Minutes December 18, 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 March 15, 2004</U></A></div> <div> <A HREF="id199.htm" TARGET="_top" TITLE="Minutes April 19, 2004"><U>Minutes April 19, 2004</U></A></div> <div> <A HREF="id209.htm" TARGET="_top" TITLE="Minutes May 17, 2004"><U>Minutes May 17, 2004</U></A></div> <div> <A HREF="id210.htm" TARGET="_top" TITLE="Minutes June 21, 2004"><U>Minutes June 21, 2004</U></A></div> <div> <A HREF="id211.htm" TARGET="_top" TITLE="Minutes July 19, 2004"><U>Minutes July 19, 2004</U></A></div> <div> <A HREF="id212.htm" TARGET="_top" TITLE="Minutes July 26, 2004"><U>Minutes July 26, 2004</U></A></div> <div> <A HREF="id213.htm" TARGET="_top" TITLE="Minutes August 16, 2004"><U>Minutes August 16, 2004</U></A></div> <div> <A HREF="id214.htm" TARGET="_top" TITLE="Minutes September 20, 2004"><U>Minutes September 20, 2004</U></A></div> <div> <A HREF="id215.htm" TARGET="_top" TITLE="Minutes October 18, 2004"><U>Minutes October 18, 2004</U></A></div> <div> <A HREF="id217.htm" TARGET="_top" TITLE="Minutes November 15, 2004"><U>Minutes November 15, 2004</U></A></div> <div> <A HREF="id218.htm" TARGET="_top" TITLE="Minutes December 20, 2004"><U>Minutes December 20, 2004</U></A></div> <div> <A HREF="id219.htm" TARGET="_top" TITLE="Minutes January 17, 2005"><U>Minutes January 17, 2005</U></A></div> <div> <A HREF="id220.htm" TARGET="_top" TITLE="Minutes February 8, 2005"><U>Minutes February 8, 2005</U></A></div> <div> <A HREF="id221.htm" TARGET="_top" TITLE="Minutes February 21, 2005"><U>Minutes February 21, 2005</U></A></div> <div> <A HREF="id228.htm" TARGET="_top" TITLE="Minutes March 21, 2005"><U>Minutes March 21, 2005</U></A></div> <div> <A HREF="id229.htm" TARGET="_top" TITLE="Minutes April 18, 2005"><U>Minutes April 18, 2005</U></A></div> <div> <A HREF="id235.htm" TARGET="_top" TITLE="Minutes May 16, 2005"><U>Minutes May 16, 2005</U></A></div> <div> <A HREF="id236.htm" TARGET="_top" TITLE="Minutes June 14, 2005"><U>Minutes June 14, 2005</U></A></div> <div> <A HREF="id237.htm" TARGET="_top" TITLE="Minutes June 20, 2005"><U>Minutes June 20, 2005</U></A></div> <div> <A HREF="id238.htm" TARGET="_top" TITLE="Minutes July 18, 2005"><U>Minutes July 18, 2005</U></A></div> <div> <A HREF="id239.htm" TARGET="_top" TITLE="Minutes August 15, 2005"><U>Minutes August 15, 2005</U></A></div> <div> <A HREF="id244.htm" TARGET="_top" TITLE="Minutes September 19, 2005"><U>Minutes September 19, 2005</U></A></div> <div> <A HREF="id245.htm" TARGET="_top" TITLE="Minutes October 17, 2005"><U>Minutes October 17, 2005</U></A></div> <div> <A HREF="id246.htm" TARGET="_top" TITLE="Minutes November 21, 2005"><U>Minutes November 21, 2005</U></A></div> <div> <A HREF="id248.htm" TARGET="_top" TITLE="Minutes December 19, 2005"><U>Minutes December 19, 2005</U></A></div> <div> <A HREF="id249.htm" TARGET="_top" TITLE="Minutes January 16, 2006"><U>Minutes January 16, 2006</U></A></div> <div> <A HREF="id251.htm" TARGET="_top" TITLE="Minutes February 20, 2006"><U>Minutes February 20, 2006</U></A></div> <div> <A HREF="id254.htm" TARGET="_top" TITLE="Minutes March 20, 2006"><U>Minutes March 20, 2006</U></A></div> <div> <A HREF="id255.htm" TARGET="_top" TITLE="Minutes April 17, 2006"><U>Minutes April 17, 2006</U></A></div> <div> <A HREF="id260.htm" TARGET="_top" TITLE="Minutes May 15, 2006"><U>Minutes May 15, 2006</U></A></div> <div> <A HREF="id261.htm" TARGET="_top" TITLE="Minutes June 19, 2006"><U>Minutes June 19, 2006</U></A></div> <div> <A HREF="id262.htm" TARGET="_top" TITLE="Minutes July 17, 2006"><U>Minutes July 17, 2006</U></A></div> <div> <A HREF="id263.htm" TARGET="_top" TITLE="Minutes August 21, 2006"><U>Minutes August 21, 2006</U></A></div> <div> <A HREF="id264.htm" TARGET="_top" TITLE="Minutes September 18, 2006"><U>Minutes September 18, 2006</U></A></div> <div> <A