Minutes February 15, 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"> <div> <B>CORNERSTONES MUNICIPAL UTILITY DISTRICT</B></div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>Cornerstones Municipal Utility District</B></div> <div> Minutes of Meeting of Board of Directors</div> <div> February 15, 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 February 15, 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> 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; Eric Comeau of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc. and Greg Sissel with BKD, LLP.  </div> <bR> <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>           After discussion, upon motion duly made, seconded and unanimously carried, the Meeting Minutes of the January 18, 2010 meeting were approved.</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.  APPROVE AUDIT;</U></B></div> <bR> <div>           Greg Sissel of BKD, LLP presented the audit review to the Board.  </div> <bR> <div> After discussion and upon motion duly made, seconded and unanimously carried, the Board approved the audit as presented.</div> <bR> <div> <B><U>4.  REVIEW INVESTMENT POLICIES;  </U></B></div> <bR> <div>           No changes necessary.  After discussion and upon motion duly made, seconded and unanimously carried, the Board approved leaving the investment policy the same.</div> <bR> <div> <B><U>5.  ESTABLISH TAX EXEMPTIONS AND ADOPT TAX COLLECTION PENALTY;</U></B></div> <bR> <div>           The Board discussed the current tax exemptions of 20% for Homestead and $30,000 additional for age 65 and over or disabled.  After discussion and upon motion duly made, seconded and unanimously carried, the Board approved the 20% for Homestead exemption, increasing the 65 and over or disabled exemption to $40,000 and keeping the 20% collection penalty.</div> <bR> <div>          Mark Brooks will have the resolution ready for signing at the next meeting.</div> <bR> <div> <B><U>6.  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 $253.60.  Original 2009 Tax Levy: $1,004,716.11, Adjustments $139,986.68.  Total Taxes Receivable: $1,165,083.71.  Prior Years Taxes Collected $4,492.62; 2009 Taxes Collected $1,075,354.52.  Taxes Receivable at 1/31/2010: $85,236.57.  2009 Receivables: Debt Service $35,611.27; Maintenance $33,737.00.  Month of 1/2010: Beginning Cash Balance $565,437.48; Total Receipts $466,628.08, Total Disbursements $550,356.78, Cash Balance at 1/31/2010 $481,708.78.  Total Disbursements for the month of February 2010: $438,644.63, Remaining Cash Balance $43,064.15.  The District is 99.985% for 2004, 99.842% for 2005, 99.764% for 2006, 99.666% for 2007, 99.451% for 2008 and 93.942% for 2009.   </div> <bR> <div>           Darryl Box emailed a request for a copy of the delinquent list which was presented to the Board.  Delinquent letters will go out this week.</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 January 2010 Operations Report.  Total Connections were 1504.  Meter Installations and Inspections for DEC 14 - JAN 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 January 2010.  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 14,215,000 at Water Plant #1, Total Supplied - 14,215,000, Daily Average - 458,548.  Subsidence Information: Estimated Number of Months Available - 12.41, Permit Months Remaining - 8, Percent of Permitted Production - 15.89.  Water Accountability is at 94.5 for 12/12/09-01/11/10 and 95.6 for the Four Month Average.  Total Operations Charges $11,716.86.  Actual work related costs - $3,900.00 for repairs.  Total Current Billing $61,771.38.  Total Aged Receivables $12,226.17.  Total Accounts Receivables $73,997.55.  Total Deposits for January 2010 $64,637.34.  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.  Self reported a TSS violation last month.  The Emergency Preparedness Plan has been filled out.  Need Tony Garza's signature on water usage for North Ft. Bend Water Authority.  </div> <bR> <div>           Tony Garza received a letter from West I-10 Fire Department requesting the District continue collecting the voluntary donation for the next six months and then discontinue collecting the donation.  After discussion the Board decided to send the $600 collected from last month and be done with 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.  Marvin presented the Board with a map showing the natural gas lines in the District.  The cost is $230,000 to convert the water plant generator to natural gas and $25,000 for an electronic transfer switch system.  </div> <bR> <div> Upon motion duly made, seconded and unanimously carried, the Board approved the Engineers report and approved proceeding with the electronic transfer switch system.</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 February 15, 2010 - $456,602.96.  Total Debt Service Requirements for 2010: $512,420.00.  General Operating: Previous Cash Balance January 18, 2010 - $29,950.04, Total Deposits $466,831.79.  Beginning Cash Balance February 15, 2010 - $155,571.92.  General Operating Funds available February 15, 2010 - $2,789,250.57.  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.  John Irwin questions the -1878.00 for permits in the Budget Report.   Terry reported it was due to a Fort Bend Subsidence refund.  Mark Brooks explained that the permit is based on anticipated pumpage so there is a refund if actual pumpage is less.</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>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.  APPROVE EMERGENCY PREPAREDNESS PLAN;</U></B>     </div> <bR> <div>           The Emergency Preparedness Plan is complete.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the EPP.</div> <bR> <div> <B><U>9.  CINCO REGIONAL OPERATING COMMITTEE REPORT;</U></B>     </div> <bR> <div>  </div> <div>           Tony Garza informed the Board there is nothing to report.  Had the Cash Call on the Plant for $68,915.11 for MCC upgrades and there will probably be some extra fees.  Discussed upgrades for the future.  They are TV'ing the lines to find any problems.</div> <div>  </div> <bR> <div> <B><U>10. DISCUSS AND AUTHORIZE ANY NECESSARY ACTIONS IN CONNECTION WITH SUBDIVISION SECURITY;</U></B></div> <bR> <div>           Tony Garza talked to MUD 81.  They are interested in participating.  He will meet with other Districts to see if there is any interest.  If they are they will look at getting costs.  The contract could require 1 LT, 1 SGT and 3-4 Deputies.</div> <bR> <div>      </div> <div> <B><U>11. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS; AND</U></B></div> <bR> <div>           Chip Norris is not ready with prices to repair fences.  The cost to lift and install piers which are guaranteed for 10 years will cost $17,000.  John Irwin and Tony Garza walked the fence line.  Chip will have better numbers at next month's meeting.  John Irwin reported Junction Landscape is spot treating the Greenbelt for ants.  It will cost $750.00 to broadcast treat the Greenbelt for ants.  </div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board approved Junction Landscape to treat the Greenbelt for ants.</div> <div>      </div> <bR> <div> <B><U>12.  PENDING BUSINESS;</U></B></div> <bR> <div>          The North Ft. Bend Water District asked Chip Norris to be on their Conservation Committee.  He agreed and will start in March.</div> <bR> <div>          After concluding and there being no further business to come before the Board, the meeting was adjourned at 8:22 p.m.</div> <bR> <bR> <div>                                                                                                                        _______________________________</div> <div>                                                                                                                        Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>