MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT   

 

Held:      Friday, July 21, 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

Sandy D. Zuniga

 

Also present:  Ken Rupp, Private District Consultant, John Volk, ECO Resources, Inc., Operator for the District, Terry Malcom, District Administrator, and Mrs. Jenny James, the District’s Recorder of Minutes.

 

Director Yoder was excused pursuant to 32-1-905(l) (g), C.R.S.

 

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 7:02 pm.

 

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 June 16, 2006 were read, and upon motion duly made, seconded and unanimously carried, were approved.  Secretary Zuniga signed a copy of the minutes for the District’s formal records.

 

Financial Matters

 

 

 

 

 

 

 

 

 

 

 

 

 

Mr. Malcom reviewed the monthly financial statements and expenses with the Board and asked everyone if they had a chance to review the packet he passed out.

 

Discussion ensued regarding the past due list. Mr. Malcom commented that 12 on the list had been collected since the first of the month.  He also stated 386 Gerka Lane was vacant and that the lean on the taxes would be paid when the property was sold.

Shut-off notices were sent to Pierson, Wolf, and Toler, even though their bills were small.  Late charges were added to the property at 214 Gerka Lane.

 

Discussion ensued regarding the books being closed out on July 14 and that the water usage was estimated for one month.  Billing is bi-monthly and water usage is estimated every other month.  There is a large discrepancy in meter readings and bills and a lot of the historical data has been lost.   The District should know within another month where the water loss is or if it is only on paper.

 

Discussion ensued regarding the confusion on getting meters and remotes read.  Mr. Malcom stated the billing system does everything in hundreds and that on some of the meter readings the zeros were put in the wrong place.  There are three types of water meters. Badgers, Invensys and Sensus, these meters will all read 7 numbers, however all Sensus and Invensys Meters will be reprogrammed to read 5 digits, while the Badgers already have the 5 digits showing.  Aqua Test knew how the numbers were read because they put in the meters.  All replacement meters are going to digital and as existing Sensus and Invensys meters are verified, they will be re-programmed to read 5 digits.  ECO Resources, Inc. has been instructed to write all five numbers down when reading meters and give the results to Mr. Malcom. 

 

Discussion ensued regarding verification of water meters.  As of today, 65 meters have been verified and 5 meters need to be replaced.  So far most all of the meters that were installed by Aqua Test were not security wired.  This is not a problem with the Senses meters but is with the Badgers.  The District is trying to get away from using the Badger meters because of this reason.  As the meters are verified they will also be security wired.  A letter will be sent out to all district customers when meter verification has been completed to notify them that the rules and regulations will be enforced and that there can be a $1,000 fine if any of the security wires are tampered with.  Director Billings is helping contractor read and verify meters for the next two weeks.  The meter contractor does have an ID badge.  Replacement meters cost approximately $150.00 each plus tax.  Colorado Springs Utilities will calibrate meters for $28 each which is less than ECO Resources,
Inc. charges.

 

Discussion ensued regarding a copy of last year’s annual assessment for Mountain Mutual Reservoir Company in the packet.  Every year in November Mr. Malcom has to account for the water so that Mountain Mutual Reservoir Company will know how much water to release.   This entails keeping the total water pumped every month and accounting for all horses in the District. 

 

Discussion ensued regarding the placement of the Morgan’s meter and remote when their old meter and remote is replaced.  The new Sensus meter will be mounted wherever the existing one is located, the remote can be moved to a different location however the cost of the move will be the responsibility of the Morgan’s.  If the Morgan’s want to move it, they have to come before the board for permission.  ECO Resources, Inc. will have to hook it up. 

 

Director Zuniga had a question regarding the Tax Distribution System as to the type of taxes that were charged.  They are property taxes.

 

A motion was made to accept the financials as presented.  The motion was seconded, unanimously carried and was approved.

 

Administrator’s Report

None

 

 

 

Operator’s Report

 

Mr. Volk, ECO Resources, Inc. submitted his written Operator’s Report to the Board. 

