Minutes May 19, 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 May 19, 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 DHK Development, Inc.</div> <bR> <div>  </div> <div> The meeting was called to order at 7:01 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 April 21, 2008 meeting were approved.</div> <bR> <div>  </div> <div> <B><U>QUESTIONS/COMMENTS FROM THE PUBLIC</U></B></div> <bR> <div>      N/A</div> <bR> <div> <B><U>ISSUE CERTIFICATES OF ELECTION AND EXECUTE STATEMENTS OF ELECTED/APPOINTED OFFICER AND OATHS OF OFFICE</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried the Board passed motion authorizing the signing of the certificate of election.</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 $74,165.51.  Total Taxes Receivable: $1,251,021.70.  Prior Years Taxes Collected $8,555.21; 2007 Taxes Collected $1,193,956.51.  Taxes Receivable at 04/30/2008: $48,509.98. 2007 Receivables: Debt Service $22,247.38; Maintenance $16,018.12.  Month of 4/2008: Beginning Cash Balance $33,266.54; Total Receipts $26,184.60, Total Disbursements $6,568.68, Cash Balance at 04/30/2008 $52,882.46.  Total Disbursements for the month of May 2008: $31,825.26, Remaining Cash Balance $21,057.20.  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, 99.802% for 2005, 99.573% for 2006 and 96.895% for 2007.  Brenda also presented to the Board the top Delinquent Taxpayers and from Perdue, Brandon, Fielder, Collins & Mott L.L.P. the Delinquent Tax Report.  Informed the Board the second set of delinquent statements will go out this week.</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 SouthWest Water Company, the District's Operator, reported on the Districts operations and facilities, and presented the April 2008 Operations Report.  Total Connections were 1500.  Meter Installations and Inspections for Mar 14 - Apr 13:  New Taps Installed - 0; Sewer Inspections Completed - 2; Builder Inspections completed - 0; Customer Service Inspections completed - 0; Net Rental Meter Change - 0.  The required 7 samples were taken during April-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 22,878,000 at Water Plant #1, Total Supplied - 22,878,000, Daily Average - 762,600.  Subsidence Information: Estimated Number of Months Available - 7.04, Permit Months Remaining - 5, Percent of Permitted Production - 68.06.  Water Accountability is at 93.9 for 03/11/08 - 04/08/08 and 94.4 for the Four Month Average.  Total Operations Charges $12,720.54.  Actual work related costs - $4,561.00 for repairs.  Total Current Billing $60,338.53.  Total Aged Receivables $11,729.00.  Total Accounts Receivables $72,067.53.  Facility Checklist Completed: Water Plant #1 04/29/08.  Inspections Completed: Fire Hydrants 02/07/08.  Total Deposits for April 2008 $53,871.34.  Disconnects/Reconnects Income was $225.00. 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.  One customer did call to let them know they would be late 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.  He is waiting on Harris County to schedule inspection of Royal Montreal.  Mr. Zahradnik discussed the Cypress Car Spa project.  They have run into a problem with Ft. Bend County Building Permit requesting letter that says they have approval from the District to tie into our system.  Mark Brooks provided a No Objection Letter to Fort Bend County Engineering from Cornerstones MUD regarding the Tolebi Station Subdivision Water and Sanitary Sewer service, informing them the Tolebi Station Subdivision Development will be served by Cornerstones MUD. Upon motion duly made, seconded and unanimously carried, the Board approved the signing of the No Objection Letter.  </div> <bR> <div> Request received by Memorial MUD from HEB's representative requesting that the District service them with water.  Memorial's attorney called Mark Brooks asking if Cornerstones MUD would consider increasing service equivalent to 6.1 houses for a Car Wash at HEB.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved water usage increase to HEB.</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.  Demand Deposit Investments: Texpool - 1,918,061.87, Texas State Bank - $31,087.11; Debt Service Funds available May 19, 2008 - $2,044,148.98; Total Debt Service Requirements for 2008: $1,413,182.50; General Operating: Previous Cash Balance April 21, 2008 - $492.55; Total Deposits $61,177.48; Beginning Cash Balance May 19, 2008 - $60,603.66; General Operating Funds available May 19, 2008 - $2,360,973.00.  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.  CD Agreement presented for signature. </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 the signing of the CD agreement.</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 on the Cinco Regional Operating Committee.  They authorized installing new filter system on blowers.  They will also need to take down one basin to see that the problem is with the system. </div> <bR> <div> Chip Norris updated the Board on results of the NFBWA election.  He lost to Bob Patton.  They are close to signing a deal with the City of Houston.  They are currently reviewing contracts. </div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div>      John Irwin will talk to landscaper on bids to treat for ants.  After discussion and upon motion duly made, seconded and unanimously carried, the Board authorized John Irwin to approve up to $4,000.00 for ant treatment service.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Darryl Box reported possible cave in of storm sewer located on Mason south of Sonic in front of 24 Hour Fitness.  If the problem is in the esplanade the County should handle it, if it is on private property of a business it should be handled by the owner.  John Irwin will try and pinpoint the location and Dusty Lane can get someone to check it out.</div> <bR> <div>      After concluding and there being no further business to come before the Board, the meeting was adjourned at 7:52 p.m.</div> <bR> <bR> <div>                                                                                                                                 _______________________________</div> <div>                                                                                                                                 Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>