MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, October 10, 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 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 and Joan Fritsche, Seter & Vander Wall, P.C.; Dave Stanford and Beth Elzas, AquaTest, Inc.; Pete Kuyper, Trout Haven/Lost Dutchman Resort; and Jackie McGhee and her son, property owners of Lot 6 and 7, Trout Haven Estates.
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	Ms. McGhee informed the Board that the McGhees recently purchased Lots 6 and 7 on Tioga Trail in Trout Haven Estates. She inquired whether it would be feasible for the District to serve the property, the timing of such service and inquired regarding the tap application process. Director Rupp reviewed the procedure for submitting a tap application to the District Manager. Once the McGhees have formally requested the tap, the District Manager will present the Board with costs and options. The McGhees left at the end of the discussion.
Trout Haven Line Presentation	Director Rupp introduced Mr. Kuyper to the Board. Mr. Kuyper is the owner and developer of the Lost Dutchman/Trout Haven Resort. Mr. Kuyper gave the Board an overview of the long term plans for the Resort and surrounding property. As part of the discussion, Mr. Kuyper requested that the Board “not object” to the vacation of a portion of Trout Haven Road in connection with land use approvals the Resort is seeking from Teller County. The section of road appears to run north of the pavilion; however, a physical roadway does not exist on the site. The District is an interested party because the District is party to an agreement entered into between the District and the Resort, whereby the District retains certain rights of use of this subject main. The District also is interested in the future purchase of this main. Easement issues were discussed by the Board regarding the main and the planned vacation of the roadway. Mr. Kuyper raised the issue of the long term use and ownership of the 4” water main running through the Resort. The main is owned by the Resort and operated by the District. Mr. Kuyper requested a commitment from the Board concerning the eventual acquisition of the main. He asked the Board to draft a proposal for the purchase of the line that is financially feasible for the District. Mr. Kuyper briefly mentioned the Resort’s water rights and the possibility of allocating excess rights in the future for District use. Mr. Kuyper left at the end of the discussion. The Board directed counsel to begin discussions with Mr. Kuyper regarding acquisition of the line.
Vacation of Trout Haven Road	Mr. Stanford reviewed the road vacation in more detail. Upon motion duly made, seconded and unanimously approved, the Board agreed to not object to vacating that section of Trout Haven Road, provided the Trout Haven Resort will grant the District an express easement for the existing main. Mr. Stanford was directed to complete and submit the County form.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held on September 12, 2003 were read, and upon motion duly made, seconded and unanimously carried, were approved.
Financial Matters	Ms. Elzas reviewed the financial reports through September 30, 2003 and payment of claims through October 31, 2003, which were accepted by the Board.
2004 Budget	Copies of the draft 2004 budget were distributed by Ms. Elzas. A brief discussion followed. Ms. Elzas needs more information from Paul Goedecke, the District accountant in order to complete the budget and mill levy certification. Mr. Stanford recommended tabling the discussion and holding a special meeting to review the budget in detail. The Board selected Saturday, November 15, 2003 at 10:00 a.m. as the date and time for a special meeting to be held at Al Jordan’s office (County Assessor). Director Jordan informed the Board that one mill equals $3,100 for the District.
Manager’s Report	Mr. Stanford reviewed the Kutsu Ridge Main Extension project and issues that arose during construction. The total cost of the project was $28,975. AquaTest will make personal visits to residences that can be served by the extended line. A mailer will also be sent to the owners of vacant lots informing them of the availability of service. Mr. Stanford informed the Board that the District will switch from treating the water supply with soda ash to a poly phosphate. The soda ash affects the taste of water and plugs lines in the control buildings. Mr. Stanford requested Board members publicly support the purchase of chip and seal equipment by the County in the interest of improving water quality for District water supplies by decreasing the use of magnesium chloride on all local roadways and especially on Silbani Lane, where several District wells are located. Mr. Stanford also discussed the adoption of a source water protection plan by the District.
Attorney’s Report	Requisition No. 3. Requisition No. 3 was submitted to the Trustee and paid in the amount of $27,000. Ms. Elzas provided itemized invoices to the Board. Legal Description. Director Rupp informed the Board that the legal description of the District is not available yet from the surveyor. Once the legal description is available, Ms. Fritsche’s office will draft and file with District Court a motion and proposed order to correct the District’s legal description. Title Commitment. The title insurance policy arrived from Stewart Title. Seter & Vander Wall will complete the closing book and send out copies to Arabian Acres Water Company and AquaTest. Bidding Procedure for Projects Valued at less than $25,000. Mr. Seter presented the Board with a sample contract form for the District Manager to use for construction projects valued at less than $25,000. The scope of work is attached as an exhibit to the contract. The Board can determine the number and names of contractors from whom to request bids or leave this to the discretion of the District Manager on a case by case basis.
Connector Reimbursement Agreements	A discussion was had concerning charging new customers for the cost of extending service to their properties and recouping those costs from future connections. Arabian Acres Water Company extended service using tap fees and did not require new users to pay for line extensions, due in part to the terms of the Water Court decrees. The Board directed Seter & Vander Wall, P.C. to prepare a memorandum outlining its options for requiring new customers to pay costs associated with extending service.
Other Business	Purchase of Trout Haven Main. The Board discussed the advantages of acquiring the Trout Haven main and the necessity of acquiring the line to serve additional properties. Based upon the request of Mr. Kuyper, the Board directed Seter & Vander Wall to be creative and begin discussions with Mr. Kuyper concerning a purchase agreement with terms feasible for the District. Informal Request for Exclusion. As County Assessor, Al Jordan received an informal request from the owner of Lot 7, Filing No. 5, Trout Haven Estates, for exclusion from the District. The majority of his lot is outside of the District in Section 15 and he has a well on his property. Mr. Seter explained that the District’s boundary as determined by its Water Court Decree as including all of Section 16. There are six lots (5-10) in Filing No. 5 that cross the section line between sections 16 and 15. Under Title 32, if the lots were excluded from the District, the properties would still be subject to the District’s mill levy to repay its current general obligation debt and the lots would still be in two taxing districts. The County Assessor would need to create a separate taxing district for portions of these six lots. The property owners would also be responsible for the costs of exclusion. Director Jordan will convey this information to the property owner.
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

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