Minutes June 16, 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 MUNICIPAL UTIL</B><FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" ><B>ITY 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> June 16, 2008</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 June 16, 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> Darryl Box, Investment Officer</div> <bR> <div> and being absent: </div> <bR> <div> E.C. Norris, Assistant Secretary</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 7:00 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 May 19, 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>ELECT OFFICERS</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board approved keeping officer positions as is which are:</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> <bR> <div> <B><U>APPROVE AMENDMENT NO. 3 TO WATER SUPPLY AGREEMENT WITH MEMORIAL MUD</U></B></div> <bR> <div> Mark Brooks presented Amendment No. 3 to the Amended and Restated Water Supply Contract between Memorial MUD and Cornerstones MUD for the Board's approval.  This will allow Cornerstones MUD to supply Memorial MUD with additional water supply. After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the signing of Amendment No. 3.</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 $2,643.67.  Original 2007 Tax Levy: $1,158,056.50, Adjustments $75,142.48.  Total Taxes Receivable: $1,252,059.96.  Prior Years Taxes Collected $8,555.21; 2007 Taxes Collected $1,200,932.71.  Taxes Receivable at 05/31/2008: $42,572.04. 2007 Receivables: Debt Service $18,759.46; Maintenance $13,506.81.  Month of 5/2008: Beginning Cash Balance $52,882.46; Total Receipts $8,096.53, Total Disbursements $31,825.26, Cash Balance at 05/31/2008 $29,153.73.  Total Disbursements for the month of June 2008: $7,781.08, Remaining Cash Balance $21,372.65.  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, 99.569% for 2006 and 97.384% for 2007.  Brenda informed the Board the 2007 delinquent accounts would be sent to Perdue, Brandon, Fielder, Collins & Mott L.L.P. the Delinquent Tax Attorney on July 1st.  Notices were sent out informing customers of the 20% penalty.</div> <bR> <div>  </div> <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 May 2008 Operations Report.  Total Connections were 1500.  Meter Installations and Inspections for April 14 - May 13:  New Taps Installed - 0; Sewer Inspections Completed - 1; Builder Inspections completed - 0; Customer Service Inspections completed - 0; Net Rental Meter Change - 0.  The required 7 samples were taken during May 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 29,384,000 at Water Plant #1, Total Supplied - 29,384,000, Daily Average - 947,871.  Subsidence Information: Estimated Number of Months Available - 5.45, Permit Months Remaining - 4, Percent of Permitted Production - 74.59.  Water Accountability is at 93.9 for 04/9/08 - 05/08/08 and 93.7 for the Four Month Average.  Total Operations Charges $13,954.07.  Actual work related costs - $5,325.00 for repairs.  Total Current Billing $67,451.39.  Total Aged Receivables $15,815.58.  Total Accounts Receivables $83,266.97.  Inspections Completed: Fire Hydrants 02/07/08.  Total Deposits for May 2008 $64,573.19.  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 back charges or 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.  No requests this month.  The inspection for Royal Montreal is scheduled for June 17, 2008 at 2:00 pm.  This should close out the contract. </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.  Time Deposit Investments: $95,000.00.  Demand Deposit Investments: Texpool - 1,921,919.65, Texas State Bank - $51,187.25; Debt Service Funds available June 16, 2008 - $2,068,106.90; Total Debt Service Requirements for 2008: $1,413,182.50; General Operating: Previous Cash Balance May 19, 2008 - $1,066.95; Total Deposits $70,093.34; Beginning Cash Balance June 16, 2008 - $70,189.00; General Operating Funds available June 16, 2008 - $2,367,392.38.  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.  </div> <bR> <div> Terry Holland received a Meter Removal Notice from Reliant Energy.  The ESI ID for the meter does not match any in the records.  Tony Garza will get with Reliant to see what meter they are referring to.</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 on the Cinco Regional Operating Committee.  No major news to report.  Blower #2 was reinstalled.  The filtration system went in Thursday.  John Irwin asked about the charges for work on chlorinating system at the Wastewater Treatment Plant.  It was worked on quite a bit in April.  Interest was double credited to each district, which needed to be repaid.</div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div>      John Irwin reported the ant treatment bid was $450.00 and Cornerstone Place's plant replacement and soil replacement bid was $975.00.  After discussion and upon motion duly made, seconded and unanimously carried, the Board authorized the ant treatment but will hold off until the fall on the plant and soil replacement.  </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 7:40 p.m.</div> <bR> <div>                                                                                                                        _______________________________</div> <div>                                                                                                                        Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>