RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, May 8, 2003 at 6:00 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

John Pacetta

C.J. Galbraith

Also in attendance: Fred Huff, Counsel for the District, Mike Lutz (District Engineer), Cathy Harper (Information Services Officer for District), and Anne Rendon, Bookkeeper for the District, and a Jack Barker, AAA Operations.

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

APPROVAL OF MINUTES: Corrected minutes for the April meeting were approved unanimously.

DIRECTOR APPOINTMENT: Alex McCurdy was appointed to fill the vacant seat on the Board and was sworn in by Board President John Pacetta.

FINANCIAL REPORT The Board unanimously approved payments of unpaid bills in the amount of $49,543.39 and ratified payment of bills paid earlier in the month in the amount of $58,107.68. C.J. Galbraith commended the efforts of Cathy Harper in bringing the Accounts Receivable for the District from approximately $80,000 down to approximately $12,000.

MANAGER’S REPORT Jack Barker reported that wells are maintaining their levels, with the exception of Well #2, which is increasing due to supplementation from Well #5. The Board authorized the purchase of 10 curb lockboxes for a total cost of $900; 15 days of sewer jetting at approximately $1000/day, and purchase of a pneumatic sounding device so Well # 5 can be sounded, at a cost not to exceed $500. Mr. Barker also presented the Board with a new Inspection Sheet which will be posted on job sites which will effectively communicate to all parties required approvals, inspections, etc.

PUBLIC INPUT Gary Bryant of 909 Silver Creek Road discussed his position that the main repair performed as part of the hookup for his residence was the responsibility of the District. The District will take the matter under advisement.

The issue of the line extension by Irwin and AAA was also discussed. The Board will ascertain the costs of the extension and then decide what remuneration, if any, should be made to Mr. Irwin. Mr. Huff will prepare a brief paragraph to post on the Website that reiterates the District extension policy, as outlined in detail in the District Rules and Regulations.

ENGINEER REPORT Mr. Lutz indicated that on reviewing the specs for the projected condo project on Silver Lake, each unit would be the equivalent of a single family residence. He has not yet finalized a report on if the system could add that many units prior to the PRV work that would make water from Well #5 available to that portion of the District. He reported that the District will be responsible for I&I (Infiltration and Inflow) compliance. The Board accepted Mr. Lutz’s recommendation to install several ground water monitors and perform periodic readouts; to videotape selected areas of sewer lines as they are cleared and report any obvious damage; to instruct AAA to maintain a log of all sewer line upgrades and manhole repairs and to have the bookkeeper withdraw those funds from the I&I portion of the budget.

Re the Water Storage Tank, the Board reviewed the bids and unanimously approved awarding the contract to MLL, Inc., and authorized Integra to issue notice of such award, and to proceed with obtaining bonds, evidence of insurance coverage, etc. The award bid is in the amount of $359,268, with a simultaneous Change Order to delete Item 1 of the bid (totaling $38,268), for a final award amount of $328,056.

LEGAL Mr. Huff was authorized to publish notice of work completion and notice of final payment of the Lake Quivera headgate project.

At 7:50 pm the Board recessed to Executive Session to discuss the pending legal proceeding brought by Evon Nather.

At 8:05 pm the Board reconvened and adjourned.

Approved at District meeting on June 21. 2003.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District