Minutes October 17, 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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October 17, 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> E.C. Norris, Secretary</div> <div> John Irwin, Assistant Secretary</div> <div> Darryl Box, Investment Officer </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 Knopka of Cinco LTD.</div> <bR> <div> The meeting was called to order at 7:00 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 September 19, 2005 meeting were approved.</div> <bR> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div> N/A</div> <bR> <div> <B><U>CONDUCT PUBLIC HEARING ON PROPOSED TAX RATE</U></B></div> <bR> <div>      Discussed lowering tax rate.  </div> <bR> <div> <B><U>ADOPT ORDER ESTABLISHING TAX RATE FOR 2005 </U></B></div> <bR> <div> Motion made, seconded and carried to lower maintenance tax rate by 1 cent to make it 12 cents and keep the debt service rate 37 cents for a total of 49 cents.</div> <bR> <div>      </div> <div> <B><U>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Bob Leared presented the Tax Assessor/Collector report.  Taxes Receivable 8/31/2005: $16,911.61, adjustments $0.00.  Original 2004 Tax Levy: $0.00, adjustments $0.00.  Total Taxes Receivable: $16,275.78.  Prior years taxes collected $1,246.09, 2005 taxes collected $0.00.  Taxes Receivable at 9/30/2005: $15,029.69.  2005 Receivables: Debt Service $0.00; Maintenance $0.00.  Month of 9/2005: beginning cash balance $45,912.97, total receipts $1,799.82, total disbursements $26,012.70, cash balance at 9/30/2005 $21,700.09.  Total Disbursements for month of October 2005 $12,001.64, remaining cash balance $9,698.45.  The district is 99.978% collected for 2001 taxes, 99.876% for 2002 taxes, 99.941% for 2003 taxes and 99.053% for 2004.  Discussed sending out 2nd duplicate statements to unpaid homeowners so they can contact mortgage their company.  Motion made, seconded and approved the sending of duplicate tax statements.</div> <bR> <div>  </div> <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> <bR> <div> <B><U>FINANCIAL ADVISOR</U></B></div> <bR> <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 September 2005 Operations Report.  Total connections were 1493.  Meter installations and inspections for Aug 14 - Sep 13:  New taps Installed - 3; Abandoned connections - -1; Sewer inspections completed - 4; 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 9/2005.  TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 10/29/02; Volatile Organic Chemicals 8/11/02; Minerals 8/11/05.  Water production: Pumped 32,569,000 at Water Plant #1, Total supplied - 32,569,000, Daily Average - 1,085,633.  Subsidence Information: Estimated number of months available - 3.0, Permit months remaining - 3, Percent of permitted production - 74.75.  Water Accountability is at 95% Year to Date.  Total Operations Charges $23,532.97.  Actual work related expenses - $n/a.  Total Current billing -  $66,455.45.  Total Aged Receivables $18,338.79.  Total Accounts Receivables $84,794.24.  Facility Checklist completed: Water Plant #1 on 9/30/2005.  Inspections Completed: Fire Hydrants on 5/30/2005.  Total Deposits for September 2005 $59,613.78.  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.    Informed the board that Eco was under review.  After discussion and motion duly made, seconded and unanimously carried the board approved the setup for enhanced payment options.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report.</div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin reported on activities in the district.  No new requests made.  Royale Montreal - all quiet.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved 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 $9,105.55, Tex Pool $434,024.10.  Debt service funds available October 17, 2005 - $2,033,129.65.  Total Debt Service Requirements for 2005: $1,364,020.00.  Capital projects funds available October 17, 2005 - $137,301.15.  General Operating: Previous cash balance September 17, 2005 - $35,606.11, total deposits $59,671.99.  Beginning cash balance October 17, 2005 - $94,657.12.  General Operating Funds available October 17, 2005 - $1,603,981.95.  Included copy of budget for fiscal year ending September 30, 2005, Investment Report and Tex Pool Performance sheet.    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 REVISED SCHEDULE OF RATES FOR OPERATOR SERVICES</U></B></div> <bR> <div>      Tabled to next month.</div> <bR> <div> <B><U>CONSIDER AND POSSIBLY AMEND WATER AND SEWER RATE ORDER (NFBWA FEE)</U></B></div> <bR> <div>      North Fort Bend Water Authority has adopted a pumpage fee of 19 cents per 1000 gal.  Note already placed in bill.  Motion made to amend rate order to add NFBWA pumpage fee, effective Nov. 1st.   After discussion, upon motion duly made, seconded and unanimously carried, the board approved the new rate order. </div> <bR> <div> <B><U>APPROVE AND SIGN DOCUMENTS TO IMPLEMENT ELECTRONIC PAYMENT PROGRAM FOR CUSTOMER PAYMENTS</U></B></div> <bR> <div>      Done last month.</div> <bR> <div> <B><U>CONSIDER AND POSSIBLY APPROVE LANDSCAPE MAINTENANCE CONTRACT</U></B></div> <bR> <div>      Mark will send revised contract to Landscaper and review next month.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Putting together bidding documents for bidding purposes.  Should have cost at next meeting.  Base bid on fine bubbler system.  Other item - screen or chlorination; the committee will decide what to do and hold off on the rest for a later date.</div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      None </div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Doug Knopka gave update on projects.</div> <bR> <div>  </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:36 p.m.</div> <bR> <div>                                                                       ______________________</div> <div>                                                                       Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>