta Tribune Democrat; Dale Baker, CWPDA; Steve Malott, Catlin Canal; Doug Melcher, High Plains Ground Water Management; Kelly Roesch, High Plains A & M; Brenda Fillmore, AGUA; Ross Manley, Senator Allard and Keith Tucker, Tamarisk Removal.

CHAIRMAN'S REPORT:
Director Kennedy motioned to accept General Manager, Winner as Assistant Secretary to the Board of Directors, seconded by Director Whittaker. Motion unanimously carried.

Director Whittaker motioned to accept the Memorandum of Agreement for General Manager, Winner, seconded by Director Ridley. Motion unanimously carried.

APPROVAL OF MINUTES:

• October 13, 2004 Monthly Board Meeting- Chairman Mauch asked if the Board members had reviewed the minutes for the October 13, 2004 Board Meeting. Chairman Mauch asked whether there were any corrections or additions to the minutes. Director Esquibel moved to accept the October 13, 2004 Board Meeting Minutes, seconded by Director Whittaker. Motion unanimously carried.
• October 11, 2004 Personnel Committee Meeting- Chairman Mauch asked if the Board members had reviewed the minutes for the October 11, 2004 Personnel Committee Meeting. Chairman Mauch asked whether there were any corrections or additions to the minutes. Director Esquibel moved to accept the October 11, 2004 Personnel Committee Meeting Minutes, seconded by Director Whittaker. Motion unanimously carried.

TREASURER'S REPORT:
Chairman Mauch reported that the financial report for the month of October was included in the Board's Monthly Meeting Packet. He reported that October total revenues at $39,711.96 with expenditures totaling $187,693.02. The Board examined the Financial Statement, whereupon a motion was made by Director Moore to accept the October Financial Statement, seconded by Director Whittaker and carried unanimously.

Director Esquibel moved to authorize Financial Coordinator, Chavez to obtain signatures on a new credit card application and remove former General Manager, Julie Scaplo from the old account in the form of a resolution and add General Manager, Winner to a new account, seconded by Director Whittaker. Motion unanimously carried.

Financial Coordinator, Chavez will present letters from local banks for a new account in the December Board packet.

COMMITTEE REPORTS:

• Water Acquisition- Vice Chairman Singletary noted the opportunity to buy 1 share of Twin Lakes water for $30,000 per share. He also announced that Colorado Canal/Lake Meredith has 3 shares for sale at $10,000 per share. He suggests General Manager, Winner write a letter to Twin Lakes, Shannon Torgler concerning the amount per share.
  
  Director Singletary suggests attending the December Annual Meeting with a proposal storage contract for the John Martin Storage Account with the attendance of General Manager, Winner.
  Director Singletary asks General Manager, Winner to contact him in the near future to set up an appointment with Christina Proctor, CSU-Pueblo with a draft scope of services drafted by the Board for review and discussion.
  
  General Manager, Winner reported that run off water from the Western slope of Larkspur Ditch has been transferred to Lake Pueblo in the amount of 99.42 with the amount of 30 a/f over since Rocky Mountain Asphalt has not taken their water. The 30 a/f will be transferred down Lake Minnequa Ditch. He noted that Larkspur Ditch is no longer producing water.
  
  Director Whittaker reported that the District owes Gilbert Werdel the difference for water received at the Larkspur Ditch of $10.00 per share. He noted that the District may need to pay the Bureau of Reclamation for the excess over 100 a/f for the Fish Recovery Program on the Western slope.
  
  Director Whittaker moved to appoint General Manager, Winner to calculate the difference to be paid to Gilbert Werdel for Larkspur Ditch, seconded by Director Esquibel. Motion unanimously carried.
  Director Whittaker announced the showing of the District video the prior day at the Lion's Club in La Junta. The video showing went well.
  
  Director Singletary announced the future showing of the District video in Lamar on the 15th of November at 7:00 P.M. He also suggests future showings of the video in the surrounding counties. He reported there will be no Water Acquisition Meeting for the month of November.
  
