BLOCK HOUSE MUNICIPAL UTILITY DISTRICT

July 22, 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, July 22, 2009, 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 June 24, 2009 Board meeting;

BOOKKEEPING

3. Bookkeeping matters, including:

(a) payment of bills and invoices;

(b) fund transfers;

(d) Resolution Designating Investment Brokers; and

(e) transfer of District accounts to Ironstone Bank, including:

(1) account documents, including signature cards and Depository Pledge Agreement;

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

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

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

4. Report from Budget and Finance Subcommittee;

RESTRICTIVE COVENANT ENFORCEMENT

5. Restrictive covenant enforcement, including:

(a) restrictive covenant enforcement policy, including procedures for restrictive covenant litigation;

(b) report from Restrictive Covenants Subcommittee;

(d) report from G. Cole Spainhour, including:

(1) 16609 Shipshaw River Drive;

(2) 2801 Alexander Drive;

(3) 409 Kathleen Lane; and

(4) 2714 Alexander Drive;

ENGINEER

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

(a) previous directives; and

(b) 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;

LANDSCAPE

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

(a) previous directives;

(b) proposal for Tumlinson Pool Parking Area (Work Order #3316);

(d) ratification of Work Order #4563 for fallen limbs at Walker House;

POOLS

8. Pool operations and management, including:

(a) report from YMCA;

(b) Pool Services Agreement with YMCA of Austin (Director Roberts);

(d) report from Pool Subcommittee, including:

(1) standard operating procedures for the pools; and

(2) Pool Use Agreement with Block House Creek Swim Team (expired July 15, 2009);

STORM WATER SYSTEM AND CREEK MAINTENANCE

9. Storm Water Management Plan under the Phase II Small Municipal Separate Storm Sewer System (MS4) General Permit (Directors McMullen and Bennett), including Year 2 compliance items;

10. Creek maintenance and creek cleaning project, including:

(a) report from Nature Trail System and Creek Maintenance Subcommittee, including status of Phase I of creek cleaning project; and

(b) authorization to solicit and/or advertise for bids for subsequent phases of the creek cleaning project;

PARKS AND NATURE TRAILS

11. 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) proposal for auxiliary entrance at Tonkawa Park (Budget and Finance Subcommittee);

(d) proposal for signs prohibiting unauthorized motor vehicles (General Manager); and

(e) proposals for installation of benches and dog waste stations along the jogging/walking loop in the greenbelt in conjunction with BHC Owners Association (Director McMullen);

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

MAINTENANCE

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

INTERGOVERNMENTAL ITEMS AND SECURITY

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

COMMUNICATIONS / MEDIA / WEBSITE

15. Newsletter, website, brochure, water bill inserts and District-wide calendar, including request to post survey for doctoral study on District website (Director McMullen);

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

GENERAL MANAGEMENT AND OPERATIONS

17. District operations, including report on:

(a) previous directives;

(b) system maintenance and repairs;

(a) write-offs;

(b) proposal for business cards for Directors; and

11. Solid waste disposal and recycling, including:

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

(b) clean-up days;

ATTORNEY

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

(a) previous directives;

(b) post office address change;

(c) landscape and irrigation at intersection of Highway 183A and Scottsdale Drive, including Landscape License Agreement with Central Texas Regional Mobility Authority;

(d) signage, including “no parking” signs;

(e) audit services, including consider request for proposals;

(f) budget and tax items, including:

(1) schedule for adopting 2009/2010 budget and setting 2009 tax rate; and

(2) notification to Williamson County regarding publication of Notice of Public Hearing on Tax Rate;

(g) election matters, including effect of United States Supreme Court decision in Northwest Austin MUD No. 1 v. Eric H. Holder, Jr., Attorney General (557 U.S. ______ [2009]) on requirement to obtain preclearance of changes to election procedures under Voting Rights Act of 1965;

(h) 2009 legislative update;

(i) archiving Board meeting minutes; and

(j) storage of District records;

LITIGATION

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

14. Southwest Water Company v. Crossroads Utility Services, L.L.C., Stephen C. Held, Margret Wingrove and Gary Spoonts and related matters concerning the District’s operations and general management services;

OTHER DISCUSSION/ACTION ITEMS

15. Foreclosure Report;

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

17. Miscellaneous directives and Board member directives;

18. Board member announcements; and

19. 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 Ilyse Lerner at Armbrust & Brown, L.L.P, Attorney for the District, at 435-2300 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.