These written minutes represent the general discussion of the DWCD Board of
Directors, DWCD staff, and participants at the DWCD board meeting, and they
include a record of any and all board actions taken at the meeting. The written
minutes are not intended to provide a word-for-word account of the board
meetings. Nor are they a direct quote of any statements offered at board
meetings. All DWCD board meetings are recorded on audio tape.
DOLORES WATER CONSERVANCY DISTRICT
________________________________________
MINUTES
Regular Meeting
August 10, 2006
_________________________________________
CALL TO ORDER Jim Fisher, Secretary-Treasurer, called the meeting to order at 7:00
P.M.
ROLL CALL Jim Fisher, Secretary-Treasurer
Larry Deremo, Director
Steve Trudeau, Director
Fran Hartle, Director
Bruce Smart, Director
Kenny Smith, General Manager
Bruce Harrison, Maintenance Supervisor
Lisa Jordan, Office Administrator
Vern Harrell, Bureau of Reclamation
INTRODUCTION OF GUESTS
Tony Tanner, FS Irrigator
ANNOUNCEMENT
Larry Deremo has been re-appointed to the DWCD Board for a term of four years ending on
July 31, 2010. Larry was sworn in by the Judge.
AUDIENCE
APPROVAL OF THE MINUTES
MINUTES There were no corrections to the minutes.
MOTION: TO APPROVE THE MINUTES AS SUBMITTED FOR
REGULAR MEETING OF JULY 13, 2006.
MOTION: STEVE TRUDEAU
SECOND: BRUCE SMART
MOTION CARRIED UNANIMOUSLY
FINANCIAL STATEMENTS
MOTION: TO APPROVE THE JULY 2006 FINANCIAL STATEMENTS AND
APPROVE THE STATEMENT OF PAYABLES AS PRESENTED.
ADMIN: AP/CHECK #8685-8701
$411,826.74
MOTION: LARRY DEREMO
SECOND: STEVE TRUDEAU
MOTION CARRIED UNANIMOUSLY
COMMENDATION
Kenny read a letter from Jim Siscoe, MVIC General Manager, commending Bruce for his
efforts with regard to immediate maintenance issues. Kenny asked that Bruce pass the
commendation on to the entire maintenance crew.
AGENCY REPORTS
BOR REPORT
Vern reported that 1) The April –July inflow was 149,624 AF; this is 47% of normal. 2) The
allocation template was meant to be used as a tool in a shortage year, however it shows
MVIC’s non-project water supply. Their project water is based on how much non-project
water is available to them. The template will most likely be attached to operating reports
from now on being used as a tool to calculated water for MVIC. 3) Vern stated that he has
had a lot of landowner subdivision issues. Vern stated that some of the Durango staff have
been working full time on these issues. That landowner subdivision issues are going to be a
future issue for DWCD as well. 4) Karl Stock, from Reclamation in Denver, was here from
the Managing for Excellence (“M4E”) team. He was trying to get a feel from the District on
whether the 10% of the O&M Budget or more than $100,000 would fit the District’s definition
of a major repair. He also gave a brief overview of what team 19 was doing. Vern
suggested that the District have someone come in and perform a review of equipment and
develop a 5, 10 & 20-year plan for anticipated repairs and replacement of equipment. Jim
stated that he agrees that the system is getting older and items will need to be replaced.
The question is what amount of money is enough to have in the reserve funds if such an
occasion should arise. Vern stated that M4E team 25 would like to meet with this District on
financial accounting for all infrastructure. A meeting is scheduled for August 29, 2006 with
the Finance Department with regard to this issue. 5) With regard to the Ute Payment; Carol
DeAngelis wrote a briefing paper that is now at the Assistant to the Secretary of the Interior’s
office in Washington D.C. Vern stated that there will be a solution at that level. Vern stated
that DWCD will be paid. The intent was never for DWCD to carry this monetary burden.
Kenny stated that he spoke with Darryl Beckman and there is a conference call set up for
Thursday, August 17 at 1:00 p.m. with Rick Gold, Bill Rinne and Mark Limbaugh. Vern stated
that last May the Utes and Reclamation reached a pay plan agreement with Chairman
Whiteskunk. However, there is now a new Chairman and he has new views on this matter.
DWR REPORT
There was no report.
