BRAZOS MUTUAL DOMESTIC WATER CONSUMERS ASSOCIATION, INC.

July 18, 2010 Meeting Minutes

Meeting was brought to order at 8:12 a.m. at Ron Stafford’s cabin, Brazos

Directors Present: Tom Petersen

Charlie Lawrence

Clay Kilmer

Ron Stafford

Deej Banister

Rubel Martinez

Minutes of the June 20, 2010 meeting: The minutes were read. Rubel Martinez moved to accept the minutes as read. Ron Stafford seconded. The minutes were unanimously approved.

Treasurer’s report:

Rubel Martinez presented the Treasurer’s report.

Bills are current.

The balance in the Community Bank (CB) checking account as of7/18/10 is:

$101,607.00.

The balances in the Smith Barney (SB) accounts as of 6/30/10 are:

$54,982.00

$7,066.38.

Discussion on moving our accounts out of Smith Barney (SB) continued from the June Board meeting. Rubel Martinez submitted additional information from Fidelity regarding operational policies and procedures. Charlie Lawrence presented information from Wells Fargo. It appears that several Wells Fargo Banks are in the process of closing. Because of these closures, the Board felt that the committee should continue to research additional institutions. Rubel Martinez is to obtain more detail regarding accounts and transfer procedures for Fidelity, as well as checking with Sandia Credit Union as a possible institution. Charlie Lawrence will contact Del Norte CU as to their offerings. The Board feels the safest investment would be Money Market accounts—zero risk per principal, with minimal return.

Transferring the “new well” hookup expense of $20,066.26 from SB to the general checking will take place after a new financial institution is in place.

Memberships:

There are no new transfer memberships at this time; however, we have four (4) new buyers who have not made application. Deej Banister will follow-through with contacting these individuals and make reference to the R/Rs 90-day regulation:

Carrie—need transfer fee

Montoya—need application and transfer fee

Ladensohn—need application and transfer fee

Eliason—need application and transfer fee

Rubel Martinez met with Delaine Patrick and refunded overpayment for the Ralph Sloan 2010-2011 water fee.

Tom Petersen is to write a letter to Warren regarding water requests and concerns. This is carried over from June 20, 2010 Board meeting. See June 20, 2010 minutes for details.

Tom Petersen is to contact Jones regarding stop and waste valve installation location. This is carried over from June 20, 2010 Board meeting. See June 20, 2010 minutes for details.

Tom Petersen is to lock out Silva/Garcia and place notice on door.

Rubel Martinez notified Tom Casias by email that we acknowledge his request to be removed from membership.

Delinquencies:

The water fee delinquencies/status report submitted by our bookkeeper, Gretchen Denman, was reviewed and discussed. Rubel Martinez is to check with Gretchen for the following:

1. Current billing status for delinquent accounts—(collection agency, lock out, membership removal, etc.);

2. send another invoice to Cosgrove regarding current year’s billing;

3. contact Fausten Trujillo’s attorney to clarify the credit due on the Trujillo account—refund or credit;

4. carryover to 2011-2012 the following credits: Martha Allard and Ida Salazar.

Rules and Regulations:

Irv Lindemuth submitted possible modifications for the Rules and Regulations regarding collection procedures for non-payment of fees and appropriate penalties, etc. The Board after a lengthy and in-depth discussion made the following changes to the Rules and Regulations:

Ron Stafford made a motion to accept Irv Lindemuth’s proposed changes/revisions/alternative proposals for Section VI (1-12) with the Board’s changes made to Items 6 and 9. These changes will apply retroactively to all delinquent accounts on the first day of the second month following a formal notification to delinquent members that these revisions have been made—for the purposes of retroactive application, all accounts will be assumed to be two-months delinquent, so that the corresponding meters will be locked (i.e., accounts will be assumed to be at the state indicated in Item 7). Rubel Martinez seconded the motion. The motion unanimously carried.

Approved changes for VI are listed below:

1. All annual fees will be billed by April 15^th of each year and due on June 1.

2. An annual fee late payment penalty fee of $50 will be added to the account if the annual fee is not paid on or before June 1.

3. Service fees including disconnect/reconnect fees, fines, fees based on meter readings, and any other charges will be billed within one month of the time the charges are incurred and are due and payable in full by the first day of the second month following the billing date.

4. A service fee late payment penalty fee of $10 will added to the account if the service fees are not paid by the due date.

5. All annual and service fees are subject to New Mexico Gross Receipts Tax. In the event of disconnection or other exception, the fee(s) will not be pro-rated and are not subject to refund.

