RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, July 11th, 2002, at 6:30 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

Kevin Zegan

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

CALL TO ORDER: John Pacetta called the meeting to order at approximately 6:40 pm.

OPENING MATTERS: John Pacetta announced the resignation of Craig Lagerman. All members of the Board thanked Mr. Lagerman for all the work he has done for the District in the past two years. Notice of the vacant position will be posted in the community.

FINANCIAL REPORT: The Board approved payment of outstanding invoices in the amount of $28,618.51.

APPROVAL OF MINUTES: Minutes for the June meeting were unanimously approved.

MANAGER’S REPORT: Jack Barker recommended that the Board approve a jetting of the wastewater lines at various manholes throughout the District. This past season, significant resources were expended by the District dealing with frozen wastewater lines, and it is hoped that doing this maintenance may lower costs in the future. The Board unanimously approved an expenditure not to exceed $15,000, with the District approving more specific details as they are provided by AAA.

The requests of Barnes, The Bed and Breakfast, and Mr. Johnson were deferred to Executive Session to consider legal ramifications for the District..

The annual contract for AAA was amended for the coming year from $3033.33/month to $3184.99/month. Scope of work will remain the same.

ENGINEER’S REPORT: Mr. Lutz reported that the costs of the storage tank would run approximately $146,000, not including cost of installation, engineering costs and booster pumps. Lutz is still examining costs of securing a foundation. Re the Headgate for Lake Quivera, Task Order 21 was approved; Mr. Lutz was directed to provide an approximate estimate for installation of the coffer dam.

NEW BUSINESS: The Board discussed the District assuming responsibility for purchase and installation of all water meters; Paul Johnson will research this further.

PUBLIC INPUT: Cory Camallieri, a Director on the Metro Board, read a proposal request to combine both the Metro Board and the Water Board. John Pacetta stated he would work as Water Board liaison for the project, and explore the pros and cons and requirements of such a merger.

The District recessed at 9:30 to meet in Executive Session for the purpose of discussing abatements and/or reimbursements for Mr. Barnes, Mr. Johnston and the Bed and Breakfast.

Meeting was reconvened at 10pm and adjourned.

Approved at District meeting on August 12, 2002.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District