OF THE ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, May 9, 2003 at 7:00 p.m. at 400 Midland Street, Suite 222, Woodland Park, Colorado.

Attendance	The regular meeting of the Board of Directors of the Arabian Acres Metropolitan District was called and held as shown above and in accordance with the statutes of the State of Colorado. The following Directors were in attendance: Kenneth R. Rupp Alan L. Jordan Gene L. Billings David J. Biondo Absent: Dennis Yoder (absence excused) Also present were Joan M. Fritsche, Seter & Vander Wall, P.C.; Dave Stanford and Beth Elzas, AquaTest, Inc.; and John McGinn, JDS Hydro Consultants, Inc.
Call to Order	Mr. Rupp noted that a quorum of the Board was present and called the regular meeting of the Board of Directors of the Arabian Acres Metropolitan District to order.
Appointment of Acting Secretary	Due to the absence of Mr. Yoder, the Board appointed Mr. Biondo as Acting Secretary of the Board.
Disclosure Matters	Ms. Fritsche advised the Board that written disclosures had been filed with the Secretary of State’s Office with regard to any potential conflicts of interest and that 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.
Public Comment	No members of the public were present except as noted above.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held on April 11, 2003 were read, and upon motion duly made, seconded and unanimously carried, were approved.
Financial Matters	Ms. Elzas reviewed the financial reports and payment of claims through May 31, 2003, which were accepted by the Board. Ms. Elzas also reviewed the Past Due Customer List with the Board. Mr. Billings inquired about stipends for attending prior District meetings. Ms. Elzas explained those would be forthcoming, once the District’s account was in order.
Approval of Requisition #2	The Board reviewed the items listed on Schedule I to Requisition #2 for reimbursement by the Trustee from the District’s Project Fund. The Board discussed the $2,500 invoice from Holme, Roberts & Owen, LLP (HRO) for legal services rendered in connection with the bond issuance, an item on Schedule I. Ms. Fritsche explained that Mr. Matlosz inadvertently left off $5,000 in fees and charges owed to HRO from the bond distribution settlement sheet (Sources and Uses of Funds). Mr. Matlosz’s firm paid $2,500 of that amount and requested the District pay the balance. Upon discussion, motion duly made, seconded and unanimously carried, the Board approved Requisition #2 authorizing the Trustee to disburse $42,058.47 from the Project Fund.
Updated Financial Run	Mr. Rupp requested appointment of a committee to review and monitor finances in the same manner as the cash flow analysis prepared by George K. Baum, Inc. in conjunction with the District’s bond issuance. Mr. Jordan volunteered to assist Mr. Rupp on the project. The Board directed Mr. Rupp and Mr. Jordan to serve as the committee.
Taps Not In Use – Monthly Fee Payment	The Board reviewed the list of customers and pertinent contracts for customers that have taps but are not currently online. Under Arabian Acres Water Company ownership, these customers were not required to pay the monthly service fee. After discussion, upon motion duly made, seconded and unanimously carried, the Board approved charging four customers the $35.00 monthly fee. The Board directed Mr. Stanford to notify the parties of the monthly charge and potential loss of the tap if not paid. Discussion of the Trout Haven line and corresponding taps was continued until the next meeting when more information concerning additional taps could be presented to the Board.
Amend Interim Rules and Regulations	Mr. McGinn and Mr. Stanford presented proposed revisions to Appendix B (Service Line Standards) and Appendix C (Local Distribution/Collection System Standards) to the Board. The Board reviewed the proposed changes in detail and upon motion made, seconded and unanimously carried; the Board accepted the revisions to Appendix B and C, as modified. As part of the discussion of subsection B-2.7, the Board approved ownership of customer meters by the District. A postcard will be included with monthly invoices requesting customers authorize the District to take over ownership and operations and maintenance responsibility of the water meters. The Board appointed Mr. Billings as editor of the District’s quarterly newsletter. The first edition will contain an article notifying District customers of this change in policy. The District will maintain the tap fee at $6,000 until the next meeting. The Board directed Mr. McGinn to use the new Cash Flow Analysis to be prepared by Mr. Rupp and Mr. Jordan in determining a proposed rate structure to be reviewed by the Board at its next regularly scheduled meeting.
Manager’s Report	Mr. Stanford reported on a line break that occurred in late April and reviewed a draft of the 2003 annual consumer confidence report that will be mailed to all customers in June. Mr. Stanford requested authorization from the Board to complete improvements to recently installed Well # 8 at a cost of approximately $900.00, which the Board approved.
Attorney’s Report	Ms. Fritsche requested the Board approve and sign an Amended and Restated Advance and Reimbursement Agreement by and between Arabian Acres Water Company, LLC and the District, which acknowledges the sum of $62,854.00 owed to AAWC under the Closing Settlement Sheet and Advance and Reimbursement Agreement. The Board had authorized a partial payment of $1,100,000 to AAWC and AAWC carried the outstanding balance until the end of the calendar year. This was approved at the April 11, 2003 meeting.
Other Business	Website a. Cash Flow Analysis will remain an internal, working document. The District’s budget is a pubic document and can be posted on the website, although the 2003 budget was based on best “guesstimates” at the time. b. E-mail access by the general public will only be to the District Manager from the website. Electronic Bill Payment – currently not an option. AquaTest will keep the Board apprized when this service may be available. SDA Workshop and Conference – The Board approved sending Mr. Stanford, Ms. Elzas and any Board members available to the June SDA workshop. Directors are to e-mail Ms. Elzas with availability so that she can send in the appropriate payment and forms. Additional Sources of Revenue a. The Board directed Mr. Billings and Mr. Yoder to research the Tower Link America proposal for a cell tower site within the District. b. The Board accepted Mr. Rupp’s offer to research whether the District can “sell” excess water to outside temporary sources.
Adjournment	There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned.

Secretary for the Meeting