December 13, 2006 Minutes-Board Meeting

The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, December 13, 2006 at 10:00 a.m., at 801 Swink Avenue, Rocky Ford, CO 81067.

Chairman Singletary announced a quorum was present with Directors Melissa Esquibel and Lynden Gill having an excused absence from the meeting.

DIRECTORS PRESENT:
John Singletary-Chairman
Pete Moore-Vice Chairman
Wayne Whittaker-Treasurer
Loretta Kennedy
Leroy Mauch

DIRECTORS EXCUSED:
Melissa Esquibel-Secretary
Lynden Gill

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

MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Moore 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 Mauch moved to reconvene the District Meeting at 10:09 A.M., seconded by Director Whittaker. Motion unanimously carried.

APPROVAL OF MINUTES:

TREASURER’S REPORT:
Director Whittaker reported that the financial report for the month of November was included in the Board’s Monthly Meeting Packet. He reported November total revenues of $279,655.27 and total expenditures of $201,278.56. Director Whittaker moved to accept the November Financial Statement, seconded by Director Mauch and carried unanimously.

GM REPORT:
General Manager Winner introduced Financial Officer Kim Chavez, Lower Arkansas Valley Water Conservancy District (LAVWCD) to give a presentation on the Enterprise and General Budgets.

2007 FINAL BUDGET PRESENTATION:
Financial Coordinator/Budget Officer Kim Chavez gave a short review of the 2007 Enterprise Final Budget and a PowerPoint presentation of the 2007 Final Budget. She reported that the assessed valuation of the five counties is $1,104,020,301 with revenues of ($2,707,340) deficient; expenditures of $2,666,000; fund balance of $41,340. The mill levy for the year 2007 has not changed from the previous year of 1.5.

2006 FINAL BUDGET RESOLUTION:
Director Whittaker moved to adopt the resolution to accept the 2007 Final Budget, seconded by Director Kennedy. Motion unanimously carried.

Director Whittaker moved to adopt the resolution to accept the 2007 Enterprise Final Budget, 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; Fred Heckman, Ft. Lyon Canal; Chris Woodka, Pueblo Chieftain; Serenity Lewis; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Pat Edelmann, USGS; Jim Valliant, Colorado State University; Kelly Roesch, High Plains A&M; Ricky Markus.

GM REPORT CONTINUED:
General Manager Winner introduced Del Nimmo, Colorado State University (CSU) – Pueblo/Biology who gave an update on the comprehensive study of water quality on Fountain Creek. He sated that the Colorado Department of Public Health and Environment had given a suggestion to add fish-tissue studies and wetlands research to the scope of work.

Del Nimmo also stated that he would be making a presentation to the Fountain Creek Watershed Technical Advisory Committee on January 19, 2007. He also said that the ICP machine has been ordered and that Agilent is the preferred vendor.

General Manager Winner introduced Bill Hancock, Conservation Program Manager for the LAVWCD, to give a short presentation on Conservation Easements.

Bill Hancock stated that there were many conservation easements that needed to be adopted through resolution and that Attorney Mendenhall would present those later in the meeting. He stated that the District is expecting to close 15 conservation easements in by the end of 2006.

Bill Hancock also stated that Attorney Mendenhall, General Manager Winner, and he had attended various canal company annual meetings and he had been asked to speak on the Water Management Program during some of those meetings. He stated that the companies were interested to hear about the program.

General Manager Winner reported that the District will be cosponsoring Conservation Easement Seminars with the Nature Conservancy and Community Banks of Colorado. The goal is to have seven to nine of the seminars in 2007.

General Manager Winner said that he had met with Lee Summers and there is an opportunity to purchase land at $1500.00 an acre next to the research center. The opportunity also allows a rental agreement and the District would have first right of refusal if the research center were to sell their property. This would allow the District to have the Research Center complete a three year project with fallowing. General Manager Winner requested approval from the Board to do negotiations as long as he did not exceed $16,500.

General Manager Winner stated that there is a funding request from Dale Straw dealing with the Lysimeter. The request states that there is funding needed for 2006 and 2007. Attorney Peter Nichols stated that this could increase water to farmers and ranchers in Colorado. Chairman Singletary said he will get more information on the request and will bring it back to the board.

General Manager Winner stated there is an available long term lease with Twin Lakes Reservoir and requested to enter into negotiations. He said that there is a need of approximately 600 shares. Director Whittaker moved to allow General Manager Winner to enter into negotiations with Twin Lakes, seconded by Director Moore. Motion carried unanimously.

General Manager Winner discussed the Arkansas River Basin Round Table and the funding requests that had been presented to the subcommittee: Water Needs Assessment. He stated that the Tamarisk request passed with a 10-0 vote, the Upper Black Squirrel Creek Basin Request passed with a 10-0 vote, the wetlands request failed with a 0-9 vote, the Water Leasing Program passed with a 9-2 vote, and one request was tabled for further discussion.

