Minutes April 18, 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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April 18, 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  </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> <div>  </div> <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 and Jonathan Bauer of Eco-Resources, Inc.; Marvin Zahradnik of Landev Engineers, Inc.; Mark Brooks of Young & Brooks; Doug Konopka of Cinco, LTD, and John Elder III of The Legacy Group.</div> <bR> <div> The meeting was called to order at 7:00 p.m. and declared 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 March 21, 2005 meeting 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>      Remove item from agenda until they contact us.</div> <bR> <div> <B><U>ESTABLISH TAX EXEMPTIONS AND ADOPT TAX COLLECTION PENALTY</U></B></div> <bR> <div>      Mark reported last year's exemptions of $30,000 for residents over 65 or disabled, and a 20% homestead exemption.  Discussed exemptions and penalty.  After discussion, upon motion duly made, seconded and unanimously carried, the board adopted the attached Resolution Concerning Exemptions from Taxation and Resolution Authorizing Additional Penalties on Delinquent Taxes, keeping the exemptions and penalty the same as last year.</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 $252,494.45.  Total Taxes Receivable: 1,316,871.86.  Prior years taxes collected $27,410.32, 2004 taxes collected $1,234,266.44.  Taxes Receivable at 3/31/2005: $55,195.10.  2004 Receivables: Debt Service $27,253.99; Maintenance $9,575.72.  Month of 3/2005: beginning cash balance $56,231.41, total receipts $23,747.60, total disbursements $38,115.74, cash balance at 3/31/2005 $41,863.27.  Transfer to Debt Service Fund $15,000.00.  Transfer to General Fund $5,321.44.  Total Disbursements for month of April 2005 $22,749.39, remaining cash balance $19,113.88.  The district is 99.914% collected for 2001 taxes, 99.824% for 2002 taxes, 99.816% for 2003 taxes and 97.103% 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> <div>      </div> <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 March 2005 Operations Report.  Total connections for March 2005 were 1490.  Meter installations and inspections for Feb 14 - Mar 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 3/2005.  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 16,410,000 at Water Plant #1, Total supplied - 16,410,000, Daily Average - 529,354.  Subsidence Information: Estimated number of months available - 17.9, Permit months remaining - 9, Percent of permitted production - 14.31.  Water Accountability is at 95% Year to Date.  Total Operations Charges $14,373.05.  Actual work related expenses - $8,021.00.  Total Current billing  $48,140.43.  Total Aged Receivables $13,118.38.  Total Accounts Receivables $61,258.81.  Facility Checklist completed: Water Plant #1 on 3/30/2005.  Inspections Completed: Fire Hydrants on 12/15/2004.  Total Deposits for March 2005 $51,589.76.  Disconnects/Reconnects income: $75.00.  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.   Everyone has been duly notified of situation and it is being addressed.</div> <bR> <div> John Archer with Kids-R-Kids requesting refund in the amount of $213.25.  He had a backup and called Roto-Rooter on 2/24/05.  Eco went out same day.  After discussion, and motion duly made the board voted 4 to 1 to refund Kids-R-Kids.  Darryl Box voted against refund.  Notified board that payment options are ongoing.  Presented 2004 Drinking Water Quality Report to board.  Discussed Drought Contingency Plan.  It must include target % of reduction.  5 - Mild, 15 - Moderate, 25 - Severe.  Upon motion duly made, seconded and unanimously carried, the board approved to adopt amended plan.</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 a request for water and sewer by Royal Montreal Plaza.  Will send letter of contingency on closing of property.  Motion made and approved.  Reported that repairs are completed. </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 $67,494.69, Texpool $1,283,070.52.  Debt service funds available April 18, 2005 - $3,130,565.21.  Total Debt Service Requirements for 2005: $1,364,020.00.  Capital projects funds available April 18, 2005 - $141,928.22.  General Operating: Previous cash balance March 18, 2005 - $1,637.88, total deposits $51,873.29.  Beginning cash balance April 18, 2005 - $52,994.01.  General Operating Funds available April 18, 2005 - $1,588,735.56.  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>      Covered under Operators report.</div> <bR> <div> <B><U>LEGACY GROUP REPORT ON POWER COSTS</U></B></div> <bR> <div>      John Elder presented the Audit report for Entergy Solutions.</div> <bR> <div> <B><U>REVIEW INVESTMENT POLICIES</U></B></div> <bR> <div>      After discussion, and motion made the board approved keeping the investment policies as they are.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Line completed.  Working of plans for the five bubbler system at Cinco Plant.</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>      Tabled.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      Tony will send details of landscaping guidelines to request bids.  Received bid for mulch in the greenbelt and rain sensors.  Mark will send letter to approve mulch application and installation of sensors.  </div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Tony informed board of AWBD conference dates of 6/23/05 through 6/25/05.  </div> <div>  </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 8:00 p.m.</div> <bR> <div>                                                                             _______________________________</div> <div>                                                                                  Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <div>           Resolution Concerning Exemptions from Taxation</div> <div>           Resolution Authorizing Additional Penalties on Delinquent Taxes. </div> <bR> </td> </tr></table></body>