RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF

ST. MARY’S GLACIER WATER AND SANITATION DISTRICT

Held: Thursday, September 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

Kevin Zegan

C.J. Galbraith

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

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

APPROVAL OF MINUTES: Minutes for August 2006 were unanimously approved as submitted.

FINANCIALS: Motion made and unanimously approved to pay outstanding invoices in the amount of $12,712.81. The motion was also made and unanimously approved to transfer $20,000 from Peak Operating account to Peak Money Market account.

MANAGER’S REPORT At request of Jack Barker, the Board approved by motion and unanimous vote: PRV repairs for an estimate of 20-30 man hours and approx. $1000 in parts; jetting and TV’ing the section of Beaver to Lower Forest that has frozen 4 of last 5 years at approximate cost of $2500; allocating $700 for purchase of road base to be used throughout the next year, to be stored at WWTP; and installation of a level indicating device at Well #5, at a cost not to exceed $2000.

LEGAL REPORT The Board reviewed a letter draft from Fred Huff to F. Rollenhagen of the Clear Creek Planning Department, which clarified the District’s position that the ultimate build out of the Eclipse Snow Board Park would require construction of additional facilities in the District, the cost of which would be borne in whole or in part by the Snowboard Park. Mr. Huff was authorized to submit the letter.

OTHER MATTERS David Masini of Masini & Company PC presented the draft of the Audit for 2005. CJ Galbraith motioned and Paul seconded to accept the audit. Motion passed unanimously. No exceptions were noted in the audit.

There being no further issues to discuss, the meeting was adjourned at 6:58 pm.

Approved at District meeting on October 9, 2006.

C.J. Galbraith, Secretary

St. Mary’s Glacier Water and Sanitation District