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Minutes September 19, 2005
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CORNERSTONES MUNICIPAL UTILITY DISTRICT
Cornerstones Municipal Utility District
Minutes of Meeting of Board of Directors
September 19, 2005
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 September 19, 2005, in accordance with the duly posted notice of said meeting, with a quorum of directors present as follows:
Tony Garza, President
E.C. Norris, Secretary
John Irwin, Assistant Secretary
Darryl Box, Investment Officer
and being absent:
Gary Hughes, Vice President
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, Jan Bartholomew of RBC Dain Rauscher and Doug Knopka of Cinco LTD.
The meeting was called to order at 7:03 and declared open for such business as might come before it.
APPROVE MINUTES OF PRIOR MEETINGS
After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the August 15, 2005 meeting were approved.
QUESTIONS/COMMENTS FROM THE PUBLIC
N/A
AUTHORIZE PUBLICATION OF THE PROPOSED TAX RATE
Covered under 4a on the agenda (Financial Advisor Report).
TAX ASSESSOR/COLLECTOR'S REPORT
Bob Leared presented the Tax Assessor/Collector report. Taxes Receivable 8/31/2004: $44,410.80, adjustments $1,149.61. Original 2004 Tax Levy: $1,018,601.70, adjustments $250,713.20. Total Taxes Receivable: 1,314,875.31. Prior years taxes collected $41,786.58, 2004 taxes collected $1,256,177.12. Taxes Receivable at 8/31/2005: $16,911.61. 2004 Receivables: Debt Service $9,721.96; Maintenance $3,415.82. Month of 8/2005: beginning cash balance $27,317.98, total receipts $21,772.33, total disbursements $3,177.334, cash balance at 8/31/2005 $45,912.97. Total Disbursements for month of September 2005 $26,012.70, remaining cash balance $19,900.27. The district is 99.965% collected for 2001 taxes, 99.872% for 2002 taxes, 99.941% for 2003 taxes and 98.965% for 2004. Discussed delinquent list and handling of older delinquent accounts. Possibly move personal property account to uncollected.
Upon motion duly made, seconded and unanimously carried, the board approved the tax assessor/collector's report and payment of the tax bills presented.
FINANCIAL ADVISOR
Jan gave the financial report. Received certified numbers of $239,368,129 and an additional $10,598,088 in value remains uncertified. Based on a 2005 net taxable value of $249,966,217; 98% tax collections and adequate ending debt service coverage balance she recommends the Board of Directors consider levying a 2005 tax rate of $0.37 per $100 of assessed valuation for debt service purposes and $0.13 per $100 of assessed valuation for maintenance purposes. After discussion and upon motion duly made, seconded and a vote of 3 for (John Irwin, Chip Norris and Tony Garza) and 1 abstain (Darryl Box) the board authorized publication of the District's proposed 2005 tax rate at $0.37 for debt service and $0.13 for maintenance and operations, for a total of 2005 tax rate of $0.50 per $100 taxable value. The board will conduct the required public hearing and formally adopt the tax rate at the next regular board meeting.
OPERATOR'S REPORT
Dusty Lane of Eco-Resources, Inc., the District's operator, reported as to District operations and facilities and presented the August 2005 Operations Report. Total connections were 1491. Meter installations and inspections for Jul 14 - Aug 13: New taps Installed - 0; Sewer inspections completed - 7; Builder Inspections completed - 1; Customer Service inspections completed - 0; Net Rental Meter Change +1. Wastewater treatment; Permitted Average Daily Flow - 3,000,000GPD. The required 7 samples were taken during 8/2005. TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 10/29/02; Volatile Organic Chemicals 10/29/02; Minerals 8/11/05. Water production: Pumped 31,345,000 at Water Plant #1, Total supplied - 31,345,000, Daily Average - 1,011,129. Subsidence Information: Estimated number of months available - 4.5, Permit months remaining - 4, Percent of permitted production - 63.9. Water Accountability is at 95% Year to Date. Total Operations Charges $32,657.57. Actual work related expenses - $5,720.00. Total Current billing $68,826.77. Total Aged Receivables $16,395.42. Total Accounts Receivables $85,222.19. Facility Checklist completed: Water Plant #1 on 8/17/2005. Inspections Completed: Fire Hydrants on 5/30/2005. Total Deposits for August 2005 $85,655.57. Disconnects/Reconnects income: $150.00. 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. Received one customer request this month to permanently remove the voluntary fee. Need Tony Garza and Chip Norris to sign the enhanced payment option papers. After discussion and motion duly made, seconded and unanimously carried the board approved the setup for enhanced payment options.
