MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, June 13, 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 Dennis Yoder Alan L. Jordan Gene L. Billings David J. Biondo Also present were Kim Seter, 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.
Disclosure Matters	Mr. Seter 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 May 9, 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 June 30, 2003, which were accepted by the Board. The Board discussed the issue of shutting off service for nonpayment. Upon motion duly made, seconded and unanimously approved, the Board voted to add appeal language to the first delinquency notice and directed Ms. Elzas to draft the provision. Ms Elzas also reviewed the Past Due Customer List with the Board.
Rules and Regulations	Mr. McGinn presented a memorandum to the Board outlining his suggested revised rate and fee structure for the Board’s review (Appendix A). Upon motion made, seconded and unanimously carried, the Board set the following rates and fees and effective dates: Tap Fee - $8,000 (effective June 14, 2003); Monthly Service Charge $40; and Usage Fee of $8.00 per 1,000 gallons (both effective July 1, 2003). No amendments to other fees or charges were discussed.
Trout Haven	The Board discussed the Trout Haven line agreement assigned to the District and upon motion duly made, seconded and unanimously approved imposed the minimum monthly service fee on a year round basis on all Trout Haven Resort meters.
Manager’s Report	Mr. Stanford reported that the Past Due Customer Report will be distributed by account numbers instead of by customer names. The Rules and Regulations outline a procedure for AquaTest to follow concerning notice and shutting off service. Mr. Stanford reported that small lighting strikes created fluctuations in the flow of electrical charges the past few weeks and caused the water tank to overflow one day. Otherwise the system is running well.
Attorney’s Report	Mr. Seter explained the change in the amount paid by the Trustee pursuant to Requisition #2 ($17,058.47), verses the amount authorized by the Board last month (42,058.47). Mr. Seter also reviewed a memorandum prepared by his office outlining each of the Bond Trust Accounts held with Zion’s First National Bank, the Trustee.
Other Business	SDA Workshop and Conference – Four Board members and Ms. Elzas will be attending the June SDA Regional Workshop. Additional Sources of Revenue: a. Update on Tower Link America proposal for a cell tower site within the District - Director Billings. b. Update on sale of excess water to outside temporary sources – Director Rupp. Newsletter – Director Billings distributed a sample of the proposed District quarterly newsletter for the Board to review.
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