St. V ra in and Left Hand W ater Conservancy D istric t

M inu tes o f the Board Meeting Held at

D istric t Headquarters , Natura l Resources Bu ild ing

9595 Nelson Road; 1lkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBAstF loor; Longmont, CO 80501April 11,2011

I. ROUTINE ITEMS

A . ROLL CALL - AMY W ILL IAMS

B . CALL TO ORDER - PRES IDENT YANCHUNAS

President Dennis Yanchunas called the meeting to order at 1:00 pm. Board members attendingwere President Dennis Yanchunas, Vice President Glenn Patterson, Secretary John Zweck,Treasurer Harold Nelson, Directors Bill Haselbush, Doug Lyle, and Ronald Sutherland. Director'sRobert Brand and Michael Rademacher were absent from the meeting.

The following staff members were present: Executive Director Sean Cronin, Legal Counsel ScottHolwick, Engineer Mark McLean, and Administrative Assistant Amy Williams. Please see the very

bottom for additional guests in attendance.

C . AMENDMENTS OR ADD IT IONS TO THE AGENDA - PRES IDENT

YANCHUNAS

President Yanchunas asked for any amendments or additions to the agenda. There were notadditions to the agenda.

D . SVLHWCD 40 YEAR ANN IVERSARY PRESENTATION - MR . TODD

DOUGHERTY: "SOUTH PLATTE ROUNDTABLE OVERV IEW "

In celebration of the Districts 40 year anniversary, President Yanchunas asked Mr. Cronin tointroduce the speaker for this month. Mr. Cronin gave a briefhistory of the Districts participationin the S. Platte Roundtable process and then introduced Mr. Todd Dougherty with the ColoradoWater Conservation Board. Mr. Dougherty is the acting Section Chief for the CWCB, and spoke tothe Board about the roundtable process and the state water supply planning process. Mr.Dougherty passed out a fact sheet from the CWCB showing the recommendations the CWCB Boardhad agreed to in January of 2011.

Mr. Dougherty explained that with Colorado continuing to face water supply challenges, theStatewide Water Supply Initiative (SWSI) has been researching the state population forecasts.SWSI reported that it would be reasonable to project the population of Colorado would doublewithin the next 40 years from 5 million to 10 million with the majority of the population beinglocated on the Front Range. Current trends show as population increases there will be a largertransfer of water from irrigated agriculture. The questionthat was most pressing was how is thewater community going to provide for the future water demand? Among discussions within theRoundtables, Interbasin Compact Committee (IBCC), and CWCB, it was decided the status quo of"buy and dry" was not the direction to pursue, but instead a pursuit of a range of different solutions.A portfolio of solutions was recommended, and includes the development of new water supplies,agricultural transfers, conservation, and reuse.

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st.Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

The CWCBdeveloped SWSI with the 2010 mission statement vowing to help Colorado maintainadequate water supplies for its citizens, agriculture and environment and accomplishing thisthrough a mix of solutions, all of which will be pursued concurrently.

Mr. Dougherty presented a map dated 2002, a year when Colorado was experiencing one of itsworst droughts on record. It -was avery prominent subject inthe news and bills within thelegislature at the time appropriated state funds for research. The year of 2003 was the first year areal look at the Colorado water supply and demands and how theState was going to be able to meetthe demands in the future. In November of 2004 the study was complete. At that time within SWSIthere were roundtables that were basin oriented (S. Platte,Gunnison, Arkansas). In 2005 after thestudy was completed the Water for the 21st Century Act was created. This act set up the creation ofthe Inter Basin Compact Committee consisting of 9 differentbasin round tables with the 8 majorbasins arranged around the state and the ninth being the Denver metro area.

House Bill 1177 required the Roundtables to do four major tasks, to identify their present andfuture consumptive needs in municipal and agricultural areas, and the non consumptive needsbeing environment and recreational. The Roundtables have been tasked with researching thewater supply available within the basins and what projects and methods can be used to meet theirfuture needs. Most of the Roundtables have completed the needs assessments and are in theprocess of compiling their reports addressing the 4 major tasks and how they will be completed.These reports are to be complete by mid June and will make forecasts into the future through 2050.The Act has also created the !BCCin which 27 members each represent some segment of populationand water interests. The Governor appointed members with representation from industrial,environmental and agricultural areas. The act says the framework and policies to guidenegotiations between basin Roundtables include policies to ensure that individual compacts do notconflict with one another. Right now there have not been any compacts between basins, howeverwith the original intent of the act in mind the members are working towards this and trying todevelop the waters in the states. There has been cross basin dialogs, meetings, right now theGunnison and the Arkansas are working together to store pre compact waters in the event of acompact call and intend to use that to allow post compact water rights to continue for critical uses.The Act provided procedures for ratifying compacts so that they include a mandatory provision thatevery affected basin must approve the compact. The act also authorized procedures to ensure thatapproved contracts are legally binding and enforceable, and provides procedures for integrating ofinter basin processes with other water development processes.

