April 30, 2024  Progress on the lift station continues to plod along.  The electrical system is around a week from being connected by PNM.  File Construction excavated the foundation for the propane tank pad.  Concrete will be poured on May 1, 2024.  The original propane tank pad was constructed too close to the emergency generator and a new pad had to be constructed at no cost to the TWWA.  We continue to use the two Rain for Rent pumps for the daily wastewater transfer.  Eddie Mendoza and Alan reviewed the File Construction cut over plan.  The new basin will begin receiving wastewater as the high pressure line is disconnected, pumped, and the HDPE pipes are fused together.  If everything goes as planned, at the end of the day, the new lift station will be operational, except for the fuel to the emergency generator.

Emergency Meeting of the Tyrone Water & Wastewater Association

April 29, 2024

Draft Minutes Posted April 30, 2024

1. Call to order and declare a quorum – Alan Berg-President

a. The meeting was called to order. Alan Berg, Doug Gorthy, and Angie Roach were in attendance. Alan

Berg declared a quorum.

b. Alan Berg stated that Jesse Lewis had verbally resigned; we are waiting an official, written resignation.

Alan reminded everyone that we now have two vacancies on the Board.

2. Conditions leading to the findings in the Tier 6 Agreed Upon Procedures (AUP) conducted by Carney Foy,

C.P.A., are of an urgent concern to the TWWA Board of Directors and time is of the essence to remedy the

potential financial loss to the members of the TWWA and residents of the Tyrone, New Mexico townsite.

Fiscal and townsite management concerns by Mr. Foy were expressed in the exit conference for the most

recent audit for fiscal year 2023, held on Thursday April 25, 2024, with Alan G. Berg, TWWA President

and Doug Gorthy, member at large at the offices of Carney Foy, C.P.A.

a. Alan Berg read the agenda item aloud.

i. Alan Berg explained that NM Statutes provide limited options for the entire Board to meet and

address urgent items. We needed to hold an Emergency Meeting, so that the Board could meet

and begin addressing concerns before Alan leaves town this weekend.

b. Items related to audit findings:

i. Alan Berg said that he and Doug Gorthy met with Carney Foy for our financial audit. The audit is

three months late but is finally completed. See Attachments for the audit findings.

ii. Doug Gorthy addressed Carney Foy’s audit findings. Our current accountant (Morones) is not

getting things done appropriately. We need Morones to “step up” or we need to find another

accountant.

iii. Alan assured everyone that there are no indications of fraud or embezzlement. Morones uses the

cash method of accounting, and we need to move to an accrual accounting system. The cash

method of accounting does not show how “pre-paid” items are applied through time. The accrual

method of accounting is more accurate, and we must move to that in May. Our draft budget is due

to the State in June.

c. Items related to continued sustainability of the TWWA:

i. Alan Berg stated that Carney Foy had also expressed concern about the continued functioning of

the TWWA. Carney Foy noted all the work that Alan is doing and the fact that Alan is leaving.

Carney expressed concern over who would continue the work that Alan is doing. (Note: Alan

Berg needs to spend time with his wife in Arkansas; she is unable to live at our elevation due to

medical concerns.)

1. Alan Berg pointed to a list of projects on the board (see Attachments) and noted that this

is a lot to administer. Alan stated that we have no one to help run these projects, and that

we have been unable to obtain grant money to pay for someone to take on an

administrative role.

ii. Doug Gorthy reiterated that Carney Foy asked what we were going to do when Alan Berg leaves:

“What is the exit plan?”

1. Doug stated that one option would be to pay $60,000-80,000 for an administrator. Doug

calculated that would cost an extra ~$20 per month per house on our assessments.

2. Our second option would be request that the County administer the townsite. Alan has

done a lot of work lately; the town is in a much better position than it was two years ago.

3. Questions from Community:

a. If the County administered the townsite, would we still have the TWWA? No,

but we would still have the TCA – our HOA.

b. Would we still have assessments? Unclear. We still owe the USDA $513,000 for

the failed lift station. We are trying to refinance this loan.

4. Without Alan, the TWWA cannot continue to function unless someone in the Community

is willing to volunteer, but we don’t see that person. Alan Berg does not mind

volunteering his time and serving on the Board, but he’s not going to be here and cannot

continue doing what he has been doing.

iii. Doug Gorthy stated that he and Alan both think that the County is the best option. The County is

composed of professionals. The lift station is almost completed, and the water system upgrades

are in process. We got it done, but this is not sustainable.

1. This idea has not been broached to the County. However, they are professionals.

Currently, we have volunteers handling 9 million dollars’ worth of projects.

2. Alan showed the letter that went out to homeowners (see Attachments). It details the

projects that the TWWA is working on. Alan also stressed that he will not drop the ball,

but he can’t be effective if he’s not here.

3. Question: What if the County says “no”? There is no precedent for this situation. It seems

likely that NMED would require either the County or City to handle the townsite.

d. Items related to initiating discussions with the County and City:

i. Questions/Comments:

1. Is it a Community or Board decision to approach the County? We need someone to let

them know what we are approaching a precipice.

