MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF THE

ARABIAN ACRES METROPOLITAN DISTRICT

Held: Friday, September 15, 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 David J. Biondo Sandy D. Zuniga Also present: Ken Rupp, Private District Consultant, Terry Malcom, District Administrator, and Mrs. Jenny James, the District’s Recorder of Minutes.
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 August 18, 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 and passed out a packet to all the Directors. Discussion ensued regarding not receiving a bill from ECO Resources for repairs to Well # 7 last month. Lightning had struck and it was not working properly. It is now fixed and is up and running. Director Billings stated there were 5 new meters with connectors on both ends. The trip breaker on Well #6 was reset and the pump was restarted. There was also some confusion on the excavation bill from Redbear. The total excavation bill was $253.75. Another bill for $431.60 included the price of one valve, and another check was made out for $109.50 for another valve. It was determined that the $109.50 should be paid but the other valve included in the check for $431.60 should be subtracted. There is a balance of $47,263 in the bank. Discussion ensued regarding the Past Due List. The Blair house is in foreclosure and it has to be delinquent for six months before it is reported to the county. Accounts #144 are new owners and have only been there one month. Their meter wasn’t read until meters were verified. Vince Casados house is also in foreclosure. The bottom line result on #94 is that there are two properties and one house is for sale. Discussion ensued regarding the water usage and loss report. Mr. Malcom stated billing was every other month and that the report will give the Directors an idea of what the water usage is. The water loss was 36% from January through August of this year. Water sold was 798,000 gallons. These are two good base line readings. Mr. Malcom went on to explain the Income Budget comparison sheet. Director Walker brought up a point regarding not needing the fourth column; percentage against last year Discussion ensued regarding the District owing Rupp Partnership $42,415. Mr. Rupp stated it is zero percentage and will need to look at it. Discussion ensued regarding the Audit. Questions and concerns need to be resolved soon because the deadline to file with the State is the end of this month. 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. didn’t submit a written Operator’s Report to the Board and is not in attendance. Director Billings sent Roger Michelbrink an e-mail regarding attendance and the missing report. Discussion ensued regarding the water quality tests on copper and lead. Since Mr. Volk is not at the meeting, no report was given. Mr. Volk chooses the specific sites for testing and the Board would like the tests to be sent to the El Paso County lab. There is also no information on the status of Liquid Engineering coming this month to do tank maintenance. Discussion ensued regarding other maintenance issues. The storage building was cleaned up and new parts were put in it, materials, connectors, etc. All new meters have been calibrated to read 5 digits. The cost of the meters was $116 each including taxes. Director Billings is doing some research on the past materials sold to the District by AquaTest and suggested the Board follow-up on any violations of contract. Director Billings will forward all information to Joan Fritsche when he receives it. Director Billings will send a current list to Roger Michelbrink and John Volk of ECO Resources on meters that still need to be installed. Mr. Morgan’s meter and remote needs to be installed as soon as possible. Mr. Malcom sent Mr. Morgan a letter. ECO Resources should contact Mr. Morgan regarding setting up a date for the installation. Discussion ensued regarding the Board reprimanding ECO Resources. There are a lot of things going on that need to be done now. Communication to Roger Michelbrink about Trout Haven should have been checked out two months ago. Things should be carried out in an effective and timely manner. The Board needs to take steps to contact ECO Resources and resolve these problems. There have been several things from the last minutes that have not been completed. There are several shortcomings that need to be remedied. Director Billings found a Trout Haven meter in the storage building suggesting the possibility of water piracy. This needs to be investigated. It was suggested a letter be drawn up by Mr. Malcom from the Board to ECO Resources outlining the lack of communications and follow-up on job performance. There has been no written operator’s report for the third month in a row. There seems to be no organizational structure to get jobs completed and no clarification of who is going to be the physical District operator or who will be doing taps. There are still issues regarding tank maintenance. Mr. Malcom will draft a letter and send it out to all board members including Mr. Rupp for any additions or changes before sending it out.
