MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT   

 

Held:      Friday, January 20, 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

Radford K. Walker

David J. Biondo

Dennis S. Yoder

 

Also present; Ken Rupp, private District consultant, Dave Barwick, the Operator for the District, Terry Malcom, the Administrator for the District and Joan Fritsche, the District’s attorney.

 

Director Jordan was excused due to a conflict in his schedule pursuant to 32-1-905(1)(g), C.R.S.

 

Call to Order

Director Yoder 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 7:06pm.

 

Disclosure Matters

Director Yoder 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.

 

 

 

Approval of Minutes

The minutes of the regular meeting of the Board of Directors held December 16, 2005 were read, and upon motion duly made, seconded and unanimously carried, were approved with corrections, including the notation that Director Walker abstained from voting on the Minutes of the November 28, 2005, meeting.

 

Financial Matters

 

Director Biondo reviewed the financial statement and expenses. It was noted that the Park State Bank checking account has a balance of approximately $39,163. It was noted that the bank statement from Colorado Trust has not been received as yet and it was determined that an attempt will be made to obtain an online Statement.  Director Biondo also gave a report on the statement of the account of the District’s bond, which was received from Zions Bank.  Mr. Rupp had questions concerning the check register, specifically checks Nos. 1537 and 1538 and indicated that he would check on those items and inform the Board of his findings at the next meeting.  Mr. Malcom reminded the Board that he needs authorization to access the District’s accounts.  A motion was made, seconded and unanimously carried to approve the financial statements as presented.

 

Director Billings led a discussion and analysis regarding the District’s files and the manner in which the last District Manager/Operator had been conducting various aspects of District business and affairs.

 

The Board also discussed Account #11, 510 Banner Trail.  Mr. Malcom reported that the new owner of the property had contacted him and that the unpaid water bill balance should have been paid in February 2005, but apparently through an oversight it was not paid.  Arrangements have now been made between the Title Insurance Company and the new owner to pay the entire unpaid balance in the near future, of which balance exceeds $1500.

 

 

Annual Administrative Matters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joan Fritsche presented various documents to the Board for consideration, signatures and passage, including the following:

 

a).     Director Qualification Affidavits were filled out and signed by the Directors present.

 

b).   Disclosure Matters/Update General Conflict Forms were completed.

 

c).     Other Administrative Actions of the Board.

 

 

i.                 The approval of the Annual Administrative Resolution for 2006, which includes all issues listed below to subsection ix.  A motion to approve such resolution was made by Director Biondo after providing that the Resolution reflect that the polling place for the District be changed to 4455 Fountain Avenue, Cascade, CO and the official custodian of the District’s records be changed to Terry Malcom.  The motion was seconded by Director Walker and passed unanimously.

 

ii.               Elect Board Officers.  It was determined that the Directors positions did not need voted on until May 2006.

 

iii.             Designate/Confirm Newspaper for legal notices.

 

iv.             Designate/Confirm 24-hour posting location.

 

v.               Designate/Confirm regular meeting date, time and place.

 

vi.             Designate/Confirm three posting locations.

 

vii.           Designate polling place.

 

viii.         Designate DEO.

 

ix.              Designate official custodian of District records.

 

Various discussions were had regarding the above topics, including: The 2006 Board of Directors election.  Ms. Fritsche presented a memo regarding the election laws and regulations to the Board.  It was noted that all Directors except Director Yoder would be up for election in May 2006.

The Board discussed changing the required notice postings for the monthly board meetings to an annual posting rather than posting separate postings each month.  After such discussion it was decided to post annually rather than monthly.

 

Ms. Fritsche suggested that a District Accountant should be selected.  After discussion, Mr. Malcom was directed by the Board to contact Dawn Schilling, CPA, to determine if she would be interested in serving in that capacity, and if so, to obtain a letter from her detailing her anticipated charges.  The letter will be presented to the Board for consideration at the February meeting.

