Minutes July 16, 2007

<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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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> <A HREF="id350.htm" TARGET="_top" TITLE="Minutes February 15, 2010"><U>Minutes February 15, 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> July 16, 2007</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 July 16, 2007, 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>           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>           Gary Hughes, Vice President  </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.; Mark Brooks of Young & Brooks, Noah Worley of Cinco, LTD and John O'Donnell of Water Logic.</div> <bR> <div>  </div> <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 June 18, 2007 meeting were approved as presented. </div> <bR> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div>      None</div> <bR> <div> <B><U>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Brenda McLaughlin of Bob Leared Interests, the District's Tax Assessor/Collector, presented the Tax Assessor/Collector report.  Taxes Receivable 8/31/2006: $26,036.43, reserve for uncollectables $999.76; adjustments $92.91.  Original 2006 Tax Levy: $889,423.03, adjustments $430,289.03.  Total Taxes Receivable: $1,344,481.64.  Prior years taxes collected $18,721.71, 2006 taxes collected $1,299,489.63.  Taxes Receivable at 6/30/2007: $26,630.30.  2006 Receivables: Debt Service $14,857.30; Maintenance $5,365.13.  Month of 6/2007: beginning cash balance $35,670.98 total receipts $3,773.85, total disbursements $8,195.76, cash balance at 6/30/2007 $31,349.07.  Total Disbursements for the month of July 2007 $12,933.66, remaining cash balance $18,315.41.  The District is 99.999% collected for 1999, 100.00% collected for 2000, 99.978% collected for 2001 taxes, 99.940% for 2002 taxes, 99.976% for 2003 taxes, 99.901% for 2004, 99.704% for 2005 and 98.468% for 2006. </div> <bR> <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 the Districts operations and facilities, and presented the June 2007 Operations Report.  Total connections were 1494.  Meter installations and inspections for May 14 - June 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 - GPD.  The required 7 samples were taken during 6/2007.  TCEQ Chemical Analysis: Metals 12/4/06; Radio-Chemicals 08/11/05; Volatile Organic Chemicals 8/11/05; and Minerals 5/18/06.  Water Production: Pumped 21,321,000 at Water Plant #1, Total supplied - 21,321,000, Daily Average - 710,700.  Subsidence Information: Estimated number of months available - 11.73, Permit months remaining - 6, Percent of permitted production - 33.84.  Water Accountability is at 92.27 for 5/4/07 - 6/5/07 and 94.2 for the four month average.  Total Operations Charges $11,711.81.  Actual work related costs - $4,196.00 for repairs.  Total Current Billing $66,364.65.  Total Aged Receivables $4,326.02.  Total Accounts Receivables $70,690.67.  Inspections Completed: Fire Hydrants on 12/30/2006.  Total deposits for June $60,425.37.  Disconnects/Reconnects income was $275.00. Pull Fees: totals $0.00.  Provided Discharge Monitoring Report, number exceeded all zero.  Reported on repairs made and 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 and the Consumers Report and denied customer requests for adjustments.</div> <bR> <div> <B><U>ENGINEER'S REPORT</U></B></div> <bR> <div> Marvin Zahradnik of Landev Engineers, Inc., the District's Engineer gave the Engineer's report.  He received Friday on short notice a request for capacity for tract of land just north of the drainage ditch on Mason Road.  Mr. Robert J. Rimes has a contract to purchase one acre for Cypress Station Carwash & Lube center.  He is requesting 10,000 gallons of water per day and sanitary sewer capacity.  The requested capacity is equal to 32 residential connections. Marvin informed the Board that we do have the capacity. </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers report and capacity for Mr. Rimes.  </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 July 16, 2007 - $2,598,288.08.  Total Debt Service Requirements for 2007: $1,354,107.50.  General Operating: Previous cash balance June 18, 2007 - $6,629.48, total deposits $57,814.34.  Beginning cash balance July 16, 2007 - $63,943.72.  General Operating Funds available July 16, 2007 - $1,878,680.71.  Included a copy of the Budget for fiscal year ending September 30, 2007, the Investment Report and the Tex Pool Performance sheet.  Next month Terry will have the first draft copy of the budget for the next fiscal year.</div> <bR> <div> After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the Bookkeepers 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.  </div> <bR> <div> 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>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B>     </div> <bR> <div>  </div> <div> Tony Garza reported that everything is going well with the upgrades at the plant.  $160,000 left in contract that needs to be completed in July and August.  He also reported that there is enough money in the account to cover the rest of the work.  Total cost $1,626,080.00 when all is completed.  The fine bubbler system started partial operation in June and will be fully operational in December.  The electrical cost currently $20,000 vs. $30,000 to $40,000 previously.  The usage dropped from 300,000 kw hours to 200,000 kw hours.  Dusty Lane updated the board on the traveling bridge.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div>            John O'Donnell with Water Logic gave presentation on smart irrigation control technologies.  It would require 1 ET manager per controller.  $741.00 for the unit with a $225.00 or more yearly fee for each controller.  It will also require meters at connections.  John Irwin will work with John O'Donnell and get the exact pricing for the Greenbelt.</div> <bR> <div>  </div> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>             No pending business to report on.  </div> <bR> <div>             After concluding and there being no further business to come before the Board, the meeting was adjourned at 8:05 p.m.</div> <bR> <div>                               _______________________________</div> <div>                                         Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>