RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, December 12, 2002 at 6:00 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), Cathy Harper (Information Services Officer for District), and Anne Rendon, Bookkeeper for the District, and Jack Barker, District Operations Manager.

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

FINANCIAL REPORT: The Board approved payment of outstanding invoices in the amount of $17,488.02. The Board was informed that approximately $53,000 had been transferred to the interest bearing Colorado Trust account. Regarding the matter of changing the position of Information Services Office from a contract position to a salaried employee position, it was taken under advisement by counsel.

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

MANAGER’S REPORT Lab samples and analysis for the month were unremarkable. Mr. Barker reported there were 4 days left of jetting of the wastewater mains; an industrial vacuum was purchased by AAA which will eliminate the need for digging up water main valve boxes at a significant savings to the district.

PUBLIC HEARING RE PROPOSAL TO AMEND THE RULES AND REGS: The intent to amend the rules and regs is to better define the division of responsibility between District and homeowner, to redefine who will work on District property (specifically the actual connection between the resident line and the District lines), and who will control and maintain the District water meters. A motion was made and unanimously approved to approve the proposed revision to the rules and regulations subject to a review of the written changes at the January meeting. Briefly, the District Manager will now be responsible for the physical connection from the curb stop to the water main and the wastewater cleanout, and will be responsible for meter purchase, assembly and installation.

ENGINEER’S REPORT: District engineer will proceed with core samples at the projected water storage site. Headgate installation now targeted for the end of December.

LEGAL: Motion was made and unanimously approved to purchase Lot 47 Winterland Unit 4 for a total purchase price of $5000. ($500 has already been paid).

Meeting was adjourned at 8:00 pm.

Approved at District meeting on January 9, 2003.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District