CORNERSTONES MUNICIPAL UTILITY DISTRICT
Cornerstones Municipal Utility District
Minutes of Meeting of Board of Directors
April 20, 2009
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 April 20, 2009, in accordance with the duly posted notice of said meeting, with a quorum of Directors present as follows:
Tony Garza, President
John Irwin, Secretary
E.C. Norris, Assistant Secretary
Darryl Box, Investment Officer
and being absent:
Gary Hughes, Vice President
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 and Noah Worley of DHK Development, Inc.
The meeting was called to order at 7:05 p.m. and declared open for such business as might come before it.
1. APPROVE MINUTES OF PRIOR MEETINGS;
After discussion, upon motion duly made, seconded and unanimously carried, the Meeting Minutes of the March 16, 2009 meeting were approved.
2. QUESTIONS/COMMENTS FROM THE PUBLIC;
N/A
3. CONSIDER CONSULTANTS' REPORTS, AS NEEDED;
a. TAX ASSESSOR/COLLECTOR'S REPORT,
Eric Comeau 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 Uncollectable's $999.76; Adjustments $9,892.19. Original 2008 Tax Levy: $898,812.53, Adjustments $86,044.99. Total Taxes Receivable: $1,020,307.36. Prior Years Taxes Collected $13,931.08, 2008 Taxes Collected $1,144,850.38. Taxes Receivable at 3/31/2009: $138,474.10. 2008 Receivables: Debt Service $16,475.52; Maintenance $14,827.96. Month of 3/2009: Beginning Cash Balance $61,909.78; Total Receipts $41,981.76, Total Disbursements $19,511.29, Cash Balance at 3/31/2009 $84,380.25. Total Disbursements for the month of April 2009: $45,296.61, Remaining Cash Balance $39,083.64. The District is 99.999% collected for 1999, 100.00% collected for 2000, 99.978% collected for 2001 taxes, 99.955% for 2002 taxes, 99.979% for 2003 taxes, 99.948% for 2004, 99.842% for 2005, 99.729% for 2006, 98.864% for 2007 and 96.822% for 2008. Eric presented to the Board a payment plan request from a property owner for their delinquent 2008 property taxed. They would like to pay $200.00 a month and included a check for the first installment with the request.
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 and also approved the payment plan request.
b. FINANCIAL ADVISOR,
N/A
c. OPERATOR'S REPORT,
Dusty Lane of SouthWest Water Company, the District's Operator, reported on the Districts operations and facilities, and presented the March 2009 Operations Report. Total Connections were 1502. Meter Installations and Inspections for Feb 14 - Mar 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 March 2009. 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 22,157,000 at Water Plant #1, Total Supplied - 22,157,000, Daily Average - 714,742. Subsidence Information: Estimated Number of Months Available - 15.25, Permit Months Remaining - 6, Percent of Permitted Production - 28.24. Water Accountability is at 97.4 for 02/11/09-03/10/09 and 95.1 for the Four Month Average. Total Operations Charges $11,009.80. Actual work related costs - $3,538.00 for repairs. Total Current Billing $70,239.44. Total Aged Receivables $24,635.35. Total Accounts Receivables $94,874.79. Facility Checklist Completed: Water Plant #1 03/27/09. Inspections Completed: Fire Hydrants 01/15/09. Total Deposits for March 2009 $75,866.97. Disconnects/Reconnects Income: $175.00. 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. Dusty also presented to the Board copies of the 2008 Consumer Confidence Report for their review and approval to send the report out to customers.
Upon motion duly made, seconded and unanimously carried, the Board approved the operator's report and also approved the Consumer Confidence Report and the distribution of the report to customers.
d. ENGINEER'S REPORT,
Marvin Zahradnik of Landev Engineers, Inc., the District's Engineer, presented the engineers report. He received a request from Mr. Karim Oubeid of AHS Texas Enterprise, Inc. for Water and Sanitary Services for a proposed Day Care Center located on the South side of Royal Montreal Drive and West of Mason Road. The request is for 2,000 gallons per day of water and 1600 gallons per day for sanitary for a 14,100 square foot building. Marvin called and they said they are working on drawings for the Day Care Center.
Marvin went by the sinkhole on Briarchester Drive and it looks okay. Chip Norris will call Dusty with a physical address for the reported sinkhole in a backyard on Field Briar.
Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers report.
e. BOOKKEEPER'S REPORT,
Terry Holland of Myrtle Cruz, Inc., the District's Bookkeeper, presented the monthly report. Debt Service Funds available April 20, 2009 - $1,267,538.38. Total Debt Service Requirements for 2009: $1,294,820.00. General Operating: Previous Cash Balance March 16, 2009 - $9,775.15, Total Deposits $66,898.64. Beginning Cash Balance April 20, 2009 - $76,630.79. General Operating Funds available April 20, 2009 - $2,576,855.22. 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. Discussed Debt Service Balance transfer was made.
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.
4. ADOPT IDENTITY THEFT PREVENTION PROGRAM;
Mark W. Brooks of Young and Brooks, the attorneys for the District, presented and recommended board approval of a proposed Identity Theft Prevention Program for compliance with the FTC Red Flag Rules. The District's program will be implemented by the operator, and Dusty reported that his office is prepared to comply with these new requirements. After discussion, upon motion duly made, seconded and unanimously carried, the board passed and approved the attached Order Adopting Identity Theft Prevention Program and Providing for Implementation and Enforcement Thereof.
5. CONDUCT HEARING ON TERMINATION OF WATER AND SEWER SERVICE;
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.
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.
6. CINCO REGIONAL OPERATING COMMITTEE REPORT;
Tony Garza attended the Cinco Regional Operating Committee meeting. The issue with the Traveling Bridge has been rectified. There is a problem with the Trough, one end is floating. Dusty Lane has some alternatives and they should make a presentation at the next meeting.
7. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS; AND
John Irwin will call Precinct 3 to report a board that is down on the barricade near the greenbelt on Highland Knolls.
8. PENDING BUSINESS;
N/A
After concluding and there being no further business to come before the Board, the meeting was adjourned at 7:45 p.m.
_______________________________
Secretary
Attachments: Bookkeeper's Report
Order Adopting Identity Theft Prevention Program and Providing for Implementation and Enforcement Thereof
