MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, January 19, 2007 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: Radford K. Walker Dennis Yoder David J. Biondo Sandy D. Zuniga Also present: Mr. Terry Malcom, District Administrator, Ms. Joan Fritsche, Attorney for the District, Cindy Weakland, paralegal, Mr. Charles Hallam, resident of the District 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 7:15 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	Mr. Charles Hallam attended the meeting to observe the proceedings. He commented Mr. Rupp took him on a tour to look at the water distribution system and is interested in becoming a Board member.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held December 15, 2006 were read. Minor changes were made on page 5 following discussion. 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.
Director Matters	Discussion ensued regarding adding a new item to the agenda next month; appointing a new Board member. Mr. Hallem is interested in becoming a Board member. Notice to appoint a new member to the Board must be advertised in the newspaper for 10 days before such appointment. Discussion ensued regarding updating the Annual Conflicts of Interest Disclosure Forms. Board members will verify information and sign affidavits stating they are still qualified to be Directors on the Board. The only conflict is property ownership. This is completed every January and filed with the Secretary of the State of Colorado. All Affidavits of Director Qualification were signed and notarized by Cindy Weakland, paralegal. A package will also be sent to Mr. Hallem for his review.
Approval of Administrative Resolution for Year 2007	Discussion ensued regarding the approval of the Administrative Resolution for Year 2007. Ms Joan Fritsche, Attorney, walked through the resolution for the year 2007. The Board can elect to compensate itself. At present, its $75 per meeting for term that started in July and can go up to $100, however, this is not board- wide. The District is required to set a meeting schedule for the third Friday of every month and to file a boundary map each year or a letter saying boundaries haven’t changed. Tax districts and contact information need to be updated. Ms. Dawn Schilling will be designated to validate the budget. The Mil Levy needs to be certified on or before December 15. This is not an election year so the polling place can be outside the District. The Board of Directors needs to elect the Board officers for the year. A motion was made to keep the same officers as last year. Further discussion ensued regarding the election of officers. Director Walker wanted to know if anyone else was interested in being President. Director Yoder doesn’t mind being President but really thinks someone should be on site. Director Walker stated he would stay as President for the next three months. He is thinking about selling his property and will not be eligible to be a Board member. An amended motion was made regarding keeping the same officers as last year for the next three months only; Director Radford Walker will remain as President, Director Sandy Zuniga will remain as Secretary, Director Dave Biondo will remain as Treasurer, and Director Denny Yoder will remain as a Board member at-large. Upon motion duly made, seconded and unanimously carried, the motion was approved.
Adoption of the District’s Water Activity Enterprise Resolution	Discussion ensued regarding the Adoption of the District’s Water Activity Enterprise Resolution. This is to conform to Tabor accounting fund. The term grant is not defined under Tabor. The most grant money the Board can receive is $10,000. A motion was made to adopt the District’s Water Activity Enterprise Resolution. Upon motion duly made, seconded, and unanimously carried, the motion was approved.
Appointment/Renewal of Consultants	Discussion ensued regarding Appointment/Renewal of consultants. Since there was no discussion, a motion was made to appoint/renew consultants. Upon motion duly made, seconded, and unanimously carried, the motion was approved.
District Administrator Report	The District Administrator’s Report was handed out to all Board members. This month’s bill from Eco Resources has not been received. Water loss is at 35%. There were adjustments on two different items. The bank statement and bill recap is in package. Delinquency notices were sent to several people. The deadline for paying is next Tuesday after which the bill will be certified with the County for payment. There are two in foreclosure and the bills will be paid when the property is sold. Discussion ensued regarding emergency service calls. The District doesn’t currently have an emergency number. If the District hired an answering service, it would cost $50 a month for 100 calls. ECO Resources should be called directly for water emergencies. It was suggested that ECO Resources’ emergency number be put on the website. Discussion ensued regarding paying Mason Russell West, LLC, for the 2006 audit. A motion was made to pay the charge of $3800 to Mason Russell West, LLC. Upon motion duly made, seconded, and unanimously carried, the motion was approved. A motion to approve the financials and disbursements was made. Upon motion duly made, seconded and unanimously carried, the financials and disbursements were approved.
System Operator’s Report	The District Board Members reviewed the Operators Report. ECO Resources was not represented at this month’s meeting. Director Zuniga brought up a water pressure problem and stated the pressure is lower than normal. ECO Resources will be made aware of it. Discussion ensued regarding meter replacement and security wires. ECO Resources was told to put security wires on meters that were broken, those without security wires and on all new ones. There is a discrepancy as to what meters ECO Resources replaced and what security wires were put on according to their report and to Mr. Billings report. A better overall report is needed from ECO Resources. Discussion ensued regarding problems with ECO Resources. There are billing and communication problems and specific items in the contract that are not being done; for instance, taps. The operator doesn’t come to meetings and they are not accountable for their hours. Travel time is huge. There has been no response to the letter sent regarding items on their bills. It was suggested a face-to-face meeting be held with ECO Resources, Ms. Fritsche, the District’s attorney and two people from the Board. Mr. Fritsche will contact ECO Resources and have the meeting in her office. To date, Mr. Malcom has not received any complaints about ECO Resources from customers. Further discussion ensued regarding the meeting with ECO Resources. It was suggested a check for the balance owed of $1,906.50, be taken to the meeting. It was decided to talk with them first regarding the questions on their bills.
Attorney’s Report	None Given Discussion ensued regarding the letter sent to AquaTest. There has been no response and AquaTest missed their deadline by several weeks. There was a question as to if it was really worth pursuing. A complaint was filed with the State of Colorado that AquaTest was overcharging for materials. The Board will check with the State of Colorado to see if anything has happened. The Board has a responsibility to look out for the needs of the customers. It’s up to the State of Colorado now.
Legal Issues
Consultant’s Report	Discussion ensued regarding the consultant’s Report. Mr. Rupp was unable to attend the meeting. Director Yoder commented regarding the Water Court Decree stating, as determined from the telephone conference between himself, Dave Lindholm and Ken Rupp, it would cost more than the $2,000 maximum, as set by the Board in last month’s meeting, to continue the process for applying for a Temporary Water Supply Plan. The Board is looking at a cost of $2000 - $3500 for the application for the Temporary Water Supply Plan. The District needs new sources of revenue and both Goldrush and Sierra are interested in buying water. A motion was made to move forward with the process and have the Engineer put the documentation together authorizing up to $3500 in costs including filing fees and attorney’s fees for the application of the one year Temporary Water Supply Plan. Upon motion duly made, seconded and unanimously carried, the motion was approved.
Old Business	Discussion ensued regarding the bond proposal. A formal proposal on the bond is not ready yet. Director Biondo will contact Mr. Allen Matlosz for a schedule of events. Discussion ensued regarding a list of maintenance tasks that still needed to be accomplished. Since it is the winter season, work will not be accomplished until Spring.
New Business	Discussion ensued regarding grant writers. Mr. Malcom will put a list together for next month’s meeting. Board members will also be thinking of a list of projects to be brought up at next month’s meeting. Discussion ensued regarding posting a notice for the appointment of a new Board member. This will be published in the newspaper for 10 days and by next month a person can be appointed to the Board. Discussion ensued regarding bringing in more revenue. It was suggested water rates be raised but not the $40 monthly service charge. Ms. Joan Fritsche suggested a sub-committee be formed to work through the idea. Customers also need to support the rate increase. This will be discussed at next month’s meeting. Next month’s agenda will be posted on the web site.
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 10:30 p.m. Next Meeting: February 16, 2007
	_________________________________________ Secretary for the Meeting