Minutes July 26, 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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District (the “District”) met at 805 Hidden Canyon, Katy, Harris County, Texas at 7:00 p.m. on July 26, 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> E.C. Norris, Secretary</div> <div> John Irwin, Assistant Secretary</div> <div> And being absent:</div> <div> Gary Hughes, Vice President</div> <div> Darryl Box, Investment Officer</div> <bR> <div> Also present were Kathie Naumow - Recording Secretary, Terry Holland of Myrtle Cruz, Inc., Dusty Lane of Eco-Resources, Inc., Brenda McLaughlin of Bob Leared Interests, Marvin Zahradnik of Landev Engineers, Inc., Mark Brooks of Young & Brooks, Brannyn Adams of Cinco, LTD., 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 June 21, 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> Brenda McLaughlin 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 $6,128.96, total $45,401.68.  Original 2003 Tax Levy: $1,181,410.10, adjustments $62,966.40, total $1,244,376.50.  Total Taxes Receivable: 1,289,778.18.  Prior years taxes collected $14,295.07, 2003 taxes collected $1,223,336.59, Total $1,237,631.66.  Taxes Receivable at 6/30/2004: $52,146.52.  2003 Receivables: Debt Service $15,569.53, Maintenance $5,470.38.  Month of May 2004: beginning cash balance $40,056.73 total receipts $7,441.20, total disbursements $18,895.70, cash balance at 6/30/2004 $28,602.23.  Total Disbursements for month of July 2004 $3,958.67, remaining cash balance $24,643.56.  The district is 99.417% collected for 2001 taxes, 99.443% for 2002 taxes and 98.309% 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.  GRP Fin. 3/9 explained.  Next meeting they will begin looking at proposed tax rate.</div> <bR> <div> Mark Brooks relayed information on the Yonan case from Carl Sandlin.  Carl is asking the board to initiate collection efforts again.  They are not making any progress on the case.</div> <div> Mr. Yonan informed the board that they have had a communication breakdown with Mr. Goodrum, their attorney.  They are terminating his services and retaining another attorney.  He would like a couple of weeks to retain new counsel.</div> <div> The Board will allow Mr. Yonan to hire new counsel but will proceed with authorization to initiate collection efforts but will not do anything service termination wise for 30 days.</div> <div> Upon motion duly made, seconded and unanimously carried, the board approved authorization to initiate collection efforts on the Yonan case.</div> <div> <B>FINANCIAL ADVISOR</B></div> <div> N/A</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 June 2004 Operations Report.  Total connections for June 2004 were 1486.  Meter installations and inspections for May 14 - June 13:  New taps Installed - 0; Sewer inspections completed - 0; Builder Inspections completed - 2; Customer Service inspections completed - 0; Net Rental Meter Change -1. The required 7 samples were taken during 6/2004.  TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 10/29/02; Volatile Organic Chemicals 10/29/02; Minerals 3/23/04.  Water production: Pumped 19,803,000 at Water Plant #1, Total supplied - 19,803,000, Daily Average - 660,100.  Subsidence Information: Estimated number of months available - 12.4, Permit months remaining - 6, Percent of permitted production - 32.45.  Water Accountability is at 94% Year to Date.  Total Operations Charges $11,496.75.  Total Current billing  $54,765.63.  Total Aged Receivables $10,247.80.  Total Accounts Receivables $65,012.43.  Facility Checklist completed: Water Plant #1 on 6/21/2004.  Inspections Completed: Fire Hydrants on 6/7/2004.  Total Deposits for June 2004 $49,287.30.  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.   No Customer requests.  Waiting on electric tech to look at security/street lights for Ms. Adams.  EMS Voluntary Fee: Dusty will check on the cost to get fee listed as a separate line item.</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 received.  Mason Road Hennessey strip center needs to show drawings to get permit from county.  Received drawings for Mason Road (next to Blockbuster) on water capacity request.</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> Terry Holland of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report.  Debt service funds available July 19, 2004 - $3,496,884.80.  Total Debt Service Requirements for 2004: $1,371,182.50.  Capital projects funds available July 19, 2004 - $298,722.61.  General Operating: Previous cash balance June 21, 2004 - $3,749.87, total deposits $53,169.63, beginning cash balance July 19, 2004 - $56,710.98.  General Operating Funds available July 19, 2004 - $1,280,987.16.  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> Informed board that Mary Jarmon is working on proposed budget and will present at next months meeting.</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>REVIEW VULNERABILITY ASSESSSMENT AND AUTHORIZE ANY NECESSARY ACTIONS</B></div> <bR> <div> The Board reviewed the District's recent vulnerability assessment and recommendations.  Board will take the short term goal list and tour plant with Dusty.  Dusty will check schedule and get with board.  Tentatively set meeting for 10:00 AM August 4, 2004 at the well.  Dusty will get pricing.</div> <bR> <div> <B>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO HCFCD DITCH MOWING</B></div> <bR> <div> The ditches were cut on July 9th and 10th.  Will monitor.</div> <bR> <div> <B>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND </B></div> <div> Concrete work in triangle lot and sidewalks held up on permits to complete curb cuts.</div> <bR> <div> Highland Knolls turnout - Tony would like to contact County regarding removing curb cut.  John is waiting on county engineer to get back with him regarding the one located on Eagle Meadow.  Contact is Linda Gaskamp with PCT 3.  Mark Brooks sending letter requesting barricade to be repaired and will ask them to consider removing the turnout.</div> <bR> <div> <B>PENDING BUSINESS</B></div> <bR> <div> Fort Bend Regional Water Authority - Voted to go with 7 member District 1 Precinct.  We are included with Cinco Mud 1 & 2.  Three members will be elected in 2008 for 2 ½ years and 4 elected in 2010 for 4 ½ years.  Discussed options.  Tony will get additional information to other members.</div> <bR> <div> <B>ATTORNEY PERFORMANCE REVEIW</B></div> <bR> <div> Deferred to next meeting.</div> <bR> <div> After concluding and there being no further business to come before the board, the meeting was adjourned.</div> <bR> <bR> <div> ______________________________</div> <div> Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>