December 8, 2004 Minutes-Board Meeting
The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, December 8, 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: DISTRICT STAFF PRESENT:
Leroy Mauch-Chairman Jay Winner-General Manager
John Singletary-Vice Chairman Bart Mendenhall-Attorney
Pete Moore-Treasurer Kim Chavez-Financial Coordinator
Ollie Ridley- Secretary Randa Morlan-Temporary Hourly Aide
Loretta Kennedy
Melissa Esquibel
Wayne Whittaker
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:
Rodney Baird, La Junta Tribune Democrat; Virgil Cochran; Lamar Daily News, Kelly Roesch; High Plains A & M, Chris Woodka; Pueblo Chieftain, Phil Reynolds; SECWCD, John Wiener; Water Banking Project, Ross Manley; Senator Allard, John Salazar; U.S. Representative-elect, Brenda Fillmore; AGUA and Scott Hobson; Lake Minnequa Project.
APPROVAL OF MINUTES:
v November 10, 2004 Monthly Board Meeting- Chairman Mauch asked if the Board members had reviewed the minutes for the November 10, 2004 Board Meeting, and whether there were any corrections or additions. Director Whittaker suggested adding the following additions to the general meeting minutes on page 3, second paragraph, add the word, “water received in the Larkspur Ditch of $10.00 per a/f”, same section, add, “excess of 100 a/f for the Fish Recovery Program”, page 4, last paragraph, correct, “stature to statute”. Director Esquibel moved to approve the November 10, 2004 Board Meeting minutes as corrected seconded by Director Whittaker. Motion unanimously carried.
SPECIAL GUEST-JOHN SALAZAR:
U.S. Representative-Elect, John Salazar gave a brief speech to the LAVWCD saying that he would continue to work for the people of the rural area and believes that we need to form a coalition between the Colorado, the Gunnison, Rio Grande and Arkansas River Basins to address issues and concerns that affect all Water Districts of Colorado. He plans on visiting all Water Districts and stressing this coalition between one another.
Vice Chairman Singletary agrees forming a coalition between the five Water Districts and believes the District will be very proactive. He further discussed the Preferred Storage Option Plan (PSOP) to which the LAVWCD is in opposition, and the attempt of proponents to push that legislation through congress in November 2004.
Vice Chairman Singletary noted that the Board voted 6-1 to approve wording of the letter to the Congressional Delegation which state that the District is in opposition to the bill in its current form.
Director Kennedy explained that the LAVWCD represents five counties which were never included in the drafting of the PSOP bill and that the District has been out of negotiations.
Chairman Mauch reported that he was the one in the 6-1 vote against sending the letter of opposition to the Congressional Delegation. He believes that the valley’s future lies with the Conduit. He believes the valley will gain with PSOP.
Director Moore voiced that the District isn’t against PSOP; they just want to be a part of the bill. He stresses that the District doesn’t want any water leaving the valley; with that being in the LAVWCD mission. He believes that the District took action.
Representative-Elect John Salazar asks the Board to look fifty years into the future. His concerns are for all people, including the lower valley. He said agriculture must be protected.
Vice Chairman Singletary pointed out that the proponents working on the bill were the ones wanting water and that when they drafted the new legislation to the omnibus bill many details were left out.
Director Esquibel noted that others think we may be steam-rolled over, but they are wrong and the lower District will stand its ground and support their mission.
Ø Ken Salazar call by phone to District-
Vice Chairman Singletary introduced the Board members to Mr. Ken Salazar, Senator elect.
Ken Salazar assured the Board that he will not sign anything he is not sure of and will research more into the legislation. He said he will speak with Senator Allard concerning the lower water basin.
Director Kennedy noted her concerns for the omnibus bill that the District isn’t included.
Ken Salazar said the District should voice their concerns in the form of a letter to the Congressional Delegation.
Chairman Mauch noted that he didn’t agree to send out the letter concerning PSOP on November 17, 2004. He believes that the lower District needs storage.
John Salazar again noted that he wants to form a coalition between the Districts. He wants to think of the communities. He noted that this would keep Western Colorado alive and put money in the pockets of the people. He says he is here to help the District and send the message.
Ken Salazar thanked the District Board members and looks forward to visiting the lower Arkansas valley in the near future.
John Salazar also thanked the Board.
FIVE MINUTE RECESS:
Chairman Mauch called a five minute recess at 11:06 AM and reconvened the meeting at 11:13 AM.