2. Could the County turn us down? Yes, but that does not seem advisable. Additionally,

Tyrone Community members contribute more than our fair share of taxes given that we

only receive minor road work in return.

ii. Alan Berg stated that we weren’t making any decisions tonight. We just need the Board to

approve of sending one or two representatives to meet with the County and/or City.

1. The plan would be to have two members of the Board meet with the County and City

together. We would let them know that we will continue as long as we can, but they need

to be prepared – someone may need to manage Tyrone going forward.

iii. Doug Gorthy asked if we need to approve this before the next Board meeting on the 15th? Alan

stated ‘yes’ because he needs to leave town this weekend. We want to get “the ball rolling”.

e. Questions/comments from the Community:

i. There are only 3 people on the Board, and only 11 people attending this Emergency meeting; this

is not sustainable. “This town doesn’t care.” Who is going to take care of us?

1. There is the possibility that the League of Cities has people who can help administer

projects, but we can’t tap into that. The City may be able to do this on our behalf.

ii. It is certain that the County and City would appreciate the heads up. “You can plan it or you can

catch it”. We need to address this pre-emptively before there is a crisis.

iii. Regarding hiring someone to act as an administrator, we have no confidence that you can hire

anyone around here that is 1. worth it and 2. wouldn’t steal the money. It just sounds like another

patch.

1. We have people who know how to administer projects, but they don’t know the ins-and-

outs of government that Alan Berg has learned over the past two years.

iv. Do you ask the City/County for help now? Or does one of you step down from the Board, then

you’re on the precipice and they have to help? There is no real precedent. It’s not a financial issue

(we have the grants); it’s just managing all the required paperwork that is involved.

v. Is there a way to make the transition seamless? The County likely doesn’t want us. But we have a

new lift station and we will hopefully have new water pipes and a rehabilitated water tower. After

that, it’s “just maintenance”.

vi. Is there financial gain for taking us on? We don’t know, but they can’t get the $65 assessments

that TWWA is currently receiving.

1. Our water rates are some of the lowest in the County, but what happens to them if we

drop the $65 assessments? Unknown.

2. We still have an obligation for the old lift station. What happens if we default? No one

knows.

vii. Is the new lift station done? No, the Engineers designed the propane tank too close to the

generator; additionally, there are issues with the electrical boxes. We are delayed and are still

renting Rain-for-Rent pumps. Alan Berg and the Salazars are checking our rental pumps daily.

1. The new lift station has a 1-year warranty. The new pumps are reliable and used all over

the County.

viii. Does the County have the ability to manage Tyrone? If a water line broke, the County would just

call a plumber – which is what we do now.

ix. We sent out the letter to the Community. We are trying to get people to come to the Annual

Meeting and also to see if anyone will volunteer to help.

1. You can’t conscript someone to be on the Board, and maybe you shouldn’t if it’s not

sustainable anyway.

x. When would we know if the County or City “says yes or no”? We don’t know, but it would

certainly have to go through their Board Meetings.

xi. We’ve been very lucky, but our Water Tower situation is very precarious. We’re using a

Freeport-McMoRan grant for the assessment, but it’s not enough for the rehabilitation work.

Even if we get the $848,958 from the Colonias, it will take several months to get the work started.

xii. What impact does this have on disclosure for buying and selling? If they’re honest, people

disclose potential issues. People call Alan all the time to ask about the situation in Tyrone. We

want to make this work.

1. Does this devalue our property as it stands now? No. In fact, we’re putting in new

infrastructure.

2. We don’t think this is dire, and if the County takes the lead, the projects will be handled

by professionals.

xiii. Would there still be a TWWA if the County or City takes over? No, but we don’t know how to

dissolve the entity yet. Or perhaps a single Board would be running two entities – ex. County and

TWWA. There are precedents for this, and the Government grants are being given to the TWWA.

f. Alan Berg called for a motion.

i. Alan called for a motion for two Members of the Board to meet with the City and County

Managers to discuss ongoing operations issues in Tyrone.

ii. Doug Gorthy made the motion; Angie Roach seconded the motion.

iii. A roll-call vote was taken. Angie Roach, Doug Gorthy and Alan Berg all voted ‘yes’. The motion

passed unanimously.

3. Adjournment-A. Berg

a. Doug Gorthy made a motion to adjourn the meeting. Angie Roach seconded the motion. The motion was

approved unanimously, and the meeting was adjourned.

Emergency Board Meeting Notice and Agenda

Monday April 29, 2024, 6:00 P.M.

Tyrone Water and Wastewater Association

Posted on tyronnmwater.org at 0800 Hours Sunday April 28, 2024

The Tyrone Water and Wastewater Association (TWWA) will hold an emergency board meeting on Monday April 29, 2024, at 6:00 p.m.  The meeting will take place at the Tyrone Community Center 50 Malachite Avenue Tyrone, New Mexico 88065.

The purpose of the meeting is to discuss urgent financial issues as defined in New Mexico Statutes Annotated (NMSA) 1978, Chapter 10, Article 15, Paragraph F.

In this subsection, "emergency" refers to unforeseen circumstances that, if not addressed immediately by the public body, will likely result in injury or damage to persons or property or substantial financial loss to the public body.

