Minutes December 19, 2005

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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.; 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>APPROVE MINUTES OF PRIOR MEETINGS</B></div> <bR> <div>      After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the November 21, 2005 meeting were approved.</div> <bR> <div>  </div> <div> <B>QUESTIONS/COMMENTS FROM THE PUBLIC</B></div> <bR> <div> N/A</div> <bR> <div> <B>T</B><B>AX ASSESSOR/COLLECTOR'S REPORT</B></div> <bR> <div>      Mark Brooks 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 $35.268.97.  Total Taxes Receivable: $1,189,965.27.  Prior years taxes collected $2,484.94, 2005 taxes collected $8,534.00.  Taxes Receivable at 11/30/2005: $1,137,345.48.  2005 Receivables: Debt Service $849,924.87; Maintenance $275,651.37.  Month of 11/2005: beginning cash balance $20,335.46, total receipts $78,641.52, total disbursements $5,180.07, cash balance at 11/30/2005 $93,796.91.  Total Disbursements for month of December 2005 $83,440.42, remaining cash balance $10,356.49.  The district is 99.978% collected for 2001 taxes, 99.8895 for 2002 taxes, 99.940% for 2003 taxes, 99.293% for 2004 and 6.836% for 2005.  </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>FINANCIAL ADVISOR</B></div> <bR> <div>      N/A     </div> <bR> <div> <B>OPERATOR'S REPORT</B></div> <bR> <div> Dusty Lane of Eco-Resources, Inc., the District's operator, reported as to District operations and facilities and presented the November 2005 Operations Report.  Total connections were 1494.  Meter installations and inspections for Oct 14 - Nov 13:  New taps Installed - 10 Abandoned connections - 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 11/2005.  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 20,418,000 at Water Plant #1, Total supplied - 22,818,000, Daily Average - 760,600.  Subsidence Information: Estimated number of months available - 1.5, Permit months remaining - 1, Percent of permitted production - 87.35.  Water Accountability is at 95% Year to Date.  Total Operations Charges $15,680.78.  Actual work related expenses - $8,189.  Total Current billing -  $68,312.06.  Total Aged Receivables $21,541.18.  Total Accounts Receivables $89,853.24.  Facility Checklist completed: Water Plant #1 on 11/23/2005.  Inspections Completed: Fire Hydrants on 5/30/2005.  Total Deposits for November 2005 $65,391.15.  Disconnects/Reconnects income: $347.20.  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> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report.</div> <bR> <div> <B>ENGINEER'S REPORT</B></div> <bR> <div> Marvin reported on activities in the district.  No new requests.  Royal Montreal has not made contact on any new activity. </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the Engineers report.</div> <bR> <div> <B>BOOKKEEPER'S REPORT</B></div> <bR> <div> Terry Holland of Myrtle Cruz, Inc., the District's bookkeeper, presented the monthly report.  Demand Deposit Investments: Texas State Bank $9,152.11, Tex Pool $411,751.80.  Debt service funds available December 19, 2005 - $2,105,903.91.  Total Debt Service Requirements for 2006: $1,349,070.00.  Capital projects funds available December 19, 2005 - $138,181.09.  General Operating: Previous cash balance November 21, 2005 - $71,015.69, total deposits $66,139.28.  Beginning cash balance December 19, 2005 - $96,737.27.  General Operating Funds available December 19, 2005 - $1,669,430.03.  Included copy of budget for fiscal year ending September 30, 2006, 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>CONDUCT HEARING ON TERMINATION OF WATER AND SEWER SERVICE</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>  </div> <div> <B>CINCO REGIONAL OPERATING COMMITTEE REPORT</B></div> <bR> <div>      Tony reported received bid for wastewater treatment plant and went over repairs quoted with board.  The low bid is $1,554,500.  If the sluice gates are deleted, our share based on 33% ownership will be $465,000.  After discussion, upon motion duly made, with a vote of 3 for (Tony, Chip and Gary) and 2 against (Darryl and John), the board authorized the District's representative to vote at the Cinco plant meeting in favor of proceeding with the project, but without the sluice gates.</div> <bR> <div> <B>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</B></div> <bR> <div>      Mark talked to the construction company regarding sidewalk being blocked.  There is no  way to complete work without blocking sidewalk.  Weather permitting, it should be complete by year end.</div> <bR> <div> <B>PENDING BUSINESS</B></div> <bR> <div>      N/A</div> <div>  </div> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:46 p.m.</div> <bR> <bR> <div>                                                                 _______________________________</div> <div>                                                                 Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> </td> </tr></table></body>