RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, February 12, 2004 at 6 pm at the Alice School House, Silver Creek Road, Idaho Springs, CO.

ATTENDANCE: A regular meeting of the Board of Directors of the St. Mary’s Glacier Water and Sanitation District, Clear Creek County, CO, was called and held as shown above and in accordance with the applicable statutes of the State of Colorado, with the following directors present and acting:

Paul Johnson

C.J. Galbraith

Butch Taylor

John Pacetta

Also in attendance: Fred Huff, Counsel for the District, Mike Lutz of Integra Engineering, Ginny Fountain, Bookkeeper for the District, Erin Johnson, Customer Liaison and Anthony Ramsey of AAA Operations, members of the public.

CALL TO ORDER: John Pacetta called the meeting to order at 6:00 pm.

RATIFICATIONS: There was no quorum for January’s meeting; the Board moved and approved unanimously to ratify payment of January bills in the amount of $69,282.28, which were paid on January 8, 2004. The Board also unanimously ratified appointment of Tanya Mundy as the designated election official for the 2004 election.

APPROVAL OF MINUTES: Minutes for December’s meeting were unanimously approved as submitted.

FINANCIALS: The Board unanimously approved payment of bills in the amount of $40,823.85, and authorized transfer of $10,000 from CCN Savings and $22,000 from Colotrust to the Operating Account. Regarding the various accounts with unpaid balances, the bookkeeper was authorized by motion and unanimous approval to send notices to all delinquent individuals stating that if accounts are unpaid as of 5/31/04, services will be terminated.

MANAGER’S REPORT AAA reported to the District that Mr. Parsons moved the water line under his home after it was installed and tested by AAA with the homeowner present, and that may be the possible culprit in the pressure issue. Mr. Parsons stated that he would wait until spring to pursue the matter further with the District. Anthony Ramsey was authorized to attend the CC Watershed Authority on behalf of the District..

ENGINEER’S REPORT: As recommended by Mr. Lutz, District Engineer, the Board moved and unanimously approved Change Order No. 2 for the Water Storage Tank and the order will be submitted to MLL forthwith. In response to Tim Able of Yenter Companies appearing before the Board re his dispute with MLL concerning payment for $2100 worth of work installing 6 rock anchors for the water tank, Mr. Lutz exhibited copies of the original specs for the bid and he indicated MLL should have been aware of the specified anchors. Mr. Huff was directed to inform MLL to resolve the dispute and properly pay all contractors.

LEGAL: Notices of election will be published this week, as required by state statute. The Board unanimously approved the motion to designate the 2^nd Thursday of each month for the regular meeting of the St. Mary’s Water and Sanitation District, at the Alice School House on Silver Creek Road, Idaho Springs, CO. Regarding Mark Barnes’ request to use a side lot line easement for connection of the water service line, District Counsel was instructed to inform Mr. Barnes in writing that no authorization would be considered until the system development fee for the project was paid. Mr. Huff was also instructed to inform the CC County Building Department of the occupany of 325 Aspen Road, where there is no water or sanitation services, and to request removal of those occupants as a community health issue.

The meeting was adjourned at 7:10 pm.

Approved at District meeting on March 11, 2004.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District