Minutes January 19, 2009

<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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January 19, 2009, 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>      </div> <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 and Eric Comeau of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc.; Mark Brooks of Young & Brooks, Stephen Eustis of RBC Capital Markets,  Noah Worley of DHK and Greg Valikonis and Dan McDonald of ANCO McDonald Insurance.</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>1.  APPROVE MINUTES OF PRIOR MEETINGS;</U></B></div> <bR> <div>           Correction requested to the December Meeting Minutes.  It should have stated the North Fort Bend Water Authority will increase rates to 60 cents not by 60 cents.  After discussion, upon motion duly made, seconded and unanimously carried, the Minutes of the December 15, 2008 meeting were approved with this correction.</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.  RENEW INSURANCE;</U></B></div> <bR> <div>           Dan McDonald and Greg Valikonis of ANCO-McDonald presented the insurance renewal proposal to the Board.  The deductible's are; $5,000 Property, $5,000 Flood and Quake, 2% of the limit with $25,000 min. Windstorm or hail $5,000 extra expense.  Most of the deductibles went from $2,500 to $5,000 across the board.  $5,000 is the minimum deductible.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the ANCO-McDonald insurance proposal.</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 $9,430.84.  Original 2008 Tax Levy: $1,090,108.87, Adjustments $51,692.74.  Total Taxes Receivable: $1,176,790.10.  Prior Years Taxes Collected $11,170.88, 2008 Taxes Collected $639,129.56.  Taxes Receivable at 12/31/2008: $526,489.66.  2008 Receivables: Debt Service $264,564.24; Maintenance $238,107.81.  Month of 12/2008: Beginning Cash Balance $84,825.75; Total Receipts $582,208.01, Total Disbursements $67,411.40, Cash Balance at 12/30/2008 $599,622.36.  Total Disbursements for the month of January 2009: $561,102.72, Remaining Cash Balance $38,519.64.  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, 99.706% for 2006, 98.755% for 2007 and 55.976% for 2008.</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> <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 December 2008 Operations Report.  Total Connections were 1501.  Meter Installations and Inspections for Nov 14 - Dec 13:  New Taps Installed - 0; Sewer Inspections Completed - 0; Builder Inspections completed - 0; Customer Service Inspections completed - 0; Net Rental Meter Change - 0.  The required 7 samples were taken during December 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 17,903,000 at Water Plant #1, Total Supplied - 17,903,000, Daily Average - 577,516.  Subsidence Information: Estimated Number of Months Available - 17.12, Permit Months Remaining - 9, Percent of Permitted Production - 14.91.  Water Accountability is at 94.6 for 11/05/08-12/08/08 and 93.7 for the Four Month Average.  Total Operations Charges $20,230.63.  Actual work related costs - $12,196.00 for repairs.  Total Current Billing $67,799.61.  Total Aged Receivables $21,457.37.  Total Accounts Receivables $89,256.98.  Facility Checklist Completed: Water Plant #1 12/22/08.  Inspections Completed: Fire Hydrants 12/15/08.  Total Deposits for December 2008 $73,787.97.  Disconnects/Reconnects Income: $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.  Dusty noted that the Cornerstone Ranch past due balance is getting high.</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.  They are keeping an up-to-date map of the district to include new developments and hopes to have it ready next month.  The Board stated they would like to have two copies of the map.</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 January 19, 2009 - $853,353.38.  Total Debt Service Requirements for 2009: $1,294,820.00.  General Operating: Previous Cash Balance December 15, 2008 - $36,994.74, Total Deposits $238,593.66.  Beginning Cash Balance January 19, 2009 - $128,034.85.  General Operating Funds available January 19, 2009 - $2,122,818.72.  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, 2009, the Investment Report, the Deposit/Collateral Report by District and the Tex Pool Performance sheet.  Terry will pull STP bill for review next month.</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. DETERMINE WHETHER TO MAKE 2010 OPTIONAL CAPITAL ADVANCE TO NORTH FORT BEND WATER AUTHORITY;</U></B></div> <bR> <div>           Stephen Eustis addressed the Board regarding the optional NFBWA capital contribution.  He advised that the best way to handle this is to participate in the  NFBWA bond issue through their pumpage fee rather than issue District bonds.  The Board discussed options and motion was made to not make the optional capital contribution as it would cost more to make the contribution than to pay the additional pumpage fee.  After discussion, the motion was seconded and unanimously carried.</div> <bR> <div> <B><U>6.  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>7.  CINCO REGIONAL OPERATING COMMITTEE REPORT;</U></B>   </div> <div>   </div> <div>  </div> <div>          Tony Garza updated the Board regarding operations at the Cinco Plant following his attendance at the last meeting of the Cinco Regional Operating Committee.  Nothing new to report, everything running smoothly.</div> <bR> <div>  </div> <div> <B><U>8. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS; AND</U></B></div> <bR> <div> Tony Garza and Darryl Box attended the Cornerstones annual Home Owners Association meeting.    The dead tree has been removed.  John Irwin and Tony Garza walked the greenbelt and contacted vendors as needed.  John has a general contractor preparing an estimate to repair the leaning sign in greenbelt.  The trees need trimming between greenbelt and homeowners.  Phone and cable lines are the ones affected by hanging tree limbs.  </div> <bR> <div> <B><U>9.  PENDING BUSINESS;</U></B></div> <bR> <div>           Tony Garza reported he went to an establishment in the district and was charged 8 ¼% tax.  After research he verified the tax rate in our district is 7 ¼%.  Brenda McLaughlin will contact the establishment and find out what is going on.</div> <bR> <div>           Tony Garza advised that the Emergency Service District #48 has not yet done so, but could put a one-cent tax rate increase to public vote during the next public election, and if approved the District would then be unable to benefit from the tax increase as the District would if it entered into a strategic partnership agreement with the City of Houston to charge a one-cent sales tax.  Tony Garza advised that if the District entered into a strategic partnership agreement with the City of Houston, the District and the City would split revenue from the sales tax, and the District could use the taxes collected for improvement projects within the District.  Tony suggested that everyone think about looking at a strategic partnership again.</div> <bR> <div>           Chip Norris reported he talked to Karen Sears with Legacy Energy Solutions and the rates are still down.  The Directors voted to leave the decision as to when to finalize the extension of the District's current contract for electricity with Suez Energy to Chip Norris depending on his evaluation of the current vs. future rate prices.</div> <bR> <div>           After concluding and there being no further business to come before the Board, the meeting was adjourned at 7:58 p.m.</div> <bR> <bR> <div>                                                                                                                             _______________________________</div> <div>                                                                                                                             Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>