Minutes February 16, 2004

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=125 BGCOLOR="#996699" TEXT="#080000" bgproperties="fixed" background="1da467d1erlcll.gif"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>Cornerstones Municipal Utility District</B></FONT><B>     </B><B>|     </B><A HREF="index.htm" TARGET="_top" TITLE="Cornerstones Municipal Utility District"><U><B>home</B></U></A></div> <div> back to<B>  </B><A HREF="id27.htm" TARGET="_top" TITLE="Archived Minutes"><U><B>Archived Minutes</B></U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=190 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <A HREF="id190.htm" TARGET="_top" TITLE="Minutes January 19, 2004"><U>Minutes January 19, 2004</U></A></div> <div> <B>Minutes February 16, 2004</B></div> <div> <A HREF="id197.htm" TARGET="_top" TITLE="Minutes March 15, 2004"><U>Minutes March 15, 2004</U></A></div> <div> <A HREF="id199.htm" TARGET="_top" 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Harris County, Texas at 7:00 p.m. on February 16, 2004, in accordance with the duly posted notice of said meeting, with a quorum of directors present as follows:</div> <bR> <div>                Tony Garza, President</div> <div>                Gary Hughes, Vice President</div> <div>                E.C. Norris, Secretary</div> <div>                John Irwin, Assistant Secretary</div> <div>                Darryl Box, Investment Officer</div> <bR> <div> And being absent</div> <bR> <div>                None</div> <bR> <div>      </div> <div> Also present were Kathie Naumow - Recording Secretary, Mary Jarmon of Myrtle Cruz, Inc., Dusty Lane of Eco-Resources, Inc., Marvin Zahradnik of Landev Engineers, Inc., Mark Brooks of Young & Brooks, and Carl Sandlin of Perdue, Brandon, Fielder, Collins & Mott, L.L.P.</div> <bR> <div> The President called the meeting to order and declared it open for such business as might come before it.</div> <bR> <div> <B><U>APPROVAL OF MINUTES</U></B></div> <bR> <div>      After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the January 2004 board meeting were approved as presented.</div> <bR> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div>      <FONT SIZE="3" COLOR="#000000" FACE="Arial" >None</FONT></div> <bR> <div> <B><U>CONSIDER AND POSSIBLY AUTHORIZE CHALLENGE TO HCAD DECISION ALLOWING MULTIPLE HOMESTEAD EXEMPTIONS</U></B></div> <bR> <div>      Carl Sandlin informed board that the request for removal of exemption was denied by appraisal board on case involving property at 1723 Cornerstone Place Dr.    After discussion and unanimous vote, the Board authorized letter to be sent requesting payment or utilities will be turned off.  Also informed the Board that the Gemcraft lot should be foreclosed on in approximately five months.</div> <bR> <div> <B><U>ESTABLISH TAX EXEMPTIONS AND ADOPT TAX COLLECTION PENALTY</U></B></div> <bR> <div>      Tax exemptions tabled for discussion with Jan next month.   </div> <bR> <div>  Discussed tax collection penalty - if not paid by July attach a 20% penalty and interest charge.  After discussion and upon motion duly made, seconded and unanimously carried, the Board approved the Tax Collection Penalty.</div> <bR> <div> <B><U>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Bob Leared of Bob Leared Interests, Inc., the District's tax assessor, reported as to the status of District's tax collections.  Taxes Receivable 8/31/2003: $39,272.72, adjustments $6,904.31 total $46,177.03.  Original 2003 Tax Levy: $1,181,410.10, adjustments $59,528.00, total $1,240,938.10.  Total Taxes Receivable: 1,287,115.13.  Prior years taxes collected $7,555.03, 2003 taxes collected $1,174,385.23, Total $1,181,940.26.  Taxes Receivable at 1/31/2004: $105,174.87.  2003 Receivables: Debt Service $49,249.12, Maintenance $17,303.75.  Month of January 2004: beginning cash balance $716,557.10, total receipts $390,878.61, total disbursements $697,935.77, cash balance at 1/31/2004 $409,499.94.  Total Disbursements for month of February 2004 $378,625.25, remaining cash balance $30,874.69.  The district is 99.257% collected for 2001 taxes, 99.198% for 2002 taxes and 94.637% for 2003 taxes.  Provided tax map to board and reported 1,273 people used the credit card option to pay taxes.  Upon motion duly made, seconded and unanimously carried, the board approved the tax assessor/collector's report and payment of the tax bills presented.</div> <bR> <div> <B><U>OPERATOR'S REPORT</U></B></div> <bR> <div> Dusty Lane of Eco-Resources, Inc., the District's operator, reported as to District operations and facilities and presented the January 2004 Operations Report.  Total connections for January 2004 were 1485.  New taps for January - 0; Sewer inspections completed - 0; Builder Inspections completed - 0; Customer Service inspections completed - 0; Net Rental Meter Change +1. The required 7 samples were taken during 1/2004.  Water production: Pumped 14,162,000 at Water Plant #1, Total supplied - 14,162,000, Daily Average - 456,838.  Subsidence Information: Estimated number of months available - 1.7, Permit months remaining - 0, Percent of permitted production - 87.21.  Water Accountability is at 94% Year to Date.  Total Operations Charges $10,654.28.  Total Current billing  $50,422.86.  Total Aged Receivables $12,586.60.  Total Accounts Receivables $63,009.46.  Facility Checklist completed: Water Plant #1 on 1/15/2004.  Inspections Completed: Fire Hydrants on 11/26/2003.  Total Deposits for January 2004 $47,581.85.  Disconnects/Reconnects income: $275.00.  Pull Fees: $140.00.  