MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT

 

Held:      Friday, January 21, 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 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

Radford K. Walker

 

Also present were Nancy Reeder with AquaTest, Inc.; Kim Seter of Seter and Vander Wall, P.C.; 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 December 17, 2004 were read, and upon motion duly made, seconded and carried, with Director Walker abstaining, were approved.  A copy of the December 17, 2004 minutes was signed by Director Yoder.

 

Financial Matters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Director Jordan had emailed to everyone his report on the financial overview of the District as of December, 2004. The balance in the Colorado Trust account at the end of December was $26,264.74.  Director Jordan also noted that legal expenses were approximately one-fourth of the District’s total expenditures, and this expense needs to be cut back significantly.

 

The builder at 105 Denwood has finally submitted all the necessary paperwork for tapping into the system, and the tap is scheduled for Tuesday, January 25, 2005.  The tap fee, which was being held pending receipt of the paperwork, can now be deposited.

 

Monthly financial statements and expenses were reviewed. In addition to the checks listed on the check register, a $2,444.66 check to David Lindholm and an $8,000.00 check to transfer the above-mentioned tap fee into the District’s Colorado Trust account have been written.

 

Director Jordan questioned an item on the Seter and Vander Wall invoice.  The time charged for completing form DLG-70 as part of the budget expense seems very high, as this is a simple form to complete.  Mr. Seter agreed to review the charge and issue a credit if possible.

 

Director Walker asked if it was possible to show “previous month” on the Income/Budget Statement, and the Directors asked Ms. Reeder to make that change to the report.

 

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

 

The audit proposal from Mason Russell and West was reviewed.  The cost has gone up $600 from last year.  A note with the proposal explains that the increase is due to changes in GASB accounting and reporting procedures.  Ms. Reeder suggested that if the District was interested in seeking additional proposals for the 2005 audit, they send out an RFP in the fall (September or October) so they have responses by the January 2006 Board Meeting.  A motion was made for the Board to accept the proposal from Mason Russell and West to prepare the District’s 2004 annual audit.  The motion was seconded and unanimously carried.  Directors Jordan and Yoder signed the proposal.

 

Manager’s Report

 

 

 

 

 

 

 

 

 

District Administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attorney’s Report

 

 

 

 

 

 

 

 

Other Business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjournment

Mr. Stanford’s written report states that that system is running well.  He is out of town this weekend and provided the name and number of the contact person in his absence in case of an emergency.

 

Mr. Rupp asked Ms. Reeder to remind Mr. Stanford to follow up with the ‘conflict of interest’ issue regarding the on-site stream flow inspection requested by Highland Lakes District’s attorney, Jim Felt

 

The Directors discussed the role of Seter and Vander Wall as the District’s counsel.  The Directors reiterated the fact that all legal issues and discussion go through Director Billings with the exception of financial and budget issues, which may be handled directly by Director Jordan with copies of all correspondence to Director Billings.  In an effort to decrease legal expenses, the Directors also instructed Mr. Seter that all legal work will be at the direction of the Board, and that Seter and Vander Wall is not to automatically perform any duties unless specifically directed to do so by the Board.

 

Mr. Seter presented a draft copy of the Annual Administrative Rresolution for the Arabian Acres Metropolitan District, and recommended that the Directors review it carefully.  The Directors discussed the document in detail, reviewing each item one by one and making revisions.  Mr. Seter’s office will revise the document accordingly and provide a revised copy for the next meeting.

 

Mr. Seter gave Ms. Reeder the Affidavit of Qualification of Director forms, which will be signed by the Directors and notarized at the February meeting.

 

At this time, Mr. Rupp had no additional information to report on the Camp Iana/CSU easement or the Trout Haven Resort easement for vacated roadway property.

 

Mr. Lindholm has filed the Augmentation and Exchange Water Court Degree and the public notice of the filing has been published in the local Teller County paper.

 

 

Well Drilling:

 

The Directors would like Mr. Stanford to inquire with well drilling firms and find out what their lead time would be for re-drilling well #5.  Mr. Rupp gave a rough estimate of $10,000 to $12,000 to have the well drilled and get  on-line.  Mr. Rupp also stated that there might be other charges involved, as per engineer projections from the District formation process.  Regardless, Mr. Rupp recommended that the District proceed with the process, as the time factor is the most crucial in the well development process.  Mr. Rupp also noted that all of the costs of placing a new well on-line, will not be experienced all at once by the District and the District should proceed on a ‘cash available’ basis with each phase of the well development process.  The District can always elect to place the project on hold, in the event of the District’s lack of Capital Improvement funds, until such time as funds are again available to the District for continuing this project.  Well drill permits are valid for one year to put the well  to “beneficial use”, and they can be extended for one more year if necessary.

 

(Post meeting note:  Ms. Reeder verified the following well permit expiration dates:  Well #3 -  5/5/05   Well #5 – 11/3/05)

 

Director Jordan feels that the District can proceed with drilling one well, as there are sufficient funds in the Colorado Trust account.  Director Biondo questioned if any grant money might be available, and agreed to investigate that possibility.

 

Rules and Regulations Revision:

 

As directed at the last meeting, Ms. Reeder revised the Rules and Regulations to include the requirement of a $15,000 surety bond from any excavator performing taps within the District.  The revised pages were reviewed by the Directors.  Mr. Rupp made note to the Board of Directors that the bond requirement   have an adverse effect on the yearly number of taps , but agreed that the requirement is in the best interest of the District.  Mr. Rupp recommended that the situation be monitored.  The changes will take effect 45 days from the December 14, 2004 meeting.  Director Billings asked Ms. Reeder to email him a copy of the revised Rules and Regulations once it was available.

 

Trout Haven Promo Letter:

 

The Directors discussed the information letter that Director Biondo presented at the December 2004 Board meeting.  Director Walker and Mr. Rupp agreed to review and edit the letter, and present a more finalized version to the Board.  Director Billings noted that once the final version is ready, it should be reviewed by the attorneys before being mailed to homeowners.

 

The Directors again discussed incentives for obtaining additional taps and reviewed some of the attorney’s previous comments with Mr. Seter.  The target area of any incentive program is anyone within the District with a well, not just the Trout Haven, /Tioga Trail and Kutsu Ridge Road residents.

 

UNCC Locates:

 

A bill has been introduced into the state legislature (HB 05-1073) that would change the terminology of  “grading” and “excavation” to help eliminate the current problem with the Teller Department of Transportation calling in many locates when they will be only road grading.  UNCC will not take a stand on either side of the issues, and suggests that each UNCC member pursue this bill as they see fit.  The Special District Association has not yet addressed this issue yet because the bill is so new

 

There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 9:05 PM.

 

 

                   _________________________________________

                              Secretary for the Meeting