December 14, 2005 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, December 14, 2005 at 10:00AM, at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Singletary announced a quorum was present.

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

DISTRICT STAFF:
Jay Winner-General Manager
Bart Mendenhall-Attorney
Kim Chavez-Financial Coordinator
Randa Morlan-Administrative Assistant

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Whittaker moved that the Board convene into the Water Activity Enterprise, seconded by Director Mauch. Motion unanimously carried.

At the conclusion of the Water Activity Enterprise meeting Director Esquibel moved to reconvene the District Meeting at 10:09 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:
Dale Mauch, Fort Lyon Canal Co; Mike Spady, Fort Lyon Canal Co; Wesley Eck, Fort Lyon Canal Co; Herb Reyher, Fort Lyon Canal Co; Jimmie Colvin, Fort Lyon Canal Co; Brian Taylor, Arkansas Valley Range Project; Virgil Cochran, Southeast Land and Environment; Roy Vaughan, US Bureau of Reclamation; Tom Musgrove, US Bureau of Reclamation; Ed Sealover, Colorado Springs Gazette; Bob Plummer, Colorado Produce; Steve Miller, Colorado Water Conservation Board; Kevin Salter, Kansas Division of Water Resources; Chris Woodka, Pueblo Chieftain; Kelly Roesch, High Plains; Brenda Fillmore, AGUA; Salvadore Pace, Congressman Salazar's office-Pueblo; Gilbert Werdel, Larkspur; Allison Cortner, Senator Salazar's office-Pueblo; Dan Henrichs, Highline Canal and Bill Thiebaut, Attorney.

APPROVAL OF MINUTES:

2006 FINAL BUDGET PUBLIC HEARING:
Director Esquibel moved to open the 2006 Final Budget Public Hearing, seconded by Director Moore. Motion unanimously carried.

Financial Coordinator/Budget Officer Chavez gave a short review and PowerPoint presentation of the 2006 Final Budget. She reported that the assessed valuation of the five counties is $1,073,310,424 with revenues of $2,388,381, expenditures of $2,356,761 with a fund balance of $31,620. The mill levy for the year 2006 has changed to 1.444 from the previous year of 1.5.

2006 FINAL BUDGET RESOLUTION:
Director Whittaker moved to adopt a resolution to accept the 2006 Final Budget, seconded by Director Esquibel. Motion unanimously carried.

TEMPORARY TAX CREDIT RESOLUTION:
Director Whittaker moved to adopt a resolution to accept a temporary tax credit for the difference between the mill levy and a levy of 1.5 mills, seconded by Director Esquibel. Motion unanimously carried.
Chairman Singletary closed the 2006 Final Budget Public Hearing.

TREASURER'S REPORT:
The financial report for the month of November was included in the Board's Monthly Meeting Packet. November total revenues were $57,362.20 and total expenditures were $199,043.64. Director Esquibel moved to accept the November Financial Statement, seconded by Director Moore and carried unanimously.

GM REPORT & PRESENTATIONS:
Bill Thiebaut- Bill Thiebaut, Attorney gave a brief speech on the importance of water quality to the Pueblo area and how water quality affects citizens downstream of Pueblo, CO. He briefly commented on the reasoning of the litigation against Colorado Springs concerning the pollution in Fountain Creek.

Director Whittaker asked if it would be helpful for Lower Arkansas Valley entities to join in the litigation against pollution in Fountain Creek. Mr. Thiebaut responded that he is not seeking, but would accept such help.

Director Esquibel briefly commented on the comments made by Colorado Springs concerning the pollution in Fountain Creek.

A short question and answer period was held after Mr. Thiebaut's presentation on the importance of water quality in the Lower Arkansas Valley and brief discussion was held on the litigation toward water quality issues.

Steve Miller- Steve Miller, Colorado Water Conservation Board gave a brief update on the Kansas vs. Colorado Compact and briefly commented on water quantity in Colorado. He reported on a meeting held the day before in Lamar, CO concerning the Kansas vs. Colorado Compact. Further discussion followed on water quality in the Lower Arkansas Valley.