TREASURER’S REPORT:
Director Moore reported that the financial report for the month of November was included in the Board’s Monthly Meeting Packet. He reported that November total revenues at $45,914.20 with expenditures totaling $27,843.14. The Board examined the Financial Statement, whereupon a motion was made by Director Moore to accept the November Financial Statement, seconded by Director Kennedy and carried unanimously.
2005 FINAL BUDGET PUBLIC HEARING:
Financial Coordinator, Chavez gave a short review of the 2005 Final Budget. She reported that the aggregate assessed valuation of the five counties is $984,164,446. There were four counties with an increase and Crowley County at a decrease. Pueblo County has the largest assessed valuation of $765,778,490. The Mill Levy will stay the same as last year of 1.5; Property Tax Revenue is at $1,476,246; Specific Ownership Tax at $211,237; Abatements and Refunds at $1,968; Interest and Miscellaneous Income at $14,000 with a total combined Revenue at $1,703,452 leaving an approximate total of $100,000 increase over last year revenue.
Expenditures are at $1,699,860 with approximately $110,000 increase over last year expenditures. Expenditures Outside Services are at $237,000; Capital Outlay at $163,000; County Collection Fees at $30,000; Administration at $272,100; Contingency Expense at $1,500; Assistance for Other Entities at $350,000 and Water Rights Acquisition at $645,760 leaving a total of $3,592. The Estimated Ending Fund Balance is about $100,000. The Tax Levy will be certified by all county Commissioners by the due date of December 15, 2004.
RESOLUTION OF 2005 BUDGET APPROVAL:
Director Moore moved to adopt the proposed 2005 final Budget with the modifications recommended and the Resolution by the Finance Committee, seconded by Director Esquibel. Motion unanimously carried.
Chairman Mauch closed the 2005 Final Budget Public Hearing.
RESOLUTION AUTHORIZING CERTIFICATES OF DEPOSIT:
Director Singletary moved to accept the Resolution to authorize certificates of deposit of up to $100,000 in the local banks starting with the banks that supported the District: See list on Certified Resolution of Deposit, seconded by Director Whittaker. Director Ridley abstained. Motion passes with a vote of 5-0.
RESOLUTION FOR TRANSFER OF ASSETS:
Director Whittaker moved to accept the Resolution to transfer the following accounts and their assets Colorado Canal/Lake Meredith; $100,000, Bessemer Ditch & Real Property; $439,515, Lower Arkansas Water Management Association, $96,250, Water Leases; $211,240 and Option to purchase certain property from Larkspur Ditch, $5,000 from the General Fund of the District to the Enterprise Fund of the District, seconded by Director Singletary. Motion unanimously carried.
COMMITTEE REPORTS:
Ø Water Acquisition- Vice Chairman Singletary noted that a meeting will be held in Lamar on December 14, 2004 for the John Martin Reservoir Storage Account.
General Manager, Winner reported that Larkspur Ditch has good snow pack and is hoping for 300 + a/f next year in the Larkspur Ditch. He is working on getting Mr. Gilbert Werdel the remainder of dollars owed him per a/f for working on the Larkspur Ditch. He is also working on negotiation of a flat rate for next year. He would like to keep Mr. Werdel as the maintenance person for the Larkspur Ditch.
General Manager, Winner reported that the District will hold a video presentation on December 15, 2004 in Crowley at the Crowley County Heritage Center at 1:00 PM. There were 100+ invitations sent out to water shareholders in Crowley. Following the Crowley presentation he plans on a video showing at the Pueblo City Council, then the local schools.
He reported that the lessee of the Bessemer Farm would like a five-year extension and that Attorney, Mendenhall is working on the details.
Vice Chairman Singletary noted that there will be no Water Acquisition Meeting in December.
General Manager Winner would like to discuss the Twin Lakes and Colorado Canal/Lake Meredith shares during Executive Session.
Personnel- Director Singletary would like to discuss a couple of personnel items in Executive Session.
Ø Legal- Director Esquibel reported that Attorney, Mendenhall will discuss updates on High Plains litigations, as well as the Colorado/Kansas Case.
Liaison- Director Kennedy noted that she worked with General Manager Winner on a letter to the Congressional delegation concerning the PSOP legislation which proponents attempted to push through on the omnibus bill. She suggests taking John Salazar’s advice on writing a letter to the Colorado Delegation. She asks that General Manager Winner help draft the letter of concerns.
Director Esquibel asks that all concerns be addressed concerning the bill. She would like a copy of the letter sent to the Pueblo Chieftain and Colorado Springs Gazette.
