MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE
ARABIAN
ACRES METROPOLITAN DISTRICT
Held:
|
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: Alan L. Jordan Radford Walker Dennis S. Yoder Gene L. Billings David J. Biondo Also present were Dave Stanford, Debbie
Stanford, Beth Elzas, 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. |
|
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 June 11, 2004 were read, and upon motion duly made, seconded and unanimously carried, were approved as revised. A revised copy of the June 11, 2004 minutes is to be made available at the August Board meeting for signatures. |
|
Financial Matters |
Director Jordan presented his financial overview of the District. He also reviewed how the District transferred the funds in May and June to pay the June 2004 Bond payment. The Zion’s Bond Fund and the Capital Interest Fund were depleted and the rest came from the District checking account. The Zion’s Project Fund has a balance, as of June 30, 2004, of approximately $12,000. Director Yoder commented that the Board does need to be proactive and look at future income and bond payments due. Director Yoder also reminded the Board of the payment of $62,854 due to the Arabian Acres Water Company, LLC, and that will need to be considered also. A discussion ensued regarding the Bond payment due December 2004, and with the tap fees coming in along with property tax revenue, it appears that there will be sufficient revenue to pay the December 2004 payment. As far as the June 2005 Bond payment, with approximately $20,000 in property tax revenue coming in by June 2005, the District would need three more taps before June 2005 to make that payment. It was noted in 2008, the Bond payment would include principal in addition to interest payments. Ms. Reeder spoke with Ray Russell of Mason Russell West, LLC, the District Auditor, regarding a few questions on the year-end journal entries. She received clarification on how these journal entries affect the current balance sheet. Accounts Receivable – Property Tax and Accounts Receivable – Water shall remain on the balance sheet, with their December 2003 balances, until Mr. Russell’s review in December 2004. At that time they will be adjusted accordingly to reflect the accounts receivable balances as of that date. Director Jordan will show the actual and current figures on his financial overview report, so the Board will have a clearer understanding of the current financial picture of the District. Monthly expenses were reviewed. Legal costs were discussed and Ms. Elzas noted that Seter and Vander Wall would be paid in full, with the check written in July. This does not include any charges incurred for the month of June. Director Billings stated that Seter and Vander Wall emailed him a copy of the June bill and the charges were $802, so legal fees are decreasing significantly. Also, Repair and Maintenance costs are significantly higher than budgeted due to the repair at Well # 8. Ms. Elzas reviewed and clarified the Cash Disbursement report, explaining that the numerous voided checks were a result of training a new employee and printer jams. A motion was made for the Board to pay the bills as presented. The motion was seconded and unanimously carried. Director Jordan noted that the County is directly depositing tax revenues into the District’s account now. The Board reviewed the 2003 Auditor’s Report. Director Yoder, noting the loss of $49,856 in the Accumulated Deficit category for 2003, questioned if there were any lessons to be learned from the previous year. There are several “one-time” issues that occurred in 2003, including extensive legal fees and $30,000 spent on the Kutsu Ridge main extension. Mr. Stanford recommended that the Board “play it close to the vest” financially. Director Jordan noted that it costs $852 for the attorney to attend a Board meeting, and that the Board should be very selective about their attendance at the meetings. Mr. Stanford noted that the Special District Association can assist with many questions or problems the Board may have, rather than involving the attorney. A motion was made to accept the 2003 Audit as prepared by Mason Russell West, LLC. The motion was seconded and unanimously carried. Director Billings inquired about the status of the District’s accountant recommendations and changes for 2003/2004. Ms. Elzas stated that Paul Goedecke asked her to wait for the final audit to be completed, and that he would get back with her after speaking with the auditor, Ray Russell. Mr. Goedecke will also be receiving quarterly financial statements from Ms. Elzas shortly. Director Jordan suggested that this matter be tabled until the next meeting, after the accountant and auditor have had a chance to speak. In response to a concern about the monthly financial information not being completely reconciled due to the early meeting date of the Board each month, a discussion ensued regarding the possibility of moving the monthly meeting of the Board from the second Friday of each month to the third Friday of each month. Director Billings stated that the meeting date was set at the first of the year and questioned if it was possible to change it. Mr. Stanford and Director Jordan both stated that the meeting could be moved as long as it was posted in the three locations the meeting notices were normally posted within the District, and that it was also posted at the Teller County Clerk and Recorder’s office in Cripple Creek. Ms. Elzas stated she would prepare the appropriate postings. It was also confirmed with all Board members and AquaTest staff that they are available the third Friday of each month. A motion was made to move the monthly meeting of the Board of Directors to the third Friday of each month, and that such change in meeting date is posted as necessary, including with the Teller County Clerk and Recorder. The motion was seconded and unanimously carried. The next Board meeting will therefore be held on August 20, 2004. |
|
District Operations Discussion |
