S t. V r a in a n d L e ft H a n d W a te r C o n se r v a n c y D is tr ic t

M in u te s o f th e B o a r d , M e e tin g h e ld a t

9 5 9 5 N e lso n R o a d , F a ir g r o u n d s P ic n ic a r e a , L o n g m o n t, C O 8 0 5 0 1

A u g u st 1 2 , 2 0 1 3

I . R O U T IN EIT E M S

A . R o ll C a ll- Terry LancehgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

Board members present: President Dennis Yanchunas, Vice President Glenn Patterson, Treasurer

Michael Rademacher and Director Ron Sutherland. At this time the District 3 Director seat isvacant.

Staff members and Consultants present: Executive DirectorSean Cronin, Administrative Assistant

Terry Lance, District Legal Counsel Scott Holwick and District Engineer Consultant Mark McLean.

B . C a ll to O r d e r - President Yanchunas

President Yanchunas called the meeting to order at 1:00 pm.

C . A m e n d m e n ts o r A d d itio n s to th e A g e n d a - President Yanchunas

President Yanchunas noted a change to the Agenda; Item 4E (Lake No.4 Update) will be moved to

the top of the list.

II . C O N S E N TA G E N D A

A . M o tio n : A p p r o v a l o f I te m s A -D o n th e C o n se n t A g e n d a

President Yanchunas reviewed Consent Agenda Items (A-D) with the Board. These Items included:

(A) Approval of Minutes, (B) Appointment of Sean Cronin as 2014 Budget Officer, (C) Appointment

of Terry Lance as Assistant Treasurer& Secretary, and (D) General Fund Line Item Transfer. A

motion to approve the Consent Agenda was made by Treasurer Rademacher and seconded by Vice

President Patterson. The motion passed unanimously.

III . A C T IO NIT E M S

A . F in a n c ia l R e p o r t - Assistant Treasurer - Terry Lance

Ms. Lance presented the financial report to the Board providing details of the District's bank

accounts and the more significant revenue and expenses.

G e n e r a l F u n d

Revenue:

Expenses:

$111,035.73

$39,340.70

E n te r p r ise F u n d

Revenue:

Expenses:

$20,018.34

$13,516.75

IV. DISCUSSION ITEMS

A. Engineering Report -Mr. Mark McLean

Mr. McLean introduced Rhett Hines, a civil engineer from Deere and Ault Consultants, and informed

the Board they would both be presenting the engineering report and providing an update on Lake

No.4. Mr. McLean reported that with the installment of the stage measurement recorder on the

outlet structure, they now have communications again and a few days worth of data. Mr. McLean

stated that when starting to look at the mass balance on Lake No.4, they discovered a leakage at the

inlet structure.

Mr. Hines handed out an aerial photo of the site and describedthe various structures and areas of

possible leakage. Mr. McLean stated it's possible that the leakage of the inlet structure is similar to

the flow at the outlet. If this is the case, the District is in regular reservoir operations that state the

measurements of your inflows and your outflows add up to yourmass balance. A brief discussion

ensued on where the leakage might be coming from, possible ways to measure the leakage, and

ways to correct the situation.

Mr. McLean suggested the Board allow Deere& Ault time to collect additional data to assess the

mass balance with some better knowledge before incurring any significant costs to the District.

Based on Mr. Mcl.ean's assessment, the Board agreed more data is required to make an informed

decision.

B. Legal Report -Mr. Scott Holwick

1. APPLICATION FOR A SIMPLIFIED CHANGE IN POINT OF DIVERSION. Mr. Holwick stated

his firm has been asked to represent an applicant seeking a simplified change in point of

diversion under the new statute and would provide the Board with an overview of the

application and the statute at the September Board meeting.

2. LAKE NO.4 DILIGENCE APPLICATION, CASE NO. 12CW91. Mr. Holwick gave an update to

the Board on the status of settlement with the sole opposer, the CWCB.

3. DISTRICT AUGMENTATION PLAN, CASE NO. 02CW334. Mr. Holwick stated that as part of

the decree approving its augmentation plan, the District also obtained several conditional

appropriative rights for exchange. In order to maintain those conditional water rights, the

District will need to file an application to show diligence for these water rights on or before

December 31, 2013. Mr. Holwick, Mark McLean and Sean Cronin will meet to discuss the

status of these rights in August and will report back to the Board at the September meeting.

