MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, March 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 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 David J. Biondo Dennis S. Yoder Also present were Dave Stanford and Nancy Reeder with AquaTest, Inc.; and Gary Grenzke of Hix Insurance. Ken Rupp, private consultant to the District, was not in attendance due to work commitments. He did provide a written report for the meeting, which is attached to these minutes.
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 p.m.
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 February 18, 2005 and as part two of the continued meeting from January 21, 2005, were read, and upon motion duly made, seconded and unanimously carried, were approved as revised. A copy of the February 18, 2005 minutes was signed by Secretary Yoder.
Insurance Presentation Financial Matters	Mr. Grenzke of Hix Insurance gave a short presentation, explaining that his company specializes in insuring small water and sanitation districts. He suggested the Directors consider allowing him to place the District’s insurance needs out for competitive bid even though the District’s current insurance does not expire until December 31. His company can offer broader coverage, less expensive rates, and a personal business relationship, not just a toll-free phone number. The Directors asked Ms. Reeder to provide Mr. Grenzke with the information he needs to quote the insurance package. Director Jordan had emailed to everyone his report on the financial overview of the District as of February 28, 2005. The District is showing a profit of $3,900 for February. 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. Ms. Reeder reported that the 2004 financial records have been delivered to the auditor. The Directors briefly reviewed the ballots from IREA concerning Amendment 37. The Directors agreed to vote “yes” and Director Billings signed the ballots.
Executive Session	A motion was made for an Executive Session of the Board of Directors for determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations and instructing negotiators as per CRS 24-6-402(4)(e). The motion was seconded and unanimously carried. The Board was in Executive Session from 7:35 pm to 8:20 pm.
Manager’s Report	Mr. Stanford reported a leak was found and repaired near 124 Daniwood Grove. He showed the Directors a piece of plastic pipe removed from the area. One section of the joint had duct tape around it. He has no way of knowing if the pipe was originally installed that way or if that is an earlier repair. Either way, the duct-taped joint appeared to have been leaking for some time before it finally failed. A discussion was held regarding re-drilling well #5. In his report, Mr. Stanford expressed concern over the easement for Well #5 and the owner of lot 9. A discussion ensued regarding the notification of the owner of Lot 9, regarding the Districts intent to re-drill Well # 5. Mr. Stanford raised some additional concerns regarding the area around Well #5. He feels that the area may be considered alpine wetlands by the Army Corps of Engineers and that the District should verify that before any drilling begins. He agreed to talk to Terry McKee of the Army Corps of Engineers regarding this issue. Mr. Stanford also has concerns about bog-like area that Well #5 is in. In his experience, there is at least a 60% chance that wells in this type of area produce poor-quality water. If that was the case, there is no room at the well site for a water treatment plant and the District cannot afford to treat the water. Another water district in the area recently had this same problem. The Directors discussed other options – re-drilling well #3 or drilling a new well. The pros and cons of all the options were discussed. The well valley and recreational areas are both solid rock and not suitable for a new well. Well #3 could be a good possibility, as it sits on the Divide Gravels. Re-drilling that well may increase water production; however, it is impossible to tell at this point. A private well in that area produces 12 gpm, which is a significant increase over the current production of 1.5 to 3 gpm from well #3. Director Jordan again stated that the District could probably afford to drill one well but certainly not two wells. He asked if the District really needed to increase production at this time. Mr. Stanford stated that the feels the District will have sufficient water for the summer even with additional taps, and the District does not need to increase production. He strongly suggests that the District save as much money as possible during the next year, and put that aside for future wells. The leak that was just repaired was losing approximately 9000 gallons a day, and the wells were able to keep up without problem. The Directors directed Mr. Stanford to contact the Army Corps of Engineers regarding the wetland issue, and not to contact the owner of lot 9 at the present time.
Attorney’s Report	Mr. Rupp's written report to the Directors is attached to these minutes, and is summarized below. Regarding the Camp Iana Easement, Mr. Rupp spoke with Jackie Chambers of CSU. Mr. Rupp has received the AutoCAD file, will modify it accordingly and then prepare the necessary paperwork for the Directors' review. Regarding the Augmentation and Exchange Water Court Decree, Highland Lakes Water District has filed the only Statement of Opposition. Mr. Felt, attorney for Highland Lakes, would like to personally view the area. Mr. Rupp recommends that the inspection be postponed until after the spring thaw when the live stream flows are visible. 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.
Other Business	The Directors briefly discussed the Trout Haven promotional letter. Mr. Rupp’s latest version of the letter looks very good. Director Billings will email this copy to the Directors for their review. He would like to finalize this at the next meeting and get the letter mailed out. Director Biondo reported that he did not find any available grant money, but he would continue to look
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 9:35 p.m _________________________________________ Secretary for the Meeting