December 10, 2003 Minutes-Board Meeting

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

After roll call, President Mauch announced a quorum was present and the Enterprise Meeting will follow the District's meeting.

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; Phil Reynolds, SECWCD; Kelly Roesch, High Plains A&M; Rachel Merrill, CWPDA; Kevin Salter, DWR-KDA; Brad Austin, CDA; Ken Cullen, Farmer.

APPROVAL OF MINUTES:
President Mauch asked if the Board members had reviewed the minutes for the November 12, 2003 Board Meeting, November 5, 2003 Acquisition Committee Meeting. Director Mauch asked whether there were any corrections or additions to the minutes. Hearing none, Director Melissa Esquibel moved for approval of the November 12 and November 5, 2003 minutes, seconded by Director Pete Moore. Motion unanimously carried.

PERSONNEL COMMITTEE:
Director Wayne Whittaker reported, the personnel committee met on December 3, 2003 to discuss the following:

• The possibility of hiring a Temporary hourly person (20 hours week at $7.00 per hour). The decision was to bring the issue before a full Board for approval. Director Whittaker moved to hire a temporary hourly person, (20 hours per week), at $7.00 per hour, seconded by Loretta Kennedy. Motion unanimously carried.
• Consideration of a 2% cost of living raise recommended from the December 3, 2003, Personnel Committee Meeting. Director Whittaker moved to approve a 2% cost of living raise, seconded by Ollie Ridley. Motion unanimously carried.
• Consider paying 50% of General Manager's cell phone charges, which currently total approximately $60.00 per month. Director Whittaker moved to approve payment of 50% of the General Manager's cell phone charges not to exceed $30.00 per month, to be submitted with invoice, seconded by Loretta Kennedy. Motion unanimously carried.
  
  TREASURER'S REPORT:

• Treasurer Pete Moore reported that the financial report for the month of November was included in the Board's Monthly Meeting Packet. He reported November total revenues at $52,265.79 with expenditures totaling $30,603.11. Director Moore moved to accept the Financial Statement, seconded by Melissa Esquibel. Motion unanimously carried.
• Mr. Moore stated the 2004 General Budget was sent out in the Board's Regular Meeting Packet. The budget reflects total revenue of $ 1,602,489 and total expenditures of $ 1,589,696 for an estimated reserve $ 12,793. Revenue consists of Operating Mill, SO Tax Collections, Refund/Abatements and Interest Income. Expenditures consist of Outside Services, Capital Outlay, County Treasurer's Fee, Administration, and Water Rights Acquisition. Treasurer Moore moved to accept the 2004 General Budget as submitted, seconded by Wayne Whittaker. Motion unanimously carried.
• The Public Budget Hearing regarding the 2004 General Budget opened for discussion. Hearing no question or concerns from the public, President Mauch requests a motion to close the Public Hearing of the 2004 General Budget. Treasurer Moore moved to close Public Budget Hearing, seconded by Leroy Mauch. Motion unanimously carried.
• Resolution and Order to approve the 2004 General Budget is presented for motion. Treasurer Moore moved to accept the submitted Resolution and Order accepting the 2004 General Budget, seconded by Wayne Whittaker. Motion unanimously carried.

PRESIDENT'S REPORT:
President Mauch would like to wish everyone a Merry Christmas. The Arkansas Valley Conduit is still holding meetings, the last meeting was held on December 4, 2003.

GENERAL MANAGER'S REPORT:
Julie Scaplo gave an overview of the following items:

• 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 had been sent to the Pueblo Chieftain, Denver Post or Rocky Mountain News, and Colorado Springs Gazette. The due date was December 8, 2003, in which we received six proposals. The review process will need to be completed.
• Colorado Water Congress: Review any 2004 water related bill that would be coming forward. The first bill to be reviewed was the basin of origin mitigation requirement submitted last year by Representative Salazar. A sub-committee of the Colorado Water Congress State Affairs Committee was formed to discuss and aid in creating a bill that would address different issues. General Manager participates by via teleconference.
• Annual Meetings: General Manager Scaplo attended the Catlin Canal Meeting on December 1. The LAWMA meeting on December 2, which they voted to purchase ½ of the Kesee Ditch. The Colorado/Kansas Compact Meeting on December 9. The Fort Lyon Canal Annual Meeting on December 15.
• SECWCD gift certificate: The District presented a gift certificate to SECWCD staff and Mr. Phil Reynolds as a token of our appreciation for all the help they have given in 2003.
• Acquisition of Twin Lake: The purchase of 40 shares of Twin Lakes is complete as of December 8, 2003, from Kenneth and Barbara Jordan.
• Acquisition of Colorado Canal: The purchase of 30 shares of Colorado Canal/Lake Meredith will be completed by the end of business today from Janet and Charles Hijar.
• Open House: General Manager offered for consideration the possibility of an open house some time in 2004
• Consider a Lobbyist: Would the District want to pursue hiring a lobbyist for the 2004 session?

