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Directors may receive a maximum of $950 per year as compensation for service to the District, payable not in excess of $50 per meeting attended. Further, directors may not receive compensation from the District as employees of the District, except as provided above. Members of the Board currently receive $35 per meeting attended. State law prohibits directors from being interested in any contract made by them in their official capacity or by the Board unless, among other things: (i) the contract is awarded to the lowest responsible bidder based upon competitive bidding procedures; or (ii) the director has disclosed such interest and: (a) has not voted thereon; or (b) has voted thereon in accordance with certain statutory requirements. Further, directors may not be purchasers at any sale or vendors at any purchase made by them in their official capacity. Every contract made in violation of the foregoing is voidable at the instance of any party to the contract except the director interested therein. Additional state laws require directors to disclose to the Colorado Secretary of State and Board potential conflicts of interest or personal or private interests which are proposed or pending before the Board The present directors, their positions on the Board, principal occupations, lengths of services to the District, and terms of office are as follows: Harold Slavinsky George Chenoweth Don Brinks Robert Frye Cecil Tackett lIil81ltl_i ChairmanlPresident Contractor 3.5 1996 Secretaryrrreasurer Retired 8 1996 Vice President Realtor 4 1994 Vice President Forester 1 1996 Vice President Engineer 2 1994 2.1.4 DISTRICT mSTORY PAWSD is the successor to the Pagosa Water and Sanitation District which was organized in 1971 for the same purposes as the District. The District was created to provide for the restructuring of the bonded indebtedness of the Pagosa Water and Sanitation District, which has since been dissolved. 2-3 S9S\PAGOSA\S2, TXT 10/27/'J2 mm