MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, September 12, 2003 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 as shown above and in accordance with the statutes of the State of Colorado. The following Directors were in attendance: Kenneth R. Rupp Dennis Yoder Alan L. Jordan Gene L. Billings David J. Biondo Also present were Joan Fritsche, Seter & Vander Wall, P.C.; and Dave Stanford, AquaTest, Inc.
Call to Order	Mr. Rupp 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	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.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held on August 8, 2003 were read, and upon motion duly made, seconded and unanimously carried, were approved.
Lois Nuessel Property	Director Rupp gave the Board the history of the Nuessel tap, located at 171 Silbani Trail. Apparently Ms. Nuessel purchased a tap from the Arabian Acres Water Company several years ago. After a disagreement with A.C. Rupp, Ms. Nuessel drilled a well. The owners of the adjacent property, 252 Silbani Lane, the Dorrs, and Ms. Nuessel reached an agreement for the Dorrs to use Ms. Nuessel’s lateral service line. The Dorrs paid a tap fee to the Water Company and pay monthly service charges. Should Ms. Nuessel desire to re-connect to District facilities, the Dorrs will have to install their own connection, at their own expense (pursuant to an agreement reached between the Dorrs and Nuessel).
Financial Matters	Mr. Stanford discussed the financial reports through August 31, 2003 and payment of claims through September 30, 2003, which were accepted by the Board.
2004 Budget	Discussion of the 2004 Budget was tabled until next month. Copies of the proposed budget will be distributed and the Board will have a chance to review them. The budget hearing has been scheduled for the November regular meeting.
Manager’s Report	Kutsu Ridge Main Extension. Mr. Stanford gave the Board an update on the project. Earlier this afternoon, the excavator hit approximately forty feet of rock approximately 200 yards from the end of the excavation. The excavator expects to bring in a company over the weekend to blast and AquaTest expects to finish the project next week. A lengthy discussion concerning cost over runs followed. The Board directed AquaTest to proceed with extending the Kutsu Ridge main from its current location to Lot 30 at a maximum cost of $27,000, including a maximum authorization of $5,000 for blasting. The Board directed AquaTest to prepare itemized invoices for this project prior to the next regular board meeting and prior to the distribution of any checks for work done on this project or materials purchased. The Board also directed AquaTest to open a tax-exempt wholesale materials and supply account for purchases on behalf of the District.
	Well No. 1. Mr. Stanford reported that the pump was replaced at a cost of $802.00. Well No. 8. Mr. Stanford reported that lightening damaged the pump savers, which have been replaced at a cost of $150.
	Storage Tank. The level indicator unit is on its last leg due to lightening damage. A new unit will cost approximately $2,400. Utility Notification Center of Colorado. The District is required to join this organization because it owns buried utility lines. The cost is $25 per year. The District responds to utility notification requests and must mark line locations within a certain number of days. If a homeowner or contractor breaks or damages a marked line, they are responsible for costs associated with fixing the line. If the District fails to properly mark a line, the District would be responsible for all costs associated with the break or damage. Meter Installation. A meter was recently installed incorrectly by a plumber. After Mr. Stanford required the plumber to correct the problem, the plumber purposefully broke the meter’s reading capability and the meter had to be replaced. The homeowner is responsible for collecting costs from the plumber. Construction Water Taps. Based upon a request from one of the Directors, Mr. Stanford explained the District’s policy concerning installation of construction taps. The property owner must follow the District’s Rules and Regulations concerning the purchase of a tap, including submittal of the proper documentation and payment of the tap fee. The District does not offer a separate tap solely for construction purposes.
Attorney’s Report	Requisition No. 3. Upon discussion, motion duly made, seconded and unanimously approved, the Board directed Ms. Fritsche to submit Requisition No. 3 to the Bond Trustee for the release of funds from the District’s Project Account of up to $27,000. AquaTest will send itemized invoices to Ms. Fritsche so that funds may be transferred prior to the next Board meeting. Legal Description. Ms. Fritsche inquired into the status of revising or correcting the District’s legal description. Director Rupp informed the Board that a surveyor is working on the project and it will be completed in the next week or two. Once a revised description is available, Ms. Fritsche’s office will determine the course of action necessary to correct the situation. Options include revising the court order forming the District or bringing a formal inclusion or exclusion proceeding. Title Commitment. Seter & Vander Wall is waiting for the final title commitment and insurance policy to complete and distribute closing books for the purchase of the Arabian Acres Water Company assets. Mr. Rupp informed the Board that the Water Company has not received these documents from Security Title. Director Rupp and Ms. Fritsche will follow up with Steve Elak at Security Title and try to resolve this matter.
Other Business	Sale of Excess Water. Director Rupp has a water lawyer reviewing the water court decrees on behalf of the Arabian Acres Water Company to confirm that sale of excess District water is possible under the constraints of the decrees. Director Rupp has also spoken with potential buyers. No action of the Board was requested. A discussion ensued concerning the benefits of the sale of water (generate funds and utilize water rights) vs. the risks to the physical distribution system that could occur. Bidding Procedure for Projects Valued at less than $25,000. In light of the unanticipated costs incurred in extending the main in Kutsu Ridge Road, the Board discussed instituting an informal bidding/cost estimate procedure for projects anticipated to cost less than $25,000, which triggers the statutory public bidding requirements. The Board directed Ms. Fritsche to obtain more information on this issue and provide the Board with alternatives at the next meeting.
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