MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, June 16, 2006 at 7:00 p.m. at 4455 Fountain Avenue, Cascade, CO.

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 Dennis S. Yoder Radford K. Walker David J. Biondo Sandy D. Zuniga Also present: Terry Malcom, the Administrator for the District, John Volk, Eco Resources, the Operator for the District, and Jenny James, the District’s recorder of 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 7:05pm.
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.
Public Comment	No public comment was received.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held May 19, 2006 and the Emergency Meeting held May 31, 2006 were read, and upon motion duly made, seconded and unanimously carried, were approved.
Financial Matters	Mr. Malcom reviewed the monthly financial statements and expenses with the Board. Discussion ensued regarding receivables and that it was going down; $8,000 received. Billing is every other month so this is a shortened recap. A report from Mr. Barwick stated 800,500 gallons of water was pumped last month. There have been two tap fees this month. The bond payment was also made this month. Mr. Malcom pointed out that Mr. Coffman’s account was not a misprint. Mr. Coffman had sent two checks, one went through and the other bounced so an adjustment was made. Another account hasn’t been paid since December. The tenants left and Access Port, LLC took it over. They guaranteed payment of the bill at the next billing cycle. A Trout Haven resident (renter) has left and the water bill has not been paid. There was a motion in last month’s minutes regarding sending copies of bills to the owners. Director Billings will find out who the owner is and will give Mr. Malcom their address so that he can mail them the bill. The actual amount past due is around $3,000 and some are pending. A number of water services over 60 days on the past due list have already been shut off. About six will be certified in October with Teller County. Director Biondo brought up an item on the check register. It was determined that the check had been voided out. Mr. Malcolm sent everything to the auditor. There is a balance of $34,082.80 in the checking account. The account at County Trust has $22,361.37. There was $353 deposited today. The next bond payment for $45,000 is due in October. No more tax money is expected in until then. A motion was made to accept the financials as presented. The motion was seconded, unanimously carried and was approved.
Administrator’s Report	See Written Report
Operator’s Report	Director Billings introduced Mr. John Volk from Eco Resources, the new senior water operator, and let him know that a monthly report was needed regarding the amount of water pumped and sold for the Board meetings. This included water actually being used and what was currently being produced. Mr. Volk stated he was waiting on files from Mr. Barwick who had dropped them off to Mr. Malcom. Some files had been brought in previously by Mr. Barwick and Mr. Rupp gave everything to Brenda at Eco Resources. Mr. Malcom recently received an e-mail from Mr. Barwick but hasn’t received any more files from him. Apparently, Mr. Barwick has a few more files. Mr. Volk will let Director. Billings know if he doesn’t receive the records. Discussion ensued regarding operational issues, i.e., how much water is being used, meters that need calibration, and physically checking all meters, determining the oldest ones and replacing them. The top 20 oldest meters will be replaced. There are a total of 147 accounts. Mr. Volk will be certifying all meters. Some of the remotes have already been verified. Director Billings stated he had a database for verifications, and some Aqua Test files on customers that he will give to Mr. Volk. Director Billings will also give Mr. Volk the Monitoring Plan that Mr. Chris Strole was working on. Discussion ensued regarding well #5 and that it needs to be on line in order to help the water supply. Mr. Volk will order the MPA (microscopic particular analysis) for wells #3 and #5 to determine if wells are usable. If a negative test comes back, alternatives will be discussed at that time. Mr. Volk will also complete a master meter calibration to determine if there are any indications of leaks and to verify water usage. Tank level indicators will also be checked for accuracy and maintenance. Mr. Volk stated a phosphate kit is needed to determine how much lead is in the system. These kits run approximately $150. Mr. Volk also stated the monthly bacteria sample was negative. Mr. Rupp had previously completed a preventative maintenance survey for things that need to be done with the system and pump house buildings and gave it to Mr. Volk. Mr. Volk’s e-mail address is: Jm_volk@msn.com Discussion ensued regarding paying high school students to verify meters. Mr. Rupp had recommended paying someone between $482 and $672 for meter verification. A check for $72 was written to the two students who were doing the meter verification checks. Further verification is ongoing and should be completed in approximately three to four weeks. It would cost $44 an hour to have Eco Resources Inc complete the meter verifications.
Attorney’s Report	None Given
Consultant’s Report	There is currently no movement on any of the easements or the water decree.
Other Business	Discussion ensued regarding Director Zuniga being on both the POA and the AA Metro Board. It was determined that there is no conflict of interest by her being on both boards. Discussion ensued regarding District Legal counsel, Joan Fritsche. Mr. Malcom received a letter from Ms. Fritsche indicating she was leaving her current position at Seter and Vander Wall, P.C. An e-mail was sent to all AA Metro Board members. Ms. Fritsche is moving to a new firm in downtown Denver and will be running a special district section and indicated the fees to AA Metro District should be less as she can negotiate in this new position. There was further discussion regarding leaving AA Metro files with Seter and Vander Wall, P.C or moving them to the new firm. The Metro District started with Seter and Vander Wall, P.C.; however, the person that would be overseeing the District would not have the direct knowledge and would have to be brought current. It’s important to have someone who knows what’s going on without spending District funds bringing someone new up to speed. Ms. Fritsche knows the District and has given excellent service to the District. A motion was made to move the District’s legal services from Seter and Vander Wall, P.C. to Foster, Graham, Milstein, & Calisher LLP. The motion was seconded, unanimously carried, and approved. A thank-you letter will be written to Seter and Vander Wall, P.C. for there excellent service to the District, but will however advise them that the District would like to continue with Ms. Fritsche at the new firm. Ms. Fritsche’s new address is: Foster, Graham, Milstein & Calisher LLP.621 17^th Street, 19^th floor Denver, CO 80802 e-mail address: joan@fostergraham.com, phone 303-333-9010; fax 303-333-9786. Discussion ensued regarding the Demand letter that was sent to Ms. Fritsche for AquaTest’s electronic files. If AquaTest complies, their files can be converted to Quick Books. The Board was unsure of the status of the letter due to Ms. Fritsche leaving Seter and Vander Wall, P.C. Director Billings will check on status. Discussion ensued regarding Director Billings finding information for State Grants that the District can apply for on line. There is also information on grants that were issued for 2006 and all the rules in order to apply. The eligibility list is in there also. The grant has to be submitted during March of each year. Director Billings asked the Board members if anyone knew someone that could write grants to let him know so that something could be submitted next year. Director Billings discussed the temporary contract written up for Eco Resources. The contract was originally written by Ms. Fritsche and Eco Resources and was combined from both sources. A copy of the contract was sent to all Board Members for input. If the contract is finalized before July 21, 2006, a special meeting may be called. The original contract bid was for $1100 a month including 2 visits per week. Director Billings, Director Zuniga and Mr. Rupp will work on the contract and send the Districts counter offer to Eco Resources Inc for further negations.
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 9:36 PM.
	_________________________________________ Secretary for the Meeting