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

The minutes of the 10 January 2005 meeting were discussed. It was noted that we had not heard back from Lafayette on their approval of the storage tank plans. We will inform them that we are starting the project and we will push to get something on record from them. Terry also noted that he would get the addendum to the bid documents to us. Frank noted that he and Dick had performed initial repairs to the vent at the master meter vault. Rick Moeller made the motion that we approve the minutes of the 10 January 2005 meeting. Nick Bennett seconded the motion, which passed unanimously.

Mary Wagner e-mailed the Profit and Loss YTD Comparison, Balance Sheet and Profit and Loss Budget vs. Actual to the board. Mary also had e-mailed the water usage comparisons for 2003 and ytd 2004 and also a 2005 Cash Flow Worksheet.

Because of late bill payments (Engineering, Lafayette Water, Xcel Energy) the December data was revised.

Lot #4 legal fees were discussed. These will be placed appropriately in the budget.

Mike noted that the State had not yet received our budget.

The water usage comparisons were discussed and it was noted that the delta between customer’s meters and the Lafayette main meter was 58K gallons in our favor (about .6%).

• We put in 4.75 hrs monitoring and 3.0 hrs maintaining the system from January 4, 2005 thru February 1, 2004.

• Took water sample for E-Coli lab test at the pump house. Chlorine measured 1.04 mg/l. Sample passed.

• Estimated meter readings on 1-31-2005 because of snow covering the ground.

• Brought the iron covers from Lafayette meter pit to scrap pile at pump house.

• Checked water in road at Bench Mark lot 12. Water flow is very small, however, the road is disintegrating. We think the water is from ground water.

• Worked with crew taking a soil sample at locating where the sample is with respect to the new tank on lot 4.

• H.O. Winters has received his plant operator’s license. It is good for 3 years.

Unfinished Business:

Water Tank and Land issues:

Documents are ready to be signed to finalize the land use issues. It is being handled by virtue of an amendment to the existing easement. The Plat should be executed and recorded in the next few days and then the easements will be recorded after that.

Landscaping issues were discussed and it was noted that the grade would be adjusted after construction is complete.

New Business:

Backflow Prevention (Lafayette):

Lafayette must have a backflow prevention plan which is mandated by the state. Homeowners with wells will be identified so that Lafayette may appropriately inspect to ensure that there is no connection between wells and our system.

Also noted was the increase in Lafayette tap fees effective 3/10/05. For a 5/8 inch meter the increase is on the order of $2500. Also noted was that a ¾ inch meter is available at an extra cost. This was discussed and we decided that there is no disadvantage to the district if someone would prefer the larger diameter meter. Nick Bennett made the motion that we allow residences to purchase a ¾ inch meter for $2500 and we will publish the cost structure on our web site. Mark Johns seconded the motion, which passed unanimously.

Mike will contact Jim Kuehler regarding the ability to purchase a larger meter.

Water Tank Construction bid analysis and award:

Terry reviewed the bids and noted that the bids were higher than what he had estimated. The reasons for this were the confines of the site and a history of problems with the County. The bids were discussed with Terry in detail. It was noted that there was nothing that we could do differently to alter the cost. Cost of steel and concrete has increased significantly in the last year. Terry submitted a qualification statement from Bassett and Associates, Inc. who submitted the low bid at $239K. The document was reviewed and overall the presentation was impressive. We could not find any reason to not award Bassett and Associates, Inc. the construction project.

Nick Bennett made the motion that we award the water tank storage construction project to Bassett and Associates, Inc. contingent on Terry Kenyon not finding a major problem with them in his subsequent research. Rick Moeller seconded the motion, which passed unanimously. The project should be awarded within a few days.

Mark Johns noted that he, along with Frank and Dick, would oversee the project and would contact Engineering when necessary. Change orders were discussed in some detail as this offers a possible exposure to the cost of the tank.

Engineering costs were also discussed.

Directors’ Comments:

Rick Moeller discussed the inclusion of the property at 275 Paragon Drive. This residence was in the original boundaries and is therefore allowed to petition for inclusion. Mike noted that we must schedule an Inclusion Hearing and publish it accordingly.

Nick Bennett made the motion that we schedule an Inclusion Hearing for 275 Paragon Drive for our next regular meeting on 14 March 2005. Mark Johns seconded the motion, which passed unanimously.

Rick will get the necessary paperwork and the $400 inclusion fee to Mike and Mary and the inclusion will be discussed at the next meeting.

Adjourn:

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

The above is respectfully submitted by the secretary…Bob Champ, February 15, 2005.