HREF="id267.htm" TARGET="_top" TITLE="Minutes October 16, 2006"><U>Minutes October 16, 2006</U></A></div> <div> <A HREF="id269.htm" TARGET="_top" TITLE="Minutes November 20, 2006"><U>Minutes November 20, 2006</U></A></div> <div> <B>Minutes December 18, 2006</B></div> <div> <A HREF="id275.htm" TARGET="_top" TITLE="Minutes January 15, 2007"><U>Minutes January 15, 2007</U></A></div> <div> <A HREF="id276.htm" TARGET="_top" TITLE="Minutes February 19, 2007"><U>Minutes February 19, 2007</U></A></div> <div> <A HREF="id280.htm" TARGET="_top" TITLE="Minutes March 19, 2007"><U>Minutes March 19, 2007</U></A></div> <div> <A HREF="id277.htm" TARGET="_top" TITLE="Minutes April 16, 2007"><U>Minutes April 16, 2007</U></A></div> <div> <A HREF="id283.htm" TARGET="_top" TITLE="Minutes May 21, 2007"><U>Minutes May 21, 2007</U></A></div> <div> <A HREF="id284.htm" TARGET="_top" TITLE="Minutes June 18, 2007"><U>Minutes June 18, 2007</U></A></div> <div> <A HREF="id287.htm" TARGET="_top" TITLE="Minutes July 16, 2007"><U>Minutes July 16, 2007</U></A></div> <div> <A HREF="id290.htm" TARGET="_top" TITLE="Minutes August 20, 2007"><U>Minutes August 20, 2007</U></A></div> <div> <A HREF="id291.htm" TARGET="_top" TITLE="Minutes September 17, 2007"><U>Minutes September 17, 2007</U></A></div> <div> <A HREF="id292.htm" TARGET="_top" TITLE="Minutes October 15, 2007"><U>Minutes October 15, 2007</U></A></div> <div> <A HREF="id295.htm" TARGET="_top" TITLE="Minutes November 19, 2007"><U>Minutes November 19, 2007</U></A></div> <div> <A HREF="id296.htm" TARGET="_top" TITLE="Minutes December 17, 2007"><U>Minutes December 17, 2007</U></A></div> <div> <A HREF="id297.htm" TARGET="_top" TITLE="Minutes January 21, 2008"><U>Minutes January 21, 2008</U></A></div> <div> <A HREF="id298.htm" TARGET="_top" TITLE="Minutes February 18, 2008"><U>Minutes February 18, 2008</U></A></div> <div> <A HREF="id299.htm" TARGET="_top" TITLE="Minutes March 17, 2008"><U>Minutes March 17, 2008</U></A></div> <div> <A HREF="id304.htm" TARGET="_top" TITLE="Minutes April 21, 2008"><U>Minutes April 21, 2008</U></A></div> <div> <A HREF="id305.htm" TARGET="_top" TITLE="Minutes May 19, 2008"><U>Minutes May 19, 2008</U></A></div> <div> <A HREF="id308.htm" TARGET="_top" TITLE="Minutes June 16, 2008"><U>Minutes June 16, 2008</U></A></div> <div> <A HREF="id310.htm" TARGET="_top" TITLE="Minutes July 21, 2008"><U>Minutes July 21, 2008</U></A></div> <div> <A HREF="id313.htm" TARGET="_top" TITLE="Minutes August 18, 2008"><U>Minutes August 18, 2008</U></A></div> <div> <A HREF="id316.htm" TARGET="_top" TITLE="Minutes September 22, 2008"><U>Minutes September 22, 2008</U></A></div> <div> <A HREF="id317.htm" TARGET="_top" TITLE="Minutes September 26, 2008"><U>Minutes September 26, 2008</U></A></div> <div> <A HREF="id319.htm" TARGET="_top" TITLE="Minutes October 20, 2008"><U>Minutes October 20, 2008</U></A></div> <div> <A HREF="id322.htm" TARGET="_top" TITLE="Minutes November 17, 2008"><U>Minutes November 17, 2008</U></A></div> <div> <A HREF="id323.htm" TARGET="_top" TITLE="Minutes December 15, 2008"><U>Minutes December 15, 2008</U></A></div> <div> <A HREF="id325.htm" TARGET="_top" TITLE="Minutes January 19, 2009"><U>Minutes January 19, 2009</U></A></div> <div> <A HREF="id326.htm" TARGET="_top" TITLE="Minutes February 16, 2009"><U>Minutes February 16, 2009</U></A></div> <div> <A HREF="id328.htm" TARGET="_top" TITLE="Minutes March 16, 2009"><U>Minutes March 16, 2009</U></A></div> <div> <A HREF="id330.htm" TARGET="_top" TITLE="Minutes April 20, 2009"><U>Minutes April 20, 2009</U></A></div> <div> <A HREF="id334.htm" TARGET="_top" TITLE="Minutes May 18, 2009"><U>Minutes May 18, 2009</U></A></div> <div> <A HREF="id335.htm" TARGET="_top" TITLE="Minutes June 15, 2009"><U>Minutes June 15, 2009</U></A></div> <div> <A HREF="id338.htm" TARGET="_top" TITLE="Minutes July 20, 2009"><U>Minutes July 20, 