Upon motion duly made, seconded and unanimously carried, the board approved the operator's report.
ENGINEER'S REPORT
Marvin reported on activities in the district. Royale Montreal - street dead ends, 12-inch line needs to tie in to the sanitary line. May need to be extended in the future. Doug Knopka has 10 acres south of Royale Montreal Dr., 1 to 1 ½ acre under contract for small office building. The board authorized Doug to get 3 bids for water line for their review.
Upon motion duly made, seconded and unanimously carried, the board approved the Engineers report.
BOOKKEEPER'S REPORT
Terry Holland of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report. He also presented to the board a list of bills for the approval of payment, a copy of which is attached hereto. Demand Deposit Investments: Texas State Bank $32,171.49, Texpool $1,261,828.10. Debt service funds available September 19, 2005 - $3,168,9999.59. Total Debt Service Requirements for 2005: $1,364,020.00. Capital projects funds available September 19, 2005 - $136,901.50. General Operating: Previous cash balance August 15, 2005 - $25,088.42, total deposits $102,541.31. Beginning cash balance September 19, 2005 - $115,455.58. General Operating Funds available September 19, 2005 - $1,597,484.83. Included copy of budget for fiscal year ending September 30, 2005, Investment Report and Tex Pool Performance sheet. Informed board that the winter AWBD meeting in New Orleans was cancelled and rescheduled for February in San Antonio. Reviewed proposed budget and discussed changes. After discussion and motion duly made, seconded and unanimously carried, the board approved the bookkeepers monthly report and adopted the budget as amended. 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.
CONDUCT HEARING ON TERMINATION OF WATER AND SEWER SERVICE
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.
CONSIDER AND POSSIBLY APPROVE CPA PROPOSAL FOR 1005 AUDIT
After discussion and motion duly made the board voted to stay with the current CPA of BKD,LLP.
CONSIDER AND POSSIBLY APPROVE REVISED SCHEDULE OF RATES FOR OPERATOR SERVICES
Tabled to next month.
ADOPT BUDGET
Covered under 4e.
APPROVE AND SIGN DOCUMENTS TO IMPLEMENT ELECTRONIC PAYMENT PROGRAM FOR CUSTOMER PAYMENTS
After discussion, upon motion duly made, seconded and unanimously carried, the board approved implementation of an electronic payment program and adopted the attached Resolution Approving Additional Payment Services for District Customers.
CONSIDER AND POSSIBLY APPROVE LANDSCAPE MAINTENANCE CONTRACT
Tony talked to landscapers to change 46 visits to 42 visits and 4 fertilizations to 2 fertilizations, which will reduce cost by $1,800.00 per year or $150.00 per month. Tony will revise contract and send to contractor. After discussion and motion duly made the board approved to amend contract with Junction Landscape.
AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH DISTRICT PARTICIPATION IN NORTH FORT BEND WATER AUTHORITY
No avenue available to us with the City of Houston at this time. Discussed and decided to stay in North Fort Bend Water Authority and not opt out.
CINCO REGIONAL OPERATING COMMITTEE REPORT
Tony gave update to the board.
AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND
None
PENDING BUSINESS
There will be a Water Authority meeting Thursday regarding Regional Water Authority fee. The board will decide next month whether to possibly put notice in bill for 19 cent per 1000 gallon pumpage fee.
After concluding and there being no further business to come before the board, the meeting was adjourned at 8:31 p.m.
_______________________________
Secretary
Attachments: Bookkeeper's Report
Resolution Approving Additional Payment Services for District Customers
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