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SALT LAKE COUNTY SERVICE AREA #3 — SNOWBIRD
BOARD OF TRUSTEES MEETING MINUTES
December 8^th,2009
at the Service Area Office, Fire Station/Community Center

PRESENT: Annamarie Borgione, Chairman

Deborah Collinson, Vice Chairman/Trustee Kent Jensen, Trustee

Keith Hanson, Gen. Mgr Treasurer

Steve McIntosh, System Supervisor

Monica Lisenbee, Secretary/Clerk

Ms. Borgione called the meeting to order at 12:07 p.m. AMENDMENT OF THE 2009 SERVICE AREA BUDGET

The Board of Trustees reviewed the amended 2009 budget with Mr. Hanson. Included in the 2009 amended budget are 11 months of service with projected amounts for the month of December 2009. Mr. Hanson highlighted on various items within this amended budget. Referring to operating expenses/misc. labor, the 2009 budgeted amount was increased due to work on the Alta Bay City Mine. Budgeted expenses for repairs and maintenance dropped slightly as well as gas-heating, fuel-lubricants and employee medical insurance. Workers compensation increased as result of adding trustees to our policy during 2009. Seminars and meetings were increased because of additional classes required by our operators. Overall costs for operating expenses reflect a slight decrease. Page 2 the Infrastructure Replacement account will be $31,766 rather than the previous estimation of $28,029, which increased the capital budget by $700. Page 3 – Revenue and Income increased from $717,951 to $726,833. With no further questions or discussion of the 2009 amended budget, Ms. Borgione made a motion approving Resolution 2009-6, the amendment to the 2009 Salt Lake County Service Area #3 Enterprise Fund Cash Budget to meet actual 2009 revenues and expenditures. Mr. Jensen seconded the motion and it passed unanimously. The clerk will issue a copy of this amended budget along with a resolution 2009-6 to the Utah State Auditor's Office.

2010 BUDGET HEARING AND APPROVAL

Ms. Borgione called a public hearing at 12:22 p.m. to discuss the proposed 2010 Salt Lake County Service Area #3 Annual Budget. No public was in attendance for this meeting. Appropriate postings were issued to public, county and government entities. Board members have been reviewing items relating to the 2010 budget since October 2009. Mr. Hanson presented a brief review of the budget. Page 1- Total direct costs increased $9,000 from 2009. Operating expenses now reflect the recent board approved wages for 2010 of $185,308, which is an overall increase of $8,617. Mr. Hanson continued discussions in operating expenses and stated that total operating expenses are calculated to be $368,634. Page 2 of the 2010 proposed budget included review of the capital improvement projects, which include a new Service Area vehicle, water system improvements, sewer refurbishments, computer upgrades, and filter plant upgrades. Total capital improvements for 2010 are proposed at $116,000. Mr. Hanson stated that this would be the largest capital improvement project since the Peruvian Spring Improvement project in 2007. Page 3-Revenue and Income for 2010 is $782,939, which includes connection fees for 3 houses in Sugarplum 4, 5 9 and transfer of $52,000 from our savings accounts.

Members of the Board reviewed Resolution 2009-7, which is in compliance with Title 17A, Part 1 of the Utah Code. With no further discussion, Annamarie Borgione made a motion adopting the certification of the 2010 Salt Lake County Service Area #3-Enterprise Fund Cash Budget for 2010-Resolution 2009-7. Ms. Collinson seconded the motion and it passed unanimously. Ms. Borgione then closed the budget hearing at 12:35 p.m. The clerk will issue a copy of this budget along with a certification letter to the Utah State Auditor's Office.

MEETING MINUTES APPROVAL

Ms. Borgione, called the regular meeting to order at 12:36 p.m. Ms. Borgione moved to approve the work session meeting minutes from November 13⁶, 2009 as written. Ms. Collinson seconded the motion and it passed unanimously. Ms. Borgione then made a motion to approve the regular scheduled board meeting minutes from November 17^th, 2009 as written. Mr. Jensen seconded the motion and it passed unanimously.

