Minutes March 17, 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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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> <div> <B>CORNERSTONES M</B><FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" ><B>UNICIPAL UTILITY 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> March 17, 2008</div> <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 March 17, 2008, in accordance with the duly posted notice of said meeting, with a quorum of directors present as follows:</div> <bR> <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> Tony Garza, President</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, 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 February 18, 2008 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 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 $72,872.81.  Total Taxes Receivable: $1,249,729.00.  Prior Years Taxes Collected $7,996.21; 2007 Taxes Collected $1,161,789.61.  Taxes Receivable at 02/29/2008: $79,943.18. 2007 Receivables: Debt Service $40,1997.50; Maintenance $28,942.20.  Month of 2/2008: Beginning Cash Balance $618,016.32; Total Receipts $33,582.73, Total Disbursements $587,128.40, Cash Balance at 02/29/2008 $64,470.65.  Total Disbursements for the month of March 2008: $42,999.84, Remaining Cash Balance $21,470.81.  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, 99.801% for 2005, 99.532% for 2006 and 94.383% for 2007.  </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 on the Districts operations and facilities, and presented the February 2008 Operations Report.  Total Connections were 1502.  Meter Installations and Inspections for Jan 14 - Feb 13:  New Taps Installed - 0; Sewer Inspections Completed - 1; Builder Inspections completed - 0; Customer Service Inspections completed - 0; Net Rental Meter Change - +1.  The required 7 samples were taken during Feb/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 14,520,000 at Water Plant #1, Total Supplied - 14,520,000, Daily Average - 500,690.  Subsidence Information: Estimated Number of Months Available - 9.09, Permit Months Remaining - 7, Percent of Permitted Production - 58.85.  Water Accountability is at 94.7 for 01/09/08 - 02/07/08 and 98.6 for the Four Month Average.  Total Operations Charges $13,872.34.  Actual work related costs - $5,559.00 for repairs.  Total Current Billing $56,146.05.  Total Aged Receivables $16,263.52.  Total Accounts Receivables $72,409.57.  Facility Checklist Completed: Water Plant #1 02/28/08.  Inspections Completed: Fire Hydrants 02/07/08.  Total Deposits for February 2008 $51,986.09.  Disconnects/Reconnects Income was $25.00. Pull Fees: totals $7.00.  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>           John Irwin talked to TCEQ and informed the Board that pool backwash should be drained into the sanitary system and not the storm sewer.  Dusty Lane informed the Board that this regulation has been in place for some time but is rarely enforced.</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 is complete.  They had their inspection and test made on the lines.  They will have the Harris County inspection soon.  The Cypress Car Spa #2 is underway.  He received and approved drawings for Golden Plaza, Thai Spice and Little Caesar's.</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 March 17, 2008 - $2,141,519.71; Demand Deposit Investments: Texpool - 1,909,548.94, Texas State Bank - 136,970.77; Total Debt Service Requirements for 2008: $1,413,182.50; General Operating: Previous Cash Balance February 18, 2008 - $6,926.50; Total Deposits $102,733.50; Beginning Cash Balance March 17, 2008 - $108,824.91; General Operating Funds available March 17, 2008 - $2,340,630.34.  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.  Terry informed the Board Tony Garza requested checks for MUD 81 and Cinco Regional Operating Committee meetings to be issued and mailed to him.</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, and also approved checks to be issued and mailed to Tony Garza.</div> <bR> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH DIRECTORS ELECTION INCLUDING POSSIBLY ADOPT ORDER FOR CANCELLATIN OF ELECTION;</U></B></div> <bR> <div> The Cornerstone MUD election registration deadline was 5:00 pm March 17, 2008.  No candidates signed up other than the incumbents.  Mark Brooks prepared documents to cancel the election and presented them to the Board for approval.</div> <bR> <div> Mark Brooks also presented the North Ft. Bend Water Authority ballot and certification forms.  The deadline for the District's vote is the end of April.  </div> <bR> <div> After discussion, upon motion duly made, seconded and unanimously carried, the Board adopted the attached Order canceling the Cornerstones MUD election, and adopted the attached Resolution casting the District's vote for Chip Norris as a candidate for the North Ft. Bend Water Authority board of directors.</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> Dusty Lane reported the tin shed has been leveled and removed. </div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS;</U></B></div> <bR> <div>           Chip Norris reported that the Chesterfield HOA is repairing the lock and closure on the gate once more.</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 7:29 p.m.</div> <bR> <bR> <div>                                                                                                                               _______________________________</div> <div>                                                                                                                               Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>