RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, October 10, 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, Mike Lutz (District Engineer), Jack Barker of AAA, District Operator, and Cathy Harper (Information Services Officer for District).

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

FINANCIAL REPORT: The Board approved payment of outstanding invoices in the amount of $54,848.52.

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

MANAGER’S REPORT: By motion and unanimous vote the Board authorized the District Operator to approve/disapprove excavations in process to hook to District mains, and to issue Stop Work Orders as necessary; AAA will then so inform the Board of any orders. Also, at the December meeting the Board will consider an amendment to the rules and regulations pertaining to who will be permitted to do actual connections to District lines. The Board is also considering adding the cost of meter installation and actual connection to the District as part of services provided with payment of the System Development Fee. Discussion of last year’s problem with Crest Dr. freezing resulted in a motion and unanimous approval to install internal heat wire as an experiment at both the B&B and the Wildeman residence. Mr. Goldhammer will be requested to bleed his lines for the winter. Cost approved not to exceed $1000 per installation. Board also approved by unanimous vote extension of collection line at lots 716 and 717.

ENGINEER’S REPORT: Well Number 5 has been brought on-line, but will require installation of a bypass pressure relief valve. Walls for the headgate structure have been poured; completion still stands at mid-November.

LEGAL: Mr. Huff gave the Board copies of his letter to the State re permitting for Lake Q headgate project. The owner of the lot potentially targeted for the water storage tank has agreed to take payment by the District of past due taxes in an amount less than $500, as option funds against purchase of said lot. Mr. Huff also advised the Directors that they should decide whether to include in 2003 budget funds for an election to determine if the District should exempt itself from the 5.5% taxation rule.

Meeting was adjourned at 8:30 pm.

Approved at District meeting on November 16, 2002.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District