DISCUSSION OF THE 2010 ANNUAL MEETING SCHEDULE and the ANNUAL WORK SESSION SCHEDULE

Mr. Hanson presented to the Board of Trustees, the 2010 Annual Meeting Schedule and the 2010 Annual Work Session Meeting Schedule for Salt Lake County Service Area #3. Members of the Board reviewed these schedules and found it to be acceptable. With no further discussion, Ms. Borgione made a motion approving the Annual Meeting Schedule and Annual Work Session Schedule for 2010 for Salt Lake County Service Area #3. Ms. Collinson seconded the motion and it was unanimously carried.

SYSTEMS OPERATIONS AND DEVELOPMENT

Wage Acknowledgment/Steve McIntosh-Promotion: Mr. Hanson and staff thanked the Board of Trustees for their approval of their 2010 wage increases. Mr. Hanson also recognized the promotion for Steve McIntosh from System Supervisor to Operations Manager. Congratulations Mr. McIntosh. Mr. Hanson stated it is sink or swim now for Steve.

Mid-Gad Water System: After flushing and disinfection of the Mid-Gad water system, we continue to monitor this system. To date, Mr. Hanson has not received unsatisfactory coliform analysis from this source.

Snowmaking Usage: Snowbird Ski & Summer Resort has contacted Mr. Hanson, requesting additional snowmaking water for the resort. While researching this issue, Mr. Hanson informed the board that during 2006, Snowbird received 3 additional allotments of snowmaking from Salt Lake City. Mr. Hanson noted that as of the present for 2009 we have consumed 60 million gallons of culinary water, while during 2006, Snowbird used 72 million gallons. At the present time, Snowbird has used 46 million gallons for snowmaking purposes. Therefore, in conclusion with this issue, Mr. Hanson has drafted a letter to Jeff Niermeyer-Director of Salt 1.ake City Utilities, requesting an additional 50 million gallons of snowmaking water for Snowbird Ski & Summer Resort. Board members have copies of this letter.

Treatment Plant-Update: Last night was the first run for the treatment plant in December and the 3¹⁴run since the 1^5tof November. Currently the draw down in the tunnel is at 238 feet, which

is 92 feet below from the fall. Snowmaking is pulling hard on the system and Mr. Hanson is optimistic that once they reduce their snowmaking flows the tunnel will recover.

Cocozelio Overages: The Superior Point unoccupied unit continues to accumulate overages. As stated at the Work Session meeting, Mr. Hanson has been accommodating in assisting Canyon Services with this issue and has provided them with options for resolution. Mr. Hanson is of course concerned with the unnecessary waste of culinary water.

Legal Concerns: Mr. Hanson mentioned that he may be deposed, relating to Patsy Marley between the Shrontz estate and Salt Lake City Corporation. This would be a result of contracts the Service Area has with the Town of Alta and Salt Lake City.

Peruvian Meter Vault/Hydro Electric: Mr. Hanson has conducted modifications to the Peruvian meter near the View Condominiums, which have proved to be satisfactory. Along with this Mr. Hanson stated he is conducting a flow study in the Wasatch Drain Tunnel, using a strap-on mag meter on the 18" pipe which supplies co-gen and snowmaking. This ties into the hydroelectric study and accumulating data ruling out any inconsistencies.

New Service Area Vehicle: Mr. Hanson will acquire 3 estimates for the new Service Area vehicle from dealers holding the government contract.

Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report ending November 30, 2009, and the Profit and Loss Budget vs. Actual ending November 30, 2009, as prepared by Salt Lake County Service Area #3.

Ms. Borgione moved that the bills listed on the November 18^th, 2009 through December 8^th,2009 payment registers, as presented by Mr. Hanson hereby be authorized and ratified to be paid by the manager. Mr. Jensen seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.

There being no further business to be discussed, a motion to adjourn was made, seconded and unanimously carried at 1:05 p.m.