Cuatro Villas MDWUA Rules and Regulations

Only Sections III, VII, and VIII
Adopted March 20, 2010

Section VIII Rate Increase Adopted March 24, 2012
Effective 7/1/2012

All Sections Adopted August 11, 2012

Section VIII Rate Changes Adopted March 23, 2013
Effective 7/1/2013
Commercial Rates Effective 10/1/2012

Sections VII and VIII Changes Adopted March 26, 2014
VII Effective 4/1/2014
VIII Effective 7/1/2014

Sections II, III, IV, VII, VIII Changes Adopted March 21, 2015
II, III, IV, VII Effective 4/1/2015
VIII Effective 7/1/2015

Adopted March 19,2016

Introduction
Communications
Definitions
Membership Application
Transfer of Membership
Water Service & Metering Facilities
Billing & Collections
Fees and Rate Schedule
Water Conservation & Drought Management
Customer Service & Bill Adjustments
Installations, Maintenance and Repairs
Contractor/Employee Polices & Reimbursement
Fiscal Matters
Board MeetingS

I. Introduction

In accordance with the Association Bylaws, these Rules and Regulations are issued to the membership and govern the fees and services rendered by the Association.

In the event any provision of these Rules and Regulations will be found in conflict with the Association Bylaws or applicable State or Federal regulations then the more stringent rules will prevail.

These Rules and Regulations may be amended as required by the Board of Directors and become effective upon approval of the Board of Directors. They will be available to each Member, other persons and State or Federal agencies as may be required.

Gender terms, as used herein, will refer to the male or female gender.

II. Communications

Members are strongly encouraged to: (a) contact Board Members regarding questions and concerns about system operation and status; (b) frequently monitor the Association web site at www.cuatrovillas.org where Members can find system status, meeting announcements, meeting minutes, contact information, and the latest version of the rules and regulations; and (c) provide the Association with their e-mail addresses to enable rapid communications.

The Board meets every month on the last Wednesday at 6:30 PM at the office located at 18537 Hwy 84/285 Suite A, Arroyo Seco. The office hours are Friday 10a.m. to 2p.m. and Saturday 9:30a.m. to 5p.m. Changes to office hours may be made by the Board as needed.

In the event of water shortages, use restrictions and other situations that negatively impact the availability of water, the Board will make a reasonable attempt to notify all Members of such shortages, restrictions and other situations. Notification methods may include signs in the service area, announcements on the Association web site at www.cuatrovillas.org, e-mail messages to those Members who have provided their e-mail addresses to the Association and by broadcast over the local radio station (KDCE).

III. Definitions

1. Association: The Cuatro Villas Mutual Domestic Water Users Association.

2. Board: The Association's Board of Directors.

3. Categories of Membership: The Association shall have Residential, Commercial/Institution, Non-Profit and Secondary memberships.

a) Residential memberships entitle the Member to service to a specific residence. The membership shall be issued to:
i. Individual persons;
ii. Married persons who shall own the single membership jointly as community property associated with ownership of the property within the franchise limits of the Community;
iii. Co-Tenants, Joint property owners, or other properties where there is more than one property owner such as Estates.

b) Commercial/Institution memberships entitle the Member to service to one commercial establishment. Multi-unit commercial establishments where each establishment is metered may require a secondary membership for each commercial store front. The membership shall be issued to:
i. Businesses, partnerships, corporations, or any other form of business organization such as water haulers;
ii. private schools;
iii. Multiple unit rental property.

c) Non-Profit memberships entitle the Member to service within their areas. Non-Profit memberships are designed for non-profit associations composed of water users and landowners and shall be issued to:
i. Homeowner associations;
ii. Governmental entities, such as fire stations, public schools;
iii. Cooperative associations;
iv. Non-profit corporations.

d) Secondary memberships entitle the Member to service to an additional single family dwelling or commercial store front on the property to which the Member holds a residential or commercial membership. Secondary memberships are designed to act as memberships for additional habitable dwellings, structures, or units, attached or detached, which are in addition to a primary home or business on the same property. Secondary memberships do not have voting privileges.

