Ordinance No. 13,145ORDINANCE NO. 13,145
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST TO THE FIRST
AMENDMENT TO THE UTILITY FUNCTIONS AND SERVICES
ALLOCATION AGREEMENT WITH HARRIS COUNTY MUNICIPAL
UTILITY DISTRICT NO. 528, GRAHAM MORTGAGE CORPORATION,
LONE STAR 5000 CORPORATION AND TEXAS CAPITAL
DEVELOPMENT CORPORATION, INC.; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
*********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the City Manager to execute and the City Clerk to attest to the First Amendment to
the Utility Functions and Services Allocation Agreement with Harris County Municipal Utility
District No. 528, Graham Mortgage Corporation, Lone Star 5000 Corporation and Texas Capital
Development Corporation, Inc. A copy of such amendment is attached hereto as Exhibit "A"
and incorporated herein for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown. .r
INTRODUCED, READ and PASSED by the affirmative r of the City Council of the
City of Baytown this the 10th day of March, 2016.
ATT T:
LETICIA BRYSCH, C Clerk
APPROVED AS TO FORM:
A
GNACIO RAMIREZ, SR , ity Attorney
DONCARLOS, Mayor
RAKarenTiles!
Exhibit "A"
FIRST AMENDMENT
TO THE UTILITY FUNCTIONS AND SERVICES ALLOCATION
AGREEMENT
STATE OF HARRIS §
COUNTY OF HARRIS §
This First Amendment to Utility Functions and Services Allocation Agreement
(this "Amendment ") is made and entered into this _day of March, 2016 (the
"Effective Date ") by and between THE CITY OF BAYTOWN, TEXAS, a municipal
corporation and home -rule city situated in Harris and Chambers Counties, Texas (the
"City"), GRAHAM MORTGAGE CORPORATION, a Texas Corporation ( "Graham ");
LONE STAR 5000 CORPORATION, a Texas Corporation ( "Lone Star "); TEXAS
CAPITAL DEVELOPMENT CORPORATION, INC., a Texas corporation ( "TCDC ")
(collectively the "Developers "), and HARRIS COUNTY MUNICIPAL UTILITY
DISTRICT NO. 528, a body politic and corporate and a governmental agency of the State
of Texas under the provisions of Article XVI, Section 59 of the Texas Constitution and
Chapters 49 and 54 of the Texas Water Code, as amended (the "District ").
RECITALS
WHEREAS, on January 28, 2016, the City Council authorized a Utility Functions
and Services Allocation Agreement (the "Agreement ") with the District and the
Developers; and
WHEREAS, on February 2, 2016, five days after City Council authorized the
Agreement and before the District had the opportunity to annex the property to which the
City consented, the City purchased 118.216 acres of such property (the "City Property ");
and
WHEREAS, instead of disannexing the property as contemplated in the
Agreement, the City Council on March 10, 2016, amended Resolution No. 2393 to
exclude the City Property; and
WHEREAS, the parties desire to amend the Agreement to remove the City
Property and to reduce the capacity requirements that will be reserved by the City for the
District as follows:
First Amendment to Utility
Functions and Services Allocation Aereement, Page 1
Contract Year
1
n7asimnm
Number of ESFCs
in Agreement
1
nla.imu
m Numbcr of ESFCs
in this
Amendment
:
1 •
11
'
1 1
11'
1
••
NOW, THEREFORE, for and in consideration of the mutual promises,
obligations, and benefits contained herein, the City and the District agree as follows:
AGREEMENT
1. Recitals. The recitals set forth above are declared true and correct and are
hereby incorporated as part of this Amendment.
2. Definitions. Unless a different meaning clearly appears from the context, words and
phrases as used in this First Amendment shall have the same meanings as in the
Agreement.
3. Amendments.
a. The sixth recital contained in the Agreement shall be amended to read as
follows:
WHEREAS, TCDC additionally owns approximately 90.3876 acres described
in the attached Exhibit "A -4," which it desires to annex into the District and
which it has petitioned the City for its consent to annex into the District
( "TCDC II Tract "); and
b. The definition of "Consent Resolution" in Section 1.1 of the Agreement
shall be amended to read as follows:
Consent Resolution means Resolution No. 2393 as amended by the resolution
of even date herewith adopted by the City consenting to the creation of the
District and the annexation of the Lone Star Tract, the TCDC Tract and the
TCDC II Tract into the District.
