Minutes December 19, 2011

<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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County, Texas at 7:00 p.m. on December 19, 2011, 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>                     E.C. Norris, Vice President</div> <div>                     John Irwin, Secretary </div> <div>                     Morgan Stagg, Assistant Secretary</div> <div>                     Mike Chittwood, Assistant Secretary</div> <bR> <div> and being absent:</div> <bR> <div>                     None</div> <bR> <div>           Also present were Terry Holland of Myrtle Cruz, Inc.; Dusty Lane of SouthWest Water Company; Brenda McLaughlin of Bob Leared Interests; Marvin Zahradnik of Landev Engineers, Inc., Mark W. Brooks of Young & Brooks, District resident Steve Talecki, and Cinco Ranch resident Anna Agnew.</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 and seconded, the Meeting Minutes of the November 21, 2011 meeting were approved.</div> <bR> <div>  </div> <div> <B><U>2. QUESTIONS/COMMENTS FROM THE PUBLIC;</U></B></div> <bR> <div>           District resident Steve Talecki presented information he has been able to obtain regarding the location of street lights on the District's accounts.   By his calculations, 121 of the 207 total fixtures on the District's accounts should be paid for by HOAs rather than the District.  The board has requested that the District energy advisor, Acclaim Energy, work with CenterPoint to establish separate accounts for the lights that are the responsibility of the District.</div> <bR> <div>           Cinco Ranch resident Anna Agnew expressed her opposition to the location of a second District water well near the Cinco Golf Course or Beach Club.  Board president Garza explained that the District was presently exploring other options.</div> <bR> <div> <B><U>3. 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, reported as to the status of District's tax collections.  Ms. McLaughlin reported that the District is 99.488% collected for 2010 taxes and responded to questions from the board.  After discussion, upon motion duly made, seconded and unanimously carried, the Board approved the Tax Assessor's monthly report and payment of the tax bills presented.</div> <bR> <div>           After discussion, upon motion duly made, seconded and carried by four votes with director Irwin abstaining, the Board authorized having an aerial photograph of the District taken in January to confirm new taxable improvements.</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 Operators, reported to the board regarding District operations and facilities.  Mr. Lane reviewed his written report with the board and responded to questions.  </div> <bR> <div>           Mr. Lane reported that Southwest Water is converting to their new SAP control system, and their company billing and system reporting is temporarily behind during the transition.</div> <div>     </div> <div>           Upon motion duly made, seconded and unanimously carried, the Board approved the Operator's report.</div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board deferred termination of service to delinquent accounts until after the holidays.</div> <bR> <div> <B><U>d.  ENGINEER'S REPORT,</U></B></div> <bR> <div>           Marvin Zahradnik of Landev Engineers, Inc., the District's Engineers, presented the Engineers Report for the District. Mr. Zahradnik reported to the board regarding the status of pending District projects and responded to questions. </div> <bR> <div>           Mr. Zahradnik presented a tabulation of bids received to rehab the District's well.  After discussion and as recommended by Mr. Zahradnik, upon motion duly made, seconded and unanimously carried, the Board awarded the contract for the work to Layne Christensen Co. based on their low bid of $204,659.00 subject to TCEQ authorization to proceed on an emergency basis.  The board also approved engineering fees for the project estimated at 5%.</div> <bR> <div>           Mr. Zahradnik reported that he is continuing his investigation of water supply options for the District, either a new second well or possibly purchasing an existing well or capacity in an existing well. </div> <bR> <div>  </div> <div>           After discussion and upon motion duly made, seconded and unanimously carried, the Board approved the Engineer's 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 their monthly report.  He also presented to the board a list of bills for the approval of payment, a copy of which is attached hereto.  After discussion, upon motion duly made, seconded and unanimously carried, the board approved said bills and ordered checks issued on the appropriate District accounts in payment thereof.</div> <bR> <div> <B><U>4. BOOKKEEPER CONTRACT;</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board approved an Addendum to the District's contract with Myrtle Cruz, Inc. for bookkeeping services, to add a monthly fee of $100.00 for services related to investment of District funds.</div> <bR> <div> <B><U>5. INSURANCE RENEWALS;</U></B></div> <bR> <div>           Mark W. Brooks of Young & Brooks, the attorneys for the District, distributed proposals received from three agencies for renewal of the District's various insurance coverages.  After discussion, the Board agreed to defer consideration of the insurance proposals to the January board meeting in order to give the board members an opportunity to review them in more detail.</div> <bR> <div>  </div> <div> <B><U>6. WATER CONSERVATION PLAN;</U></B></div> <bR> <div>           After discussion, upon motion duly made, seconded and unanimously carried, the Board authorized the District operator and engineer to complete a TWDB Water Utility Profile that is needed to prepare a Water Conservation Plan as required by the North Fort Bend Water Authority.</div> <bR> <div>  </div> <div> <B><U>7. DISTRICT OFFICE;</U></B></div> <bR> <div>           Mark W. Brooks reported that their firm will be moving offices early in 2012.  After discussion, upon motion duly made, seconded and unanimously carried, the board adopted the attached Order Establishing Office Outside the District.</div> <bR> <div> <B><U>8. DIRECTOR ELECTION;</U></B></div> <bR> <div>           The Board reviewed information received regarding options available for the next District Director Election.  After discussion, upon motion duly made, seconded and unanimously carried, the Board resolved to pursue a possible Joint Election Agreement with Katy ISD for the May 2012 Election.</div> <bR> <div> <B><U>9. CINCO REGIONAL OPERATING COMMITTEE REPORT;</U></B>    </div> <bR> <div>  </div> <div>           Board president Tony Garza reported that the Cinco Plant has taken bids to modify and upgrade the on-site lift station.  The traveling bridge/clarifier project has been put on hold due in part to the fact that the Memorial MUD bond election to fund their share failed to pass.</div> <bR> <div> <B><U>10. AUTHORIZE ANY NECESSARY ACTIONS WITH RESPECT TO GREENBELT;</U></B></div> <bR> <div>           N/A</div> <bR> <div> <B><U>11. PENDING BUSINESS;</U></B></div> <bR> <div>           The Board responded to questions from District resident Steve Talecki regarding a Creekstone reserve tract that the District conveyed to the Creekstone HOA for park purposes.</div> <bR> <div>           The board members and consultants all wished one another happy and safe holidays.</div> <bR> <div>           There being no further business to come before the Board, the meeting was adjourned.</div> <bR> <bR> <div>                                                                                                                        _______________________________</div> <div>                                                                                                                        Secretary</div> <bR> <div> Attachments:  Bookkeeper's Report</div> <div>                          Order Establishing Office Outside the District    </div> <bR> <bR> </td> </tr></table></body>