Minutes May 17, 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> <A HREF="id196.htm" TARGET="_top" TITLE="Minutes February 16, 2004"><U>Minutes February 16, 2004</U></A></div> <div> <A HREF="id197.htm" TARGET="_top" TITLE="Minutes March 15, 2004"><U>Minutes 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2010"><U>Minutes July 19, 2010</U></A></div> <DIV ALIGN="LEFT"></DIV> <div> <B><IMG SRC="21f46600.gif" border=0 width="70" height="96" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></div> </td> <td valign="top" height=355 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> L UTILITY DISTRICT</div> <DIV ALIGN="LEFT"></DIV> <div> <B>CORNERSTONES MUNICIPAL UTILITY DISTRICT</B></div> <div>  Minutes of Meeting of Board of Directors</div> <div> May 17, 2004</div> <bR> <bR> <div>      The Board of Directors of Cornerstones Municipal Utility District (the “District”) met at 805 Hidden Canyon, Katy, Harris County, Texas at 7:00 p.m. on May 17, 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> <div> And being absent:</div> <div>             None</div> <div> Also present were Kathie Naumow - Recording Secretary, Bill Russell and Terry Holland of Myrtle Cruz, Inc., Dusty Lane and Tony Cole of Eco-Resources, Inc., Marvin Zahradnik of Landev Engineers, Inc., Mark Brooks of Young & Brooks, Doug Konopka of Cinco, LTD., John Elder of Legacy Group and resident Bryan Yonan,</div> <div> The President called the meeting to order and declared it open for such business as might come before it.</div> <div> <B>APPROVAL OF MINUTES</B></div> <div>      After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the April 19, 2004 board meeting were approved as presented.</div> <div> <B>QUESTIONS/COMMENTS FROM THE PUBLIC</B></div> <div> No questions from the public. </div> <bR> <div> <B>TAX ASSESSOR/COLLECTOR'S REPORT</B></div> <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 $6,253.27 total $45,525.99.  Original 2003 Tax Levy: $1,181,410.10, adjustments $61,416.40, total $1,242,826.50.  Total Taxes Receivable: 1,288,352.49.  Prior years taxes collected $10,073.12, 2003 taxes collected $1,213,380.35, Total $1,223,453.47.  Taxes Receivable at 4/30/2004: $64,899.02.  2003 Receivables: Debt Service $21,790.15, Maintenance $7,656.00.  Month of April 2004: beginning cash balance $49,600.00, total receipts $11,037.97, total disbursements $28785.04, cash balance at 4/30/2004 $31,852.93.  Total Disbursements for month of May 2004 $5,143.68, remaining cash balance $26,709.25.  The district is 99.276% collected for 2001 taxes, 99.360% for 2002 taxes and 97.631% for 2003 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.  Bob also informed the board delinquent notices will be mailed out this month with penalty added.  Also stated he may have preliminary values next month.</div> <div>      Mark Brooks talked to Carl Sandin regarding Yonan Case.  Carl is currently working with Greg Goodrum, attorney for Mrs. Yonan, on this case with the possibility of a resolution next month.</div> <bR> <div> <B>OPERATOR'S REPORT</B></div> <div> Dusty Lane of Eco-Resources, Inc., the District's operator, reported as to District operations and facilities and presented the April 2004 Operations Report.  Total connections for April 2004 were 1487.  New taps for Mar 14 - Apr 13:  New taps Installed - 0; Sewer inspections completed - 1; Builder Inspections completed - 0; Customer Service inspections completed - 1; Net Rental Meter Change - 0. The required 7 samples were taken during 4/2004.  Water production: Pumped 18,249,000 at Water Plant #1, Total supplied - 18,249,000, Daily Average - 608,300.  Subsidence Information: Estimated number of months available - 16.6, Permit months remaining - 8, Percent of permitted production - 19.41.  Water Accountability is at 94% Year to Date.  Total Operations Charges $13,821.31.  Total Current billing  $49,401.55.  Total Aged Receivables $10,723.67.  Total Accounts Receivables $60,125.22.  Facility Checklist completed: Water Plant #1 on 4/26/2004.  Inspections Completed: Fire Hydrants on 11/26/2003.  Total Deposits for April 2004 $48,240.66.  Disconnects/Reconnects income: $100.00.  