Minutes August 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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at 805 Hidden Canyon, Katy, Harris County, Texas at 7:00 p.m. on August 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> 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> <bR> <div> Also present were Kathie Naumow, Recording Secretary; Terry Holland of Myrtle Cruz, Inc.; Dusty Lane of SouthWest Water Company; Brenda McLaughlin of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc.; and Mark Brooks of Young & Brooks.</div> <bR> <div>  </div> <div> The meeting was called to order at 7:06 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 July 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>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 $73,967.90.  Total Taxes Receivable: $1,250,885.38.  Prior Years Taxes Collected $8,811.76; 2007 Taxes Collected $1,209,792.51.  Taxes Receivable at 7/31/2008: $32,281.11.  2007 Receivables: Debt Service $12,925.52; Maintenance $9,306.37.  Month of 7/2008: Beginning Cash Balance $29,285.45; Total Receipts $3,937.24, Total Disbursements $10,490.56, Cash Balance at 7/31/2008 $22,732.13.  Total Disbursements for the month of August 2008: $3,455.27, Remaining Cash Balance $19,276.86.  The District is 99.999% collected for 1999, 100.00% collected for 2000, 99.978% collected for 2001 taxes, 99.940% for 2002 taxes, 99.979% for 2003 taxes, 99.948% for 2004, 99.807% for 2005, 99.578% for 2006 and 98.195% for 2007.  Brenda will ask Perdue for an updated report on the delinquent accounts.</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 July 2008 Operations Report.  Total Connections were 1501.  Meter Installations and Inspections for June 14 - July 13:  New Taps Installed - 2; Sewer Inspections Completed - 0; Builder Inspections completed - 2; Customer Service Inspections completed - 0; Net Rental Meter Change - -1.  The required 7 samples were taken during July-2008.  TCEQ Chemical Analysis: Metals 12/4/06; Radio-Chemicals 08/11/05; Volatile Organic Chemicals 8/11/05; Trihalomethane Gasses (THMs) 8/30/2007 and Halocacetic Acids (HAAs) 8/30/2007.  Water Production: Pumped 33,276,000 at Water Plant #1, Total Supplied - 33,276,000, Daily Average - 1,073,419.  Subsidence Information: Estimated Number of Months Available - 2.15, Permit Months Remaining - 2, Percent of Permitted Production - 89.32.  Water Accountability is at 94.9 for 06/10/08-7/10/08 and 95.3 for the Four Month Average.  Total Operations Charges $18,098.37.  Actual work related costs - $7,237.00 for repairs.  Total Current Billing $82,838.23.  Total Aged Receivables $23,488.99.  Total Accounts Receivables $106,327.22.  Facility Checklist Completed: Water Plant #1 07/30/08.  Inspections Completed: Fire Hydrants 02/07/08.  Total Deposits for July 2008 $82,186.27.  Disconnects/Reconnects Income was $325.00.  Dusty reported on repairs made and presented the Board with a copy of the Cornerstones M.U.D. Delinquent List and the Discharge Monitoring Reports.  Everyone has been duly notified of situation and it is being addressed.  No customer requests this month.  Darryl Box reported a leak at 22310 Park Point which Dusty will check on.  Discussed water clarity issue on Holly Lake Court and Shady Valley.  Dusty will research for a solution and report back to the Board.</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 received a request for water and sanitary services for proposed Fame Well Day Care Center located on the south side of Royal Montreal Drive and west of Mason Road, approximately 14,100 sq. ft. building.  Lot owner is Ever Lucky Investments, Inc.  Marvin informed the Board the District does have water and sewer capacity and lines nearby.</div> <bR> <div> Another request was received from a small Natural Food/Health Food Restaurant next to Pei Wei asking for a 750 above ground grease trap set up.  Landev does not recommend an above ground grease trap.  He has requested additional information before making a decision.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers report and the water/sewer capacity for Fame Well.</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 August 18, 2008 - $2,082,357.44.  Total Debt Service Requirements for 2008: $1,413,182.50.  General Operating: Previous Cash Balance July 21, 2008 - $17,122.10, Total Deposits $89,044.99.  Beginning Cash Balance August 18, 2008 - $85,401.55.  General Operating Funds available August 18, 2008 - $2,402,256.92.  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, Proposed Budget for Fiscal Year 10/1/2008, the Investment Report, the Deposit/Collateral Report by District and the TexPool Performance sheet.  </div> <bR> <div> The Board also discussed the Proposed Budget which Brenda should have the verified numbers on Friday.  The Water Authority fees should be verified by next month.  The Board will consider possibly transferring between $300,000.00 to $600,000.00 to Debt Service to reduce debt.</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 ADDENDUM TO TAX ASSESSOR-COLLECTOR'S CONTRACT</U></B></div> <bR> <div> The Tax Assessor/Collector is asking for an amendment to charge mileage to and from District meetings.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the amendment to the Tax Assessor/Collector's contract to charge mileage.</div> <bR> <div> <B><U>CINCO REGIONAL OPERATING COMMITTEE REPORT</U></B></div> <bR> <div>  </div> <div> Tony Garza reported nothing new at the Cinco Plant.  The Bridge Rake should be completed this month and that should be it for repairs. </div> <bR> <div>      </div> <div> <B><U>AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B></div> <bR> <div>      John Irwin received a call from Junction Landscape reporting a leak.  SouthWest Water will take a look at it for any necessary action.</div> <bR> <div> <B><U>PENDING BUSINESS</U></B></div> <bR> <div>      Reviewed and approved the fourth amendment to Memorial Water line access.  Board discussed whether or not to solicit auditor proposals and decided not to solicit proposals at this time.</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>