Minutes October 15, 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 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> <bR> <div> <B>CORNERSTONES MUNICIPAL U</B><FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" ><B>TILITY DISTRICT</B></FONT></div> <DIV ALIGN="LEFT"></DIV> <div> <B>Cornerstones Municipal Utility District</B></div> <div> Minutes of Meeting of Board of Directors</div> <div> October 15, 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 October 15, 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.; Dusty Lane of Eco-Resources, Inc.; Bob Leared of Bob Leared Interests, Mark Brooks of Young & Brooks, Doug Knopka of Cinco, LTD, and Rebecca Marcucci with Legacy.</div> <bR> <div>  </div> <div> The meeting was called to order at 7:00 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 September 17, 2007 meeting were tabled until next month for review.</div> <bR> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div>      None</div> <bR> <div> <B><U>LEGACY REPORT AND AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH PURCHASE OF ELECTRICITY</U></B></div> <bR> <div>      Rebecca Marcucci of Legacy presented the Rate Optimization Report to the Board.  The current contract expires in December of 2008.  Motion duly made, seconded and unanimously carried to go with the lowest provider and to extend the contract for one year (1/09-12/09).  The Board designated John Irwin as the District's representative to sign the contract.</div> <bR> <div> <B><U>PUBLIC HEARING/ADOPT TAX RATE</U></B></div> <bR> <div>      Board President Garza announced that one purpose of this board meeting is to conduct a public hearing on the District's proposed tax rate for 2007.  The board noted that the District tax assessor has published the required notice for the public hearing and that the public hearing is also noted on the agenda for this board meeting.  The board reviewed discussions at the previous meeting leading to the proposed tax rate as reflected in the published notice.  President Garza then declared the public hearing open and invited questions and comments from the public.  There were no questions or comments from the public.  There being no members of the public in attendance, the public hearing was closed.</div> <bR> <div> The board then considered the attached Order Establishing Ad Valorem Tax Rate for 2007, which was reviewed by the board, passed, and adopted upon motion duly made, seconded and unanimously carried.  The board was also presented with an Amendment to District Information Form reflecting the new tax rate, which was reviewed and approved upon motion duly made, seconded and unanimously carried.  The directors present were authorized to execute the Amendment to District Information Form.</div> <bR> <div>      </div> <div> <B><U>TAX ASSESSOR/COLLECTOR'S REPORT</U></B></div> <bR> <div>      Bob Leared of Bob Leared Interests, the District's Tax Assessor/Collector, presented the Tax Assessor/Collector report to the Board.  Taxes Receivable 8/31/2007: $17,217.07, reserve for uncollectables $999.76; adjustments $0.00.  Original 2007 Tax Levy: $0.00, adjustments $0.00.  Total Taxes Receivable: $16,217.31.  Prior years taxes collected $1,870.12, 2007 taxes collected $0.00.  Taxes Receivable at 9/31/2007: $14,347.19.  2007 Receivables: Debt Service $0.00; Maintenance $0.00.  Month of 9/2007: beginning cash balance $28,660.62 total receipts $2,667.07, total disbursements $6,197.48, cash balance at 9/30/2007 $25,130.21.  Total Disbursements for the month of October 2007 $3,248.78, remaining cash balance $21,881.43.  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, 99.945% for 2004, 99.790% for 2005 and 99.274% 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 payments 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 September 2007 Operations Report.  Total connections were 1495.  Meter installations and inspections for Aug 14 - Sep 13:  New taps Installed - 0; Sewer inspections completed - 0; Builder inspections completed - 0; Customer Service inspections completed - 0; Net Rental Meter Change - +1.  The required 7 samples were taken during 9/2007.  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 23,289,000 at Water Plant #1, Total supplied - 23,289,000, Daily Average - 776,300.  Subsidence Information: Estimated number of months available - 7.73, Permit months remaining - 3, Percent of permitted production - 53.80.  Water Accountability is at 103.9 for 8/3/07 - 9/2/07 and 96.2 for the four month average.  Total Operations Charges $18,236.  Total Current Billing $66,863.52.  Total Aged Receivables $11,199.93.  Total Accounts Receivables $78,063.45.  Facility Checklist Completed: Water Plant #1 09/13/07.  Inspections Completed: Fire Hydrants on 06/28/07.  Total deposits for September 2007 $52,766.22.  Disconnects/Reconnects income was $275.00. Pull Fees: totals $140.00.  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.  </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 Zahradnik of Landev Engineers, Inc., the District's Engineer, reported on activity in the District.    Received two sets of plans on Car Wash Cypress Station but Marvin hasn't had a chance to look at them.   He has approved the plans for Royal Montreal Business Park.</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 October 15, 2007 - $1,473,270.27.  Total Debt Service Requirements for 2007: $1,354,107.50.  General Operating: Previous cash balance September 17, 2007 - $3,991.72, total deposits $64,773.64.  Beginning cash balance October 15, 2007 - $68,318.32.  General Operating Funds available October 15, 2007 - $1,890,508.40.  Included copies of Cornerstones Energy Report, the Budget for fiscal year ending September 30, 2007, Proposed Operating Budget for fiscal year 2008, the Investment Report, the Tex Pool Performance sheet and the Deposit/Collateral Report by District.</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>CONSIDER AND POSSIBLY APPROVE NEW CONTRACT FOR BOOKKEEPING SERVICES</U></B></div> <bR> <div> Terry Holland of Myrtle Cruz, the District's Bookkeeper, requested an increase in bookkeeping fees from $800.00 to $895.00 per month.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the Bookkeepers monthly fee increase to $895.00 and signed the contract.</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> <div>  </div> <div> Tony Garza reported nothing new.  They are having a problem with the bleaching unit and are working on getting it resolved.  No pay estimates this month but should have them next month.  Probably need to plan on hydro tank painting in the spring.  Discussed surface water vs. additional water well.</div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div>      N/A</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Doug Konopka reported that Mr. Japerelle has closed on the tract for the Cypress Station Car Wash.  </div> <bR> <div> After concluding and there being no further business to come before the Board, the meeting was adjourned at 7:49 p.m.</div> <bR> <bR> <div>                                                                                                                         _______________________________</div> <div>                                                                                                                         Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>