Minutes January 18, 2010

<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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November 21, 2011</U></A></div> <div> <A HREF="id398.htm" TARGET="_top" TITLE="Minutes December 19, 2011"><U>Minutes December 19, 2011</U></A></div> <DIV ALIGN="LEFT"></DIV> <div> <B><IMG SRC="21f46600.gif" border=0 width="70" height="96" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></div> </td> <td valign="top" height=355 BGCOLOR="#FFFFFF" TEXT="#080000"> <bR> <div> <B>CORNERSTONES MUNICIPAL UTILITY DISTRICT</B></div> <DIV ALIGN="LEFT"></DIV> <div> <B>Cornerstones Municipal Utility District</B></div> <div> Minutes of Meeting of Board of Directors</div> <div> January 18, 2010</div> <bR> <bR> <div>      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 January 18, 2010, 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> <div> Also present were Kathie Naumow, Recording Secretary; Terry Holland of Myrtle Cruz, Inc.; Dusty Lane of SouthWest Water Company; Eric Comeau of Bob Leared Interests; and Marvin Zahradnik of Landev Engineers, Inc.  Also present was Geert Naumow of the Creekstone Homeowners Association.</div> <bR> <div>  </div> <div> The meeting was called to order at 7:02 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 Meeting Minutes of the December 21, 2009 meeting were approved pending minor corrections requested by John Irwin.</div> <bR> <div>  </div> <div> <B><U>2.  QUESTIONS/COMMENTS FROM THE PUBLIC;</U></B></div> <bR> <div>           Geert Naumow addressed the Board with questions regarding the District's interest in handling the subdivision security contract.</div> <bR> <div> 1.  Will the HOA board have any say so on how the contract is being handled, for instance any issues that might come up and questions directed to the constable in charge for clarification and corrected action being taken?  </div> <bR> <div> Board replied: Cimarron, which holds the overall contract now, will still hold the contract and will be handled the same way as it is currently handled.  Cornerstones M.U.D. will just be making the payment for the HOA but should get some report on matters.  </div> <bR> <div> 2.  Will the constable supervisor still be presenting reports to the HOA meetings and asking us if anything needs answered, etc?  </div> <bR> <div> Board replied: Yes. </div> <bR> <div> 3.  If the contract payment is taken over by M.U.D. and then later on for some reason has to go back to the HOA, how would this impact the HOA on the percentage level payment of the contract.  Would HOA percentage be 70% or 100%?</div> <bR> <div> Board replied: The proposal is to keep Cimarron as the contract holder and this would keep the contract at 70%. Harris County picks up the 30% at this time.  Only if the M.U.D districts were to take over the contract as the holder of the contract then it would go to 100% of contract payment. </div> <bR> <div> 4.  Are there any concerns with anyone so far about the equal amount owed per home owner from other subdivisions that are in different M.U.D. districts?</div> <bR> <div> Board replied: This was the issue discussed from the last meeting.  This has to be reviewed and researched more before a decision is made.  Silverstone was mentioned as one of the sections that relates to this issue.  </div> <div> 5.  Will the contract be forced to expand to commercial areas in the district?  Personal concern is that more time will be allocated to patrol commercial than in patrolling the homeowners, which is what the contract was originally set up for.</div> <bR> <div> Board replied: That as long as Cimarron HOA has the contract the services will stay the same.  That is homes in the HOA subdivisions being patrolled only.  No commercial property.  Only if M.U.D. were to take over the overall contract then that might be an added on service that the constables would have to provide. </div> <bR> <div> 6.  Are there any more details and/or any more clarifications on the impact of this contract being taken over that we may not be aware of yet?</div> <bR> <div> Board replied: None were presented at this time.  </div> <bR> <div> Geert Naumow followed up with a request that if the M.U.D board does come up with anything that looks like it could have an impact on the HOA's to please inform them and /or keep them in the loop.  </div> <bR> <div> <B><U>3.  CALL DIRECTORS ELECTION;</U></B></div> <bR> <div>           Mark Brooks reminded the Board the Directors election is in May.  Gary Hughes and Darryl Box are up for re-election.  The deadline to sign up is March 8th.  They have scheduled the date and will hold the election at the Creekstone Community Building.  Tony Garza and John Irwin will find volunteers to work the election.</div> <bR> <div> After discussion, upon motion duly made, seconded and unanimously carried, the Board approved to call the election for May 8, 2010 at the Creekstone Community Association Clubhouse, and adopted the attached Order for Election.</div> <bR> <div> <B><U>4.  RENEW INSURANCE;  </U></B></div> <bR> <div>           Mark Brooks presented the insurance proposal with the same rate and coverage as last year.</div> <bR> <div> After discussion and upon motion duly made, seconded and unanimously carried, the Board approved accepting the insurance proposal and rate.</div> <bR> <div> <B><U>5.  CONSIDER CONSULTANTS' REPORTS, AS NEEDED;</U></B></div> <bR> <div> <B><U>a.  TAX ASSESSOR/COLLECTOR'S REPORT,</U></B></div> <bR> <div>           Eric Comeau of Bob Leared Interests, the District's Tax Assessor/Collector, presented the Tax Assessor/Collector report to the Board.  