4. APPLICATION OF TOWN OF WARD, CASE NO. 11CW32. Mr. Holwick shared that the

Town seeks approval of a plan for augmentation for the Ward Ditch and Pipeline. The Court

set a 5-day trial to commence on November 30, 2015. At the July10th status conference call,

the Town's attorney indicated that the State was reviewing the proposed administration

and that a proposed decree and preliminary engineering was forthcoming.

5. APPLICATION OF LONGMONT, CASE NO. 11CW183. Mr. Holwick stated that Boulder

County originally sought a finding of reasonable diligenceand to make a portion of its

conditional water storage right (Boulder County Fairgrounds Reservoir) absolute in the

amount of 39.67 AF out of 54 AF for recreational and irrigation uses., claiming storage in

priority during the 2011 water year. On July 17th,the Court granted Longmont's motion tosubstitute itself as Applicant in place of Boulder County upon sale of the conditional waterrights to the Boulder County Fairground reservoir.ZYXWVUTSRQPONMLKJIHGFEDCBA

6 . A P P L IC A T IO N O F B O U L D E R C O U N T Y , C A S E N O . 1 1 C W 1 8 4 . Mr. Holwick noted thatpursuant to Board direction at the June meeting, Counsel executed a stipulation withApplicant on June 26thand the Referee entered his ruling on August 2nd.

7 . A P P L IC A T IO N O F K R E IT M A N , C A S E N O . 1 0 C W 2 8 4 . Mr. Holwick stated the applicantseeks to make a conditional water right absolute, or in the alternative, for a finding ofreasonable diligence for Jorgensen Pond No. 1. On April 18th, the Referee entered an Orderto Show Cause, giving the Applicant until May 24, 2013 to demonstrate why this applicationshould not be dismissed for failure to diligently prosecuteit. Applicant asked for andreceived an extension of up to and including June 24th to fileits response. Applicant did notfile a response and the Referee dismissed the application (and the water right) on July 8th.

8 . R E S U M E R E V IE W . Mr. Holwick said there were no applications of interest within DistrictNo.5 in the June resume.

9 . U N L IC E N S E D D IT C H C R O S S IN G S . Mr. Holwick updated the Board on recent mutual ditchcompany actions to stop unlicensed ditch crossings.

1 0 . F L E X W A T E R M A R K E T F IN A L C O M P L E T IO N R E P O R T . Mr. Holwick stated on July 3rd,thefinal report was circulated. The report discusses conceptsthat emerged from multiplemeetings with water users, attorneys and engineers representing M&I, conservation andagricultural sectors, and includes the template contractsand water court decree terms andconditions that were produced as a result of the meetings. Additionally, results ofdemonstration project analyses and data gathered at the FLEXWater Market Summit heldin February are also included in the report. The report and other supporting informationwill be available in the near future on the CWCBwebsite in theAlternative AgriculturalWater Transfer Methods Grant section.

1 1 . H B 1 2 7 8 - L A S A L L E /G IL C R E S T G R O U N D W A T E R IN V E S T IG A T IO N P R O J E C T U P D A T E .

On July 9th,Mr. Holwick attended a meeting discussing an update of investigation results.

1 2 . S O U T H P L A T T E F O R U M . The South Platte Forum is set for October 23-24 in Longmont.Mr. Holwick anticipates that DARCAwill hold a concurrent workshop in the afternoon onOctober 24th relating to ditch easements and licenses for crossings with a specific emphasison oil and gas crossings.

C. W a te r C o m m iss io n e r R e p o r t - Ms. Shera Sumerford

Ms. Sumerford reported the call on the Main Stem is Fort Morgan Bypass to Sterling No.1, datedOctober 18, 1882, administrative number 11979. She reported the call on the St. Vrain is OligarchyBypass to the South Platte, dated June 1, 1866, administrative number 5996. Ms. Sumerford notedthat as of 8 a.m. this morning, there was 521Iz cfs. at the Lyons's Gauge. She stated reservoirs are at77.8% full as of July.

The Commissioner stated she is working with the Left hand Ditch Company and reports operationsare working well. She toured Lake Fitch and Raynor Ditch and reports no issues and will next visit

Holland Ditch. Ms. Sumerford stated she is communicating with Water Commissioner's Bob Carlson

(District 6) and Bill Schneider (District 2) about issues with Boulder Creek.

President Yanchunas adjourned the meeting at 2:15 to go inside due to inclement weather.

Meeting reconvened at 2:30.

