MINUTES OF REGULAR MEETING OF THE BOARD OF DIRECTORS OF PUEBLO WEST METROPOLITAN DISTRICT

March 24, 2009

The Board of Directors of the Pueblo West Metropolitan District met in regular session at 109 East Industrial Boulevard, Pueblo West, Colorado, on March 24, 2009, at the hour of 6:30 o'clock p.m.

ROLL CALL: On roll call, Chair Stan Hren, Director’s Bill Vickers, Steven Abel, and John Van Auken were present. Director Jeff Sloan was excused.

Also present were Brian Caserta, Acting District Manager; Judy Leonard, Administrative Assistant; Tom Mullans, Attorney for the District; Steve Harrison, Utilities; Rick Morgan, Public Works; Tammy Jameson, Finance Director; Dave Cosby, Fleet; Carol Cosby, Parks and Recreation and 150+ citizens.

Chair Hren made a motion to amend the agenda and keep the financial report as item B, item C becomes the District Manager report, item D becomes Director’s comments, item E will be an informational presentation by Steve Harrison, Utilities Director on the Southern Delivery System, item F will be an executive session to discuss the SDS, then the meeting will adjourn and reconvene after the executive session, item G will be citizen’s comments, item H will be new business with the items listed, item I will adjourn the meeting, vote unanimous. (Chair Hren, Director’s Vickers, Van Auken, Abel voted aye, Director Sloan was absent.)

FINANCIAL REPORT: Members of the Board had been provided with a check register dated March 24, 2009, listing the bills for payment. On motion by Director Vickers, and unanimously carried, noting the large payments, the outstanding bills in the amount of $221,637.18 will be paid.

DISTRICT MANAGER’S REPORT: Brian Caserta, Acting District Manager updated the board on the letter sent to Mr. McDowell on property he purchased from the District at 658 E Spaulding Ave. He has not started building and the contract expires April 30, 2009. Mr. McDowell would like all restrictions be removed as stated in his letter due to poor economic times he is not able to proceed with his plans. Chair Hren asked if he was requesting an extension or complete removal of all restrictions. Director Vickers mentioned one that had been done awhile back around the first of the year and extended the clause to build at a later date. Legal Counsel explained it was a lease of reverter removing the restrictions for Mr. Schrader that has property on Spaulding because he could not build due to poor economic times. Director Vickers asked if all the restrictions were removed for a building time frame as Mr. McDowell is asking for. Chair Hren commented that if the board continues to set a precedent removing people from their reversionary responsibilities, this sets a dangerous precedent and would have no clout in using this clause in the future and would agree to an extension but not removing the clause completely. Director Van Auken talked about Mr. Schrader planning to build in the future and would consider an extension for Mr. McDowell with conditions and agrees with Stan about setting a precedent. Acting District Manager Caserta asked if the board would like Mr. McDowell to come to the next meeting to talk with them. The Board agreed and will talk with him at the next board meeting.

Acting District Manager Caserta had capital projects over the $20,000 for approval. One is for $212,000 for insituform for relining clay sewer pipe from the Sewer Fund. The other is for Twin Lakes Reservoir & Canal annual maintenance and operation assessment for Twin Lakes shares for $106,060.88 from the Water Fund. Chair Hren asked if they were budgeted items and to go forwarded with them.

Acting District Manager Caserta updated the board on a proposal from Excel Energy from the gas lines to Fire Station #3. The District paid $32,922.49 to Excel in 2007 and with Colorado Natural Gas providing service to customers in an area North of Highway 50 which includes the new fire station they would like to refund the cost of the gas line installation back in the amount of $32,922.49. Chair Hren asked about the reduction in natural gas rates stated by Excel Energy and would like Colorado Natural Gas to talk about when they plan to pass through for the residents. Acting District Manager Caserta did say the customers coming on with CNG will see a reduction but not sure what that would be but thinks it is at $1.66 therm and will come down to $1.50. Director Van Auken inquired if this was something the district is required to do and charge the cost of the line, and then charge more for the gas. Acting District Manager Caserta explained the proposal and how other customers coming on line will pay and depending how fast the area develops would be how fast the District would recoup the money. Acting District Manager Caserta explained how the money would be recouped and that there is a 12 year statutory limit and because the area is not developing it will take longer to get the money back. Chair Hren stated the reduction in natural gas rates would be in the area of 40% from the announcement of Excel Energy and comparing that to CNG reduction of 9% they need to be asked how they justify that. Chair Hren mentioned the cost they had running the lines through Pueblo West but still would like to justify their costs. The question was asked if the District had a choice on the gas lines and Acting District Manager Caserta was not certain and will try to find that information for the board.

Acting District Manager Caserta asked if the board would use the microphones when they speak for recording purposes.

Acting District Manager Caserta mentioned the letter done by Mr. Saling supporting the recycle program and asked if they were in favor of supporting it. Director Vickers asked if it was the letter in their packet to Ms. Griek. Consensus of the board is in support of the letter.