a. Administration: Director Billings stated that it is imperative that the Directors’ packets go out on the Tuesday before the meeting, along with a copy to Seter and Vander Wall. It is also imperative that Seter and Vander Wall receive a copy of the approved and executed minutes for the District files. After a short discussion, it was decided to mail the packets to Director Walker and Seter and Vander Wall, rather than faxing. All other directors’ packets will be hand-delivered. b. Management: Mr. Stanford prepared a letter dated July 7, 2004 answering several questions regarding outstanding District directed issues from previous Board meeting minutes, as requested by Director Billings. Some of the issues were further discussed as follows: Oct. 9, 2003 minutes – Trout Haven Main: (In his letter, Mr. Stanford responded to the wrong issue.) Mr. Rupp noted at this time, this is a moot point and that Mr. Kyper will probably issue an easement if asked. Mr. Stanford noted that the easement is by prescription, and he wasn’t certain that a written easement was required. However, he will be seeing Mr. Kuyper about other issues and Mr. Stanford will ask Mr. Kuyper about a written easement for this main. Kutsu Ridge Road Main extension property owners visit: Director Billings asked why this had not been done as directed in October 2003. Mr. Stanford stated that time is a factor, and that he would probably not get to it within 60 days. After a discussion, it was determined that this extension affects approximately 6 lots whose owners have not yet paid tap fees, and approximately 4 owners (as one owner owns several lots). It was decided that AquaTest will issue a letter to those owners, and Director Billings will assist Ms. Elzas in obtaining the addresses. April 9, 2004 minutes – Well #8 Pad Update: Pad at well #8 will be replaced as soon as Lamb Excavation can get to it. December 12, 2003 minutes - The Water Source Protection Plan: Done. ‘Dry’ Control lines: Qwest has not returned calls regarding the ‘dry’ control line issues between any of the Control Buildings and the water storage tank. c. System Operations: Director Billings questioned why there was a 49.6% water loss this month. Although Mr. Stanford has not yet seen that report, there is obviously a leak in the system. Director Billings questioned that wouldn’t such a large leak show up on the ground somewhere. Mr. Stanford and Mr. Rupp both stated probably not. The loss of 338,800 gallons in June comes out to a 7-gpm leak (338,800 ÷31 days ÷ 1440 minutes in a day), and that size leak may not show on the ground. Last month, the loss was approximately 155,000 gallons, so the leak is getting bigger Director Billings asked Mr. Stanford how he was going to locate the leak(s). Both Mr. Stanford and Mr. Rupp suggested the following: 1) listen at the valve boxes; 2) investigate the areas on Mr. Rupp’s disclosure form; 3) check service lines; and after careful evaluation, 4) dig up valve boxes in street. Mr. Stanford noted that there is no problem keeping the tank full. It is also possible that water may be bypassing the meters. Director Yoder inquired about water leak sensors, but that is a costly system. |
|
Manager’s Report |
Mr. Stanford reiterated that the system is obviously losing water, but things are, otherwise, going smoothly. Well #5 was shut off, as of low production, but is now filled up with very clear water. He will be ordering the MPA test. CJ Patterson paid his bill and the meter is now in place. Director Billings stated that Mr. Patterson has been gone for over a month. The invoice for the damage to the water main at 290 Deer Ridge Trail has been paid in full, in the amount of $1040. Candace Gerrard has been sent a letter in reply to her letter, as directed by the Board at their June meeting. There has been no response. Regarding electronic bill paying, there has not been a lot of demand. Customers may make arrangements with their own bank to pay electronically. A discussion was held regarding placing the appeal language on delinquent bills. Mr. Stanford stated that there is not enough room on the postcard-size bills to place such language, and questioned if it was really necessary. Director Billings stated that it may not be a legal requirement, but the Board should insist it is on the bills, as a matter of information and to cover the Board’s liability if a claim was made; i.e., proof that the Board notified the customer of their rights. Director Jordan pointed out that the right to appeal comes when the water is going to be shutoff, not with the first delinquent notice. After much discussion, it was suggested that the appeal language be placed on the District’s website and that the notice that there is a right of appeal be placed on the disconnect notice, not the first delinquent bill. A motion was made to amend turn-off notices to read: “You have the right to appeal. Call the District Manager at 719-687-2386" and when the customer calls, they will be mailed the appeal procedure and/or directed to the District’s web site for the language.” The motion was seconded and unanimously carried. |
|
Attorney’s Report Other Business Adjournment |
Mr. Rupp stated that the Camp Iana Easement is still in the works, with no progress made during the last month. Mr. Rupp is trying to get AutoCAD maps of the area from the City of Colorado Springs Utilities, and he will keep the Board updated. The petition to amend water court degree is also still underway. The attorney did drop the ball, and the attorney is currently out of town until next week A discussion was held regarding Well #5, and the permitting process. Mr. Stanford stated the permit is approximately $500 and will take 30 to 45 days to obtain. Once approved the permit is good for one year and may be renewed for one more additional year, so in essence it is good for two years. The permit could be obtained now, and the well drilled later. Mr. Rupp expressed his opinion that we are still in a drought and the Board should not stall the well drilling exploration process. The fact that Well #5 has run dry is a flag of need to proceed. It may take 6 to 9 months to get on a well driller’s schedule. The District certainly would not want to fall short on water and have to buy water. Director Yoder inquired about the District’s capacity. Mr. Stanford stated the District could not pump the capacity of its augmentation water rights right now. A motion was made to move to get the permit for Well #5, and that Mr. Stanford begin that process. The motion was seconded and unanimously carried. Attendance at the SDA Annual Conference in September was discussed. Mrs. Stanford stated that she spoke with SDA, and the prices for the conference had not yet been set but information would be mailed out shortly. Director Jordan is already attending as a county employee. Director Yoder recommended that the Board send one person who hasn’t yet gone and Director Walker volunteered to attend. A motion was made to send one person to the SDA Annual Conference, with the cost not to exceed $500 for the meeting and lodging/meals. The motion was seconded and carried, with Director Walker abstaining. There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 9:30 PM. _________________________________________ Secretary for the Meeting |