 

Discussion ensued regarding Well number 3.  The tests came back as low risk.  It has been flushed once, however the water looked cloudy.  The well will be flushed again because of the recent downpour of rain.  As It may be under surface influence. The flush will take approximately one and a half to two days.  As soon as it’s flushed, it will go back on line. Rain water was flooding around building and a trench may be dug down the other side of the well for the run-off of water. 

 

Discussion ensued regarding Well number 5 going back on line.  It’s a Moderate risk.  Well #5 is one of the older wells.  Tests are required by the State every 3 years. It is a candidate for redrilling however the permit to re-drill well #5 has expired and it will cost about $500 for another permit.  Will know more of what is going on after the meter is read.  The water tank static level pressure system is reading an error of about 2 feet off actual level; a technician will be needed to recalibrate it.  Liquid Engineering Inc will be contacted for an estimation of work that needs to be done with regards to the required water tank maintenance.

 

Mr. Volk stated there was a small leak on the flow-out valve on building B; a continuous drip, not a big leak, but could get worse.  Mr. Rupp will look at it.

 

Director Zuniga asked when meter readings are done.  Meters are read at the end of the month starting around the 25th.  Mr. Malcom will give Mr. Volk meter reading worksheets to record readings on, ensuring all 5 digits are read.  The worksheets have to be back to Mr. Malcom by the first of the month. 

 

Discussion ensued regarding Teller County locates.  There is a liability issue and there possibly needs to be some type of blanket waiver in the contract for ECO resources Inc.  The District should not be paying ECO Resources, Inc. for locates that do not need to be located.  Common sense should be used on each ticket when locates are needed.  Mr. Rupp knows where all the valves in the system are.  Mr. Migchelbrink from ECO Resources, Inc. will be contacted regarding this situation. 

 

Discussion ensued regarding 17,000 gallons of water that was lost from a water hydrant.  The bill has not been completed as yet and needs to go to Teller County.  The repair costs on the hydrant, ECO Resources, Inc. time and Mr. Rupp’s time needs to be calculated. 

 

Director Zuniga asked if ECO Resources, Inc. read the meter at 14 Donzi Circle.  Mr. Volk will check for verification.  Director Zuniga also wanted to know how long it takes to read meters each month and wanted a schedule for future meter readings.  Mr. Volk told her that readings are done at the end of the month and that it only takes one day.

 

Discussion ensued regarding a service line at 66 Golden.  There has been no contact with the owner.  The service line valve was not operable due to being clogged with dirt and debris.  The valve was apparently broke at the service line connection on the owner’s side of the line during the process to clean it out either by ECO Resources Inc, or the Owner.  There was a recommendation to the Board to help pay to repair line.  Mr. Rupp will assist in the repair once the owner is ready to proceed. 

 

It was noted that the District has a lot of repair materials and an inventory will be completed to assess the current supply.

 

Attorney’s Report

 

None Given

 

Consultant’s Report

Mr. Rupp confirmed no additional movement on any of the easements or the water decree. 

 

 

Other Business

 

 

 

 

 

Discussion ensued regarding the contract with ECO Resources, Inc.  Director Billings talked with Mr. Migchelbrink where a tentative agreement was reached on the contract costs and hours.  However, there was a problem with the fee list page regarding materials. An additional 12.98% fee was added for materials due to ECO Resources Inc costs when purchasing materials. As the District has their own materials and accounts and does not need to purchase them through ECO Resources, Inc this should not be an issue. The number of hours was changed from 12 to 10 and there should be a contract for a $1475.00 monthly fee shortly with ECO Resources, Inc. The contract will be sent back to Mr. Migchelbrink and a copy will be sent to Ms. Joan Fritsche for legal review. 

 

Director Billings will send information to Ms. Fritsche for the Demand Letter so that she can send it out.

 

Director Billings has 65 meters verified now.  Will be doing more tomorrow and Sunday.  Out of 65 found 5 that may need to be replaced.  Director Billings has system to do reset on meters. 

 

Director Walker mentioned that the next Bond payment is due in December and again next June.  He also stated the bond payment will go up in 2008.  This will be discussed further at the next meeting.

 

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 10:05 PM.

 

 

                 

 

 

 

_________________________________________

                              Secretary for the Meeting