The meeting was called to order by Mike Deck at 4:04 PM. Those in attendance were board members (Mark Johns, Rick Moeller, Bob Farmer and Bob Champ), Mary Wagner (Bookkeeper) and Terry Kenyon (Engineer). No members of the public were present.

The purpose of this meeting was to discuss and finalize the budget for the Budget Hearing on 17 November 2003.

Mike Deck passed out a table on the EBCWD long-term Financial Plan. Mike noted that we have spent all the Bond money allotted to the district. This includes the money to Lafayette for tap fees. Mike reviewed the long- term financial plan. Capital Purchases in the plan are the Storage Tank (due in 2004), the Paragon Loop, the Empire-Spring Loop, and the Panorama-Spring Loop. The purpose of this plan is to assure us that with the planned revenue and expenses we will have a positive Ending Fund Balance through 2017.

The construction and engineering expenses for the storage tank to be incurred the latter part of this year and in 2004 was discussed and the numbers for the 2004 budget were finalized. It was also noted that a second pipe to the storage tank would cost about $7500 but would solve any cavitation problems noted previously with air in the Lafayette input line. It was decided to include this second line connection to the storage tank in order to assure that this problem does not occur.

Replacing the water mains in Benchmark was discussed in some detail. Terry gave an estimate of $101,000 for construction to replace the mains with Ductile Iron Pipe and about $9000 for Engineering Costs. To replace this section of the district it would cost the homeowners about $1000 each to replace the line. It was decided to monitor the frequency of problems in this section and readdress the problem when the frequency of repairs warrant it. It was noted by Terry Kenyon and Mary Wagner that water districts tend to wait until the frequency of problems exceed 4 to 5 per year before discussing a very costly replacement.

Lafayette rates are to increase by 9% in the year 2004. This rate increase will be passed on to the district and reflected in the budget.

The cost of the easement for the Water Storage Tank was discussed. Mark noted that finding an appraiser to assess the land value was both difficult and more costly than originally thought. He had one appraiser that would do the job for $2500 and Mike had a couple of names of appraisers that Mark could contact.

Bob Farmer made the motion that we authorize Mark Johns to engage an appraiser to assess the Deck property value for not more than $3000. Bob Champ seconded the motion, which passed unanimously.

Until this appraisal could be done it was decided to leave the easement purchase as originally estimated in the budget. Terry will contract with a surveyor to begin proceedings to describe the easement. This survey will also address whether we impact the Steinauer property.

Mary noted the changes to the budget, which will include an increase in cost for both meter reading and bookkeeping. It also was changed to reflect the new Lafayette water rates and billing costs.

The budget was printed with the appropriate changes and this will be the budget presented to the board at the next regular meeting (during the budget hearing) for consideration.

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

The above is respectfully submitted by the secretary…Bob Champ, November 4, 2003.