Minutes from the Feb. 5, 2019 Membership Meeting

(Please note: minutes are distributed via the VDRMDWCA Facebook page, where they can be downloaded, AND the VDRMDWCA website, from which they can be copied and pasted into a Word document. Other important documents are generally made available using the same methods. Agendas and meeting notices are hand-delivered to mail boxes, as well as being distributed via Facebook and the website. Reading of minutes is a voluntary endeavor members undertake for their own edification. Board members are expected to read them.)

President Wade Cornelius brought the meeting to order at approximately 6:30 p.m. While members had begun gathering at 6 p.m. for the customary potluck meal prior to the meeting proper, not all of those attending had chosen to share the meal, and those who did were finishing up at that time. Attending the meeting were 13 individuals, including all board members—Cornelius, Secretary Beth Morgan, Treasurer David Lucero, and Member-at-Large Rob Campion—except for Patrick Stafford, another member-at-large. Also attending were Andrea Cecur and her husband Randy Mellor; Shane Wohlfert; Skip Trego; Water Operator Henry Torres; Souder, Miller and Associates representative Alfredo Holguin; Mark Sechrist; Claire Baumgartner; and Bob Melvin.

The president asked that those present to introduce themselves, which they did. The president then moved on to the approval of minutes. Minutes from two previous meetings were brought up for discussion, including those from Aug. 2, 2018, and those from October 21, 2018. They had been sent to board members for review and posted on Facebook and the Vista del Rey Mutual Domestic Water Consumers’ Association website for review by members. Secretary Morgan offered synopses of those minutes. The first set, regarding the August meeting, covered a special meeting following a very lengthy regular meeting in July, in which we met with our attorney, Josh Smith, and with Alfredo Holguin of Souder, Miller, and Associates, to provide information about the pros and cons of using government funding to pay for improvements to the system, and to get clarification about the various alternatives Souder, Miller had identified. Morgan noted that the only reason for the August meeting was to decide whether we would accept the funding that had been offered to us by the Colonias Infrastructure Board, for design work on the proposed improvements. Morgan noted that the board had approved moving forward with the project.

The timing of the second meeting being discussed, on Oct. 21, had been confusing, as the secretary had identified the time of the meeting as 2 p.m. in two or three locations, but as 6 p.m. on the hard copy of the agenda delivered to members’ mailboxes. Morgan apologized for the confusion, noting that it was because she reuses meeting agenda headings and had simply failed to change all of the pertinent information. Because of the confusion, the president noted that he had decided we would deal only with the most important of the issues on the agenda for that meeting. That was the signing of a resolution accepting the Colonias Infrastructure Fund grant for the design phase of improvements to our water system. This was done in a roll-call vote, and the grant was accepted. That was the essence of the October meeting. While the minutes should have been approved at this time if everyone was satisfied with them, the meeting advanced to the next topic, the treasurer’s report.

David Lucero, treasurer, reported that we ended the year with $5,983.19 in the bank. The association had taken in $15, 610, from which major expenses included liability insurance of $1,818, utilities of $4,020.72, repair to the well or pump house at $9,088.31, attorney fees of $1,042.44, and road maintenance at $941.20. (These expenses equal $14,926, the majority of the year’s income, with the balance coming to $2,071.25.) Lucero noted that our total expenses added up to $17,839.99, bringing the association’s earnings to a negative $2,229.99. The association finished the year with $3,753.20 left in the bank.

Campion asked Lucero whether, aside from the repairs at the well house and the attorney’s fees, the other expenses were fairly standard, and then, he asked what the repair had cost. Lucero said that the repair was the bulk of the expenses, going for pulling the pump and replacing it, which was $8,254, and there have been other repair expenses of approximately $1,000. Shane Wohlfert asked how long the pump is warranted for. Torres noted that it is less than a year. Campion said we had been using that pump for about two years. Lucero stated that these major expenses seem to recur every year. He also noted that he is concerned about the procedure for deciding to pay an attorney to provide information at the July meeting, questioning whether there was a process in place allowing all board members to have a say in the matter.

