RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Saturday, September 7, 2002 at 9:00 a.m. 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, Mike Lutz (District Engineer), Ann Rendon, District Bookkeeper, and Cathy Harper (Information Services Officer for District).

CALL TO ORDER: John Pacetta called the meeting to order at 9:10 a.m.

FINANCIAL REPORT: The Board approved payment of outstanding invoices in the amount of $41,224.19, including $18,970 to AAA for draining of Lake Quivera. Tom Tabouchi of Hull & Assoc. P.C. presented the Board with the final audited financial statements for 2001. His suggestion to have just two appropriations (water/wastewater) was well received by the Board, as well as his suggestion to more exactly segregate whether income or expense items were a water or wastewater item. By motion, the Board approved the audit report as submitted. Ms. Rendon will be paid her previous hourly fee to execute these changes retroactively to January 2002. On another matter, it was noted that likely 4 additonal water taps will be sold before year end, and 12 new users added to the system.

APPROVAL OF MINUTES: Minutes for the August meeting were approved.

MANAGER’S REPORT: No Manager’s Report was provided.

ENGINEER’S REPORT: Four bids were received for the headgate at Lake Quivera; the lowest bid in the amount of $57,985 was submitted by Mayer Lemke Landsiedel Inc. (MLL) and was accepted by Board vote, subject to receipt of bond and insurance documentation as specified in the contract. By unanimous vote the Board further authorized Integra to issue notice to proceed upon receipt of same bonds and insurance. Mr. Lutz noted that one reason the bid may have been lower than the others is that the firm had a source for purchasing the headgate itself that was on a faster timeline than firms used by other bidders. (MLL specializes in concrete structures for drainage). Mr. Lutz noted that his original estimate to the Board for headgate construction (not including engineering fees, which will run approximately $30,000) was for approximately $60,000.

Time frame for completion, while not meeting the October 1 deadline, has been verbally approved by the State Water Engineer, and Mr. Huff will confirm that in writing to the Engineer’s office. It was noted that the volume of Lake Quivera is approximately 16.5 acre feet, down from its original size of 20.5 acre feet.

Re power to Well # 5, that appears to be imminent.

The Water Storage Tank was then discussed, most specifically the benefits of building an 180,000 gallon tank vs. a 250,000 gallon tank. Thomas Stone, a former director, proposed the advantages of the latter in a memo to the Board. Winterland Unit 4 Lot 47 was further discussed as the possible site; the owner is open to the idea of sale to the District. Mr. Huff was instructed to submit to the owner an option to purchase subject to site suitability tests to be done by Integra. Integra will evaluate this specific site for an 180,000 and 250,000 gallon tank, evaluating costs and other factors. This evaluation will cost approximately $7000-$8000 and will include a survey and extensive soils tests. The Board is committed to devoting significant funds for rehabilitation of the site after construction so visual impact is minimized. While Lot 47 will not serve by gravity three of the District’s zones, use of fire pumps may be an option until a second tank can be built.

NEW BUSINESS: Kenny Sanders discussed with the Board the option of doing water taps (under Master Plumber license) and the Board agreed that we had not intended to preclude his company from doing so. Mr. Huff will follow through on this. Denver

Ne Vaar requested copies of Service Plan and Rules and Regs for the District and Mr. Huff agreed to provide those to him, suggesting he may want to obtain some of the information from the website as reprinting the lengthy documents could be costly and the Service Agreement, in particular, is mostly historical. He also offered to make the documents available at his office to read, and indicated other venues where they could be read/copied. Jeff Ryan of 11 Elk Court inquired as to the depth of the main line at his property; Paul will review this with AAA and get back to Ryan. Sam Grech inquired as to when road base would be put down in front of his property, and Kevin Zegan agreed to follow through on that.

LEGAL: Mr. Huff indicated that property tax revenues will not change greatly from the previous year; a letter has been sent from his firm to the state regarding sludge disposal; he was also instructed to obtain a survey from the realtor representing the individual who owns property adjacent to the wastewater treatment plant, where our main lines are in the road on that property.

Meeting was adjourned at 11:45 a.m.

Approved at District meeting on October 10, 2002.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District