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 11, 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

C.J. Galbraith

Butch Taylor

John Pacetta

Also in attendance: Fred Huff, Counsel for the District, Mike Lutz of Integra Engineering, Ginny Fountain, Bookkeeper for the District, Erin Johnson, Customer Liaison and Jack Barker AAA Operations, members of the public.

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

FINANCIAL REPORT: Tom Tabuchi, auditor for the District, provided the District with the Audit Report for 2002. No exceptions were noted in the report. The Board unanimously approved to accept the audit with stipulated corrections to some of the date headings. The Board also unanimously approved to pay bills in the amount of $19,763.83.

PUBLIC HEARING: By approved motion, the Public Hearing for the 2004 Budget was opened at 7pm. Numerous members of the public attended. The Board unanimously approved the following specifics for the 2004 Budget: Mill levy for operations at 3.435 mils and mil levy for debt service at 14.27 mils; combined these will generate approximately $88,800 in revenue for the District, of which $17,224 is allocated for operations and $71,575 is allocated for debt service. The Board unanimously approved the 2004 Budget as provided, and established the system development fee at $23,000. This fee will be reviewed again at the June meeting.

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APPROVAL OF MINUTES: Minutes for previous meeting were approved as corrected.

MANAGER’S REPORT Psi at Well #5 was increased from 178 to 198 to improve pressure at the Parsons residence; while the Manager feels the pressure is now at an acceptable level, Mr. Parsons strongly disagrees. AAA recommends installation of the meter at this point so pressure and volume can be measured. By unanimous motion the Board approved notifying Mr. Barnes that his installation at the Lake Q residence has failed inspection, with notification to the county that service will not be available to the property until all issues are brought into compliance.

ENGINEER’S REPORT: The water storage tank is ready to go on line once the altitude valve is adjusted.

LEGAL: Mr. Tann’s request for an easement vacation along the common lot line where he is combining 2 lots was approved subject to the stipulation .that should the lots be uncombined in the future the easement will be reinstated.

OTHER MATTERS: Sam Grech requested that his name be put on a list for whenever the District agrees to put down additional roadbase where roads have eroded over a period of time, to the detriment of the buried water lines.

The meeting was adjourned at 8:25 pm.

Approved at District meeting on February 12, 2004.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District