BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

October 22, 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, October 22, 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 September 24, 2008 Board meeting;

BOOKKEEPING

3. Bookkeeping matters, including:

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

(b) payment of bills and invoices; and

(c) fund transfers;

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

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

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

RESTRICTIVE COVENANT ENFORCEMENT

7. 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;

(5) 15352 English River Loop; and

(6) appointment of Architectural Control Committee;

ENGINEER

8. Report from Gray-Jansing & Associates, Inc. on engineering matters, including previous directives;

LANDSCAPE

9. Landscape maintenance, including:

(a) report from SunTerra Landscape Services, including previous directives; and

(b) tree survey (Director Roberts);

POOLS

10. Pool operations and management, including:

(a) report from YMCA, including status of pool heaters at Apache Pool; and

(b) review of pool hours for 2009 season (Director Roberts);

PARKS, CREEK AND NATURE TRAILS

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

(a) Service Agreement with Terracon Consultants, Inc. to identify vegetative groups in the creek; and

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

12. District parks and facilities, including:

(a) report on status of:

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

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

(b) Jumano Park improvements, including:

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

(2) adding the wastewater treatment plant building as an official meeting place of the Board of Directors of the District (Director Bennett);

(c) recognition of BHC Owners Association, Inc.’s contribution to park improvements (Director McMullen); and

(d) pocket parks on lots owned by the District (Director Roberts);

CONSULTANT SERVICES

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

MAINTENANCE

14. District maintenance, including report from Maintenance Subcommittee (Director Bennett) regarding maintenance projects, including:

(a) Walker House gutters; and

(b) manholes, including proposal for asphalt repairs;

INTERGOVERNMENTAL ITEMS AND SECURITY

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

COMMUNICATIONS / MEDIA / WEBSITE

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

17. Request from BHC Owners Association, Inc. to include event announcement inserts in water bills (Director McMullen);

GENERAL MANAGEMENT

18. 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

19. Reports from Subcommittees;

ATTORNEY

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

(a) previous directives; and

(b) Independent Contractor Agreement with Jennifer Hasbrouck;

LITIGATION

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

OTHER DISCUSSION/ACTION ITEMS

22. Code of Ethics and Financial Investment, Travel and Professional Services Policy, including investment officer;

23. Small Municipal Separate Storm Sewer System (MS4) General Permit (Director Bennett);

24. Post office address change (Director McMullen);

25. “Quiet zone” (whistle ban) along Capital Metro railroad tracks at Block House Drive (Director Roberts);

26. Holiday meeting schedule;

27. Water conservation - Water IQ (Director Roberts);

28. Subcommittee assignments (Director Bennett);

29. Report from Block House Creek Connection resident group (Sherry Powell/Frank Stewart);

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

31. Miscellaneous directives and Board member directives;

32. Board member announcements; and

33. 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.