Minutes November 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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805 Hidden Canyon, Katy, Harris County, Texas at 7:00 p.m. on November 17, 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> <div> Darryl Box, Investment Officer</div> <bR> <div> and being absent:</div> <bR> <div>                         None</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, Doug Konopka of Cinco, LTD, Karen Sears of Legacy Energy and Noah Worley of DHK.</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>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 October 20, 2008 meeting were approved as presented.</div> <bR> <div>  </div> <div> <B><U>2.  QUESTIONS/COMMENTS FROM THE PUBLIC;</U></B></div> <bR> <div>      N/A</div> <bR> <div> <B><U>3.  AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH CONTRACT FOR PURCHASE OF ELECTRICITY;</U></B></div> <bR> <div>           Karen Sears with Legacy Energy Solutions presented the Rate Option Report and the Budget Impact Report.  The Board of Directors authorized Board Member Chip Norris to be the liaison with Legacy Energy Solutions.  He will stay in contact with Karen Sears to see if rates drop over the next few months or so.</div> <bR> <div> <B><U>4.  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 $3.082.58.  Original 2008 Tax Levy: $1,090,108.87, Adjustments $28,535.50.  Total Taxes Receivable: $1.147,248.60.  Prior Years Taxes Collected $3,862.65, 2008 Taxes Collected $0.00.  Taxes Receivable at 10/31/2008: $1,143,421.95.  2008 Receivables: Debt Service $588,760.21; Maintenance $529,884.16.  Month of 10/2008: Beginning Cash Balance $24,918.81; Total Receipts $2,649.82, Total Disbursements $9,271.82, Cash Balance at 10/31/2008 $18,296.81.  Total Disbursements for the month of November 2008: $3,047.79, Remaining Cash Balance $15,249.02.  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, 99.575% for 2006 and 98.810% for 2007.  Brenda also presented the Top Delinquent Taxpayers report.</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 October 2008 Operations Report.  Total Connections were 1501.  Meter Installations and Inspections for Sep 14 - Oct 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 October 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 27,426,000 at Water Plant #1, Total Supplied - 27,426,000, Daily Average - 884,710.  Subsidence Information: Estimated Number of Months Available - 15.41, Permit Months Remaining - 11, Percent of Permitted Production - 6.09.  Water Accountability is at 96.9 for 09/06/08-10/03/08 and 94.1 for the Four Month Average.  Total Operations Charges $24,999.94.  Actual work related costs - $16,941.00 for repairs.  Total Current Billing $70,376.61.  Total Aged Receivables $25,327.80.  Total Accounts Receivables $95,704.41.  Facility Checklist Completed: Water Plant #1 10/30/08.  Inspections Completed: Fire Hydrants 06/13/08.  Total Deposits for October 2008 $72,622.56.  Disconnects/Reconnects Income: $50.00.  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 request this month.  Work completed to flush lines on Shady Valley and Holly Lake Court.  Southwest Water Company will monitor to see if any further action is required.</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.  No plans submitted to Landev Engineers, Inc. </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 their monthly report.  Debt Service Funds available November 17, 2008 - $819,657.94.  Total Debt Service Requirements for 2008: $1,413,182.50.  General Operating: Previous Cash Balance October 20, 2008 - $6,157.15, Total Deposits $157,774.40.  Beginning Cash Balance November 17, 2008 - $162,909.01.  General Operating Funds available November 17, 2008 - $2,326,335.93.  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.</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>5.  CINCO REGIONAL OPERATING COMMITTEE REPORT;</U></B>     </div> <bR> <div>  </div> <div>           Tony Garza had nothing to report, everything is running fine.  North Fort Bend sent a notice of upcoming meeting.  Mark Brooks will forward email to the Board.</div> <bR> <div> <B><U>6.  AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS;</U></B></div> <bR> <div> The Greenbelt has been mulched and sprayed.  Call from homeowner regarding tree down.  Brian checked and reported the tree is leaning on the power lines.  They will call the power company to report the problem.  Street lights reported out. Need to get pole numbers and report the outage.  John Irwin discarded the sign that was down in the greenbelt but informed the Board the poles were still there and the other sign near CVS is leaning.  Tony Garza will find a sign company to get prices for repair of signs.  </div> <bR> <div> <B><U>7.  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 7:49 p.m.</div> <bR> <bR> <bR> <div>                                    _______________________________</div> <div>                                    Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> </td> </tr></table></body>