The different entities (CWCB,!BCCand Roundtables) have been assigned the task of overseeing thewater supply reserve account program. Established 5 years ago this program started withappropriations for grants of approximately $10 million dollars. With the downturn in the economyand cuts to the States budget the available amounts have decreased however this last fiscal yearthey received $6 million dollars for appropriation. This grant money is available to all nine basins,each having an account as well as a statewide account available. Mr. Dougherty stated as anexample the S. Platte Basin currently has approximately $1.1 million approved for grants in its ownbasin and from the state account has had approximately $2.2 million approved for a total of $3.3million dollars of appropriation for that basin. To participate in this program an application needsto be submitted to the Roundtables making sure necessary criteria is met such as helping to furtherthe needs of the basin or providing various benefits to the state according to the criteria establishedfor that account. The Basins could possibly obtain grant money available for maintenance ofditches, as long as it's believed this would be beneficial for the basin. Mr. Dougherty has availableexamples of the State funds being provided for ditch or head gate improvements believing head

St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

gate reconstruction can benefit the stream greatly. The statewide account might also require thoseprojects that are geared towards broader benefits, such as helping ease the burden of an

endangered species issue or developing water storage for a community. Mr. Dougherty noted that

while this is all still an evolving process, Governor Hickenlooper has named IBCC Director John

Stulp as the water advisor to the Governor and asked for a state water plan in five years. While thedefinition of that plan hasn't been quite defined, it will bethe responsibility of all the waterinterests, members of the roundtables, IBCC and the Board tomeet the Governors request.After a brief question and answer session, President Yanchunas and the Board thanked Mr.Dougherty for his presentation.WVUTSRQPONMLKJIHGFEDCBA

I I . CO NSENT AG ENDA

A . APPRO VAL O F M INUTES

B . ACCO UNT ING AND F INANC IA L PO L IC IES AM ENDM ENT

C. PERSO NNEL G U IDANCE M ANUAL

President Yanchunas then asked the Board for removal of any consent agenda items that neededdiscussion. There were neither any comments nor items removed from the consent agenda and amotion to approve the consent agenda was made by Secretary Zweck, seconded by DirectorHaselbush and passed unanimously.

I I I . ACT IO N ITEM S

A . F INANC IA L REPO RT - ASSISTANT TREASURER AM Y W ILL IAM S

President Yanchunas then requested the presentation of theFinancial Report for the month ofMarch, 2011. Ms. Williams presented the Board with three reports that provided the final numbersfor the month.

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En terp r ise FundRevenue: $319.38Expense: $5,517.83

G enera l FundRevenue: $84,097.58

Expense: $21,390.16

W ater R igh ts Fund

Revenue: $12.10Expense: $1,740.69

A motion to approve the financial report was made by Secretary Zweck and seconded by TreasurerNelson. The motion passed unanimously.

B . PERSO NNEL CO M M ITTEE REPO RT O N EXECUT IVE D IRECTO RS

REV IEW - PRESIDENT YANCH UNAS

President Yanchunas then discussed the Personnel Committee meeting attended by SecretaryZweck, Director Lyle and President Yanchunas as well as Mr. Cronin and Ms. Williams on March 30,2011. The three Personnel Committee members were provided areview form for the evaluation ofthe Executive Director. An initial evaluation has been completed however the evaluation in its

entirety will be provided to the Board members at the May 9th District Board meeting. PresidentYanchunas then referred the Board to the Personnel GuidanceManual enclosed in their packets and

noted this had been updated by Mr. Cronin and reviewed with the Personnel Committee at themeeting on March 30, 2011. The Personnel Committee discussed several items within the manual

and suggested changes to be made. While the Personnel Guidance Manual has been approved bythe Personnel Committee, President Yanchunas requested the Board members review it as well andbring any comments or suggestions to the Personnel Committee.

