A regular meeting of the Timberon Water and Sanitation District Board of Directors was held on May 17, 2008 at 10:03AM in the community center. Board members present were Richard Dysart, Arden Schug, and Shirley Holstrom. Vice-Chair Glenda Gentry and General Manager Ken Bradshaw were absent. Treasurer Holstrom called the meeting to order at 10:00am and called for any additions or corrections to the agenda. One addition was added to New Business – Search for Attorney to replace John Wheeler. Richard Dysart made a motion to accept the agenda with additions, Arden Schug seconded the motion, and the vote was unanimously in favor. Shirley Holstrom led the Pledge of Allegiance and the Salute to the New Mexico Flag. 1. The new board member Joseph Mainello, appointed by Judge Valentine for Position 1, was given the Oath of Office and seated. 2. a. The minutes of the February 16, 2008 regular meeting were read. Dick Dysart moved to accept the minutes as read. Arden Schug seconded the motion, and the vote was unanimously in favor. b. The minutes of the March 11, 2008 work session were read. Arden Schug moved to accept the minutes with one correction – paragraph 7 line 2 of the swimming pool report should read “putting out a bid for a contractor” instead of putting out a bid for an electrician. Dick Dysart seconded the motion as corrected. The vote was unanimously in favor. c. The minutes of the March 15, 2008 regular meeting were read. Dick Dysart moved to accept the minutes as read. Arden Schug seconded the motion, and the vote was unanimously in favor. d. The minutes of the Special Session held on Friday April 11, 2008 were read. Dick Dysart moved to accept the minutes as read; Joseph Mainello seconded the motion, and the vote passed unanimously. 3. Shirley Holstrom gave an account of the bank balances for the treasurer’s report. 4. Manager’s report was not given, as the manager was not present. Old Business: 1. Litigation Update: (Election) We have been ordered to hold a special election for Position 5 with Ms Gentry and Mr. Beagles the candidates. Ms. Gentry has filed an appeal to Judge Counts’ Order. The Board has not. (Bankruptcy) We are waiting for Judge McFeely to make a ruling. (Beagles/TWSD Gambel et.al, misc) There have been motions filed and we are waiting for further information; they have filed another motion against Glenda Gentry. 2. Report on FEMA work on flood-damaged roads: Work is progressing on the roads; the inspector has approved the first section of the work; work is expected to continue through Jan 2009. 3. General Manager Vacancy: We are advertising for a new general manager and will be putting ads in several newspapers, bulletin boards, and online. 4. Secretary of the Board vacancy. After some discussion, we will advertise again for a secretary. 5. PRC Rate Increase: We are still working with PRC to achieve approval of the form of notice. When approved, the Board will meet to vote on it. 6. Select Committee Representatives (not necessarily Chairman): a. Water Advisory Committee – Arden Schug; b. Budget committee, Shirley Holstrom; c. Water Rate Committee, Joe Mainello; d. Swimming Pool Committee, Richard Dysart. New Business: 1. New Board Member Joe Mainello gave a short bio of himself and introduced his wife Karin. 2. Select new Chairman: The Board agreed to postpone this item until all board members bonds and oaths are filed in district court. Arden Schug made motion, Joe Mainello seconded, unanimous vote carried. 3. Bank Signatures: Resolution 0708/011 to have all Board members and General Manager as account signatories, unanimously approved on a motion by Richard Dysart & seconded by Arden Schug. 4. Disavow Letter from Gentry to Republicans: Resolution No. 0708/012, to disavow any knowledge of the political letter Ms. Gentry personally sent out to Fellow Republicans endorsing Senator Rod Adair for State Senator in the Primary election was unanimously approved on a motion by Arden Schug and seconded by Joe Mainello. 5. Search for New Attorney: Mr. Wheeler has suggested that we look for another attorney and says he has a list of possible attorneys we may contact. Arden Schug made a motion to send out an RFP as soon as possible, Joe Mainello seconded the motion. Shirley Holstrom is to contact Mr. Wheeler to get his list of suggested replacements. The vote was unanimously in favor of the motion. 6. Election Proclamation for Position 5 Election: The board agreed to postpone this item until we get additional direction from Judge Counts as to specific procedures, timing, & clarification. In order to comply with the 40-day after a primary rule, the election could be held July 15, 2008. Motion by Arden Schug and seconded by Joe Mainello passed unanimously. 7. Appoint Secretary for Election: Tabled until Arden Schug can ask Yvonne Ross if she would be willing to fulfill the election secretary position. 