Minutes February 20, 2006

<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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Harris County, Texas at 7:00 p.m. on February 20, 2006, 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, Greg Sissel of BKD, LLP,  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 January 16, 2006 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>ESTABLISH TAX EXEMPTIONS AND ADOPT TAX COLLECTION PENALTY</U></B></div> <bR> <div>      Mark gave review of previous years exemptions.  Currently - Homestead 20%, over 65 or disabled $30,000 in addition to 20%.  Board also discussed additional penalties on delinquent taxes which will add twenty percent (20%) of the amount of taxes, penalty and interest to defray the costs of collection.  The additional penalties will generally accrue for business personal property taxes after they are delinquent for 60 days, and for all other delinquent taxes on July 1 of the year in which they become delinquent.  Motion made to keep exemptions and approve additional penalties on delinquent taxes, with acceleration of delinquent tax penalties on business personal property.   After discussion, motion was seconded and unanimously carried.</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 $784.27.  Original 2005 Tax Levy: $1,172,903.87, adjustments $74.237.94.  Total Taxes Receivable: $1,264,201.86.  Prior years taxes collected $6,557.05, 2005 taxes collected $1,159,918.50.  Taxes Receivable at 1/31/2006: $97,726.31.  2005 Receivables: Debt Service $65,862.50; Maintenance $21,360.81.  Month of 1/2006: beginning cash balance $603,574.88, total receipts $498,403.78, total disbursements $594,128.13, cash balance at 1/31/2006 $507,850.53.  Total Disbursements for month of February 2006 $483,435.54, remaining cash balance $24,414.99.  The district is 99.978% collected for 2001 taxes, 99.912% for 2002 taxes, 99.940% for 2003 taxes, 99.376% for 2004 and 93.006% for 2005.  Mailed out delinquent statements.  Thirteen people used the credit card option this month.</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> <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 January 2006 Operations Report.  Total connections were 1493.  Meter installations and inspections for Dec 14 - Jan 13:  New taps Installed - 0; 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 1/2006.  TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 08/11/05; Volatile Organic Chemicals 8/11/05; Minerals 8/11/05.  Water production: Pumped 17,178,000 at Water Plant #1, Total supplied - 17,178,000, Daily Average - 554,129.  Subsidence Information: Estimated number of months available - 17.6, Permit months remaining - 11, Percent of permitted production - 5.37.  Water Accountability is at 95% Year to Date.  Total Operations Charges $22,402.23.  Actual work related expenses - $15,000.  Total Current billing -  $57,817.90.  Total Aged Receivables $20,612.64.  Total Accounts Receivables $78,430.54.  Facility Checklist completed: Water Plant #1 on 1/12/2006.  Inspections Completed: Fire Hydrants on 12/28/2005.  Total Deposits for January 2005 $69,706.07.  Disconnects/Reconnects income: $75.00.  Pull Fees: $50.00.  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.  No customer requests.  </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.  Funky Monkey Smoothie Bar setting up, request for grease trap.</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.     Debt service funds available February 20, 2006 - $2,916,213.31.  Total Debt Service Requirements for 2006: $1,349,070.00.  Capital projects funds available February 20, 2006 - $139,159.28.  General Operating: Previous cash balance January 16, 2006 - $19,649.88, total deposits $170,182.08.  Beginning cash balance February 20, 2006 - $189,495.07.  General Operating Funds available February 20, 2006 - $1,799,640.29.  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 report and 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>APPROVE AUDIT</U></B></div> <bR> <div>      Mr. Sissel presented the District's audit report for FYE 2005.  Reported everything is fine.  After discussion, and subject to Darryl Box's comments the board approved the report.</div> <bR> <div> <B><U>REVIEW INVESTMENT POLICIES</U></B></div> <bR> <div>      Board reviewed the investment policy.  After review and motion duly made, the board voted unanimously to not make any changes to the policy and will keep the policy as is.</div> <div>      </div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH DIRECTORS ELECTION</U></B></div> <bR> <div>      The board discussed the election officials.  No action necessary at this time.</div> <div>      </div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Tony gave updates of meting from Cinco Regional Operating Committee.  Plans are being approved and work should begin in the next month or so.</div> <div>      </div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      Everything looks good with the exception of the graffiti on the Chesterfield brick wall behind CVS.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Dusty and Marvin will check the cost of automatic restart system on the plant.  Bob Leared's new agreement was unanimously approved, contingent on Darryl Box and Chip Norris' review.</div> <div>  </div> <bR> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:27 p.m.</div> <bR> <div>                                    _______________________________</div> <div>                                    Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>