SAN LUIS VALLEY — The Subdistrict 4 board of managers met online Wednesday, Sept. 30, to discuss fee strategies and approve a preliminary budget before the Rio Grande Water Conservation District (RGWCD) deadline Oct. 15. The subdistrict has until Dec. 1 to follow recommendations from the RGWCD board and finalize their budget.

David Frees, who holds the Vice President, Secretary and Treasurer positions, conducted the meeting with managers Peter Stagner and Dick Blumenhein in attendance.

After almost 15 years of service, Blumenhein announced he is stepping away from his position, recommending Jeremy Uhlenbrock from Mineral Hot Springs Farm as a replacement.
“I wish the district success getting this resolved for the members,” Blumenhein said during the detailed rate-setting discussion.

Over the past few months, the board worked to reach subdistrict members for updated contact information. On Oct. 15, the subdistrict will send emails to all members with usernames and passwords for entering meter readings online. Some members have been reporting data online for a few years. The deadline to submit data is Dec. 1, 2020. Statewide, well meter reading will be electronic-only eventually, and the technology will allow for monthly readings for analysis.

The bulk of the discussion compared models for Well Injury Payment (WIP) contracts. Program Assistant Chris Ivers explained how the board calculated total field costs using different fee structure options. If the subdistrict does not get 100% participation, they may need to make lease arrangements to cover costs. Considering about 62 wells, Frees estimated that most operations use between 18–24 inches per acre.

After crunching numbers for comparison, the board targeted a budget that would provide members a figure to put in their own budgets. “We don’t want to give them any surprises,” Frees said.

David Hofmann from the Division of Water Resources encouraged the board to consider backup plans for budget (and precipitation) shortfalls. For example, the contingency fee is 30% of the proposed withdrawal fee, a fund for the future. Is it too much or not enough? The current guidance allows for collecting 30% for five years before raising or lowering the sustainability fee.

“It’s up to the board,” Frees said. “But I think it’s better to have money you don’t spend than money you don’t have.”

Frees and the board scheduled the next Subdistrict 4 meeting for 10 a.m. Nov. 4, 2020.