A Regular Meeting of the Purgatory Metropolitan District Was Held March 17, 2010 at The

PURGATORY METROPOLITAN DISTRICT

MINUTES OF BOARD OF DIRECTORS MEETING

A regular meeting of the Purgatory Metropolitan District and the Purgatory Metropolitan LaPlata, San Juan Sub-District was held July20, 2011 at the Dalton Ranch Clubhouse. Directors John Ogier, Jeff Watson, Dee Dee Carlson, Nancy Furry andDoug Simonson, were in attendance. Also in attendance were John Reiter, Frankie White, Rick Johnson and David Smith. Duke Eggleston represented Durango Mountain Resort.

Minutes

Doug Simonson made a motion to approve the minutes of the last meeting. John Ogier seconded the motion. Motion passed.

Public Input

Duke Eggleston will draft a memo of agreement between the District and DMMA regarding the tennis court land and improvements at Engineer Village.

John Reiter presented the Community Park agreement for the board to review. Nancy Furry made a motion to approve/accept the park agreement for signature. Doug Simonson seconded the motion. Motion passed.

John Reiter explained to the board that he now has the final plans for the building and landscaping for the bus pullout. The cost is estimated at $59,000, and John has asked several companies to submit bids for the project. John Reiter and Rick Johnson believe that the final total cost for the entire project, including what was completed in 2010, should come in around the original estimate of $125,000.

Finance Report

Frankie White presented bank balances and bills that were paid since the last meeting.

Manager’s Report

John Reiter reported that he had attended the homeowner’s weekend, and fielded several questions about the cost of owning property on the mountain. Overall, John felt that the owners had positive reactions to the way the district is operating, but owners do continue to share their concerns about costs of ownership, including district mill levies.

John Reiter updated the board on the Hermosa road paving, at this time the project is waiting on approvals from the forest service. No work is going to be done until those approvals are received. This work will not change the developer’s obligation.

John Reiter and Rick Johnson explained the situation with the fire hydrant located by John Reiter’s office. Currently when it is used it causes a severe water hammer issue in several homes. Rick explained the problem and some options for a solution. Rick and John feel that the best solution is to install a pop off valve to take the pressure off, and stop the water hammer. Nancy Furry made a motion to have John and Rick continue researching the best option, and get the situation resolved. Doug Simonson seconded the motion. Motion passed.

The meeting adjourned.

Next meeting: August10, 2011 Dalton Ranch