Acting District Manager Caserta has made arrangements for the next four board meetings to be held in the Library conference room confirming the dates of April 14, 28, May 12 and 26, 2009 due to the large attendance of the meetings. He mentioned that District 70 was very gracious to let us use their facility on such a short notice. Director Abel asked what the total allowed for seating was and was told approximately 180 people. Director Abel inquired about a microphone system which the district will still have to make some adjustments. Chair Hren mentioned at the tour of the library they said the conference room will have the capability but may not be installed yet. Chair Hren informed every one of the ribbon cutting and tours on April 8, 2009 at 11:00 a.m. and what a great project it is and that the conference room is actually the old library.

Chair Hren mentioned Pueblo County agreeing to the 1041 land use permit for the Southern Delivery System and have some serious implications in Pueblo West for our future. He mentioned Mr. Harrison being quoted in the paper that as Pueblo West heads toward build out that we could lose up to 3,200 acre feet of water which is 1/3 of our water supply with this passing. Chair Hren said they will be going into executive session after the presentation and it will show the audience as to exactly what is going to happen with this 1041 land use permit.

Mr. Harrison, Utilities Director presented the audience with a power point presentation on Pueblo County 1041 possible impact on Pueblo West. He explained how the partnership occurred with Colorado Springs for the SDS pipeline. He discovered that with the 1041 land use regulations by Pueblo County, Pueblo West would have to be part of the flow management program. He talked about our main water rights in the upper Arkansas Basin of Twin Lakes and Hill Ranch water. He introduced Mr. Krassa, Water Attorney and Mr. Mullans, Attorney for the District, stating they have been helping him with the current negotiations with the County. He explained that Pueblo County is expecting Pueblo West to donate a certain amount of water that Pueblo West needs for the Legacy Project for recreation and Kayak Park. Mr. Harrison said the district has 5,891.16 shares of Twin Lakes and during a dry season we only get ½ acre foot of water from these yields and is out of basin and the water can be reused. Pueblo West policy is to keep 2+ years of water in storage for drought protection. Mr. Harrison said 1 acre foot of water will cover 4 homes and there are 10,848 homes and 5,283 sewer taps and about 53% built out. In 2008 Pueblo West used 5,278 acre feet of raw water and an estimate 9,000 to 10,000 acre feet at build out and the sewer plant uses an average of 1.15 MGD a day which equals to 3.5 acre feet per day. Mr. Harrison explained water storage for Pueblo West and showed pictures of the 24 inch suction pipe and the two discharge pipes from the reservoir pump station. He presented the audience with the view of the area west of Pueblo Flow Management Plan and explained how it flows through the pipe from the dam and then to the pump station and treated, and explained the upper gauge and Moffat gage. Mr. Harrison explained the simple river exchange being the release of water at a point lower in the river and keeping or diverting water at a higher point and the argument of area water managers is we are exchanging against the natural stream flow that enters the reservoir and if Pueblo West is to benefit from SDS, needs to comply with PFMP. He showed another slide on the short exchange water that never reaches that part of the river. Pueblo West Exchange pumps store water from the dam (4 acre feet), returns it to the river (2 acre feet), and reports to the Colorado Water Engineer a storage reduction of 2 acre feet a day. He pointed out key points of Pueblo West short exchange water has never been in the river measurement across the upper gauge, no decreed water right to protect in point A, and never required to be party to the 6 part IGA. He talked about Pueblo County 1041 conditions that Pueblo County Commissioners produced a list of conditions to approve Colorado Springs applications for the SDS project which is a problem for Pueblo West condition #9 concerning the City of Pueblo Water flow through the city and to participate in the PFP was not a part of the federal conditions. Mr. Harrison read condition #9 that all SDS participants shall cooperate in and comply with the PFMP including Pueblo West and Security who are not signatories to the PFMP agreements and its requirements for maintaining target flows through Pueblo below Pueblo Reservoir by cessation of exchanges. Mr. Harrison explained his concerns and letters to Pueblo County for not participating in the flow management program. He talked about the pump back concept plan and how the water would flow and priority water projects of an alternate river intake pump station and reuse & pump back project and why they are needed and with pump back can get 95% of the water back. Chair Hren thanked Steve and found his presentation very informative and to call Mr. Harrison if you have any questions or concerns.

Chair Hren announced the board intended to go into an executive session but Mr. Krassa graciously informed the board he is willing to wait so the executive session was moved to the end of the agenda.

DIRECTOR COMMENTS: Director Van Auken mentioned he had been away on a business trip and vacation in between that and just got home and playing a lot of catch up. He did learn about the firing of the District Manager and took him by total surprise as he had no indication, preview, or discussion with any board member this was pending and it did spoil some of his time away. He said had he been here he would not have voted for it and would not go into details at this particular time. He mentioned one reasons being poor communications and felt all Don’s communications verbal and written were well documented and that’s why it surprised him. He wanted to state that and wanted everyone to know that and said he would reserve his time for later.

Director Abel commented on his meeting with Carol Cosby and discussed meeting some of the demands of the parks and recreation and one of things that came up was the land that the district has been donated in regards to where the community center is going to go along with the fields that are there. He wanted to clarify that all that land is not the Districts yet. Legal Counsel stated that was correct and it is in the process and mentioned the tax papers for signatures and issues involved that need to be taken care of. Director Abel said Carol had mentioned other options or rearrange things to do something with the fields and that grants are limited until the property is the Districts. He also mentioned back in December addressing the budgeted amount of money for the employee’s cost of living increases which had been stipulated by Director Sloan to look at on a quarterly basis and wanted the board to realize that by the next board meeting would reach that quarter to continue to give consideration to that. The other one will be discussed later.

