BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

May 27, 2009

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, May 27, 2009, at 5:30 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. Utility operations and management services, including:

(a) proposals for utility operations and management services, including award of contract; and

(b) possible termination of Management Services Contract with SWWC Services, Inc.;

CITIZENS’ COMMUNICATIONS

2. 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.)

3. Minutes of April 22, 2009, April 28, 2009 and May 11, 2009 Board meetings;

BOOKKEEPING

4. Bookkeeping matters, including:

(a) payment of bills and invoices;

(b) fund transfers;

(d) return of equity from Texas Municipal League for 2007-2008 Fund Year;

5. Report from Budget and Finance Subcommittee;

RESTRICTIVE COVENANT ENFORCEMENT

6. Restrictive covenant enforcement, including:

(a) restrictive covenant enforcement policy, including:

(1) procedures for restrictive covenant litigation; and

(2) enforcement policy for removal of political signage;

(b) report from Restrictive Covenants Subcommittee;

(d) report from Waterman & Spainhour, including:

(1) 16609 Shipshaw River Drive;

(2) 2801 Alexander Drive;

(3) 607 Tumlinson Fort Drive;

(4) 2703 Tumlinson Fort Drive;

(5) 16823 Black Kettle Drive; and

(6) 409 Kathleen Lane; and

(e) termination of restrictive covenant enforcement agreement with Waterman & Spainhour and engagement letter with G. Cole Spainhour for restrictive covenant enforcement services;

ENGINEER

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

8. Storm Water Management Plan under the Phase II Small Municipal Separate Storm Sewer System (MS4) General Permit (Directors McMullen and Bennett);

LANDSCAPE

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

(a) previous directives;

(b) proposal for installation of volleyball court sand (Work Order #2406);

(d) proposal for repair of 2” irrigation main line leak by front entrance (Work Order #3015);

(e) proposal for repair of 2” irrigation main line leak in third island past entrance (Work Order #3016);

(f) proposal for May irrigation walk-through (Work Order #3074);

(g) proposal for tree trim in front of Walker House (Work Order #3292);

(h) proposal to remove mimosa tree and stump in front of Walker House (Work Order #3293);

(i) proposal to prune dead limbs from cottonwood, elm and oak trees at front and northwest of Walker House (Work Order #3294);

(j) proposal to prune tree limbs over Tumlinson Pool pump house (Work Order #3295);

(k) proposal to prune and open up Bradford pear trees on outside of north fence at Tumlinson Pool (Work Order #3296);

(l) proposal to remove tree and grind stump outside of north fence at Tumlinson Pool (Work Order #3297);

(m) proposal to remove two dead trees at Tumlinson Park per request of Director Roberts (Work Order #3298);

(n) proposal to remove ball moss from three trees in the picnic area at Tumlinson Part (Work Order #3299);

(o) proposal to install small boulders in beds throughout Block House Creek to fill areas with voids (Work Order #3313);

(p) proposal for tree removal at 1211 Pine Portage (Work Order #3314);

(q) proposal to maintain beds and mow easement along Scottsdale from 183A to McDowell Bend on a monthly basis (Work Order #3315); and

(r) proposal to fertilize three trees with ball moss (Work Order #3318);

POOLS

10. Pool operations and management, including:

(a) report from YMCA;

(b) request from YMCA for purchase of pool equipment;

(d) proposal for tree lights at Tumlinson Pool;

(e) status report on Tumlinson Pool grate/drain and pool lights (Director Roberts);

(f) pool maintenance, including pool vendors, pool chemical distribution system issues, and pool mechanical and electrical systems survey (Director Roberts);

(g) authority for Tidal Waves Swim Team to sell sno cones at Apache Pool during swim meets and events (Director Davis);

(h) report from Pool Subcommittee, including:

(1) request for proposals for pool operations and maintenance; and

(2) standard operating procedures for the pools; and

11. Phase II of the ventilation project at the Tumlinson Pool bathroom (Director Bennett);

PARKS, CREEK AND NATURE TRAILS

12. Creek maintenance, including report from Nature Trail System and Creek Maintenance Subcommittee, including:

(a) status of Phase I of creek cleaning project; and

(b) proposals for Phase II of creek cleaning project (Director Bennett);

13. District parks and facilities, including:

(a) playing field rules and application(s) for use of facilities, including revising Order Establishing Rules and Regulations Governing Recreational Facilities and Related Fees and Charges (Park Subcommittee);

(b) fencing along Block House Drive and Creek Run Drive, including repair or replacement (Director Bennett);

(d) use of Jumano Park Community Center, including authorized activities (Director Bennett);

(e) Walker House, including:

(1) security system upgrades;

(2) plans for a manager’s office at Walker House, including survey/study to determine facilities needed or available (Directors Davis and Bennett); and

(3) agreement for use of furniture (Director Roberts);

(f) “Movies in the Park”, including:

(1) commercial activity; and

(2) Texas Star Hockey Team; and

14. Scout projects and related matters (Scout Projects Subcommittee);

MAINTENANCE

15. District maintenance, including report from Maintenance Subcommittee (Director Bennett);

INTERGOVERNMENTAL ITEMS AND SECURITY

16. District security, including:

(a) monthly report from Williamson County Sheriff’s Office Off-Duty Deputies;

(b) prevention of animal cruelty in District greenbelt (Director Roberts); and

COMMUNICATIONS / MEDIA / WEBSITE

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

18. Status of Welcome Packets (Directors Junk and Roberts);

GENERAL MANAGEMENT AND OPERATIONS

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

(a) previous directives;

(b) system maintenance and repairs;

(d) park and playground walk-through maintenance checklist (Director Roberts);

(e) Architectural Control Committee;

(f) write-offs, including report regarding review of past write-offs; and

20. Solid waste disposal and recycling, including:

(a) report from Texas Disposal Systems, Inc.;

(b) clean-up days;

(d) Texas Disposal Systems, Inc. policies and procedures (Director Roberts); and

(e) Order Adopting Rules Governing Water, Wastewater and Drainage Services and Regulating Privileges on Land and Easements Owned by the District;

ATTORNEY

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

(a) previous directives;

(b) post office address change;

(c) Water and wastewater service to the Knight Tract and conveyance of water and wastewater facilities to City of Cedar Park, including Agreement Regarding Water and Wastewater Services to the Knight Tract;

(d) Order Establishing Water and Wastewater Service Rates, Charges, Tap Fees and Park Fees, and Adopting General Policies with Respect to the District’s Water, Wastewater and Drainage Systems;

(e) landscape and irrigation at intersection of Highway 183A and Scottsdale Drive, including:

(1) Amendment No. 2 to Williamson County License Agreement; and

(2) Landscape License Agreement with Central Texas Regional Mobility Authority;

(f) Merchant Services Agreement with CyberSource Corporation and Harris Trust and Savings Bank;

(g) Pedernales Electric Cooperative, Inc. 2009 Board of Director Election; and

(h) H.B. 2705;

LITIGATION

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

OTHER DISCUSSION/ACTION ITEMS

23. Meeting protocol and procedure (Director Davis);

24. Signage, including “no parking” signs;

25. Community service, including possible court-ordered community service (Director McMullen);

26. Stub-out of Block House Creek Drive (Director Bennett);

27. Foreclosure Report;

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

29. Miscellaneous directives and Board member directives;

30. Board member announcements; and

31. 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 Andrew Hunt 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.