BRAZOS MUTUAL DOMESTIC WATER CONSUMERS ASSOCIATION, INC.

June 29, 2014 Meeting Minutes

The meeting was brought to order at 8:17 a.m. at the Brazos Volunteer Fire Station

Directors Present: Jim Walker

Mike Valdez

Deej Banister

Rubel Martinez

Paul Walenciak

Tom Petersen

Irv Lindemuth

Mike Doyle (telephone)

Minutes of May 25, 2014:

Mike Valdez made a motion to accept the minutes as amended. Jim Walker seconded the motion. The motion unanimously carried.

Treasurer’s Report:

Bills are current

Bank accounts:

Community Bank checking as of May 31, 2014: $ 64,381.24

Fidelity cash as of May 31, 2014: $ 18,497.54

JASBX as of May 31, 2014: $ 107,183.06

Total $ 125,680.60

Grand Total $ 190,261.84

Rubel will transfer $40,000.00 from the Community Bank to JASBX this next week. Rubel will continue to search for a higher interest rate account with a low penalty rate for early withdrawals.

Audit Refund:

Mike Doyle contacted the Griego Professional Services regarding our pending refund of the initial deposit for audit services not rendered. Griego indicated that the check would be sent Monday or Friday of last week. As of to date, it has not been received. If we have not received the refund by the BMDWCA annual meeting, Mike will contact them again. The refund is $534.00.

Aging Report:

Deej Banister reported that to date almost all water fees have been paid. The month-end aging report will be presented at the next general meeting.

Water Rights, 40-Year Plan

Mike Doyle is to use his Committee to develop a 40-year water plan and meet the requirements of the Stipulation dated July 5, 2013. Irv Lindemuth made a motion that Mike is authorized to recruit board and non-board members and to expend up to five (5) hours of Jeff Albright’s time. The motion was seconded by Rubel Martinez. The motion unanimously carried. A discussion took place about including the water supplied to the pond as additional usage of requested water rights. Mike Doyle is to extend an invitation to Jeff Albright, WR lawyer, to visit the Brazos Lodge Estates to become familiar with the area.

Membership Concerns/Applications/Transfers:

Emily Hamlet, purchased cabin from Valdez, Track 2B of T 4, Unit 3, BLE. Transfer was approved for membership.

Angelo Marti and Bernadette Trujillo Marti have purchased Lot #8 on Serenity. Marti indicated to Paul Walenciak that he wanted to transfer his NU membership into a U membership and have water to his property. To date we have not received any information from the interested parties. In checking the sales record, it appears that Marti has exceeded the transfer time as stated in the R/Rs. Since the new owners may not be aware of our policy for transfer, Irv Lindemuth will correspond with said parties regarding our concerns and inform them of the steps that must be taken to have a transfer of the membership into their names. The BOD extended six (6) months from the date of this meeting for the Marti’s to submit an application.

Liability Insurance Coverage:

Action item to research current liability insurance coverage was tabled until the next meeting. This action is assigned to Mike Doyle. Deej Banister is to obtain liability policy, number, etc. for Doyle’s perusal.

Upper Tank Property:

Cleanup of the upper tank area is being completed by Levi Sandoval—fence repair and fallen trees are yet to be addressed. A “mystery pipe” (black pipe east and north of the tank area) was discovered. It originates out of a spring alongside the road and travels to the Gallery. Irv Lindemuth measured the output of water from the pipe and thinks that approximately 2 ½ gpm of water could flow into the Gallery. Levi Sandoval, Water Operator, indicated that this could be the only source of water for the Gallery—a meter is being installed at the Gallery to measure amount of incoming water. Also, this will record how much water is going into the tank from the Gallery if it is needed as an Association water source. The Association is not using the Gallery as a water supply at this time. Levi suggested that we remove the Gallery’s sand trap in order to make room for installing a meter and let any sand coming from the Gallery go directly into the tank. The sand collection in the tank can be removed. Irv Lindemuth is to report on status of upper tank sand trap and meters (input to tank and pond water.)