Director Vickers had no comments.

Chair Hren discussed the other reorganization of the Committee of Architecture and the board naming themselves the Triark board and have been taking applications from citizens interested on serving on the COA board. The deadline to submit was March 13, 2009, noon, and the time line has past and mentioned they have some excellent applications and there is fourteen and need to set a date for interviews. Chair Hren would make him available for better part of a day and a possibility would be Monday, March 30, 2009. He asked if there would be a problem contacting them and there would not. The interviews will be thirty minutes apart and Director’s Van Auken, Vickers, and Abel will also be available.

CITIZENS COMMENTS: Chair Hren made a few comments that because of the heavy agenda tonight with road discussions and SDS issues anticipate a lot of citizens want to talk so would like them to limit their comments to 3 minutes and give everyone a chance to speak.

Jeff King was disappointed in the board decision to fire Don Saling. He stated that in his business he travels around a lot through out the country and has worked with a lot of city managers and administrators and has worked with some bad ones and good ones and based on his experiences we had a good one with Don. He said it was certainly our loss but prudently some ones else’s gain. He thinks at some point the community needs an explanation from this board the disclosures of the circumstances for their actions. He is also concerned with the board being influenced by a small group of residence that do not necessarily reflect the best interest of the District especially when the special interest group has especially both the support of the newspaper. He attended a meeting tonight for the Voice of Pueblo West and sense that the newspaper might be there to keep the rest of the residents informed as to what is going on. Lastly he is concerned with the board’s communication. As we know communication is a very broad term and communication is a two way street. I know from first hand experience that he was involved in projects and a little disappointed in the board not reading reports and certainly thinks that is part of communication. A good example of this is the Park Master Plan and at the last meeting Mr. Hren, was encouraging and discussing new ideas on trail systems which was after the District spent thousands of dollars on a professional firm and included several public meetings with a lot of people like we have this evening which included a real survey and now suddenly some one who did not participate in that process is annoyed with that trail process at the expense of the citizens and committee who worked for months on the Parks Master Plan. He closed in with the comment that were in a real danger when a board thinks they know what is best for the residents more than what the residents know.

Bob Hyatt stated his wife and I have been in attendance in these meetings for over a year now and seen a great many positive changes and procedures. These changes have made our board transparent and fiscally responsible. He told the board they are very honest, dynamic, aggressive, talented, and responsive who have brought back the by-laws that have not been used for some time and for the better of all Pueblo West. He said to please hold on to your integrity and the chairs you so righteously deserve to fill and we are very honored and optimistic about the future.

Fran Winkler stated she was very disappointed in the board’s decision to lower the District Manger hiring standards. She hereby urged the board to reconsider their decision in the best interest of the community. She said the board has acknowledged that this is a very important position. That being said why then would the board choose to reduce the following qualifications from a Master’s degree down to a Bachelor’s and from 8 years experience down to 4 years experience? Our last District Manager was hired with these qualifications year’s age. He met the qualifications of a Master’s degree and 8 years experience. Within the last ten years the population has doubled to over 30,000 with many more businesses, complex issues to be dealt with, and water issues, so this is not the time to lower our hiring standards. Finally, due to the national current unemployment situation all over the country there will be an abundance of highly qualified individuals in the job market looking for a job like this even with the higher recommendations and requirements can expect a deluge of resumes. Why waste a lot of time reading resumes of individuals that will really only have the bear minimum. Surely, we want the best of the best in Pueblo West so if this board has the best interest of Pueblo West at its core then she urged the board to reestablish its original requirements for hiring a new District Manager with mainly a Master’s degree and 8 years experience.

Director Abel knew that had been brought up in the last meeting and unfortunately would have to say didn’t know and asked if we had been meeting the standards of the original contract set or if the qualifications were the same when Mr. Saling came on and couldn’t agree with Mrs. Winkler more. The board is not going to, and tried to make it clear at the last board meeting that they were not going to accept any thing less than that. He was going to give flexibility on, was when Director Hren said something about the number of years in retrospect to years of experience and many businesses and professional companies take into account as well and this Director would only be flexible in regards to that. He does support not lowering the standards when looking at the hiring the next District Manager.

Glen Wiesser spoke on giving his support to the board and making a serious decision that if Don Saling was not meeting the board’s standards then they made a good decision. He also mentioned the priorities of the community was not in favor of a community center and should be able to vote on that and would not use the community center or have any need for it. He also thinks money would be better spent on roads and drainage, how his road needs to be worked on, the lack of maintenance done on the roads unless they complain, and to spend the money in a wise way.

Sam Dorgan talked about roads being more important than a community center and his road becoming a mud slide when it rains and with the construction from the gas lines.

Howard Brunner yielded his time.