2009</U></A></div> <div> <A HREF="id339.htm" TARGET="_top" TITLE="Minutes August 17, 2009"><U>Minutes August 17, 2009</U></A></div> <div> <A HREF="id340.htm" TARGET="_top" TITLE="Minutes September 21, 2009"><U>Minutes September 21, 2009</U></A></div> <div> <A HREF="id344.htm" TARGET="_top" TITLE="Minutes October 19, 2009"><U>Minutes October 19, 2009</U></A></div> <div> <A HREF="id346.htm" TARGET="_top" TITLE="Minutes November 16, 2009"><U>Minutes November 16, 2009</U></A></div> <div> <A HREF="id347.htm" TARGET="_top" TITLE="Minutes December 21, 2009"><U>Minutes December 21, 2009</U></A></div> <div> <A HREF="id349.htm" TARGET="_top" TITLE="Minutes January 18, 2010"><U>Minutes January 18, 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"> <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> December 18, 2006</div> <bR> <bR> <div>           The Board of Directors of Cornerstones Municipal Utility District (the “District”) met at 805 Hidden Canyon Drive, Katy Texas 77450 in Harris County at 7:00 p.m. on December 18, 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> John Irwin, Secretary</div> <div> E.C. Norris, 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.; Brenda McLaughlin 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 7:05 p.m. 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 November 20, 2006 Meeting were approved as presented.</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 of Bob Leared Interests presented the Tax Assessor/Collector report.  Taxes Receivable 8/31/2006: $26,036.43, reserve for uncollectables $635.83; adjustments $126.16.  Original 2006 Tax Levy: $889,423.03, adjustments $350,101.50.  Total Taxes Receivable: $1,264,798.97.  Prior years taxes collected $8,931.17, 2006 taxes collected $69,171.75.  Taxes Receivable at 11/30/2006: $1,186,696.05.  2006 Receivables: Debt Service $859,851.05; Maintenance $310,501.73.  Month of 11/2006: beginning cash balance $12,334.60 total receipts $72,991.14, total disbursements $3,833.37, cash balance at 11/30/2006 $81,492.37.  Total Disbursements for the month of December 2006 $68,918.48, remaining cash balance $12,573.89.  The District is 99.978% collected for 2001 taxes, 99.930% for 2002 taxes, 99.957% for 2003 taxes, 99.862% for 2004, 99.020% for 2005 and 5.581% for 2006.  Brenda presented the Board with a list of the top delinquent taxpayers.  </div> <bR> <div>      Brenda asked the Board if they would like an aerial photo of the District.  After discussion, the Board decided against having an aerial photo taken this year.  She also informed the Board that the Bank of Texas is requesting a form to allow the Districts financial adviser BKD to get account information.</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; payment of the tax bills presented and authorized the Board Secretary to sign the form for the Bank of Texas.</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 November 2006 Operations Report.  Total connections were 1494.  Meter installations and inspections for Oct 14 - Nov. 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 11/2006.  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 19,323,000 at Water Plant #1, Total supplied - 19,323,000, Daily Average - 644,100.  Subsidence Information: Estimated number of months available - 2.5, Permit months remaining - 1, Percent of permitted production - 80.9.  Water Accountability is at 95% Year to Date.  Total Operations Charges $19,184.64.  Actual work related costs - $11,686.00 for repairs.  Total Current Billing $58,126.77.  Total Aged Receivables $15,286.07.  Total Accounts Receivables $73,142.84.  Facility Checklist completed: Water Plant #1 on 11/29/2006.  Inspections Completed: Fire Hydrants on 6/15/2006.  Total deposits for November were $65,647.76.  Disconnects/Reconnects income was $25.00.  Pull fees totaled $70.00.  