Minutes February 18, 2008

<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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p.m. on February 18, 2008, 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.; Dusty Lane of Eco-Resources, Inc.; Brenda McLaughlin of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc.; Mark Brooks of Young & Brooks, Greg Sissel with BKD, and Noah Worley of Cinco, LTD.</div> <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 January 21, 2008 meeting were approved.</div> <bR> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC;</U></B></div> <bR> <div>      None</div> <bR> <div> <B><U>ESTABLISH TAX EXEMPTIONS AND ADOPT TAX COLLECTION PENALTY:</U></B></div> <bR> <div>           The Board reviewed the current exemptions and discussed a 20% collection penalty on delinquent taxes.  After discussion and upon motion duly made, seconded and unanimously carried, the Board adopted the attached resolutions keeping the tax exemptions the same: Homestead 20% of value, plus $30,000 for persons over 65 or disabled, and also approved the 20% penalty.</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 to the Board.  Taxes Receivable 8/31/2007: $17,217.07, Reserve for Uncollectibles $999.76; Adjustments $2.582.38.  Original 2007 Tax Levy: $1,158,056.50, Adjustments $70,522.01.  Total Taxes Receivable: $1,247,378.20.  Prior Years Taxes Collected $5,342.31; 2007 Taxes Collected $1,133,583.11.  Taxes Receivable at 1/31/2008: $108,452.78.  2007 Receivables: Debt Service $55,229.88; Maintenance $39,765.52.  Month of 1/2008: Beginning Cash Balance $482,139.41; Total Receipts $606,685.90, Total Disbursements $470,808.99, Cash Balance at 1/31/2008 $618,016.32.  Total Disbursements for the month of February 2008: $587,128.40, Remaining Cash Balance $30,887.92.  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, 99.798% for 2005, 99.335% for 2006 and 92.268% for 2007.  Brenda reported there is approximately $4 million (15 accounts) that is uncertified.</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>           Greg Sissel presented the audit for the District's 2007 fiscal year end and gave a review of the Financial Statement. After review and discussion and upon motion duly made, seconded and unanimously carried, the Board approved the audit for FYE 2007 as presented.</div> <bR> <div> <B><U>OPERATOR'S REPORT;</U></B></div> <bR> <div>           Dusty Lane of Eco-Resources, Inc., the District's Operator, reported on the Districts operations and facilities, and presented the January 2008 Operations Report.  Total Connections were 1501.  Meter Installations and Inspections for Dec 14 - Jan 13:  New Taps Installed - 2; 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 Jan/2008.  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 15,287,000 at Water Plant #1, Total Supplied - 15,287,000, Daily Average - 509,567.  Subsidence Information: Estimated Number of Months Available - 9.58, Permit Months Remaining - 8, Percent of Permitted Production - 55.62.  Water Accountability is at 95.8 for 12/06/07 - 01/08/08 and 98.1 for the Four Month Average.  Total Operations Charges $18,988.25.  Actual work related costs - $8,700.00 for repairs.  Total Current Billing $59,220.01.  Total Aged Receivables $17,221.32.  Total Accounts Receivables $76,441.33.  Facility Checklist Completed: Water Plant #1 01/25/08.  Inspections Completed: Fire Hydrants 06/28/07.  Total Deposits for January 2008 $71,363.93.  Disconnects/Reconnects Income was $46.64. Pull Fees: totals $0.00.  Dusty 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 this month.  </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, presented the engineers report.  Royal Montreal project is almost completed.  They need a lot of clean up for inspection.  He has received drawings for Thai Spice and Little Caesars Pizza, which will be located north of Highland Knolls.  Marvin also reported the Storm Water Pollution letter did make the deadline.  </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 February 18, 2008 - $1,806,226.24.  Total Debt Service Requirements for 2008: $1,413,182.50.  General Operating: Previous Cash Balance January 21, 2008 - $1,301.17, Total Deposits $347,755.55.  Beginning Cash Balance February 18, 2008 - $54,023.72.  General Operating Funds available February 18, 2008 - $2,139,639.17.  Terry included copies of the Debt Service Calculations for Yield Restriction Report, Cornerstones Energy Report, the Cinco Regional WWTP Improvements Report, Budget for Fiscal Year Ending September 30, 2008, the Investment Report and the Tex Pool Performance sheet.  The Board also discussed the North Ft. Bend Water actual vs. budget.</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 AGREEMENT REGARDING ENCROACHMENT FOR ROYAL MONTREAL BUSINESS PARK</U></B></div> <bR> <div> The Board reviewed a drawing depicting the proposed encroachments.  Mark Brooks presented the standard agreement for the Board's approval.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the signing of the Encroachment Agreement.</div> <bR> <div>  </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH DIRECTORS ELECTION;</U></B></div> <bR> <div> John Irwin confirmed the Creekstone HOA Clubhouse is available for use for the election.  The Board still needs to locate staff for early voting and for Election Day.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved using the Creekstone HOA Clubhouse for the election.</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 on the Cinco repairs.  The plant improvement project is complete.  The cost to remove the two story tin enclosure for the belt unit and modify the electrical panel is $25,000.  Our portion is 33.3%.</div> <div>      </div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS;</U></B></div> <bR> <div>           Trees are trimmed.</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 7:46 p.m.</div> <bR> <bR> <div>                                                                                                                                _______________________________</div> <div>                                                                                                                                Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>