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 10, 2003 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

John Pacetta

C.J. Galbraith

Alex McCurdy

Also in attendance: Fred Huff, Counsel for the District, Mike Lutz (District Engineer), Anne Rendon, Bookkeeper for the District, Erin Johnson, Customer Liaison and Jack Barker AAA Operations.

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

NEW MATTERS: Butch Taylor of 591 Brook Drive was appointed and sworn in as Director. Alex McCurdy voted against the appointment on basis of the fact Mr. Taylor is not a full time resident. Mr. Taylor is an attorney for a water environmental engineering company.

FINANCIAL REPORT: Payment of bills in the amount of $26,473.41 was unanimously approved. A motion was made and approved unanimously to appoint Ginny Fountain as District contract bookkeeper, replacing Anne Rendon. Ms. Fountain will be compensated at the rate of $30/hour; her contract will be renewable annually by Board vote in December for the following year.

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APPROVAL OF MINUTES: Minutes were approved unanimously.

MANAGER’S REPORT AAA reported that a manual camera will have to be brought in to video the main at the Lake Q break. The asbestos pipe on site will be disposed of properly. The Manager’s monthly report was unremarkable; things are proceeding uneventfully at the WWTP..

PUBLIC INPUT Mr. Parsons of 186 Alice Drive reported on the continued lack of water pressure at his home construction site. Remedies already attempted were recounted at length; AAA secured the engineer’s permission to increase the pressure at well house #1 by 20 psi to see if that remedies the problem.

ENGINEER’S REPORT: Mr. Lutz reported that he is still negotiation with MLL re change order billing pertaining to the headgate at Lake Q. He also reported there has been a delay in onset of construction of the water storage tank but the situation should be remedied shortly.

OTHER MATTERS: President John Pacetta reported that Cathy Harper resigned her position as Customer Liaison Officer at the request of Directors Pacetta, Galbraith and Johnson (McCurdy not responding in either affirmative or negative). The request was prompted by Ms. Harper’s deliberate actions to keep knowledge of the Lake Q break from Pacetta, Galbraith and Johnson, while meanwhile directing AAA to complete the repair as soon as possible as “the POA will pay for it.” District records were placed in Ms. Harper’s driveway for Director Johnson to pick up, which he did straightaway.

By unanimous vote the Board approved Erin Johnson to replace Cathy Harper as Customer Liaison for the District.

At 7:40 pm the Board recessed to Executive Session to discuss the possible legal matters involving the sewer break on Lake Quivera. At 8:25 the Board came out of recess and adjourned.

Approved at District meeting on August 14, 2003.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District