Director Kennedy and Chairman Singletary briefly commented on the water quality issues in Fountain Creek and the Lower Arkansas Valley.

Kevin Salter - Kevin Salter, Kansas Division of Water Resources briefly commented on the Kansas vs. Colorado Compact meeting on December 13, 2005 in Lamar, CO.

Dale Mauch - Dale Mauch, Fort Lyon Canal Company briefly noted that they are looking for potential grant matching and have come to ask the LAVWCD Board of Directors for $50,000 to go with $50,000 of their own money to apply for a grant from the Bureau of Reclamation and the Colorado Water Conservation Board for improvements of Adobe Creek Reservoir to meet state compliances.

Director Esquibel moved to support the Fort Lyon Canal grant matching of $50,000 if they receive the second half, seconded by Director Mauch. Motion unanimously carried.

Mr. Dale Mauch gave an update on the Tri-State meeting and the outcome of the meeting.

Further discussion followed on the Tri-State meeting, their plans for purchasing land and water and the future of Tri-State in the Lower Arkansas Valley.

COMMITTEE REPORTS:
Legal: Director Esquibel gave a brief update on the Legal Committee meeting held earlier in the morning and noted that the Committee reviewed services and contracts and the renewal of Legal services.

GM REPORT:
Chairman Singletary briefly commented on his actions against the Bureau of Reclamation concerning long term contracts with out of basin entities.

General Manager Winner added that the Board showed a 6-1 vote to slow legislation on long term contracts with out of basin entities the previous year. He noted that the Bureau of Reclamation and long term contracts need to be discussed with legislation or with congressional delegation.

Director Kennedy proposed to pass a resolution stating that the District believes the Bureau of Reclamation does not have the authority to enter into long term contracts with out of basin entities.

Director Esquibel noted that it is still an issue with the Bureau of Reclamation entering into long term contracts with out of basin entities and that any step the District may take will be a preliminary step of saying attention needs to be paid to this issue.

Director Esquibel added that perhaps the District should send a letter saying the District has serious concerns about the nature of the negotiations going on and that we are asking on the Districts behalf that the issue be addressed.

Director Kennedy added that a resolution is more binding with a cover letter attached.

Attorney Mendenhall noted that this matter is subject to negotiation.

Director Kennedy moved to approve a resolution to send a letter to federal and state lawmakers challenging the Bureau of Reclamation on a long term contracts with out of basin entities, seconded by Director Esquibel. Motion unanimously carried.

Tom Musgrove, Bureau of Reclamation questioned the Board on whether they are questioning the Bureau of Reclamations authority to contract.

Chairman Singletary responded saying only for long term contracts out of the basin.

LEGAL REPORT:
Attorney Mendenhall reported that the District has closed on the Cuerno Verde conservation easement with Bessemer water, Heuett easement in Canon City and the Jordan easement with Colorado Canal water.

He reported that General Manager Winner, Director Mauch and he have met productively with the Fort Lyon Canal Company Board of Directors to discuss the Wright appraisal of the Fort Lyon. They also discussed conservation easements and water management. They obtained a copy of the proposal from Tri-State Generation.

He added that they attended the annual meeting of the Fort Lyon Canal Company the previous Monday and heard presentations by High Plains and Tri-State. He said that High plains basically said they continue to look for buyers, and wish to work with the Fort Lyon Board. The representatives from Tri-State Generation gave a brief presentation. Mr. Mendenhall noted that they refused to say how many sellers have signed up. He said they are paying $2,054.00 per acre.

Attorney Mendenhall added that the District is still in the process of purchasing the building from Community Banks and have finalized the terms of the lease of the ATM and only need to execute documents and pay them. He believes everything should be done by the end of the year.

PUBLIC COMMENT:
Dan Henrichs, Highline Canal Company briefly expressed his concern with the action of LAVWCD on the long term contracts on behalf of his board.

ADJOURNED:
Chairman Singletary asked if there were any other matters to come before the Board. Hearing none, motion was made by Director Mauch, seconded by Director Esquibel to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:56 A.M.