MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, February 18, 2005 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, as continued from the January 21, 2005 meeting, was called and held in accordance with the statutes of the State of Colorado. The following Directors were in attendance: Gene L. Billings Radford K. Walker Alan L. Jordan Directors Dennis S. Yoder and David J. Biondo were 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 7:20pm. A motion was made for the Board to appoint Director Walker as the Acting Secretary for the meeting. The motion was seconded and unanimously carried.
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 January 21, 2005 were read. A motion was duly made to accept the first set of minutes of the two continued meetings of January 21, 2005 and February 18, 2005, with the second set of minutes to be considered for approval at the March 18, 2005 meeting. The motion was seconded and unanimously carried. A copy of the January 21, 2005 minutes was signed by the Acting Secretary, Director Walker.
Financial Matters	Director Jordan had emailed to everyone his report on the financial overview of the District as of January 31, 2005. The District is showing a profit of $8,416, due to a tap fee received in January. The monthly financial statements and expenses were reviewed. A motion was made for the Board to approve the financial statements and cash disbursements as presented. The motion was seconded and unanimously carried.
Manager’s Report Attorney’s Report Other Business Adjournment	Mr. Stanford reported that the system is working very well. The tap at 105 Denwood occurred without problem. A discussion was held regarding re-drilling well #5. Director Jordan feels that there will be sufficient income from taxes to pay the June bond payment, so some of the funds in Colorado Trust could be used to re-drill the well, or at least start the process of re-drilling the well. Mr. Stanford stated that the well is not necessary at this time. He recommended that the District wait until its financial status is more secure and re-evaluate the situation again in May or June. Mr. Rupp recommended that the District proceed with the process of re-drilling the well now, and then proceed in stages, as District funds will allow, for the remainder of the work necessary to get the well online and running. This way, a good portion of the work would already be done and the critical time factor would be greatly reduced should the District need additional water production. He also suggested that there might be ways to save money on the new well by detailed analysis and selection of the precise well site, in engineering costs or by using some of the existing underground piping for conduit to run wires, etc. to the pumphouse. Director Jordan questioned why the District doesn’t re-drill well #3 instead. At the present time, well #3 is working fine but well #5 has been shut down due to possible surface water contamination. Mr. Stanford will meet with Dave of Black Mountain Drilling regarding their time frame for drilling. After a discussion, it was determined to specify a 6” hole with a 4” casing. Regarding the Camp Iana Easement, Mr. Rupp spoke with Terry of Colorado Springs Utilities (CSU). The District's 2” main has been plotted to depth and position. Mr. Rupp asked for a copy of the information, from CSU so he could approach Camp Iana for the easement. Regarding the Augmentation and Exchange Water Court Decree, Mr. Stanford stated that he has met with Jim Felt, Highland Lakes Water District’s attorney. As far as Mr. Felt is concerned, Highland Lakes will not oppose the Decree as long as the scope has not changed from what he and Mr. Stanford discussed. Anyone opposed to the Decree has until February 28, 2005 to file their Statement of Opposition. Regarding the Trout Haven Resort Easement for the Vacated Roadway Property, Mr. Rupp has not had an opportunity to pursue this any further at this time due to his work schedule. Annual Administrative Resolution: The Directors reviewed the Annual Administrative Resolution as revised by Seter & Vander Wall. A motion was made for the Board to approve the Annual Administrative Resolution as revised. The motion was seconded and unanimously carried. The President and the Acting Secretary signed the document. The Directors discussed the Trout Haven promotional letter. Director Walker will retype the letter to make it more professional and formal in tone, and email the revised letter to everyone for their review. There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 8:40 PM. _________________________________________ Secretary for the Meeting