Minutes November 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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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 - arrived at 7:30</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, Doug Knopka of Cinco LTD, and John Elder of The Legacy Group.</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 October 17, 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>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 $785.62.  Original 2005 Tax Levy: $1,172,903.87, adjustments $0.00.  Total Taxes Receivable: $1,189,965.27.  Prior years taxes collected $2,484.94, 2005 taxes collected $8,534.00.  Taxes Receivable at 10/31/2005: $1,178,946.33.  2005 Receivables: Debt Service $879,218.02; Maintenance $285,151.85.  Month of 10/2005: beginning cash balance $21,700.09, total receipts $10,637.01, total disbursements $12,001.64, cash balance at 10/31/2005 $20,335.46.  Total Disbursements for month of November 2005 $5,090.91, remaining cash balance $15,244.55.  The district is 99.978% collected for 2001 taxes, 99.876% for 2002 taxes, 99.940% for 2003 taxes, 99.091% for 2004 and .728% for 2005.  Talked to Purdue nothing to report.  Will have breakdown of collections next month.  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>      </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 October 2005 Operations Report.  Total connections were 1494.  Meter installations and inspections for Sep 14 - Oct 13:  New taps Installed - 1; Abandoned connections - 0; Sewer inspections completed - 7; Builder Inspections completed - 1; Customer Service inspections completed - 0; Net Rental Meter Change - 0.  Wastewater treatment; Permitted Average Daily Flow - 3,000,000 GPD.  The required 7 samples were taken during 10/2005.  TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 10/29/02; Volatile Organic Chemicals 8/11/05; Minerals 8/11/05.  Water production: Pumped 30,471,000 at Water Plant #1, Total supplied - 30,471,000, Daily Average - 982,935.  Subsidence Information: Estimated number of months available - 1.7, Permit months remaining - 2, Percent of permitted production - 84.91.  Water Accountability is at 95% Year to Date.  Total Operations Charges $16,492.55.  Actual work related expenses - $9,300.  Total Current billing -  $76,568.99.  Total Aged Receivables $22,879.87.  Total Accounts Receivables $99,448.86.  Facility Checklist completed: Water Plant #1 on 10/20/2005.  Inspections Completed: Fire Hydrants on 5/30/2005.  Total Deposits for October 2005 $81,861.51.  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.  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.  He has received plans for T-Garden, which still needs plumbing drawings.  Doug Knopka closed on property north of Blockbuster for retail space. </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 $19,140.87, Tex Pool $435,324.59.  Debt service funds available November 21, 2005 - $2,044,465.46.  Total Debt Service Requirements for 2006: $1,349,070.00.  Capital projects funds available November 21, 2005 - $137,735.94.  General Operating: Previous cash balance October 17, 2005 - $36,226.85, total deposits $81,919.05.  Beginning cash balance November 21, 2005 - $111,614.26.  General Operating Funds available November 21, 2005 - $1,649,430.58.  Included copy of budget for fiscal year ending September 30, 2006, Investment Report and Tex Pool Performance sheet.    Informed the board that they have not received the bill from Cinco.  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>      Dusty presented his schedule increase to the board.  The last increase was July 1, 2000.  Asking for 7% increase across the board in most areas.   After discussion, upon motion duly made, seconded and unanimously carried, the board authorized the rate schedule increase. </div> <bR> <div> <B><U>DISCUSS AND POSSIBLY APPROVE NEW CONTRACT FOR PURCHASE OF ELECTRIC POWER</U></B></div> <bR> <div>      John Elder with Legacy presented the audit report to the board.   Indicated a savings of $34,920.70 since Jan 04.  Entergy will no longer be able to be our supplier.  Discussed options of Reliant and Constellation.  After discussion a motion was made by Chip and seconded by John to go with Reliant for 2 years.  After a vote of 2-For and 3-Against, the motion did not pass.  Another motion was made by Gary and seconded by Darryl to go with Reliant for 3 years.  After a vote of 3-For and 2-(Chip and John) Against, the motion was approved.  The current contract is up January 1, 2006 and Chip will be available to sign the necessary paperwork. </div> <bR> <div> <B><U>AUTHORIZE FINAL ARBITRAGE REBATE REPORT FOR SERIES 1994 BOND ISSUE</U></B></div> <bR> <div>      Mark presented proposal of ACS to take debt service account and compare to earnings.  The cost will be $1,075 to finalize.  After discussion and motion made to approve proposal, and with a vote of 4-For and 1- Against (John Irwin), the board approved the proposal.</div> <bR> <div> <B><U>APPROVE AND SIGN AMENDMENT TO DISTRICT INFORMATION FORM TO REFLECT NEW TAX RATE</U></B></div> <bR> <div>      Mark Brooks explained the amendment to reflect the new tax rate.  After discussion, upon motion duly made, seconded and unanimously carried, the board approved and authorized signing the amendment to reflect the new tax rate.</div> <bR> <div> <B><U>APPROVE AND SIGN LANDSCAPE MAINTENANCE CONTRACT</U></B></div> <bR> <div>      Done last month.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Tony reported there was nothing major to report and  informed the board of the MUD 81 annual Christmas Party.</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>      Mark will send letter to repair company working in the greenbelt to leave access for pedestrians without having to go into the street.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Tony reported on tax rates of other districts.</div> <div>  </div> <bR> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 8:22 p.m.</div> <bR> <div>                                                                 ____________________________</div> <div>                                                                 Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>