BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

December 17, 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, December 17, 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 November 19, 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;

(d) appointment of Security Administrator for JPMorgan Chase bank accounts;

RESTRICTIVE COVENANT ENFORCEMENT

4. Restrictive covenant enforcement, including:

(a) scope of services under Restrictive Covenant Management Agreement with Pinnacle Texas Management, LLC, including Architectural Control Committee matters;

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

(1) 16609 Shipshaw River Drive;

(2) 2801 Alexander Drive;

(3) 607 Tumlinson Fort Drive;

(4) 15352 English River Loop; and

(5) appointment of Architectural Control Committee;

ENGINEER

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

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

LANDSCAPE

7. Landscape maintenance, including report from SunTerra Landscape Services, LP, including:

(a) previous directives;

(b) irrigation inspection, including:

(1) proposal for repair of irrigation main line leak; and

(2) proposal for irrigation repairs;

(c) proposal for clearing of west fence line in Jumano Park at wastewater treatment plant building site (Director Roberts); and

(d) proposal for brush chipping in Jumano Park at wastewater treatment plant building site (Director Roberts);

POOLS

8. Pool operations and management, including:

(a) report from YMCA, including:

(1) preventive maintenance and warranty of pool heaters at Apache Pool (SWWC Services, Inc.); and

(2) report on off-season winter maintenance and upcoming spring and summer swim season schedule and events;

(b) proposals for replacement of sand in sand filters at Apache Pool (SWWC Services, Inc. / YMCA);

(d) proposal(s) for pool drain covers;

PARKS, CREEK AND NATURE TRAILS

9. Creek maintenance, including report from Nature Trail System and Creek Maintenance Subcommittee regarding environmental study of the creek and creek cleaning project, including request for proposal for project;

10. District parks and facilities, including:

(a) report on status of:

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

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

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

(4) bike trail repairs and signage (Directors McMullen and Bennett / SWWC Services, Inc.); and

(5) annual Christmas Holiday event scheduled for December 20 (Christmas Event Subcommittee);

(b) Jumano Park (wastewater treatment plant building and site) improvements, including:

(1) report on improvements, including safety feature improvements (Director Bennett);

(2) proposed rules for use of the building (SWWC Services, Inc.); and

(3) access, including access by emergency services (Director Bennett);

(c) proposals for installation of benches and dog waste stations along the jogging/walking loop in the greenbelt (SWWC Services, Inc.);

(d) District signage (Director Bennett); and

(e) Susan Lane Channel, including security and access (Director Bennett and SWWC Services, Inc.);

MAINTENANCE

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

(a) asphalt repairs, including proposals for repair of sunken manholes; and

(b) status of installation of “no dumping” signs on District-owned vacant lots and in Jumano Park;

INTERGOVERNMENTAL ITEMS AND SECURITY

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

COMMUNICATIONS / MEDIA / WEBSITE

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

14. Proposal from Tanya Emmons for Welcome Packet;

GENERAL MANAGEMENT

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

(a) previous directives;

(b) system maintenance and repairs;

(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;

(e) purchase and installation of park signs;

(f) water conservation - Water IQ; and

(g) bank fees for credit card payments;

SUBCOMMITTEE REPORTS

16. Reports from Subcommittees;

ATTORNEY

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

(a) previous directives;

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

(1) Code of Ethics and Financial Investment, Travel and Professional Services Policy;

(2) investment strategies;

(3) Resolution Designating Investment Brokers; and

(4) Resolution Regarding District Investments;

LITIGATION

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

OTHER DISCUSSION/ACTION ITEMS

19. Post office address change (Director McMullen);

20. Federal Railroad Administration (FRA) application regarding “quiet zone” (whistle ban) along Capital Metro railroad tracks at Block House Drive (Director Roberts);

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

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

23. Miscellaneous directives and Board member directives;

24. Board member announcements; and

25. 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.