The TWWA Bylaws approved by the State of New Mexico on January 25, 2022, provides for emergency meetings in Article VI, Directors of the Association, Section 5.

AGENDA

The agenda item for this emergency meeting is to review the findings identified in the most recent financial audit of the TWWA for fiscal year 2023 and to develop an action plan or plans.

 Conditions leading to the findings in the Tier 6 Agreed Upon Procedures (AUP) conducted by Carney Foy, C.P.A., are of an urgent concern to the TWWA Board of Directors and time is of the essence to remedy the potential financial loss to the members of the TWWA and residents of the Tyrone, New Mexico townsite.  Fiscal and townsite management concerns by Mr. Foy were expressed in the exit conference for the most recent audit for fiscal year 2023, held on Thursday April 25, 2024, with Alan G. Berg, TWWA President and Doug Gorthy, member at large at the offices of Carney Foy, C.P.A.

Alan G. Berg

 Alan G. Berg

President TWWA

April 28, 2024

Note: NMSA 1978 10-15-1 (F) requires that the notice and outcome of the emergency meeting shall be reported to the attorney general’s office: Within ten days of taking action on an emergency matter, the public body shall report to the attorney general's office the action taken and the circumstances creating the emergency;….

Posted at tyronenmwater.org on Friday April 26, 2024 at 0915 hours

TYRONE WATER & WASTEWATER ASSOCIATION BOARD MEETING

April 17, 2024 – 6:30 P.M. – TYRONE COMMUNITY CENTER

Draft Minutes

Website: tyronenmwater.org

1. Call to order and declare a quorum – Alan Berg-President

a. The meeting was called to order. Alan Berg, Doug Gorthy, and Angie Roach were in attendance. Alan

Berg declared a quorum.

b. Alan Berg stated that Jesse Lewis is unlikely to continue participating on the Board due to ongoing

medical concerns. Alan reminded everyone that we really need members of the Community to volunteer

to be on the Board.

2. Approval/disapproval of Agenda-Deletions

a. Alan Berg stated that Items 4 & 5 would be deleted from the agenda as Carney Foy was not in attendance.

b. Doug Gorthy moved to approve the agenda as amended. Angie Roach seconded the motion. The amended

agenda was approved unanimously.

3. Approval/disapproval of minutes of the March 20, 2024, TWWA Board Meeting.

a. Doug Gorthy moved to approve the draft minutes for the March 20, 2024 TWWA Board Meeting. Angie

Roach seconded the motion. The minutes were approved unanimously.

b. Alan Berg noted that having these approved minutes from the last meeting was important as we need to

submit them to NM Environment Department as part of our application for a $50,000 grant for an

assessment of our sewer lines.

4. Approval/disapproval of a motion to move into closed session for an exit conference of the FY 2023 Agreed

Upon Procedures (AUP) in accordance with Section 12-6-5 of the Audit Act provides that an audit report does

not become a public record, i.e., subject to public inspection, until five days after the auditor releases it to the

audited agency. Where the agency being audited is governed by a public body subject to the Open Meetings Act

and where release of the report occurs at an exit conference at which a quorum of the members of the body is

present, such exit conference need not be open to the public in order to preserve the confidentiality of the

information protected by Section 12-6-5.

5. Return to Open Session. Report on topic discussed in the closed session.

6. Approval/disapproval of the March 2024 financial reports

a. Alan Berg discussed the March 2024 Financial Statements and General Ledger

i. Financial Statements

1. Alan Berg noted that various categories under “Assets” would be combined on July 1st

with the new fiscal year. This was a finding from our audit.

2. Alan Berg stated that our revenues are hovering at about $20,000 per month, and that

we’re still working on delinquencies.

ii. General Ledger

1. Alan Berg noted that we received a payment from David Maxwell – the Maxwell

property is the only non-Tyrone property connected to our sewer line. They are paid and

current on their assessments.

2. Alan explained that the Rain-for-Rent and Griffith Propane charges are for the back-up

pumps while we wait for our new Lift Station to be constructed. Charges from HEI were

for the emergency response to our lift station in late February.

3. Alan Berg summarized the USDA loan for which we are making payments. This loan

was the 20% portion of a $3 million project in 2010 for the now defunct lift station. We

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still have a $538k balance and 29 years of payments left. Our monthly payment covers

the interest, but we’re not making much headway on the principal. Alan has been looking

into whether we can buy out the remainder of the loan (via a new New Mexico loan) at a

lower interest rate; right now, we’re paying a lot of money without much benefit.

b. Angie Roach moved to approve the financial reports as presented. Doug Gorthy seconded the motion. The

financial reports were approved unanimously.