T/H COMMITTEE REPORT
Fiber Optics – Bruce reported that fiber installation by BWR has begun.
Construction is expected to last into early winter
The next T/H Meeting is Wednesday, August 23, 2006 at 2:30 p.m. at the DWCD,
Cortez Office.
WATER REPORT (KENNY)
Kenny stated that 1) Water sales were 33,333.3 AF or 13.98 inches per allocated acre. This
is 72.5% of projected sales based on the 2006 Budget. Demand has decreased over the
past 10 days due to rains and a considerable amount of hay on the ground.
2) The lake elevation is down 246 AF.
LEGAL REPORT
Janice was not in attendance at the meeting however, she sent a written report
covering the following items:
Upstream Issues
95CW104 Decree Amendments – A second Amendment to the decree was filed on
January 24, 2006, for nine properties and for all the properties within the Town of Rico.
99CW69 Downstream Augmentation Plan – 03CW112 (Ritter/Simon) and 04CW62
(Hartman Draw-New Rights for Totten Reservoir): Responded to the State’s proposed
Decree changes in the three cases. A phone conference for August 17 with the AG’s office
has been scheduled.
05CW44 – Janice filed an application for a new Upstream Exchange/Augmentation
Plan on August 31, 2005. Both the CWCB and Jim Felt filed Statements of Opposition.
Jim’s was filed for Gordon and Jeanne Kuhlman, on behalf of themselves and other
upstream users. Janice hopes that resolution of issues with Mr. Felt in the 96CW49
Amendment will resolve this case. Janice still needs to address CWCB. The proposed plan
might not always adequately replace the depletions by exchange on Fish Creek and the East
Dolores. Janice has revised the draft Decree to comply with suggested changes from the
CDWR.
McPhee Fishery Release over 78 cfs – David Graf with the Division of Wildlife is
very interested in how the District can protect the McPhee fishery release over 78 cfs. Dan
Merriman has suggested a small group meet with the new head of the State Attorney
General’s office to discuss legal options.
DISTRICT STATEMENTS OF OPPOSITION
03CW84 (American No. One) – Although the case was dismissed earlier because
the Applicant failed to attend the August 2005 Status Conference and did not pay Court fees
by October 25, the Applicant now has an attorney and who has been filing Status Reports on
the matter. A status Conference was held at the end of July.
06CW01 (Kenneth and Linda Davies) – The Davies filed an Application for a
Change of Water Right for the Burton Ditch and for storage.
06CW04 (Guy and Ruth Drew) – The Drews filed an application for a Change of
Water Right for Schalles Ditch Alternate POD in Alkali Canyon which has been used to
irrigate 110 acres.
USFS AND BLM MANAGEMENT PLANS (PLANS) REVISIONS
Ditch Bill Update –At the May Roundtable, it was learned that the USFS has
performed field work for about 40 Ditch Bill applications and will issue 20 easements. The
other 20 appear more difficult to the USFS. The SW District has agreed to provide limited
help to Ditch Bill applicants regarding ownership of water rights and other technical
information.
Wild Scenic (“W&S”) Rivers Issue – The Roundtable received information from
Mark Stiles reducing the number of streams eligible for WSR designation from 56 to 42.
Because the USFS still wishes to proceed with a suitability analysis our Senators and the US
Congressional representatives from our area will be sending a letter to Mark Stiles to request
a written description of the suitability process. The first meeting to discuss the process will be
held on August 22, 2006, after the SW Board budget planning session. Steve Fearn and
John Taylor will be present, together with Mark Stiles, Ann Brown (from Senator Ken
Salazar’s office), Chuck Wanner, Janice Sheftel and Barry Spear.
Kenny stated that this is where the comments from the DRD will surface.
COLORADO RIVER
Janice included as an attachment the SW District’s letter to our Congressional
delegation regarding the Navajo Settlement and the HD.
RICD ISSUES
Durango RICD – The City of Durango filed an application for a RICD water right on
the Animas River on February 28, 2006. Durango’s application did not include any language
to protect existing non-decreed upstream uses or to allow a minimum 7,000 AF carve out for
future upstream development. The application seeks from 185 cfs (winter) to 1,400 cfs (two
weeks in June), for 13 time-periods year-round, for a 1,183-foot reach at Smelter Rapids for
five structures, or dams including the winter. No other decreed RICD is year-round. The
City seeks daily RICD use from 8 am to 8 pm, except when competitive events occur, then
from 6 am to midnight. Use is for boating, kayaking, tubing and other general recreational
activities. The SW District will discuss settlement concepts with the City on August 17, 2006.
