BEFORE THE BOARD OF COUNTY COMMISSIONERS COUNTY OF BONNER, STATE OF IDAHO

| July 22, 2004 9:00 PM

NOTICE OF ELECTION

In the Matter of the Annexation of the City of Kootenai, Idaho into the Sandpoint Independent Highway District.

NOTICE IS HEREBY GIVEN that upon the Order of the Bonner County Board of Commissioners dated the 15th day of June, 2004, that an election will be held to determine whether or not the City of Kootenai, Idaho, will be annexed into the Sandpoint Independent Highway District.

The election will take place on Tuesday, the 3rd day of August, 2004. The hours of said election will be from 8:00 a.m. until 8:00p.m. The polling place will be at the Kootenai School in Kootenai, Idaho. The boundaries of the proposed annexation area shall be as set forth in Exhibit "A" a copy if which is available for public inspection at the Office of the Clerk of the District Court for Bonner County. The form of the Ballot shall have available the legal description of the proposed boundary, together with a map posted for public view at this polling place. If you have any questions concerning the boundaries of this proposed district, you should exit the voting booth and examine the written legal description before marking your ballot. The ballot shall ask:

SHALL THE CORPORATE CITY LIMITS OF THE CITY OF KOOTENAI BE ANNEXED INTO THE SANDPOINT INDEPENDENT HIGHWAY DISTRICT?

[ ] YES

[ ] NO

Absentee ballots will be available beginning the 20th day of July, 2004. Each request must be dated, in writing and signed by each person requesting an absentee ballot with an address for which to send the absentee ballot to the requestor of said ballot.

Address your request to Bonner County Clerk, Marie Scott, 215 South First Avenue, Sandpoint, Idaho 83864.

A copy of the Petition together with the official map showing the proposed boundaries of the district is on file in the Bonner County Clerk's Office and is open for public inspection during normal office hours, which are Monday through Friday from 9:00 a.m. until 5:00 p.m.

DATED this 7th day of July, 2004.

MARIE SCOTT

Bonner County Clerk

Legal 5348

July 22, 29, 2004

NOTICE OF CORRECTION