8. Board Indemnity & Attorney Contact POC: After much discussion, the Board agreed to postpone this item until the next meeting pending rewrite as Board is indemnified by prior Resolution on a motion by Richard Dysart & seconded by Arden Schug. Vote was unanimous. 9. Website: Richard Dysart made a motion to use the several websites on the internet to provide information to people who are unable to come to the meetings and out-of-towners. This includes such information as approved minutes to meetings, forms, agendas, notices, etc. Joe Mainello will chair this committee. Arden Schug seconded the motion, and the vote was unanimously for the action. Only Official information (Approved Minutes, etc.) will be released. 10. Accounting/Bookkeeping/Administration Needs: The Board is looking into subcontracting a full-service administrator to handle the administration of TWSD, including preparation of foreclosures, filing liens, etc. An RFP for qualified applicants will be prepared and sent out. 11. Land Acquisition for Tank: Arden Schug moved that Dick Dysart and Arden Schug be allowed to meet with Bo Herndon and discuss the purchase of land for the placement of a water tank. Dick Dysart seconded the motion, and the vote passed unanimously. 12. Opening Talks with Virgil Beagles: Arden Schug made a motion for Dick Dysart and Arden Schug (and alternate Joe Mainello) to open talks with Virgil Beagles and attempt to discuss the legal issues; including a possible resolution of the lawsuits. Dick Dysart seconded the motion, and the vote was unanimous. Only two (2) will participate at any time and will bring the discussed items back to update the whole Board for determination as to proper way to proceed. Committee Reports: 1. The Water Rate Study was discussed under Old business. 2. Swimming Pool Committee: Joan Schug gave a report on the swimming pool committee’s activities, tree clearing, slash hauling, etc. Outstanding is an open RFB for rehabbing the inside of the pool, skimmers, plumbing, cleaning and re-cementing, and solar heating. The bids are due in by 12 June 2008. Their remaining funds should be enough to cover this work. The contractor has to be bonded. Agenda Requests: 1. Joan Schug – Use of Lodge: Joan Schug presented the Board with a petition signed by 38 citizens requesting the Board to consider eliminating or reducing fees for using the Lodge Annex. Discussion included “in-kind labor” to clean the lodge after activities to satisfy the anti-donation clause. Arden Schug made a motion to re-convene the Facility Use Rate committee based on proper information considering the anti-donation clause, and make recommendations to the Board. Dick Dysart seconded the motion. Discussion resulted in Joe Mainello being on the committee. The vote carried unanimously. 2. Bill Curtis requested a meeting with the Board to discuss a credit for the water bills that were paid when the motel had no water as a result of TWSD’s pipes being broken for three months. He agreed to furnish documented proof (notarized affidavit) of the business he lost ($1320) because of this. Joe Mainello made a motion for Joe Mainello and Shirley Holstrom to meet and discuss this with Bill Curtis (and Aurora Corder) and bring a recommendation back to the Board. Joe Mainello seconded the motion, and the vote was unanimously in favor. Unscheduled Citizens Communications: 1. DeWayne Beagles said he received an unsigned letter from TWSD in response to his FOIA request for general manager information, and wanted to know who prepared the response and sent it out. He was told Glenda Gentry gathered the information, prepared the response and sent it out. 2. Several members of the audience thanked the board for the positive way this meeting was conducted - the productive and open communication shown in this meeting will likely bring a bigger attendance in the future. Directors Remarks: Arden Schug said thank you all for being here – he hopes this is the first of many good meetings. Dick Dysart said the meeting was way too long, some of us got verbose, other than that it was a good meeting. Joe Mainello said thanks for attending and for showing your patience during the whole thing. Those present represent a concerned part of the community and he feels good that the community is participating. Shirley Holstrom said that for chairing her first meeting, it turned out exquisitely better than she anticipated and thanked the participants for their part. There being no further business, the meeting was adjourned at 1:20 pm. Submitted by Shirley Holstrom, Acting Secretary These minutes were approved as corrected in the June 28, 2008 meeting. SH TIMBERON WATER & SANITATION DISTRICT MINUTES FOR THE MEETING OF May 17, 2008 - Page 3 of 3 3 TIMBERON WATER & SANITATION DISTRICT MINUTES FOR THE MEETING OF May 17, 2008