LEGAL COMMITTEE REPORT:
Director Melissa Esquibel summarized the following:

• Pursuant to our initial action as a Board to review Legal Services at approximately 6 months to 1 year. The Committee met on December 3, 2003 at 12:00 pm, which the Legal Committee recommends the retention of services from Bart Mendenhall for the next year. Melissa Esquibel moved to approve retention of general legal counsel, seconded by Pete Moore. Motion unanimously carried.
• In addition, the retention of services from Peter Nichols, of Trout, Witwer & Freeman for water and water acquisition issues. It was discussed in the Legal Committee that we need to speak with Peter Nichols regarding making the contract renewable in January 2004,instead of December 31, 2003 to accommodate the new Directors appointed to the Board. The second item of discussion was review of fees, once the two issues are addressed, the retention of Trout, Witwer & Freeman can be determined.

AGENCY LIAISON: The Arkansas Valley Preservation Group has been meeting. Director Kennedy would suggest that Ken Baker or Terry Scanga do a presentation regarding a softening pool.

ACQUSITION COMMITTEE:
John Singletary reviewed the following:

• 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 was pleased with the progress with the acquisition process.
• Director Singletary is pleased over the new Twin Lake acquisition, and the up coming Colorado Canal contract due today, (December 10th), for signature.
• The District has received five Easements for review by Bart Mendenhall and Peter Nichols. A meeting will be arranged for reviewing all easements received.
• Tamarisk legislation has been removed from the forest bill

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. Judge Maes is expected to make his decision sometime in December.
• The High Plain A & M / Fort Lyon application case continues to roll along. The Catlin Canal have jumped in and moved to intervene. The presentation has been completed and we are waiting for a decision.
• The Conservation Easements have consumed a great deal of time. We continue to receive easements, which are being reviewed.

OLD BUSINESS:
The following is a list of old business discussed:

• USGS Water Quality Testing Project: Pat Edelman could not be here today, due to a prior commitment but he is putting together a presentation for January 2004. He would like to discuss items that need testing.
• PSOP Background Information: Phil Reynolds of SECWCD, outlined the status and history of the current PSOP, but it may need revision to allow for requests by new entities, such as LAVWCD. The District submitted a request for rights to store up to 5,000 acre feet and expect to receive an update next year.

NEW BUSINESS:
The following is a list of new business discussed:

• Department of Agriculture Well Presentation: Mr. Brad Austin of the Colorado Dept. of Agriculture, who is starting a study of groundwater quality in the Lower Arkansas Valley. The long-term study will include analysis for several potential pollutants and will involve drilling of a series of 20 wells located in the river alluvium between Pueblo and the State line. The study will monitor for presence of such items as sulfur, nitrates, pesticides, and fertilizers. The well will be drilled approximately 15 feet below the water table. Sampling is expected to begin sometime in May 2004 with results expected in 2005, at that time Mr. Austin will return with a summary of the findings.
• Cloud Seeding Information: Mr. Larry Hjermstad via teleconference explained that cloud seeding is needed and he answered any question by the Board. President Mauch recommended funding of the multi-agency cloud seeding project, which increasing snow pack in the Fryingpan-Arkansas Basin. The program is operated in cooperation with Southeastern Colorado Conservancy District and Upper Arkansas Valley Water Conservancy District. Director Wayne Whittaker moved to donate $2,000 toward the cloud seeding project, seconded by Director Loretta Kennedy. Motion unanimously carried.

PUBLIC FORUM:

Rachel Merrill, CWPDA, gave a brief summary regarding membership. The membership deadline is January 31, 2004. They have over 100 new wells to be reviewed. The annual meeting will be held at Otero Jr. College on Saturday, January 17, 2004, starting time is 1:00 PM.

RECESS DISTRICT MEETING:
President Mauch recessed District Meeting 12:20 p.m. to convene into the Enterprise Activity Meeting. The Enterprise meeting adjourned at 12:40 p.m. The Regular District meeting was reconvened after Executive Session at 3:05 p.m., at which time any motions from Executive Session were heard.

The Executive Session will be held for the purpose of:
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."

To discuss the following matters:

• Water Acquisition
• Legal Advice

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

• Board Members
• General Manager
• Counsel for the District
• Administrative Assistant

Director Ollie Ridley moved that the Board convene into Executive Session, seconded by Melissa Esquibel. Motion unanimously carried.

REPORT FROM EXECUTIVE SESSION:
Mr. Mendenhall reported the Executive Session covered the following issues:

• Acquisition property interest
• Matters concerning legal advice
• Matters that may be subject to negotiations

A motion was made by Loretta Kennedy to consider amending the Conservation Easement policy in regarding the size of Conservation Easement donations the District would consider for acceptance. Parcel sizes of 160 acres in rural areas and 35 acres near urban settings will be added to the policy with special circumstance exceptions being considered on an individual basis by the Directors.
The motion was seconded by Wayne Whittaker. Motion carried with a vote of 6 to 1, with John Singletary voting nay.

ADJOURNED:
President Mauch asked if there were any other questions or other matters to come before the Board. Hearing none, the District meeting was adjourned at 3:20 P.M.