Attorney’s Report	None Given
Consultant’s Report	Mr. Rupp confirmed no additional movement on the Camp Iana/CSU Easement or the Trout Haven Resort Vacated Roadway Easement. Mr. Rupp talked to Jim Felt regarding the Augmentation and Exchange Water Court Decree; however, nothing to date has been submitted. Mr. Rupp received an e-mail from Director Biondo regarding water sales. A temporary water supply plan could be done; however an augmentation plan would be better. It should be a good way to bring in more revenue.
Other Business _________________________ Open Forum	Discussion ensued regarding a previous list of pending issues. 1. Repair of Control Buildings A and B. Director Billings suggested Mr. Mike Milton look at both buildings to see what needs to be done. Building A needs siding on two sides and building B needs a new roof. Mr. Rupp has most of the supplies to complete the job. 2. Inventory of Current Supplies. Inventory has already been completed and most of the supplies are labeled. This is something else Mr. Milton can keep track of. 3. Placement of Concrete Pad Well #8. Mr. Michelbrink stated the pad site needed two feet of concrete around it which will take about 4-5 bags of cement. Director Billings has extra sheet metal that he will give to Mr. Milton to build the pad form. The size of the pad will be confirmed with the State before completing it. 4. Water Tank Maintenance. Coordination needs to be done with Liquid Engineering. 5. Status on Meter Change to District Ownership. A listing will be generated as to who still owns their meters. Mr. Malcom will send out a letter to those people on the list explaining the reasons for changing ownership of meters over to District. It could be very costly for the owners if something goes wrong. 6. Valve box issue at end of Donzi Trail (Sep 2005 Minutes). 7. Water Machine Purchase/Installation. Director Billings will e-mail Mr. Rupp information on water dispensing machine. Discussion ensued regarding the repair of service line on Golden Lane. Redbear was there all day. Sue Roger’s driveway was fixed. Director Billing’s will send Mr. Malcom a list of contractors and Mr. Malcom will draft up a letter to see if any of them would be interested in working for the District. If there is a water main break during the night someone needs to respond right away. What the District is looking for is a list of people for emergencies. ECO Resources is supposed to be responding. __________________________________________________________ Discussion ensued regarding questions and clarification on the audit that was being sent to the State. Director Biondo had questions regarding the wording of the audit and noted that both Trout Haven’s water line and Mr. Rupp’s water system development were both lumped together. All Board members will review it again before it’s approved to be sent to the State. The audit was also sent to Dawn Schilling. Discussion ensued regarding the letter being drafted to ECO Resources. Director Yoder was concerned regarding a specific timeline for ECO Resources to complete specific things they failed to do. Mr. Rupp feels ECO Resources has fallen short in several instances. In January 2007 the insurance will be charging a flat fee instead of a percentage commission and will be charging $300 for accounts that do not have property coverage. Discussion ensued regarding Director Billing’s resignation as President of the District due to his move to California. His term is effectively over at 10:00 p.m. this evening. Director Billings will continue to maintain the web site and will post approved minutes of all meetings. A new President needs to be appointed. Director Zuniga indicated she was interested; however, she doesn’t have enough experience with the District. Director Walker volunteered to be the President and serve out the rest of the term. Another Board member should be appointed. Director Billings has talked to two people in the district regarding the opening. One person did not return his call and the other person wasn’t interested in doing it this year. Director Biondo volunteered to be the District Representative. Mr. Rupp will be the back up and help with the training. The District is responsible to ensure that everyone has water at all times. Decisions have to be made immediately if there is an emergency. The District Representative fills the gap between the administration and the operator. A motion was made to accept Director Billings’ resignation effective 10:00p.m., Friday, September 15, 2006. The motion was seconded, unanimously carried and was approved. A motion was made to appoint Director Walker as the new President upon Director Billings’ resignation as of 10:00 p.m., September 15, 2006. The motion was seconded, unanimously carried and was approved. A motion was made to appoint Director Biondo as the District Representative. The motion was seconded, unanimously carried and was approved. Discussion ensued regarding any unfinished business. Mr. Malcom will draw up a list of suppliers and will send it to the Board for approval before sending it out to customers. Home owners need to know who to call if there is an emergency. Director Billings sent Mr. Rupp all meter verification information. Ms. Joan Fritsche sent the Demand Letter to AquaTest but has not received a response to date.
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 9:55 PM.
	_________________________________________ Secretary for the Meeting