MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT

 

Held:                                                         Friday, December 17, 2004 at 7:00 p.m. at 400 W.

Midland Avenue, Suite 250, Woodland Park, Colorado.

 

Attendance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The regular meeting of the Board of Directors of the Arabian Acres Metropolitan District was called and held in accordance with the statutes of the State of Colorado.  The following Directors were in attendance:

 

Gene L. Billings

Alan L. Jordan

Dennis S. Yoder

David J. Biondo

 

Director Radford K. Walker was excused, pursuant to 32-1-905(1)(g), C.R.S.

 

Also present were Dave Stanford and Nancy Reeder with AquaTest, Inc. and Ken Rupp, private consultant to the District.

 

Call to Order

Director Billings noted that a quorum was present and called the regular meeting of the Board of Directors of the Arabian Acres Metropolitan District to order at 7:10 pm.

 

Disclosure Matters

Director Billings asked the Board to confirm that no changes have occurred to any of the Directors’ interests that warrant amending the written disclosures on file with the Secretary of State’s Office with regard to any potential conflicts of interest.  Pursuant to Colorado law, certain disclosures may be required prior to taking official action at the meeting.  The Board reviewed the agenda for the meeting, following which each Board member disclosed their conflicts of interest, stating the fact and summary nature of any matters, as required under Colorado law, to permit official action to be taken at the meeting.

 

 

Approval of Minutes

The minutes of the regular meeting of the Board of Directors held November 19, 2004 were read, and upon motion duly made, seconded and unanimously carried, were approved.  A copy of the November 19, 2004 minutes was signed by Director Yoder.

 

Financial Matters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Budget Amendment

 

 

 

 

 

 

Director Jordan had emailed to everyone his report on the financial overview of the District as of November 30, 2004. The balance in the Colorado Trust account at the end of November was $33,214.57.  Director Jordan noted that the District has incurred approximately $3400 in legal fees in the last two months, mostly for work related to the budget and for Ms. Fritsche to attend the Board meetings in October and November.

 

A discussion ensued regarding legal fees and exactly what work the Directors want the attorneys to do on the District’s behalf.  The Directors feel comfortable performing some of the work the attorneys are now being paid to do, along with assigning some of those duties to AquaTest.  The Directors decided to have all official records of the District transferred to AquaTest’s office, where access to the records will be much easier; and to direct Seter & Vander Wall to proceed with work only as authorized by the Board.  This issue will be discussed further with Mr. Kim Seter of Seter & Vander Wall at the January 2005 meeting.

 

Monthly financial statements and expenses were reviewed. In addition to the checks listed on the check register, a $68.85 check for overpayment of a water bill on account 137 had also been written.

 

A motion was made for the Board to approve the financial statements as presented.  The motion was seconded and unanimously carried.

 

Director Jordan suggested that the 2004 Budget Amendment discussion be tabled until after the 2004 audit was completed to see exactly where adjustments might be required.  Director Billings asked Ms. Reeder to remind the Board of this topic for the March 2005 meeting.

Manager’s Report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attorney’s Report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjournment

Mr. Stanford reported that the system is working well. The District will be receiving invoices from USA Bluebook for parts to repair the chlorinator.  The District has received a tap fee for 507 Donzi Trail. 

 

Mr. Stanford discussed some of the problems that are occurring with taps, such as incompetent/inexperienced excavators, trenches that do not meet OSHA standards, and excavators who don’t probe for the main before digging.  Mr. Stanford suggested that the Board consider requiring a $15,000 surety bond from each excavator who will be excavating for taps within the District.  He also recommended that the District require that all taps be made directly to the water mains and not to the stub-outs that may be found on some lots.  When tapping into the main, the District supplies a tapping saddle, a corp stop and a property shut-off valve, all in accordance with American Water Works Association.  The homeowner’s excavator or plumber supplies 3/4” type-K copper for the service line.  AquaTest does not supervise the excavation of the main or service line.

 

After a brief discussion, a motion was made to change the District’s Rules and Regulations to read that all tap permit applications require a $15,000 surety bond from the excavating contractor. The motion was seconded and unanimously carried.

 

Director Billings directed Mr. Stanford and Ms. Reeder to revise the Rules and Regulations in accordance with the above motion.

 

A motion was made to require all new taps to tap directly to the water main. The motion was seconded and unanimously carried.