4. Change of Status: Changing the type of service from non-user to user or vice versa.

5. Commercial: Property used to operate a licensed or unlicensed business for the Member or his designee.

6. Conversion of Membership Type: Changing the type of service granted by the existing certificate.

7. Cuatro Villas MDWUA: The Association.

8. Domestic Use Water: Water that is used for normal “in home" activities, such as cooking, drinking, washing and use of bath facilities.

9. Member: Any person, group of persons, trust, entity or commercial venture whose property lies within the Cuatro Villas MDWUA service area and by application, has received membership in the Association and is in compliance with all the Bylaws and Rules and Regulations of the Association.

10. Membership Certificate: A paper certificate granted to each approved service connection of the Association either residential or commercial. Each dwelling or commercial establishment receiving or to receive service from the Association must have its own Certificate of Membership and must pay the base rate as required by funding agencies and this Association’s Rules and Regulations for the capital infrastructure cost of the water system.

11. Membership Transfer Fee: An administrative fee charged to the recipient of an existing membership as that membership is transferred to the recipient from the former Member.

12. New Membership Fee: A non-refundable fee charged by the Association for processing an application for membership of a new service.

13. Non-User: A Member of the Cuatro Villas MDWUA who is not connected to the water distribution system. For purposes of connection to the water system a non-user membership has priority over a new membership.

14. User: A Member who is connected to the Cuatro Villas MDWUA water service. The user is entitled to connect the water service to his/her residence and any outbuilding that is used to support living in the main residence, such as an outbuilding with a clothes washer.

IV. Membership Application

1. The person applying for Cuatro Villas MDWUA membership must complete a form approved by the Association. The completed application, Membership fees and a copy of the Warranty Deed or other proof of ownership must be returned to the Association's office or Secretary for inclusion on the agenda of the next regular Board meeting.

2. The applicant may appear before the Board and have these Rules explained and any questions answered. The Board will approve, disapprove or table the application and determine the type of service (residential, commercial, etc.).

3. Upon approval of the application, the applicant must pay the membership fee at the current rate. The first half is due upon approval and the remaining balance may be paid via a written Payment Agreement approved by the Board to be paid within 6 months of the connection. The membership fee includes the hook up cost to the system.

4. Existing non-user Members must notify the Board in writing to request a change of status. Upon completion of the Change of Status form, payment of fee(s) and Board concurrence, the Member will be advised of the status change.

5. The Board will be under no obligation to approve an application for any membership if such membership would exceed the current capacity of the Cuatro Villas MDWUA system. The water usage of a new commercial business will be estimated based upon the type of business and standard New Mexico usage guidelines for that type of business. The Board will not allow connections to the system if the projected business results in a total usage of water from all connections that exceed the production capacity of the Cuatro Villas MDWUA. The estimate will be based on the assumption that a single family residence will use, on the average, 120 gallons per day.

6. Water Rights. The total amount of water that is allowed to be pumped from the Association’s wells each year is determined by the total water rights owned by or transferred to the Association. It is therefore, the responsibility of each Member of the Association to provide the Association with:

For Residential/Secondary memberships:
a) .282 acre feet of a surface (irrigation water) water right for said Member for domestic use or;
b) .25 acre feet of ground (well water) water right for said Member for domestic use (this calculation considers a family household of 4 members)
c) a fee shall be paid in lieu of transfer of water rights if no domestic well or surface water rights exist on the property.

For Commercial/Non-profit memberships:
a) this will be determined on a case by case basis.

(The calculation of groundwater rights needed by each Member is done by using the following formula: 56 gallons x 4 persons in the applicant’s household x 365 days in a year = the number of gallons needed in your household per year.

