RECORD OF PROCEEDINGS

________________________________________________________________________

 

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

HELD

MARCH 12, 2004

 

A regular meeting of the Board of Directors of the Arabian Acres Metropolitan District was held March 12, 2004, at AquaTest Inc., 400 W. Midland Ave. Suite 250, Woodland Park, Colorado.  Director Rupp called the meeting to order at 7:05 p.m.

 

 

Attendance

 

In attendance were Directors:                Ken R. Rupp

                                                            Al L. Jordan

                                                            Gene L. Billings

                                                            Dave J. Biondo

                                                            Dennis Yoder

 

Also in attendance were:

 

District Manager, Dave Stanford and District Bookkeeper Beth Elzas of AquaTest, Inc.

District Counsel Joan Fritsche of Seter & Vander Wall P.C.

 

Declaration of Quorum and Disclosures:

 

A quorum was declared present and Directors qualifications were confirmed.

 

Public Comment:

 

Magee Customer Letter – The Board received a letter from David and Jackie Magee in reference to paying the service fee on their water service prior to water being available. The District’s main has not been completed to the property.  Discussion ensued and the Board decided that it was in the best interest of the District to not charge this customer the monthly service fee until the property has access to the water main extension the District is in the process of installing. The Board directed Beth Elzas to send a letter to David and Jackie Magee advising them of the Boards decision.

 

Review and Approval of Minutes:

 

The Board reviewed the minutes of the meeting held Feb. 13th 2004.  Upon motion duly made, seconded and unanimously carried, the minutes were approved.

 

 

 

Financial Matters:

 

A.  ColoTrust account.  The Board directed Beth Elzas to fill out appropriate application to set up a ColoTrust account for the District.

B. Review cash position for March 2004.  Beth Elzas reported that the District has received a request for two tap applications on Kutsu Ridge Road. 

C. Tax Revenue.  Property taxes revenues of $9,934.92 were received on 3/11/04. 

D. Review of March 2004 financials. Director Rupp asked that the deposits be more clearly defined on the books and the Board requested that the monthly cash disbursements journal include the prior month’s invoices.  The Board reviewed the invoices and financials; Director Jordan made a motion to approve the March 2004 financials/invoices, seconded by Director Yoder.  Motion carried unanimously.

E.  Yearly Audit.  The Board instructed Beth Elzas to obtain three proposals from auditors for next month’s meeting.

F.  The District Counsel, Joan Fritsche asked why the balance sheet shows negative amounts in retained earnings, net income and total capital.  The Board instructed Beth Elzas to give a written explanation to the Board. 

 

AquaTest Contract:  Tabled until next meeting.  AquaTest’s legal counsel is reviewing the current draft of the contract.  The Board directed AquaTest to direct their attorney to direct her comments through the District’s President.

 

Manager’s Report:

Line break. A fitting on well #8 broke causing the water outage.  The system will be repaired soon.  The cost is estimated at $4000.00. 

Election was canceled due to lack of candidates.  The District Board will have a vacancy to fill in May.

The revised bid on labor and materials for Tioga Trail is $13,794.55 from Lamb Plumbing and Excavation.  Upon motion duly made, seconded and unanimously approved, the Board accepted the latest bid. 

 

Attorney’s Report:  

A. The Board asked the District’s Counsel to come up with a written payment agreement concerning the past due amount owed to Seter & Vander Wall, P.C.  

B.  District Counsel Joan Fritsche reviewed a memo outlining the payment agreement reached between the District and P-K Enterprises for purchase of the Trout Haven main.  The memo directs AquaTest to take appropriate steps to fulfill the District’s obligations in accordance with the Agreement.

C.   The Board directed Dave Stanford to follow up with Mr. Kyper concerning back up documentation on the cost of the main and size of the main.  The Board also directed Mr. Stanford to obtain a construction update on Trout Haven Resort.

D.  Ms. Fritsche reminded the Board the Petition to Amend the Water Court Decree had been filed with the Water Court and objections to the Petition could be filed.

E.   Amendment to Rules and Regulations was tabled at this time.

 

Other Business:

 

A.  Capital Improvements Plan Continued Discussion.  Director Rupp presented a draft CIP and Excel spreadsheet; discussion was tabled until further Board review.  Director Rupp stated that he would email an updated set of worksheets and spreadsheets to all Board members.  All Board members are to review and submit changes, questions or suggestions to Director. Rupp before the April Board meeting, in hopes of being able to have a final draft for approval by the Board at the April meeting.

B.  Newsletter update. Director Billings processed and mailed the second edition of the newsletter.  311 Newsletters were mailed and only 16 were returned.

C.  Well Development Discussion.  The Board approved requesting a re-drill permit from the state for well #3 and issued a check in the amount of $480.00 to Colorado Division of Natural Resources for processing the permit application.  . Upon motion duly made, seconded and unanimously carried the Board instructed AquaTest to have Woods Drilling proceed with the permit

D.  Board Member Manual.  Director Rupp requested comments on the draft manual from Board members.  Ms. Fritsche cautioned the Board that several provisions in the Manual conflicted with Title 32.  Ms. Fritsche gave several suggestions of sections to amend.  The Board agreed to work on the policy and send in revisions to Director Rupp.

E.Written Agreement / Seter & Vander Wall – Outstanding Services Billing.  Addressed above in Attorneys Report.

F.  Workers’ Compensation Insurance Coverage.  Ms. Fritsche provided the Board with a memorandum outlining the provisions of the Workers’ Compensation Act, which apply to the Board.  Coverage for the Board is estimated to be approximately  $165.00 per year.   Upon motion duly made, seconded and unanimously approved, the Board directed AquaTest to obtain a quote for workers’ compensation insurance coverage for the Board.

G.  District Budget.  Paul Goedecke provided the Board with a quote for the 2005 budget.  He suggested a review of the District financial reports on a quarterly basis.  His proposal for quarterly review of reports and budget preparation was estimated not to exceed $2200.00.  Mr. Stanford asked the Board to direct AquaTest on which budget item this should go under.  The Board directed to put the yearly Budget cost with the Audit/CPA fees. Upon a motion made by Director Billings to approve Mr. Goedecke’s quote, seconded by Director Biondo and the motion was carried.

 

Adjournment:

 

The next meeting is scheduled for April 9th 2004.  There being no other business before the Board, Director Jordan moved to adjourn the meeting, seconded by Director Yoder, motion carried unanimously.

 

 

 

                                                            ____________________________________

                                                            Secretary for the Meeting