 

Regarding the Camp Iana easement, Mr. Rupp stated nothing has progressed since the last meeting; however, he feels this and the Trout Haven Resort easement for the vacated roadway property are not extremely urgent issues.

 

Regarding the Augmentation and Exchange Water Court Decree, Mr. Rupp stated that Bradford Benning, of Highland Lakes Water District, is no longer working on this issue as he has moved on to another law firm.

 

Jim Felt, of Highland Lakes Water District, has some concern with all the water rights being traded upstream on Twin Creek and of attaching more water rights to Twin Creek than what actually flows through the creek.  The City of Aurora has senior water rights and can shut everyone else down in years of extreme drought.  Mr. Felt would like to visit the property and/or view it on a map, to get a better idea of the area.  Mr. Felt suggested that possibly Dave Stanford could even help in the process of analyzing actual on-site stream flows.  Dave Lindholm, Arabian Acres’ water attorney, thought it might even be helpful to do a presentation at a Highland Lakes Water District Board meeting with Mr. Stanford’s help.  Mr. Stanford is also the District Manger for Highland Lakes Water District   Mr. Stanford stated that this was a conflict of interest, and put the Directors on notice as such.

 

At this time, Mr. Lindholm feels that it is best to proceed with the application and he had prepared an application for the Director’s approval.  As far as the cost of this work, Mr. Rupp stated that Mr. Lindholm’s fee to the District for work done between May 1 and November 30, 2004 is approximately $1800.  There is additional work required to file the Decree, so additional costs will be incurred.  And there may be objectors, which would cost more money.  It is possible that this issue could go on for a long time.

 

To help defray these costs and to see the issue move forward, Mr. Rupp presented a $2500 donation check to the Arabian Acres Metropolitan District from the Rupp Family Partnership.

 

A discussion ensued regarding the selling of bulk-water to customers outside the District, including the income to the District, where to place a bulk hauling station, the cost of setting up a system, etc.  Mr. Stanford will give the Directors an estimated cost of an automated system along with the cost to finance.

 

A motion was made to direct Mr. Lindholm to proceed with filing the “Application for Approval of a Plan for Augmentation and Exchange Right.”  The motion was seconded and unanimously carried.  Director Billings signed the document where required.  Mr. Rupp stated that the document would be filed by the end of the year.

 

Mr. Rupp had no additional information to report at this meeting regarding the Trout Haven Resort Easement for the vacated roadway property.

 

Mr. Rupp presented a draft "Third Amended and Restated Advance and Reimbursement Agreement" between Arabian Acres Metropolitan District and the Rupp Family Partnership, RLLLP (successor-in-interest to Arabian Acres Water Company, LLC) for consideration.

 

A motion was made to pay $15,000 to Arabian Acres Water Company, LLC on the balance owed of $62,854.   The motion was seconded and unanimously carried.

 

A motion was made to approve the “Third Amended and Restated Advance and Reimbursement Agreement" between Arabian Acres Metropolitan District and the Rupp Family Partnership, RLLLP and to execute the “Exhibit A – Promissory Note” for the remaining balance of $47,854. The motion was seconded and unanimously carried.  Directors Billings and Yoder signed both documents where necessary.

 

A motion was made to withdraw $15,000 from the Colorado Trust account to make payment to Arabian Acres Water Company, LLC.  The motion was seconded and unanimously carried.  Director Yoder signed the withdrawal letter to Colorado Trust.

 

At this time, the Directors thanked Mr. Rupp and his family for their continued support of the District, and for their donation this evening of $2500.

 

Director Biondo presented a draft letter he prepared to be sent to property owners within the District.  Director Billings will email the draft to Director Walker and Mr. Rupp for their input.

 

The Directors discussed incentives for obtaining additional taps and reviewed some of the attorney’s previous comments regarding this issue.  It is going to be difficult to persuade homeowners who currently have wells to invest in tapping into the District’s water system.  Mr. Stanford noted that as development in the area increases and the private wells begin to fail or become contaminated, these homeowners would definitely be interested in tapping into a public water supply.  It’s a matter of time.  In the meantime, the Directors agreed that they must keep the Arabian Acres Metropolitan District’s name in the public’s eye, and keep homeowners aware of what is going on in the District.

 

Director Billings is working on the quarterly newsletter, which hopefully will be ready in a few weeks.  He asked that Mr. Stanford prepare a short article on the importance of maintaining septic tanks.

 

There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 9:25 PM.

 

 

                   _________________________________________

                              Secretary for the Meeting