ALP Cases
Due Diligence Case – The Court has not yet issued a ruling.
Colorado Ute Settlement Act Amendments of 2000 – The passage of the
Colorado Ute Settlement Act Amendments of 2000, required the filing by the US to amend,
for the two Southern Ute Indian Tribe cases, the Consent Decrees on the Animas and La
Plata Rivers and to change these Consent Decrees on behalf of the Ute Mountain Ute Tribe.
Trial for these four cases began on August 7, 2006.
Black Canyon Water Rights – A consortium of environmental groups led by Colorado
Trout Unlimited (“TU”), sued the federal government for allegedly claiming too little water for
the Black Canyon of the Gunnison National Park. A hearing was held in the case the last
week in June in federal court in Denver. The result of the hearing may have implications
unrelated to water flows just in the Park. The dispute over how much water the National
Park Service should have claimed from the Gunnison River in the Park, especially for spring
peak flows, may also determine how closely Colorado can work with the federal government
to cooperatively manage a river and whether federal ruling or state water law take
precedence when Colorado’s water crosses federal land.
Roadless Debate – In Colorado, which claims about 4.4 million acres of roadless areas in
national forests, a statewide task force, chaired by Russell George, is crafting a
recommendation to Gov. Owens and the federal government about how to manage land
valued for both its natural state and its resource and recreation potential. Roadless
protections can apply to land that may or may not be under consideration for wilderness
designation. The task force made recommendation available in late July and will receive
comments on that plan until August 15. A final plan should be to Gov. Owens by September
15.
OTHER
CONSULTING ENGINEER REPORT
Steve was not in attendance at the meeting however, Kenny reported on:
SB179 – Kenny stated that the Southwest Basin Roundtable will be meeting on
September 13 at the DWCD office. Jim stated that the State of Colorado, through SB-179,
has appropriated money for four years and each District will be allowed to submit a proposal
for projects. Jim stated that if the local Basin Roundtable accepts a proposal this will go to
the State level. Primarily they are looking at feasibility studies. This money is mostly for
non-structural projects and those projects will likely see first priority. Jim stated that the
Board needs to come up with a list of what they see as the most viable projects. It was
stated that this money would be “seed” money for start up projects. Jim stated that this is for
any water enhancement projects. Large projects will be accepted twice a year and small
projects will be accepted continually. The best way for ideas to get to the Roundtable is to
submit them to Kenny for Jim to present to the Roundtable committee.
RESOLUTIONS
Kenny presented the resolutions with regard to restructuring the MBIA Annuity. Kenny
stated that when he had the numbers at the last meeting, the Board directed him to move
forward on restructuring the annuity. Kenny proceeded with this task and the result was that
a little over $2.2 million would be reinvested to come due in December, 2009. The District
earned about $693,000 from the annuity from December of 2002. Kenny stated that the
resolution gives the District the authority to reinvest those funds.
MOTION: TO ADOPT RESOLUTION 06-02 “RESOLUTION APPROVING THESE
AMENDMENTS TO LOAN CONTRACTS C150058A AND C150193 TO
ADJUST THE SECURITY FOR LOANS FROM THE COLORADO WATER
CONSERVATION BOARD TO THE DOLORES WATER CONSERVANCY
DISTRICT, ACTING BY AND THROUGH THE DOLORES WATER
ACTIVITY ENTERPRISE FOR A PORTION OF THE IRRIGATION
COMPONENT OF THE DISTRICT’S WETPACK PROJECT” WITH THE
OPTION TO MODIFY WITH MINOR CHANGES.
MOTION: STEVE TRUDEAU
SECOND: LARRY DEREMO
MOTION CARRIED UNANIMOUSLY
OTHER ISSUES/BUSINESS/REPORTS
Recessed meeting at 8:13 p.m. to convene the Water Activity Enterprise.
Reconvene the Dolores Water Conservancy District meeting at 8:51 p.m.
