Brazos Mutual Domestic Water Consumers Association, Inc.

Annual Membership Meeting

May 23, 2009

Call to Order: 1:15 p.m. by President Tom Petersen

Proof of Quorum: 18 memberships represented:

Banister

Cataline

Chafins

Cunningham

Harper

Harris

Hays

Jones

Kilmer

Lawrence

Martinez

Petersen

Sewell

Skousen

Sorenson

Stafford

Valdez

Wilkinson

Quorum was met, 18 present

Proof of Notice:

Notification of meeting was mailed to all members on May 1, 2009 and posted on the website.

Governing Documents:

Notation of the BMDWCA governing documents was made:

Articles of Incorporation, October 12, 1999

By Laws, May 25, 2008

Rules and Regulations, April 6, 2008

Ballot counters were appointed:

Ruth Skousen and Hal Sorensen

Minutes of the annual meeting of May 25, 2008 were read. Rex Sewell made a motion to accept the minutes as read. Mike Valdez seconded. The motion unanimously carried.

Treasurer’s Report:

Rubel Martinez reported on year-end budget report, March 31, 2009. Finances are stable, taxes and fees are current and we have sufficient cash to meet anticipated needs.

Our liquid assets are: Community Bank checking account balance is approximately $54,000.00 and Smith Barney is approximately $64,000.00. Rubel indicated that due to the current national economic status, the interest accrued on these accounts last year was very low.

Our liabilities are:

Annual loan payments—$22,700.00 (3 loans)

Monthly operational costs—approximately $2000.00

The State of New Mexico is requiring all rural water associations to obtain annual audits. This is a part of the Sanitary Projects Act. CPA’s for such an audit will be provided by the State. The audit would cost associations from $4,500.00-$10,000. Rubel indicated that he has corresponded with officials and requested a waiver for this coming year since we had not planned for such in our budget. Other coops within the State are also concerned for the same reasons—timing and money. They too have requested extensions. Hopefully, the State will lengthen the time span from once a year to every five years.

Budget Report:

Copies of the budget were distributed to the attending membership.

Ron Stafford presented the Association’s projected budget and compared the actual expenditures for 2008 with the budget projections. The Association spent $600.00 less than the projected expenses.

At a Rural Water Association meeting in April, it was noted that we have the lowest water fee charge of any coop within the State--$430.00 yearly.

Reserves for infrastructure repairs, etc. were discussed. The projected expenses include new well expenditures, system maintenance and upgrades, as well as the anticipated Federal and State regulatory requirements—filtering out Uranium and Arsenic. The Uranium and Arsenic testing will be done on a quarterly basis. Reserves for Uranium/Arsenic testing have been set aside.

2009 will be the last year for most members to be charged the Assessment. The Assessment was established in 1990 at $100.00 a month for 20 years. Some members entered the Assessment after 1990 and some members were negligent in making Assessment payments—thus, these members will have fees extended beyond 2010.

Membership Records:

The reconciliation of membership records is still ongoing.

Collection of Fees:

Tom Petersen stated that a lot of Board time this past year was spent in collection of delinquent accounts. He stressed that we are striving to operate in conjunction with our Rules and Regulation. The majority of the membership pays on time—only five are negligent. Thanks from the Board to those members who are punctual with payments—it saves much time and expense.

New Well:

This past year we received a grant for $160,000.00 to drill a new commercial well. The drilling of the new well is scheduled for June 20, 2009. It will be located 30 ft. north of Well #1. A State appointed hydro-geologist determined the drilling location. The grant pays for the drilling and casing—the Association pays for the hookups. The cost will be approximately $20,000.00. It will be tied into the existing well house. It is anticipated that the well should be up and running by August. The new well will be an asset. Due to the Sanitary Act, galleries are being looked at more severely. Our gallery may go away or may only be used in the event of emergency. The life expectancy of the well is from 20 to 40 years—it depends on the casing. PVC casing will used and should increase the life of the well. Well #1 will continued to be a supplemental well.

Infrastructure/Water Conservation:

Tom Petersen reported on the inspection of water line system in the summer of 2008. A company was hired to inspect the current water line structure. We found three leaks and corrections were made. We are planning to attempt to locate old-line installations this coming year and isolating them from the new system. Tom asked members who have copies of the “old” infrastructure to please share them with the Board to aid in location of connections, etc.

Tom asked the membership to use “common sense” in water usage—check for leaking faucets, running toilets, etc. Rex Sewell stressed that the membership should turn water off to their cabins at the stop/waste valve rather than the water meter.

Bookkeeper/CPA:

Gretchen Denman continues as our bookkeeper.

Water Operator:

Levi Sandoval, Water Operator Level 3, continues to maintain the quality of our water.

Web Page:

Our web site continues: brazoswaterinc.com. Irv Lindemuth maintains the web page. Irv requested that all members submit their email addresses to the Association so that they may be notified via the web page of updates and concerns as soon as they are available.

Other:

Door Prizes were awarded.

Several members complimented the Board on a job well done!

Election of Board Members:

Hal Sorensen and Ruth Skousen counted ballots. John Hoffman received one write-in vote, Kevin Chaffin received one write-in vote, Charlie Lawrence received 45 votes, Tom Petersen received 45 votes, TJ Allard received 45 votes, and Deej Banister received 43.

Adjournment:

Clay Kilmer made a motion to adjourn. Carl Cataline seconded the motion. The meeting adjourned at 2:00 p.m.

Respectfully submitted,

Deej Banister

Secretary