Final Draft

My meeting with NMED Secretary Kenney was turned into a conference call because of the health emergency restrictions.  Others on the call were Judi Kahl (Chief, Construction Programs Bureau), Rebecca Rouse (Water Wastewater Programs Division Director - Judi works for her), and David Bishop (Judi's assistant).  Bill Conner, John Jones and Kathy Elliot with New Mexico Rural Water sat in, as did Evan Williams with Cog and Diane Nunez.  The purpose of the call was to discuss the Secretary Kenney's idea about trying to forgive the water loan and get funding to complete the wastewater plant.  We layed it out as follows:

1) loan forgiveness for the 287k For arsenic well water project

2) 400k for financial gap in completion of sewer plant

3) direction/suggestions /solutions or some sort of plan on how to address the accounting/technical management of project for BWSD

4) “this ties into all of above in my mind “the need for additional technical support and training that Diane brings to the table as a solution as we also ask for additional funding for NMRWA where as I will point out that Nmev choice of 1/5 % of administering the funds is in my opinion is inadequate and I believe we can work together in addressing this issues by using additional funds from the 5% available through the CWSRF administrating fund. I’m contemplating how to present my case or thoughts as to how they could choose to increase that amount and include additional training for pws, engineers, CPA’s in addition to organizations like NMRWA

As it turns out, since the water loan was issued by NM Finance Authority, the NMED has no authority to take any action on it - we'll need to talk to NMFA and I'm working on that.  NMED has resource control of our wastewater funding, and this summary chart lays it out:

Loan

Grant

Grant %

Loan Disbursed

Grant Disbursed

Balance

CWSRF 079 (0.6% interest rate)

$121,586

$560,000

82%

$0

$0

$681,586

RIP 00015

$14,724

$279,758

95%

$14,724

$183,831.41

$95,926.59 All Grant

RIP 00018

$10,000

$500,000

98%

$0

$0

$510,000

Capital Outlay 2020 (W/WW)

$127,527

100%

$127,527

Capital Outlay 2020

(WW)

$100,000

100%

$100,000

Total

$146,310

$1,567,285

91.5%

 It highlights that we've received funding for design (highlighted in green) and Judi Kahl pointed out that 95% of that funding line was grant.  The CWSRF 079 and RIP 00018 loans have been approved but we haven't drawn down any of that money as yet and over a million dollars of those allocations are grants - the loan to be repaid on that funding totals $131,586.  The chart also shows the capital outlay we've received, and we discovered during the call that we (the Board of Directors) has control on where that money goes in the wastewater plant.

To obtain funding additional needs are as followed.

A)training on how to structure and train pws boards managerial systems to efficiently and adequately allocate the funding received and review work accomplished (we are volunteers not experienced project managers)

B)additional funding for nmrwa who can foresee problems and make financial savings suggestions “in good faith” for pws throughout NM.

C) adequate training for CPA’s Engineers and managerial position

 The issues or topics above were what we discussed in this meeting and some of these issues (Additional Training and the program Diane had presented earlier to James Kenney )were tabled due to Kenney’s absence as he was held up in another meeting and time allotted to this meeting set for an hour and was extended 20 additional minutes. 

I will provide a bullet list of concerns and recommendations brought up in the conference call as listed below.  Keep in mind all the time and energy that is spent on BWSD is exceptional and is much appreciated for all the attention and dedicated efforts by all parties involved. 

        * Judi Kahl opined, given our current situation, that we may not longer be qualified to receive the CWSRF loan and the RIP 00018 loan - and we need to work with them on that (loss of customer base, lack of managerial and financial capacity).  We also need to check the requirements for compliance with the loan we got for design and document that we're are fully complying.  

        * NMENV recommends we meet with them as soon as possible to discuss our options and proceed in making those adjustments as they formulate a letter to BWSD addressing these issues

Evan Williams from COG suggested we use the Capital out Lay we received  in the amount of $226,000.00  and redirect it to make up  the difference so that we can qualify and continue in good standing with the CWSRF Loan programs so that we can succeed in completing the WWTP in order to stay in compliance with the State of New Mexico.  