GENERAL MANAGER REPORT
MBIA Annuity - The restructuring of the Amended Annuity was completed on August
4, 2006 with considerable input from Charlie Langhoff, Davidson Fixed Income Management,
Janice Sheftel and Colorado Water Conservation Board staff. The principal amount invested
in the 30 year Annuity is $2,077,914.16 and this will provide annual debt service of
$137,351.44 through December 1, 2035. The rate that was obtained is 5.3298% which is
slightly less than the first quote reported at the July Board meeting. The drop reflects a
softening in these markets over the past few weeks. The remaining “Excess Fund” balance
is $2,283,232.62 and will return 5.09% with a maturity date of December 1, 2009. This rate
also declined by 0.25% due to volatile market conditions. Under the conditions of this
agreement, a restructuring fee of $25,000 was paid to INC for their professional services.
The interest earned on the original investment of $3,692,614.50 with an origination date of
December 5, 2002 has been $693,532.28 thru August 3, 2006. Interest that will be earned
on the “Excess Fund” will be placed in the “Future Projects Reserve Fund” semi-annually
(June 1st and December 1st beginning in 2006). This interest will be approximately
$116,216.54 per year, providing additional resources as the Dolores Water Conservancy
District begins to explore opportunities for future development of its water resources.
Water Issues
Water Development Opportunities – After attending the Gunnison Basin
Roundtable Monday, August 7, it became more apparent that this process has evolved over
the past few years through the Statewide Water Supply Initiative. This “Initiative” from the
2003 Colorado General Assembly authorized the Colorado Water Conservation Board to
investigate a basin by basin approach of existing and future water needs. Included in the
Board packet is a copy of “Section 8” which identifies Projects and processes for the Dolores
/ San Juan / San Miguel Basins in southwest Colorado. These options would provide the
District a good foundation to begin their discussions for proposals for Senate Bill 179. The
local roundtable has sent out the first request for these projects with a submission date of
September 8, 2006.
WETPACK Selenium Data – The U.S. Department of Interior, Fish and Wildlife
Service has submitted two years of baseline data as requested by the Bureau of
Reclamation on the proposed irrigated lands in the Cahone, McElmo Creek and Yellow
Jacket areas. Rick Krueger and Barb Osmundson, Fish and Wildlife Service employees,
conducted this baseline sampling by collecting water, sediment, invertebrates and fish where
available. A copy of the letter was included in the Board packet with the full report available.
The letter indicates that the District will need to collect two years of data similar to the 2004-
2005 sampling two years after the majority of newly irrigated lands are in production.
Building Lease with Division of Water Resources – The District received all completed
lease agreements from the State of Colorado, Department of Natural Resources for the
Division of Water Resources to begin to occupy the east wing officially on August 1, 2006.
Payment from Ute Mountain Ute Tribe – Kenny discussed the payment issue with Darryl
Beckmann with the Bureau of Reclamation on August 10th and he and Carol DeAngelis will
participate in a phone conference on Thursday, August 17th at 1:00 p.m. with Rick Gold, Bill
Rinne, Commissioner of the Bureau of Reclamation and Mark Limbaugh, Assistant Secretary
of Reclamation. The focus of this call will be to establish a position of the past debts and
future obligations of the Ute Mountain Ute Tribe. Darryl will contact Kenny after the call to
provide details and assured Kenny that it would be no later than Friday, August 18, 2006.
Dove Creek Taps – There are some legal issues with these taps that need to be addressed.
The taps are not being picked up at closing. Kenny is in the process of contacting Janice
with regard to these issues.
Upcoming Meetings
Southwest Basin Round Table (1177) – September 13th – DWCD office
T/H meeting – August 23rd
MVIC Meeting – September 12th
DWCD Board meeting – September 14th
OTHER BUSINESS
It was asked if the McClellan property issue was resolved. Kenny the appropriate documents
were completed and given to Mr. McClellan’s attorney and there has not been a closing, to
our knowledge, to date.
ADJOURNMENT Meeting adjourned 9:03 p.m.
James C. Fisher, Secretary-Treasurer Donald W. Schwindt, President
These written minutes represent the general discussion of the DWCD Board of
Directors, DWCD staff, and participants at the DWCD board meeting, and they
include a record of any and all board actions taken at the meeting. The written
minutes are not intended to provide a word-for-word account of the board
meetings. Nor are they a direct quote of any statements offered at board
meetings. All DWCD board meetings are recorded on audio tape.
