RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, December 11, 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

C.J. Galbraith

Also in attendance: Fred Huff, District Counsel, Jack Barker of AAA, District Manager, and Carmen Barker, bookkeeper for the District.

CALL TO ORDER: John Pacetta called the meeting to order at 6:00 pm.

APPROVAL OF MINUTES: Board approved unanimously the Minutes for October’s meeting, with no additions or corrections.

ADMINISTRATIVE MATTERS The District approved unanimously a motion to accept Keven Zegan’s resignation, due to conflicting business schedules.

FINANCIALS: Board ratified payment of November bills in the amount of $39,920.14. Board also by unanimous vote authorized payment of December bills in the amount of $20,609.36. The bookkeeper was authorized to lien all delinquent accounts with balances equal to or greater than $300, if payment plans are not established. Board also authorized a 60 day grace period for payment of the now quarterly bills.

MANAGER’S REPORT Well levels remain good. Rebuilding of PRV’s is almost complete, coming in under budget. Manager reported that at 8 Stuart Court, the heat had been turned off and the home was not winterized, resulting in a significant wastage of water. A lien will be filed against the homeowner of record. Owners of 137 Pine Way will be billed back for service line repair completed by the District. At Manager’s request, the Board unanimously approved purchase of a variable frequency drive unit to be added to the pump at Well #5, at an approximate cost of $8295.

PUBLIC HEARING The Public Hearing on the 2007 Budget was convened. No members of the public were present. Meeting was closed and regular meeting reconvened.

OTHER MATTERS CJ Galbraith moved and Paul Johnson seconded approval of the 2007 Budget as submitted to the Directors. Motion passed unanimously. CJ Galbraith moved and Paul Johnson seconded certification of the mill levy, with an operating levy of 3,647 mills and a debt service levy of 13 mills for a total of 16,647 mills, which will generate approximately $84,892 in property taxes. Motion passed unanimously.

There being no further issues to discuss, the meeting was adjourned at 6:30 pm.

Approved at District meeting on February 12, 2007.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District