EL RANCHO FLORIDA METROPOLITAN DISTRICT
REGULAR MEETING – June 1, 2010

A regular meeting of the Board of Directors for El Rancho Florida Metropolitan District was held on June 1, 2010, at 6:00 PM at 755 E. Second Avenue.  Board members present were:

Steve Swisher – President
Tony Rocha – Secretary
David Shipps – Treasurer
Jack Wasserbach

Also present for the meeting were: David Clerici -CLERICI CONSTRUCTION; Robin Boucher – Property Owner; Marsha Moreland – Administrator and Ray Smith – Water Operator. The meeting was called to order at 6:00 PM.  John Krispin was out of town for this meeting.

MINUTES: May minutes were not available for this meeting.

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

WATER SYSTEM REPORT:
Ray Smith, Operator, reported that the Microscopic Particulate Analysis was completed and came back OK and confirms the District is a ‘ground water’ system classification.  We have not yet received the System Inspection report from the State of Colorado yet.  Ray did read meters and has the first actual reading since winter estimating began.  The CCR (Consumer Confidence Report) will go out in mid-June with the billings.

PER (PRELIMINARY ENGINEERING STUDY) AND USDA APPLICATION:
David Clerici stated the PER is completed and ready to be reviewed by the BOD.  He still wants to file by June 15th.  Sugnet Moore will be meeting with Jack and David tomorrow to discuss the Environmental Study.  They did advise not to do any work in the drainage area in UNIT II until the Study is complete.  Colorado Resource Grants are available and should be applied for. The District should be ready to act on a loan from the USDA by December 31st. if approved.  The new
Proposition 101 could have a huge impact on the District in a very negative way if approved.  It would greatly restrict the ability to apply for money and would tax all the assets of the District.
It would negatively restrict the use of property taxes after December 31st along with loans and grants.

Bud Smith has completed his legal opinion letter for the PER as well. (See attached)

A motion was made, moved and passed authorizing David Clerici to get with Bud Smith on publication for applying for a USDA Loan.  He is also to complete the standard forms for the application.

David Clerici is to get with Sugnet Moore and include an amount for mitigation in the PER.  A committee was formed for the PER review of Jack, Tony and David.

ENTERPRISE FUND:

The Board approved the resolution to create and verify the organization of an Enterprise Fund and maintain and operate their own water facility according the laws of the State of Colorado.

JOHN KRISPIN’S RESIGNATION:

In his absence, he has submitted a letter of resignation from the Board of Directors effective June 3, 2010.  His business and young family make it difficult for him to be able to serve on the Board of Directors anymore.  The Board accepts John Krispin’s letter of resignation.

Robin Boucher, previous candidate for the Board of Directors, will serve the completion of John Krispin’s term (2 years) until the next regular election in 2012.  Robin executed his Oath of Office and the Board members welcomed his participation on the Board.

ACCOUNTS PAYABLE:
A motion was made, moved and passed to pay the bills listed on the attached itemization.

ROADS:
Additional gravel and mag are needed on the roads.  There were not enough fines in the gravel received from the pit and to do the job right there needs to be an additional 10 loads of gravel spread and mag applied.  Jack estimates the costs for the completion of the road work to come out to a total spent of $73, 000 to 75,000.  Marsha is to amend the 2010 Budget to reflect the costs to bring the roads to an acceptable standard.

2010 BUDGET AMENDMENT:
A motion was made, moved and passed to amend the 2010 budget to reflect the costs to repair and improve the roads in the amount of (not to exceed) $75,000.  Cost for legal expenses will be increased as well relative to implementing easement negotiations when the main lines are worked on.

GRADER REPAIRS:
The grader was taken in to HONNEN Equipment.  To repair the problems with the grader could cost approximately $13,000.  At this time the Board will spend no more than $5,000 to repair the steering mechanism, oil leak and general service.

There being no further business the meeting adjourned at 8:45 PM.

______________________________
Secretary