BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

January 23, 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, January 23, 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.

1.                           Citizens’ communications;

AUDIT ITEMS

2.                           Management Discussion and Analysis for the fiscal year ended September 30, 2007;

3.                           Representation Letter;

4.                           Report from Pena Swayze & Co., L.L.P. on audit of the District’s financial statements for the fiscal year ended September 30, 2007, including approving the Audit Report and authorizing filing the Audit Report with the Texas Commission on Environmental Quality and the City of Cedar Park;

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.)

5.                           Minutes of December 19, 2007 Board meeting;

6.                           Payment of bills and invoices;

7.                           Fund transfers;

RESTRICTIVE COVENANT ENFORCEMENT ITEMS

8.                           Restrictive covenants enforcement, including:

(a)                       report from Waterman & Spainhour, including:

(1)                      16609 Shipshaw River Drive;

(2)                      2801 Alexander Drive; and

(3)                      3316 Bardolino Lane; and

(b)                      restrictive covenants enforcement procedure and fines (Director Roberts);

LITIGATION AND POTENTIAL LITIGATION ITEMS

9.                           Report from Waterman & Spainhour regarding use of and damage to District property by Ridgewood South resident;

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

ENGINEER ITEMS

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

(a)                       previous directives;

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

(c)                       reclamation of floodplain of Block House Creek and Tributary #2 (Wong tract);

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

(e)                       proposals for environmental study of the creek;

LANDSCAPE AND MAINTENANCE ITEMS

12.                     Report from TruGreen LandCare, L.L.C. on landscape maintenance, including:

(a)                       previous directives; and

(b)                      proposal for clean up of the area near Susan Lane Channel;

13.                     Discuss obtaining proposal(s) for arbor care, including trimming of tree canopies (Director Roberts);

14.                     Request for proposals for landscape services (Director Roberts);

15.                     Renewal of Landscape Maintenance Agreement with TruGreen LandCare, L.L.C. (expires February 28, 2008);

PARK AND POOL ITEMS

16.                     Report from YMCA on pool management and operations, including:

(a)                       renewal of Pool Services Agreement (expires January 31, 2008); and

(b)                      Apache Pool heaters;

17.                     Report on status of District projects, including:

(a)                       ventilation of Tumlinson Pool rest rooms and lifeguard office area;

(b)                      Tonkawa Park playscape improvements;

(c)                       disc golf course;

(d)                      inventory of District signage; and

(e)                       fence along Susan Lane Channel;

18.                     Proposal for installation of security cameras, including layout (Directors Bennett and Davis);

19.                     Proposed development of Jumano Park, including possible contribution from BHC Owners Association, Inc.;

DISTRICT COMMUNICATION ITEMS

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

ATTORNEY ITEMS

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

(a)                       previous directives;

(b)                      Amendment No. 1 to Wholesale Wastewater Service Contract with the City of Cedar Park;

(c)                       Interlocal Agreement with Leander Independent School District; and

(d)                      annexation information from the City of Cedar Park;

GENERAL MANAGER ITEMS

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

(a)                       previous directives;

(b)                      system maintenance and repairs;

(c)                       patrol report from Williamson County Sheriff’s Department;

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

(e)                       cost of nets for Skate Court;

(f)                        Town Hall meeting with the Cedar Park Fire Department regarding fire safety;

(g)                      proposal for fence between Susan Lane Channel and Horizon Park;

(h)                      proposal for gated enclosure for trash cans at Apache Pool;

(i)                         Small Municipal Separate Storm Sewer System (MS4) General Permit;

(j)                         reservations for CASE conference;

(k)                      check fraud prevention services (directive from September 26, 2007);

(l)                         year-long planning calendar (Director Roberts);

(m)                   Management Services Agreement (Director Roberts);

(n)                      meeting with SWWC Services, Inc. (Director Bennett); and

(o)                      report on graffiti removal at Jumano Bridge (Director Roberts);

SUBCOMMITTEE REPORTS

23.                     Report from Subcommittees, including:

(a)                       Intergovernmental Liaison Subcommittee regarding flashing lights at crosswalk at Block House Drive and Creek Run Drive and Autrey Drive;

(b)                      Personnel Subcommittee regarding on-site manager position, including engagement of employment consultant; and

(c)                       Signage Subcommittee, including possible replacement or upgrade of existing signage;

DISCUSSION/ACTION ITEMS

24.                     Assignment from ECO Resources, Inc. to SWWC Services, Inc., including:

(a)                       Assignment and Assumption Agreement between ECO Resources, Inc., SWWC Services, Inc. and Block House Municipal Utility District;

(b)                      District Registration Form;

(c)                       Resolution Establishing Offices and Meeting Places of the Board of Directors of Block House Municipal Utility District and Establishing Locations for the Posting of Notice of Meetings of the Board;

(d)                      Secretary’s Certificate and Resolutions Regarding Manager’s Account;

(e)                       Secretary’s Certificate and Resolutions Regarding Operating Account; and

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

25.                     Resolution Confirming Annual Review of Code of Ethics and Financial Investment, Travel and Professional Services Policy and Investment Strategies and Designating Qualified Brokers and Investment Officers;

26.                     Order Establishing Rules and Regulations Governing Recreational Facilities and Related Fees and Charges (Director McMullen);

27.                     Repair of bridge at Chardonnay Crossing (Director McMullen);

28.                     Security at Walker House (Director McMullen);

29.                     Stub out of Jacqueline Drive, including requesting “no parking” signs or vacation by Williamson County (Director Roberts);

30.                     Extension of Scottsdale Drive (Director Roberts);

31.                     Meeting efficiency measures and suggestions (Director Bennett);

32.                     Project goals for 2008, including use of subcommittees (Director Bennett);

33.                     Director performance (Director Bennett);

34.                     Task monitor software (Director Davis);

35.                     Fence behind lots on Snelling Drive (Director Roberts);

36.                     “Quiet zone” (whistle ban) along Capital Metro railroad tracts at Block House Drive;

37.                     Miscellaneous directives and Board member directives;

38.                     Board member announcements; and

39.                     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.