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I . R O U T I N EI T E M S

A . R o l l C a l l - Amy Williams

Board members attending the meeting were President Dennis Yanchunas, Vice President Glenn

Patterson, Treasurer Michael Rademacher, Directors Harold Nelson and Bill Haselbush. Unable to

attend the meeting were Secretary John Zweck and Directors Doug Lyle, Ron Sutherland and Bob

Brand.

The following staff members were present: Executive Director Sean Cronin and Administrative

Assistant Amy Williams. Also present was District Legal Counsel Scott Holwick and District

Engineer Mark McLean. There were no additional guests in attendance.

B . C a l l t o 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 t s o r A d d i t io n s t o t h e A g e n d a - President Yanchunas

President Yanchunas asked for any amendments or additions to the agenda. Mr. Cronin suggested

one addition to the agenda; SectionV, Item D -Director Vacancy.

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

A . M o t io n : A p p r o v a l o f S e p t e m b e r 1 0 t h M in u t e s

After verifying that there were enough Board members present for a quorum, President Yanchunas

asked for any corrections to the September 10, 2012 meeting minutes. Director Nelson requested

that a sentence in the monthly presentation portion be corrected to show South St. Vrain instead of

North St. Vrain. With no further corrections to the minutes,a motion to approve the minutes with

this correction was made by Director Nelson. Treasurer Rademacher seconded the motion and it

passed unanimously with Director Haselbush abstaining as he was not at the September meeting.

B . 2 0 1 2 A u g m e n t a t io n P r o g r a m S u m m a r y

A memo enclosed in the packet detailed the current status of the Augmentation Program noting that

the District has received $20,569.72 in fee revenue, and hashad $23,914.94 in related expenses.

C. L a k e N o .4 S u r p lu s W a t e r R e n t a l F e e S e t t in g

A second memo enclosed detailed the current moratorium on the rental of water from Lake No.4

surplus augmentation water. The memo reminded the Board of Directors that at the February 2011

meeting, a moratorium on the rental of water from Lake NO.4. was approved. The need for

maintenance and repairs on the inlet/outlet facilities, and the lack of firm yield analysis

determining what if any annual surplus available for rent precipitated this. The Executive Director

recommended at this time that the moratorium continue untilthe completion of any maintenance

activities and the firm yield analysis are completed.

President Yanchunas asked for any comments regarding itemsBand C and after no discussion

regarding items Band C, a motion to approve both items was made by Treasurer Rademacher and

seconded by Vice President Patterson. The motion passed unanimously.

III. DISCUSSION ITEMS

A. Legal Report -Mr. Scott Holwick

President Yanchunas asked Mr. Holwick to present his reportat this time.

1. Resume Review - There were no applications published in the August resume that

involved water rights in the St. Vrain basin.

2. Application of Clay Taylor and Linda HaH- Taylor, Case No.10CW12~6. -

According to Mr. Holwick, the Taylors sought to make absolute their conditional

water rights for Twin Peaks Pond (5 AF) Twin Peaks Ditch SE (lefs), Twin Peaks

Ditch SW1 (1 efs), Twin Peaks Ditch SW2 (lefs), Twin Peaks Ditch SW3 (Lcfs) and

Twin Peaks Ditch SW4 (lefs). On September 13th the Court dismissed the

application for failure to diligently prosecute.

3. Application of Golden G Gravel, et al., Case No. 08CW275 - Mr. Holwick noted

that after the September Board of Directors meeting, he exchanged additional

communications with the Applicants' attorney regarding the inclusion of the

wetlands in the property subject to the existing augmentation agreement. Mr.

Holwick noted that he expected at the November Board of Directors meeting there

would be a need for an executive session.

4. Lake No.4 Diligence, Case No. 12CW91 - Mr. Holwick reminded the Board of

Directors that he is working directly with Boulder County toresolve the issues with

the CWCB, and after a brief discussion regarding the case he noted that he will

continue to update the Board with any developments.

5. Appointment of Directors - Mr. Holwick reminded the Boardthat three director's

terms will expire on November 1st of 2012. On October 3rd Mr. Holwick filed a

proposed order with the Court to appoint new directors whichhopefully will be

entered shortly.

6. Proposed Legacy Ditch Legislation -As Mr. Holwick discussed at the September

meeting, the Water Resources Review Committee approved theconcept of the

Legacy Ditch statute and has assigned it legislation writerto help draft legislation

for full review by the CWe. Copies of the proposed legislation were available for

those who were interested at the District office.

