Draft

BRAZOS MUTUAL DOMESTIC WATER CONSUMERS ASSOCIATION, INC.

July 15, 2012 Meeting Minutes

Meeting was brought to order at 8:00 a.m. at Paul Walenciak’s cabin, Brazos

Directors Present: Mike Valdez

Rubel Martinez

Paul Walenciak

Irv Lindemuth

Deej Banister

Ron Stafford

Tom Petersen

Clay Kilmer

Minutes of June 10, 2012 were approved:

Clay Kilmer made a motion to accept the minutes as presented. Ron Stafford seconded the motion. The motion unanimously carried.

Treasurer’s Report:

Rubel Martinez presented month-end financial report:

Bills are current.

Bank accounts:

Community Bank checking/savings as of June 30, 2012: $ 74,312.70

Fidelity checking and JASBX as of June 30, 2012: $ 82,083.57

The monthly earnings for Fidelity JASBX are consistent with

previous months, approximately $100.00.

Financial Audit:

Rubel Martinez is continuing to check on current audit requirements and the possible need of an audit for 2013.

Memberships/Transfers:

1. No new membership transfers.

2. The new owners of the Selsing property were given an application on June 30 to make the necessary water membership transfer. No information has been received as of this date.

3. A new procedure for generating certificates by computer was discussed and approved.

4. Tom Petersen will contact the mortgage company lawyer concerning the Lucy Moya property to see if the property has sold. The debt has been met on the lien of said property and can be removed.

5. Requests by members for removal of late fee charges were reviewed. The Board felt all late fee charges were valid and denied any adjustments.

Water Rights Adjudication:

The New Mexico State Engineer is currently adjudicating the BMDWCA water rights. Clay Kilmer met with Ed Newelle, water rights attorney for NMSE, in Santa Fe last month. We were originally allotted 97 acre feet of water rights at the establishment of the Brazos Lodge Estates. This amount could be lowered to 18 acre feet. We currently show usage of approximately 7 to 9 acre feet. Clay Kilmer is to contact a water-rights attorney to see if we can possibly sell a portion of the 97 acre feet rights to help build our revenue and retain a portion of our previous established water rights.

Clay Kilmer will advise Levi Sandoval, our water operator, to submit monthly meter readings to the State Engineer’s office, as well as copies of such to all Board members. Clay will contact the State Engineer’s office to procure the official submission address.

Construction/Maintenance Issues:

Road repair was completed on Falls Creek road and at Well #3.

The clean-out valve at Well 1A on Spruce is scheduled to be installed, and two (2) small leaks will be repaired—Coffee’s cabin site and a meter can on Lower Falls Creek Road. This work should be completed in July or August time frame.

Stop and Waste Valve:

After a lengthy stop and waste valve usage discussion, Irv Lindemuth made the following motion: The following items are added to Section VIII of the Rules and Regulations: VIII.4, Property owners are prohibited from using the meter can valve to turn on and shut off the water to their property except for an emergency or maintenance. The valves are not designed for repetitive use. Owners will be held financially responsible for damage resulting from unauthorized use. Furthermore, unauthorized tampering with a community water system is a federal offense. VIII.5, All properties to which water is supplied must have an operable shut-off valve separate from the meter can valve. The valve is intended for owner use. Properties not meeting this regulation after August 20, 2014 will be locked out and the lock-out will remain in place until this requirement is met. Paul Walenciak seconded. The motion unanimously carried.

Irv Lindemuth will incorporate the above changes into the R/Rs and post them on our website.

A letter will be forthcoming to the membership regarding installation and usage of a stop and waste valve. Clay Kilmer will provide schematic drawings and pictures to accompany the finalized letter.

VFD Gravity Fill:

Mike Valdez reported that the VFD work for the gravity fill has been started by Terrazas Utilities. Materials have been ordered. It should be completed in July or early August—weather permitting.

Other:

Clay Kilmer reported that State requirements for the discharge plant for Corkins Lodge have been met. Sampling of the laundry leach field will be performed only one time.

Non-user membership modifications were discussed:

An extensive and lengthy discussion was held to review and determine the best procedures to use to benefit non-user members who no longer meet State Requirements for lot development due to acre size. It was determined that these members should be allowed to transfer or sell their memberships to a user lot of at least ¾ acre or larger. Irv Lindemuth made the following motion: The following item is added to Section XII of the Rules and Regulations: XII.6, Subject to Board approval, a non-user membership not in arrears may be transferred to another lot within the Association service area (including line extensions as covered in Section XI of the R/Rs). A request for transfer by the non-user membership owner, the old non-user Water Certificate to be transferred, the current transfer fee, a copy of the Warranty deed of the property to which the membership is to be transferred, and a completed Application for Transfer must be submitted to the Board for approval. Upon transfer, the non-user membership becomes a standard user membership. If ownership of the membership is also transferred, a copy of the Bill of Sale or other proof of the original owner’s intent to transfer ownership must be provided. Tom Petersen seconded. All present voted; one abstained, Ron Stafford. The motion carried.

Irv Lindemuth will incorporate the above changes into the R/Rs and post them on our website.

The next meeting will be held on Sunday, August 19 at 8:00 a.m. at Ron Stafford’s cabin.

The meeting adjourned at 11:53 a.m.

Respectfully submitted,

Deej Banister

Secretary