December 12 , 2007 Minutes-Board Meeting
The regular monthly meeting of the Lower Arkansas Valley Water Conservancy District Board of Directors was held on Wednesday, December 12, 2007 at 10:05 AM, at 801 Swink Avenue, Rocky Ford, CO 81067.
Chairman Singletary announced a quorum was present with all Directors’ present.
DIRECTORS PRESENT:
John Singletary-Chairman
Pete Moore-Vice Chairman
Wayne Whittaker-Treasurer
Melissa Esquibel-Secretary
Leroy Mauch
Lynden Gill
Loretta Kennedy
DISTRICT STAFF PRESENT:
Jay Winner - General Manager
Bill Hancock - Conservation Program Manager
Bart Mendenhall - Attorney
Peter Nichols - Attorney
Kim Chavez -Financial Officer
Carla Aragon-Quezada - Administrative Assistant
MOTION TO ENTER INTO WATER ACTIVITY ENTERPRISE:
Director Esquibel moved that the Board convene into the Water Activity Enterprise, seconded by Director Gill. Motion unanimously carried.
At the conclusion of the Water Activity Enterprise meeting Director Whittaker moved to reconvene the District Meeting at 10:09 A.M., seconded by Director Esquibel. 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; Ken Weber, CSU; G W Werdel, Larkspur; Karen Dietrich, La Junta Tribune Democrat; Virgil Cochran, SE Land and Environment; Alan Ward, Pueblo Board of Water Works; Chris Woodka, Pueblo Chieftain; Brenda Fillmore, Arkansas Ground Water Users Association (AGUA); Doris Morgan, Senator Allard.
APPROVAL OF MINUTES:
v November 21, 2007 Monthly Board Meeting Minutes- Chairman Singletary asked if the Board members had reviewed the minutes for the November 21, 2007 Board meeting and whether there were any corrections or additions. Director Esquibel moved to approve the minutes for November 21, 2007, seconded by Director Kennedy. Motion unanimously carried.
TREASURER’S REPORT:
Chairman Singletary reported that the financial report for the month of November was included in the Board’s Monthly Meeting Packet. Director Whittaker reported November total revenues $33,731.88 and total expenditures $208,776.13 with total net <175,044.25>. Director Whittaker moved to accept the September Financial Statement, seconded by Director Esquibel. Motion unanimously carried.
GM REPORT:
General Manager Winner introduced Financial Officer Kim Chavez, Lower Arkansas Valley Water Conservancy District (LAVWCD) to give a presentation on the General Budget.
2008 FINAL BUDGET PRESENTATION:
Financial Coordinator/Budget Officer Kim Chavez gave a short review of the 2008 Final Budget. She reported that the assessed valuation of the five counties is $1,220,065,166.00 with revenues of $2,893,537.89; expenditures of $2,834,427.16; fund balance of $59,110.73. The mill levy for the year 2008 has not changed from the previous year of 1.5.
2007 FINAL BUDGET RESOLUTION:
Director Gill moved to adopt the resolution to accept the 2008 Final Budget, seconded by Director Esquibel. Motion unanimously carried.
GM REPORT:
General Manager Winner directed Board Members to Tab One (1), IRS (Internal Revenue Service) Settlement Offers, Lawyer Larry D Harvey, Professional Corporation. Many conservation easement donors have received a settlement offer from the IRS. This offer gives the taxpayer 30 days to respond to the IRS with an acceptance or rejection the offer. Each package also includes an offer from the Colorado Department of Revenue for settlement of state tax issues as well.
General Manager Winner directed Board Members to Tab Two (2), Tax Credit Task Force. He stated he felt very fortune to be on this task force. What potential actions can be taken to resolve the problem there are 5 that were brought up (1) Increased oversight, enforcement and coordination by regulators (A,B,C, D), (2) Certification of appraisers for Conservation Easements, (3) Certification of Easement holders (B,C), (4) Consumer protection process for landowners (A,B), (5) Prescreening of proposed easements (A,B,C). He also stated that appraisal and baseline studies before approval will be very important to who donates conservation easements.