C. The definition of "Development Plan" in Section 1.1 of the Agreement shall be
amended to read as follows:
Development Plan means the conceptual plan for the development within the
District of the Tract attached as Exhibit "E" and as updated by agreement of
First Amendment to Utility
Functions and Services Allocation Agreement, Page 2
the parties in writing should any change in a zoning district designation of
such properties require the same.
d. The definition of "District" in Section 1.1 of the Agreement shall be amended to
read as follows:
District means Harris County Municipal Utility District No. 528 a body
politic and corporate and a governmental agency of the State of Texas
created by V.T.C.A. Spec Dist. Chapter 8318 and organized under the
provisions of Article XVI, Section 59 of the Texas Constitution and
Chapters 49 and 54 of the Texas Water Code, as amended, and which is
proposed to include within its boundaries the approximately 378.552
acres of land situated wholly within the corporate limits of the City, as
described in Exhibit "A."
e. The definition of "Tract" in Section 1.1 of the Agreement shall be amended
to read as follows:
Tract means collectively, the Graham Tract, the Lone Star Tract, the TCDC
Tract and the TCDC II Tract, as more fully described in Exhibits "A -1 to A-
4," and to which the City has agreed to provide the services described in, and
subject to the terms of, this Allocation Agreement.
f. Section 1.2 "Exhibits" of the Agreement is hereby amended to read as follows:
1.2 Exhibits. The following Exhibits attached or to be
attached to this Allocation Agreement are a part of the Contract as though
fully incorporated herein:
Exhibit A
Description of the Tract
Exhibit A -1(a)
Graham Tract
Exhibit A -1(b)
Graham Tract
Exhibit A -2
Lone Star Tract
Exhibit A -3
TCDC Tract
Exhibit A -4
TCDC II Tract
Exhibit B
In -City Procedures
Exhibit C
Regional Improvements
Exhibit D
Facilities Required
Exhibit E
Development Plan
9. Section 1.3 "Disannexation" of the Agreement is hereby deleted in its entirety.
First Amendment to Utility
Functions and Services Allocation Aereement, Page 3
h. Section 2.1 "City's Obligation to Provide Services" of the Agreement is hereby
amended to read as follows:
2.1. City's Obligation to Provide Services. Subject to the
Developers complying with Section 2.7, the City agrees to provide Water
Supply Service to the land in the District in accordance with the terms and
conditions of this Allocation Agreement. In order to obtain Water Supply
Service, the District agrees that it will connect to the City Water System as
approved /directed by the City and extend the lines inside and /or outside
the District as necessary for the City to provide Water Supply Service to the
land in the District being developed. Subject to the Developers complying
with Section 2.7, the City agrees to accept Wastewater from and to
provide Wastewater Service to the land in the District to serve the land being
developed in accordance with the provisions of this Allocation Agreement. In
order to obtain Wastewater Service, the District agrees that it will connect to
the City Wastewater System as approved /directed by the City and extend
the lines inside and/or outside the District as necessary for the City to provide
Wastewater Service to the land being developed.
Notwithstanding any other provision of this Agreement, in the event
the District fails to annex the Lone Star Tract, TCDC Tract and TCDC II
Tract prior to March 31, 2016, the City's conditional consent to the
creation of the District and the annexation of property into the same
granted pursuant to Resolution Nos. 2393 and _ and this Agreement
shall be null and void and the parties hereto agree for themselves, their
successors and assigns that they will not challenge or otherwise contest the
fact that the consent has not been granted and shall not take further steps
to create or confirm the District or annex property into the District without
petitioning and obtaining such prior consent from the City via a
subsequent resolution.
All services to be provided by the City herein shall be expressly
subject to the payment of the appropriate impact fees and other fees
specified in this Allocation Agreement and the City's Code of Ordinances.
Section 2.4 "Maximum Number of Connections" of the Agreement shall be
deleted in its entirety and replaced with the following:
2.4 Maximum Number of Connections. The City agrees to
provide up to 1294 ESFCs to serve the proposed 378.552 acres to be
included in the District based upon a phased -in development, which
development and number of ESFCs are to be approved by the City; provided,
however, the maximum number of connections shall not exceed the following
in any contract year:
First Amendment to Utility
Functions and Services Allocation Agreement, Page 4
Contract
2016
of
ESFC
571
2017
723
2018
818
2019
914
2020
1009
2021
1104
2022
1199
2023
1294
j. Section 2.7 "Design and Construction of the Facilities; Regional
Improvements; Easement," Subsection 1 "Phase I" of the Agreement is
hereby amended to read as follows:
L Phase I. Installation of the following sanitary sewer improvements:
a. sanitary sewer lines from the Tract along Tri City Beach
Road and Evergreen Road to the existing Evergreen Lift Station
at the intersection of Tri City Beach Road and Evergreen Road
on or before the earlier of (i) two (2) years from the effective
date of this Agreement, or (ii) the issuance of any certificate
of occupancy or certificate of completion for any structure
within the Lone Star Tract, the TCDC Tract or the TCDC II
Tract;
b. sanitary sewer lines to route discharges from the north/south
service areas of District to a manhole at the intersection of Tri
City Beach Road and Evergreen Road before being discharged
into Evergreen Lift Station on or before the earlier of (i) two
(2) years from the effective date of this Agreement or (ii)
the issuance of any certificate of occupancy or certificate
