The meeting was called to order by Mike Deck at 4:02 PM. Those in attendance were board members (Mark Johns, Rick Moeller, Bob Farmer and Bob Champ), Dick Lyons (Legal), Mary Wagner (Bookkeeper), Terry Kenyon (Engineering) and Water System Operators Frank Hauke and Dick Winters. No members of the public were present.

The minutes of the 16 February 2004 minutes were discussed. A couple of spelling corrections on names were noted. Mark Johns made the motion that we approve the minutes of the February 16, 2004 meeting. Bob Farmer seconded the motion, which passed unanimously.

The minutes of the 23 February 2004 Special Meeting were discussed. Mark Johns made the motion that we approve the minutes of the February 23, 2004 meeting. Bob Farmer 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 e-mailed to the board and discussed. Bob Farmer noted that because of the legal issues involved with the Water storage tank that our legal budget allocation is exposed. This was discussed and it was noted that we could pay legal fees incurred with respect to the water storage tank out of the budgeted amount for this item. Dick Lyons will account for real estate items in his billing procedure. Maintenance Labor was discussed as nothing was allocated in the budget for this line item. Mary noted that this was present for her accounting purposes to keep track of the labor amount of maintenance. The error in the last bill was also discussed. Corrected bills were sent out because inadvertently customers were charged for two months of water usage.

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

• We put in 7.5 hrs monitoring and 0.0 hrs maintaining the system from February 14 thru March 1, 2004.

• Took water sample for E-Coli lab test at Pump House. Chlorine measured 0.99 mg/l. Sample passed.

• Read meters on 2-27-2004.

• The difference between water-in and water-out for the last 5 months was 0.0, 0.6, 0.3, 0.3, and 0.5 GPM.

• We updated the operation procedures and gave a copy of them to the secretary.

• Remote reading of the water meter at 7456 Empire Drive is not working properly. We will be replacing the meter when weather permits.

Frank also discussed what should be done with the electric motor stored at the pumphouse. We will look into removing this during the upcoming construction. Also, some conduit going into the pumphouse should be sealed (Frank and Dick will do) and Dick will look into what can be done with the chlorine tanks.

Bob Farmer gave the status on investing $100,000 in a CD. It was decided that Rick Moeller would look into obtaining a CD at Heritage Bank. A Banking Resolution should be ready to adopt at the next meeting. After constituting the new board at the May meeting a new Banking Resolution will be adopted allowing Mary Wagner (and the new treasurer) to have check signing privileges.

Water Storage:

Mike reviewed the status of the Water Storage project including the status of the easement acquisition. A meeting was held on the lot on Friday involving Mike, Mark and the prospective buyers of the lot and their realtor and Arnold Turner of Vectra Bank. Mike was in the process of drafting a proposal, which would delineate permitted and prohibited uses of the easement. The easement was discussed in some detail and the area in question was outlined on a map of the area. The easement for the tank was about 2905 sq.ft. When the extended easement for the pipes running to the pumphouse was added to the preceding the total easement came to 3227 sq.ft. Mike will include these figures for the sample calculation in the proposal. Frank and Dick will try and locate the locations of the existing tanks so Terry may include in drawing up the building envelope for the lot and what the new easement for the pumphouse will be. The soil test should be accomplished later in the week and will give leach field areas for the possibilities of 4, 5 and 6 bedroom residences. The proposal was reviewed as to the wording and that the easement calculation would be given as an example because we do not know the actual sales price of the lot.

Rick Moeller made the motion that we allow Mike Deck to finalize and send the proposal as amended and reviewed by Dick Lyons. Mark Johns seconded the motion, which passed unanimously.

Some discussion ensued on whether we could get something from the County, which would state that the lot is a viable building site. We will send the proposal prior to the soils test and then include the final drawing with the soil test.

Dick went through the necessary form needed to cancel the election. Rick Moeller will fill out the form and send to the appropriate governmental agencies. Mark Johns will fill a 2-year term and Bob Champ will fill a 4-year term. One vacancy exists which we will try to fill by appointment.

Jim Keeler inquired about a water tap on lot #61. Mike informed him that under the current conditions a water tap would be available, but a drought could change this.

Doug Short (Lafayette) inquired about the Storage Tank. He was informed of the easement issues and the progress to date.

Mike noted that Lafayette was holding a Xeriscape Seminar which members of the district would be allowed to attend.

A motion was made to adjourn by Mark Johns, seconded by Bob Farmer and unanimously approved. The meeting was adjourned at 5:58 PM.

The above is respectfully submitted by the secretary…Bob Champ, March 9, 2004.