Minutes March 21, 2005

<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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Harris County, Texas at 7:00 p.m. on March 21, 2005, in accordance with the duly posted notice of said meeting, with a quorum of directors present as follows:</div> <bR> <div> Tony Garza, President  - arrived at 7:05</div> <div> Gary Hughes, Vice President</div> <div> John Irwin, Assistant Secretary</div> <div> Darryl Box, Investment Officer</div> <div> E.C. Norris, Secretary</div> <bR> <div> And being absent:</div> <bR> <div> None</div> <bR> <div> Also present were Kathie Naumow, Recording Secretary; Terry Holland of Myrtle Cruz, Inc.; Bob Leared of Bob Leared Interests; Dusty Lane of Eco-Resources, Inc.; Marvin Zahradnik of Landev Engineers, Inc.; Scott Townsend of Young & Brooks; Doug Konopka of Cinco, LTD, and Brian Trepp with Junction Landscape.</div> <bR> <div> The meeting was called to order at 7:00 and declared it open for such business as might come before it.</div> <bR> <div> <B><U>APPROVE MINUTES OF PRIOR MEETINGS</U></B></div> <bR> <div>      After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the February 21, 2005 meetings were approved.</div> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div> None </div> <bR> <div> <B><U>CONSIDER AND POSSIBLY AUTHORIZE CORNERSTONE PLACE ENTRANCE SIGNAGE</U></B></div> <bR> <div>      Tabled to next month.</div> <bR> <div> <B><U>JUNCTION LANDSCAPE PERFORMANCE REVIEW</U></B></div> <bR> <div>      The other consultants excused themselves while the board conducted a performance review with Brian Trepp of Junction Landscape.  Discussed flower beds in greenbelt and gopher problem.  Fertilizer will be applied in about a week.  A couple of trees need trimming.  Irrigation system was checked a couple of weeks ago.  Rain gauge controllers (5) would cost @$125.00 installed.  Board reported no problem with Junction Landscape in the greenbelt.</div> <bR> <div> The other consultants returned and the meeting continued.</div> <bR> <div> <B><U>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Bob Leared presented the Tax Assessor/Collector report.  Taxes Receivable 8/31/2004: $44,410.80, adjustments $1,364.91.  Original 2004 Tax Levy: $1,018,601.70, adjustments $252,848.95.  Total Taxes Receivable: 1,317,226.36.  Prior years taxes collected $25,693.54, 2004 taxes collected $1,215,163.69.  Taxes Receivable at 2/28/2005: $76,369.13.  2004 Receivables: Debt Service $41,652.35; Maintenance $14,634.61.  Month of 2/2005: beginning cash balance $418,980.19, total receipts $33,936.19, total disbursements $396,684.97, cash balance at 2/28/2005 $56,231.41.  Transfer to Debt Service Fund $25,000.00.  Transfer to General Fund $7,596.49.  Total Disbursements for month of March 2005 $38,115.74, remaining cash balance $18,115.67.  The district is 99.907% collected for 2001 taxes, 99.824% for 2002 taxes, 99.713% for 2003 taxes and 95.573% for 2004.  </div> <bR> <div> 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>FINANCIAL ADVISOR</U></B></div> <bR> <div>      N/A</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 February 2005 Operations Report.  Total connections for February 2005 were 1490.  Meter installations and inspections for Jan 14 - Feb 13:  New taps Installed - 0; Sewer inspections completed - 0; Builder Inspections completed - 0; Customer Service inspections completed - 0; Net Rental Meter Change - 0. Wastewater treatment; Permitted Average Daily Flow - 3,000,000GPD.  The required 7 samples were taken during 2/2005.  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 11,945,000 at Water Plant #1, Total supplied - 11,945,000, Daily Average - 426,607.  Subsidence Information: Estimated number of months available - 20.6, Permit months remaining - 10, Percent of permitted production - 8.84.  Water Accountability is at 94% Year to Date.  Total Operations Charges $10,937.12.  Actual work related expenses - $4,515.00.  Total Current billing  $50,147.87.  Total Aged Receivables $11,277.40.  Total Accounts Receivables $61,425.27.  Facility Checklist completed: Water Plant #1 on 2/18/2005.  Inspections Completed: Fire Hydrants on 12/15/2004.  Total Deposits for February 2005 $41,922.07.  Disconnects/Reconnects income: $200.00.  Pull Fees: $120.47.  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.   Everyone has been made aware of situation and it is being addressed.  Reported they are waiting on Tony to get cost for changeover for the customer payment options.  John will email board with info.  No customer requests this month.  Drought contingency received from Mark.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report and authorized repairs on plant.</div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin reported on activities in the district with no new requests.  He talked to Jennifer with Brown and Gay and he should have the bill for repairs next month.  Should be $150,000 for trunk and sanitary repairs.  </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved having someone check periodically on trunk line repairs and the Engineers report.</div> <bR> <div> <B><U>BOOKKEEPER'S REPORT</U></B></div> <bR> <div> Terry Holland of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report.  Demand Deposit Investments: Texas State Bank $228,008.26, Texpool $995,849.56.  Debt service funds available March 21, 2005 - $3,288,857.82.  Total Debt Service Requirements for 2005: $1,364,020.00.  Capital projects funds available March 21, 2005 - $141,622.91.  General Operating: Previous cash balance February 21, 2005 - $4,980.75, total deposits $41,958.62.  Beginning cash balance March 21, 2005 - $45,876.56.  General Operating Funds available March 21, 2005 - $1,560,592.24.  Included copy of budget for fiscal year ending September 30, 2005, Investment Report and Tex Pool Performance sheet.  </div> <div> 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> <B><U>CONDUCT HEARING ON TERMINATION OF WATER AND SEWER 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>DISCUSS AND POSSIBLY APPROVE NEW CUSTOMER PAYMENT OPTIONS</U></B></div> <bR> <div>      Tabled to next month.</div> <bR> <div> <B><U>LEGACY GROUP REPORT ON POWER COSTS</U></B></div> <bR> <div>      Will present in April.</div> <bR> <div> <B><U>REVIEW INVESTMENT POLICIES</U></B></div> <bR> <div>      Tabled to next month.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Nothing to report at this time.   Trunk Line repair completed.</div> <bR> <div> <B><U>CONSIDER AND POSSIBLY APPROVE FIRST AMENDMENT TO THE RESTATED CINCO REGIONAL SEWAGE TREATMENT PLANT AGREEMENT</U></B></div> <bR> <div>      Still waiting to hear from attorneys.  Tabled.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      Previous landscaper KSA would like to bid on contract.  Tony will pull current contract and come up with requirements and go out for bid.  </div> <bR> <div>      Get proposal from Junction for mulch and metal edging.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Discussed turnout on Highland Knolls and getting the County to abandon property.  Marvin will meet with the person responsible for this.</div> <div>  </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:45 p.m.</div> <bR> <div>                                                                             _______________________________</div> <div>                                                                                 Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>