November 21, 2007 Minutes-Board Meeting
The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, November 21, 2007 at 10:08 AM, at 801 Swink Avenue, Rocky Ford, CO 81067.
Chairman Singletary announced a quorum was present with Director Mauch being excused.
DIRECTORS PRESENT
John Singletary-Chairman
Pete Moore-Vice Chairman
Melissa Esquibel -Secretary
Wayne Whittaker - Treasurer
Loretta Kennedy
Lynden Gill
DISTRICT STAFF PRESENT:
Jay Winner - General Manager
Bill Hancock – Conservation Programr
Carla Aragon-Quezada – Administrative Assistantr
Bart Mendenhall - Attorney r
Peter Nichols - Attorney
DIRECTOR EXCUSED:
Leroy Mauch
DISTRICT STAFF EXCUSED:
Kim Chavez - Financial Officer
MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Whittaker moved that the Board convene into the Water Activity Enterprise, seconded by Director Kennedy. Motion unanimously carried.
At the conclusion of the Water Activity Enterprise meeting Director Whittaker moved to reconvene the District Meeting at 10:10 A.M., seconded by Director Kennedy. 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:
Del Nimmo, Colorado State University (CSU) – Pueblo/Biology; G W Werdel, Larkspur; Frank Milenski, Catlin Canal; Jim Valliant, CSU; Gerry Knapp, Aurora Water; Karen Dietrich, La Junta Tribune Democrat; Virgil Cochran, SE Land and Environment; Terry Howland, Amity & District 67; Mary Miller, NRCS; Glenn Wilson, Amity & Dist.67; Randal Ristau, Colo Dept Public Health & Environment Water Quality; Steven Anselmo, Anselmo Engineering, Inc; Abdel Berrada, CSU; Lane Simmons, CSU; Jared Gardner, Gardner Farms; Stanley Fedde, Farmer; Carl Nesselhuf, Farmer; Gabe Geringer, Farmer; Alan Ward, Pueblo Board of Water Works; Chris Woodka, Pueblo Chieftain; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Fred Heckman, Fort Lyon Farmer; Kelly Roesch, Pure Cycle; Pat Edelmann, USGS; Rick Kienitz, Aurora Water; Vernon John Proctor, Farmer.
APPROVAL OF MINUTES:
v October 17, 2007 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the October 17, 2007 Board meeting and whether there were any corrections or additions. Director Esquibel moved to approve the minutes for October 17, 2007, seconded by Director Moore. Motion unanimously carried.
TREASURER’S REPORT:
Chairman Singletary reported that the financial report for the month of October was included in the Board’s Monthly Meeting Packet. Director Whittaker reported October total revenues $41,763.54 and total expenditures $486,622.24 with total net <444,858.70>. Director Whittaker moved to accept the September Financial Statement, seconded by Director Moore. Motion unanimously carried.
GM REPORT:
General Manager Winner directed Board Members to Tab Two (2), Finalized Purchased, It’s not an appraisal. In the Rocky Mountain News and Denver Post there have been 20-30 subpoenas in the past two days to appraisers and land trusts around the state seeking more information on easements they worked on, or for which they obtained transferable tax credits. There have been fraud findings, not just in the Arkansas Valley, but the state of Colorado.
General Manager Winner directed Board Members to Tab Six (6), Support the Conduit. He stated, sent a letter of LAVWCD to support the efforts of the Southeastern Colorado Water Conservancy District (SECWCD) in obtaining funds through the State and Tribal Assistance Grant in supporting $600,000 provision in the Senate Appropriations Bill and allows previously expended funds to be counted as part of the local cost share.
Director Gill, stated “One year ago we made a motion to help the entities out there. I feel we should go ahead and help again, directly to them or to the District.”
General Manager Winner stated last year the resolution to the entities, to the SE District. Should we write 1 check or 37 checks? My suggestion is to write the check to SE District
Director Esquibel stated we had the language last time I think the money we send should be spent on what it’s intended for.
Motion made by Director Kennedy, seconded by Director Gill the District will give one check of $50,000 to SECWCD to use as community share of the conduit cost. Motion unanimously carried.
PRESENTATIONS:
General Manager Winner introduced Steve Witte, Water Division 2 Engineer.
Engineer Witte said he is speaking to conservancy districts this month to explain draft rules on irrigation improvements (drip systems, sprinklers and canal lining). We want to have Public meetings to be held early next year if a new sate engineer, yet to be chosen, approves the plan.
Witte stated, I’m concerned with the increased efficiency of irrigation structures that allow more acreage to be irrigated could violate the 1949 Arkansas River Compact with Kansas. The rules would apply only to surface irrigation and don’t include nonstructural efficiencies like better maintenance or cropping patterns.
Witte stated, being more efficient on irrigation you can save on ones labor costs and improve water quality, but the state’s concern is that it could also diminish return flows that downstream users rely on.
Witte expressed, “My job is making sure other water users downstream are not affected by benefits, we need to protect water users downstream.”
