DRAFT

BRAZOS MUTUAL DOMESTIC WATER CONSUMERS ASSOCIATION, INC.

August 17, 2014 General Meeting Minutes

ACTION ITEMS ARE IN READ!!!!!

Meeting was brought to order at 8:15 a.m. at the VFD.

Directors Present: Tom Petersen

Deej Banister

Rubel Martinez

Jay Mason

Mike Doyle (Skype)

Karen Adam

Jim Walker (Skype)

Guest Present: Regina Mason

Before beginning the meeting, Tom Petersen, President, read his previously distributed email memo regarding BOD interactions, both oral and written, and the need to work collectively as a Board through discussions and communications. All BOD in attendance voiced their concerns and recommendations. All BOD in attendance were in compliance with Tom’s recommendations.

Minutes of July 20, 2014:

Karen Adam made a motion to accept the minutes as submitted. Rubel Martinez seconded the motion. The motion unanimously carried.

Treasurer’s Report:

Bills are current

Bank accounts:

Community Bank checking as of June 30, 2014: $ 19,442.06

Fidelity cash as of June 30, 2014: $ 55,771.77

JASBX as of June 30, 2014: $ 107,446.92

Total $ 163,218.69

Grand Total $ 182,660.75

Rubel Martinez spoke with a Fidelity representative last week to find other avenues of investments. He reviewed Thompson Bond Fund and the Fidelity Total Bond Fund. Rubel will obtain polios showing safe investment possibilities at approximately 3% to 5% and make a recommendation based on his findings at our next meeting. Currently, the two investments reviewed have a $70.00 penalty for less than a 90-day withdrawal.

Audit:

Rubel Martinez reported that Nick Loftis is finalizing the audit for 2010-2012. Rubel Martinez, Gretchen Denman, bookkeeper, and Deej Banister assisted the auditors in clarification of documents and expenditures. It has proven to be a time consuming task for all involved.

Metes and Bounds Survey:

Rubel Martinez presented the final invoice from Metes and Bounds for the preliminary survey of the Upper Tank property. The invoice breakdown follows:

4 hrs research @$40.00 per hour $ 160.00

8 hrs field work @ 180.00 an hour $1,440.00

4 hrs calculations @$60.00 $ 240.00

Total $1,840.00

Tax $ 150.65

Total $1,990.65

Minus down payment $1,200.00

Total due $ 790.65

Rubel will issue a check for said payment.

Membership Concerns/Application:

Rubel Martinez and Deej Banister presented the Aging Report as of August 13, 2014. Two (2) members on the report, Robinson and L. Moya will be three years in arrears in September, 2014. Deej expressed the need to remove Robinson and L. Moya from membership in compliance with the current R/Rs. After Board discussion, it was determined the liens should be placed on the properties prior to membership removal. Robinson owes ~$1700.00 and L. Moya owes ~ $2000.00. The Lien/Lockout Committee is to determine current status for the Robinson property—obtaining current property holder information and copies of the current water fee invoices.

Current BOD file records show that Robinson is not responsible for current fees. Robinson paid her debt in full through a collection agency prior to a FannyMae foreclosure on her property and the current water charges shown for said property were assessed after the property went through foreclosure. This property is currently maintained by an agency assigned by the Federal Government. Using “Robinson” for fees due after foreclosure is a BOD property ID tag.

L. Moya currently has a lien on her property for a balance due on a previous three-year debt. The amount shown on the report will be a second lien unless the current lien can be modified. Tax records for Rio Arriba County show L. Moya as the current owner of the property.

Tom Petersen will post a notice of impending actions at both cabins this next week—this is in compliance with our R/Rs.

Mike Doyle is to research procedures for lien filing—canceling, renewing, modifying and the validity of accruing interest on liens after they have been placed for a designated amount.

Upper Tank:

Irv Lindemuth’s report on the Upper Tank was presented:

Contact with Metes and Bounds was made regarding the preliminary survey. The surveyor did not look for the original stakes for our survey nor did the surveyor set down stakes at the surveyed corners. Stakes are put down only if the survey is completed—again, ours was a preliminary survey. Any completed survey of the plat must be filed at the County. The surveyor “shot” the locations of the access road and the chain link fence beginning a reference point. The location of the tank was not shot because the gate was locked. In review of the preliminary survey, the circles with four-digit numbers are reference points and the surveyor has the GPS locations of these points. Any stakes in the ground are probably from previous attempts to locate corners. The surveyor thought that the stake in the eastern corner is probably close to the actual 1671 point.

The work on installing a meter on the gallery line has been completed. Levi is letting water flow through this and then out the exit, not into the upper tank. Apparently, the “mystery pipe” is the only source of water for the gallery, approximately 2 gpm.

