MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, February March 18September 16, 2005 at 7:000 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, as continued from the January 21, 2005 meeting, 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 Dennis S. Yoder David J. Biondo Directors Dennis S. Yoder and David J. Biondo were excused, pursuant to 32-1-905(1)(g), C.R.S. Also present were Dave Stanford and Nancy ReederDebbie Stanford withof AquaTest, Inc.; and Ray Gary Grenzke of Hix InsuranceRussell of Mason, Russell, West. 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 BillingsYoder 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 7:12005 pmp.m.. A motion was made for the Board to appoint Director Walker as the Acting Secretary for the meeting. The motion was seconded and unanimously carried.
Disclosure Matters	Director BillingsYoder 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 18August 19, 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 Director Yoder. The minutes of the regular meeting of the Board of Directors held January 21, 2005 were read., and upon A motion was duly made to accept the first set of minutes of the two continued meetings of January 21, 2005 and February 18, 2005, with the second set of minutes to be considered for approval at the March 18, 2005 meeting., The motion was seconded and unanimously carried, were approved. A copy of the January 21, 2005 minutes was signed by the Acting Secretary, Director Walker.
Financial Matters	Mr. Grenzke gave a short presentation of Hix Insurance, explaining how 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.It was reported that there have been three taps for the year to date. The financials show the District has $44,982.22 in Colorado Trust and the Park State Bank account has a balance of $25,842.03. 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 January 31, 2005February 28, 2005. The District is showing a profit of $8,416, duethank to a tap fee received in January.$3,400 for February. The mMonthlymonthly 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	At 7:35 p.m., the Board of Directors moved into Executive Session in accordance with C.R.S., Title 24-6-402(204) to discuss well #5 administrative and procedural issues. The Executive Session ended at 8:20 p.m. and the meeting moved back into regular session.
District Manager ReportOperationsManager’s Report Attorney’s Report Other Business Adjournment	It was discussed and approved that Mr. Stanford would proceed with the excavation and resetting of the valve at the end of Donzi Trail. Mr. Stanford stated that this will be accomplished as soon as an excavator could come and complete the work. Mr. Stanford reported that the system is working very well. The tap at 105 Denwood occurred without problem 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 then 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. The Directors directed Mr. Stanford to write a letter to the lot owner putting her on notice that the well was being re-drilled and asking for her cooperation regarding use of her driveway. 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 Director Jordan feels that there will be sufficient income from taxes to pay the June bond payment, so some of the funds in Colorado Trust could be used to re-drill the well, or at least start the process of re-drilling the well. Mr. Stanford stated that the well is not necessary at this time. He recommended that the District wait until its financial status is more secure and re-evaluate the situation again in May or June. Mr. Rupp recommended that the District proceed with the process of re-drilling the well now, and then proceed in stages, as District funds will allow, for the remainder of the work necessary to get the well online and running. This way, a good portion of the work would already be done and the critical time factor would be greatly reduced, the well would already be drilled, should the District need additional water productionit. He also suggested that there maymight be ways to save money on the new well by detailed analysis and selection of the precise well site, in engineering costs or by using some of the existing underground piping for conduit to run wires, etc. to the pumphouse. Director Jordan questioned why the District doesn’t re-drill well #3 instead. At the present time, well #3 is working fine but well #5 has been shut down due to possible surface water contamination. Mr. Stanford will meet with Dave of Black Mountain Drilling regarding their time frame for drilling. After a discussion, it was determined to specify a 6” hole with a 4” casing. 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 well #3 at 1.5 to 3 gpm. 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. Mr. Stanford stated that the feels the District does not need to increase production and will have sufficient water for the summer, even with additional taps. 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.Mr. Stanford also reported that a letter had been received from the homeowner at 747 Kutsu Ridge Road whose home had recently burned. They are requesting that they not be charged a water service fee for the next three months until they can assess what their course will be. A motion was made and carried that AquaTest should write a letter to the homeowner approving their request and asking them to write again in three months if they need more time or if they are ready to resume receiving bills. Mr. Stanford also reported that we have numerous homes where the owner did not turn their water meter and remote over to the District at the time the District was created. AquaTest was instructed to identify those homes and work toward each one receiving a new letter asking them to sign the meter over and include the costs involved for them if the need would arise for it to be replaced. Regarding the Camp Iana Eeasement, Mr. Rupp spoke with Terry of Colorado Springs Utilities (CSU). The District's 2” main of the Districtsproperty has been plotted to depth and position. Mr. Rupp asked for a copy of the information, from CSU,, so he could approach Camp Iana for the easement. Regarding the Augmentation and Exchange Water Court Decree, Mr. Stanford stated that he has met withthe Jim Felt, Highland Lakes Water District’s attorney. As far as Mr. Felt is concerned, Highland Lakes will not oppose the Decree as long as the scope has not changed from what he and Mr. Stanford discussed. Anyone opposed to the Decree has until February 28, 2005 to filestate their Statement of Oopposition. 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 due to his work schedule. Annual Administrative Resolution: The Directors reviewed the Annual Administrative Resolution as revised by Seter & Vander Wall. A motion was made for the Board to approve the Annual Administrative Resolution as revised. The motion was seconded and unanimously carried. The President and the Acting Secretary signed the document. The Directors discussed the Trout Haven promotional letter. Director Walker will retype the letter to make it more professional and formal in tone, and email the revised letter to everyone for their review. There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 8:40 PM. _________________________________________ Secretary for the Meeting
Attorney’s Report	None. Regarding the Camp Iana Easement, Mr. Rupp spoke with Terry of Colorado Springs Utilities (CSU). The District's 2” main has been plotted to depth and position. Mr. Rupp asked for a copy of the information from CSU, so he could approach Camp Iana for the easement. Regarding the Augmentation and Exchange Water Court Decree, Mr. Stanford stated that he has met with Jim Felt, Highland Lakes Water District’s attorney. As far as Mr. Felt is concerned, Highland Lakes will not oppose the Decree as long as the scope has not changed from what he and Mr. Stanford discussed. Anyone opposed to the Decree has until February 28, 2005 to file their Statement of Opposition. 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 due to his work schedule.
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 lookThe budget committee reported that the budget is progressing and they hope to have a preliminary to present at the next meeting. The Request For Proposal created by Ms. Fritche of Seter and Vander Wall was presented and a motion was made and carried for it to be placed in various publications by Director Billings.
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 910:3540 p.m. _________________________________________ Secretary for the Meeting