The meeting was called to order by Mike Deck at 4:03 PM. Those in attendance were board members (Mark Johns, Rick Moeller, Bob Farmer and Bob Champ), Mary Wagner (Bookkeeper) and Water System Operators Frank Hauke and Dick Winters. No members of the public were present.

The minutes of the November 17, 2003 minutes were discussed. Rick Moeller made the motion that we approve the minutes of the November 17, 2003 meeting. Mark Johns seconded the motion, which passed unanimously.

The balance sheet, profit and loss by fund, profit and loss ytd comparison and P&L budget vs. actual (Operating) were discussed. No items were noted to be significantly different than our budget predictions except with respect to the tap fees. We underspent our Capital Expenses because of the delay in the Water Storage tank. Handling of tap fees with respect to the budget was discussed and Mary will look into how we might do this in the future. Overall, our budgeting process was quite accurate and there is no need to amend it.

Bob Farmer noted that we would be spending $575 for a magnetic locator to be used by the operators for maintenance and troubleshooting.

Frank e-mailed the following report to the board and presented it at the meeting.

• We put in 4.5 hrs monitoring and 6.5 hrs maintaining the system from November 11 thru December 8, 2003.

• Took water sample for E-Coli lab test at 7331 Spring Court. Chlorine measured 0.39 mg/l. Sample passed.

• Read meters on 11-29-2003. What are the guidelines on when the meters should be read?

• The difference between water-in vs. water-out increased this month from 0.2% to 4.9%. The Gallons/Day increased from 69 gals to 806 gals.

• As we reported last meeting, the Xcel power lost one phase (poor connection on one of the transformers). The control circuit phase sensor and transfer switch did not detect the loss of phase. Hopefully we have corrected all the problems. See below.

• Repaired the phase sensor. The relay contacts were welded shut. We think we have set the transfer switch to sense the phases of Xcel power coming in. However, we haven’t been able to check it out.

• We wired up the pump house porch light to come on whenever the generator is running.

• We have decided the Dunham & Morrow model DML2000 magnetic locator at $575.00 would meet our needs. I submitted an order form to B. Farmer.

Meter reading was discussed and it was decided that the meters could be read +/- two days from the end of the month. If inclement conditions cause us to miss this timeline then Frank and Dick will estimate the usage and keep track so that adjustments may be made if necessary.

Water Storage:

Because the easement to be negotiated is on the Deck property, Mike will excuse himself from the meeting at the end of the meeting so that the remaining board members can go into executive session to discuss the negotiation of the easement.

A septic perk test was discussed with respect to the Deck property. Doing a perk test will elucidate whether the easement will affect the ability to replace the leach field in the future, if necessary. EBCWD will pay for this test and Mark Johns will contract with an engineer to have this test done.

Mike talked to Mr. Steinhauer and explained that the district would need a temporary construction easement for a small portion of his property. Mark had a survey of the easement on the Steinhauer property. There was no indication that there would be a problem acquiring this temporary construction easement.

Terry Kenyon has constructed a schedule on the construction of the water storage tank. Completion would be at the end of the summer if we start in January. Mike will contact Doug Short (Lafayette) to inform them of our intent and see if they want to review our plans and whether they will approve a delay. It was also noted that the County would also have to be involved in a land use review.

New Business:

Shaffter Reimbursement:

Dr. Shaffter has requested reimbursement for services of a water engineer that was engaged to look into stagnant water that persisted in her front yard this summer. Chlorine was noted in the water thereby linking the source of the water to a leak in our main. The cost of the engineering bill was $488.75. Concern was expressed about future liability. Dick Lyons has drafted a satisfaction accord and release. This would release us from future liability. Our insurance should be informed but the deductible is $500. It is our opinion that there was a leak, which supplemented the high water level associated with this property.

Rick Moeller made the motion that we pay Dr. Shaffter $488.75 for the cost of the engineer with respect to this problem contingent upon Dr. Shaffter signing the satisfaction accord and release. Bob Farmer seconded the motion, which passed unanimously. Mike will contact Dick Lyons and then we will make payment, which will come out of miscellaneous expenses.

2004 Water Rate and Fee Determination:

Mike Deck had a hand out which will be sent to the District. The handout explains our fee structure for the coming year. It changes only with respect to the Lafayette water rate increases. A cost calculator will be included in the mailing. Mike also had a copy of the web page, which he will post on the web, showing the rates and fee schedule. Also noted on the web page is the mil levy for 2004 which is 22.47 mills ( based on the assessed valuation).

Mark Johns made the motion that we adopt the rates and fee structure as proposed in the hand out. Rick Moeller seconded the motion, which passed unanimously.

Directors’ Comments and other matters to come before the Board:

Mike made a presentation to Frank and Dick in appreciation for their service during the past year. Each received a Poinsettia Plant and a card as a token of our appreciation.

Mike reviewed items that he had received during the past month and then excused himself from the executive session.

Executive Session:

Rick Moeller made the motion that we go into executive session pursuant to Section 24-6-402(4)(e) for purposes of discussing the negotiation for the easement of the Deck property. Mark Johns seconded the motion, which passed unanimously.

Mark Johns made the motion that we come out of executive session. Bob Farmer seconded the motion, which passed unanimously.

Easement Negotiation:

Bob Champ made the motion that we negotiate with the Decks for the Water Storage Tank Easement the amount specified in the McCarty Land & Water Valuation, Inc., Just Compensation Appraisal of Michael and Carol Deck Property prepared on 1 December 2003. Bob Farmer seconded the motion, which passed unanimously.

Mark Johns will contact Dick Lyons in order to effect the offer to the Decks.

Bob Farmer made the motion that we negotiate for a temporary construction easement for the Steinhauer property for the duration of the construction and the warranty period in the amount of $500.00. Bob Champ seconded the motion, which passed unanimously.

A motion was made to adjourn by Mark Johns, seconded by Bob Farmer and unanimously approved. The meeting was adjourned at 5:50 PM.

The above is respectfully submitted by the secretary…Bob Champ, December 16, 2003.