PRESIDENT’S REPORT:
Chairman Singletary stated that he and General Manager Winner has spent an afternoon with Aurora and believes that monitoring the Bureau of Reclamation and Aurora’s negotiations is important. Chairman Singletary requested that the Board give him permission to continue with monitoring the negotiations. The Board agreed it would be a good idea to continue to monitor the negotiations.

Chairman Singletary stated that the legislature will be back in session soon and Wes McKinley had been in touch to say that he would like to change the legislation that gives immunity to the municipalities.

Chairman Singletary said that Representative McFaden’s bill is ready to go through.

COMMITTEE REPORTS:
Personnel: Director Kennedy wished the staff a Happy Holiday and thanked them for all their hard work through out the last year. Chairman Singletary also commended the Board and Staff for their work and leadership throughout the year.

Liaison: Director Kennedy stated that there is a possible project that would use a lot of water and suggested General Manager Winner attend the meeting.

Legal: There was no legal report since Director Esquibel was not present at the meeting.

LEGAL REPORT:
Attorney Mendenhall reviewed the resolutions available for adoption by the board.

Resolution 2006-16: Director Kennedy then moved to accept Resolution 06-16, Brian Cullen, Michael Cullen, and Lance Verhoeff of Bent County and Prowers County. Director Moore seconded the motion. Motion unanimously carried.

Resolution 2006-17: Director Kennedy then moved to accept Resolution 06-17, William and Grant Heuett and Frank Heuett of Fremont County, which is located in the drainage o the Arkansas River. Director Moore seconded the motion. Motion unanimously carried.

Resolution 2006-18: Director Kennedy then moved to accept Resolution 06-18, Serenity Markus, Ray and Jennifer Hall, and Larry and Elaine White of Crowley County. Director Moore seconded the motion. Motion unanimously carried.

Resolution 2006-19: Director Whittaker moved to accept Resolution 06-19, to give long-term lease negotiation authorization for the water rights represented by the shares of the capital stock of Twin Lakes Land and Water Company. Director Moore seconded the motion. Motion unanimously carried.

Resolution 2006-20: Director Kennedy then moved to accept Resolution 06-20, to transfer Larry and Elaine White’s, of Crowley County, Conservation Easement from the Palmer Foundation to the Lower Arkansas Valley Water Conservancy District. Director Moore seconded the motion. Motion unanimously carried.

Attorney Mendenhall stated that General Council had been working on the documentation for the Larkspur purchase. He stated that he is waiting for information from State Bank concerning the fees to be charged.

Attorney Mendenhall stated the District is working hard to get Conservation Easements closed before the end of the year.

Attorney Mendenhall said he had met with Sean Conway, Senator Allard’s Chief of Staff, and discussed the possibility of the PSOP legislation being added onto another bill in the lame-duck session of Congress before negotiations were completed. Sean Conway assured him that this was not going to happen.

Attorney Mendenhall discussed the Highline Canal annual shareholder’s meeting. He stated that the District was given time to discuss the fallowing program and to answer questions. He stated he believes that the District has made progress in convincing the shareholder’s of the benefits of the concept.

Attorney Mendenhall stated that Bill Hancock, Attorney Peter Nichols, and he had met with Tony van Westrum to discuss preliminary reports on the entity selection for the Super Ditch. Tony is going to prepare a “layman’s” version of his report to provide to the shareholders, counsel of the ditch companies, and those invited to the Farm/Ranch/Water Symposium and Trade Show on February 1, 2007.

Attorney Mendenhall discussed that Bill Hancock and he had met with Mark Morley and a water broker. They were able to discuss the Super Ditch program.

Attorney Nichols presented the Board with a resolution from 2003, along with changes made to the resolution. The changes were made to streamline the Enterprise Fund. Director Kennedy moved to accept the amended 2003 resolution, seconded by Director Whittaker. Motion unanimously carried.

Attorney Nichols suggested having Attorney Mendenhall compose a resolution to help with income and expenses. Director Whittaker moved to have Attorney Mendenhall compose the resolution, seconded by Director Kennedy. Motion unanimously carried.

Attorney Nichols gave a briefing on the status of the negotiations with Colorado Springs and the storm water program. He stated Colorado Springs Utilities had a tentative agreement and it will be presented to the city council on December 20, 2006.

Attorney Nichols stated that negotiations between the LAVWCD and Aurora have been reinstituted though there is a long way to go.

Chairman Singletary stated that with the water management land fallowing program, the District is moving forward and it should be implemented in 2008.

PUBLIC COMMENT:
There were no public comments.

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 Moore to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:23 P.M.