RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, August 14, 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

Butch Taylor

Also in attendance: Fred Huff, Counsel for the District, Mike Lutz (District Engineer), Ginny Fountain, 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.

FINANCIAL REPORT: Payment of bills in the amount of $95,761.72 was unanimously approved. The Board also unanimously approved Erin Johnson’s contract labor compensation at $20/hour.

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APPROVAL OF MINUTES: Minutes were approved unanimously, as corrected.

MANAGER’S REPORT Pipe for Lake Q repair will be picked up within next 24 hours and repair will be completed; PRV improvement will be next item on agenda. AAA also reported that well depths are at best levels since measurements were initially taken back in 9/01.

ENGINEER’S REPORT: Mr.Lutz reported re the water storage tank that excavation is complete and the underground pipes are now in place. Concrete crews may need to be doubled to assure completion of project by October.

OTHER MATTERS: Erin Johnson reported that despite numerous requests made of Cathy Harper, the Tap Credit Book has not been forwarded to her possession. The Board unanimously voted to issue no tap credits without written documentation from the lot owner, typically consisting of an executed contract with the District and a receipt of payment.

For the record it was noted that on July 14, 2003 Alex McCurdy tendered his resignation via email to President John Pacetta; Mr. Pacetta accepted the resignation on the same date.

Paul Johnson noted that MLL gave rocks from the water storage job site to Winterland property owner Mr. Kirk. Mr. Johnson notified MLL that no further rocks were to be allowed to leave the premises.

LEGAL: Mr. Huff will deal with the issues prompted by Iran Emeson’s complaint to Scott Cuthbertson, Asst. Division Engineer, State Water Engineer’s Office. Mr. Huff indicated this is more of a nuisance item than anything else, and the issues raised are lacking in substance and legal standing. Regarding the insurance carrier for the District re the Lake Q break, no information is yet forthcoming.

At 7:40 pm the Board recessed to Executive Session to approve the minutes for the Executive Session at the July meeting. At 7:10 the Board came out of recess and adjourned.

Approved at District meeting on September 11, 2003.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District