Bruce Salisbury said the Metro Board of Directors decision to fire Don Saling was done in the best interest for the citizens of Pueblo West. He stated he has attended the board meetings for approximately one year now and the Metro Board was warranted. He has seen a significant change in the new board’s direction of operation to the previously seated board and has watched the board look at the citizen’s expenditures and earnestly question and consider the options to reduce the expenses of the district. He has seen the board pursuing the information they need to make the best decisions possible for the residents of Pueblo West while considering future and current impact for the citizens. He said he has not seen any of elected board members do anything but offer alternatives to the status quo which will reduce the spending of tax dollars. Pueblo West Board of Directors have been seeking fair and equal treatment from our citizens in relations to the issues of the Committee of Architecture and Triark board and insisting on doing what is in the best interests of the constituents who they represent. They have insistently redirected the District Manager to do the will of the majority of the citizens which has been measured with surveys, personal face to face meetings, e-mails and correspondence. Unfortunately, he has witnessed Mr. Saling being uncooperative with the Board of Directors and would like to publically thank the Board of Director’s for their tirelessly thankless effort to make Pueblo West a better community. He thanked them for their insisting on accountability and transparency in our local government. He thanked them for their honesty and integrity in governing Pueblo West.

Whitney Graves commented that the board is always talking about not having any money and the night you fired our District Manager what did it cost the taxpayers and would like an explanation as to why he was fired. Chair Hren said he could give him an estimate but would have to get those exact numbers from Judy Leonard. He suggested he go the website WelcometotheCommunity.com and click on a view from the inside and mentioned he had a blog on there about the community center, golf course, board election last year, and this morning the firing of our District Manager and the one he would emphasize is that the previous board made a contract with Mr. Saling that was opened ended with no periodic renewal of his contract, no incentive for him to resign and the contract provided for golden parachute type compensation, health insurance, six month salary, three hundred sick days, thirty days vacation, and the whole package some where between $150,000 to $200,000. Whether we bit the bullet on March 10th or any time in the future there was no incentive for Mr. Saling to resign from his present position and that money was sitting in an account. He asked Director Vickers to explain where the money came from. Director Vickers said Judy could clarify and did not think the compensation package was quite that high. Director Vickers said the sick leave is held in an escrow account for all the employees and is sitting there as well as the vacation pay so that was already in the accounts. The one thing that had to be done was come up with the six month salary and the insurance. He did not think that the checks signed reached $200,000. Chair Hren asked again about the amount and Director Vickers apologized that he did not have those figures in front of him. He then asked Tammy if she had any recollection and approaching $100,000 and as Stan said was adopted by a previous board and annual raises were tied with the employee’s raises and did not think it was a good idea to tie the District Manager salary increases to the employee’s salary increases. He said they did not have any other action than the action they took.

Thomas Duran yielded his time.

Tony Breedlove thanked the board for their countless efforts and bringing accountability and openness to their district.

John Maulden yielded his time.

Chair Hren concluded citizen’s comments. Larry Graves stated he was on there and had him approach the front.

Larry Graves wanted to talk to the board on lack of communication and firing the Triark board that was lack of communication and Mr. Sloan was a member of that Triark board and on an extensive investigation Mr. Van Auken and Mr. Sloan was not aware of this. He asked wasn’t that lack of communication among board members. He commented that you claim you were not informed or communicated with about SDS but there have been topics and discussions at board meetings with Don and remembered seeing a picture of Mr. Vickers, Mr. Saling, and Mr. Harrison and others touring the potential pipeline for SDS. He said when you fired Don for lack of communication and said this had been building for a long period of time and seeing as Mr. Van Auken had not known about this, asked where the communication was there. It seems lack of communication is with you and if lack of communication is the basis to fire someone then maybe all of you should be fired and have not communicated with the citizens as to why you fired Don. You were Don’s boss and technically the citizens of Pueblo West are your boss so he asked where the communication was. Director Vickers pointed out the tour of SDS he had arranged that tour not Mr. Saling. He contacted Commissioner Chostner and Mike Spence and then contacted Don to take them on that tour or wouldn’t have seen that pipeline or where it was going. Director Vickers mentioned the Triark board and that was not only communication but conflict of interests. He said they had a developer on that board who appointed people to the Committee of Architecture who had direct influence on a project he was working on and that is a direct conflict of interest. Director Vickers stated there were a lot of other things Mr. Larry Graves was unaware about that you may be getting here say and those two facts are not accurate. Mr. Graves said the developer Mr. Vickers was referring to was his father and COA has nothing to do with detention ponds and the COA approved that and should get his facts accurate as well. Director Vickers said he did contact the County and was told there were no limitations as to how you put in your detention ponds and no mitigating circumstances or time limit when you build a new building you conform to the standards and those standards include a detention facility. Director Vickers said his father has stated publicly that his roof holds water and it does not. Anybody can drive by and look at the drains that dump unto public right of ways and in public stated his parking lot is a detention pond and is not as you can see that the water runs directly onto McCulloch. The reasons for the detention ponds are to mitigate damage to somebody else’s property and when someone does not have to conform to it just adds to the problems. He has advocated from the beginning that rules apply to everybody and you just can’t pick and choose but everybody should play by the same rules and there are no favorites and in his opinion that is what he saw. Mr. Graves asked what the COA has to do with that and that project was approved back in 1999 for the way it was set up. Director Vickers said according to the County that was not true and when he questioned Don in public meetings before the election he gave a different answer every time he asked the question got a different answer and said it was a master plan project and the County did not agree with that and changed his answer because it was due to an access and since the access was changed it was not required. He said none of those are in the County standards. He mentioned in the Declaration of Reservations number 15 says that you are not to discharge water from your property onto a public right away or somebody’s property and that was in the Declaration of Reservations and was ignored. Mr. Larry Graves stated that the detention pond was signed off by the County and has papers to prove it.

