BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

August 22, 2007

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, August 22, 2007, 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.

1. Citizens’ communications;

CONSENT ITEMS

(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 July 25, 2007 Board meeting;

3. Payment of bills and invoices;

4. Fund transfers;

5. 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, 2007;

BUDGET AND TAX ITEMS

6. Fire Protection Agreement, including method of payment for fire protection services;

7. Consider taking action regarding 2007/2008 budget and 2007 tax rate, including:

(a) certification of 2007 appraised values;

(b) reviewing draft of 2007/2008 budget;

(d) taking record vote on proposed tax rate;

(e) scheduling a public hearing at which the adoption of the tax rate will be considered; and

(f) authorizing publication of Notice of Public Hearing on Tax Rate;

RESTRICTIVE COVENANT ENFORCEMENT ITEMS

8. Restrictive covenant enforcement, including:

(a) report from Waterman, Shanks & Spainhour, including:

(1) 2602 Armstrong Drive; and

(2) 16609 Shipshaw River Drive;

(b) report from ECO Resources, Inc., including enforcement of commercial restrictive covenants in connection with Wong tract; and

(c) recommendation from Restrictive Covenants Subcommittee regarding Restrictive Covenant Management Agreement with RealManage for enforcement of restrictive covenants, including related database;

9. Report from Waterman, Shanks & Spainhour regarding petition to Williamson County Commissioners Court regarding posting signs to prohibit overnight parking of commercial vehicles;

ENGINEER ITEMS

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

(a) previous directives;

(b) 500 MG (0.5 MG) Ground Storage Tank Rehab-2006;

(d) pass-through water and wastewater service to Knight tract;

LANDSCAPE AND MAINTENANCE ITEMS

11. Report from TruGreen LandCare, L.L.C. on landscape maintenance, including previous directives;

12. Report from Directors Davis and Roberts regarding requests for proposal for landscape maintenance;

13. Maintenance of easement behind St. Genevieve (Director McMullen);

14. Payment arrangement for maintenance of property owned by BHC Owners Association, Inc. (Director McMullen);

PARK AND POOL ITEMS

15. Report from YMCA on pool management and operations, including purchase of chairs;

16. Location of trash cans at pools (Director Davis);

17. Report from BHCOA Subcommittee regarding playscape at Tonkawa Park;

18. Report from Pool Subcommittee regarding installation of security cameras;

DISTRICT COMMUNICATION ITEMS

19. Newsletter, website, brochure and District-wide calendar;

20. Report from Communications/Media Subcommittee regarding proposal for design and publication of the welcome packets;

ATTORNEY ITEMS

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

(a) previous directives;

(b) subcommittee assignments;

(d) status of Marquee Sign and Drop Box/Parking Expansion compliance with Texas Department of Licensing and Regulation Architectural Barriers (deadline is August 20, 2007);

GENERAL MANAGER ITEMS

22. Report from ECO Resources, Inc. on District operations, including:

(a) previous directives;

(b) system maintenance and repairs;

(d) solid waste and recycling report from Texas Disposal Systems, Inc.;

(e) request to Williamson County to place sidewalks at Block House Creek Elementary School, including possible contribution from BHC Owners Association, Inc.;

(f) allocation of surplus funds;

(g) status of recommended repairs in connection with wastewater system televising work (inflow and infiltration study);

(h) notice of noncompliance regarding TPDES permit;

(i) TCEQ Public Drinking Water Recognition Program; and

(j) JPMorgan Chase Positive Pay and ACH Debit Blocking Services;

SUBCOMMITTEE REPORTS

23. Report from Subcommittees, including:

(a) Events Subcommittee regarding SummerFest;

(b) Fence Subcommittee, including proposal(s) for wrought iron gate and fence along the easement at St. Genevieve and fence along Susan Lane Channel to close gap;

(c) Intergovernmental Liaison Subcommittee regarding flashing lights at crosswalk at Block House Drive and Creek Run Drive and Autrey Drive, including possible contribution from BHC Owners Association, Inc.; and

(d) Personnel Subcommittee regarding on-site manager;

DISCUSSION/ACTION ITEMS

24. Scottsdale Drive;

25. District residents’ use of Cedar Park library and recreational facilities (Director Bennett);

26. Status of Scout project to remove graffiti on Jumano bridge (Director Bennett);

27. Potential litigation regarding City of Leander’s taking of Block House Municipal Utility District property in connection with proposed wastewater interceptor line;

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 Hector Alanis at ECO Resources, Inc., 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.