MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, September 17, 2004 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: Radford K. Walker Dennis S. Yoder Gene L. Billings David J. Biondo Alan L. Jordan Also present were Dave Stanford and Nancy Reeder with AquaTest, Inc. Ken Rupp, private consultant to the District, was not in attendance due to work commitments. His report for the meeting 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.
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 August 20, 2004 were read, and upon motion duly made, seconded and unanimously carried, were approved as revised. A copy of the August 20, 2004 minutes was signed by Director YoderDirector Yoder signed a copy of the August 20, 2004 minutes.
Financial Matters	Director Jordan had emailed to everyone his report on the financial overview of the District as of August 30, 2004. The balance in the Bond FundColoTrust account is $47,464.35, which will cover the Bbond payment due December 1, 2004. The Park State Bank checkbook balance as of September 17, 2004 is $3,632.82, but there is still approximately $5,000.00 in water revenue still to be received by the end of September. Monthly expenses were reviewed. Ms. Reeder and the Directors reviewed the Cash Disbursement Journal. In addition to the checks listed on the report, one additional check has been written to Gold Rush Water for water delivery to 3142 CR 42. A motion was made for the Board to pay the bills as presented. The motion was seconded and unanimously carried. Mr. Stanford explained that AquaTest has purchased a newnew water billing software package tto replace the DOS program previously used. The DOS program was losing data and would not run properly under Windows XP Pro. Due to this change in software, the accounts and reports do not show any history yet. History will begin to show in a few months. Director Billings sent a letter to Paul Goedecke regarding his response time to questions posed by AquaTest. Mr. Goedecke apologized and stated he would respond to letters and E-emails in a more timely fashion. Director Billings asked Ms. Reeder to get in touch with Mr. Goedecke regarding accounting procedure changes, Ddistrict Aaccountant recommendations (financial changes 2003 and 2004), and the 2003 budget amendment. The line item budget calculation is correct and has been verified by Ms. Reeder. The Budget Committee has agreed to meet on Sunday September 26, 2004. Joan Fritsche will be at the October 15 Board Meeting regarding the budget.
District Operations Discussion	a. Administration: The fax from Mountain Mutual regarding the high number of UNCC locates from Teller County Department of TransportationRoad and Bridge was discussed. Mr. Stanford estimated that the locates called in by Teller County DOTRoad and Bridge is costing the District $400 more a month. It was suggested that Director Walker listenkeep an ear out for comments from other Special District Association members when he attends the SDA Annual Meeting later this month. Director Jordan suggested that all the districts affected by this, work together as a group – attending the Commissioner’s meeting, contacting the SDA’s lobbyist, etc. Ms. Reeder will make a list of the locate charges from UNCC to see what the increase has been. Director Billings will contact Mountain Mutual regarding this issue. b. Management: Director Walker did not have an opportunity to pursue the dry control line between Control Buildings A & B. Mr. Stanford suggested that this topic be tabled until the District’s finances will allow such expenditure. Mr. Rupp was not able to attend the meeting. See his written report regarding the Pavilion property easement (marked Item 6.b.2 on his report).
Manager’s Report	Mr. Stanford reports that the system is working well. The concrete pad for well #8 has not been completed yet due to a lack of funds at this time. The water from Well #5 must be treated as ground water, according to the September 10, 2004 letter from the State of Colorado. The well will be turned off, per Mr. Stanford’s recommendation. The re-drill permit for Well #5 is still in the permitting process withat the State. A lengthy discussion was held regarding the leak repair. The one resident affected by the leak has been set up with a temporary tank and water delivery by Gold Rush Water. The leak has not yet been located. The District’s water line traverses the city ofis running in a Colorado Springs Utilities (CSU) easement. The District cannot go on their easement without their permission and they will not allow “potholing” (drilling holes in an effort to locate the leak). Probing is not an option, due to the proximity of CSU’s lines. There are two suspect locations where a break/leak may be occurring. The first is located where CSU’s subcontractor repaired a portion of the District’s pipe during a CSU project. The second is the valve located at the bottom of the service line. To repair the line correctly, the entire 500’ line should be replaced. However, this is expensive and the District cannot afford to replace the entire line at this time. CSU also wants the new line, if the District were to install one, to run parallel with their lines and CSUthey will dictate where the shut-offs are located. See Mr. Rupp’s report regarding this issue (marked Item 7.d. on his report.) A discussion was also held regarding the temporary water solution for the resident at 3142 County Road 42. There is concern that with the cold weather coming, the temporary tank, lines and pump might freeze if the leak cannot be repaired in a timely fashion and the customer’s water restored. Upon a motion duly made, seconded and unanimously carried, AquaTest was directed to dig up and inspect the main line valve adjacent to 3142 County Road 42 (and repair, if necessary); and if there is no leak in that location, proceed to insulate the temporary water tank at 3142 County Road 42, all at a cost not to exceed $2,000.00.
Attorney’s Report Other Business Adjournment	Mr. Rupp stated in his report that no further progress has been made with the Camp Iana easement, as he is still waiting for AutoCad files from CSU. There has also been no progress regarding the application for the Aaugmentation and Eexchange Wwater Ccourt Ddecree. See Mr. Rupp’s report, items 8.a. and 8.b. The tap fee discussion was deferred to the next meeting, as this will give the Budget Committee time to review the District’s income and expenses. At Mr. Stanford’s suggestion, the Committee will use RateMaker software to aid in setting water rates and tap fees for the District. Director Billings stated that the marketing letters to potential customers were not sent out. He would like ideas from all Board Members on what the District can do to entice property owners to connect to the water system without a huge expense to the District. Any program that is implemented must be equitable to all propertiesy. Several suggestions were made, including a program to buy property owner’s wells or spread tap fee payments out over a period of time. Director Billings asked that each Board Member email their suggestions to him. He will compile the suggestions and present them to the attorney for their review first. 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 PM. _________________________________________ Secretary for the Meeting