FOURTH OF JULY FESTIVITIES: Chad Haberly, President of the Pueblo West Chamber came before the board asking for their help in the July 4th festivities and gave the board members sheets with all the requests plus what the Metro District provided last year. He gave a brief synopsis of last years parade and festivities with a record crowd of $30,000. He mentioned that the Pueblo West Metro District has been a long time partner in the coordination and execution of the day events. Mr. Haberly had presented the board with a list of financial assistance in the past and cognoscente of the financial situation faced by our community as well as others but feels the July festivities gives recognition to our community and the outside community will help with the economic development of the businesses in the community. Mr. Haberly asked for a letter from the District to the Pueblo West Chamber utilizing Civic Center Drive and Golden Guardian Park. Mr. Haberly discussed the fun run event and Chair Hren mentioned he has been working on a serious 5K run and walk and discussing the run with Don Saling months ago said the Chamber would not be involved in that. Mr. Haberly said the Chamber does not participate in the fun run set up but only promotes it along with the other festivities. Chair Hren commented that the proceeds from the run go to United Way and that he has a meeting with Andrea Aragon and Acting District Manager Caserta to discuss the preplanning for the event. Mr. Haberly said with a wet parade the Pueblo West Chamber can not accept the liability and would like the Metro District to continue to take control and execute all involvement with the parade, road blocks, applications, sheriff, staging, arranging for the Grand Marshall, and all aspects of the parade. He also mentioned the use of the park for vendors, games, and other activities and having road barriers blocking off Civic Center Drive, park area fencing and labor by the Metro District. Director Van Auken noted that what they needed from the Metro District was the same as it was last year and previous years with electrical outlets provided on Civic Center Drive. Mr. Haberly approached the board for a donation on the fireworks and stated last year the District generously donated $2,500.00 and would have the Fire Department execute them. Chair Hren said it was pretty much status quo as last year and previous years and asked if any of the Board members had any issues with anything and he did not. Director Vickers said he had to give the same speech as he did last year. He does not have any problem with the Metro District helping with any of the infrastructure due to set up or tear down but does have a problem giving money for fireworks. He said he asked Mr. Batchhelder last year how many members the Chamber had and it was around 150 to 160 and if each member donated $50.00 there would be more than enough. He will donate $100.00 to the Chamber as last year for fireworks and challenge other members to do the same. Director Abel mentioned his concern on the donation last year of $2,500 and then an additional $500 came from the Fire Department budget for electronic igniters. Director Abel fully supports all the requests and donation for the fireworks but believes in the sake of transparency to the community that $2,500 and Fire Department use that amount to include the igniters or $2,000 come from the District and the Fire Department goes ahead and uses $500 from their budget for igniters and in essence $3,000 was given. Rochelle Turner from the Chamber told the board that the igniter cost was included in the $2,500 and the Fire Department was donated more fireworks and had to spend the money from their budget for the igniters and was not related to the $2,500 donated to the Chamber. Acting District Manager Caserta explained the Fire Department did receive additional fireworks so the igniters had to be purchased. Director Abel had no problem with that just that the board and community should be aware of that. Director Van Auken fully supports all the requests and donations. He thanked the Chamber for taking over the event and mentioned years ago it was the Pride Committee and how it was years ago for the undertaking of July 4th festivities. He also mentioned the electrical outlets and alternatives. Chair Hren asked if the money was in the budget and Director Vickers said there was a discretionary fund.

Chair Hren made a motion to accept the requirements by Chad Heberly and donation of $2,500 to Pueblo West Chamber for fireworks for the July 4th celebration. Chair Hren, Director Abel, and Director Van Auken voted aye, and Director Vickers vote nay.

CONSERVATION EASEMENT TAX FORMS Tom Mullans, Attorney for the District; talked about the conservation easement tax forms that needed to be signed on the proposed property donated for the community center. Legal Counsel explained that he was retained by MITB Endeavors, LLC, in order to assist in the completing its performance under consulting agreements entered into with Francis Koncilja, James Koncilja, Joseph Koncilja and W. J. Farris for their creation of conservation easements each of them granted on December 27, 2007, to the Pueblo West Metropolitan District. There are four original DR 1303 forms that are needed by each individual so they can complete their personal income tax returns on or before April 15, 2009. Pueblo West Metro District is requested to complete two questions to the Easement Holder in part 3. Legal Counsel confirmed with the board that Acting District Manager Caserta could sign them. Chair Hren asked about ownership of the property and Legal Counsel said that the process has started and would discuss it in an executive session.