Chairman Singletary, stated “The burden is pretty much going to be on the irrigator when he wants to change his operation.” “I feel the state has to make more of an effort to help farmers.”
Witte stated applications for approval are due Jan. 1 of the year following the year in which these rules become effective, or 90 calendar days after the rules become effective, whichever is latest. Applications must include a complete engineering report by a licensed professional engineer and a complete application must be acted on within 90 calendar days.
Peter Nichols, attorney, felt that 90 days for an engineer’s report is difficult. I have been told recently that six (6) months or more is the best that can be done.
Director Whittaker stated “Not many of the ditch companies have the money to go in and line their ditches or do other things. If they can not, will they be in violations? A lot of the locals have put in pipelines, which also takes care of the weed issues. What if they can’t afford the engineers: What if they decide to go back to the ditches is the State going to take care of the weed issue?
Witte acknowledged that there should be more discussion on these matters.
Chairman Singletary stated, “There has to be more State involvement in helping farmers with this. We need further discussion but there has to be better use of our surface water.”
Motion was by Director Whittaker, seconded by Director Moore to support the state line deficit. Motion unanimously carried.
General Manager Winner introduced Stan Fedde, President of the Highline Canal and a local farmer.
Mr. Fedde state, “I’m here concerned that The Lower Arkansas Valley Water Conservancy District brought a highline farm. “What in the world does the Lower Ark intend to do with a farm?” Which we have a young farmer by the name of Gabe Geringer who wants to farm it.” Who was working on the finances? We need young farmers. We don’t need old guys like me!
Fedde mentioned the farmer, who attended the meeting, was working on financing it made an offer on the farm of $165,000.
Fedde said, “Then the big gorilla comes in and offers $180,000, the Highline board is concerned.” We just want to know why you want to buy farms.
Chairman Singletary stated, “We appreciate you coming and this is a good discussion. When the District was voted in 2002, one of our mission’s was to make available a pool of money. When the people needed to sell, they would have a place to sell. I could tell you, we have never tried to compete for example: The last six (6) months in Bessemer there was water for sale that we were contacted on Bessemer Ditch. We got a phone call and that person said he had been negotiating. So we backed off. The Lower Ark has a farm in Bessemer and we kept the young farmer on the property to farm it. “Our mission is to protect and perpetuate the agriculture and rural integrity in the Lower Valley more than any entity that’s been here in existence. For us to take away a younger farmer is not what our intention is.”
General Manager Winner stated, With Bessemer we got the phone call and we backed off. This is the first we heard on this. With the Board’s permission we will meet with the farmer to find a way to make a sale or work something out. If he would like to set up an appointment we would be happy to help him out.
Chairman Singletary stated, “We want to encourage every young farmer to be successful.”
Chairman Singletary said the district has turned down several purchases because asking prices were too high, and does not want to purchase farms above market value.
Director Whittaker stated, “We want to help the High Line canal as much as we can. In fact, years ago you were leasing, we as the District stayed neutral. We try to protect all the ditch companies in this valley. We try to do the best we can, if we make a mistake, we try to correct it.”
Director Moore stated, “We want to keep the water in the Valley
Peter Nichols, attorney said one possibility would be to put a conservation easement, which restricts future uses such as selling off the water and reduces market value on the farm. Then sell it to the farmer.
PRESIDENT’S REPORT:
Chairman Singletary complimented the district board on a good job.
Jay and I did a Super Ditch presentation on November 15, 2007 at Colorado Cattle Association in Colorado Springs. We got alot of attention on this subject.
I was asked by Lee Hancock a member of the Rocky Ford Lions Club to do a presentation on the Super Ditch.
Arkansas Valley Conduit is taking some steps forward.
Peter Nichols, attorney
November 14th, 2007 we had a Super Ditch meeting and went over some scenarios that George Omaek of Honey Creek Resources put together. Moving forward, next meeting will be December 13th, 2007 here at the District office. We sent each shareholder information on Super Ditch and information on a Water Law workshop which will take place on November 27, 2007.
We have no opposition to file this month.
Bureau of Reclamation-Aurora, counsel filed a complaint in U.S. District Court against Secretary of Interior Kempthorne, officials of the Bureau of Reclamation, and the Bureau of Reclamation on October 24, 2007. They have 60 days to answer.
Alleging:
The defendants lacked authority to enter into the excess capacity exchange and storage contract with Aurora;
The defendants violated the National Environmental Policy Act; and
The defendants did not comply with Environmental Justice policies of the United States and the Department of Interior.
The City of Aurora has retained outside counsel to represent them in this case. Through such counsel, the City has requested the District’s consent to intervene in the lawsuit, 07-cv-02244. Counsel recommends that the Board consent to the city’s intervention, which the City has a right to do under Federal Rules of Civil Procedure (Rule24).
Motion was by Director Whittaker, seconded by Director Gill to give Peter Nichols, attorney permission to intervene with BOR case. Motion was Five to One with Chairman Singletary opposing.
