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

The minutes of the 13 September 2004 meeting were discussed. A couple of spelling errors on names were noted and will be corrected. Rick Moeller made the motion that we approve the minutes of the 9 August 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. Mark Johns noted that the CDs have been purchased from Heritage Bank with an annual percentage rate of 2.65%. Mary went through the P&L budget vs. actual and it was noted that ytd expenses were running at about 40%, lower than planned. Overall, we are operating well within our budget.

The water usage comparisons were discussed. It was noted that we have 98 users, 20 standbys and 125 lots included in the district. Average usage per household in 2003 was about 9000 gallons per month. Usage to date in 2004 is about 9700 gallons per month. These numbers will be used ultimately to arrive at a proper revenue from water revenue and standby fees in the new budget.

• We put in 3.0 hrs monitoring and 3.5 hrs maintaining the system from September 4 through October 4, 2004.

• Took water sample for E-Coli lab test from fire hydrant at 7224 Spring Court. We also flushed and maintained the fire hydrant per procedure. Chlorine measured 0.62 mg/l. Sample passed.

• Read meters on 9-27-2004.

• Replaced broken meter pit covers at 7780 Spring Drive & 7815 Spring Drive.

• We did yearly maintenance at pump house of greasing booster pumps and checking oil in generator.

• Checked Lafayette meter pit. There is about 2 inches of water in the pit.

• Lafayette was flushing the fire hydrant at the stop sign. I told them it is a hydrant in our district and we flushed them periodically.

Frank noted that during our flushing we use very little water.

Unfinished Business:

Legal (Lot 4 Land Use Issues):

Water Tank Land Issues—

Mike reviewed the current situation on Lot 4. We have a signed agreement with the owners of lot#4 saying they will sign the forms for the location and extent review and the exemption plat. However, they still have concerns regarding the setbacks from the outlot with the pumphouse which is 10 feet. This new setback is now about 200 sq. ft. The signed application must be with the commissioners by Wednesday (13 October) in order to be on the agenda for the October 20^th Planning Commission Meeting. The exemption plat review would be considered at a later meeting.

Alternate plans for addressing this situation were posed and discussed. At this juncture it was decided to continue on the existing approach. This involves getting the location and extent review, the exemption plat and a building lot determination from the county. Once this has occurred we can begin the construction of the storage tank.

New Business:

Budget 2005:

1. Presentation of 2005 Budget by Budget Officer

Nick Bennett (Budget Officer) and Mary Wagner (Bookkeeper) had e-mailed the draft of the 2005 budget. The draft budget was reviewed and discussed. It was noted that water rates are our major source of revenue. Our major expenses are driven by our long-term capital plan, which consists of the improvements, which are noted, in our IGA with Lafayette. Possible improvements to the pumphouse were discussed as part of our capital plan.

Mary reviewed the draft budget by line item and some changes were noted. Mary will incorporate the changes in the draft budget to be discussed at the budget hearing at the next regular meeting.

Nick Bennett made the motion that we set the Budget Hearing for our November 8, 2004 regular meeting. Mark Johns seconded the motion, which passed unanimously.

The budget message was also reviewed. The budget notice will be published by the Daily Camera and will be posted on the pumpstation.

2. Rates and Fees – follow up to September 13

Our rates and fees were discussed in some detail. Water rates for other districts were reviewed and it was noted that the rates and fees are, realistically, our only means of increasing revenue. It was decided that we should review our capital improvements and try and get more accurate estimates for these costs from Terry Kenyon. Mark Johns will interface with Terry to obtain estimates for Paragon Loop, the Empire to Spring Loop and the Panorama to Spring Loop. Because Lafayette is to share the expenses for the Paragon Loop (the next scheduled capital improvement), Mike will contact Doug Short (Lafayette) to verify that they still wish to accomplish this task.

It was decided that once we have identified a realistic calendar and cost for our capital expenses we can discuss what changes (if necessary) to our rates and fees need to be made in order to fund these future improvements.

Back-up Operator:

Mark Johns reported that he had contacted Darrell Sartin (Baseline Water District) about sharing operators for possible emergency situations. They were amenable to this sharing. It was decided that an agreement between boards might be the best way to effect this. It was decided to table this until our January meeting and then contact Dick Lyons to see if he has such a draft agreement.

A motion was made to adjourn by Mark Johns, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 6:53 PM.

The above is respectfully submitted by the secretary…Bob Champ, October 12, 2004.