6. Exception to payment can be made only by a written arrangement with the Board.

7. When the account is two months delinquent, the member's service meter will be locked in accordance with section 3-29-6D of the New Mexico Sanitary Projects Act and Section IX-2 of the BMDWCA By-Laws. A disconnect fee (Sec. VII.9) will be added to the account. The lock will remain in place until the account plus a reconnect fee (Sec. VII.9) is paid in full.

8. When the account is four months delinquent, the account will be turned over to a collection agency. All fees charged by the collection agency will be added to the account.

9. When the account is twelve months delinquent, a lien will be placed upon the property in accordance with the New Mexico Sanitary Projects Act section 3-29-6C. The lien will remain in place until the account is paid in full. In accordance with the Sanitary Projects Act, the association shall be entitled to recover all costs and attorney fees related to the lien.

10. When the account is delinquent for three years, a process for cancelling the membership certificate will be initiated in accordance with BMDWCA By-Laws, Section IX-3.

11. For memberships cancelled involuntarily under item 10 or voluntarily, liens put in place under item 9 will remain in place.  Furthermore, the BMDWCA will take whatever additional steps are appropriate to recover all funds in accordance with section 3-29-6D of the New Mexico Sanitary Projects Act.  Liens will be removed after all funds have been recovered.

12. All delinquent accounts will be sent an updated statement monthly. The statement will indicate the original delinquency date. The statement will include a notification as appropriate (Section 3-29-6D of the New Mexico Sanitary Projects Act and Section IX-2 of the BMDWCA By-Laws) that steps 7, 8, and 9 are about to be taken or have been taken.

Board changes for Section VII-9:

Ron Stafford made a motion to revise VII-9 to read—Late fee, delinquent annual fee: $50.00; Late fee, delinquent service fee: $10.00. Clay Kilmer seconded the motion. The motion unanimously carried.

Board changes for SectionVII-10:

Charlie Lawrence made a motion to revise VII-10 as follows—disconnect $50.00 and reconnect $50.00. Rubel Martinez seconded the motion. The motion unanimously carried.

Training:

The first 6-hour training meeting has been set for August 28, 2010. It will be held at the Tierra Amarillo County Chambers Room. Ron Stafford will check with the Sue Sleeper, instructor, as to the time. Need to furnish food and drinks. Levi Sandoval is the contact person for Sue Sleeper.

Construction/Maintenance Issues:

Ron Stafford will contact Terrazas Utilities to set up schedule for infrastructure work:

Priorities for infrastructure repairs:

1. Replace galvanized line on Falls Creek Rd. from Sorenson’s to upper “Y” with polyethylene line and install water cans for Lawrence and Sewell (Morris property).

2. Cap off galvanized line from the Upper Falls Creek Rd., near Sewell’s new property (Morris property) to Well #3, Dr. 1759.

3. Remove PRV at Aspen “Y” and tie into water can at Hoffman’s (formerly Thurston’s).

4. Check valve at Well #3 to Banister, Hoffman, and Stafford. Disconnect old galvanized line between Well #3 and Well #1. Put in discharge valve in 4” line where it dead ends north of Staffords.

5. Relocate stop and waste valve at Jones

6. Disconnect old galvanized line between Lake View and Blue Jay.

(These improvements are estimated at 37K—to be taken out of Reserve money—15K for Upper Falls Creek Rd., Item 1, and 22K for remaining items.)

Ron Stafford and Deej Banister will notify owners involved with Falls Creek Rd. repair.

Ron Stafford reported that the pump for Well #3 failed and was replaced by Gerry Gakin in early July, 2010.

Flushing of Fire Hydrants:

Ron Stafford presented information on fire hydrant flushing. The hydrant across from the restaurant has a bad valve and the Fire Department needs to arrange repair and coordinate this with Levi Sandoval.

New Well:

The new well is doing very well—the turbidity is down to 3. It is presently operating at 8,000 gallons a day for a 4-hour run period each day.

Other:

Clay Kilmer made a motion to make new signs for the well houses, #1-1A and #3, to aide in identification. Clay Kilmer will procure signs.

Charlie Lawrence relayed a request from the Fire Department through Mike Valdez to connect a 12 ft. fill-pipe to the water tank behind the deer shed for the Department to fill a tanker in case of fire. After discussion the Board determined that we cannot jeopardize our current system with a fill pipe as suggested. The Board offers an alternative solution— usage of the “old” tank above Well #3, Dr 1759/Water Line Rd.

The next general meeting will be held August 29, 2010 at Irv Lindemuth cabin at 8:00 a.m.

The meeting adjourned at 11:50 a.m.

Respectfully submitted,

Deej Banister

Secretary