The gallons needed per year divided by 325, 851 (gallons of water in an acre foot) = acre feet needed by said applicant to be transferred to the Association. )

7. Water Services for Rental Property/Estates, etc. The property owner will be the Member and responsible for all bills incurred to the Association. The Association bills renters under the Member’s name.

V. Transfer of Membership

1. A Member who wishes to transfer his/her membership must state such a request in witting to the Cuatro Villas MDWUA Office. Upon request for transfer, the new Member will be sent an Application for Transfer, a copy of these Rules and Regulations and the amount of the transfer fee. In the event that a property is sold or transferred, the Cuatro Villas MDWUA membership goes with the property unless otherwise approved by a majority vote of the Board of Directors. Application for transfer of membership must be submitted to the Cuatro Villas MDWUA Secretary within 90 days of the legal property transfer. In the event the transfer is not requested within 90 days, the new potential Member will have a late fee attached to his/her membership transfer fee up to six months. If the membership is not requested with appropriate documentation at the end of the six-month period, the membership will be terminated.

2. A copy of the Warranty Deed or other proof of transfer of the property in the name of the new owner, the old Water Certificate to be transferred, and the current Transfer Fee will accompany the completed Application for Transfer form.

3. The Member transferring the Water Certificate will be paid up and in good standing with the Association. In the event of default and/or repossession the previous holder of the transferred membership will have all rights and privileges restored upon payment of any fees in arrears.

4. Upon completion of the requirements herein, the Board will take the appropriate action to transfer membership.

5. Anyone without a valid Membership Certificate or proof of membership will not be considered a Member of the Association.

VI. Water Service & Metering Facilities

1. Water service is for the sole use of the Member, agent or tenant and does not permit the transfer of water by any means to another dwelling activity or place of business except as permitted under the User or Commercial definitions.

2. The water service will consist of present or future facilities of the Cuatro Villas MDWUA to supply water at normal operating system pressure to one residence or place of business. Service will be considered available when the Cuatro Villas MDWUA has plans to bring service to an un-served area or when the Association maintains the water supply at normal pressure at the point of delivery for the Member's use, whether or not the Member makes use of it.

3. Any Member with a private water system, such as a well, in addition to an Association connection, will protect the Association's water system by the installation of a backflow prevention device approved for a potential hazard, such as water flow of a private water system into the Association's water system or water flow of the Association's water into the private system. The cost of such a device and installation will be the responsibility of the Member. Connection of a private system to the Cuatro Villas MDWUA system will not be made without Board approval.

4. The Association will make a reasonable effort to supply continuous service, but will have the right to suspend water service for making repairs, connections, extensions or other necessary work. Additionally, loss or reduction of well capacity due to unforeseen circumstances, such as well depletion, reduction in the water table or reduction in water infiltration into the well housing, may lead to disruption of continuous water service. A reasonable effort will be made to notify those Members who may be affected by such interruptions, but the Cuatro Villas MDWUA will not accept responsibility for losses occurring due to necessary and/or accidental interruptions of service or shortage of water.

5. Members who temporarily will be out of their residence or will not be using the dwelling may chose to have the water services temporarily disconnected and pay the deactivation and activation fee. Deactivated Members will pay the monthly minimum charge only.

6. Representatives of the Cuatro Villas MDWUA will have the right to enter the Member’s premises during reasonable hours for the purpose of meter reading, inspection, repair and/or service.

7. Water service will be metered to each individual dwelling or place of business with an approved membership certificate. Several residences/dwellings will not be connected to one meter. Metering facilities are owned by the Association and must be installed by the Association.

8. Tampering with meter facilities is a violation of this Association property thus against Federal Law. Anyone in violation will be penalized by the Board or prosecuted in court. All community drinking water system facilities and operations are regulated by Federal and State laws.

9. Metering facilities will be located at the main line. The hook up fee covers the connection from the main and maintenance of an extension up to a maximum of 25 feet. If the distance from the main line to the Members’ property is greater, the Member agrees to pay any additional connection costs. In special cases, the location will be agreed upon jointly by the Board of Directors and the Member. The Member is responsible for any activity from the meter to the home, including water leaks from the line after the meter, installing a shut off valve, etc.

