Minutes May 16, 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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16, 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 7:08 pm</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.; Mark Brooks of Young & Brooks; and Doug Konopka of Cinco, LTD.</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 April 18, 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>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 $251,866.05.  Total Taxes Receivable: 1,316,243.46.  Prior years taxes collected $28,326.19, 2004 taxes collected $1,241,946.89.  Taxes Receivable at 4/30/2005: $45,970.38.  2004 Receivables: Debt Service $21,105.44; Maintenance $7,415.42.  Month of 4/2005: beginning cash balance $41,863.27, total receipts $11,041.53, total disbursements $22,749.39, cash balance at 4/30/2005 $30,155.41.  Total Disbursements for month of May 2005 $4,616.75, remaining cash balance $25,538.66.  The district is 99.921% collected for 2001 taxes, 99.824% for 2002 taxes, 99.855% for 2003 taxes and 97.755% for 2004.  Second set of delinquent statements are going out this week.  Distributed delinquent list. </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 April 2005 Operations Report.  Total connections for April 2005 were 1490.  Meter installations and inspections for Mar 14 - Apr 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 4/2005.  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 23,072,000 at Water Plant #1, Total supplied - 23,072,000, Daily Average - 769,066.  Subsidence Information: Estimated number of months available - 14.1, Permit months remaining - 8, Percent of permitted production - 22.  Water Accountability is at 94% Year to Date.  Total Operations Charges $16,547.90.  Actual work related expenses - $10,015.00.  Total Current billing  $52,464.95.  Total Aged Receivables $11,651.19.  Total Accounts Receivables $64,116.14.  Facility Checklist completed: Water Plant #1 on 4/25/2005.  Inspections Completed: Fire Hydrants on 12/15/2004.  Total Deposits for April 2005 $47,517.82.  Disconnects/Reconnects income: $225.00.  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.  TCEQ Inspection Wednesday</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.  Received plans for Montreal Plaza and will review.  Reported on chloramine vs chlorine for disinfection of well water.   Showed map of districts that will be affected by change. </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 $82,555.77, Texpool $1,000,741.08.  Debt service funds available May 16, 2005 - $3,148,296.85.  Total Debt Service Requirements for 2005: $1,364,020.00.  Capital projects funds available May 16, 2005 - $142,246.02.  General Operating: Previous cash balance April 18, 2005 - $20,391.75, total deposits $47,547.64.  Beginning cash balance May 16, 2005 - $54,807.98.  General Operating Funds available May 16, 2005 - $1,603,737.43.  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 Bookkeeper's 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>CONSIDER AND POSSIBLY APPROVE AMENDMENT TO WATER SUPPLY CONTRACT WITH MEMORIAL MUD FOR SERVICE TO HINZE'S BARBEQUE</U></B></div> <bR> <div>      Table to next month at which time Mark will have agreement.  </div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Line completed.  Final bill came in around $181,000.  Engineers had some extra fees which will be split by MUD's.  Upgrades are in process.  Will bid out upgrades in separate sections.</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>      Mark presented the First Amendment to the Restated Cinco Regional Sewage Plant Agreement for the Board's review and approval.  The First Amendment takes Cinco MUD 1 out of the agreement and takes Cornerstones out of Conveyance Line Phase 3 as requested by Cornerstones.  After discussion, upon motion duly made, seconded, and unanimously carried, the First Amendment was approved.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      Darryl reported ants in the greenbelt.  Discussed guidelines for bidding out of landscaping work.  Board will review again and decide next month.  Sprinklers in Highland Knolls esplanade are coming on at 5:00 pm.  Will have sprinklers checked.    </div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Doug Konopka went over property projects.  Will meet with Marvin to review options for access to utilities.</div> <div>  </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:55 p.m.</div> <bR> <div>                                                                           _______________________________</div> <div>                                                                           Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> </td> </tr></table></body>