WATER COMMITTEE MEETING
THURSDAY, OCTOBER 23, 2003
HOLIDAY INN
8:30 AM

ATTENDING:
Jim Davis, Will Potter, John Woods, Tom Stephens, Mike Shelton, Dennis Scott, Bob Scott

AGENDA ITEMS:

1. Reviewed again the outstanding bills that were paid from the first draw on our loan and discussed how we will coordinate the accounting activities of Century Small Business going forward.  Dennis Scott has requested a meeting with Century management to establish our protocol going forward.
    
2. Discussed the language of the letter to go to all property owners this month which will define the loan we obtained and each individual property owner's prorata share and how that share may be paid.  The principal is $550,000, as described in minutes from prior Board meetings.  The interest rate is 5.50% amortized over 7 years.  Property owners will have one opportunity between now and December 15th to pay their prorata share of principal, $1250.  with no interest costs.  Property owners who do not make that payment and chose to pay on time will be billed once a year, with their POA dues, $225.00, for seven years.  We will include an amotization table along with the letter to illustrate these figures.  The letter will also inform property owners that the payment is due at the same time the POA dues are due, but payment will be by separate check to the Metro District c/o Century Small Business.

   Any payments not received timely will incur additional late fees.  Any payments not received by June 30 each year will be added to the Property Tax Bill from Las Animas County and will be collected by the County in accordance with their procedures.

3. Discussed how record keeping and accounting will be handled going forward as a result of creating the Metro District Water Enterprise at the July 21, 2003 Special Board Meeting.
    
4. Discussed how we want to schedule and monitor the completion work and control the expenditure of the loan.  Mike Shelton suggested implementing the same weekly process that the road committee has adopted under the road maintenance contract.  Everyone agreed that we would do that.  John Wood suggested a method for tracking each expense category under the loan.
    
5. Discussed the upcoming meeting on Monday, October 27, with Schrepfer Industries to formalize the work schedule, manpower and equipment required to complete the work in a timely and cost efficient manner.  Work will resume after that meeting.
    
6. Discussed incorporation of the J Lots and former Ferguson Lots into the Metro District under the criteria discussed and established in the application hearings for the District with the Las Animas County Commissioners and subsequent 3rd District Court Hearing to establish the District and hold elections in 1998.
    
7. Discussed our interaction going forward with the POA in light of their recent changes in administrative and accounting relationships and how to interface them with the Metro District.  Dennis Scott will be contacting Diane Rader for her input and advice.
    
8. Discussed the steps necessary to prepare for providing water service with consideration of meter pit components, billing arrangements with San Isabel Electric, water tap fee processing to the City of Trinidad, and system operation and maintenance requirements.  Tom Stephens agreed to update that information for the committee.
    
9. Discussed the sanitization and Health Department approval process.  The committee will coordinate this with the City, the contractor and State Water Quality offfice.
    
10. Discussed the May 2004 election date for Special Districts and the fact that the term of office will expire for two Board Members, John Woods and Tom Stephens.  As they do not intend to seek another term as Board members, we will have to seek candidates to fill their positions.  Jim Davis stated that there is a State sponsored election workshop in Pueblo that one or more Directors should attend to prepare for May.  Depending on the number of candidates interested, we may or may not have to incur the expense of an election.  We look forward to John and Tom's continued valuable assistance as committee members.
     
11. Discussed the upcoming Mediation Hearing on December 3, 2003 at which a Mediator, Judge Robert E.  Haeger of Walsenburg, will hear testimony and review evidence in an attempt to resolve the matter in avoidance of a Court trial.  This step was ordered by 3rd District Judge Neunam, prior to setting any trial date.  Discussed recent communications from our attorney, Robert Winter, which outlined the process and advised us of the disclosures of the bonding company, their expected witnesses and documents they intend to enter.  Mr.  Winter is making a similar submission on our behalf.

COMMITTEE ADJOURNED UNTIL MONDAY, OCTOBER 27 AT 8:30 AM WITH SCHREPFER INDUSTRIES