  General Manager, Winner announced his meeting with Mr. Wertz on Monday,
  November 8, 2004 and would like to further discuss the meeting in Executive Session.
  Vice Chairman Singletary reported that the District will receive payment from the Bessemer Farm lease.
• Personnel- Director Whittaker reported that there were 21 applicants for the General Manager position and that the District has chosen Jay Winner as the District's General Manager. He welcomed General Manager, Winner to the District.
  
  Director Whittaker moved to increase Temporary Hourly Aide, Morlan an increase in pay of .50 per hour effective January 1, 2005, seconded by Director Esquibel. Motion unanimously carried.
  
  Director Whittaker suggests a bonus for Financial Coordinator, Chavez to be discussed in Executive Session.
• Legal- Director Esquibel reported that Attorney, Mendenhall will discuss updates on High Plains litigations in his report.
• Liaison- Director Kennedy reports that Action 22 will be meeting the up-coming Friday, November 12, 2004 on the subject of 1041 Powers. She asks the Board's approval in the amount of $20.00 for any of the Board members who wish to attend the meeting.
  
  Director Kennedy announced that she has received an application from Drew Boland-Development Coordinator for the State who has a grant and loan program for farmers, ranchers and rural small communities to purchase renewable energy and reduce energy costs. She also noted that Pueblo County will probably ask for a letter of support concerning the Boulder 1041 Regulation.
  
  Director Kennedy suggests inviting other surrounding counties such as Huerfano and Las Animas County to join the Lower Arkansas Valley Water Conservancy District and perhaps attend one of the meetings or a retreat. This will also include Fremont County. She asks that General Manager, Winner set up a retreat for such a meeting.
  
  Director Kennedy motioned to have General Manager, Winner join Action 22 for the District to be a member, seconded by Director Esquibel. Director Singletary voting nay. Motion passed with a vote of 6-1.

LEGAL REPORT:

• Exclusion Hearing Process- Chairman Mauch called a special hearing to order for the exclusion of land from the Lower Arkansas Valley Water Conservancy District for Colorado revised statues 37-45-137. General Manager, Winner called role call for Directors; Director Esquibel, present; Director Kennedy, present; Director Whittaker, present; Director Moore, present; Director Ridley, present; Director Singletary, present; Director Mauch, present. Attorney Mendenhall of Legal Council with Kim Chavez and Jay Winner present for the proceedings of exclusion for Mr. Douglas Melcher noted that the petitions filed with the Lower Arkansas Valley Water Conservancy District were published in the Lamar Daily News on the following dates: October 15, 2004, October 22, 2004 and October 29, 2004. Attorney, Mendenhall asks if anyone other than Mr. Douglas Melcher was in opposition of the petitions of Northern and Southern High Plains Ground Water Management Association. None were heard. Mr. Mendenhall reviewed the published petitions and noted that they met the standards of statue within the District.
  

Director Esquibel moved to grant exclusion for all petitions that met statue requirements as defined by Council, Bart Mendenhall, seconded by Director Moore. Director Whittaker and Director Singletary voting nay. Motion passed with a vote of 5-2.

Mr. Melcher briefly argued his point concerning the non-published petitions by the Lower Arkansas Valley Water Conservancy District.

Attorney, Mendenhall; Director Moore and Director Kennedy responded on the Lower Arkansas Valley Water Conservancy District's behalf.

Director Esquibel motioned to close the Exclusion hearing, seconded by Director Moore. Motion unanimously carried.

• High Plains A&M- High Plains A & M remains at a standstill while applicants have moved to amend their appeal to the Court's for costs to Southeastern. Attorney, Mendenhall stated that he was informed that High Plains will not be paying the option fee to the Option Group.
• McBee Conservation Easements- Director Esquibel moved to authorize Chairman Mauch to execute the deeds to transfer the McBee easements to the Greenland Reserve, seconded by Director Whittaker. Motion unanimously carried.
• Arkansas Ground Water Users Association- (AGUA) Status of the AGUA application remains static; waiting on Directors.
• Conservation Easements- Peter Nichols and Bart Mendenhall have continued work on the proposal for the conservation easement program. Peter Nichols has convinced them to perform the appraisal of the Fort Lyon. Further discussion will be held in Executive Session.
• 1041 Regulations- A District Court case out of Boulder has struck down Boulder County's 1041 regulations on the grounds that the law requires review by the State Land Use Commission. It is said that the State Land Use Commission has not been funded since 1983, or functioned since the 1990's and further did not review these regulations which the judge found that without review as invalid. The decision is being appealed and will probably affect all 1041 regulations adopted from the time forward. This matter could possibly be resolved by legislation.
  