Taxes Receivable 8/31/2009: $22,770.54, Reserve for Uncollectables $2,643.22; Adjustments $139.60.  Original 2009 Tax Levy: $1,004,716.11, Adjustments $135,638.07.  Total Taxes Receivable: $1,160,621.10.  Prior Years Taxes Collected $4,420.16; 2009 Taxes Collected $610,183.83.  Taxes Receivable at 12/31/2009: $546,017.11.  2009 Receivables: Debt Service $272,249.63; Maintenance $257,920.72.  Month of 12/2009: Beginning Cash Balance $77,383.32; Total Receipts $552,144.36, Total Disbursements $64,090.20, Cash Balance at 12/31/2009 $565,437.48.  Total Disbursements for the month of January 2010: $550,356.78, Remaining Cash Balance $15,080.70.  The District is 99.985% for 2004, 99.842% for 2005, 99.764% for 2006, 99.666% for 2007, 99.455% for 2008 and 53.508% for 2009.   </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.</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 2009 Operations Report.  Total Connections were 1504.  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 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 14,708,000 at Water Plant #1, Total Supplied - 14,708,000, Daily Average - 474,452.  Subsidence Information: Estimated Number of Months Available - 12.93, Permit Months Remaining - 9, Percent of Permitted Production - 12.34.  Water Accountability is at 92.5 for 11/07/09-12/11/09 and 95.4 for the Four Month Average.  Total Operations Charges $22,783.09.  Actual work related costs - $15,000.00 for repairs.  Total Current Billing $69,947.81.  Total Aged Receivables $18,172.46.  Total Accounts Receivables $88,120.27.  Total Deposits for December 2009 $78,515.10.  Disconnects/Reconnects Income: $350.00.  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.  Self reported a TSS violation.  They are watching it.  </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 capacity received.  The Emergency Preparedness Plan which is due March 1st is near completion.  Currently have two issues: 1. The Automated dialer will need work.  It will cost approximately $25,000 for the automatic transfer station.  2. Diesel requirements are 72 hours and we currently have 24 hours (520 gallons).  We will require two more tanks that size.  If we don't have enough storage we will require a contract with a diesel supplier.</div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers.</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 18, 2010 - $176,561.02.  Total Debt Service Requirements for 2010: $512,420.00.  General Operating: Previous Cash Balance December 21, 2009 - $4,302.08, Total Deposits $88,628.54.  Beginning Cash Balance January 18, 2010 - $86,239.44.  General Operating Funds available January 18, 2010 - $2,598,878.07.  Terry included copies of the Debt Service Calculations for Yield Restriction Report, Cornerstones Energy Report, the Cinco Regional WWTP Improvements Report, Cornerstones MUD Budget for Fiscal Year Ending September 30, 2010, the Investment Report, the Deposit/Collateral Report by District and the Tex Pool Performance sheet.  Terry will hold check #6436 made payable to West Harris County Emergency Services in the amount of $316.45. He will get the final date and number from Dusty and make one payment to West I-10.  Terry delivered the W-2's to the Board Members who were present and will mail Gary Hughes to him.</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.  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> <bR> <div>           Tony Garza reported nothing major going on.  Cash call for MCC upgrades will probably come this month.  Approximately $68,000 will be our portion.  There has been a substantial improvement in energy usage since the repairs and upgrades.</div> <bR> <div> <B><U>8. DISCUSS AND AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH SUBDIVISION SECURITY;</U></B></div> <bR> <div>           This was discussed in item number two.</div> <bR> <div>      </div> <div> <B><U>9. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS; AND</U></B></div> <bR> <div>           Chip Norris requested to place on the agenda for February 2010 to discuss the wall that is leaning.  Chesterfield is talking to a company to have it straightened.  Chesterfield would like the Board to consider assisting them with the cost of repair.  Also stated the gate needs painting.  </div> <bR> <div> John Irwin received a bid from Junction Landscape in the amount of $1.950.00 for tree trimming.   John will also get estimates for ant treatment in the Greenbelt.  John also reported there were some repairs made from the freeze.</div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the bid for tree trimming.</div> <bR> <div>      </div> <div> <B><U>10.  PENDING BUSINESS;</U></B></div> <bR> <div>           The lights in the Greenbelt have been taken care of.  There are three addresses associated with the light service which were given to the Board and Bookkeeper.</div> <bR> <bR> <div>           After concluding and there being no further business to come before the Board, the meeting was adjourned at 8:05 p.m.</div> <bR> <bR> <div>                                                                                                               _______________________________</div> <div>                                                                                                               Secretary</div> <bR> <div> Attachments:   Order for Election of Directors</div> <div>   Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>