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 13, 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

John Pacetta

Also in attendance: Fred Huff, Counsel for the District, Ginny Fountain, Bookkeeper for the District, Erin Johnson, Customer Liaison and Jack Barker of AAA Operations, members of the public.

CALL TO ORDER: John Pacetta called the meeting to order at 6:05 pm.

APPROVAL OF MINUTES: Minutes for March’s meeting were unanimously approved.

FINANCIALS: The Board approved $62,541.16 in unpaid bills.

MANAGER’S REPORT The Alice Road main is still frozen. The ph of the water storage tank will be retested. It was noted that the high ph level could be from the inactivity of the water in the tank. Shane Terra’s property on Alice Rd. is being affected as the tank is his only water supply source until the main thaws.

ENGINEER REPORT: Mr. Huff on behalf of Mike Lutz presented the final Change Order 2 for the water storage tank. The Board moved and unanimously approved to execute the order.

LEGAL: The Board approved sending Jim Egan to the Public Rule-Making Hearing to be held June 16, 2004. The Board also moved and unanimously approved Masini & Co as auditors for the 2003 fiscal year, at a contract cost not to exceed $4,500.

PUBLIC COMMENT: Mr. Boyd, of 9283 Glacier Road, reported that his frozen water line is exacerbated by the fact that all blowoffs and manhole covers have been paved over by the county. Erin Johnson confirmed that the county said it would dig up the connections if locates were done. A question from Scott Dyer prompted discussion as to whether main lines should ever be extended through the easements along each property line. Issues of concern would be clear cutting of trees and subsequent erosion, as well as the fact that said lines typically benefit very few, as opposed to an extension in the road. The advantage of keeping all service lines in the public right of way was also discussed.

NEW BUSINESS: The correspondence from Greg Marsh was referred to Mr. Huff for his response.

The meeting was adjourned at 7:15 pm.

Approved at District meeting on June 10, 2004.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District