BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

September 24, 2008

TO: THE BOARD OF DIRECTORS OF BLOCK HOUSE MUNICIPAL UTILITY DISTRICT AND ALL OTHER INTERESTED PERSONS:

Notice is hereby given that the Board of Directors of Block House Municipal Utility District will hold a regular meeting on Wednesday, September 24, 2008, at 6:30 p.m., at 2600 Block House Drive South, Leander, Texas. The following matters may be considered and acted upon at the meeting:

PUBLIC COMMENT

PLEASE NOTE: Public comments will be accepted only during designated portions of the Board meeting. Comments from the floor will not be accepted during the business portion of the Board meeting. Citizens wishing to address the Board should complete the citizens’ communication form provided at the entrance to the meeting room, so they may be recognized to speak.

CITIZENS’ COMMUNICATIONS

1. Citizens’ communications;

CONSENT

(These items may be approved collectively or individually. Any of these items may be pulled for discussion upon the request of any Board member.)

2. Minutes of August 21, August 27 and September 11, 2008 Board meetings;

3. Audit engagement letter with Pena Swayze & Co., L.L.P. for audit of the District’s financial statements for the fiscal year ending September 30, 2008;

4. District Registration Form;

BOOKKEEPING

5. Bookkeeping matters, including:

(a) report from Municipal Accounts & Consulting, L.P., including previous directives;

(b) payment of bills and invoices; and

(c) fund transfers;

6. Secretary’s Certificate and Resolutions Regarding Manager’s Account;

7. Secretary’s Certificate and Resolutions Regarding Operating Account; and

8. Secretary’s Certificate and Resolutions Regarding Accounts (Construction Fund and Debt Service Fund);

RESTRICTIVE COVENANT ENFORCEMENT

9. Restrictive covenant enforcement, including:

(a) report from Pinnacle Texas Management, LLC; and

(b) report from Waterman & Spainhour, including:

(1) 16609 Shipshaw River Drive;

(2) 2801 Alexander Drive;

(3) 2621 Armstrong Drive;

(4) 607 Tumlinson Fort Drive; and

(5) 15352 English River Loop;

ENGINEER

10. Report from Gray-Jansing & Associates, Inc. on engineering matters, including:

(a) previous directives; and

(b) Pecan Grove Industrial Park Offsite Wastewater Project;

LANDSCAPE

11. Landscape maintenance, including:

(a) report from SunTerra Landscape Services on landscape maintenance work, including previous directives;

(b) proposals for landscape maintenance and improvements, including proposals for landscape, arbor and irrigation repairs (Landscape Subcommittee); and

(c) report from Landscape Committee regarding Amended and Restated Landscape Maintenance Agreement (Directors Roberts and Davis);

POOLS

12. Pool operations and management, including report from YMCA, including status of pool heaters at Apache Pool;

PARKS, CREEK AND NATURE TRAILS

13. Creek maintenance, including report from Nature Trail System and Creek Maintenance Subcommittee regarding environmental study of the creek and creek cleaning project, including:

(a) engagement of Terracon Consultants, Inc. to identify vegetative groups in the creek; and

(b) distribution of request for proposal for creek cleaning project;

14. District parks and facilities, including:

(a) report on status of:

(1) pocket park (Scout project) in Apache Park (Directors Bennett and McMullen);

(2) improvements to wastewater treatment plant building (Director Bennett); and

(3) Christmas lighting (Directors Roberts and Junk);

(b) Jumano Park improvements, including proposed use and fees (Directors Junk and Bennett); and

(c) Block House Creek Owners Association use of wastewater treatment plant building in Jumano Park (Director McMullen);

CONSULTANT SERVICES

15. Engagement of and scope of services for District manager and operator;

MAINTENANCE

16. District maintenance, including report from Maintenance Subcommittee regarding maintenance projects, including Walker House gutters;

INTERGOVERNMENTAL ITEMS AND SECURITY

17. District security, including monthly report from Williamson County Sheriff’s Office Off-Duty Deputies;

COMMUNICATIONS / MEDIA / WEBSITE

18. Newsletter, website, brochure, water bill inserts and District-wide calendar;

GENERAL MANAGEMENT

19. District operations, including report from SWWC Services, Inc. on:

(a) previous directives;

(b) system maintenance and repairs;

(c) solid waste disposal and recycling, including:

(1) report from Texas Disposal Systems, Inc.; and

(2) clean-up days, including modifying hours and offering brush roll-off, brush chipping, and curbside bulk pickup for a fee (Directors Roberts and McMullen);

(d) Town Hall meeting on fire safety; and

(e) purchase and installation of park signs;

SUBCOMMITTEE REPORTS

20. Reports from Subcommittees, including Events Subcommittee regarding District events, costs and contracts (Directors Bennett and Junk);

ATTORNEY

21. Report from Armbrust & Brown, L.L.P. on legal matters, including:

(a) previous directives;

(b) Amendment to Independent Contractor Agreement with Jennifer Hasbrouck;

(c) Fire Protection Agreement with the City of Cedar Park;

(d) renewal of the District’s general liability, automobile liability, errors and omissions (public officials) liability, law enforcement liability, property and workers’ compensation insurance; and

(e) Amended and Restated Information Form;

LITIGATION

22. Litigation regarding City of Leander’s taking of District property in connection with proposed wastewater interceptor line;

OTHER DISCUSSION/ACTION ITEMS

23. Purchase inquiry for District property located at 16404 Spotted Eagle Drive (Lot 16, Block C, Block House Creek, Phase D, Section 607) (Director Roberts);

24. Water conservation (Director Roberts);

25. Subcommittee assignments (Director McMullen);

26. Report from Block House Creek Connection (Sherry Powell);

27. Extension of Scottsdale Drive, including related projects (Director McMullen);

28. Miscellaneous directives and Board member directives;

29. Board member announcements; and

30. Future agenda items.

The Board of Directors is authorized by the Texas Open Meetings Act to convene in closed or executive session for certain purposes. These purposes include receiving legal advice from the District’s Attorney (Section 551.071); discussing real property matters (Section 551.072); discussing gifts and donations (Section 551.073), discussing personnel matters (Section 551.074) or discussing security personnel or devices (Section 551.076). If the Board of Directors determines to go into executive session on any item on this agenda, the presiding officer will announce that an executive session will be held and will identify the item to be discussed and provision of the Open Meetings Act that authorizes the closed or executive session.

Attorney for the District

(SEAL)

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Block House Municipal Utility District is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Please call Gary Spoonts at SWWC Services, Inc. (SouthWest Water Company), General Manager for the District, at 335-7580 for information. Hearing impaired or speech disabled persons equipped with telecommunications devices for the deaf may call 272-9116, or may utilize the statewide Relay Texas program, 1-800-735-2988.