7. Old Business

a. Status of lift station schedule and activities. Last activity March 26, 2024

i. Alan Berg reported that the last time the contractors were on-site at the lift station was March

26th. The propane tank was sited too close to the generator, so this will result in a $26,000 change

order which Stantec is absorbing.

ii. The generator will arrive next week, but it won’t work without propane.

iii. The pumps are on-site, but the panel to run the system is backordered.

iv. Alan Berg stated that there will be a meeting tomorrow to figure out the current schedule; it’s

slipped another month. In the meantime, Kenny and Chantel Salazar are checking on the 2 Rain-

4-Rent pumps daily; the pumps require a lot of diesel fuel.

b. Status of PNM power line relocation application-Approved and on PNM schedule

i. Alan Berg reported that there was a power failure yesterday at the lift station. Fortunately, PNM

was there to start work.

ii. PNM found that the electrical infrastructure at the lift station was not in conformance with their

standards. This will have to be rectified by the electrical sub-contractor.

iii. PNM did give us a break on the cost of transformers as we’re an existing customer; they cost

$4000 vs. the new price.

iv. Luis Terrazas and Priscilla Lucero have both been very helpful in our interactions with PNM.

c. $50,000 grant for investigation of the existing sewer lines in Tyrone resulting in a Preliminary

Engineering Report (PER)

i. Alan Berg stated that, after tonight’s meeting, he will submit the March Meeting Minutes to the

State, and they will send us a $50,000 grant. Alan noted that the State has a lot of money

allocated to projects, but the immense amount of paperwork is delaying a lot of the projects from

starting.

8. New Business

a. Resolution 2024-16 Approval/disapproval of Infrastructure Capital Improvement Plan for 2026-

2030 Fiscal Year. Current ICIP attached.

i. Discussion of current ICIP elements

1. Alan Berg began the discussion of the proposed 2026-2030 Infrastructure Capital

Improvement Plan (ICIP). A copy of the current 2025-2029 ICIP is provided in the

Attachments.

2. To date, we’ve received $382,220 in funding. Some items, like the Backhoe Purchase,

need to be delayed. We will also remove Park Improvements as that is now in the

purview of the Tyrone Community Association.

3. The current ICIP has $4.5 million for our Wastewater System Improvements. In reality,

Wastewater will either be ~ $8 million or nothing. In the latter case, if the Engineers

determine that our sewer lines have a sufficient lifespan remaining, we will not be able to

obtain State funding for their replacement.

ii. Additional needs for Tyrone townsite

1. We need to add $900,000 to the ICIP for Water Tower rehabilitation and repairs.

a. As a reminder, the water tower will need a new vault and valves. This will allow

us to drain the tower and repair the old “temporary” patch.

b. BHI was out today with their drone to get elevations and inspection of the tower.

This is being paid for from the $112,000 grant from Freeport-McMoRan.

3

2. We should also add a project to the ICIP to repave the Community’s streets when the

water and wastewater projects are done.

iii. Alan Berg stated that he would meet with Priscilla Lucero and BHI new week to discuss the ICIP.

iv. Alan Berg made a motion to Approve Resolution 2024-16 in favor of completion of a 2026-2030

FY Infrastructure Capital Improvement Plan. Doug Gorthy seconded the motion. Alan Berg,

Doug Gorthy, and Angie Roach voted yes. The motion passed unanimously.

b. Agenda for annual membership meeting on May 15, 2024

i. Election of board members

1. Nominations from the floor

2. Presentations by nominees

3. Voting process (Robert’s Rules of Order as guidance)

• Alan Berg stated that our Bylaws require an Annual Membership Meeting in May. With Mandy

Lilla gone and Jesse Lewis out with medical concerns, we really need additional participation

on the Board. This is a Covenant Community and part of the process is participation.

• Alan also noted that we’ve lost the information on how long Board terms should be; this

information loss occurred when Anna Flores shredded the Community’s records.

• We will accept nominations from the floor for Board Members and voting will follow Robert’s

Rules of Order.

ii. Approval/disapproval by majority of the membership in attendance to incur additional debt

to finance our portion (10% or 20%) of the water tower repair and water system

construction which is estimated to be $6,546,073.

1. A 1% loan from the State of New Mexico for 20 years

2. 10%-$654,607 which is estimated to be $9.35/month per property

3. 20%-$1,988,381which is estimated to be $18.70/month per property

• Alan Berg stated that the biggest issue on the agenda for the Annual Meeting is that we don’t

know if we’ll get 80% or 90% grants for our $880k Water Tank Rehabilitation project and

$5.7 million Water System project. This is a total of $6,546,073; the interest rate will not

exceed 2%.

• We do not know what % of these projects will be a loan nor the interest rate. Estimates on our

required repayment range from $10 to $20 per home per month (see Attachment for the

numbers that Alan displayed at the meeting).

• The Board would like to see if we can absorb these possible increased costs without raising

our rates. If not, we will need to increase either our assessments or our water bills.

Additionally, the Community also needs to re-build its Reserve funds.

• The Board believes that the Community should be involved in making the decision to accept

these monies and attendant loans and encourages everyone to attend the Membership

meeting. The Board has drafted a letter to homeowners to explain the situation.

• Alan Berg stated that he thinks we have a good chance to get these monies from the State. At

the least, we really must get funding for the Water Tower rehabilitation. If the patch on the

Water Tower fails, the water will empty out of the tank, and we would have no water until it

could be repaired. The entire Community could be without water for 2 weeks or more.

iii. Questions and Comments from Community Members and the Board:

1. When will we know if we are awarded these State funds? May 12 or 13. Hopefully, we

will know before the next meeting.

