The meeting was called to order by Mike Deck at 4:01 PM. Those in attendance were board members (Mark Johns, Rick Moeller, Nick Bennett and Bob Champ) and Water System Operators Frank Hauke and Dick Winters. Mary Wagner (bookkeeper) was also present. No members of the public were present.

The minutes of the 12 September 2005 meeting were discussed. Nick Bennett made the motion that we approve the minutes of the 12 September 2005 meeting. Rick Moeller seconded the motion, which passed unanimously.

The minutes of the 15 August 2005 meeting were discussed. Nick Bennett made the motion that we approve the minutes of the 15 August 2005 meeting. Rick Moeller seconded the motion, which passed unanimously.

Mary Wagner had e-mailed the financial packet to the board (Balance Sheet, P&L ytd comparison, P&L budget vs. actual, transaction report). Also e-mailed were usage comparisons and the storage tank project expenses vs. budget.

The revegetation escrow was discussed. Bob Champ will try and find the document specifying the escrow and get it to Mark Johns so that we can finalize the revegetation. Frank and Dick have done an excellent job revegetating the lot with the storage tank. It is felt that the watering can now be curtailed. Because of the increased water usage during September the utility cost was higher than usual ($500). Water purchase from Lafayette was $8924.50.

Because the storage tank costs exceeded the budgeted amount Mary will check with our auditors to find out if the budget must be amended. Mike noted that we appropriate all funds for expenses and felt that the budget would not have to be amended. Overall the storage tank cost was $242K and the budgeted expense was $216K. Mary will also find out if Dan (auditor) sent a copy of the audit to Collegiate Peaks Bank as Mike requested.

Mary also noted that 3 residences were late on bill payment.

• We put in 5.5 hrs monitoring and 4.0 hrs maintaining the system from September 6, 2005 thru October 5, 2005. Of this, 0.25 hrs monitoring and 1.5 hrs work were used on the sprinkler system.

• Took water sample for E-Coli lab test at pump house. Chlorine measured 0.83 mg/l.

• Read water meters on 10-1-2005.

• Replaced the door latch at the pump house. Who wants a key for it?

• The grass is coming in nicely.

• The additional watering has brought the weeds such as Mexican sand burrs, ragweed and etc.

• Did the lead & copper sampling and turned it into the lab on 9/26/05.

• The County is repairing the road in Bench Mark. They are adding a buried drain next to the curb to drain off the ground water.

Mark Johns and Bob Champ will get the new keys for the pumphouse.

The lead and copper tests on the residences tested passed.

Unfinished Business:

No unfinished business was discussed.

New Business:

Customer bill alleviation for leak:

A fax was received from a customer who had a leak, which allowed them to use a large amount of water (83K gallons). The board discussed the matter and noted that the average use for this residence during the summer months was 43K gallons.

Rick Moeller made the motion that we only charge our cost to the customer for the water over the average usage for the residence during the previous summer months. This means that the customer will be billed normally up to 43K gallons and will then pay our cost for the remaining 43K gallons. Nick Bennett seconded the motion, which passed unanimously.

Mike will tell the customer of our decision.

Possible Extension of line on Ponderosa:

Mike received an inquiry about extending the line beyond the hydrant on Ponderosa. It was thought that we would never extend this line and that the future customer would probably not be able to recoup their cost.

First Reading of 2006 Budget:

Mary Wagner (Budget Officer) went through the draft of the 2006 budget. Many of the line items were discussed and amended. Mary will e-mail the revised budget to the board for their perusal prior to our meeting in November, which will include the budget hearing. Mary noted that the Debt Service Fund 2006 Budget is defined by the assessed valuation and in order to pay our bond obligations the mill levy must be 23.95 mills, up over our 2005 budget (23.5 mills).

Bob Champ will publish the notice in the Daily Camera for the budget hearing at our regularly scheduled November meeting.

Long Term Capital Plan: re-evaluation and re-costing

The board was sensitive to the fact that the storage tank exceeded our budgeted amount and that Capital needed for our long-term plan may be vastly underestimated. Mark will contact Terry Kenyon (Engineering) and try to come up with more reasonable numbers for the projects in the plan. An emergency pump was discussed as a possible project in the long term Capital Plan. This pump could be used to increase our pump capacity, which may have to be increased at peak demand periods. This long-range plan will be used in deriving our rates for 2006. Mary will e-mail the Long-Range Plan to the board for their perusal and use in the rate setting process.

Discussion of rate-determination policies and strategies:

The water rates should be set in December to support the 2006 Budget. The rates for 2006 were discussed in detail. The best means the district has for raising funds for operating expenses and capital is via water rates. A base rate increase would be a reasonable way to increase our revenue because it is spread over the entire district, unlike charging more for water at the higher usage end. Nick will identify a couple of ways to increase revenue via rates and e-mail to the board. It was also noted that the Lafayette rate goes up 9% for next year and this will have to be passed on to our customers.

Operator’s Pay Raise: (discussed after executive session)

Mark Johns made the motion that we give our Operators a pay increase of 20%. Rick Moeller seconded the motion, which passed unanimously.

Nick Bennett moved that we go into executive session pursuant to section 24-6-402(4)(f) for purposes of discussing personnel matters. Rick Moeller seconded the motion, which passed unanimously.

Nick Bennett made the motion that we come out of executive session. Rick Moeller seconded the motion, which passed unanimously.

A motion was made to adjourn by Nick Bennett, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 6:48 PM.

The above is respectfully submitted by the secretary…Bob Champ, October 11, 2005.