7. Court of Appeals Decision in Mesa County Land Conservancy Inc. V. Allen .- As afollow up to the discussion about this case at the August meeting, Mr. Holwickreported that the landowners filed a petition for cert with the Supreme Court.Among the issues presented is the conflict between the Courtof Appeals decisionthat mutual ditch company stock is real property and Section7-42-104(4) of theMutual Ditch Company Act stating that it is personal property. It is possible that theland trust may file a response urging the Supreme Court not toreview the Court ofAppeals decision.

Mr. Holwick mentioned the case of Yellow Jacket, the water conservancy district thathad their conditional water rights dismissed because of itsfailure to takeappropriate action to file diligence this year, will be heard by the Colorado SupremeCourt on November 7th at 10:30 a.m. Because this is a water issue it must beaccepted and heard by the Supreme Court.

8. Agricultural Burns - The Water Users Association of District No.6 held a meetingon October 1stto discuss obstacles to agricultural burns and possible solutions. Asub-committee was formed which will meet on Thursday, October 11th at 9:00(location to be determined). Mr. Holwick noted that any present at today's meetinginterested in participating in this discussion are welcometo attend the October 11thmeeting.

9. Boulder County Oil and Gas Regulations - Boulder County isrevising its land usecode relating to oil and gas operations.

With no further information to provide to the Board of Directors at this time, President Yanchunasthanked Mr. Holwick for his report.

B. Engineering Report -Mr. Mark McLean

Mr. McLean shared that there has been little engineering activity for the District. He has workedwith office staff to resolve several issues that the discrepancy billings for the AugmentationProgram have brought forward. Mr. McLean also accompanied Mr. Cronin to the meeting with theState to prepare for the audit.

As there were no further questions for either Mr. Holwick or Mr. McLean, President Yanchunasasked for the Water Commissioners report.

C. Water Commissioners Report

Mr. Cronin shared that due to the holiday, the Water Commissioner would not be attending themeeting. The Water Commissioner did however send a report toMr. Cronin which he shared withthe Board of Directors. The flow at the Lyons gage was 39.9 cfs. The call on the Main Stem wasNorth Sterling Canal dated 8/1/1915 with the administrative number 26302. The call on the St.Vrain was James Ditch Bypass to the James Mason, dated 6/30/1868, administrative number 6756.The reservoirs were 61% full at the end of September.

I V . A C T I O N I T E M S

A . T e r m in a t io n o f A u g m e n t a t io n M e m b e r s C o n t r a c t - Sean CroningfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

President Yanchunas asked Mr. Cronin to review the termination of Augmentation members. Mr.

Cronin referred the Board to the memo in the packet, noting that since the printing of this memo

the District has received one additional payment and the promise of another. At this time there are

three members of the program who have not paid the renewal feefor 2012, for a total outstanding

amount of $184.44. The office staff has drafted and attacheda letter to send to the members that

have not paid the renewal fees, notifying them of their termination from the program. The letter

includes language stating the State will be notified that they are being terminated, and the District

staff has forwarded a draft of this letter to the State for approval. A brief discussion was held

regarding the purpose of the letter, and a motion was made by Director Nelson and seconded by

Treasurer Rademacher to approve the letter to be sent to the outstanding members. The motion

passed unanimously.

B . 2 0 1 3 L e g a l S e r v ic e s A g r e e m e n t - Sean Cronin

President Yanchunas then asked Mr. Cronin to speak regarding the Legal Services Agreement. Mr.

Cronin shared that he had analyzed the District's costs as compared to other fees and found that the

fees the District pays are within market. Mr. Cronin recommended that the Board of directors

approve the agreement. A motion was made to approve the 2013 Legal Services Agreement by Vice

President Patterson and seconded by Director Haselbush. The motion was unanimously approved.

Mr. McLean will have an Engineering agreement prepared for the November meeting.

C. F in a n c ia l R e p o r t - Assistant Treasurer Amy Williams

President Yanchunas then asked Ms. Williams to present the financial report for the month of

September 2012. Ms. Williams reviewed with the Board with financial reports providing the

financial status of the District.

G e n e r a l F u n d

Revenue: $3,212.85Expense: $19,461.59

E n t e r p r i s e F u n d

Revenue: $2,947.98

Expense: $7,410.36

An additional memo supplied in the packet detailed some of the more significant revenue and

expenses for the month of September. A motion was made to approve the financial report for

September 2012 by Treasurer Rademacher and seconded by VicePresident Patterson. The motion

passed unanimously.

