Minutes May 15, 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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2010"><U>Minutes July 19, 2010</U></A></div> <DIV ALIGN="LEFT"></DIV> <div> <B><IMG SRC="21f46600.gif" border=0 width="70" height="96" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></div> </td> <td valign="top" height=355 BGCOLOR="#FFFFFF" TEXT="#080000"> <bR> <div> <B>CORNERSTONES MUNICIPAL UTILITY DISTRICT</B></div> <DIV ALIGN="LEFT"></DIV> <div> <B>CORNERSTONES MUNICIPAL UTILITY DISTRICT</B></div> <div> Minutes of Meeting of Board of Directors</div> <div> May 15, 2006</div> <bR> <bR> <div>      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 May 15, 2006, in accordance with the duly posted notice of said meeting, with a quorum of directors present as follows:</div> <bR> <div> Gary Hughes, Vice President</div> <div> E.C. Norris, Secretary</div> <div> Darryl Box, Investment Officer </div> <div> John Irwin, Assistant Secretary</div> <bR> <div> and being absent: </div> <bR> <div> Tony Garza, President  </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 7:09 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>      Correct typo in section “CINCO REGIONAL OPERATING COMMITTEE REPORT” should read “meeting” not “meting”.  After discussion, upon motion duly made, seconded and unanimously carried, the minutes of the April 17, 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>ISSUE CERTIFICATES OF ELECTION</U></B></div> <bR> <div>      By Order for Cancellation of Election adopted prior to May 13, 2006 pursuant to Texas Election Code Section 2.053, the unopposed candidates for the May 13, 2006 directors election were declared elected.  Accordingly, upon motion duly made, seconded and unanimously carried, the board president was authorized to issue Certificates of Election for the candidates declared elected.</div> <bR> <div> <B><U>EXECUTE STATEMENTS OF ELECTED/APPOINTED OFFICER AND OATHS OF OFFICE</U></B></div> <bR> <div>      Gary and Darryl signed documents.  Motion made, unanimously carried, and approved to accept new oaths of office.  Mark will file copies with the Secretary of State.</div> <bR> <div> <B><U>ELECT OFFICERS</U></B></div> <bR> <div>      Postponed to next month's meeting.</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, reserve for uncollectables $635.83; adjustments $795.72.  Original 2005 Tax Levy: $1,172,903.87, adjustments $88,827.68.  Total Taxes Receivable: $1,278,803.05.  Prior years taxes collected $8,920.90, 2005 taxes collected $1,210,192.35.  Taxes Receivable at 4/30/2006: $59,689.80.  2005 Receivables: Debt Service $38,917.35; Maintenance $12,621.85.  Month of 4/2006: beginning cash balance $48,264.25, total receipts $11,624.64, total disbursements $18,578.61, cash balance at 4/30/2006 $41,310.28.  Total Disbursements for the month of May, 2006 $5,089.91, remaining cash balance $36,220.37.  The district is 99.978% collected for 2001 taxes, 99.929% for 2002 taxes, 99.957% for 2003 taxes, 99.527% for 2004 and 95.915% for 2005.  Delinquent statements will go out 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> <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 April 2006 Operations Report.  Total connections were 1494.  Meter installations and inspections for Mar 14 - Apr 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 - +1.  Wastewater treatment; Permitted Average Daily Flow - 3,000,000GPD.  The required 7 samples were taken during 4/2006.  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 26,107,000 at Water Plant #1, Total supplied - 26,107,000, Daily Average - 870,233.  Subsidence Information: Estimated number of months available - 12.0, Permit months remaining - 8, Percent of permitted production - 24.91.  Water Accountability is at 95% Year to Date.  Total Operations Charges $13,541.08.  Actual work related costs - $6,168.00.  Total Current billing -  $60,467.14.  Total Aged Receivables $13,441.22.  Total Accounts Receivables $73,908.36.  Facility Checklist completed: Water Plant #1 on 4/18/2006.  Inspections Completed: Fire Hydrants on 12/28/2005.  Total Deposits for April 2006 - $54,784.72.  Disconnects/Reconnects income: $125.00.  Pull Fees: $0.00.  Provided Discharge Monitoring Report, number exceeded all zero.   Gave the board a copy of the CCR report that will be mailed out.  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.  Presented board with a copy of the format change on the billing invoice.    </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report and deny customer request for adjustment.</div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin reported on activities in the district.  No new requests.   Doug Knopka informed board of interest in a tract of land on Mason Road for a family entertainment center.</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 May 15, 2006 - $2,823,380.24.  Total Debt Service Requirements for 2006: $1,349,070.00.  Capital projects funds available May 15, 2006 - $140,078.99.  General Operating: Previous cash balance April 17, 2006 - $13,823.09 total deposits $54,732.14.  Beginning cash balance May 15, 2006 - $65,978.77.  General Operating Funds available May 15, 2006 - $1,811,276.30.  Included copy of budget for fiscal year ending September 30, 2006, Investment Report and Tex Pool Performance sheet.    Pledge security report in good shape.  Haven't received Reliant Energy credits.  Made third request for address change.  Signature card presented for bank signatures.  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>     </B></div> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Contractor that will be doing the work has moved in.  Dusty updated the board on the chlorine level failure in chlorine system.  This is the 3rd write up and he is responding to Harris County Pollution Control and working on a remedy.  They are changing from chlorine to bleach and have moved the changeover up as a priority on the repair list.</div> <bR> <div>  </div> <div> <B><U>ADOPT RESOLUTION AUTHORIZING USE OF SURPLUS FUNDS FOR CINCO PLANT IMPROVEMENT PROJECT</U></B></div> <div>      </div> <div>      Motion made to adopt resolution to use remainder of construction funds to pay for treatment plant repairs/upgrades.  After discussion, upon motion duly made, seconded and unanimously carried, the board approved resolution.  Terry will transfer funds to operating account.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div>      N/A</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      N/A</div> <bR> <div> After concluding and there being no further business to come before the board, the meeting was adjourned at 7:40 p.m.</div> <bR> <bR> <div>                                  _______________________________</div> <div>                                        Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> <bR> </td> </tr></table></body>