General Manager Winner directed Board Members to Tab Three (3), Intergovernmental Agreement (IGA), concerning the development and operation of Lake Minnequa Project. He introduced Peter Nichols, attorney for LAVWCD. Peter stated, “Pueblo intends to divert stormwater into Lake Minnequa and to use the lake as a component of the City’s stormwater management plan for the drainage basin in which the lake is located.” PBWW and the District desire to help Pueblo improve Lake Minnequa for public use by supplying water to Lake Minnequa to enhance its use for open space, recreation and piscatorial purposes. The Parties anticipate that the water to be supplied by the District will be delivered to, and allowed to flow through, Lake Minnequa to provide freshening flows to the lake, and then the District Water will return to the Arkansas River for beneficial use by the District.
General Manager Winner has been working on this for a couple of years with Pueblo Board of Water Works.
The Lower Arkansas Valley Water Conservancy District is the last one to sign the IGA. Director Kennedy made a motion to adopt the signing of the IGA, seconded by Director Esquibel. Motion unanimously carried.
Chairman Singletary gave an appreciation to General Manager Winner on a terrific job with the IGA, also stated that the District is giving back to Pueblo. He complimented General Manager Winner, attorney Peter Nichols, and to the Board on a fine job.
General Manager Winner stated, “Alan Hamel of Pueblo Board of Water Works (PBWW) has been a large part of it.” He then called on Alan Ward for comment on Pueblo Board of Water Works (PBWW) position. Alan stated that Pueblo Board of Water Works (PBWW) is waiting to sign the IGA until purchased of the properties completed.
General Manager Winner directed Board Members to Tab Four (4), Super Ditch.
Chairman Singletary stated maybe we can be an influence on how farm efficiency rules results come out with the State Engineer. If we all stick together and make sure we get the facts. The District needs to get involved.
General Manager Winner stated I was invited to Ft Lyon’s December Board Meeting to talk about the Super Ditch. We had some individuals that aren’t ready for change. Ft Lyon is a great Ditch, 31% of the water isn’t owned in the valley, we need to keep the water in the valley for Las Animas, Bent County or it will be the next Crowley County.
General Manager Winner stated on January 23-25, 2008 will be the 50th Annual Colorado Water Congress Convention in Denver. Board Directors if you would like to go we need for you to pre-register.
Our Holiday Party will take place on December 14, 2007 at La Tronica in Pueblo with 55-60 indicating that they will attend.
PRESENTATIONS: None
PRESIDENT’S REPORT:
Chairman Singletary complimented the District Board and staff on a good job.
The District had a Water Law class on November 27, 2007 at OJC and that went well. The staff did a good job.
General Manager Winner stated there was a Town Hall meeting on December 11, 2007 and Conservation Program Manager Bill Hancock gave a presentation on the Super Ditch.
Chairman Singletary stated that lobbyist Greg Kolomitz and Steve Holdren will have several proposals.
Peter Nichols, attorney
Land Fallowing-Water Leasing Program
A meeting for this purpose will be held in January. Tony van Westrum, Esq., Denis Calahan, Esq., the corporate and tax attorneys and an antitrust attorney retained to help develop the Super Ditch Company, will assist the farmers in deciding on the optimal form of the Company. We are considering sending a draft of the articles of incorporation and bylaws out for farmer review before the meeting.
The CWCB staff has delayed the first round of applications until March 30, 2008 in order to address concerns with its draft grant
Counsel and staff have been working with other entities on a conceptual engineering study of pipeline to transport leased water from the Excelsior and Fort Lyon Ditch headgates to northeast El Paso County for delivery to the Pikes Peak Regional Water Authority (PPRWA) and other Denver Basin groundwater-dependant entities. PPRWA contracted with Boyle Engineering for the study, which should be completed by the end of the year.
HDR—final report is complete.
PSOP
General Manager Winner and Counsel continue to negotiate with Aurora over outstanding issues involving only Aurora and the District at the direction of, and under the supervision of, Senator Salazar. The next meeting is scheduled for December 18, 2007.
