EL RANCHO FLORIDA METROPOLITAN DISTRICT

REGULAR MEETING – July 2, 2008

A regular meeting of the Board of Directors was held on July 2, 2008, 6:00 PM at 755 East Second Avenue, Suite 2B. Board members present were:

Steve Swisher – President

John Krispin – Vice President

Tony Rocha – Secretary

Jack Wasserbach

Rex Emenegger – VP of HOA, Ken Charles – DOLA (Dept. of Local Affairs), Ray Smith – Water Operator and Marsha Moreland – Administrator was also available for this meeting. The meeting was called to order at 6:05 PM.

MINUTES:

A motion was made, moved and passed to approve the minutes of June 11, 2008 as presented.

ACCOUNTS PAYABLE:

A motion was made, moved and passed to approve the payables submitted.

REQUEST FOR PROPOSALS:

To date the only engineering firm that has responded is Brent Adams with SOUDER MILLER. He stated that they need 120 days to give an adequate proposal with technical information for the tank relative to the Preliminary Engineering Report. The grant application must be in by July 31st. Decision on the grant by DOLA will be in December.

There followed a lengthy discussion on the different options for funding the water tank. Those options are as follows:

1. DOLA Grant for $200,000

2. District paying for the project in full if no grant money is received. A special assessment would be attached

To each lot for any shortage beyond $336.258, which is available in reserves.

3. Federal Grant money.

4. Guaranteed Revenue Bond with local bank.

After a brief discussion it was agreed that Jack Wasserbach should go ahead with preparing the CLASS II Permit application with the help of Brett DiSpain. Target for completion date is June 30, 2009.

The following tasks are to be completed by the following individuals:

1. Ken Charles will speak with Brent Adams of SOUDER MILLER on interest in the project if they don’t have 120 days to do proposal.

2. Steve Swisher will call Jack Kirtland with DOLA and get more particulars.

3. Jack will call Brett DiSpain for help with the CLASS II Permit Application.

4. Cynthia Stengal Cheatham will do the Grant Application with Tony’s help and Marsha’s.

5. Grant Application will be completed by August 1, 2008

6. Tony will do a narrative for presenting to the residents for the July 17th public informational meeting on the need for improvements to the water system and what happened with the recent water outage and why it happened.

The Board will have a work session on Thursday, July 10, 2008 at the office.

ACCOUNTS PAYABLE:

A motion was made, moved and passed to approve the payables submitted.

DESIGNATED ELECTION OFFICIAL:

A motion was made, moved and passed appointing Marsha Moreland as the designated election official for the November 4, 2008 Special Election.

AUDIT EXEMPTION FOR 2007:

A letter was received from the State Auditor accepting the District’s Application for Audit Exemption for 2007.

KIM CRAWFORD OF SHERMAN & HOWARD :

Rex and Jack reviewed with those present the e-mail from Kim Crawford of SHERMAN & HOWARD, a legal firm working out of Denver. She is suggesting that a Ballot Issue be presented before the lot owners in the Subdivision for approval of a 1-2 million debt to improve the water system

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over the next 5-7 years if need be. A mill levy will only be assessed on the actual money spent out of the issue of debt. Her firm would be available to help with the election ballot issue particulars making sure that all the requirements are met and that the ballot is worded appropriately. If the Board decides not to have an election, or if the issue does not pass, then there will be no fees charged by HOWARD & SHERMAN.

A letter must be sent to Linda Daley, County Clerk, no later than July 25th if the District wants to participate in a coordinated election with the county for a Ballot Issue. Marsha will send out the letter and the Board can withdraw from the election by September 5th. An Intergovernmental Agreement with the County must be completed for a coordinated election no later than August 26, 2008.

A motion was made, moved and passed to enter into an Intergovernmental Agreement with La Plata County for a coordinated election with a Ballot Issue Question regarding debt to improve the Water System for El Rancho Florida Metropolitan District.

The actual amount of the ballot question has not yet been decided. The Board would like more input from voters prior to making that decision. Public information meetings will be held by the HOA on: July 17th, August 14th, September 5th and October 30th at 6:00 pm at the Faith Community Church of the Nazarene. Notices will be mailed out prior to all meetings to the residents.

ROADS:

The street signs on Valley Trail and C.R. 510 and also on Ridge Place have been knocked down by the County snow plow and need to be put back straight again. John Krispin and Donna will see that it is taken care of.

BACK UP OPERATOR:

If Rich Meier is interested in being a back up driver on the grader he will be hired as a contract labor on an as needed basis. Rate is $18/hr.

There being no further business the meeting was adjourned at 8:35 PM.

___________________________________

Secretary