Pull Fees: $0.00.  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.   </div> <bR> <div> One customer request this month for pool fill adjustment.  Checked Bubbles Car Wash, meter is fine.  Running a 3 month average and will monitor usage.  TV'ing Cinco trunk line which is a 33 inch sanitary sewer line.  Recommends dye test for sinkhole in greenbelt.  John Irwin requested Dusty to check  the meter  for possible leak located on the 4th esplanade west from Mason Road. </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report.</div> <bR> <div> <B>ENGINEER'S REPORT</B></div> <div> Marvin Zahradnik presented the Engineers Report.  No new requests or plans received for water and sewer.    Met with James Middleton with Harris County Flood Control and walked the greenbelt.  Agreed that swales need to be cleaned out and pipes are crushed and will need to be repaired.  Mr. Middleton took info back to his boss and is waiting for decision.  Marvin will stay in contact with Mr. Middleton for resolution to problem.</div> <div> Upon motion duly made, seconded and unanimously carried, the board approved the Engineers report.</div> <div> <B>BOOKKEEPER'S REPORT</B></div> <div> Bill Russell of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report.  Debt service funds available May 17, 2004 - $3,485,848.65.  Total Debt Service Requirements for 2004: $1,371,182.50.  Capital projects funds available May 17, 2004 - $361,087.93.  General Operating: Previous cash balance April 19, 2004 - $2,567.25, total deposits $47,892.53, beginning cash balance May 17, 2004 - $50,216.86.  General Operating Funds available May 17, 2004 - $1,306,526.32.  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.   </div> <bR> <div>      John Elder with Legacy Group presented report on the electrical contract to the board and provided a written report to each member.  Checked all meters, reads and related information.  Everything checked out fine and he will get with Mary every 6 months to re-evaluate.</div> <bR> <div> <B>APPROVE DEPOSITORY PLEDGE AGREEMENT WITH TEXAS STATE BANK</B></div> <div>      Mark Brooks presented a new depository pledge agreement to be signed by the board reflecting name change of Riverway Bank to Texas State Bank.  Board approved and signed agreement.</div> <bR> <div> <B>CONDUCT HEARING ON TERMINATION OF WATER AND SEWER SERVICE </B></div> <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>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO REQUEST REGARDING EXTENSION OF SIDEWALKS</B></div> <bR> <div>      John informed the board that D&D is waiting on a letter from MUD to proceed with the work.  After discussion the board decided to forgo the 50/50 program with the county and proceed with both projects as bid by D&D.  Upon motion duly made, seconded and carried the board approved moving forward with the projects as bid.  Mark Brooks will send letter as requested by D&D.</div> <div>      </div> <div> <B>A</B><B>UT</B><B>HORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND </B></div> <bR> <div>           Tony Garza stated residents are complaining about the lack of mowing of the ditches in the greenbelt.  Tony proposed adding the top section to existing mowing contract.  Mark Brooks indicated one possibility would be to enter into a contract with Harris County Flood Control to reimburse the district for 3 mowings per year of this area.  Mark will check with Harris County and Tony will get bid from Junction Landscape.  Tabled to next months meeting. </div> <bR> <div> <B>PENDING BUSINESS</B></div> <bR> <div>      Meeting set for May 24th at 7:00 pm for canvassing of election vote.  </div> <bR> <div>      Doug Konopka addressed the board regarding tract of land next to Blockbuster.  The tract is under contract with Helsion for Hennessey to build a series of small office buildings at the front of the tract and warehouses in the back of tract.</div> <bR> <div>      Tony reported on Cinco Plant meeting.  Cinco and MUD 81 switched electrical companies.  Agreement completed and going well.  </div> <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> </td> </tr></table></body>