Chair Hren made a motion to allow Acting District Manager Brian Caserta the authorization to sign the four original DR 1303 forms for the processing of these conservation easements, vote unanimous.

AUDITING RFPs: Finance Director Tammy Jameson put out RFPs for Auditing services to just do the audit but not the preparation of the final audit and four was submitted. She gave the highest bid from $25,000 to lowest at $12,925 and approximately $1,150 for travel expenses. With the contract with Mr. Daveline for preparation and a bid for the audit, places the audit cost at $6,000 more than the budget cost of $20,000. Chair Hren said he has reviewed these extensively and noticed that one was dramatically lower than the rest. Finance Director Jameson said it was her impression that they understood that they were only bidding on to audit the financial statements and not the total preparation. She talked about the other three bids and mentioned Bondi had given the District a bid when Mr. Daveline bid and has always been high but thinks they were bidding for the total audit at their high bid of $25,000. She mentioned she did have Larry Daveline look over the RFP and it was very specific on what the bid was for. Director Vickers said that since Director Sloan is on the budget committee that he be aware and any action taken have his input. Finance Director Jameson explained that the board will have to move fast because of the time frame and the District could apply for an extension if they needed to. The audit deadline is in July and if the audit is not complete will require an extension and is a big issue for the firms. Chair Hren told Director Vickers that the board could tentatively prepare a Resolution for the low bid and will have enough time to participate in that vote. Director Vickers agreed. Director Van Auken had a couple of observations going back to the minutes a couple times ago that Larry Daveline had a contract to do the pre audit for $12,000 and actual audit for $8,000. Director Van Auken said when he looks at the four bids from $12,000 to $26,000 and also wrote down the estimated hours and the low bidder was 120 hours and high bidders at 200 hours, 215 hours, and 220 hours. Director Van Auken could tell that the higher bidders were not bidding on the RFP as stated. Finance Director Jameson felt the same way and stated again the RFP was very clear. Director Van Auken asked how much faith you would have in an auditing firm that doe not understand directions or concepts. Director Van Auken noted that the lowest bid was $12,925 plus $1,150 at a higher cost than Larry Daveline would have done it for $8,000. Finance Director Jameson pointed out the audit will be $26,000 instead of the budgeted amount of $20,000 and anticipating it would be about 10% to 20% higher which is. Chair Hren thinks the district needs to move forward with the concept of having two separate audits. He gave Finance Director Jameson direction to prepare a Resolution for April 14, 2009 Board meeting and contact the lowest bidder to get an engagement letter.

CAPTIAL PROJECTS: Dave Cosby said he needed authorization from the board what is budgeted as two capital equipment items. The first, is a piece of capital equipment of a Gator Utility Vehicle for the Parks and Recreation department. They currently have $11,000 budgeted for this purchase in the 2009 Conservation Trust fund budget. This piece of equipment can be purchased on HGAC bid of $9,079 which is 25% off the retail price. The second, is a piece of capital equipment for a 72” Brushcat rotary cutter attachment for their Bobcat skid steer loader. The Water/Wastewater department currently has $8,000 budgeted for this purchase in the 2009 wastewater enterprise fund and with government assistance can purchase this for $5,500. Dave Cosby did mention with the freeze on capital equipment is necessary to get their approval. Chair Hren feels there is a necessary need for the piece of equipment for Parks and Recreation. Chair Hren asked Steve Harrison to comment on the 72” Brushcat rotary cutter attachment. Steve Harrison explained the problems they have with tumbleweeds that they get into the treatment process and clogs up the pumps. The department has a Bobcat and this would be a brush attachment and would run over the tumbleweeds before they got to big. He feels it is a safety issue. Chair Hren asked if the equipment could be commandeered if the District were to have a serious fire hazard. Director Abel said he had talked to both directors and knew this was coming up and can see the need in order to do their job efficiently and Carol saying with new trails this could be used to spread insecticide and pesticide. There were no other objections from the other board members. Dave Cosby told the board in June 2007, Pueblo West Metropolitan District and WDSL.US entered into an agreement for the 4.9 GHz redundant microwave system which connects all the computer services. The contract was for $47,450. The funds were budgeted in the General fund, Water Enterprise fund and Waste Water Enterprise fund. With the involvement of WDSL.US and conversation with Pueblo County for digital radios, the man power was not available to complete the project. Some of the work was performed to keep the systems functioning but the District was never billed for it. The funds were available and budgeted in the same funds in 2008 but the project was still not completed. For the 2009 budget, the funds were not budgeted but are in the fund balance. Dave Cosby requested the funding be approved for the 2009 budget out of Fleet Services and this will allocate the costs to all departments. The budget will have to be amended at the end of the year. The contractor has been working with Dave Cosby and Cresswell Consulting to move the project forward and completion in 120 days. Chair Hren asked Director Vickers and he was not aware of this as it was never discussed during the budget process. Finance Director Jameson said it was in 2008 budget but basically over looked and is asking for the board to give permission to move the funds from fund balance to Fleet Services. Chair Hren said to move forward and complete the project as well as the other Board Director’s. Dave Cosby asked if Acting District Manager Caserta to giving him authorization to sign the purchase order. Legal Counsel told them they would have to make a motion for the transfer.