The president stated the potential for bringing in the attorney had been discussed at the previous meeting in June, so folks should have been aware of it. Wohlfert said that in the military, one cannot commit funds without approval. Cornelius replied that we have had more participation over the past year, but that we may have lacked clarity in making the membership aware of the fact that one of the aspects of the grant was that we would have to hire an attorney, which we did. Additionally, the secretary stated that no one had any way of knowing that that meeting would last almost four hours, or that the attorney’s fee would be as high as it was.

Rob Campion moved to accept the treasurer’s report. Morgan started to talk about the fact but the minutes had not been approved, only discussed, but then realized that there was a motion on the floor, and seconded it. She suggested that perhaps the board should vote on accepting the treasurer’s report first and seconded the motion. The report was accepted unanimously.

The president then asked if there was a motion to approve the minutes. Campion made the motion to accept the October 21 and August 2 minutes, which was seconded by Cornelius. These two sets of minutes were also accepted unanimously.

Wohlfert asked how minutes are distributed to water association members. Morgan noted that she first sends them to board members for their review and approval. If they are happy with them, she posts them to Facebook and to the VDRMDWCA website. Wohlfert stated that he does not subscribe to Facebook, to which Morgan replied that he can then get them off the website. He said that he is relatively new to the neighborhood, having been here only two years. (The Environment Department deems these methods of publishing meeting dates adequate; it follows that the same methods should meet the legal requirements for providing minutes, as well. It should also be noted that prior to the current board’s election, minutes were only distributed at the meeting following the one in which the minutes were generated. The current methods are an attempt to make documents available to more people from more than one source.)

The president pointed out that he is considering the association’s use of a program for distributing information to consumers that will allow them to choose how they wish to receive it—it will post to Facebook, email it, post it to the website, text it, or it will make phone calls. As he has done some work for the company, the association could use this service gratis. This is one way the board could make information more readily available to members. He noted that all that is needed is for members to specify how they want to receive the information.

The president then asked Henry Torres, water operator, how the system is faring. Torres noted that the last time we had a water leak, he had dropped the pressure from 65 psi to 55 psi. The reason for this is that the pressure pump couldn’t keep up with the demand. Cornelius said that he prefers the higher psi, because the water pressure in his house struggles, even though he has an individual pressure pump. Board member Campion also noted that he prefers the higher psi. David Lucero suggested bumping up the pressure by 5 psi and seeing how that works, in order not to overtax the system. Andrea Cecur noted that she has a reverse osmosis water filtering system in her home which wasn’t working properly. The repairman told her it was because the water system pressure was not high enough to support it. Lucero noted that his water softener didn’t work properly when the psi was too low, which is why he had obtained an individual pressure pump, as well. During the winter, Torres said, the system does a better job of keeping up with pressure demands. Lucero said if the pressure is not adequate, then the board can have another discussion.

Torres noted that we had had a leak when the well had been changed out. A joint broke at the end of January. He noted that he had sent a photo of the repair to Patrick Stafford, and he had said it looked good. In terms of biological contaminants, everything had been coming out good. Torres said that he does not see the results: they go to the president, who asked whether the association could have the results sent to Torres, as well. Torres said that would work, or Cornelius could simply forward the biological reports to him. The water operator also noted that there is a small leak underground. However, he did not think it was a big deal and it could wait until the weather is warmer to be repaired.

The president brought up the Open Meetings Act resolution which has to be renewed each year. The secretary noted she had failed to bring that resolution with her, therefore, the board would have to take it up at the next meeting.