Conservation Easements
Counsel will need to update the conservation easement guide to reflect changes in federal tax law that expires December 31, 2007.
Water Court Litigation
Counsel does not recommend filing any statements of opposition this month.
Intervener Arkansas Native, LLC, an organization that appears to represent the publisher of the Pueblo Chieftain and Wally Stealey, recently filed a motion for summary judgment against applicant Aurora, arguing in part that Fry-Ark facilities cannot be used to effectuate any exchange to Aurora. Lower Arkansas Valley Water Conservancy District’s response brief is due December 26, 2007
Bureau of Reclamation –Aurora Proposed Fry-Ark Excess Capacity Contract
The City of Aurora has moved to intervene in the case, with the consent of the parties, which motion was approved by the Court.
Defendants’ answers to the complaint are due December 24th, unless they file for and are granted an extension, which we expect.
Judge Nottingham has scheduled a status conference with all counsel for January 4, 2008.
Lake Minnequa
Specifically, Counsel has drafted an IGA with Pueblo and the Pueblo Board of Water Works to provide freshening flows for the Lake. They have adopted the resolution, which the Board also needs to approve. Motion was made by Director Kennedy, seconded by Director Esquibel to adopt the IGA resolution, motion unanimously carried.
LEGAL REPORT:
Bart Mendenhall, attorney, stated on November 27, 2007 participated in the Seminar at Otero Junior College, which was produced by the District. It was well attended, and was very well done. I heard a number of comments from attendees who were pleased with the information provided.
Bill Hancock and I have been buried in conservation easements we are closing before the end of the year. As always, there is no end of problems cropping up which need to be solved.
On December 10, 2007, Bill and I attended the High line Canal Company meeting. A good part of the meeting was devoted to the Super Ditch. While most shareholders are keeping their options open, they asked good questions, and we were able to resolve some misconceptions that were floating around out there.
COMMITTEE REPORTS:
Personnel: Director Kennedy thanked the staff for their hard work. Director Esquibel added everyone goes over and beyond and is well appreciative.
Liaison: Director Kennedy stated that Lake Minnequa has brought some good credit and press to our Water District.
Legal: Director Esquibel stated that our attorney’s Bart, Peter and myself are Colorado Attorneys and not like BOR whose attorney is out of State.
DIRECTOR’S COMMUNITY REPORT:
Director Esquibel stated, “I have concerns about State Engineer proposal.” “I’m not an irrigator, but the state rules have nothing to do with common sense.” “It makes no sense to become more efficient and then be penalized for it.” Also, I wanted to bring up to the Board Directors we donate money for different studies, example; CSU, with students being involved maybe they could come to our board meetings and do presentations on what they have accomplished.
Director Whittaker stated, I agree with Director Esquibel on concerns with State Engineer proposal. From Pueblo to the state line, the farmers are particularly concerned. Colorado people think rules are way off.
Director Moore reported it was quiet in Crowley County. I don’t agree with the Division Engineer. But I think he threw out the worst possible deal, and we should wait and see how far he’s willing to go.
Director Gill reported in Bent County, “I’m concerned with the rules and I’m pretty sure everyone else is to. To get penalized for efficiency does not make sense.” “It frustrates me that the engineer and all of us cannot resolve this together.”
Director Mauch reported not much snow in the county. I also don’t agree with the State Engineer. “I don’t care if you irrigate out of a garden hose or a 10-inch pipe, no one has been shut off.” Using less water with sprinklers simply increases the amount for other users in a ditch system. “Until they can show a reduction at the headgate, there’s no reason for the rules.”
Director Kennedy stated, “I also agree with Director Esquibel with concerns about the State Engineer proposal.
Chairman Singletary reported it has been a good year and I think I’m the only one irrigating. The wheat has been planted.
PUBLIC COMMENT:
Chairman Singletary asked if there were any comments.
Professor Del Nimmo stated, he would make arrangements to get two students to come to January’s board meeting to do presentations.
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 Gill to adjourn the meeting. Motion unanimously carried. Meeting was adjourned at 11:30 A.M.