10. Should the meter location be within the Member’s property, he or she will grant the Association an easement of right-of-way and the right of ingress and egress to said property for the purposes of servicing or removing the metering facilities. Membership certificate will be cancelled for Members who refuse to provide the required easement.

11. All the meters are the property of the Association and are permanently fixed at their respective service locations. Therefore, no meter is transferable from the property that it is intended to serve to any other location. Thus, in the event of the sale, transfer, assignment, lease or conveyance of the subject property by the owner of record, all of the rights to service from the meter that serves the subject property shall automatically be included in the sale, transfer, assignment, lease or conveyance of that property. This also applies to all duly authorized service connections that have inoperable meters or where no meters exist. In the event that a dwelling or place of service is permanently discontinued or eliminated by the owner of record, the Association may, in its sole discretion, elect to either remove the meter or leave the meter to provide service for possible future users.

12. Service meters, where errors do not exceed two (2%) percent fast or slow, will be considered as within the allowable limits of accuracy for billing purposes. Meter testing requested by Members will be performed without cost to the Member, if the meter is found to be off in excess of two (2%) percent. Otherwise, the Member for whom the required testing was made will be charged for the cost of making the test.

13. Meters will be read by the Association by the 3rd week of each month or per schedule set by the Board.

14. The Association is responsible for keeping the area around the meter cleaned at all times. The Member will be charged a fee for these services.

VII. Billing & Collections

1. All annual service fees will be billed by July 1st of each year and will be considered delinquent after August 1st of the same year. After the August 1st date, the Members will be placed on monthly billing and charged the monthly amount for the unpaid months. A late fee will be charged to delinquent accounts.

2. All fees are due and payable in full. 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.

3. The Association will bill the membership between the first and the fifth each month for water services from actual meter readings and/or at the rates set forth on the approved water rate schedule.

4. If a meter cannot be read for 3 consecutive months, the Association shall install a new meter in the public right of way and the Member will be assessed a fee for the cost of relocating the meter. This assessment must be paid within 12 months from the meter relocation. While the meter cannot be read the meter reading will be recorded at a maximum usage of 6,000 gallons per month.

5. Bills for Water Services are due on the 25th of the same month and become overdue on the 1st day of the next month. Payment must be by check or money order only.

6. Overdue accounts are subject to a ten percent (10%) late charge. (This will begin with billings due 4/1/10 and will not apply to current past due amounts.) For current past due amounts in excess of $100, the Member must enter into a Payment Agreement with the Association or disconnect procedures will be enforced (if applicable).

7. Delinquent Accounts, Notification & Disconnection of Services:

a) Members who fail to pay for water services and applicable late fees within two months/billing cycles are considered delinquent and are subject to disconnection procedures. The past due-charge will continue to accumulate until account is brought current.

b) All delinquent Members or Members in violation will be notified by mail or certified mail, at the discretion of the bookkeeper, on or about the first of the month after payment has not been received. The notification will include the amount due, date to comply, and a statement saying, “If payment in full or 50% of the balance due with a signed payment plan is not received by the date to comply water service will be disconnected.”

c) The date to comply shall be the 25th day of the same month the notice is sent to the Member.

d) No further notice will be sent to the delinquent Member. To reinstate services all past due amounts along with the reconnection fee must be paid in full or the Member may pay 50% of the past due amount with the reconnection fee and must enter into a Payment Agreement with the Association for the remaining balance.

e) Delinquent amounts cannot be paid to the person(s) making the disconnection.