6 ~St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

C.WVUTSRQPONMLKJIHGFEDCBA40UTSRQPONMLKJIHGFEDCBATH A N N I VERSARY RESO LUT IO N - PRESIDENT YANCH llNAS

President Yanchunas introduced a resolution prepared by Mr. Cronin, commemorating the 40th

Anniversary of the St. Vrain and Left Hand Water ConservancyDistrict. President Yanchunas readthe resolution in its entirety: Amotion to pass Resolution 2011-04, The Board OfDirectors of the St.Vrain and Left Hand Water Conservancy District commemorating the 40th Anniversary of the St.Vrain and Left Hand Water Conservancy District was made by Director Haselbush and seconded byDirector Lyle with the motion passing unanimously.

IV . D ISCUSSIO N ITEM S & REPO RTS

A . W ATER CO M M ISSIO NERS REPO RT - M R . M ATT RUSCH , DEPUTY R IVER

CO M M ISSIO NER

President Yanchunas then asked for the Water Commissionersreport. Matt Rusch attended themeeting in Ms. Shera Sumerford's absence. Mr. Rusch noted the call on the St. Vrain River is theRough and Ready Ditch, Admin. No. 8464, an 1873 call. The callon the main stem is the Bijou CanalBypass, the upper Platte and Beaver Canal, Admin. No. 14154,an 1888 call. The reservoirs are80.2% full. Mr. Rusch stated that the snow pack levels show the Upper Colorado at 124%, the S.Platte at 118%, and the St. Vrain at 112.3%. President Yanchunas thanked Mr. Rusch for his report.

B . LEG AL AND ENG INEER ING REPO RT - M R . SCO TT H O LW ICK & M R .

M ARK M CLEAN

Mr. McLean shared that according to the State, the forecastsfor the stream flow, runoffs this yearshould be from good to excellent calling for above average volumes in Colorado. Some selectedportions of the Yampa and Colorado may have the highest runoff volume since 1984. Projectionsfor Lake Granby has increased again to 151 % of average for inflow and the St. Vrain basin is in itssixth month in a row of above average precipitation. Mr. McLean stated we are moving into thetime of year when the stream flow forecasts will be the most meaningful. A snow survey shows thatthe St. Vrain Basin is at 152% of this same date last year. A brief discussion followed and PresidentYanchunas thanked Mr. McLean for his report.

1. RESUM E REV IEW

Mr. Holwick noted there is one application published in the February 2011 resume that involveswater rights in the St. Vrain basin.

A ) APPL ICAT IO N O F W ARD , CASE NO . llCW 32

The town of Ward seeks approval of a plan for augmentation forthe Ward Ditch and Pipeline. Thestructures are decreed for municipal use at a rate of 1.25 cubic feet per second from Crystal SpringNo.1 with an appropriation date of July 23, 1951. The structures serve 61 full-time homes/tapsand 15 part time homes/taps (with virtually no irrigation use). The town's build-out is for 81 full-time residences and 15 part-time residences. The total build-out requires approximately 12 acrefeet per year. The augmentation plan includes lawn and landscape irrigation for up to 350 squarefeet per home and a bottling operation of 152,000 gallons peryear for a total requirement of nearly15 acre feet per year. Annual consumptive use is estimated at2.75 acre feet per year. Ward isproposing that all augmentation occur during the summer irrigation season because access and

7St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

operation of high mountain reservoirs is difficult during the winter. Once decreed, it is likely thatWard would no longer need to be part of the District's augmentation plan. Mr. Holwick stated tothe Board that because of the possibility for injury to the other water rights in the basin, he wouldrecommend that the Board authorize filing a statement of opposition in this case. Mr. Holwickanticipates the City of Longmont would also file a statementof opposition as well as some otherDitch companies. After a brief discussion, a motion was madeto file a statement of opposition toApplication of Ward, Case No. llCW32 by Director Sutherlandand seconded by Director Lyle. Themotion passed unanimously.WVUTSRQPONMLKJIHGFEDCBA

2. D ISTR ICT AUG M ENTAT IO N PLAN

Mr. Holwick noted the District's annual report was filed on Tuesday, March 1st. The 30-daycomment period ended on March 31st. The three prospective applicants will beofficially enrolled inthe Plan (and the one exiting member officially terminated from the Plan) as soon as the State andDivision Engineers approve the request in writing.