Dusty provided copies of the Discharge Monitoring Report, with no numbers exceeded.  Dusty reported on repairs made and also presented the Board with a copy of the Cornerstones M.U.D. Delinquent List and commented everyone has been duly notified of their situation and it is being addressed.   Dusty also discussed EMS collections vs. checks paid out. </div> <bR> <div> Everything is back to normal at the plant.  There are no customer requests this month.  Dusty hasn't checked with his IT Department regarding having them handle the District website.  Dusty updated the board on the Cinco Regional Committee project.  A change order has been requested to retrofit the mechanical hydraulic system on the traveling bridge.  Our portion of the cost is estimated at $67,000 to $68,000.  Dusty will check on getting a copy of the schematic. </div> <bR> <div> Upon a motion duly made, seconded, and unanimously carried, the Board approved the Operator's Report, and with a vote of 4 to 1, the Board approved the change order for the retrofit of the hydraulic system with John Irwin opposed to the change order.   </div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin Zahradnik of Landev Engineers, Inc. the Districts Engineer, reported on activities in the District.  He received a request from Doshi Engineering for water and sanitary service on a 3.8 acre tract for Tajian Development.  Their tract is proposed as a retail shopping center.  Marvin informed the Board that the District does have the capacity, and the Board authorized issuance of a utility commitment letter for the project.  Doug Knopka updated the Board on projects in the District and informed the Board that the closing on the four (4) acre tract within the District by Blake Roberts is scheduled for this Thursday.  Doug will have cost estimates next month on the additional water/sewer and drainage necessary for the development of the 12 acre tract.   </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineer's 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 December 18, 2006 - $1,775,986.77.  Total Debt Service Requirements for 2007: $1,354,107.50.  General Operating: Previous cash balance November 20, 2006 - $5,070.01, total deposits $95,642.61.  Beginning cash balance December 18, 2006 - $92,536.10.  General Operating Funds available December 18, 2006 - $1,739,394.29. The Report included a copy of the Budget for fiscal year ending September 30, 2007, Investment Report, and Tex Pool Performance Sheet.  After discussion, upon motion duly made, seconded, and unanimously carried, the Board approved the Bookkeeper's Report, and payment of 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> The Board also authorized Dusty Lane to defer terminating service to delinquent accounts until after Christmas.</div> <bR> <div> <B>     </B></div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH POSSIBLE EARLY CALL OF DISTRICT BONDS</U></B></div> <bR> <div> Darryl Box discussed the 1996 Bond Issue with Jan Bartholomew at Dain Rauscher.  She recommended against an early payoff.  Darryl will discuss further with Jan.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B>     </div> <bR> <div>  </div> <div>      Discussed in Operator's Report.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div> The Board will get with the Districts Landscaper Junction Landscape Maintenance and Irrigation to complete the sprinkler repairs.</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 8:30 p.m.</div> <bR> <div>                                                                                                                              _______________________________</div> <div>                                                                                                                              Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>