2. When the lift station is operational, we should save $8300/month on the Rain-for-Rent

pumps? Yes, and actually somewhat more because of the fuel costs for those pumps.

3. We have to get our Reserves up and out of crisis mode. If we have a major failure

without anything in our Reserves, we will be forced to do an assessment on every house

to pay for it. It’s better that everyone pay $20/month now than a single emergency

assessment of thousands of dollars per home. We need to analyze how quickly we can

build up our Reserves. Even if we have to pay a small additional amount monthly, it will

put us in the best position.

4

4. When do we find out the status of the sewer line? After we submit last month’s minutes

to the State, they will release the funds. BHI can then work on the Preliminary

Engineering Report. Actual scoping of the lines could begin next month.

5. The Engineering results will guide the decision on replacing the sewer lines. We need to

know this information before we tear up the streets for the water lines.

6. Will we know the determination of the sewer systems before the next meeting? No. If we

add a sewer line replacement project, it will double the cost of our projects.

7. Can we delay the water project if needed? No, but we could phase it. How long is the

project to replace all of the water lines? 1-1/2 to 2 years.

8. It is important for the Community to come out for the decision to obligate the

Community to $6 million worth of projects!

9. We are concerned about the impact of increased costs on Elderly and other members of

our Community. Perhaps we can provide some kind of exemption or provide waivers for

people? Perhaps there is some form of assistance available through the Colonias?

10. In sum, we are working on 4 major infrastructure projects: Lift Station, Water Lines,

Water Tower and Sewer. Please come to the Annual Membership Meeting!

c. Approval/disapproval of 2024 Emergency Response Plan for wastewater emergencies

i. Alan Berg noted that on May 15th, we will also have to approve a new Emergency Response Plan.

d. Approval/disapproval of the creation of the Draft Fiscal Year 2025 TWWA budget including

preliminary:

i. Revenue expectations

ii. Expenditures

iii. Doug Gorthy made a motion to develop a Draft FY 2025 budget. Alan Berg seconded the motion.

iv. Alan Berg stated that we need to analyze the budget to see what we can do with regards to the

costs for our new grant-loans and to build reserves.

v. A vote was taken on the motion. Doug Gorthy, Alan Berg, and Angie Roach all voted yes.

9. Report and Approval of Officers and Committees

a. President’s Report

i. Alan Berg reported that we had a good session with the Colonias Infrastructure Board. TWWA

had spent our funds on-time and within budget.

b. Vice President’s Report-No Vice President

c. Secretary’s Report

i. Angie Roach had no comment; Alan Berg and Doug Gorthy thanked her for preparing thorough

and accurate minutes.

d. Treasurer’s Report-No Treasurer

e. Doug Gorthy-member

i. Doug Gorthy stated that he’d been having some conversations with Alan Berg about Alan’s

future plans. Alan Berg will be headed to Arkansas after the May Membership Meeting to be with

his wife; he will be in Arkansas at least one month. Alan Berg stated that he cannot be President

much longer though he is willing to remain on the Board.

ii. Doug pointed out that we may need to pay an Administrator. Alan does a tremendous amount of

work for us, and it seems unlikely that we will find someone else to voluntarily shoulder that

load.

1. Would a paid Administrator need to live in town? No.

2. Angie Roach suggested that we add the cost of an Administrator to our Draft FY 2025

budget.

iii. Doug Gorthy noted that once our infrastructure repairs and replacements are completed, a lot of

the “heavy work” will be done. The Community had a great gift (aka Alan Berg!) for the last 2

years, but that is ending now.

iv. Doug closed by commenting that we need more than just 6 or 7 people attending the Board

Meetings. The Board is making a 20-year financial commitments on behalf of the Community.

The Community needs to be involved in these decisions.

5

f. Dr. Jesse Lewis-member-Unable to attend.

g. Water Operator - Eddie Mendoza-Lead and Copper Rule and Consumer Confidence Report

schedule. New EPA PFAS Rules.

Eddie Mendoza was unable to attend the Board Meeting, so Alan Berg provided the following updates:

i. Eddie is taking an inventory of all the houses for the Lead and Copper Rule.

ii. The EPA has a new rule related to PFAS (per- and polyfluoroalkyl substances). PFAS are the

“forever chemicals” that are used in firefighting foam and other products. These chemicals are

very water soluble and are found all over the country. Fortunately, our well fields are in locations

that have not been impacted by industrial activity.

iii. We are waiting for the Town of Silver City to give us our Consumer Confidence report; we do

know that all values were good.

iv. Kenny and Chantel Salazar are still cleaning the lift basket daily. We’ve been getting a

tremendous amount of grease, and yesterday, there was a pair of underwear in the basket! Note

that our pumps are not designed to handle cloth.

10. Public Input

a. A Community Member, who is a tenant, asked if he could vote (in the upcoming Membership Meeting)

on the homeowners’ behalf? Robert’s Rules of Order says that the homeowner must be in attendance but

attending by Zoom or telephone counts. Please note that Zoom will be available for the May Membership

Meeting. We want everyone to participate!

11. Adjournment-A. Berg

a. Angie Roach made a motion to adjourn the meeting. Doug Gorthy seconded the motion. The motion was

approved unanimously.