8. Negotiating Monthly Payment Schedule (For Members only):

a) To avoid disconnection of services, the Association and the Member may negotiate, through a written Payment Agreement (provided by the Association), a monthly payment schedule for the delinquent amount.

i. The Member needs to keep current on their monthly fee and pay the additional amount as agreed on the “Payment Agreement”;
ii. From the time the Member signs the agreement, the Association will not charge the late fee for the unpaid amount as long as the Member keeps the agreement;
iii. If the Member becomes past due and delinquent there is a breach of contract and the Association will disconnect services. No further notice of disconnect will be given to the delinquent Member.

b) If services are disconnected, the Association and the Member may still negotiate in writing a monthly payment schedule for the delinquent amount. Services will be reinstated provided that all past due amounts along with the reconnection fee must be paid in full or the Member may pay 50% of the past due amount with the reconnection fee and must enter into a Payment Agreement with the Association for the remaining balance.

9. The Member shall pay the above charges with a certified bank check or money order.

10. Cancellation of Membership:

a) If a Member is delinquent for twenty-four (24) months after non-payment, the membership in the Association will be considered in default and shall be canceled, the meter should one exists will be removed and/or the line will be capped.

b) All delinquent Members having their membership cancelled will be notified by mail or certified mail at the discretion of the Bookkeeper. To the extent possible to avoid higher expenditures the Association will use regular mail.

c) The notification will include the amount due and will provide a date to comply. The date to comply shall not be less than twenty-five (25) days from the date the notice is sent to the Member.

d) Failure to comply by the 1st of the following month of the notice will result in loss of membership. After that date a request for membership will be subject to membership eligibility and payment of current new membership fees as defined in the Bylaws and Rules and Regulations of the Association. (Memberships may not be available.)

i. Persons who applied and paid a membership during the initial membership drive (2000) and failed to keep their membership compliant with all Bylaws and Rules and Regulations of the Association, will be credited their original membership payment toward a new membership fee. (Proof of initial membership payment will be required.)

e) In the event that the membership is canceled by the Association, a copy of the Board minutes and of the notice of cancellation sent to the Member must be kept in the Association files.

f) The Association will close the account. If no payment is received, the Association will collect any amount due to the Association by following the Association’s Collections procedures.

11. Collections:

The Association has the responsibility and the authority within state law to take all action necessary to collect the arrears through a collections agency and/or a lien on the property. Should this occur, the Member will be responsible for all collection, legal and court costs, attorney fees and any fees not mentioned that are required to collect the money owed.

12. Rental Property Billing Rules:

The membership is between the property owner and the Association. The Member landlord will keep the service in their name and is responsible for payment for water use and costs of service. All billing and collection rules apply.

VIII. Fees & Rate Schedule (Effective 4/1/16)

The fee schedule and water rates herein will be reviewed by the Board on an annual basis and are subject to change if sufficient income is not being generated to cover the Association's anticipated expenses.

1. New Mexico Gross Receipts Tax will be added where applicable.

2. New Membership Fee (includes hookup):
*Commercial rates are effective 10/1/2012

Residential and Commercial Membership Fees
Residential and Secondary	$3,000
Commercial Meter Size	Commercial Membership Fee
5/8”-3/4”	$3,000
1" - 1½"	$4,000
2" - 3"	$$6,835
4"	$16,742
6"	$28,727
8"	$83,135
10"	$116,792

3. Water Rights Fee or Water Rights Transfer: $750.00 – Residential & Secondary
(Commercial and Non-Profit will be determined on a case by case basis.)

_______(Due if no domestic well or surface water rights exist on the property.).282 acre feet of surface (irrigation) or .25 acre feet of ground (well) water rights transfer –

Residential & Secondary
(Due if domestic well or surface water rights exist on the property.)

