RECORD OF PROCEEDINGS

_________________________________________________________________________

MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, April 19, 2007 at 7:02 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: Radford K. Walker Dennis Yoder David J. Biondo Sandy D. Zuniga Charles Hallam Also present: Mr. Terry Malcom, District Administrator, Mr. John McGinn, Engineer, and Jenny James, the District’s recorder of minutes.
Call to Order	Director Walker 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 Walker 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. No conflict of interest was noted.
Public Comment	None
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held March 16, 2007 were read. Minor typo changes were made. A motion was made to approve the amended minutes. Upon motion duly made, seconded and unanimously carried, the minutes were approved. Secretary Zuniga signed a copy of the minutes for the district’s formal records.
District Administrator Issues	The District Administrator’s Report was handed out to all board members for review. Discussion ensued regarding the Income Budget Statement. The total repairs, maintenance and operators fees are hard to break out. Repairs and maintenance are separately billed. There are pending fees that haven’t been paid. Both columns indicate high amounts, but there have been issues with leaks and frozen pipes. The District’s Operator fees are high as well as legal fees. Discussion ensued regarding the Past Due List. A couple of past dues have been recouped. Those that are over 61 days are look at. One mortgage has been paid since the first of the month. Three are in bankruptcy and two will be paid when sold. Mr. Baughman’s account has been adjusted because of the running water hose. Discussion ensued regarding e-mails between Mr. Rupp and Mr. Malcom regarding a request for a waiver to provide water service. The owner is a contractor and would prefer to drill a well. He would have to have a water main close to him in order not to have a well. It’s approximately 150 feet to the main. The approximate cost would be $3,000 and the District would have a lifetime customer. If the District decides to contract with him, the District Representative will talk to him and see what he would charge to do the extension. Director Yoder suggested a second bid if it gets close to $5,000. Actually up to $3500 is all right, however, up to $4500 will get a second bid. There was a motion for the Board to authorize Director Biondo to contract with this individual up to $3500 and anything above $3500 would get a second estimate. Upon motion duly made, seconded and unanimously carried, the motion was approved. Discussion ensued regarding the subordinate position of the Rupp family related to the bond. Mr. Rupp’s lawyer hasn’t approved it as yet, however, by email Ms Fritsche asked that the Board approve the agreement and ratify it. There was a motion for the board to approve the agreement, which is similar to what was in the old bond. Upon motion duly made, seconded, and unanimously carried, the motion was approved. Discussion ensued regarding the attorney fees. A check for $3300 covers everything through December 2006. Mr. Malcom passed out a copy of the invoices from Ms. Fritsche. Last month the bill totaled $11,000 which included the bond and year end expenses. Mr. Malcom proposed everyone look over the invoices and pay the $3300 through December. Director Walker will contact Ms. Fritsche to clarify the other amounts and decide whether to pay the balance next month. The Board kept Ms. Fritsche because she was familiar with the District. Ms. Fritsche’s fees associated with the bond was over $6,000. One of the issues on the invoice included a meeting in February. Nothing has been paid since October. Director Walker recommended paying Ms. Fritsche $3300. Director Biondo suggested a letter be sent regarding legal services that were rendered but not asked for. A motion was made to pay the bill as presented. Upon motion duly made, seconded and unanimously carried, the motion was approved. Another motion was made to write Ms. Fritsche a letter regarding bond issue expenses and other charges for services rendered but not asked for. Upon motion duly made, seconded and unanimously carried, the motion was approved. Discussion ensued regarding the new bond. When the bond closed, a lower interest rate was quoted and therefore saved the District $6700. Discussion ensued regard a couple of items that Mr. Barwick found in his files that weren’t paid. A check has been made out and he will be paid. Discussion ensued regarding the cash dispersals. There is a check for Eco that will be signed; however, the contractor needs to be billed. Eco’s bill is for two water leaks and their time. Discussion ensued regarding the website. Director Walker wrote Mr. Billings an e-mail regarding updating the website. Mr. Billings will be talking to Mr. Rick Zuniga to take over the website. Mr. Zuniga will do it for $25 a month. Discussion ensued regarding the Audit. Ms. Dawn Schilling wants $2500 to do a trial balance. If Ms. Schilling does the Trial Balance, it would then be sent to the Auditor and the Board would have to pay the Auditor also. Director Biondo will give all his information to Mr. Malcom. Director Walker’s father is a retired Auditor and will ask him if he would be willing to do the Trial Balance for the Board. A motion to approve the financials and disbursements was made. Upon motion duly made, seconded and unanimously carried, the financials and disbursements were approved.
Old Business	Mr. Malcom suggested the Board skip to Item 10c of the agenda since Mr. John McGinn, Engineer, arrived to talk about the projects for grant proposals. The committee met last week with the grant person and it was suggested the Board put together a list of projects. Discussion ensued regarding a problem in getting filters for the wells. A qualified installer has to install them and the Board would be looking at about $6,000 for expenses. There is also the possibility of re-drilling well #5 and holding it back for later use. Another possibility is to re-drill well #3. A well permit needs to be applied for immediately. Mr. McGinn doesn’t think the District will have a problem getting the permit. The cost will be approximately $7,000-$8,000 to drill a hole. With casing and a pump the finished well would be approximately $30,000. It will take 60 days for a permit to go through. The deeper the well, the cleaner the water and fewer problems with filters. Director Biondo will meet the contractor at both sites for an actual bid to re-drill the wells. Once the permit is approved, the money is there. Discussion ensued regarding other projects. Eco suggested increasing tank storage for fire flow. Getting new lines is more important and expanding the service to Trout Haven. More users can be added to the Trout Haven area with a few extensions. Mr. McGinn suggested the Board send a letter to the people at Trout Haven and find out how much interest there is and the reality of them being put on the water line. Mr. McGinn suggested the Board put everything in one big grant instead of individual grants and to get a drill permit. This should be in the fall of 2007 for 2008 money. The money could be made available fairly quickly. Part of it may be in the form of an interest loan. The Board could always withdraw. The Board will pick out the most important projects and define the projects in a broad manner. If selected, the Board would have some maneuver room as to where the money goes. There have also been problems with water levels dropping on well #5. Any problems with wells will put the District higher on the needs list. A package will be put together this summer. Mr. Malcom will draft a letter to be sent to Trout Haven.
System Operator’s Report	The District Board Members reviewed the Operators Report. Eco Resources was not represented at this month’s meeting. Eco Resources is more expensive then the Board can afford; however, a retired person would not be able to handle everything. Director Biondo went through Eco’s report. They are doing maintenance that they should not be doing. A handyman should be hired to do all carpenter maintenance and not Eco Resources. Eco’s bill has to be justified every month.
Legal Issues	No Attorney’s Report was given. No report on the Camp Iana/CSU Easement and the Trout Haven Resort Vacated Roadway Easement nor on the Augmentation and Exchange Water Court Decree.
Old Business	Discussion ensued regarding the status of the bond refinancing. It is almost completed and $156,086.45 was sent to Colorado Trust. Discussion ensued regarding water quality. The results are back from the State and everything looks good. A better system needs to be in place regarding handing out water notices.
New Business	Discussion ensued regarding well house filter replacement. Four new filters were found. Discussion ensued regarding finding a new system operator. It was suggested a notice be sent out. Director Biondo thinks they are trying the best they can however, they are spread thin. The majority of the Board is not interested in finding a new system operator at this time.
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 p.m. Next Meeting: May 18, 2007 ____________________________ Secretary for the Meeting