April 26, 2024

File Construction and Alderman Electric were onsite this week to install the control panel for the new lift station and begin construction of the shade structure.  The plan last week was to perform the cut over from the old to the new system, but it may not happen as PNM has to approve and connect the new electrical boxes.  The new variable frequency drive (VDR) system in the control panel is air conditioned, which will help extend the VDRs life.

Wednesday April 24, 2024.  A very busy day at the lift station.  We had been operating for a week with only one pump.  The backup Rain for Rent pump ran for three weeks and died.  It took a week to get the replacement pump which was installed and tested today.

File Construction and their subcontractors are on site installing the shade structure and electrical panels and other electrical hardware that will control the new lift station.  PNM installed three larger transformers for the new lift station pumps.  If the final cutover of electricity takes place later this week or next week, the new lift station could go live next week.  There some complicated logistics that have to take place to make this happen as we do not want to interupt the flow of wastewater from the Tyrone townsite.

Tyrone Water and Wastewater Association Infrastructure Capital Improvement Plan 2025-2029

April 10, 2024- A significant issue (a bust in the design) related to the proximity of the propane tank pad to the emergency generator was identified last week when Griffins Propane came to the site to assess the 1,000 gallon propane tank relocation.  According to the fire codes, the tank and generator need to be at least 10 feet apart.  The installed pad is within 3 feet of the generator pad and a new pad has to be constructed and the exterior chain link fence footprint has to be increased to accommodate the change.  The cost for this effort is in File Construction's court, and we are waiting for the impact of this change on the project's schedule.  The only good news last week was the approval of the construction application by PNM.  We are waiting for their construction schedule.  Alderman Electric, File Construction's subcontractor has installed the secondary pole, meter base, and main disconnects.  We are waiting on the delivery of the generator, control cabinet (VFD) and shelter.  We do have the pumps.  See photo above.

Tyrone Water & Wastewater Association Board Meeting

March 20, 2024 – 6:30 P.M. – Tyrone Community Center

Draft Minutes Posted March 26, 2024

Website: tyronenmwater.org

1. Call to order and declare a quorum – Alan Berg-President

a. The meeting was called to order. Alan Berg, Doug Gorthy, and Angie Roach were in attendance. Alan

Berg declared a quorum.

2. Approval/disapproval of Agenda-Deletions

a. Alan Berg stated that Items 4 & 5 would be deleted from the agenda as Carney Foy had not yet completed

the audit. Alan also noted that he told Carney Foy that the audit had to be completed by next Thursday in

order for us to submit the application for State Colonias funds for our water system.

b. Doug Gorthy moved to approve the agenda as amended. Angie Roach seconded the motion. The amended

agenda was approved unanimously.

3. Approval/disapproval of minutes of the February 21, 2024, TWWA Board Meeting.

a. Approval of the minutes was inadvertently skipped. See Item 9c for approval of the minutes of the

February 21 Board Meeting.

4. Approval/disapproval of a motion to move into closed session for an exit conference of the FY 2023 Agreed

Upon Procedures (AUP) in accordance with Section 12-6-5 of the Audit Act provides that an audit report does

not become a public record, i.e., subject to public inspection, until five days after the auditor releases it to the

audited agency. Where the agency being audited is governed by a public body subject to the Open Meetings Act

and where release of the report occurs at an exit conference at which a quorum of the members of the body is

present, such exit conference need not be open to the public in order to preserve the confidentiality of the

information protected by Section 12-6-5.

5. Return to Open Session. Report on topic discussed in the closed session.

6. Approval/disapproval of the February 2024 financial reports

a. Angie Roach made a motion to discuss the February 2024 Financial Reports. Doug Gorthy seconded the

motion.

b. Alan Berg discussed the Financial Reports.

i. Alan noted that our revenue was a little better this month; we received $23,733.70 in revenue and

have a positive cash flow. This is due to an increase in people paying their assessments, but also,

some people are paying their assessments for the entire year. Year-to-Date our revenue is

$286,289.95, but $112,000 of that is the Freeport-McMoRan grant for the water tower.

ii. Alan pointed out that all four the Moyno pumps for the old lift station have “blown up” now.

Until the new lift station is built, we are operating on 2 rental pumps from Rain-for-Rent. Alan

believes that our cash flow will be okay for 1-2 months, but the rental pumps are an added cost.

Additionally, these pumps require diesel fuel (~100 gallons per week per pump) and a lot of

attention (i.e. we must check on them frequently).

iii. Alan discussed the difference between our unrestricted cash and our reserve funds (see

Attachment). Much of our money is tied up in reserve funds, and even a lot of our “unrestricted”

cash is committed. We do have approval from the USDA to use some of the reserve funds to help

pay for the rental pumps if needed.

iv. Alan stated that we may also be able to ask Freeport-McMoRan to use part of the $112,000 grant

to help pay for the rental pumps. We would need to send them a formal request.

v. Alan said that he had asked the USDA if we could pay off our loan as we’ve been paying them a

lot in interest. He is looking for ways to refinance loan with another government entity at a lower

interest rate.

vi. Alan is also working with our Accountants to consolidate our reserve accounts (see Attachment).