 

After further discussion, Mason Russell West, LLC, CPA’s, were selected to conduct the annual audit.  An appropriate motion was made to that effect, seconded and was unanimously approved.  An Engagement Letter was executed by the Board for delivery to the auditors.

 

d).      The Approval/Renewal of District consultants was then considered by the Board, as per below:

 

i.                 District Administrator – Terry Malcom

 

ii.               General Counsel – Seter and Vander Wall, P. C.

 

iii.             Accountant – Dawn Schilling (prospective)

 

iv.             District Engineer – JDS-Hydro Consultants, Inc.

 

v.               Water System Operator – Dave Barwick

 

vi.             Private Consultant – Kenneth Rupp

 

e).  A Resolution Affirming the District’s Water Activity Enterprise was presented.  A motion to approve such resolution was made by Director Billings, seconded by Director Walker and passed unanimously.

 

Ratification of Contractor’s Agreements

 

 

 

 

 

 

 

 

Administrator’s Report

 

 

 

 

 

Operator’s Report

 

 

 

 

 

 

 

 

 

 

Attorney’s Report

 

 

 

 

 

 

 

 

 

Consultant’s Report

 

 

 

 

 

Other Business

 

 

 

 

 

 

 

 

 

A motion was made by Director Billings to affirm the Agreement with Terry Malcom to provide administrative services to the District.  Director Biondo seconded the motion.  The motion passed unanimously.

 

A motion was made by Director Billings to affirm the Agreement with David Barwick to provide operation services to the District, after deletion of Paragraph 2.13.3, Director Yoder seconded the motion and the motion passed unanimously.

 

Mr. Malcom reported that the transition was proceeding well and that all customer account information had been loaded into the RVS billing system; he noted that there were approximately 5 customer mailing addresses that were incorrect and he would be revising them shortly.

 

Mr. Barwick reported on operational matters that he had handled during the month; he indicated that much of the time has been spent familiarizing himself with the system.  He is working on  developing a water management system, which will include a preventative maintenance program and he will report back to the Board when completed.  The preventative maintenance program is to be submitted for Board approval and/or changes at the February Board meeting.  Mr. Barwick also stated that the customer meter check and reconciliation would begin this month.

 

Ms. Fritsche presented further information regarding the May 2, 2006 regular Special District Election.  She also noted that it would be advisable to notify District customers of the election.

 

Mr. Rupp reported that no further progress has been made with the Camp Iana/CSU Easement, the Trout Haven Resort Easement, or the Augmentation and Exchange Water Court Decree.  Ms. Fritsche urged completion of the easement issues in the near future. 

 

The District’s consultant, Ken Rupp, reported that he has been monitoring the transition and it is proceeding satisfactorily to this point, However obtaining District files has been difficult.  Mr. Rupp agreed to contact Aqua Test regarding obtaining copies of the Peachtree financial information files of the District. 

 

Discussion ensued regarding the previous Board decision to raise the monthly minimum service fee on all customers’ accounts by $10 per month.  Director Yoder stated that no increase should be implemented without proper notice being given to the District’s customers.  Due to several issues being raised concerning the 2006 Budget, Director Yoder felt that since no notice had been given to the District’s customers and could not reasonably be given until the February billing, it would be advisable for the Board to have further discussion concerning both the need of the rate increase and the Budget issues at the February Board meeting.  Mr. Rupp requested the opinion of Ms. Fritsche regarding the Advance and Reimbursement Agreement as it pertains to the 2006 Budget.  The discussion of monthly water service rate fee increase was tabled until the February Board meeting.

 

It was noted by Ms. Fritsche that the Board might want to look at amending the 2006 Budget later in the year after a better understanding of the actual income/expense situation is obtained.

 

Discussion ensued regarding the transition of the District’s consultants.  It was noted that the UNCC should be notified of the District’s new system operator and contact numbers.

 

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 10:35 PM.

 

 

                   _________________________________________

                              Secretary for the Meeting