Judy will work with us in setting up a time to meet with (DFA) New Mexico Department Of Financing Authority  in coordination with NMRWA in asking for additional funds in form or grant in the amount or 400k gap funding for sewer plant and 287k for loan forgiveness but that will need to be discussed in upcoming meeting with NMENV in further detail.  Dfa actions most likely will not be expendable enough to deal with the issue of evaluation of December 2019 Aup Finacle Report.

Fees and penalties may be applicable in accordance with terms and policies with the Loan agreements BWSD signed and agreed to at the beginning of the agreement. 

I brought up the lack of training capabilities  in all departments due to the lack of personnel and funding  for these  organizations and agencies. I encouraged them to increase the funding  so that they could be in a position to better train PWS how to stay in compliance with the state's unfunded mandates and regulations. .  

                                                                                                                                                                                                      There is more to list above. I feel  the need to get this out to everyone as quickly and urgently as I am able,  so that we can address these critical issues.  I have a few recommendations at this point that both involve reaching out to Diane Nunez for her skill set ,  experience and knowledge in this manner.  BWSD Board of 

Directors need to URGENTLY do  whatever it takes to receive Diane’s services. The board had tasked me to head this project and I have tirelessly reached out to everyone possible.  I have exhausted all other potential avenues and have discovered if we try to proceed without someone without the skill sets  like Diane's Nunes we will fail as many other communities have failed in this very same process we have taken up and tried to succeed in .  BWSD will not be the first community to fail and under New Mexico current Policies, we will not be the last if we don't get our ducks in a row. “This in a sense is what Dian and I were working on correcting in the last Legislative session concerning additional funding and programs for training”.  

I want to apologize for not adequately conveying the message to the BWSD board of  directors earlier on as we responded to Diane’s resignation.  I feel our hearts are in the right place but the unknown can be very uncertain and discouraging.  I in part blame, the state of  New Mexico’s policies, procedures and mandated laws for the position we are in now as they require much and inadequately provide the tools and resources needed to achieve what they demand.  I urge us all not to let the mandates of the state become between us and set us apart due to their inabilities and inadequacies in following through with their goals, agendas and policies.  We may have to make moves and take actions  we are not comfortable with but for the betterment of our community I am willing to step down and resign as a member of  the board of directors if needed. I hope you all will be willing to do the same.  We can not allow for a government body to come into our community and demand we address issues they mandate in accordance with federal and state laws and then make demands only to not have a clear and feasible plan created to succeed but destined to fail on the backs of the people of our community. We have from the beginning of our efforts  in trusting the Government's initiatives  signed and agreed to terms within a Loan/Grant agreement that is binding by court of law.  We need to take action now to correct our path so that we may be able to achieve what we had set out to do from the beginning as we led our community into having to increase their rates 300%.,   We can not let the  burdens carried by our community be in vain .  We can not allow our PWS to fail because of the inadequacy and inabilities of  New Mexico state  organizations and agencies failed policies.  We can not allow our PWS to fail because of  a disagreement with someones ‘whom we trusted for over seven years to lead us thus far” professional recommendation.    We as a board and those currently in managerial positions  do not have the knowledge, skill sets or experience that Diane’s has and all New Mexico’s State Agencies and organizations as pointed out in my documents thatI have shared with you via google doc’s are currently running at their fullest capacity and are found to be understaffed and underfunded.  Diane’s Nunez is at this time our best resource and without her services  I fear all progress will come to a screeching Halt.  

Urgent Options :

Employ a Certified Public Accountant and get our finances in order and take actions to request Diane’s help so that we can position ourselves to meet the requirements of the state to proceed in obtaining funds from the Clean Water State Revolving Fund and be in compliance.

Employ a Certified Public Accountant and get our finances in order to take actions against the state for damages sustained as BWSD under the direction of New Mexico State Agencies and Organizations to  carries out the policies of New Mexico in requiring us to comply to their rules ,regulations , policy procedures and ultimately NMENV and the State of New Mexico’s plan set for us to Fail.

The workload ahead is heavy ( I personally have invested thousands of dollars and months of my time)and I am not capable of taking on much more of the workload as we all know going forward with the circumstances at hand there is not anyone on the Board  that can fully take on what is expected of BWSD to carry, as Diane’s has carried us thus far and we need to follow her directions or fail.  Because we are not able at this time or in the times previous to this day to receive all the training and knowledge required to carry this project out in the amount of time we have to do it which is now I recommend the President to evaluate the whole situation and ultimately Call Diane and work out the Details.