4. Application/Transfer Fee: $50.00

5. Late Membership Transfer Fee: $50.00/month - after 90 days from date of transfer

6. Change of Status Fee (Activation & Deactivation): $50.00

7. Overdue Amounts Late Charge: 10% of the unpaid amount (after 4/1/10)

8. Meter Relocation Fee: $250.00 administrative fee + full cost of relocation

9. Disconnect/Reconnect Fee: $75.00 (each service)

10. Meter Removal Fee: $75.00 minimum up to the full cost of meter removal

11. Non-Sufficient Fund (returned check) Fee: $40.00

12. Membership and Water Rates:

Non-User Member:
Monthly Fee: $10.00 (bill sent monthly if not paid annually)
Annual Fee: $80=$6.67/mo (must be paid by August 1st each year)

User Member:
Residential Monthly Base Service Rate: $14.00
Residential Monthly Meter Maintenance Fee: $ 4.00

Monthly Commercial Meter Base Rates
Commercial Meter Size	Commercial Monthly Base Rate
¾"	$35.15
1"	$49.94
1½"	$79.53
2"	$242.29
3"	$287.11
4"	$467.22
6"	$555.09
8"	$735.18
Commercial Rates are effective 10/12/2012

IX. Water Conservation and Drought Management

1. Every effort will be made by the Cuatro Villas MDWUA to have an adequate supply of water for all users, but due to the forces of nature the Cuatro Villas MDWUA cannot ensure an unlimited supply. In the event of an emergency or water shortage the Board has the right to restrict water usage in any manner that will ensure an equitable availability of water to all users.

2. Water is permitted only for domestic use. Due to the nature of the system, water for irrigation and the washing of cars and trucks is prohibited.

X. Customer Service & Bill Adjustments

1. All Member comments, complaints or suggestions must be addressed to the Board. The Member should file a complaint about a bill within thirty (30) days of the date of the bill.

2. When the Association receives Member complaints about a balance on an account or a discrepancy, the Association Bookkeeper will first research the account to determine the nature of the discrepancy and resolve it or bring it to the Board for resolution.

3. Overpayments will be applied toward future billings. In cases where the account is being closed and the membership canceled, the overpayment may be refunded to the Member only if an outstanding balance does not exist.

4. Adjustments Due to Leaks on Member (s) Property:

The Board may consider adjustment of the water bill when a Member experiences an unusually high water bill due to a break in their service line or a leak in their house/business under the following conditions:

a) The Member reports the damage or leak to the Association as soon as detected and the water service is terminated by the Association until the damage/leak is repaired;

b) The Board detects the leak, notifies the Member and the Member takes all steps to repair the leak. The water service is terminated by the Association until the damage/leak is repaired.

Adjustments:

a) The Association will bill the Members’ average water bill (average from the past three months);

b) Subsequent leaks in the same dwelling will be charged at the actual amount water used.

5. The Member who has had an action taken against them by the Board will have the right of appeal to the Cuatro Villas MDWUA membership at large, either by mail-in appeal or at the next regular annual meeting. All costs associated with such an appeal will be the responsibility of the Member.

6. Should a Member lose the appeal, they may re-apply for membership one year after the final action by the Board.

XI. Installation, Maintenance & Repairs

1. The Cuatro Villas MDWUA is responsible for the maintenance and integrity of the main line(s), extensions for service supply and meters. All other lines beyond the meter or extensions will be the responsibility of the Member.

2. Installations requiring Cuatro Villas MDWUA line extensions will require approval by the Board and meet the Association's specifications. All costs will be the responsibility of the Member requesting the extension. Line extensions will become the property of the Association when installed.

3. New Members requiring service line extensions, installation and meters will require approval by the Board and meet the Association's specifications. All costs with the exception of the meter, meter can and shut off valve will be the responsibility of the Member requesting such service. Line extensions and/or lateral lines will become the property of the Association when installed. Each service connection must have its own membership certificate.

4. New installations will include Cuatro Villas MDWUA approved: (a) meter can; (b) ¾” meter; (c) shut off valve.

5. Only appropriately New Mexico licensed and insured contractors will make connections to the Cuatro Villas MDWUA system. A copy of a contractor's license and a certificate of insurance will accompany the request for installation.

