The meeting was called to order by Rick Moeller at 4:05 PM. Those in attendance were board members (Mark Johns, Nick Bennett and Bob Champ) and Water System Operator Dick Winters. Mary Wagner (Bookkeeper) was also present. Mike Deck was absent (excused). No members of the public were present.

The minutes of the 8 November 2004 meeting were discussed. Mark Johns noted that we should clarify that the building lot determination letter should be issued by the county and not the district. Nick Bennett made the motion that we approve the minutes of the 8 November 2004 meeting, as amended. Mark Johns seconded the motion, which passed unanimously.

Mary Wagner e-mailed the Profit and Loss YTD Comparison, Profit and Loss by Fund, Balance Sheet, Profit and Loss Budget vs. Actual and the checking transaction report to the board. Mary also had e-mailed the water usage comparisons for 2003 and ytd 2004. Mary noted that we paid the bonds at the end of November. It was also noted that $60000 was transferred to Colotrust from checking. $1730 in accounts receivable was for an installation of a water meter. $480 has been remitted and Mary wondered if anyone had a reason for the discrepancy. Mary will contact Mike to see if there is some reason for the discrepancy. A typing error was noted on the water usage table under the water billing for Feb. 2004.

• We put in 1.75 hrs monitoring and 6.5 hrs maintaining the system from November6, 2004 thru December 6, 2004.

• Took water sample for E-Coli lab test at the pump house. Chlorine measured 0.93 mg/l. Sample passed.

• Estimated meter readings be cause of snow on 12-1-2004.

• Marked water main at 712 Paragon Drive.

• Checked and had contractor repair leak at 7435 Spring Drive.

Dick will be attending school to obtain a new operator’s license on Jan. 10-14 2005.

Unfinished Business:

Bid Documents:

Mark noted that the bid documents were not received from Terry Kenyon. Therefore, these have not been reviewed by either Mark or Dick Lyons (Legal). Mark will contact Terry to obtain the status of these documents. Dick should also be in contact with the attorney for the owners of Lot 4 to finalize easements on the new outlots.

2005 Rate Setting:

Nick Bennett presented a water rate determination packet, which was based on the 2005 Budget. Nick reviewed the packet in detail and the board subsequently discussed it.

Mike had e-mailed to the board the change in rates for 2005 for the cost of Lafayette water. Their rates are going up about 9% and this increase will be passed on to our users.

The following set of assumptions were used to determine the water rates:

1. It is desirable to implement a water rate structure that establishes the following principals:

1. The base rate should be kept as consistent year-over-year and as low as possible with water consumption at higher levels having a higher rate, if necessary.
2. That a progressive rate structure will be slowly phased in over a number of years to meet future revenue needs and promote conservation. The 2005 rate implements this by increasing the marginal rate by $1.00 to $7.31/1000 gallons, beginning at 80,000 gallons per month of consumption.
3. Support any rate changes initiated by the City of Lafayette, whose 9% increase is responsible for most of the rate increase.

1. That the current reserve funds are at a higher level than is necessary for the size of our District and the age of the infrastructure. The funds will be slowly reduced, in part by providing additional funds to stabilize the base rate.

Nick Bennett made the motion that we approve the planning assumptions for the water rate determination, thereby, leaving rates unchanged for 2005 (base rates for connected users and the standby fee) except for passing on the 9% Lafayette increase (for usage over 5000 gallons) and increasing the marginal rate by $1.00 to $7.31/1000 gallons, beginning at 80,000 gallons per month of consumption. Mark Johns seconded the motion, which passed unanimously.

Nick Bennett will draft a letter summarizing the water rates for 2005 for enclosure in the December bill to be mailed in January. This draft will be e-mailed to the board for review.

An area to be addressed in the future with regard to the budget is an assessment to the reserve required for the district.

New Business:

No new business was discussed.

Directors’ Comments:

A possible gift in appreciation of the operator’s services over the past year was discussed.

Mark Johns made the motion that Rick Moeller looks into obtaining a gift not to exceed $50 or a statutory limited amount for each of the operators. Nick Bennett seconded the motion, which passed unanimously.

A motion was made to adjourn by Nick Bennett, seconded by Mark Johns and unanimously approved. The meeting was adjourned at 6:07 PM.

The above is respectfully submitted by the secretary…Bob Champ, December 14, 2004.