D . 2 0 1 3 G e n e r a l F u n d B u d g e t P r o p o s a l - Sean Cronin

President Yanchunas asked Mr. Cronin to present the proposed budget. Mr. Cronin referred the

Board of Directors to the memo within their packets. The Budget Committee met in September to

review the draft 2013 budget, adopting the Personnel Committee recommendations and

recommended some minor changes to the proposed budget.In accordance with the required

format from the Colorado Department of Local Affairs, the proposed budget included the previous

year of 2011, current year of 2012 and the proposed 2013. Mr. Cronin then reviewed the draft

budget in its entirety highlighting individual line items and Significant changes both in the expected

revenue and expenditures for the coming year. It was noted that while it is required that staffpresent the draft budget to the Board of Directors, a motion of approval is not necessary at thistime. Staff will send a notice of the proposed budget to the three area newspapers to be printed byOctober 15, 2012, and an updated budget will be presented again at the NovemberBoard ofDirectors meeting.

V. REPORTS

A. Personnel Committee Meeting Report -President Yanchunas

President Yanchunas noted that the Personnel Committee hadmet both by phone and in person.The committee recommends that for the2013 budget year the District will continue to pay100% ofthe health insurance costs for employees and family. The committee recommended continuing tocontribute 3% of the employee's annual salary to the individual retirement accounts, with an equalmatching contribution made by each employee. The committeealso recommended providing theExecutive Director with a4% salary increase and the Administrative Assistant with a2% hourlyrate increase. Of these salary increases, 1% of each employees increase will be considered a cost ofliving raise; the remainder of the increases will be merit. In addition the committee recommendedproviding the Executive Director with an additional three days of vacation for2013. A motion wasmade by Treasurer Rademacher and seconded by Director Nelson. The motion passedunanimously.

B. Executive Directors Report-Sean Cronin

President Yanchunas requested that Mr. Cronin present the Executive Directors report.

1. Board/Committee Report -Mr. Cronin noted that the South Platte Forum isOctober 24th and 25th and on the evening of the24th the District with several othersponsors will be hosting a reception at Left Hand Brewery. Personal invitationshave been sent to several of the Districts contemporaries, and Mr. Cronin requestedthat if any of the Directors are interested in attending to please contact AmyWilliams to register.

2. Boulder County Water Stewardship Task Force - The Executive Director hasbeen invited to participate in the task force and attended the first meeting on themorning of October 8th. The group is being asked to give some thought to demandmanagement and water supply planning as well as conservation responses andpublic knowledge of water supply and drought. Mr. Cronin noted the group willmeet twice more.

3. Transit Loss - Mr. Cronin shared that the Division Engineer recently issued anorder reducing transit loss charges from the1% per mile necessary to implementduring this very dry year to the typical0.25% per mile during the non-growingseason. It's unclear if this reduction applies to the St. Vrain. Mr. Cronin willcontinue to provide any updates when new information is necessary.

4. Meeting with Division Engineer - Mr. Cronin spoke regarding the September15th

meeting noting that he felt that it was productive for all parties involved. Anothermeeting is scheduled for October 26th and he will be able to update the Board ofDirectors at the November meeting.

5. Water Users Meeting - A meeting to discuss the focus of the planned water users

meeting was held at the District's office, and several participants were there to

provide input. Mr. Cronin will continue to update the board on future

developments.

6. Poudre Runs Through It Work Group - Mr. Cronin has been asked to participate

in this work group designed to create conversation around water management on

the Cache la Poudre River. Although the focus will not be about District water

supplies, both Mr. Cronin and President Yanchunas felt thisprocess could serve as a

model to be applied locally to facilitate discussion on the Coffintop proposal.

President Yanchunas thanked the Executive Director for hisreport.

C. Items from the Board President or Public -President Yanchunas

President Yanchunas asked for any items from the Board of Directors or the public. There were no

further items to be discussed.

D. Director Vacancy -Sean Cronin

Mr. Cronin discussed the potential opening of the Director position for District 3, providing a map

that defined the boundaries of District 3.

VI. EXECUTIVE SESSION

A. None

VII. ADJOURNMENT

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

Board of Directors, a motion to adjourn the meeting was made by Director Haselbush and was

seconded by Treasurer Rademacher, passing unanimously. The meeting was adjourned at 2:50 p.m.

Respectfully Submitted,

Additional Attendees:

None