A preliminary survey of our property boundaries has been completed by Metes and Bounds.

Metes and Bounds contacted Deej Banister regarding finalization of the land-swap survey for the upper tank and their billing for final payment. Deej Banister indicated to Metes and Bounds that the decisions for the upper tank have not been finalized at this time. The BOD has made no decision as to a land swap. At this time the survey is to remain a preliminary survey. Metes and Bounds are to bill us for the balance due for a preliminary survey. We made a down payment of $1200 for said survey. Irv Lindemuth is checking with Metes and Bounds to confirm that the boundaries for the preliminary survey are from original pins.

Before any changes are made to our upper tank acreage, a meeting needs to take place with Tom Melk. The 1967 Agreement needs to be carefully reviewed as a critical document for the Association’s land and water ownership. Tom Melk was aware of our property when he purchased his land. Tom Petersen and Irv Lindemuth are attempting to set a meeting date with Tom Melk to discuss the preliminary survey, encroachment and cleanup.

Mike Doyle is to review the 1967 Agreement for discussion at the next general meeting.

Stop/Waste Committee:

Irv Lindemuth reported that the membership S/W compliance was completed by the S/W Committee. Fifteen properties were checked for functional S/Ws, only two members were found to be out of compliance. A certified, return receipt requested letter was sent to the following members notifying them of their non-compliance:

Silva/Garcia

201 Los Ranchitos, NW

Albuquerque, NM 87107

Joe and Angela Lovato

C/o Michele Lovato

2017 Griegos Rd., NW

Albuquerque, NM 87107

A question arose from the inspection—the Committee could not determine if the S/W was connected to old or new system. Further discussion concerning S/W compliance was tabled to a later meeting.

Projected Budget for 2014-2015:

The Annual meeting projected budget was discussed. Rubel Martinez indicated that the budget for this year is basically the same as last year except for an increase in salaries for Gretchen Denman, Bookkeeper, and Levi Sandoval, Water Operator. The Reserves remain the same, $30,000.00. Based on expected income, expenses, and reserves, we show a negative balance of $11,550.00. Discussion followed regarding the negative balance. Irv Lindemuth made a motion that Rubel present a balanced budget—the projected expenses and projected reserves should equal our projected income. There was no second. The motion failed for lack of a second. If there is a need to validate our projected budget amounts to the membership at the Annual meeting, Rubel will explain the methods used to calculate our yearly projected budget.

Property Insurance:

Mike Doyle reported that he spoke with our Insurance Agent, Jakki Swicegood, at HUB International regarding our property insurance coverage. All of our wells and equipment are fully covered.

SKYPE Procedures:

The BOD needs to become more familiar with SKYPE usage and procedures. Jim Walker is to continue to research the use of Skype at our meetings. It was noted that this form of communication for the BOD meetings is to be used only if a director cannot attend a meeting due to extenuating circumstances.

Other:

Levi Sandoval’s water operator contract was reviewed. A salary increase of $30.00 a month was approved. The monthly salary will be $430.00 a month starting in July.

Mike Valdez submitted his oral resignation from the Board as of this meeting. He has sold his cabin on Falls Creek and no longer owns property with a BMDWCA water membership.

Rubel Martinez picked up a flash drive of materials compiled by Clay Kilmer during his service on the board. Rubel is to peruse Kilmer’s flash drive and give the Board a synopsis of what it contains at the next meeting.

Rubel Martinez is to schedule hydrant flushing with Levi Sandoval and Mike Valdez.

Jim Walker is to contact Mike Valdez regarding his well property.

Next Meeting:

The next general meeting is scheduled for July 5, 2014, 8:00 a.m. to 10:00 a.m. at the VFD.

The annual meeting is set for July 5, 2014, 1:30 p.m. at the VFD.

The meeting officially adjourned at 12:10 p.m.

Respectfully submitted,

Deej Banister

Secretary