We should be able to combine them into three accounts; two required by USDA and one general

reserve account.

c. The Financial Reports were approved unanimously.

7. Old Business

a. Status of lift station schedule and activities.

i. Alan Berg stated that we’re still waiting for the concrete pad for the new lift station to cure. The

delay was caused by the contractor, File Construction. When Alan asked if we have liquidated

damages written into the contract, he was told that we do but they don’t begin until May.

ii. Based on the original schedule, the lift station should have been completed before the end of

March. Alan is planning on meeting with File Construction tomorrow to understand the actual

schedule.

iii. Alan Berg and Doug Gorthy discussed the fact that neither Stantec or File Construction have been

particularly responsive to our concerns. This is because both the State funds and the construction

contract are administered by Southwest New Mexico Council of Governments, not us. However,

that was how the State funds were allocated, so it’s the system that we are required to use.

b. Status of PNM power line relocation application

i. Alan Berg stated that we recently learned that the power to the lift station would not be in place

until mid-May, so Doug Gorthy intervened with PNM. (This long lead-time for power is

occurring in spite of the fact that we had submitted our application in July of 2023.)

ii. Doug Gorthy stated that he got in touch with our Representative, Luis Terrazas. Terrazas

responded, and both Alan and Doug provided him with additional information. PNM has since

started on the right-of-way process, but we are still waiting to see what the next steps from PNM

will be. We have been told that the power should be in place by the 1st of April.

c. $50,000 grant for investigation of the existing sewer lines in Tyrone

i. Alan Berg stated that we had received a $50,000 grant from NMED for an investigation of our

sewer lines. We will use the funds to hire a company to scope our sewer lines and determine

whether they require replacement.

ii. We won’t be able to obtain funding for new sewer lines if the investigation determines that our

current lines still have life – even though it seems silly not to replace them while we are replacing

the waterlines.

iii. Alan Berg noted that we may also get $50,000 from NMFA. If so, we could use those funds for a

Preliminary Engineering study for the sewer lines.

d. Collapse of all Moyno pumps and installation and operation of the Rain for Rent pumps at a rate of

$8,600.00 per month for two pumps, suction, and pressure hoses

i. Alan Berg stated that on Sunday, March 3rd, he went to the lift station by accident as he thought it

was Monday. He discovered that the last of our Moyno pumps had failed and the sewage had

almost overflowed out of the basin. He was able to start the back-up Rain for Rent pump and

saved the day!

ii. After a few days, Alan Berg and Eddie Mendoza decided to get a second Rain for Rent pump as a

back-up. Without a back-up, if the single pump failed, we would risk releasing sewage into the

drainage. TWWA is asking SWNMCOG for emergency funds to help pay for these pumps.

iii. Alan also discussed seeing “fatbergs” in our system; “fatbergs” are a combination of grease and

wipes that harden and completely clog sewer systems. Google the term “fatberg” to learn more

(and see disgusting photos).

8. New Business

a. Denial of exemption from Grant County Assessor for TWWA parcels

i. Alan Berg stated that he had requested a tax exemption for the TWWA’s parcels; this would save

us about $2,000 per year. However, the County Assessor’s office denied the exemption (in spite

of the fact that the law clearly states that Water-Wastewater entities are exempt). We are in the

process of figuring out where to appeal this denial.

b. Approval/disapproval of Resolution 2024-15 AUTHORIZING TYRONE WATER AND

WASTEWATER ASSOCIATION (RECEPIENT) TO ENTER INTO A GRANT AGREEMENT

WITH THE NEW MEXICO ENVIRONMENT DEPARTMENT (NMED) FOR THE PURPOSE

OF OBTAINING PROJECT LOAN SUBSDIDY GRANT FUNDS IN THE AMOUNT OF

$50,000.00; DESIGNATING THE USE OF THE FUNDS FOR THE PURPOSE DEFINED IN THE

MOST CURRENT PROJECT DESCRIPTION FORM AS APPROVED BY NMED; DECLARING

THE NECESSITY FOR THE FUNDS; PRESCRIBING OTHER DETAILS CONCERNING THE

FUNDS.

i. Angie Roach made a motion to discuss Resolution 2024-15. Doug Gorthy seconded the motion.

ii. As the motion was 6 pages long, it was not read aloud. Rather, time was given for the Board and

Community Members to review the motion.

iii. Alan Berg stated that this motion was required for us to receive the $50,000 grant from NMED.

He also noted that we will need similar Resolutions to apply for funding from the Colonias

($800,000 for water tower rehabilitation and ~$5 million for the water system).

iv. A roll-call vote was taken to approve Resolution 2024-15. Doug Gorthy, Alan Berg, and Angie

Roach all voted yes. Resolution 2024-15 passed unanimously.

9. Report and Approval of Officers and Committees

a. President’s Reporti.

