Brazos Mutual Domestic Water Consumers Association, Inc.

Annual Membership Meeting

 

May 30, 2010

 

Introduction:     Tom Petersen presented introduction with Board and Membership.

 

Proof of Quorum:

Banister

Cataline

Chafins

Cooke

Freelin

Harper

Harris

Hays

Jones

Lawrence

Lindemuth

Martinez

Palmer/Walker

Petersen

Praiswater

Sewell

Stafford

Valdez

Walenciak

Wilkinson

 

Quorum was met, 20 present

 

Proof of Notice:

Notification of meeting was mailed to all members on May 4 and was 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

 

Call to Order:

Jeff Harris made a motion to call the meeting to order at 1:30 p.m.  Carl Cataline seconded the motion.  The motion unanimously carried.

 

Ballot counters were appointed:

                 Jeff Harris and Nina Valdez

 

Minutes:

Minutes of the annual meeting of May 23, 2009 were read.  Carl Cataline made a motion to accept the minutes as amended.  Mike Valdez seconded.  The motion unanimously carried.

TreasurerÕs Report:

Rubel Martinez gave the year-end budget report, March 31, 2010.  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 at year end was approximately $49,000.00.  As of to date, the balance is approximately $80,000.00 due to receipt of 2010-2011 water payments.  The balance in Smith Barney accounts is approximately $64,000.00.  Due to the current national economic status, the interest accrued on these accounts was very low.

 

Our liabilities are:

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

                 $15,000.00 loan                 maturity date 2012

                 $5800.00 loan                     maturity date 2021

                 $1600.00 loan                     maturity date 2025

 

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.  Auditors will be provided by the State.  Our Association is classified as a Tier 4, which is based on the amount of money we take in for water fees.  The BMDWCAÕs CPA, Nick Loftis, indicated that our cost should be approximately $3,000.00.  The auditors will be provided by the State.

 

Budget Report:

Copies of the budget were distributed to the attending membership.

 

Ron Stafford presented the AssociationÕs budget.  Line items with significant differences in projected to actual were discussed.  Our budget estimates for 2009-2010 were on target.  The Association projected $76,076.00 in expenditures, which included $30,000.00 in reserves.  The actuals with reserves came to $76,047.18.

 

Reserves categories were discussed.  Reserves will be used for well expenditures, system maintenance, tank cleaning, and upgrades, as well as the Federal and State regulatory requirements such as filtering out Uranium and Arsenic levels.  These reserves are required by The Sanitary Projects Act to help the water associations alleviate the need for loans and assessments.  Presently, $30,000.00 is the amount to be set aside each year for Reserves.

 

Assessment fees were discussed.  2009 was 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 2010-2011.  Eighteen memberships are due assessments in 2010-2011.

 

Income for the BMDWCA will be lower this year due to the maturity of the Assessment; however, the Loan for $15,000.00 will be paid off and should help make up some of the difference.

 

There will be no increase in water fees over the next couple of years.  Rex Sewell recently attended training with the Rural Water Association and shared that the BMDWCA water fees were the lowest fees of the mutual domestic water associations—in some cases, approximately half the cost.

 

 

 

Arsenic/Uranium:

The Uranium and Arsenic testing will be done on a quarterly basis.  Currently, Arsenic and Uranium levels are very low and will not affect consumers.

 

Training:

The Board of Directors will be required to take a twelve (12) hour class on water management from the Rural Water Association.  Six hours of the class will be completed this year and finalized in 2011.

 

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.  We will be implementing procedures for collection of delinquent accounts this coming year, such as a collection agency, membership removals, property liens, etc.  Tom reiterated that the majority of the membership pays on time and extended thanks from the Board to those members who are punctual with payments.

 

New Well:

The new well is completed.  It is at the stage of conditioning.  The new well will be an asset.  The life expectancy of the well is from 20 to 40 years.  It is located 30 ft. north of Well #1.

 

Infrastructure/Water Conservation:

Tom Petersen discussed a major line break on upper Falls Creek Road.  During the winter, Levi Sandoval, AssociationÕs Water Operator, and Randy Terrazas, Terrazas Utilities, completed temporary repairs to the affected lines.  Permanent repairs will be made as soon as the weather permits.

 

The Board extends a Òthank youÓ to Paul Harper for furnishing the Association with maps and diagrams of the original infrastructure installations.  These were of tremendous value in locating lines.

 

Again, as last year, the BMDWCA asks that the membership  use Òcommon senseÓ in water usage—check for leaking faucets, running toilets, etc., and that there be no vehicle washing and no watering of lawns.

 

Membership Concerns and Questions:

Why do I pay for water usage when I am not in the Brazos?  Water fees are used for infrastructure installation and repairs, not for amount of water used.

Why is water so soft?  Is this a cost we can avoid?  We do not use a filtering device.  The only treatment used for the water by the BMDWCA is Chlorine.  In the spring, the runoff water comes from melting snow, which has no chemicals—this could account for the soft water.

Why do we not read meters?  Currently the meters are used to check for water leaks, etc.  To read the meters would require the employment of a full-time person year round—plus the expense of monthly mailing of invoices.

How much does it cost to tie into the system?  For a non-user, there is a $75.00 connection fee.  For a new installation, the fee is $6000.00.

What types of pipes are in our system?  Our system has copper, galvanized, and PVC infrastructure.

 

Bookkeeper/CPA:

Gretchen Denman continues as our bookkeeper.

Nick Loftis, CPA, prepares our taxes.

 

Water Operator:

Levi Sandoval, Water Operator Level 3, and his assistant, Bidal Candelaria, continue 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.

 

Election of Board Members:

Irv Lindemuth received 39 votes, Rubel Martinez received 39 votes, Rex Sewell received 38 votes, and Clay Kilmer received 39 votes.

Other:

Several members complimented the Board on a job well done!

 

Adjournment:

Carl Cataline made a motion to adjourn.  Nancy Jones seconded the motion.  The meeting adjourned at 2:30 p.m.

 

Door prizes were awarded.

 

Respectfully submitted,

 

 

Deej Banister

Secretary