Provided Discharge Monitoring Report, number exceeded all zero.  Reported on repairs made and also presented the board with a copy of the Cornerstones M.U.D. Delinquent list.   Received letter from 1422 Shadow Mountain stating meter hasn't been read.  Usage seems to be about the same as previous year.  Meter was changed out in 1998.  Dusty will respond to letter and attach rate order.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report.</div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin Zahradnik presented the Engineers Report.  Received request from Komar for water & sewer.  Plans have not been received.  Received plans from New Quest and Pei Wei - rejected because they do not correspond with New Quest plans for sanitary lines.  County looked at sinkhole in greenbelt and indicated it is in the district boundaries and outside Harris County Flood Control.  Authorized Marvin to investigate and get proper survey and topography.  Dusty will have Chris get with Marvin.  Motion was made, seconded and unanimously carried to make Tony the contact person on this, with authority to approve proposals for the work.</div> <div>  </div> <div> Upon motion duly made, seconded and unanimously carried, the board approved the Engineers report.</div> <bR> <div> <B><U>BOOKKEEPER'S REPORT</U></B></div> <bR> <div> Mary Jarmon of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report.  Debt service funds available February 16, 2004 - $3,625,579.98.  Total Debt Service Requirements for 2004: $1,371,182.50.  Capital projects funds available February 16, 2004 - $360,927.71.  General Operating: Previous cash balance January 19, 2004 - $1,940.80, total deposits $54,624.21, beginning cash balance February 16, 2004 - $47,608.35.  General Operating Funds available February 16, 2004 - $1,292,451.92.  Included copy of budget for fiscal year ending September 30, 2004, Investment Report and Tex Pool Performance sheet.  Upon motion duly made, seconded and unanimously carried, the board approved the Bookkeepers monthly report.  After discussion, upon motion duly made, seconded and unanimously carried, the board approved said bills and ordered checks issued on the appropriate District accounts in payment thereof.  Presented depository pledge agreement for Southern National to get a better interest rate on money.  Motion duly made, seconded and unanimously carried to sign depository pledge agreement.  </div> <bR> <div> <B><U>CONDUCT HEARING ON TERMINATION OF UTILITY SERVICE </U></B></div> <bR> <div> The board conducted a hearing on the termination of utility service.  The operator presented a list of delinquent utility accounts that were delinquent by more than 60 days and reported that the customers have been given written notice 10 days prior to this meeting and the opportunity to appear before the board of directors to explain, contest or correct the utility service bill and to show reason why the utility service should not be terminated for nonpayment.  None of the customers on the list were present or have presented any statement on the matter.  After discussion, upon motion duly made, seconded and unanimously carried, the board authorized the operator to terminate utility service to the unpaid accounts in accordance with standard procedures.</div> <bR> <div> <B><U>CONSIDER AND POSSIBLY APPROVE PROPOSAL FOR 5-YEAR ARBITRAGE REBATE COMPLIANCE CALCULATION IN CONNECTION WITH SERIES 1994 BOND ISSUE</U></B></div> <bR> <div>      Required to have CPA to perform 5-year arbitrage rebate compliance calculation, reviewing yield vs. bonds.  Proposals received from groups that specialize to do this.  Deloite and Touche minimum, cost $3500 - $4500.  Arbitrary Compliance Specialist out of Colorado charge $2850 flat fee.  They will charge extra if you have commingled funds.  Looking at approximately $500 - $700 extra.  1994 bonds have 2 payments remaining.  After discussion and upon motion duly made, seconded and unanimously carried, the board authorized using Arbitrary Compliance Specialists. </div> <bR> <div> <B><U>APPROVE OFFICIALS FOR PENDING DIRECTORS ELECTION </U></B></div> <bR> <div>      Have set up for Chesterfield Clubhouse for location to hold elections.  $10.00 per hour for election officials.  Reserve amount $50.00 per person if election is cancelled.  Need 2-4 for election day and 1 for early voting.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO REQUEST REGARDING EXTENSION OF SIDEWALKS </U></B></div> <bR> <div>       Tony waiting on bids and will send to board once received.  Guessing $4200 at $250 per sq. foot.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND </U></B></div> <bR> <div>            Tony met with Creekstone HOA regarding triangle lot.  If property is conveyed to them they agree to do improvements if MUD provides sidewalks.  The MUD can convey property at FMV and the MUD can determine and set the value.  Mark will draft agreement to HOA giving them 4-5 years to make improvements and restrict property to park use only.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Chip Norris relayed information that Nottingham is currently working on ground water system for water in greenbelts.  Fort Bend County is gearing up for Fort Bend Water Authority.</div> <bR> <div>      </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned.</div> <bR> <div>                                                                     _______________________________</div> <div>                                                                     Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>