3. CO FF INTO P RESERVO IR D IL IG ENCE APPL ICAT IO N

Mr. Holwick noted the District's application for a finding of reasonable diligence had been filed onFebruary 28th (Case No. llCW26). The application was published in the February resume. Theperiod within which statements of opposition must be filed expires on April 30, 2011. Mr. Holwicknoted he will update the St. Vrain and Left Hand Water Conservancy District Board of Directorsregarding the diligence application at the May meeting.

4. APPL ICAT IO N O F VARRA ET AL ., CASE NO . 03CW 306

Mr. Holwick stated Varra seeks to change the water rights associated with four shares of RuralDitch Company and approval of a plan for augmentation of certain gravel pits. This case was re-referred to the Water Court on February 25th and will be "at-issue" on April 4th. An initial statusconference call before the Judge is scheduled for April 14th, at which time a five-day trial will be set(likely for 2013). Mr. Holwick will update the District on this case at the May meeting.

5. APPL ICAT IO N O F L .G . EVER IST , CASE NO . 05CW 335

Mr. Holwick informed the Board of Directors that L.G. Everist seeks a conditional storage waterright for the Lohmann-French water storage reservoir in theamount of 2,000 acre feet locatedbetween Rural Ditch and St. Vrain Creek east of 1-25. On March15th, the Referee filed an Order toSet Status Conference. Because of the opposing parties' involvement in Consolidated Case Nos.02CW404 and 03CW442 (application of East Cherry Creek Valley Water & Sanitation District,United Water & Sanitation District and FRICO), L.G.Everist is seeking to extend the time by which toprovide a status update until June. Mr. Holwick verified that this is the Rural Ditch and not the LastChance Ditch per a question from one of the Board members. With no further questions orcomments on the cases Mr. Holwick moved on to the next item in the report.

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St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11. 2011

6. REQ UEST FO R ADO PT IO N O F A NA T lO NAL H ISTO R IC REG ISTER

M ULT IPLE PRO PERTY DO CUM ENTAT IO N FO RM ENT ITLED

" IRR IG AT IO N AND W ATER SUPPLY D ITCH ES AND CANALS IN

COLORADO,1787-1960". '.',lkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

Mr. Holwick stated that 'on' M~rch 15th, the State Histo~ic Preservation ciffic~ received numerous

comment letters from the water community '(including the Colorado Wate~ Congress, DARCA, the

Water Users Association of District No.6, the Lower South Platte Water Conservancy District)asking that the proposed Multiple Property Documentation Form be withdrawn. The CWC isconsidering legislation (HBl1-1289) that, if enacted, would require the State to provide notice toand obtain consent of every person having a property interest in the nominated structure.Additionally, the proposed legislation would also prohibit the State from proceeding with the

nomination ifany of the property interest owners object within 120 days of the notice. HBll-1289

was passed out of the House Agriculture, Livestock,& Natural Resources Committee by a 10-3 vote.The proposed State Historic Preservation hearing is set forJune 10, 2011. If the State HistoricPreservation Office moves forward with the hearing, even after multiple parties requested that the

item be removed from the docket, then Mr. Holwick will ask forvolunteers to testify against theproposed Multiple Property Documentation Form.

7. CDPH E D ISCH ARG E PERM ITS FO R PEST IC IDE USE

As discussed at the February and March Board meetings, the EPA requested an extension of theexisting stay to allow more time for pesticide operators to obtain permits for pesticide discharges

into U.S. waters. The stay request was recently granted providing the EPA until October 31, 2011 todetermine how best to move forward with a general pesticide permit. There is a bill in Congress toeliminate the need for a permit.

8. NUTR IENT W ATER Q UAL ITY STANDARDS

The Colorado Water Quality Control Commission has postponed the nutrient criteria rule-makinghearing originally set for June 13, 2011 until March, 2012, however Mr. Holwick does not feel thisaffects the Districts constituency.

9. LEG ISLAT IVE UPDATE

Mr. Holwick noted that in the interest of time and lack of legislative information there he wouldforgo the legislative update.

