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), Dick Lyons (Legal) and Water System Operators Frank Hauke and Dick Winters. Nick Bennett, Dan Schommer (Auditor) and Mary Wagner (Bookkeeper) were also present. Mr. Ram Chander (prospective buyer of Lot#4), Susan Soklin (realtor selling Lot #4) and Terry Kenyon attended later in the meeting with respect to the Lot #4 issues. No members of the public were present.

Bob Farmer Appreciation:

A resolution was given to Bob Farmer recognizing his years of service (Board member from formation on- 12/99 to 4 May 2004). Bob’s efforts were crucial to the formation of the district and his contributions were key in the construction of the district’s infrastructure. Bob was the treasurer for the district and his diligence ensured the solvency of the district during his term of office. The district thanks Bob for his service and wishes him the best in his further endeavors.

Election 2004: Member swearing in and vacancy appointment:

Bob Champ (4 yr. Term) and Mark Johns (2-yr. term) have been reelected and were sworn in by Dick Lyons. The appropriate paper work was signed and Dick will file with the court.

A vacancy exists on the board and Nick Bennett has offered to fill the vacancy. Mark Johns made the motion nominating Nick Bennett to a four-year term. Rick Moeller seconded the motion, which passed unanimously.

Dick Lyons then swore in Nick as a board member. His term will run 2 years.

Mark Johns accepted the position of treasurer (vacated by Bob Farmer) and will work with Mary Wagner in that position. Nick Bennett made the motion that Mark Johns be named treasurer of EBCWD. Bob Champ seconded the motion and the motion passed unanimously.

Auditors Report for 2003:

Dan Schommer gave out the report to the Board and then reviewed the report. He noted that next year the format would change in accordance with Gasby 34. He reviewed the financial statements page to page. Note 7 on page 11 will be corrected to show our insurance carrier to be Hicks Insurance Agency. Overall, the financial statements present fairly the financial position of the district year ending 31 Dec. 2003. Dan left an engagement letter for next year and noted the price will go up slightly because of the new format (Gasby 34). Dick Lyons noted that he might be able to get a model management discussion for the new format from another water district.

Rick Moeller made the motion that we engage Watkins & Schommer, Inc. as our auditors for the year 2004. Bob Champ seconded the motion and the motion was passed unanimously.

New Business:

Well #3 pipeline alignment issues:

Mike’s Backhoe located the Well #3 pipeline and Mike had a map showing the easement and the location of the pipeline with respect to lots # 5 and 6. It was noted that a portion of the pipeline lies outside of the easement. A septic field has to be 25 feet from a non-sleeved water line and 10 feet from a sleeved water line. This line is not sleeved. An application review letter from the Land Use Dept. for building on these lots was sent to the district. Various options were discussed in some detail as to how we can solve the problem with Mr. Dugan (builder on lots #5 & 6). The well has not been used and the line has been disconnected from the pumphouse. Discussion ensued on the cost of sleeving and relocating the line, especially when the pump may never be used to provide water to the district. Lots# 4,7,8 and 9 involvement was also discussed.

Mark Johns made the motion that we abandon the Well #3 line (not the well) from the well to the pumphouse and we withhold objections on leach fields drawn on application reviews dated May 5, 2004 and send a letter to Boulder County Land Use stating we would not like to have the leach fields on lots 5 and 6 any closer than in the drawings and this would be in exchange for $2250 received from Mr. Dugan. Rick Moeller seconded the motion, which passed unanimously.

It was then noted that we would have to cut and cap the line at the well head to avoid any contamination entering the well. Mark Johns made the motion that we amend the preceding motion to show the increased actual cost of cutting and capping the line being added to the $2250. Rick Moeller seconded the motion, which passed unanimously.

Old Business:

Lot #4 easement and reconveyance:

The logistics of how to effect the acquisitions of the easements and reconveyance were discussed. It was noted that the roadblock is the County stating that lot #4 is a buildable lot. A two step process whereby the district quit claims the pumphouse lot and receives the easement in return and then negotiates the water storage tank easement was discussed in some detail especially with the risk involved to the district.

Mike handed out drafts with a map of the two easement agreements. The agreements were reviewed and some corrections were noted. Mike noted that the new pumphouse easement would require a new survey as we are requiring added area.

A temporary easement was discussed for the water storage tank for construction purposes during the construction period. The grade for the tank was also discussed as was the location of the access hatch.

Mike then noted that we have assembled a portfolio consisting of two easement drafts, 1 map from Terry Kenyon, a letter from Terry on tank integrity, a report on the septic system from the septic engineer and an algorithm on an offer of money.

Rick Moeller made the motion that we authorize Mike Deck to calculate the offer for the easements based on 50%of fee value for the square footage ratio of easement/lot. Mark Johns seconded the motion, which passed unanimously.

Mike will write a letter describing our offer for the easements.

Options were discussed on how to resolve the problems with respect to lot #4. The most expeditious resolution would be for the county land use to issue a letter noting that the lot is a buildable site. This we will pursue in earnest.

The next approach would be to enter into good faith negotiations whereby we would quit claim the pumphouse lot contingent upon obtaining the water storage easement as well as the pumphouse easement.

Rick Moeller made the motion that we authorize Mike Deck to engage a surveyor to describe the easements. Bob Champ seconded the motion, which passed unanimously.

We also would take over the escrow on the lot for revegetation demanded by the county.

The minutes of the 12 April 2004 minutes were discussed. Rick Moeller made the motion that we approve the minutes of the 12 April 2004 meeting. Mark Johns seconded the motion, which passed unanimously.

Carol Hampf has submitted the necessary monies to obtain a water tap. Mary also submitted a check record for the past month.

Frank e-mailed his report to the board. It is summarized below.

• We put in 3 hrs monitoring and 9.0 hrs maintaining the system from April 6 thru May 3, 2004.

• Took water sample for E-Coli lab test at Pump House. Chlorine measured .87 mg/l. Sample passed. When can we go back to getting the sample at a fire hydrant?

• Read meters on 5-2-2004.

• There have been several occurrences of low pressure at homes on top of the mesa. Pressure recovers quickly. All appears normal when the pump house is checked.

• Reconnected the event recorder to get more information on the above problem. The recorder is now monitoring booster pumps 1, 2, lead pressure relay and lag pressure relay.

• Checked running water in ditch at 7310 Panorama Drive. Water is from a buried pipe draining the flat roofed house. The pipe comes out of the hill just below the meter pit.

• Replaced the air compressor motor starter.

• Looked into complaint of high water usage at 1027 Paragon Drive. They have used 9,000 gallons since 5/2/04. There were no indications at the meter pit of a leak. The Linder's have re-landscaped the area. The grass was saturated with water and squished when walked on. Also there was standing water in the driveway.

• At two locations, re-landscaping has put the water meter so far below grade that it will have to be dug up to be worked on.

• With Farmer gone, what is the procedure on getting the monthly meter readings the Mary?

• Bottles for lead and cooper testing have not been ordered.

A motion was made to adjourn by Mark Johns, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 7 PM.

The above is respectfully submitted by the secretary…Bob Champ, May 11, 2004.