The meeting was called to order by Mike Deck at 4:04 PM. Those in attendance were the board members (Bob Farmer, Rick Moeller, Mark Johns, Mike Deck and Bob Champ) and Dick Lyons (Legal Counsel.). Our two Operators (Dick Winters and Frank Hauke) were present. Several members of the public were present.

Public Comments:

Scott Rodwin (owner lot #59) had written a letter, which was included in a packet of handouts, which Mike Deck had. His concern is with the Lafayette moratorium on taps. Lafayette has informed us that they would not grant EBVWD any more taps during the drought restrictions. Presented in the hand out packet were letters to Lafayette asking for two more taps and their response rejecting the issuing of the taps. Both sides are reading the IGA to support their respective positions. Scott needs one tap and Jim Keeler (present at the meeting- owner lots #51 and #52) needs two taps. It is believed that with the vacant lots a total of up to 11 taps may be needed in the future. Dick Lyons summarized what actions we may take as follows:

We could agree with the City of Lafayette position and inform the lot owners of our decision via a letter.

We can object to the City of Lafayette position in writing but do not press the issue.

We can object and go to court and let them decide the issue. The statute of limitations is 3 to 4 years and it may take as long as a year to get a judgement.

The last action would be to push on Lafayette saying that according to the IGA they should give the 5-year notice of failure to provide service and we would, in 5 years, need to find another provider or water rights to provide Lafayette water.

Mike offered to provide IGAa for the interested members of the public that were present. Many options were discussed. Among these were well permits, cisterns, buying existing unused taps, etc. 113 taps have been purchased from Lafayette and the drought moratorium exists on taps 114 to 125 (total buildout). A letter has been written (but not posted) to those owners of taps who are currently not using them and may wish to sell them. This approach was discussed in detail and some members of the board were skeptical with respect to this approach.

The financing and timeline of litigation was discussed. The timeline for litigation would be on the order of 9 to 12 months.

During this timeframe Lafayette may lift the drought restrictions (pipe connecting S. Boulder Creek to treatment facility completed) and this may be a moot point.

Arbitration and mediation were also discussed but it was thought that these approaches would not be fruitful.

Mark Johns made the motion that we go into executive session pursuant to Section 24-6-402 (4)(b) for purposes of consulting with our attorney on the issue of advising us on our risks with respect to the Lafayette Tap issue. The motion was seconded by Bob Farmer and passed unanimously.

Bob Farmer made the motion that we come out of executive session. The motion was seconded by Rick Moeller and passed unanimously.

Bob Farmer made a motion that the district recognizes this tap moratorium as a timing issue and that we object to the City of Lafayette, inform the untapped lot owners of Lafayette’s position that there are no taps available and continue to negotiate with Lafayette on the purchase of taps and inform the untapped lot owners of progress. Bob Champ seconded the motion. Discussion ensued clarifying that all untapped lots will be informed. The motion passed unanimously. (Rick Moeller was absent during the vote.)

Scott Rodwin asked about EBCWD willingness to sell its well. He was informed that we still may need the well for future negotiations with Lafayette. There may be other state requirements, which would also make this action problematical.

Bob Farmer made a motion that we adopt the resolution of a non-profit organization or association adopting banking signature card practices. The motion was seconded by Mark Johns and passed unanimously. The appropriate forms were signed opening the account with First National Bank.

Mike read the letter he composed to CPL with respect to the total monies proposed as final payment. After discussion on the matters addressed in the letter, Bob Farmer made the motion that we approve the letter to Ramon Diaz (CPL) with respect to the final settlement. Also included in this motion is the letter to Mr. Lopez on his driveway damages (see below). Bob Champ seconded the motion, which passed unanimously.

Mike also had a letter to Mr. Lopez in the handouts noting our settlement conditions for problems noted with his driveway. We intend to issue a check for what we deem is our fair portion of these costs. This letter was included in the above motion with respect to the CPL contract completion.

Mike Yee (Green Pasture Tractor Service) has been asked for an estimate on the grading of the driveway. We will try and get this estimate prior to the next meeting.

Water usage was discussed. Last month we used just under 1M gallons. Our projected use for July is 1.06 M gallons, still under the Lafayette limit.

Naim Aweida had asked Mike for 10K gallons more that the 25K maximum. This hardship exemption was discussed in some detail. Bob Farmer made the motion that we deny this exemption. The motion was seconded by Bob Champ and was passed unanimously.

The rules and regs were read with respect to amounts homeowners can use and penalties involved.

This was tabled to the next meeting.

Mike had two letters in the handouts that would inform the district residents as to the Customer Confidence Report and our efforts to minimize water usage. Mark Johns will coordinate and send out these mailings.

A motion was made to adjourn by Bob Champ, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 6:30 PM.

The above is respectfully submitted by the secretary…Bob Champ, 9 July 2002.