Next on the agenda was a contract amendment for Souder, Miller, and Associates. Alfredo Holguin, the SMA engineer, noted that the original contract was for the Preliminary Engineering Review and a hydro-geo report which the engineering firm had conducted to determine the status of our system. That work was paid for through a grant from the Local Government Planning Fund of the New Mexico Finance Administration. The design of new lines, an enhanced booster system, and a line interconnecting us with High Valley Farms, which could be used in the event either system had an emergency that required it to borrow water from the other is being funded by the Colonias Infrastructure Fund. Holguin said this phase of his company’s work is intended to give the association everything needed to go to bid for a building contractor. Water association member Bob Melvin asked whether the design phase would include lines to homes outside the Vista del Rey Estates Subdivision. He said he needs to have two meters installed and a bigger line from Cornelius’ home to the west—the current line is only 1 ¼-inch line, which means that Melvin’s home has no water pressure. Holguin noted he will have to verify where Melvin is talking about to be able to ascertain whether what he needs can be done as part of this project, or whether he might have to pay for it himself.

Shane Wohlfert noted that there is private property between the Vista del Rey Estates subdivision and High Valley Farms. He wanted to know whether we would have to acquire a utility easement, and whether, once an interconnection had been established, whether the property owner whose land lies between the two subdivisions could request to tie into that interconnecting line. Secretary Morgan noted that that is not currently planned. He noted new laws have been enacted in New Mexico regarding easements. Holguin said that yes, any new easement would have to be approved by the property owner. Melvin then told Holguin that he needs to provide meters for the two memberships that Melvin had purchased—one for his home and one for a piece of property he has apparently recently sold. He noted that they have to have a bigger line or he and the other property will have no water pressure. “I want to do whatever I can to help you get me water.” This drew some chuckles. Melvin then gave Holguin his phone number.

The president thanked Holguin. He said there was an additional part to this subject, that being that the board needs to sign an amendment to allow Souder, Miller, and Associates to continue the work. Holguin noted that Steven Deal of the New Mexico Environment Department’s Construction Industries Bureau would have to sign off on it.

At this point, David Lucero noted that he had not seen any evidence of the income we were receiving from the grant. He added that he would expect some type of statement identifying the money we had taken in and documentation stating to whom it went. Secretary Morgan noted that the decision had been made, when VDRMDWCA had received the first grant, that we would allow NMFA to hold on to and administer those funds, so that taking it into our bank account would not artificially inflate our budget. If we had deposited the $50,000 in grant funds into our own bank account, we probably would have had to hire a fiscal agent to ascertain that we used the money properly, and placing it in our budget would mean our annual income was many thousands over its normal size, which could throw us out of the Tier II category the state Department of Finance and Administration had assigned to us. (Tier III and above companies were being required to have an annual audit, at a cost of approximately $8,000, which is more than half the typical VDRMDWCA budget.)

Holguin stated that SMA had been paid directly by NMFA, thereby confirming Morgan’s account of why no grant funds had been deposited into or paid out of the association’s bank account. Once they have received a notice to proceed, Holguin noted they have about 150 days of work to do. Melvin wanted to know if we could actually start construction within six months. Morgan said no, because of the funding cycles. (Just preparing and submitting and receiving a grant award can take several months to a year.) Holguin estimated sometime between June and August of 2020. Melvin noted that we would have to go to bid and asked whether we could accept anything other than the low bid. Holguin stated that would depend on the funding source, and whether there was any documentation justifying why the low bid was not acceptable. He noted that it would have to be for a reason that was not in the best interests of the association. Melvin asked who would make up the difference in the bid, should the association choose a bidder other than whomever submitted the low bid. Holguin stated that it would probably be coming from the funding source. However, the Colonias Infrastructure Fund or other state funding sources will probably require that the association accept the low bid, Holguin said. He also indicated that bidders are provided guidelines to help them meet bid requirements.

Wohlfert asked Holguin that if things such as our road were disturbed during construction of the interconnection and installation of new lines, is there any requirement that they must be restored to their original condition. “Definitely,” said Holguin, roads will be restored to their original condition. Melvin then asked whether, if an additional tank is not part of this project, we would be able to supply emergency water relief to High Valley. He said that the tank would be run dry within four hours, with two systems drawing water from it. Wohlfert asked what will happen to his fence and/or his property, if the water line easement goes adjacent to his property. Mark Sechrist said he did not believe the water line could be put on the west side, as there is a six-foot-deep arroyo.

