RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Monday, August 14, 2006 at 6:00 pm at the Alice School House, Silver Creek Road, Idaho Springs, CO.

ATTENDANCE: A regular meeting of the Board of Directors of the St. Mary’s Glacier Water and Sanitation District, Clear Creek County, CO, was called and held as shown above and in accordance with the applicable statutes of the State of Colorado, with the following directors present and acting:

Paul Johnson

John Pacetta

Kevin Zegan

C.J. Galbraith

Also in attendance: Fred Huff, District Counsel, and Carmen Barker as Bookkeeper and representative of AAA, District Manager, and members of the public.

CALL TO ORDER: John Pacetta called the meeting to order at 6:02 pm.

APPROVAL OF MINUTES: Minutes for May 2006 and June 2006 were unanimously approved as corrected.

FINANCIALS: Motion made and unanimously approved to pay outstanding invoices, with exact amount to be ratified at next meeting. Motion also made and unanimously approved to transfer $40,000 from the Peak Operating Account to the Peak Money Market Account.

MANAGER’S REPORT Motion made and unanimously approved to ratify purchase of 100 stainless steel curb boxes at approximate cost of $30 each, and AAA was authorized to order additional boxes as the need arises.

LEGAL REPORT Mr. Huff said he would furnish directors data at the next meeting on which was based the letter from the District to the county authorizing Coors use of District services. At Mr. Huff’s recommendation a motion was made and unanimously approved to make a contribution to help fund Clear Creek County’s master utility plan. The $5000 contribution from the District will provide us with an update to our facility plan in return, instead of us having to provide it at a much higher cost than the amount of the contribution. Again at Mr. Huff’s recommendation the District unanimously approved a motion to allocate funds in the 2007 budget for the Silver Lake drain repair and investigation of the spillway at the southeast end of Silver Lake.

There being no further issues to discuss, the meeting was adjourned at 6:50 pm.

Approved at District meeting on September 11, 2006.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District