Director Moore agrees with sending the letter to our Congressional Delegation but wants to reserve the right and let people know that the District will compile a list of concerns of our constituency.
General Manager Winner wants to address in the letter that the District was not in existence when the PSOP bill was formed and that we would like to be involved.
GM REPORT:
General Manager Winner thanked Financial Coordinator Chavez for work on the Budget and Hourly Aide Morlan for work on the Resource Center.
He reports nothing new on the Team Tamarisk but hopes to have a follow up in January.
He reported that he had attended a meeting the prior day on Selenium and believes that the District needs to be involved in fronting the Selenium Project Committee. He asks for the Boards approval to authorize him to have a grant written that has to be in by December 15, 2004 with funding in the amount of about $2,000 for drafting a template on water quality issues.
The Board authorized General Manager Winner to have the Grant written at a cost of $2,000.
Attorney Mendenhall asked the Board’s approval for General Manager Winner to execute the lease on the DeGrado property.
Director Esquibel wants to reserve further discussion in Executive Session for negotiation purposes.
LEGAL REPORT:
Ø High Plains A&M- High Plains A & M has asked for an extension on the deadline for the filing of the Appellant’s brief. They have also asked to consolidate the appeals on the three different cases. The IRS has issued a notice concerning its intentions in dealing with different aspects of charitable contributions and conservation easements. A copy of the notice has been sent to all Directors.
Attorney, Mendenhall noted that the manager of Palo Verde Irrigation District will be in Rocky Ford on January 5, 2005 for the Ag Forum.
High Plains A & M has called a special shareholder’s meeting of the Fort Lyon to be held in conjunction with the regular meeting. The purpose of the meeting is to consider three resolutions.
Ø Conservation Easements- Peter Nichols met with Ken Wright and Trish Flood of Wright Water Engineers on December 7, 2004 concerning the appraisal. He will continue to follow-up on a weekly and biweekly basis. GOCO has approved a grant to create a handbook for conservation easements.
Ø Colorado/Kansas Case- The United States Supreme Court upheld the Special Master’s findings the previous day with a win for Colorado which denied Kansas of a River Master, overruled Kansas’s exception to the Master’s prejudgment interest calculation, ordered that the H-I Model be used with a ten year measurement period as desired by Colorado, agreed with the Master’s recommendation that Colorado Water Courts determine the final amounts of water replacements credits and upheld that Colorado complied with the Compact during 1997-1999.
NEW BUSINESS:
Chairman Mauch noted that he will attend the John Martin Reservoir Annual Meeting. Vice Chairman Singletary noted that he may also attend.
v John Wiener, University of Colorado in Water Banking Pilot Projects briefly reviewed to the Board what he does in the Water Banking Pilot Program and gave a handout expressing his interests and concerns.
OLD BUSINESS:
v Scott Hobson with Minnequa Lake Project of Pueblo briefly reviewed the possibility of using Minnequa Lake as a storage unit and what the Project involves. He gave a brief view of the surrounding lakes and ditches that pertain to Lake Minnequa. Minnequa Lake Project is currently working with GOCO land and storage rights and has approached LAVWCD Board seeking support regarding a grant for securing water supply to the lake to replace evaporation losses. The grants will be used to buy irrigation water rights in the CF&I reservoir system which includes St. Charles Reservoirs one and two.
Director Whittaker cautioned that the flood right administered as an 1893 date would not supply sufficient water for evaporation.
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 12:29 PM to convene the Executive Session at 12:40 P.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
Council for the District
Chairman Mauch adjourned the Executive Session at 1:46 P.M, and reconvened the District Meeting at 1:47 P.M.
REPORT FROM EXECUTIVE SESSION:
Mr. Bart Mendenhall reported the Executive Session covered the following issues:
q Matters concerning legal advice
q Negotiation matters
q Personnel matters
MOTIONS OUT OF EXECUTIVE SESSION:
Chairman Mauch said there were recommendations from Executive Session.
Director Moore moved to offer Shannon Torgler, Twin Lakes the amount of $21,500 per share, seconded by Director Kennedy. Motion unanimously carried.
Director Moore moved to offer Shannon Torgler for Colorado Canal/Lake Meredith the amount of $5,400 per share, seconded by Director Kennedy. Motion unanimously carried.
Motion heard out of Executive Session was heard that the DeGrado lease be drafted and extended for five years with an annual review. Motion unanimously carried.
ADJOURNED:
Chairman Mauch asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Whittaker, seconded by Director Esquibel to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 1:48 P.M.