Minutes May 17, 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> <bR> <bR> <div> <B>Cornerstones Municipal Utility District</B></div> <div> Minutes of Meeting of Board of Directors</div> <div> May 17, 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 May 17, 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> <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; Eric Comeau of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc., Mark Brooks of Young and Brooks and Noah Worley of DHK.</div> <bR> <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 April 19, 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. CANVASS ELECTION RETURNS, ISSUE CERTIFICATES OF ELECTION, AND EXECUTE STATEMENTS OF ELECTED/APPOINTED OFFICER AND OATHS OF OFFICE;</U></B></div> <bR> <div>           Pursuant to Texas Election Code Section 67.003, it was announced that one purpose of the meeting was to canvass the returns of the directors election held May 8, 2010. The Board of Directors reviewed the tape copy of the election results they were emailed.  Gary Hughes - 38 votes, Geert Naumow - 28 votes, Morgan Stagg 56 votes.  The election returns and all other election instruments were examined and canvassed by the board and found to be correct, legal and regular in all respects. Accordingly, it was duly moved, seconded and unanimously carried that Gary Hughes and Morgan Stagg be declared duly elected directors of the District at said election, each to serve for four (4) years or until his or her successor is elected or appointed and qualified, and that the returns of the election officials be attached to and made a part of these minutes. Upon motion duly made, seconded and unanimously carried Board president Garza was authorized to issue Certificates of Election to the successful candidates.  The board will elect officers at the next regular meeting in June.</div> <bR> <div> <B><U>4. CONSIDER PROPOSAL FOR ARBITRAGE COMPLIANCE SERVICES;</U></B></div> <bR> <div>           The Board of Directors reviewed a proposal by Arbitrage Compliance Services for a final report in connection with the District's Series 1996 Bonds at a fee of $1,450.00.  After review, motion was duly made, seconded and unanimously carried to accept the Arbitrage Compliance Services Proposal as recommended by Mark Brooks.</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 of Directors.  Taxes Receivable 8/31/2009: $22,770.54, Reserve for Uncollectables $2,643.22; Adjustments $752.70.  Original 2009 Tax Levy: $1,004,716.11, Adjustments $142,863.69.  Total Taxes Receivable: $1,166,954.42.  Prior Years Taxes Collected $5,081.97. 2009 Taxes Collected $1,122,895.90.  Taxes Receivable at 4/30/2010: $38,976.55.  2009 Receivables: Debt Service $12,675.52; Maintenance $12,008.38.  Month of 4/2010: Beginning Cash Balance $56,986.78; Total Receipts $21,665.14, Total Disbursements $20,804.19, Cash Balance at 4/30/2010 $57,847.73.  Total Disbursements for the month of May 2010: $31,275.68, Remaining Cash Balance $26,572.05.  The District is 99.985% for 2004, 99.842% for 2005, 99.764% for 2006, 99.707% for 2007, 99.543% for 2008 and 97.849% for 2009.   Eric received preliminary values from placePlaceTypeFt. PlaceNameBend of $53,369,318.00.  Also informed the Board the last legislative session has an addendum for electronic payments and there is a $5.00 flat fee to customers.</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 April 2010 Operations Report.  Total Connections were 1505.  Meter Installations and Inspections for MAR 14 - APR 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 April 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 21,798,000 at Water Plant #1, Total Supplied - 21,798,000, Daily Average - 726,600.  Subsidence Information: Estimated Number of Months Available - 10.49, Permit Months Remaining - 5, Percent of Permitted Production - 28.89.  Water Accountability is at 96.8 for 3/10/10-04/08/10 and 95.1 for the Four Month Average.  Total Operations Charges $26,819.91.  Actual work related costs - $18,990.00 for repairs.  Total Current Billing $69,229.92.  Total Aged Receivables $8,475.25.  Total Accounts Receivables $77,705.17.  Total Deposits for April 2010 $61,366.55.  Disconnects/Reconnects Income: $100.00.  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.  The annual CCR Report has been mailed out to customers.</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 and nothing from developers.  He forwarded plans to NFBWA.  We should be on surface water sometime between 2015 and 2025.  He is still working on the automatic transfer station bids.</div> <div>  </div> <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 May 17, 2010 - $590,211.11.  Total Debt Service Requirements for 2010: $512,420.00.  General Operating: Previous Cash Balance April 19, 2010 - $5,783.36, Total Deposits $111,632.05.  Beginning Cash Balance May 17, 2010 - $114,888.73.  General Operating Funds available May 17, 2010 - $2,935,285.80.  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 updated the Board regarding the sales tax charges on supplemental invoices from Junction Landscape.  Terry is holding check from last month and this month until they call him back on the refund.  He has talked to placeCityTracy several times but will call her again to let her know we are holding checks.  Also reported they are caught up on meter reading which is reflected in the energy report.</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> <bR> <div>  </div> <div>           Tony Garza informed the Board nothing new is going on at the Cinco plant and they are still working on the MCC upgrades.</div> <bR> <div>  </div> <div> <B><U>8. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT TRACTS; AND</U></B></div> <bR> <div>            The Board discussed the wall issue.  Chip Norris reported the gate was built wrong to start with and is a safety issue.  Tony Garza and Chip Norris walked the fence line in the placeCityGreenbelt.  Chip received a bid for $7,600 total.  The Board discussed sharing the cost 50/50 for the repairs to the 60 foot right of way.  A release agreement will be sent again by Mark Brooks for board review and the issue was tabled until next month. </div> <bR> <div>           Chip Norris informed the Board on NFBWA information and has some mail out samples on water waste with irrigation systems that could be included in the water bills.</div> <bR> <div> <B><U>9.  PENDING BUSINESS;</U></B></div> <bR> <div>      The Board was reminded of the annual AWBD conference.  Tony Garza and Chip Norris will possibly attend.</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> <div>                                                                                                                _______________________________</div> <div>                                                                                                                Secretary</div> <bR> <div> Attachments:     Bookkeeper's Report</div> <bR> <bR> </td> </tr></table></body>