Santa Fe Trail Ranch
Metropolitan District
Board of Directors Meeting
August 19, 2005 9 AM
109 East Main St., Trinidad, CO

Board Members:  Jim Davis, Bob T. Scott, Bob L. Scott, Mike Shelton, and Will Potter

1. CALL TO ORDER

   Jim Davis called the meeting to order on Friday August 19, 2005 at 9:40am at 109 West Main Street, Trinidad, CO 81082.

2. ROLL CALL & QUORUM DETERMINATION

   Board members present: Jim Davis, Bob T. Scott, Bob L. Scott and Mike Shelton.  Board members absent: Will Potter.  With 4 board members present, a quorum was established.  Guests present: Donna Scott.  Also present: Gail Thomas from Century Financial Group.

3. DISCLOSURE OF POTENTIAL CONFLICTS OF INTERESTS

   This refers to any transactions with the District that may be considered by the board members as a possible conflict of interest.
   There are no conflicts of interest at this time.

4. APPROVAL OF MINUTES FROM LAST MEETING

   Bob T. Scott moved to approve the minutes from the May 2005 meeting with correction to the meeting place address.  Mike Shelton seconded.  All were in favor.  Motion passes.

5. FINANCIAL REVIEW

   Bob T. Scott reviewed the current financials with the Board.  He noted that the International Bank loan had been paid off completely.  Bob also asked that a formal motion be made for the record adopting the 2005 budget, as notes for the December 2004 were lost.  Bob T. Scott moved to adopt the 2005 budget.  Mike Shelton seconded.  All were in favor.  Motion passes.

   Bob T. Scott reviewed the current budget line items and expected operating expenses in the future.  There are expected increases in system sanitation and testing, system maintenance and repairs, and accounting and administration fees.  It is estimated it will cost approximately $58,000 per year to operate the Metro District.  Currently with plant investment fees and water sales, the District would operate at a deficit.  The recommendation of the Board, at this time, based on future analysis of income, expenses and operation, is NOT to rebate any funds back to the subscribers.

6. ACCOUNTS RECEIVABLE UPDATE

   Bob T. Scott noted that he would be working with the County Assessors office in October to attach property tax liens to those accounts seriously in arrears.  These accounts have been notified that this action will be taken if their accounts are not brought current.

   One member has put a request before the Board asking that 3 years of finance charges and late fees be dismissed from his account provided that he gets his accounts current.  It was the consensus of the Board to notify this member stating that there is no avenue for the Board to take to satisfy his request.

7. WELL DRILLING

   Jim Davis noted that two requests have been received regarding well drilling.  A letter from State addressing one of the water well application sited the landowner must get authorization from the District before they would proceed on approving the application.  Because this landowner would be able to receive water from the District, the application could be denied.  Jim Davis will contact the State Engineer and get clarification on the wording of the letter before making a decision on this issue.

8. OTHER BUSINESS
    
   1. Water Consumption- Bob T. Scott reviewed water usage for 2005 including water purchased from the City; water sold to subscribers, tank levels and known water leaks.  Bob would like to see tighter controls over water usage and loses.  He suggested installing hour meters at strategic locales and sealing bleeder pipes below ground.  Bob L. Scott can do the hour meter installation and suggested using expanding foam insulation around bleeder pipes.
       
   2. Maintenance & Repair Policy/Procedure- Bob L. Scott is currently working on this.
       
   3. Fuel Reimbursements- Bob L. Scott moved that the District would reimburse board members for allowable expenses incurred while conducting Metro business upon receipt of the appropriate documentation.  Mike Shelton seconded.  Three votes in favor, one abstention.  Motion passes by majority.
       
   4. City Water Tap Contract- Jim Davis attended the City Council meeting to request an extension to the current City water contract.  There is currently a moratorium on new water taps and this could be a conflict with the extension.  Gene Duran, the City’s attorney, will review the contract and update the City and the Metro District.

      Members who wish to connect to the water system should consider purchasing taps before the end of the current contract (2008) because taps may not be available at that time if the City moratorium is still in effect.

   5. Regular Board Meeting Schedule - Bob T. Scott moved to hold regular board meetings three times per year.  The meetings would be held in April, August and December with specific dates to be determined later.  Bob L. Scott seconded.  All were in favor.  Motion passes.

      Bob T. Scott also noted that he would like to see the Metro District report annually to the SFTR POA at the membership meeting instead of the monthly POA Board meetings.  A majority of the District Board members felt was important to keep communication open through out the year and reporting at the POA Board meeting was a “good neighbor” policy.  The Metro District will continue to attend the SFTR POA Board meetings.

   6. Fire Department- The Fisher’s Peak Fire Department was given keys to access the SFTR water.  A majority of the Metro District Board members would like to a written policy between the District and the Fire Department.  Jim Davis will attend the next Fire Department meeting to discuss putting together a protocol and written policy on water issues.
       
9. ADJOURNMENT

   Bob T. Scott moved for adjournment at 12:40 pm.  All were in favor.  Motion passes.

Minutes submitted for review and approval at the next Board meeting by R. T. Scott, Treasurer.