REGULAR MEETING – August 3, 2010

A regular meeting of the Board of Directors for El Rancho Florida Metropolitan District was held on August 3, 2010, at 10:00 AM at The Double Tree Hotel, Durango.  Board members present were:
Steve Swisher – President
Jack Wasserbach – Vice President
Tony Rocha – Secretary
David Shipps – Treasurer
Robin Boucher

Also present for the meeting were:  Katie Mattox – Bond counsel and Marsha Moreland – Administrator. The meeting was called to order at 10:00 AM.

A motion was made, moved and passed to approve the minutes of July 7, 2010 as submitted.

ACCOUNTS PAYABLE: (See attached listing)
A motion was made, moved and passed to approve the payables.

Vicki Mattox reviewed with the Board the upcoming Amendments 60, 61 and 101 and the impact they will have on the Special Districts.  The impacts are negative in every way and will cause great financial burdens on the financial aspects of Districts.  She went on to review options on Tax Exempt Bonds.

1.    PUBLIC SALE BONDS – For the full blown process the cost is approximate $20,000.
2.    PRIVATE PLACEMENT BONDS – These bonds are non-rated by the banks that are needing tax exempt income.  They could be local banks such as: 1st. National Bank of Durango, Alpine Bank, Pine River Bank, etc.
3.    SMALL FUND MANAGERS OFOR GENERAL OBLIGATION BONDS – They will want 5 years of financial history, assessed property tax basis, etc.

She said the District looks pretty good. She would need to get a Term Sheet and then shop around.  The average rate of interest is 5.5% on a Level Annual Debt Service.  She reviewed the attached rate schedules with those present.

Steve Swisher would like to see a shorter schedule than 20 years payout.  The amount to bond for the District consists of 2 options:

•    $500,000 – Pump House upgrades only.
•    $1.8 million – The whole system upgrades.

Katie stated that the Bond Question approved by the Electors does have a life span.  However, the District could do a second bond issue, if needed.  The time frame for obtaining the bonds is about 6 weeks from the onset.  There would be a Parameters Resolution and 1 or 2 Board members would sign the bond documents.  Fees involved by counsel are approximate.

•    SHERMAN  & HOWARD – $10,000
•    Katie’s fee – $5,000
•    Bank Counsel – $20,000 (They would need 5 yrs. audits and assessed valuation.)
•    There would be a limit of 3 years to spend the money.

David and Jack need  more accurate numbers on the system upgrade costs before determining the amount of Bonds to be issued.

A discussion followed on the scope of services for the pump house design and time frame.  The time frame would be the end of July 2011.  Start construction in April/May for excavation and the concrete vault.  June 2012 for ‘on-line’ date.

A motion was made, moved and passed to proceed with the design of the pump house, infiltration line and vault.
A motion was made, moved and passed to obtain another proposal on the pump house design.  There is to be a set deadline for the submittal so that the Board can proceed with the process.

USDA APPLICATION – Jack and David Clerici are to proceed with the application process.

The system was hit by lightening as suspected by Ray Smith.  A pump was burned up and there are costs involved:  electrical, pump, starter – approximately $4,700. Inspection repairs will be done by David and Jack this week.

– Spraying this week depending on the weather.  Signs will be posted.  It was agreed to spray at the tank as well.

There being no further discussion the meeting was adjourned at 12:30 PM.

Tony Rocha, Secretary