RECORD OF PROCEEDINGS

_________________________________________________________________________

MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, March 16, 2007 at 7:10 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. & Mrs. Callum, residents 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 7:10 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. & Mrs. Callum attended the meeting and discussed their concerns regarding a notice that was sent out with the water bill and some personal observations. There was a recent notice of excessive lead content in the water. The cover letter was vague and there was no identifying information as to the source of the letter. It was not dated nor signed and nothing as to what the District was doing about what appeared to be a serious problem. Mrs. Callum wanted to know if it was a small or large amount of lead that was found. Mr. Malcom stated that the test was done in July of last year and remedial action was completed in August. Ms. Shiloh Williams is the compliance Officer for Eco Resources and wrote the results without any explanation. The water complies with the minimum EPA and State standards that are required. Mr. Malcom suggested the results be completely rewritten and sent out or posted on the website for clarification. The Board only received four calls regarding the lead test out of 150 people. Another issue of concern is the District’s web site. Mrs. Callum hoped it would provide further information on the lead content in a question and answer format. The web site is a valuable and useful tool for the Board and its members. Mr. Billings left in December and the web site has not been updated. Director Walker will call Mr. Billings regarding updating the website. The last issue of concern is the testing dates for different contaminants. In reviewing the 2005 water report the collection dates for testing different contaminants range from 2002-2005. Mrs. Callum wanted to know if testing was done quarterly or once a month. Testing is quarterly for most contaminants. Lead is different than most of the other tests. Eco Resources is taking all of the tests they are required to take. Lead content has to be reported. Treatment has been completed. Mrs. Callum thanked the Board for listening and was grateful for what they were doing. The Board thanked Mr. & Mrs. Callum for coming.
Approval of Minutes	The minutes of the regular meeting of the Board of Directors held February 16, 2006 were read. Minor changes were made 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.
New Business	Mr. Malcom suggested the Board skip to Item 11b of the agenda since Mr. John Sullivan arrived. The Board looked at their financial situation and decided to pursue new revenues in the way of grants. Mr. Sullivan talked to Mr. Malcom regarding a list of items for grant money that Eco Resources came up with. The list that was put together several years ago was also reviewed. Various grants were discussed to help replace items, upgrade the water system, extend mains to get new customers on line and new wells to meet financial obligations in the future. Grant money can be applied for capital investment in addition to better water quality. Upgrading or re-drilling wells is high on the list. Eco Resources indicated that one of the wells is under the influence of ground water. Mr. Sullivan suggested a committee be put together, a combination of Eco Resources personnel and one or two of the Board members to identify what the District’s needs are, prioritize them and bring the list back to the board to vote on. A grant writer is not necessarily needed. There is an application process and a section for a short summary of how the money will be used. Discussion ensued regarding selling water to the surrounding community and if there was grant money for that purpose. Mr. Rupp is working on a temporary water permit. It is a potential revenue and the District would be fulfilling the need of providing water service to other communities. There are several other things that are on the list that should be packaged and asked for. Dola representatives are there to help local governments. Mr. Dave Biondo and Mr. Chuck Hallam will be on the committee along with an operator from Eco Resources.
District Administrator Issues	The District Administrator’s Report was handed out to all board members. There are two in foreclosure and about half of one has been collected. Discussion ensued regarding a proposed contract sent by Liquid Engineering. They would like it signed by the board’s President. The proposal is $2,000 for 4 hours and $450 an hour after that. Someone from Eco Resources should be there when they come. Any maintenance work over 6 hours will be coordinated through the district representative. This will be written on the agreement before signature. A motion was made to sign the agreement with the above changes. Upon motion duly made, seconded, and unanimously carried, the motion was approved. Discussion ensued regarding the approval of cash disbursements. Received bills from Ms. Joan Fritsche for October and November 2006. There is no bill for December. $6,000 out of $11,000 is bond expenses. Written into bond is QTex and not local districts attorney fees. Paid $1900 through 2006. Unpaid is January and February’s bills which leaves $3,000 of non-bond bills and $6,000 in bond expenses. Director Walker will talk to Ms. Fritsche regarding the matter. Ms. Fritsche told Mr. Matlose to send any bond paperwork through her. Director Biondo will contact Mr. Matlose and have him reroute paperwork through him. There is a requirement for some review by the lawyer on bond issues. The financials had to be verified by Zions Bank. The paperwork on the bonds has gone through and up to Mr. Matlose to sell the bonds. Ms. Fritsche attended three board meetings that had nothing to do with bonds and her bills for January is $3100 and February is $1314; a total of $4415. 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. Discussion ensued regarding two different water production numbers for the month of February. The water production numbers were wrong and the one in the packet has the right numbers. The bill for Eco Resources was paid and sent to Texas except the $41.60 that was credited. Director Yoder suggested the Board meet with Eco Resources at least every two months. A question was asked if Eco Resources ever went to Trout Haven with Mr. Rupp. Director Walker will call Mr. Rupp.
District Representative Report	The District Representative Report was handed out to all Board members. No locates have been done. A comment was made regarding Trout Haven getting ready to expand. Water piracy also needs to be investigated.
District Consultant Report	Mr. Rupp has resigned from being Consultant and Director Yoder will draft a letter of recognition for the Board to sign.
Legal Issues	No Attorney’s Report was given. Director Walker will talk to Mr. Rupp regarding the Camp Iana/CSU Easement and the Trout Haven Resort Vacated Roadway Easement. Director Yoder will talk to Mr. Rupp regarding the Augmentation and Exchange Water Court Decree.
Old Business	Discussion ensued regarding a summary of the bonds. Director Biondo stated there would be $22,000 in savings. The savings will be high for the next five years. The bill was paid for frozen main #67 in Deer Ridge Trail. Discussion ensued regarding problems with the pump a Well #6. It will cost approximately $700-800 to repair. Black Mountain will do the work. A motion was made to approve $800 for the installation of a used pump at Well #6. Upon motion duly made, seconded and unanimously carried, the motion was approved. Discussion ensued regarding preparing a balance sheet. The cost would be $2500 for an accountant to prepare a balance sheet and hand to auditor. The list from the Accountant is longer than the list from the Auditor. Ms. Dawn Schilling will be sent everything for the trial balance. This is due 31 July and board is not approving any money for the auditor to prepare the balance sheet at this time.
New Business	Consideration and adoption of a water usage rate increase. Public Hearing opened at 10:05 p.m. Discussion ensued regarding adding $1 to the water bill which would generate over $670 dollars for two months and between $800-900 in the summer time. There was only one tap last year. It was suggested adding $2 per thousand instead of $1 to the water bill. Raising it to $2 would be equivalent to one tap. This would be a $10 increase per billing period. The notice for the increase was posted well in advance to the 72 hours required by law. Formal posting was made last week in three places. The water bill hasn’t been raised in three years. The Public Hearing closed at 10:25 p.m. Director Walker asked for any further discussion. A motion to increase the water bill by $2 per thousand was made. Upon motion duly made, seconded and unanimously carried, the motion was approved. Discussion ensued regarding a proposal to change the due date for the water bill from the 20^th to the 27^th of the month. The change would benefit the customers and give an extra week to pay their bill. A motion was made to change the due date of the water bill to the 27^th of the month. Upon motion duly made, seconded and unanimously carried, the motion was approved.
Open Forum	Discussion ensued regarding reassessing the services of Eco Resources. They propose being on site only twice a month instead of once a week. The Board wants them on site once a week. Director Walker commented regarding the water rate increase and suggested it be raised yearly.
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: April 20, 2007
	_________________________________________ Secretary for the Meeting