Cornelius asked Holguin whether he could let folks who have concerns know these outcomes as soon as possible during the design process. Holguin said that the company will provide opportunities for water association members to see the preliminary design and to make SMA aware of any concerns they may have. They also have to get reviews from the NM Environment Department’s Construction Industry Bureau and the Drinking Water Bureau, prior to creating a final plan.

Melvin then asked why a second tank was not considered as part of the current project. Holguin responded that the preliminary engineering review found that storage was not our primary problem: it’s more a matter of flow/volume and pressure. Holguin said that we have about a three-day turn around on water. If we had two tanks being used concurrently, as Melvin later suggested, Holguin said it takes longer for us to use the water in a full tank than it does to fill it. In the middle of that column of water, it can go stagnant. Then, Holguin said, one must concern themselves with bacteria and using a lot more chlorine. We treat the water before it goes into the tank, but chlorine can outgas. Melvin noted that his concern is electrolysis—whether the tank will end up with a big hole in it two months after the project is complete. Melvin said from his point of view, they were offering us a project that is only half done—or partially done. “This makes me uncomfortable, dealing with an unknown,” he said. Torres noted that one can trade the tank out, then sandblast the tank on the inside and coat it with epoxy. Melvin didn‘t like that idea, even though Torres said it was a requirement. Melvin noted that there are ways to tell the thickness of the tank, without having to sandblast it. If we were to sandblast the tank and coat it, members would be out of water for weeks.

Holguin said that would be a typical rehab project. He stated that the purpose of the PER was to evaluate the system and to come up with multiple recommendations to address the system’s critical issues. They advised the association based on that: the boosters, distribution, and an interconnection with High Valley were considered our top priorities and these improvements were what the association pursued funding from the Colonias Infrastructure Fund to design. Whether we could add a second tank at our own cost was questioned by Claire Baumgartner, while Melvin said he was concerned about having additional problems once we’d spent all this money. Holguin said it was possible for us to do so, but it depends on what we direct SMA to do. Lucero reminded Holguin that he had told us we could reach out to NMED and ask for a change of scope. Morgan stated that both she and Board Member Patrick Stafford had contacted Holguin to inquire how likely it was that we would be allowed to change the scope of our project. He told both of them that it was not likely. This was reported at a previous meeting.

“I don’t think that there’s really any intention that we will stop here, [that] we will be done,” Morgan said. “It’s like our attorney said, when you have a water system, you’re always going to have to be making repairs. So, after we do this project, if we want to, we could look at doing the next thing that was the second thing that Alfredo identified.”

Holguin noted that during the PER, NMED had actually looked at our tank. Typically, a water association will have its tank inspected yearly, and thoroughly inspected every five years, on its own initiative. There are companies that specialize in that.

Cornelius suggested that we move on. The next item on the agenda was to set up a meeting with the homeowners association to discuss the maintenance of our roads. He noted some of us may be meeting weary: we also need to discuss “merging” with the Lower Rio Grande Water Association. Morgan said it would be good to get information “from the horse’s mouth,” to determine what that could mean. Also, she said that Karl Pennock of the Rural Community Assistance Corporation, had been asked to do a rate study to tell us what our rates will be once we begin paying back our 10 percent loan on the current grant-funded design project. Additionally, he could prepare information about what our water rates would be should we decide to merge with Lower Rio Grande. Morgan suggested addressing that at the same meeting with the homeowners association. Wohlfert said there is nothing on paper regarding who maintains that road. The maintenance of the road affects the property values of the homes it accesses. He said that he believes either the bylaws of the homeowners association or the water association need to be rewritten to include language about road maintenance. Wohlfert said that if the homeowners were to assess a fee, they would have to rewrite their bylaws.

Further discussion resulted in the conclusion that the road maintenance meeting should be kept separate from the one with the Lower Rio Grande and Karl Pennock. After determining that there was no old business and no comments for open forum, the meeting was adjourned at 7:43 p.m. by motion from Campion and second by Morgan. The vote was unanimous.