Director Vickers made a motion authorizing the transfer of $47,500 from the General fund to Fleet Services for the completion of the redundant microwave, vote unanimous. ROAD CONSTRUCTION PROJECT: Rick Morgan mentioned the options for West McCulloch Blvd. road improvement project and recapped the original proposal was to construct West McCulloch from McCulloch Place to Carrizo Springs at a width of 24’ at an estimated cost of $1,700,00. If turn lanes were provided at intersections it would increase the cost to $1,900,000 with drainage improvements at $350,000 for a total cost of $2,250.00. Rick Morgan talked about if they decided to just chip seal the road verses reconstructing the road. Director Abel asked if it would have to be doubled chip sealed. Chair Hren inquired as to how durable chip seal would be with the traffic. Rick Morgan said the life for chip seal is five years then the road would have to be redone. He recapped option one was to widen and reconstruct West McCulloch form McCulloch Place to Carrizo Springs to a width of 36’with three lanes and a 1’ shoulder. The estimated cost for this is $2,500,00 and drainage improvements for a cost of $350,000 for a total cost of $2,850,000. The existing pavement would be recycled eliminating the patches and bumps with a design life of 20 years. This cost exceeds the budget and additional funds would be needed with no other roadway or drainage projects this year. Option two would be to reconstruct West McCulloch form McCulloch Place to Dos Palos to width of 36’ for and estimated cost of $1,400,000 and drainage at $200,000 for a total cost of $1,600,000. The remaining 8 miles of McCulloch be sealed with a chip seal which should last 5 to 6 years for a cost of $700,000 for a cost of $6,000,000. Option three would be to widen and reconstruct McCulloch form McCulloch Place to Avenida del Oro to a width of 36’ for an estimated cost of $1,100,000 with drainage improvements for $200,000 for a total cost of $1,600,000. Total cost to reconstruct McCulloch from McCulloch Place to Avenida del Oro and chip seal McCulloch from Avenida del Oro to Joe Martinez for an estimated cost of $2,050,000. Director Vickers asked about the drainage and mentioned it is bad at Hahns Peak. Rick Morgan explained what would have to be done and additional studies would be required. Option four would be to reconstruct main McCulloch from Highway 50W to Joe Martinez Blvd and asphalt to present widths and to Hahns Peak do 4 lanes with one dropping off at Hahns Peak. Reconstruct McCulloch form Hahns Peak to Palmer Lake with 3 lanes to Baldwyn Drive transitioning back to 2 lanes for an estimated cost of the roadway of $1,400,000 and remaining $850,000 be used to chip seal the rest of McCulloch form Baldwyn to Hwy 50. Drainage cost of $600,000 for a total cost of $2,800,000. Director Vickers asked if he had talked to the County for help with the 1A money. Rick Morgan stated he has not gotten back to the County but did mention the $500,000 the County said they would give the District. Chair Hren mentioned his concerns about his meetings with the Road Task Committee and the commitment of 1A money issues which the district has not received and then the County requiring West McCulloch to be 3 lanes for a cost of $3 million. Chair Hren mentioned that the property owners in that area would lose part of their driveways. Rick Morgan explained the requirements and footage needed for the turn lanes and in some areas there was not enough to do this. Chair Hren would like to schedule a meeting with the Task Force Committee and discuss the road issues and money again. Director Abel asked what the time frame for the 2 inch overlay on Industrial and golf course entrance road. Chair Hren updated him on the Desert Hawk meeting on March 30, 2009 and it will be discussed then. Director Vickers asked Mr. Morgan if he had looked into the mat process on West McCulloch and not changing the width. Mr. Moran said he did and to Carrizo Springs it would cost somewhere around $300,000 to $400,000 range. Director Vickers thought it would be a repair and would not have to conform to the County standards. Rick Morgan explained that process does not correct the deficiencies in the road and not sure how long a chip seal overlay would last but will get that information to him. Rick Morgan gave an update on Industrial where several soft spots have been identified and why the lanes need repaired due to soil issues. Mr. Morgan said there was $132,000 in the contingency funds for the project allocated and $15,000 is left in the fund. The contractor estimated the repairs at approximately $40,000 which will take it over what is left in the contingency fund and asked for direction from the board. Director Vickers stated the money could be found and the project needs to be done right. He also said for $25,000 he did not want to comprise that 1.3 million dollar and that there is 1 million dollars in reserve and can get the money.

Director Vickers made a motion that the board authorizes the $25,000.00 for expenditure to complete the Industrial Blvd project, vote unanimous.

