MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, July 22, 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 David J. Biondo Dennis Yoder Also present was Dave and Debbie Stanford with AquaTest, Inc. Also present was Ken Rupp, previous owner of the Arabian Acres Water Company. Also presented was Ray Russell of Mason Russell West, Certified Public Accounts for the District. Director Walker was excused due to a conflict in his schedule pursuant to CRS 32-1-905L1 Lg.

Call to Order

Director Yoder 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 7:10pm.

Approval of Minutes	The minutes of the regular meeting of the Board of Directors held June 24, 2005 were read, and upon motion duly made, seconded and unanimously carried, were approved. with corrections. A copy of the corrected June 24, 2005 minutes will be presented at the August 19 meeting for a signature.
Financial Matters	Mr. Russell reviewed the draft of the yearly audit completed for the year 2004. Director Jordan made a motion to amend the 2004 budget by $50,000.00 and, upon motion duly made and seconded, the motion was unanimously carried. Upon motion duly made and seconded it was unanimously agreed to accept the draft as presented. Director Biondo reviewed the financial statement and expenses. It was noted that the Park State Bank checking account has a balance of approximately $18,998.90. A motion was made and duly carried to approve the financial statements
Manager’s Report	Mr. Stanford reported that a leak on a service line on Tioga Trail had surfaced and apparently it had been leaking for quite sometime. Mr. Stanford also reported that the District usage had decreased from approximately 24,000 gallons per day to 19,000 gallons per day with the repair of this leak.
Attorney’s Report	No report.
Other Business	Ken Rupp reported that the easement issue with Camp Iana is progressing. A proxy voting ballot was presented from Mountain Mutual Water along with an invoice. Upon motion duly made and seconded, it was unanimous to submit this invoice for payment at the August board meeting.
Adjournment	There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 10:00 PM. _________________________________________ Secretary for the Meeting