DOLORES WATER CONSERVANCY DISTRICT
WATER ACTIVITY ENTERPRISE
________________________________________
MINUTES
Regular Meeting
August 10, 2006
_________________________________________
CALL TO ORDER Jim Fisher, Secretary-Treasurer, called the meeting to order at 8:18
P.M.
ROLL CALL Jim Fisher, Secretary-Treasurer
Larry Deremo, Director
Steve Trudeau, Director
Fran Hartle, Director
Bruce Smart, Director
Kenny Smith, General Manager
Bruce Harrison, Maintenance Supervisor
Lisa Jordan, Office Administrator
Vern Harrell, Bureau of Reclamation
AUDIENCE
Tony Tanner, FS Irrigator
MINUTES There were no corrections to the minutes.
MOTION: TO APPROVE THE MINUTES REGULAR MEETING JULY 13,
2006. AS PRESENTED
MOTION: STEVE TRUDEAU
SECOND: LARRY DEREMO
MOTION CARRIED UNANIMOUSLY.
FINANCIAL
STMTS
MOTION: TO APPROVE THE JULY 2006 FINANCIAL STATEMENTS AND
APPROVE THE STATEMENT OF PAYABLES AS PRESENTED.
O&M: AP/CHECK #21717-21812 & PR/CHECK #114307-114356
$300,646.17
MOTION: FRAN HARTLE
SECOND: STEVE TRUDEAU
MOTION CARRIED UNANIMOUSLY.
MBIA ANNUITY REPORT
This topic was discussed in the Resolutions portion of the Regular Meeting.
MOTION: TO ADOPT RESOLUTION 06-01-E “RESOLUTION APPROVING THESE
AMENDMENTS TO LOAN CONTRACTS C150058A AND C150193 TO
ADJUST THE SECURITY FOR LOANS FROM THE COLORADO WATER
CONSERVATION BOARD TO THE DOLORES WATER CONSERVANCY
DISTRICT, ACTING BY AND THROUGH THE DOLORES WATER
CONSERVANCY DISTRICT WATER ACTIVITY ENTERPRISE, FOR A
PORTION OF THE IRRIGATION COMPONENT OF THE DISTRICT’S
WETPACK PROJECT, WHICH INCLUDES CONSTRUCTION OF WATER
SUPPLY INFRASTRUCTURE” WITH THE OPTION TO MODIFY WITH
MINOR CHANGES.
MOTION: LARRY DEREMO
SECOND: STEVE TRUDEAU
MOTION CARRIES UNANIMOUSLY
WATER SUPPLY RESERVE ACCOUNT (SB 06-179)
Discussion of Potential Projects – This topic was discussed during Consulting
Engineers report portion of the Regular Meeting.
O&M REPORT
CURRENT PROJECTS
DOVE CREEK LAWN & GARDEN
Bruce stated that 1) Staff has completed piping fabrication for the pumping plant. 2)
Approximately 86 taps have been installed in the north system. 3) Construction has started
on the reservoir fence.
Discussion:
It was asked if a decision has been made to deal with the 8 taps outside the city
limits. Bruce H. stated that they would likely bore the road to get service to those people. It
was suggested that Kenny send a letter to these tap holders with a project update. Kenny
will obtain estimated costs for those tap holders and let them know their installation priority
within the project.
Towaoc Powerplant – The Towaoc Powerplant is not currently running as the flows
are too low.
McPhee Dam – Staff is continuing work to improve the drainage and the roads at the
Dam.
Pothole Machine – The pothole machine has been a tremendous time saver at
Dove Creek and has also been utilized on the Towaoc Highline fiber project.
STATUS OF SYSTEM OPERATIONS
Bruce reported that 1) planned maintenance is being completed on all facilities. Staff
has been monitoring oils in the motors and will be changing oils this winter. 2) All of the
pumping plants are running 3) Frank Green has continued with the application of weed
spray, including completion of the last magnicide treatment for the year.
ADJOURNMENT Dolores Water Conservancy District Water Activity Enterprise Board
meeting adjourned at 8:51 p.m.
____________________ _______________________________
James C. Fisher, Secretary Donald W. Schwindt, President