MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT   

 

Held:       Friday, August 18, 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

Dennis S. Yoder

Radford K. Walker

Sandy D. Zuniga

 

Also present:  Ken Rupp, Private District Consultant, Roger Michelbrink and John Volk, Eco Resources, Inc., Operator for the District, Terry Malcom, the Administrator for the District, Mike Milton, Meter Verification, and Jenny James, the District’s recorder of minutes.

 

Director Biondo 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 July 21, 2006 were read with minor changes made 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.  The bank statement from Park State is in the packet.

 

Discussion ensued regarding various properties and amount owed.  The Past Due List is up-to-date and the receivables are down to $4100.  Most of the adjustments are pro-rated credits.  Some of the smaller adjustments are late charges.  The late charges were taken off of Trout Haven.

 

Discussion ensued regarding $4,000 being budgeted for electrical power services.  This time last year it was $8,000.  Mr. Malcom will check the budget to see if an error was possibly made.

 

Discussion ensued regarding an audit being done on water account deposits.  Audits are available for the past two years.  There was a $50 water deposit on each account that was originally a security deposit before the District took it over.  When the account was turned over to the District, the water deposits were never put into a separate account.  As a private company a separate account was not necessary.  It was suggested a separate account be made for the water deposits.  It was also suggested that the District do away with the water deposits or increase the deposit when new accounts were opened.  If deposit is changed, the rules would have to be changed.  However, since it is a District now, a lien can be put on the property for any unpaid bills and the deposit is no longer necessary.  A motion was made to terminate the deposit program and deposits that were paid would be refunded upon the sale of the property.  The motion was seconded, unanimously carried and approved.

 

Mr. Malcom stated a lot less calls have been received since the meters have been verified.  Brenda from Eco Resources is still on board to pick up the meter reading sheets.

 

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. John Volk, Eco Resources, Inc did not have a written Operator’s Report for the Board. 

 

Mr. Volk stated the status of the wells was the same as last month and that all wells with exception of # 7 are on line.  The BAC came back negative on the water quality test that was completed.  There are other tests that need to be complete before the end of the year.

 

Director Billings wanted to know what the status of Well #7 was since it was off-line the other day.  Mr. Rupp put a note on it stating that it needed to be diagnosed to see what was wrong.  There was a lightning storm that could have produced a lightning strike.  Well #7 is in the Recreation Area.  Mr. Volk will check.

 

Discussion ensued regarding the Miltronix.  It is a power drain and definitely needs to be shut off.  When the Static Level Pressure Sensor was put in, it was supposed to have been shut down but wasn’t.

 

Director Billings asked the members of the Board if they had a chance to look at the contract for Eco Resources.

 

Discussion ensued regarding water storage tanks and that another tank may be needed.  Mr. Rupp wanted to know if there was a set maintenance schedule for the water tank.  There is a lot of rust in the tank.    Underwater epoxy was done in places where the rust was two years before the District was formed; however, it needs to be re-done.  Maintenance for the tank was mentioned in the contract and the price appeared appropriate.  Mr. Volk does have a maintenance plan; however, it’s just a listing of maintenance that needs to be done.  Mr. Rupp wanted to know if the plan could be put on a separate sheet so that the board will know when the monthly maintenance is completed.

 

Director Billings told Mr. Volk that he should be doing regular monthly reports, no specific format, and that they could be sent e-mail.  A simplified version of the maintenance report can double as the report.  It was decided that a maintenance progress sheet would be copied and put into the packet given to Directors each month.

 

Discussion ensued regarding other maintenance items.  A schedule needs to be made on all valves.  Maps can be made up and the valves on the map can be numbered.  Also mentioned was a cement shield around Well #8, 24 inches of cement needs to be poured on each side of the well.

 

 

 

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.  Mr. Roger Michelbrink answered questions that the Board felt was important.  Mr. Michelbrink also stated that there were certain jobs that the maintenance crew did that the operators did not do.  Taps are different and done by maintenance people.  There is a problem with tap fees, locates, and communication.  There needs to be better coordination between Mr. Michelbrink and his people.  Mr. Michelbrink thinks the average tap fee is around $57 per hour for 5 hours.  This is sending someone from Denver to perform the tap; however, Mr. Michelbrink will check with his maintenance people for the correct amount.  Mr. Rupp would like to be present when Eco Resources does the next tap and wants clarity on how the procedure works.

 

Director Yoder brought up Errors and Omissions insurance coverage and wanted to know if it was necessary.  Mr. Michelbrink stated it wasn’t necessary because their company is a nationally bonded company.  Mr. Michelbrink will find out what it will cost if the Board wants it included in the contract.

 

 It was suggested that the contract be accepted in principle until it was formally signed.   A motion was made to approve in principle the contract with Eco Resources, Inc. subject to final confirmation with Eco Resources whether Errors and Omission insurance should be added.  It was also stated that the price of the contract would go up if the insurance was needed.  The motion was seconded, unanimously carried and was approved.

 

Open Forum:

 

Eco Resources, Inc. personnel are not required to be at meetings as long as a report from them has been sent.  If something important comes up, they will be called or can come to the meeting.

 

Director Billings has been offered a job out of state and has accepted.  He will be leaving in the next couple of months.   A new board member will have to be appointed, preferably someone from the subdivision.

 

Mr. Mike Milton has spent the last five weekends doing meter verifications.  Almost all have been completed with a total of 118 done.  There are16 active accounts left to be completed.  Some of these are the ones that realtors are holding.  There is a database verifying all meters, types of piping and meter readings.  All Sensus meters have been recalibrated to read 5 digits.  There are about 10 meters and remotes that need to be replaced.  The project was originally budgeted for $500; however, a motion was made to pay Mr. Milton $650.  The motion was seconded, unanimously carried and was approved.

 

Discussion ensued regarding hiring Mr. Mike Milton to do all types of minor maintenance jobs that needed to be done.  Could pay up to 10 hours a week or x amount of hours a month with approval of the District Representative.  A motion was made to authorize the District Representative to pay $15 an hour for 20 hours a month to Mr. Mike Milton to perform maintenance support for the water system not related to water operations and to back brief the Board on the completed maintenance.  The motion was seconded, unanimously carried and was approved.  Mr. Malcom will draw up a contract and have Mr. Milton sign it.

 

Director Zuniga sent Mr. & Mrs. Morgan an e-mail on Monday encouraging them to come to the Board meeting and state that they want the remote off their property.  Their meter was identified to be replaced.    Mr. Morgan stated he would move the meter himself.  If he moves the meter himself without the Boards permission, he will be subject to a $1,000 fine.  Eco Resources needs to hook the meter up and the line needs to be inspected by the District.  Director Zuniga will forward all e-mails to Mr. Malcom from Mrs. Morgan.  Mr. Malcom will type up a letter with all procedures and options available and mail it to Mr. & Mrs. Morgan.  Eco Resources will call and make an appointment with the Morgans to switch out the meter. 

 

Director Billings and Mr. Rupp repaired the service line leak on Daniwood Grove.  About 3 gallons a minute was being lost. While fixing the line, it was discovered that there was a leak at another joint also.  The line has been completely repaired.

 

Discussion ensued regarding some items that were still on-going.  It was suggested these items be included on the monthly agenda until completed.

 

Director Zuniga mentioned that she talked to the Transportation Dept last month at the POA meeting regarding buying water and that they may be a potential customer.

 

Discussion ensued regarding mosquito control and what could be done.  Director Zuniga will do some research and present it at the board meeting next month.

 

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 10:09 PM.

 

 

                 

 

 

 

 

 

 

_________________________________________

                              Secretary for the Meeting