6. Except in emergencies, all water system work will be approved by the Board and a work order will be issued before any maintenance is performed. The Board will not assume responsibility for payment of a bill without a work order number attached. Members needing maintenance or repair to the system may contact any Board Member.

7. It is the policy of the Association that Members of the Association or their companies may not charge or invoice the Association for providing their services to assist in resolution of operational or management problems faced by the Association. The Association may reimburse any Member for costs of materials or supplies provided to the Association. The reason for this policy is that this is a "Mutual Domestic Association” and each Member has a stake in the proper performance of operations and management of the Association and the contribution of any Member is for the betterment of the Association and the community. This policy does not preclude the Association from contracting with any Member for services that are in line with their normal area of expertise.

8. In a situation where a “new” hook-up is requested to an existing line – where a Member invested in the cost of installing the line – the new hook-up must resolve any claims for reimbursement to the Member for a proportional amount of the cost to run the water line, the Association will not interfere in this process. Additionally, the new hookup is subject to approval by the Association after verification of no adverse impact of the new hookup on existing connection(s) or objections by the Member.

XII. Contractor/Employee Policies and Reimbursement

1. It is the policy of this Association to assure that all prospective contractor/employment applicants and contractors/employees are treated equally with regard to consideration for contract/employment opportunities, hiring, recruiting, promotions, compensation, benefits, training, demotion, termination or layoffs, or other similar matters.

2. The Association hereby declares that it will not discriminate in the matters listed above on the basis of race, religious beliefs, sex, color, national origin, age, veteran status or disability status.

3. This Association will require that all of its contractors/employees be drug and alcohol free whenever they are performing work duties during their assigned working hours and the work is being performed on the premises of the Association or in the field within the Association water area. This policy does not apply to any social functions attended, meetings, programs, off-work premises function, or after work hours functions held on the premises or Association water area. The term “premises” is defined to mean the Association business office, well pump house, well sites, tanks, sewer lagoons, and property owned by the Association.

4. Contractors/Employees performing work involving the use of heavy or dangerous equipment may be requested to perform a random drug or alcohol test at the option of the Association. The use of heavy or dangerous equipment while on drugs or alcohol is a hazard not only to the contractor/employee but to other persons within the immediate area. Damage to property could also occur.

5. Contractors/Employees suspected of being on drugs or alcohol will be promptly informed of the suspicion by the Association representative or by any Director of the Board. The contractor/employee may be required to take an alcohol and drug test to be paid for at the expense of the Association. Contractors/Employees on drugs or alcohol may be requested to leave the premises immediately until the next working day. The incident will be reported to the President of the Association and the Board of Directors. The contractor’s/employee’s file records will be documented.

6. Repeated offenses of drug or alcohol use while on work status may be grounds for reprimand, suspension, or else termination of contract/employment. The Board of Directors will decide upon the appropriate course of action. Any actions taken by the board will be communicated to the contractor/employee and the contractor/employee will have the right to present his/her case if he or she desires to do so.

7. All prospective contractors/employees seeking employment with the Association may be required to take a preliminary drug and alcohol test as a condition of their employment, which is to be paid for by the Association. The decision to perform the test is at the option of the Association. Having found a prospective contractor/employee tested positive for drugs or alcohol may be ground to not grant contract/employment.

8. Contractors/Employees, agents, and Board Members of this Association are eligible to receive reimbursement for certain types of expenses that are incurred for the purpose of carrying on official duties. Expenses require prior approval from the Board. Final approval for reimbursement will be documented by attaching supporting documentation. Commuting expense between home and the contractor’s/employee’s or Board Member’s personal residence is not eligible for reimbursement.