10. APPRO PR IAT IO N CASE PRO CEDURE

Mr. Holwick provided a handout for the Board members with a request for direction from the Boardof Directors. Provided in the handout was a policy dated 1997with 1986 objectives with the

criteria for appropriation cases. Mr. Holwick noted with changing water rights or an augmentationplan, the potential for injury is vastly affected. In order to ensure that senior water rights are notdisturbed in any matter these cases are generally litigatedwhich might produce even more by

products. Generally Mr. Holwick's firm does not get involved in diligence cases or newappropriations of water rights. An attorney within the firmhas been approached by a mutual Ditch

Company attempting to file on a very junior 2011 right claiming seep and runoff in their ditch. TheDitch Company is embroiled in a running dispute with a landowner who has been taking the water

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St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

before it gets to the ditch and storing it in a pond. If the Ditch Company files an application claimingwater rights to some seepage and tail water is this an application that the District would oppose?While Mr. Holwick is not able to advise the Board regarding this issue, he felt that PresidentYanchunas and Mr. Cronin might be able to speak further on this issue. After a brief discussionregarding the issue, it was the general consensus of the Board of the St. Vrain and Left Hand WaterConservancy District would prefer that the attorney's office not represent the mutual DitchCompany if they were to file on this junior right.

C. NORTHERN WATER REPORT - PRESIDENT YANCHUNAS

President Yanchunas then presented the Northern Water report. He noted Northern ColoradoWater Conservancy District has set the water quota at 80%.

D. MASTER DITCH RIDER COMMITTEE REPORT - PRESIDENTYANCHUNAS & SECRETARY ZWECK

President Yanchunas stated he would defer on the Master Ditch Rider Committee Report in theinterest of time.

E. SECTION 404 REGULATION OF IRRIGATION DITCHES - SEAN CRONIN

President Yanchunas then asked Mr. Cronin speak about the Section 404 Regulation. Mr. Croninreferred the Board members to an enclosure in their packets,and spoke briefly about thesummarization of an article regarding Corp of Engineers, Colorado Guidance and the exemptionthat applies to irrigation ditches. If there are any Board members interested a full copy could beprovided to them by the District office.

F. BOARD OF DIRECTORS PLANNING SESSION - PRESIDENT YANCHUNAS

President Yanchunas spoke regarding the above and suggested that he would appreciate commentsand feedback on the possibility of a Board Member joining himself and Mr. Cronin for lunchinformally. Vice President Patterson suggested having an informal gathering such as a retreat. Inthe interest of time, this issue was tabled for the time being.

G. EXECUTIVE DIRECTORS REPORT - SEAN CRONIN

1. WATER RENTAL STATUS2. APPOINTMENT TO AWRA-CO SECTION BOARD OF DIRECTORS3. SUTRON INSTALLATION AT LAKE 4

Mr. Cronin referred the Board members to the report in their packet and asked if there were anyquestions. None were asked.

H. ITEMS FROM THE BOARD PRESIDENT OR PUBLIC - PRESIDENTYANCHUNAS

President Yanchunas mentioned the Northern Colorado WaterConservancy District will be soonregistering for their summer tours of both the Western and Eastern Slope Water. There are two

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St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011

dates set for each tour and President Yanchunas will be participating in those tours. Mr. Croninrecommended sending the Administrative Assistant to two ofthese tours and President Yanchunaswill provide a contact address for the registration.WVUTSRQPONMLKJIHGFEDCBA

V . EXECUT IVE SESSIO N

A ; BEAVER PARK RESERVO IR NEG O T IAT IO NS

President Yanchunas announced that an Executive Session was being called pursuant to Citation24-6-402 (4a) c.R.S. to discuss the Beaver Park Reservoir Negotiations. Following roll call of theDirectors, the Executive Session was held:

A motion to adjourn the Executive Session was made by Secretary Zweck and seconded by DirectorSutherland, passing unanimously. Following the ExecutiveSession, the regular Board Meeting wasreconvened with a motion by Director Sutherland and seconded by Secretary Zweck to direct Mr.Cronin to proceed with preliminary research as to how to pursue negotiations. The motion passedunanimously.

V I. AD JO URNM ENT

With no further business to come before the St. Vrain and LeftHand Water Conservancy DistrictBoard of Directors, the motion to adjourn was made by Director Haselbush and seconded by VicePresident Patterson. The meeting was adjourned at 3:20 p.m.

Respectfully Submitted,

Add itiona l A ttendees:

Matt RuschJ ill Baty

11~St. Vrain and Left Hand Water Conservancy District - Board Meeting Packet - April 11, 2011