Rick Morgan’s next item was on storm water and issues with the rules and regulations on storm water runoff control and the need to be updated with specific language. The board was given a revised rules and regulations by adding a new Title 15 Relative to Storm Drainage Control and Illicit Discharge Detection and Elimination by a Resolution and approved by the board to accept the updates. Chair Hren inquired as to when the district would have to be in compliance and it would be mid year. Rick Morgan informed the board of R.W. Beck seeking information on how to proceed with the Storm Water Utility Fund for the District and would like to discuss this in a work session on April 28, 2009 for direction on how to proceed. The board members did not have any objections for a work session. Director Vickers asked if this was the firm that previously did the studies. Rick Morgan explained they were a partnership with Northstar which did the identification and storm water needs and R.W. Beck did the study as how is the best way to implement this. Director Vickers thought his recollection was the study was based on 100 year flood criteria. Rick Morgan stated that was some what of a misconception and what data is needed to determine criteria. Rick Morgan’s last item was on the proposed drainage study by Northstar Engineering Wildhorse study which was approved in the 2009 budget but delayed pending questions from Director Vickers. Northstar is asking when that study can be done. Director Vickers concerns were doing a study for a 100 year flood plan and if that was necessary for the infrastructure for that amount of water flow. Rick Morgan explained some of the issues in areas and culverts should a storm occur and to what degree to compare it to what study is needed. Direction from the board is to have a work session at the April 28, board meeting and ask questions at that time. Steve Harrison requested to purchase an emergency sewer bypass pump and associated equipment trailer, a chorine trolley replacement at the water plant for safety issues and approval to purchase water line materials and bid installation of two water line pressure problem projects of 4,800 feet of 8 inch piping on John Powell and 3,600 feet of 12 inch piping on Hahns Peak. Dan Higgins presented the board with a visual outline on these projects for a better understanding of why these projects are needed. Mr. Harrison did say this project will not be done all at once and would like authorization from the board to put this out to bid and bring them back to the board for approval. Chair Hren did not see any problem with giving authorization to put these projects out to bid. He did state that detailed information would be needed on the bids for the board approval, which will be done.

LEASE AGREEMENT: The Pueblo West Metropolitan District entered into a lease with the Bakers in April of 1971 to lease 237.33 acres of land in the vicinity of the Town of Only Springs. Under the lease the Leasee is required to pay all property taxes and assessments on 237.33 shares of capital stock of Colorado Canal Company and 237.33 shares of the Lake Meridith Reservoir Company. In 2001, the District gifted to the Town of Olney Springs approximately 24 acres for their cemetery. This amendment removes those acres from this lease. All other conditions remain the same.

Legal Counsel explained this lease agreement has been ongoing since 1971 with an amended lease since 1985 which was purchased by MCO in 1971 for the water shares.

RESOLUTION 1831 - A Resolution Authorizing A Memorandum Of Extension Of The Farm Lease Agreement Between The Pueblo West Metropolitan District And Bobby J. Baker and Dale W. Baker

(Director Abel made a motion to accept Resolution 1831, vote unanimous.)

PURCHASE OF A 2009 Traumahawk Module Ambulance: The Pueblo West Metropolitan District participates in the Houston Galveston Area Council (HGAC) for purchasing equipment items through an already established bid process. The local dealer in this case is Rocky Mountain Emergency Vehicles from Denver. After meeting with the dealer representative to outline the specifications of the ambulance, the unit price was established and they were able to beat the HGAC pricing by $8,000.00. This ambulance replaces a 1990 med unit currently being used as a frontline piece of apparatus from Station #3. Due to the age and consistent problems mechanically, the fire department has requested the unit be removed from service and disposed of through the normal excess equipment process. It is unknown at this time what we could anticipate selling that unit for.

Brian Caserta, Interim District Manager informed the board that the price was being held at this price and would have to move on it quickly to get it purchased at this price. Director Abel asked how long had the old ambulance been in service and the protocol to sell it. Interim District Manager Caserta explained it would be put out to bid. Chair Hren asked what the bid price would might be, which is undetermined at this time or it can be donated. Director Van Auken commented that a figure should not be mentioned in public as it would be public record and then have a figure to bid with so it should be put out to bid and see if there is any interest. Director Vickers inquired if any used vehicle was looked at which this meets the need and it was looked into. Chair Hren inquired to the number of transports which was 30 and if this will increase. Interim District Manager Caserta thinks it will due to the increase in calls and explained what happens if AMR is not available. Director Abel wanted clarification that the ambulance will be used basically for paramedics to treat someone or AMR transports the person or it is decided they do not need transport. The ambulance will be used to treat not used for transport unless AMR is not available.

RESOLUTION 1832 - A Resolution Approving The Purchase Of A 2009 Traumahawk Module Ambulance With Rocky Mountain Emergency Vehicles/American Emergency Vehicles

A citizen from the audience wanted to know what type of equipment would be in the ambulance and if more manpower will be needed. Interim District Manager Caserta mentioned that the equipment would be transferred from the other ambulance to the new one and no additional manpower will needed. The payment for the lease was discussed and a RFP will be put out for the lease.

(Director Abel made a motion to accept Resolution 1832, vote unanimous)

EXECUTIVE SESSION: An executive session is need for determining positions relative to matters that may be subject to negotiations; developing strategy for negotiations; and instructing negotiators – C.R.S. 24-6-402(4)(e) – Southern Delivery System.

Director Abel made a motion for an executive session, vote unanimous.

ADJOURNMENT: There being no further business to come before the Board, on motion by Director Abel, the meeting was adjourned. The next regular meeting is scheduled for April 14, 2009, at the hour of 6:30 p.m., presently set for the conference room of the Pueblo West Library, 298 S. Joe Martinez, Pueblo West, Colorado.

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