MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, August 8, 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 of the Board 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 July 11, 2003 were read, and upon motion duly made, seconded and unanimously carried, were approved.
Financial Matters	Mr. Stanford reviewed the payment of claims through ____________, 2003, which were accepted by the Board.
Kutsu Ridge Main Extension	After a lengthy discussion concerning capital improvements, upon motion duly made, seconded and unanimously carried, the Board directed AquaTest to proceed with extending the Kutsu Ridge main from its current location to Lot 30 at a maximum cost of $ 22,000 and to include “tie-ins” where appropriate along the line.
Sale of Excess Water Mountain Mutual Reservoir Company	Director Rupp gave the Board an update on his research into the possible sale of excess District water to temporary outside sources. There is no action for the Board to take at this time. Mr. Stanford informed the Board that the Mountain Mutual Reservoir Company’s annual stockholders’ meeting will take place on August 21, 2003. None of the Board members expressed an interest in attending this year and the proxy form was executed by the Board.
Manager’s Report	Mr. Stanford discussed AquaTest’s new practice of accepting credit card payment for monthly water bills. AquaTest will pass on its service cost to customers utilizing this service and will notify customers of the additional charge. Mr. Stanford also discussed problems AquaTest has encountered with posting the District meeting notices. The Arabian Acres POA and Trout Haven POA will arrange to have extra keys made for their respective announcement boards so that AquaTest can post the meeting notices inside those boards. Mr. Stanford reminded the Board that budget season is approaching. The Board named Paul Goedecke as the District’s budget officer in its annual administrative resolution adopted in December 2002. Beth Elzas will be preparing the District’s 2004 budget for review by Mr. Goedecke.
Attorney’s Report	Ms. Fritsche requested the Board sign the official District Rules and Regulations for copying and distribution by AquaTest. Director Billings will also add the Rules and Regulations to the District’s website. Ms. Fritsche distributed a resolution and memorandum for discussion by the Board concerning the use of electronic mail. Correspondence of elected public officials in the form of electronic mail may be a considered a public record under the Open Records Act and may be subject to public inspection. Upon discussion, motion duly made, seconded and unanimously carried, the Board adopted the Resolution Regarding Electronic Mail. The Board and District consultants agreed to use the metrodistrict@aametro.org address to communicate with the Directors between Board meetings. Ms. Fritsche raised the issue of a discrepancy in the District’s legal description filed with the District Court. Directors Rupp and Jordan will research the issue and Director Rupp will follow up with Ms. Fritsche in order to resolve the issue prior to the end of the year.
Other Business	SDA Annual Conference. Upon discussion, Director Billings appeared to be the only Board member able to attend the Special District Association’s annual conference, scheduled for September 24 – 26. Upon motion duly made, seconded and unanimously approved, the Board authorized the District to expend up to $500 per director on registration fees and lodging for the conference. DOLA Budget Workshop. Director Jordan reported on the Department of Local Affairs budget workshop he recently attended.
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