Report on collection of delinquent accounts

1. Alan Berg reported that the collection practices established in the last regular Board

Meeting were beginning to produce some results. (Reminder that non-payment of

assessments may result in a lien on a house and/or a padlock on the water meter.) Alan

stated that we are chipping away at the delinquencies. It’s a lot of work, but we need the

cash. We received a few thousand dollars of overdue assessments in the last week.

ii. Participation in a community needs assessment, NM Mortgage Finance Authority

1. Alan Berg noted that the NM Mortgage Finance Authority is conducting a community

needs assessment. This assessment helps the agency decide where to allocate funds. Alan

will place a link to the assessment on TWWA’s website, and he requests that Community

members consider using it to provide their feedback.

iii. Response from State on Resolution 2024-12 emergency declaration for water tower repairs

1. At the last Board Meeting, a state of emergency was declared for the water tower. Alan

Berg stated that he has been discussing the issue with various State Government

Agencies. Additionally, he approached the USDA, but they did not respond.

b. Vice President’s Report-No Vice President

c. Secretary’s Report

i. Angie Roach pointed out that we had inadvertently skipped the approval of the minutes in Item 3.

Angie Roach stated that we would be voting on the 2nd draft of the minutes which incorporated

revisions by Alan Berg; she then made a motion to approve the February 21st minutes as

amended. Doug Gorthy seconded the motion. The motion passed unanimously.

d. Treasurer’s Report-No Treasurer

e. Doug Gorthy-member

i. Doug Gorthy stated that he had no comment.

ii. Alan Berg brought up the fact that both TWWA and TCA are having issues with PNM. Doug

Gorthy, who had previously met Luis Terrazas at the Prospectors, called Representative Terrazas.

Luis Terrazas intervened with PNM so that our lift station construction would not be unduly

delayed.

1. This led to additional Community discussion about TCA’s attempts to work with PNM

regarding our streetlights.

f. Dr. Jesse Lewis-member – Not present.

g. Water Operator - Eddie Mendoza

i. Eddie Mendoza stated that our Consumer Confidence Reports would be coming out soon; all of

our water samples were fine. Additionally, we got a response for our Sanitary Survey, and our

water quality is good.

ii. On the wastewater side of things, Eddie Mendoza reminded everyone that we’re operating on two

rental pumps.

10. Public Input

a. Annual Meeting – Alan Berg and Doug Gorthy discussed the upcoming Annual Meeting. In particular,

they stated that, by that time, we will know if we are receiving the $5 million for the water line

replacement. The funding is a grant-loan with either an 80-20 or 90-10 split. The loan portion represents a

significant amount of money, and the Board will have to decide whether to accept the loan. It would

increase our monthly assessments. We need more people to attend to provide public input on this decision

which will affect the entire community. It shouldn’t be just 3 people making decisions for 320

households. Please attend the Annual Meeting in May!

b. Lead and Copper Rule – Alan Berg and Eddie Mendoza discussed the upcoming deadline for the EPA’s

Lead and Copper Rule. Eventually, every home in Tyrone will have to be inventoried to determine what

material(s) the water lines contain. For the upcoming October deadline, we can submit the information

that we have based on the Engineering Plans from Phelps Dodge. (Note: based on the plans, most of our

homes were built with copper lines, but these lines may have been replace by homeowners in the interim.)

A full inventory of our community must be completed in the next 5 years.

11. Adjournment-A. Berg

a. Doug Gorthy made a motion to adjourn the meeting. Angie Roach seconded the motion. The motion was

approved unanimously.

There are now two diesel powered Rain for Rent wastewater pumps at the lift station.  The larger unit is the primary and the smaller one is the backup.   The property owners of Tyrone will be charged $8,300 per month for both pumps until the new lift station is on line.  The current schedule has the new lift station operational at the end of March 2024.  

At the February 21, 2024 TWWA Board meeting, the Board selected five homeowners at random using numbered balls placed in a bucket.  Eddie Mendoza, our water and wastewater operator drew the balls and Angie Roach, Board Secretary recorded the numbers and correlated them with the numbered list of delinquent homeowners.  These homeowners will be send a registered letter with a copy of the newly adopted Rules & Regulations informing them of the steps in resolving their delinquencies.  We will work through the delinquent list diligently with the intent of having all property owners in Tyrone pay their fair share of the operational costs of the water and wastewater system.

Post Card Mailed to Property Owners in Tyrone

The TWWA Board of Directors in a Special Meeting on February 7, 2024 proposed to adopt another step in recovering delinquent funds from property owners who are not paying their $65.00/month assessment.  In addition to filing liens, the proposed Resolution 2024-14 adopts new Rules and Regulations which include a provision to shut off property owners' water supply if their unpaid assessments are over 90 days overdue.  There is a hardship exemption that property owners' can apply for if they are unable to pay due to medical conditions.  This hardship exemption has to be renewed every 90 days.  

Property owners in arrears are encouraged to contact Alan Berg at (575) 654-0391 to avoid having the water shut off for non-payment.

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Construction activities on January 3, 2024  Placing the basin with check valves and backfilling around the basins by File Construction

March 6, 2024.  File Construction completed concrete work and site grading.  Next step is to install the emergency generator, propane tank and pumps.  Alderman Electric will be installing the controls soon.  The jib crane will be installed next week after the concrete pad has had time to cure.  PNM has the easement drawings and will hopefully install the new electrical service soon.