Minutes August 21, 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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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> John Irwin, Secretary</div> <div> Darryl Box, Investment Officer</div> <bR> <div> and being absent: </div> <bR> <div> E.C. Norris, Assistant Secretary</div> <bR> <div> Also present were Kathie Naumow, Recording Secretary; Terry Holland of Myrtle Cruz, Inc.; Brenda McLaughlin of Bob Leared Interests; Dusty Lane of Eco-Resources, Inc.; Marvin Zahradnik of Landev Engineers, Inc.; Scott Townsend of Young & Brooks; and Greg Sissell with BKD, LLP.</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 July 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>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Brenda McLaughlin 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 $98,374.99.  Total Taxes Receivable: $1,288,350.36.  Prior years taxes collected $11,280.85, 2005 taxes collected $1,241,799.47.  Taxes Receivable at 7/31/2006: $35,270.04.  2005 Receivables: Debt Service $22,259.95; Maintenance $7,219.44.  Month of 7/2006: beginning cash balance $36,747.22 total receipts $9,862.38, total disbursements $15,652.10, cash balance at 7/31/2006 $30,957.50.  Total Disbursements for the month of August 2006 $13,871.57, remaining cash balance $17,085.93.  The district is 99.978% collected for 2001 taxes, 99.929% for 2002 taxes, 99.957% for 2003 taxes, 99.712% for 2004 and 97.681% for 2005.  Presented board with a list of the top delinquent taxpayers.  Informed the board there is one small parcel still to be certified.  Otherwise all are complete and should have certified amounts next month.</div> <bR> <div>  </div> <div> After discussion and 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 July 2006 Operations Report.  Total connections were 1494.  Meter installations and inspections for Jun 14 - Jul 13:  New taps Installed - 0; Abandoned connections - 0; Sewer inspections completed - 3; Builder Inspections completed - 1; 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 7/2006.  TCEQ Chemical Analysis: Metals 8/25/99; Radio-Chemicals 08/11/05; Volatile Organic Chemicals 8/11/05; Minerals 5/18/06.  Water production: Pumped 26,103,000 at Water Plant #1, Total supplied - 26,103,000, Daily Average - 942,032.  Subsidence Information: Estimated number of months available - 6.7, Permit months remaining - 5, Percent of permitted production - 51.07.  Water Accountability is at 95% Year to Date.  Total Operations Charges $23,079.62.  Actual work related costs - $1,469.00.  Total Current billing -  $67,106.70.  Total Aged Receivables $17,184.12.  Total Accounts Receivables $84,290.82.  Facility Checklist completed: Water Plant #1 on 7/31/2006.  Inspections Completed: Fire Hydrants on 6/15/2006.  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> Received one customer request for sewer adjustment due to pool installation.  EMS collections were high ($2,400) this month and Dusty will verify amount.  </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the board approved the operator's report and denied 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 request for utilities or service this month.  Pulled plans for Kenlake and Grand Junction area that floods.  Found that two sets of inlets are low.  Can look at adding a couple of inlets to see if it would help drainage or reroute some inlets to the Highland Knolls line.  Board will have to look at costs.  Doug Knopka updated the board on projects in the district.   </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 August 21, 2006 - $2,871,590.90.  Total Debt Service Requirements for 2006: $1,349,070.00.  General Operating: Previous cash balance July 17, 2006 - $6,175.86 total deposits $88,981.71.  Beginning cash balance August 21, 2006 - $94,865.57.  General Operating Funds available August 21, 2006 - $1,958,236.55.  Included copy of budget for fiscal year ending September 30, 2006, Investment Report and Tex Pool Performance sheet.   Board requested removal of election expenses from proposed budget.  Board will review Budget and finalize next month.</div> <bR> <div> 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>HIRE AUDITOR</U></B></div> <bR> <div>      Greg Sissel presented proposal for auditor cost of $11,500 + P&D.  Represents a $500 increase (4%).  After discussion, upon motion duly made, seconded and unanimously carried, the board approved the hiring of BKD as the district's auditor.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>      Tony gave copies of the Cinco Regional Operating Committee minutes to the board for their review.  Chlorine problem - Dusty presented solution and will have Brown and Gay look at it and give cost estimates.  Distributed Brown and Gay report for plant upgrades.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS OR OTHER DISTRICT LAND</U></B></div> <bR> <div> Tony talked to Landscaper.  They completed irrigation check on sprinkler system.  Some heads are below grade and need to be raised up and a couple need repairing.  Cost is approx $1,000.00.  Discussed possible solutions for graffiti - possibly plant foliage along wall.  Will continue to look at other alternatives.</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 7:51 p.m.</div> <bR> <div>                                                                                                                               _______________________________</div> <div>                                                                                                                               Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>