  
  Director Kennedy moves to write a letter of support to area Representatives encouraging the 1041 Regulations be resolved, seconded by Director Esquibel. Motion unanimously carried.
• DeGrado- Lease on property purchased by DeGrado will expire in February. The Board might consider renewal before then.
  
  
• Ullum Extension- Ken Ullum has provided Bart with the description of the property he wishes to be removed from the option. Bart will prepare another ninety day extension with General Manager, Winner's signature.
  
  
• Conservation Easements Allowing Temporary Leases- Bart and Peter have discussed the possibility of conservation easements allowing temporary leases. Director Esquibel has asked that they address the information in the form of a memo.

NEW BUSINESS:

• Keith Tucker, Tamarisk Removal gave a brief speech on the removal of tamarisk. He is paid on an hourly basis or per acre.
• Director Esquibel suggested to the Board that LAVWCD provide a resource center and use the available wall space for information concerning conservation and contact information for different services available.
• Director Whittaker presented a hand-out of questions he wrote up concerning PSOP and non-project water and project space. He suggests writing a letter to the Congressman explaining our feeling of taking our water and what effect it will have on the lower valley and the transfer of water from the Arkansas River to the Platte River Basin.
• Director Singletary suggests inviting John and Ken Salazar to the District's next Board meeting to join with LAVWCD.
• Director Whittaker moved to write a letter to legislature saying that the District is not in favor of allowing the Bureau to transfer water out of the valley's headwaters, seconded by Director Kennedy. Motion unanimously carried.
• Director Esquibel suggested General Manager, Winner give a presentation to the Pueblo City Council and offer to show the District video.

MOTION TO ENTER INTO EXECUTIVE SESSION:
Director Esquibel moved that the Board convene into Executive Session, seconded by Director Whittaker. Motion unanimously carried. Chairman Mauch recessed the District meeting at 11:30 AM with a five minute recess and to convene the Executive Session at 11:45 A.M.

• 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 be subject to negotiations; developing strategy for negotiations; and instructing negotiators."
• 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, all of the employees must request an open meeting."

To discuss the following matters:

• Legal advice
• Negotiation matters
• Personnel matters

The presence of the following persons was requested at this Executive Session:

• Board Members Present
• District Staff
• Counsel for the District

Chairman Mauch adjourned the Executive Session at 1:30 P.M, and reconvened the District Meeting at 1:31 P.M.

REPORT FROM EXECUTIVE SESSION:

Mr. Bart Mendenhall reported the Executive Session covered the following issues:

• Matters concerning legal advice
• Negotiation matters
• Personnel matters

MOTIONS OUT OF EXECUTIVE SESSION:
Chairman Mauch said there were recommendations from Executive Session.

• Director Kennedy moved to direct General Manager, Winner and Attorney, Mendenhall to negotiate a contract to buy out the McBee conservation easements, seconded by Director Whittaker. Motion unanimously carried.
• Director Kennedy moved to accept the Wright Engineering appraisal offer, but to keep the dollar amount firm and consider the end user as part of their calculation, seconded by Director Moore. Motion unanimously carried.
• Director Whittaker moved to invest up to $100,000 in CD accounts spread out to the local banks, seconded by Director Kennedy. Director Ridley abstained. Motion passed with a vote of 6-0.

ADJOURNED:
Chairman Mauch asked if there were any other matters to come before the Board. Hearing none, motion was heard from Director Whittaker, seconded by Director Esquibel to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 1:47 P.M.