LEGAL REPORT:
Bart Mendenhall, Attorney stated on November 14, the Super Ditch Steering Committee met. They approved an informational letter to be sent to all ditch company shareholders, which has been done. The letter gave a history of the Steering Committee, and the progress made. It also outlined what needed to be done. The mailing also included an outline of the Super Ditch, and an invitation to our seminar. In addition, and importantly, the Committee instructed us to proceed with forming the Company itself. This is a major step forward, and was a needed step in the process.
We have organized a seminar for November 27th, 2007, aimed for the farmers. The object of the seminar is to first educate the farmers on the process of changing the use of water and then to move it. These will include the engineering steps, the legal steps, and the needed infrastructure. We have discovered that the average farmer understands water law quite well as it applies to his immediate needs, but is not well informed about the process of moving and changing water. Secondly, we will be giving an update on the progress of the Super Ditch, which will be the first time we have attempted to communicate with all of the farmers, except for the mailing which just went out.
On October 31, 2007 LAVWCD closed the purchase of the Highline property located in Pueblo County, which the Board approved at the last meeting.
The District has received an offer to purchase eleven (11) shares of The Consolidated Extension Canal Company from Bert Stephens and Roberts Hausi for $4500 per share. The Board needs to approve or disapprove this purchase. Motion was by Director Gill to purchase eleven (11) shares of The Consolidated Extension Canal Company from Bert Stephens and Robert Hausi for $4500 per share, seconded by Director Esquibel. Motion unanimously carried.
We continue to work on conservation easements. Bill is pulling together packages for review, an attempt to avoid the last minute hassle we had last year.
Bart Mendenhall, Attorney presented two (2) Resolutions for acceptance for conservation easements.
1. Resolution 07-14
The Lower Arkansas Valley Water Conservancy District holds a conservation easement donated by Donald and Carolyn Reeves owners of the Reeves Ranch Property has respectively proposed a conservation easement to be by donated to the District in 2007, consisting of 418.85 acres of a family cattle ranch in Fremont County, Colorado. Motion was made by Director Kennedy, seconded by Director Whittaker, to adopt Resolution 07-14 motion unanimously carried.
2. Resolution 07-15
The Lower Arkansas Valley Water Conservancy District holds a conservation easement donated by Lynn and Carol Wilkerson has respectively proposed a conservation easement to be donated to the District in 2007, consisting 380 acres of mountain ranch property in Teller County, Colorado. Motion was made by Director Kennedy, seconded by Director Whittaker, to adopt Resolution 07-15 motion unanimously carried.
Previous back in September 2007 Resolution 07-08, David and Tisha Mauro for the record Chairman Singletary excused himself from the vote. Motion was made by Director Esquibel, seconded by Director Kennedy, to adopt Resolution 07-08 motion unanimously carried.
Director Esquibel brought up Outreach Program-Pueblo County Volleyball Club requested a donation of $500.00. Motion was made by Director Esquibel, seconded by Director Kennedy to give $500.00 donation to Pueblo County Volleyball Club, motion was Five to one with Director Gill opposing.
COMMITTEE REPORTS:
Personnel: Director Kennedy had nothing to report.
Liaison: Director Kennedy had nothing to report.
Legal: Director Esquibel stated, “Attorneys Bart and Peter are handling the legal issues.”
DIRECTOR’S COMMUNITY REPORT:
Director Esquibel reported on Judge Maes 1041 litigation on Colorado Springs.
Director Whittaker reported harvest went fine. Recently Farmers had concerns on Steve Witte’s new rules. Wait to see what happens.
Director Moore reported it was quiet in Crowley County.
Director Gill reported Bent County going good we just need moisture. Las Animas celebrated their 145th anniversary. I attended the Super Ditch meeting and was very pleased on what I observed. I’m concerned with Engineer Witte’s proposal. Are there any impacts to the new rules that will affect the Super Ditch? Also, pleased with Roundtable grants. Communities need to be aware of these grants.
Director Kennedy stated, “Jay and I attended the Joint Basin meeting with South Platte, Metro and Arkansas River Basin in Douglas County and lived.” Listening to the speaker, I sat back and enjoyed. It was very productive meeting which I felt that the Lower Ark District took a leap ahead at that entire meeting. So good job everyone!
Chairman Singletary reported, winter storage started a couple of days ago, flow of the river good.
PUBLIC COMMENT:
Chairman Singletary asked if there were any comments.
GW Werdel, Larkspur I have two questions, How do you go about changes of water users from agriculture to domestic? Who has the authority to do so?
Engineer Witte replied, “The changes of water right are the authority of the Water Courts.” Changes from irrigation to domestic need to be file in Water Courts. There is temporarily authority to the State Engineer to administer those kinds of changes for limited time. Sometimes they work hand in hand. The applicant will file with the court and at the same time file an application with the State Engineer to do the same thing and a process with filing notice and review.
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 Whittaker to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 12:08 P.M.