Purgatory Metropolitan District

PURGATORY METROPOLITAN DISTRICT

MINUTES OF BOARD OF DIRECTORS MEETING

December 14, 2016

A special meeting of the Purgatory Metropolitan District and the Purgatory Metropolitan La Plata-San Juan Subdistrict was held Wednesday, December 14, 2016, at Dalton Ranch. Directors Bob Oswald, Bill Rhoades, John Ogier andJeff Watsonwere present. DeeDee Carlsonwas excused. Also in attendance were District Manager, Eric Hassel, District Finance Officer, Frankie White andAttorney for the District, David Smith. Gary Derck and Jay Eagen attended from Durango Mountain Resort and Durango Mountain Land. Doug Simonson attended from the Boyce Lake North Project.

Minutes

Bob Oswald made a motion to approve the November 14, 2016 minutes as presented. Bill Rhoades seconded the motion. Motion passed.

Jeff Watson made a motion to approve the December 12, 2016 special meeting minutes. John Ogier seconded the motion. Motion passed.

Boyce Lake North Project

John Ogier has reviewed the plan with Doug Simonson since the December 12 meeting and is confident that the board understanding of the project is correct. John Ogier explained that the boards position is that payment for this infrastructure will not be from future service revenues and property taxes, the payment must come from tap fees.

Doug Simonson explained his investor’s financial proposal.

Nordic License

David Smith has drafted a lease agreement for the 16/17 season for the Nordic Center to lease the community center building. Jay Eagen went over the agreement and noted sections that DMR and the Nordic Center would like addressed, including a multi-year clause. Discussion regarding use by people other than Nordic members was discussed, including the liability posed by unauthorized use. Jeff Watson made a motion to approve a sign on the trail addressing unauthorized use, the language to be determined by David Smith, Eric Hassel, Gary Derck and Jay Eagen. Bob Oswald seconded the motion. Motion passed.

Jeff Watson made a motion to approve the lease with the Nordic Center subject to final language agreed on by all parties. Bob Oswald seconded the motion. Motion passed.

2017 Budget

Bob Oswald made a motion to approve the budget resolution, including the certification of tax levies and the 2017 budget appropriation. Bill Rhoades seconded the motion. Motion passed.

Jeff Watson made a motion to approve an increase in David Smith’s billing rate to $250.00 per hour starting January 1, 2017. Bill Rhoades seconded the motion. Motion passed.

Jeff Watson made a motion to increase the base rate for Clark, White & Associates services to $3,000 beginning January 1, 2017. Bob Oswald seconded the motion. Motion passed.

Jeff Watson made a motion to increase Eric Hassel’s pay to $88,000 per year, starting January 1, 2017. Bill Rhoades seconded the motion. Motion passed.

Jeff Watson made a motion to increase Mike Cameron to $36,750.00 per year (30 hour weeks) beginning January 1, 2017. Bill Rhoades seconded the motion. Motion passed.

Manager’s Report

Eric Hassel reported that all operations are running smooth at this time. The truck is in the shop for repairs and new snow tires.

There being no further business to come before the Board, the meeting was adjourned.

Next Meeting:January 18, 2017 (Dalton Ranch)