An official quote from NORA was received for running an electrical line across the Shinnick property. The amount of $11,449.51 with a minimum monthly service charge of $41.25 (use no electricity). This does not include clearing the right-of-way, for which an estimate would need to be obtained from Terrazas. Also, it does not include securing the required easements from Shinnick and perhaps others. The quote makes it clear that the consumer must obtain the required easements.

After discussion of Irv’s report, the Board felt that if we should consider the upper tank area for a future well, we need to have a quote from NORA for Falls Creek Road to use as a cost comparison. Clearing the right-of-way through Shinnick’s and other property might be more expensive than using the Falls Creek Road access. If the Board installs an electrical line on Falls Creek Road, the Association will own the line. If it is installed off Shinnick property and others, the Association will not have ownership of the line. A previous verbal electrical installation cost for Falls Creek Road, approximately $32,000, was submitted by Paul Walenciak and Ron Stafford at the July 20, 2013 Board Meeting.

Rubel Martinez, OP Committee, will check with Levi Sandoval, Water Operator, to see if fence repair and fallen tree cleanup has been completed for the upper tank area.

SCADA:

Discussion and follow-through on SCADA was tabled until the next meeting.

Fire Hydrant Flushing:

Rubel Martinez will check with Levi Sandoval for a finalized schedule for hydrant flushing—possibly September 20, and if Mike Valdez, VFD Chief, has received his requested copies of previous flushing reports.

Water Rights/WR Committee:

Mike Doyle contacted Jeff Albright asking for clarification as to why we need to file an extension at the same time we file an amendment. An excerpt of Jeff’s response follows:

“We have two years from the Stipulation, July 5, 2013, to submit the 40 year water plan.  It is really a revised 40 year plan.  Our discussions with the OSE do not give us another 40 years; it merely starts from the last 40-year plan.  Do we HAVE to file on November 15, 2014?  No. We do have to have it approved by July 5, 2015.   Part of the extension of time justification that we will file on November 15, 2014 envisions that we would have the conservation plan as part of the 40 year plan done at the same time so as not to drag it out. Given the nature of the conservation plan (open space, pond use, etc., which will require resolutions), there is a good chance that it will go beyond the November 15, 2014 date.  We will need the extension of time, regardless, and it was envisioned that it would be easier with the revised 40-year plan in place.”

Mike indicated that the Board needs to continue to work on “space” to justify 48AFW. The 40-year plan is an ongoing, living document and will need constant update. Extensions will need to be filed yearly on the 40-year plan.

As a reference, Mike Doyle discussed the previously distributed email outline concerning research, changes, and additions to the 40-year plan. The email outline follows:

1. The Brazos MDWCA has an inadequate water source to meet peak demands during later summer months. The system obtains water from three wells (none of which provides adequate water) and from a spring box, which provides water during the early summer, but frequently dries up. The system typically is run by using more water from the spring box in the early summer (to preserve the well water), then transitioning to the wells when flow from the spring slows down or dries up.

2. Investigating the drilling of additional wells to increase production. We currently are not producing sufficient water to meet the needs of current users. We are in the process of determining where a new well be placed, the size of the well, the production amount of the well, and funding for the well. As the numbers of active users increase, the placement of additional wells may be necessary. These additional wells will insure that the Brazos MDWCA can provide users with the planned .25 acre feet per annum agreed to in the July 5, 2013 Stipulation, Paragraph 14.

3. The water pumped by the wells used by the Brazos MDWCA contain high amounts of mineral deposits that decrease the amount of water that the wells can produce over time due to mineral build up. After mineral build up, water production can be significantly reduced requiring a new well or extensive cleaning. To try to limit this, the Brazos MDWCA is looking for land upon which to place the wells that will limit the amount of minerals that reduce well production rates.

4. Measurement tools are not currently in place for the infiltration gallery. We are currently using an unknown amount of water from the infiltration gallery. The Brazos MDWCA is taking steps to establish a measurement system for the infiltration gallery so that we can record the amount of water we are using in addition to the well water.

5. There is currently an open space pond used for fire suppression and member recreation. The current amount of water used for the open space pond has not been measured in the past. The Brazos MDWCA is beginning investigation in to the equipment necessary to begin measuring the amount of water necessary to maintain an appropriate water level it is anticipated that we will need at least 3-4 acre-feet per annum to supply the open space pond with sufficient water.

6. To find and stop leaks, determine water production, and establish water use, the Brazos MDWCA is researching the cost and effectiveness of a smart water monitoring system that would electronically send information via satellite to individuals responsible for system integrity and monitoring. This will be used in addition to conventional steps originally outlined for leak detection and repair. This smart water monitoring system would be put in place as a means of complying with Paragraph (B) (3)(b) of the Stipulation.