a) All contractors/employees or Board Members using a private vehicle in the discharge of their duties will be reimbursed at the state’s designated rate per mile. The mileage rate will be paid in addition to the contractor’s/employee’s compensation. All contractors/employees and/or Board Member will be required to keep a log of the total actual mileage traveled, the purpose of the trip, and the date of the trip;

b) Travel involving airlines, airport parking, cab fares, etc. must be pre-approved by the Board and will be reimbursed at the actual rate. Receipts must be presented. Per Diem will be paid according to New Mexico rates. The purpose of per diem is to reimburse a contractor/employee and the Board Members for meals, overnight hotel, and related expenses;

c) To be eligible for reimbursement of expenses, these expenses must be reasonable and the contractor/employee and/or Board Member must attempt to be as thrifty as possible under the circumstances involved. Lavish expenditures will not be allowed;

d) Entertainment expenses incurred will not normally be reimbursable. Special exception could be made upon the Board’s approval.

9. Operating expense reimbursement will be provided for contractors/employees and Board Members incurring expense for postage, purchasing office supplies, office equipment, or other similar business expenses. Such expenses must be pre approved in advance by the President or the Treasurer of the Association if the cost is $100.00 or less and by the Board of Directors if the cost exceeds this amount. Such expenditures must be backed by a receipt.

10. Special exception for pre-approval may be waived whenever the circumstance is considered to be an emergency. In this case two Board Members may orally pre approve the expense.

11. All contractors/employees of the Association will be paid within 20 days after they have presented an invoice/work order. The invoice/work order must be signed by each contractor/employee and/or Board Member.

12. Each contractor/employee or agent of the Association must have a job description approved by the Board.

13. The Board may hold a contractor/employee evaluation prior to approving any change in compensation. Evaluations may be verbal or written.

XIII. Fiscal Matters

1. The Board shall have bank accounts established in the name of the Association. The Board shall determine which of the officers will be authorized to sign checks and to conduct financial transaction on behalf of the Association.

2. This Association shall be subject to audits as mandated under the Audit Act, 12-6-1 NMSA, 1978 et seq. and OMB Circular 133 when required.

3. The Association shall prepare an annual operating budget at the beginning of each fiscal year. The budget should be realistic and consider historical data as well as inflationary factors.

4. In order to ensure compliance with all federal and state laws and the New Mexico Procurement Code, all purchases of supplies, materials, equipment and contractual services for the Association shall be made in accordance with these procedures. Any purchases in the amount of $100.00 or more must be pre approved by the Board.

5. The Association will maintain reserve funds as mandated by funders or state and federal laws or guidelines. The Board shall maintain reserve funds for emergencies at the cost of at least the replacement of the well pump and to fix a major leak that can potentially leave the community without water.

XIV. BOARD MEETINGS

1. Annually, the Board of Directors shall approve an Open Meetings Act resolution as required by the Open Meetings Act. The resolution shall state how and when the Board will conduct meetings to attend the business of the Association.

2. Board Members and/or requested contractors need to contact the President, Vice-President or Secretary if he or she cannot attend a meeting.

3. It is the responsibility of each Member to keep informed about the business conducted at the meetings of the Board and any other meetings pertaining to the business of the Association. The Secretary or Guardian/Custodian of Records will keep records and will be the main contact to provide or send information.

4. Each Board Member must come to the meetings prepared and respect all Members of the Board.

COMPLIANCE WITH THESE RULES AND REGULATIONS

Each Board Member, agent, contractor/employee of this Association is expected to fully enforce these Rules and Regulations without further approval of the Board.

Board authority to approve and enforce these Rules and Regulations comes from the provisions of the State of New Mexico Sanitary Projects Act [3-29-1 to 3-29-19 NMSA 1978].

These Rules and Regulations were amended by resolution of the Board on 04/29/2015.

After theses rules have been adopted a copy will be made available to each Member of the Association.

We the undersigned below Secretary and President of the Cuatro Villas MDWUA, an Association existing under the laws of the State of New Mexico, hereby certify that the foregoing is a true and correct copy of the Rules and Regulations, together with all amendments thereto, as of this 29th day of April 2015, which were duly adopted by vote of the membership on 03/21/2015.

Cuatro Villas MDWUA Rules and Regulations

Table of Contents