Minutes October 20, 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 October 20, 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> <bR> <div> and being absent: </div> <bR> <div> Darryl Box, Investment Officer</div> <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.; Mark Brooks of Young & Brooks and Doug Konopka of Cinco, LTD.</div> <bR> <div>  </div> <div> The meeting was called to order at 7:03 p.m. and declared open for such business as might come before it.</div> <bR> <div> <B><U>1.  APPROVE MINUTES OF PRIOR MEETINGS;</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Minutes of the September 22, 2008 meeting were approved as presented.</div> <bR> <div>  </div> <div> <B><U>2.  QUESTIONS/COMMENTS FROM THE PUBLIC;</U></B></div> <bR> <div>           Chip Norris had a question from a resident in the District.  Can we have private wells in the District?  Yes, but need to check their deed restrictions.  They may need to pay a minimum monthly fee for sewer usage.  He needs to check with Harris County.</div> <bR> <div> <B><U>3.  CONDUCT PUBLIC HEARING ON PROPOSED TAX RATE;</U></B></div> <bR> <div>           Board President Tony Garza announced that one purpose of this board meeting is to conduct a public hearing on the District's proposed tax rate for 2008.  The Directors noted that the District tax assessor has published the required notice for the public hearing and that the public hearing is also noted on the agenda for this board meeting.  The board reviewed discussions at the previous meeting leading to the proposed tax rate as reflected in the published notice.  President Tony Garza then declared the public hearing open and invited questions and comments from the public.  There were no questions or comments from the public.  There being no members of the public in attendance, the public hearing was closed.</div> <bR> <div> <B><U>4.  ADOPT ORDER ESTABLISHING AD VALOREM TAX RATE FOR 2008 AND APPROVE AMENDMENT TO DISTRICT INFORMATION FORM;</U></B></div> <bR> <div>      </div> <div> The Board then considered the attached Order Establishing Ad Valorem Tax Rate for 2008, which was reviewed by the Board, passed, and adopted upon motion duly made, seconded and unanimously carried.  The Board was also presented with an Amendment to District Information Form reflecting the new tax rate, which was reviewed and approved upon motion duly made, seconded and unanimously carried.  The Directors present were authorized to execute the Amendment to District Information Form.</div> <bR> <div> <B><U>5.  CONSIDER CONSULTANTS' REPORTS, AS NEEDED;</U></B></div> <div> <B><U>a.  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 8/31/2008: $26,557.41, Reserve for Uncollectables $999.76; Adjustments $0.00.  Original 2008 Tax Levy: $0.00, Adjustments $0.00.  Total Taxes Receivable: $25,557.65.  Prior Years Taxes Collected $2,062.06, 2008 Taxes Collected $0.00.  Taxes Receivable at 9/30/2008: $23,495.59.  2008 Receivables: Debt Service $0.00; Maintenance $0.00.  Month of 9/2008: Beginning Cash Balance $28,796.85; Total Receipts $2,997.76, Total Disbursements $6,875.80, Cash Balance at 9/30/2008 $24,918.81.  Total Disbursements for the month of October 2008: $9,271.82, Remaining Cash Balance $15,646.99.  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 98.909% 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 payments of the tax bills presented. </div> <bR> <div> <B><U>b.  FINANCIAL ADVISOR,</U></B></div> <bR> <div>      N/A </div> <bR> <div> <B><U>c.  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 August 2008 Operations Report.  Total Connections were 1501.  Meter Installations and Inspections for Aug 14 - Sep 13:  New Taps Installed - 0; Sewer Inspections Completed - 0; Builder Inspections completed - 2; Customer Service Inspections completed - 0; Net Rental Meter Change - 0.  The required 7 samples were taken during September 2008.  TCEQ Chemical Analysis: Metals 12/4/06; Radio-Chemicals 08/11/05; Volatile Organic Chemicals 8/11/05; Minerals 5/18/06; Trihalomethane Gasses (THMs) 8/30/2007 and Halocacetic Acids (HAAs) 8/30/2007.  Water Production: Pumped 30,035,000 at Water Plant #1, Total Supplied - 30,035,000, Daily Average - 1,001,167.  Subsidence Information: Estimated Number of Months Available - 0, Permit Months Remaining - 0, Percent of Permitted Production - 92.28.  Water Accountability is at 92.4 for 08/10/08-9/05/08 and 94.5 for the Four Month Average.  Total Operations Charges $18,805.11.  Actual work related costs - $10,853.00 for repairs.  Total Current Billing $68,689.15.  Total Aged Receivables $27,778.07.  Total Accounts Receivables $96,467.22.  Facility Checklist Completed: Water Plant #1 09/26/08.  Inspections Completed: Fire Hydrants 06/13/08.  Total Deposits for September 2008 $72,945.80.  Disconnects/Reconnects Income $142.25.  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 request 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>d.  ENGINEER'S REPORT,</U></B></div> <bR> <div> Marvin Zahradnik of Landev Engineers, Inc., the District's Engineer, presented the engineers report.  No new requests for water or sewer.  Presented cost estimates and offered solutions for water quality issues on Shady Valley and Holly Lake Court.  Operator Southwest Water will send a crew out to locate where the blow off should be and install a valve to see if water conditions improve.  If not they will look at option two which would involve extension and looping of water line.  After discussion and upon motion duly made, seconded and unanimously carried, the Board approved to proceed with the location of blow off valves for periodic flushing of lines.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers report.</div> <bR> <div> <B><U>e.  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 October 20, 2008 - $812,677.16.  Total Debt Service Requirements for 2008: $1,413,182.50.  General Operating: Previous Cash Balance September 15, 2008 - $4,134.84, Total Deposits $75,793.10.  Beginning Cash Balance October 20, 2008 - $76,165.93.  General Operating Funds available October 20, 2008 - $2,405,535.61.  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 thru 9/30/2009, the Investment Report, the Deposit/Collateral Report by District and the Tex Pool Performance sheet.  CD's are FDIC up to $250,000.</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>6.  ADOPT ORDER FOR REDEMPTION OF SERIES 1996 BONDS AND APPROVE RELATED NOTICES AND INSTRUCTIONS</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board adopted the attached Order for Redemption of Series 1996 Bonds, and authorized the Board President and Secretary to sign the related Notice of Redemption.</div> <bR> <div> <B><U>7.  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>8.  CINCO REGIONAL OPERATING COMMITTEE REPORT;</U></B></div> <bR> <div>  </div> <div>          Tony Garza had nothing to report, everything is running fine.     </div> <bR> <div> <B><U>9.  AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS</U></B>;</div> <bR> <div> Gary Hughes reported ticks in the Greenbelt.  The Board approved having Junction Landscape treat for ticks in the Greenbelt. </div> <bR> <div> <B><U>10.  PENDING BUSINESS;</U></B></div> <bR> <div>           Doug Konopka updated the Board on projects in the District.  They have a closing scheduled for a small school for Chinese students.</div> <bR> <div>           Chip reported Chesterfield HOA has received complaints on the music noise from Paddy's Bar & Grill.</div> <bR> <div>           After concluding and there being no further business to come before the Board, the meeting was adjourned at 7:49 p.m.</div> <bR> <bR> <bR> <div>                                    _______________________________</div> <div>                                    Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <div>    Order for Redemption of Series 1996 Bonds</div> <bR> </td> </tr></table></body>