7. The as designed plans for the Brazos Water Co-Op (now the Brazos MDWCA) contained plans for a golf course that has not been built. Although the golf course has not been built as planned, the land still can be developed for its intended use or used as an open space park for members. The Brazos Water Co-Op is in the process of determining the feasibility of using the open space for a park.

8. The Brazos MDWCA has approximately 147 member and non-user members. Based on a planning factor of .25 acre-feet of water per household/property set forth in the Stipulation at Paragraph 14, the current member and non-member users are estimated to use 36.75 acre-feet of water (147 x .25 = 36.75). According to the Stipulation at Paragraph 14, there are an additional 150 remaining unsold/undeveloped lots that could become users at some time in the future, and the Brazos MDWCA would be obligated to provide the users with water. If all of the additional unsold/undeveloped lots were to become water users, we would need an additional 37.5 acre-feet of water (150 x .25 = 37.5). The total amount of acre-feet necessary if all current members continued and all unsold/undeveloped lots are developed; the Brazos MDWCA would need 74.25 acre-feet of water to serve all of our users. However, the Brazos MDWCA believes that it is highly unlikely that all unsold/undeveloped lots could become members or that 74.25 acre-feet would become necessary. Based on current information, it is likely that in the next 30 years approximately an additional 45 new members could be added requiring at least an additional 11.25 acre-feet of water in addition to the 36.75 acre-feet currently planned for existing members.

Mike indicated that we need to consult with someone with history in the water system/40-year plan. Rubel Martinez suggested contacting past Board members. Rubel felt John Hoffman would be a good contact. Deej Banister is to contact John to see if he would be interested in consulting with Mike and the Board for Water Rights and infrastructure.

Jeff Albright indicated that he might be available to visit the Brazos area in late October--if it is necessary.

Water Production/WP Committee:

Jim Walker presented the following as possible water production solutions. He referenced his recent email report to the Board:

1. Treat Gallery or Falls Creek Water to meet State standards—possibly a storage container 8ft. tall x 8 ft. wide x 12 ft. long at a cost of $165,000.00 or a water processing machine at a cost of $250,000.00. Processing machines vary in purification processes;

2. Enhance performance of existing wells by brushing screens and removing sand for higher production;

3. Expand storage tank capacity with installation of a new “peak usage” tank;

4. Buy an existing well to add new water to the system (Valdez);

5. Drill a new well—locate available land. Tom Petersen is to review properties that could be available for sale and send the list to Walker. We need to make sure that any properties we might select meet State requirements for well drilling.

All of these suggestions would need cost analysis and/or expert opinion about how system performance might be improved.

Jim requested that we hire a consultant to determine the type of production we can use to meet our water needs. There are many methods of water production available; however, not all would be applicable to our particular situations. An expert could help evaluate what is specific to the needs of the Brazos MDWCA.

Stop and Waste Committee:

Deej Banister reported that the Stop/Waste Committee has completed the identification of members not in compliance with stop/wastes. The duties of this committee have been transferred to the Lien/Lockout Committee. The two members not in compliance were mailed certified letters identifying the stop/waste issues and the lockout penalty that would be imposed if not met. Also, each member has been contacted by telephone. They will be locked out for noncompliance on 8/20/2014. Rubel Martinez is to ask Levi Sandoval to perform the lockouts.

Operating/OP Committee:

Rubel Martinez indicated that a two-drawer file cabinet for Levi Sandoval was purchased. Rubel and Deej placed it in Well House 1-1A.

Rubel has contacted Levi regarding the following action items:

Replace 4-inch valve, Oak Lane and Spruce Lane

Replace 4-inch valve, Aspen Lane and Spruce Lane

Repair meter cans at Robinson, Howton/Johnson, and Sanchez.

Check out meter can valves for complete closure at Dear Lane, #7 and #9.Levi will check with Randy Terrazas and repairs will be scheduled after the Labor Day holiday.

Levi Sandoval, Water Operator, reported to Rubel Martinez that Randy Terrazas is installing the meter at the upper tank area to allow reading of the amount of water flowing into the pond.

Serenity #8 water installations needs were identified by Levi Sandoval, Water Operator. Obtaining easement locations and permission to lay line across another owner’s property is the buyer’s responsibility.

PAR/Purge, Archive and Reconcile Committee:

PAR Committee work was carried over to September.

Insurance, Personal Liability:

Mike Doyle reviewed the BOD liability insurance policy. Mike will submit his findings to the Board and recommend changes—if any.

Other:

Board members are to continue to critique their ability to use SKYPE as a means of communication and contact for upcoming meetings. Again, this method is to be used only under extenuating circumstances. Jim Walker has emailed all Board members with hookup instructions.

Paul Walenciak submitted his resignation to the Board, effective July 30, 2014.

The meeting adjourned at 10:30 a.m.

The next meeting will be September 21, 2014, at the VFD.

Respectfully submitted,

Deej Banister

Secretary