D. Executive Director Recognition -Mr. Glenn Patterson

Vice President Patterson, speaking on behalf of the Board, recognized Mr. Cronin's recent

achievements as Executive Director of St. Vrain and Left Hand Water Conservancy District. He

stated that Mr. Cronin has improved the District's visibility in the water community and is an

excellent water resource for the public. Vice President Patterson stated Mr. Cronin has built a

reputation as someone who has great water expertise in the water industry and has become an

expert resource for the public. Vice President Patterson shared some of Mr. Cronin's recent

accomplishments that include being selected as Chair of theSouth Platte Basin Roundtable.

President Yanchunas also praised Mr. Cronin for his outstanding service and dedication to the

District.

E. Augmentation Program Rules and Guidance -Mr. Sean Cronin

Mr. Cronin reviewed the Application Rules and Guidance for participation in the District's

Augmentation Program. He then added that applicants who arerequesting augmentation water for

a new well or pump that has been installed and/or registered after 2007 are required to pay an

additional capital investment fee.

The Executive Director explained that earlier this year, the District received an application, along

with the required fee, for acceptance into the District Augmentation Program. The application was

for augmentation water to offset depletions caused by two new wells that will serve a new nine lot

residential subdivision.

The Executive Director suggested the Board consider one of the following three options:

Option 1: Accept the application - future discussion on capital investment fee

Option 2: Reject the application - keep the rules language tofurther preserve options

Option 3: Reject the application - amend the language to prohibit providing for new depletions

After a lengthy discussion, Mr. Cronin suggested the District refund the applicant fee and hold onto

the application until we know what the District's water supply will be. The Board was in agreement

with Mr. Cronin and stated that further discussions are needed to explore capital investment fees,

and the objective of the District's Augmentation Program.

F. Legal Expenses -Mr. Sean Cronin

Mr. Cronin explained that as of AugustI, $9,184 or 77% of the Legal Budget has been spent. TheAugust Consent Agenda includes an increase of $6,000 bringing the new budget up to $18,000;however, the legal fees are still projected to exceed the original budget. Mr. Cronin explained thatalthough Legal expenses are a necessary component of a fullyfunctioning organization, there areways to minimize legal expenses. The Executive Director presented the following 3 options to theBoard:

Status Quo - continue to rely on the Executive Director to work closely with Legal Counsel andidentify ways to reduce time. For example, moving legal report to the beginning of the agenda, sothat attorney can leave shortly thereafter and not sit through the entire meeting.

Gradual Reduction - identify a semi-regular schedule for Legal Counsel to attend Board meetings.This may be bi-monthly, or quarterly, or other.

Extreme Reduction - assume Legal Counsel will not be attending meetings, unless explicitly invitedby the Executive Director and/or President.

After a brief discussion, the Board elected to take a blendedapproach in using the options of StatusQuo and Gradual Reduction.

G. Filling the East Slope Municipal Supply Gap -Mr. Sean Cronin

Mr. Cronin shared that on July 24, members of the South Platte, Arkansas and Metro Roundtablesmet to discuss the details of recommendations to fill the municipal supply gap. They also drafted apaper that included recommendations on how to best meet the water supply needs of themunicipalities on the east slope. Mr. Cronin stated that electronic polling was used to understandthe roundtable member's position on the specific recommendations that were drafted to fulfill eachof the vision statements. The Executive Director handed outan attachment showing the pollingresults to the Board.

V. REPORTS

A. Executive Directors Report -Mr. Sean Cronin

Mr. Cronin shared with the Board the Executive Directors report.

1. South Platte Basin Roundtable (SPBRT) Mr. Cronin stated that a public scopingmeeting was held on August 5th to define the work elements of the South PlatteBasin Implementation Plan. The next meeting is August 13.

2. Meeting at Senator Udall's Office - Mr. Cronin met with staff from Senator Udall'sWashington office on August 5 to discuss federal legislative priorities and concernsrelated to water.

3. City of Longmont Water Tour - Mr. Cronin informed the Boardthat the City ofLongmont is hosting its annual water tour on September 13th; anyone interestedshould notify the District office.

B . I te m s fr o m th e B o a r d P r e s id e n t o r P u b lic - President Yanchunas

V I. A D J O U R N M E N T hgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

With no further business to come before the st. Vrain and LeftHand Water Conservancy District

Board of Directors, President Yanchunas adjourned the meeting at 4:00 p.m.

Respectfully Submitted,

A d d itio n a l G u e sts :

Rhett Hines

Karen Martinez

Shera Sumerford

Deere & Ault

Boulder County pas

Water Commissioner - District 5