RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Saturday, November 16, 2002 at 9:00 am 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), Cathy Harper (Information Services Officer for District), and Anne Rendon, Bookkeeper for the District.

CALL TO ORDER: John Pacetta called the meeting to order at 9:05 am.

FINANCIAL REPORT: The Board approved payment of outstanding invoices in the amount of $46,639.49. The Board also approved moving funds from the operations account to the interest bearing Colorado Trust account, in an amount not needed for immediate day to day operations of the District.

APPROVAL OF MINUTES: Minutes for the October meeting were approved as submitted.

MANAGER’S REPORT Manager was not present and no report was provided. None of the directors nor counsel had been made aware of any urgent matters to be brought before the Board.

BUDGET HEARING and APPROVAL OF 2003 BUDGET: The Public Budget Hearing was called to order and questions were fielded from several members of the public in attendance. Subsequent to public comment, the Board approved by unanimous vote to adopt a resolution to approve the budget as submitted and to certify the mill levy of 22.785; 4.247 mils is allocated to operations ($16,431), 18.5 mils is allocated to debt service ($71,576) and .038 mils ($146) is allocated for rebates and abatements.

ENGINEER’S REPORT: Installation of the headgate remains several weeks away. Change Order #7 for Well # 5 in amount of $4877 was unanimously approved (re bypass valve). The topo survey for the lot potentially to be purchased for the water storage tank was reviewed. It appears that the lot would be suitable for tank location. Mr. Lutz was instructed to proceed in all due haste to finalize information needed so the District could potentially proceed with the acquisition and then complete the County review process so construction could be finalized in late 2003. The Board reiterated it’s desire to construct the tank in such a fashion to have minimal if any visual environmental impact.

OTHER MATTERS: A motion was made and unanimously passed to add Mr. Goldhammer’s residence on Crest Drive to the heat wire experiment. Also, the Board unanimously approved to propose a change in the rules and regulations of the District, pertaining to what parties or agents will be authorized to make connections to the District main, or other matters pertaining thereto. This proposal will be posted for public notice and said proposal will be considered at the next regular meeting of the Board, on Thursday, December 12, 2002 at 6pm.

LEGAL: The Board reviewed with Mr. Huff various options of long outstanding liens levied against certain customers of the District.

Meeting was adjourned at 11:15.

Approved at District meeting on December 12, 2002.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District