RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Monday, August 13, 2007 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 Wood

C.J. Galbraith

John Pacetta

Heather Ulrich

Also in attendance: Fred Huff, District Counsel, Carmen Barker, District Bookkeeper, and Jack Barker of AAA, District Manager, and members of the public.

CALL TO ORDER: John Pacetta called the meeting to order at 6:10 pm.

APPROVAL OF MINUTES: Minutes for July 2007 meeting were approved as submitted.

FINANCIALS: By motion and unanimous vote, the Board approved payment of outstanding invoices in the amount of $55,009.27.

PUBLIC HEARING The public hearing began with a presentation from Mark DiFrancia of BadgerMeter Inc., who spoke about the system’s use in Aurora, North Glenn and Arvada, as well as some smaller communities with private systems. He said that although an automated meter reading system is only state mandated for 500 users and over, the state is presently considering lowering the threshold. He spoke to how the system is more accurate and involves less man hours than manual read systems, as well as the obvious conservation advantages and the potential for leak detection/overuse detection . In response to a public member inquiry as to whether the system had been used/tested at altitude (ie, St. Mary’s is at 10,500 feet), the Board asked Mr. DiFrancia to provide a technical contact at Badger who could answer questions re altitude perimeters, as well as test situations involving ice, snow, etc.

In response to Mr. Boling’s remark that leakage in homes is minor compared to leakage out of the system’s main lines, Director Pacetta said it was important to distinguish between usage and leakage. The District does not have the financial means to replace the system mains; it does have a convenant to monitor water usage and to control those areas that are feasible within our budget.

Mr. Boling also brought up the issue of replacing lines where there is habitual winter freezing, as an alternative to automated meter reading equipment. The general consensus of the Board is that the two are not exclusionary goals.

Fred Huff was asked to explore with Jim Egan the possibility of obtaining some grant funds for the project, should it be approved in the future. It was determined that further research would be necessary before making a decision on the purchase, and that we would explore testing the system in the District before purchasing.

MANAGER’S REPORT Per Manager’s recommendation, the Board motioned and unanimously approved cleaning of the WWTP’s aeration basins at an approximate cost of $7400 (of which $3000 would be the cost of the vac truck rental). This cleaning should be done on a fairly routine basis and had been postponed in the past due to financial constraints; it would be prudent to do it now.

Mr. Barker noted that the leak at the corner of Beaver & Silver Creek will be dug tomorrow.

Five fire hydrants are on order; Jack Barker will do some pressure readings to explore possible locations. Hydrants are to be installed before the winter season; the Board indicated placement, if possible, in more highly populated areas.

LEGAL REPORT At Mr. Huff’s recommendation, the Board motioned and approved unanimously to have St. Mary’s Water & Sanitation District represented by Ronni Sperling at her new firm, Buchanan & Sperling PC and to transfer all papers and electronic files forthwith. Ms. Sperling has been (and thus will remain remain) the District’s Water Counsel and represents the District regarding its water rights. Mr. Huff is and remains the General Counsel for the District.

Re correspondence from Paul Loose, Mr. Huff was instructed to notify him that the contract period has terminated and the deferred usage fee will now be billed.

OTHER MATTERS Jack Barker will look into the report of a manhole sinking on Texas Drive.

There being no further business, meeting was adjourned at 7:40 pm.

Approved at District meeting on September 17, 2007.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District