of completion for any structure within the Lone Star Tract, the
TCDC Tract or the TCDC II Tract;
C. a lift station on the west side of Tri -City Beach Road north
of its intersection with the railroad tracks on or before the
earlier of (i) two (2) years from the effective date of this
Agreement, or (ii) the issuance of any certificate of occupancy
or certificate of completion for any structure within the Lone
Star Tract, the TCDC Tract or the TCDC II Tract;
k. Section 3.1 "Development Plan" of the Agreement is hereby amended to
read as follows:
3.1. Development Plan. The Development Plan for the
overall development of the 378.552 acres proposed to be the District is
attached as Exhibit "C." The City and the Developers agree that specific
approvals are required for each phase or part of the Development Plan,
First Amendment to Utility
Functions and Services Allocation Aereement, Page 5
provided, however, that the City shall not withhold such approvals if the
applicable phase or part is in conformance with the Development Plan. In
addition, the parties agree as follows:
(a) The Developers understand and agree that a portion of the
consideration for the City to enter into this Allocation
Agreement is the Developers obligation to develop their
property consistent with the Development Plan. The creation of
the District was predicated on the Developers' ability to
develop their property in conformance with the
Development Plan. The City, the Developers, and the
District agree that the Developers shall develop, and the
City shall allow development of, the Tract in accordance
with the Development Plan; provided that the same complies
with the Code of Ordinances. The current Development Plan
provides for approximately 90.4 net acres of single family
development, 30 net acres of multifamily development,
and 118 net acres of commercial development; and the
balance of the land shall be for recreational facilities,
stormwater detention, open spaces and roadways, as shown on
Exhibit "C." Any material change to the Development Plan, as
determined by the City, shall be approved by the City and
shall conform to the then - current City standard criteria and
Code.
(b) The City, the Developers, and the District recognize the
City's rights and obligations to ensure that all Facilities are
constructed in accordance with approved plans and
specifications. The City, the Developers, and the District agree
that the City shall be named as an additional beneficiary on all
construction, payment, performance, and maintenance bonds
and that no additional bonds shall be required of the
Developers or the District.
(c) The obligations provided in this Article shall be
obligations solely of the applicable Developer and shall not
be obligations of the District or any other party. Further, each
Developer's obligations in this Article shall survive the
confirmation of the District and shall exist for the term of
this Allocation Agreement. Notwithstanding any other
provision of this Allocation Agreement, a Developer may not
assign any of its obligations under this Article to the District or
any other person or entity without the prior written consent of
the City.
First Amendment to Utility
Functions and Services Allocation Agreement, Page 6
1. Section 7.14 "Term and Effect" of the Agreement is hereby amended to read as
follows:
7.14. Term and Effect. Except as otherwise specifically set forth
herein, including this section and Section 2.1, this Allocation Agreement
shall become effective on the date of execution by the City and shall remain
in effect until the earlier to occur of (i) the dissolution of the District by the
City, or (ii) the expiration of thirty -five (35) years from the effective date
hereof. Further, this Allocation Agreement shall automatically terminate
unless extended in writing by mutual agreement between City and
Developers in the event that (a) the Lone Star Tract, the TCDC Tract and the
TCDC II Tract is not annexed into the District by March 31, 2016, or (b) the
District is not confirmed on or before May 7, 2016. The City may terminate
this Allocation Agreement (w) in accordance with Section 2.1 hereinabove,
(x) after two (2) years from its effective date if the City has not, by that
date, received a properly executed copy of the assignment of the
Developers obligations relating to Water Supply Service and Wastewater
Service to the District in a form approved by the City, (y) after two (2) years
from its effective date should Developer fail to complete the installation
of the Phase I Regional Facilities, and /or (z) after three (3) years from its
effective date should the Developers fail to commence any other
construction of Facilities to serve the land in the District. Notice shall be
given by the City in writing to the Developers and the District at least thirty
(30) days prior to the termination date.
4. Except as specifically amended by this Amendment, the Agreement shall remain in
full force and effect in accordance with its original terms and conditions.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment in
multiple copies, each of equal dignity, as of the date set forth on the first page hereof.
CITYOFBAYTOWN
LIZA
ATTEST:
By:
LETICIA BRYSCH, City Clerk
First Amendment to Utility
Functions and Services Allocation Agreement. Page 7
RICHARD L. DAVIS, CityManager
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR., City Attorney
DEVELOPERS:
GRAHAM MORTGAGE CORPORATION
SCOTT A. MORRIS, Vice President
LONE STAR 5000 CORPORATION
JOHN C. WELLS, Vice President
TEXAS CAPITAL DEVELOPMENT
CORPORATION, INC.
JOHN C. WELLS, Vice President
"DISTRICT"
HARRIS COUNTY MUNICIPAL
UTILITY DISTRICT NO. 528
Name:
Its: President, Board of Directors
First Amendment to Utility
Functions and Services Allocation Agreement, Page 8
STATE OF TEXAS §
COUNTY OF §
Before me, , the undersigned notary public, on this day
personally appeared Scott A. Morris in his capacity as Vice President of Graham Mortgage
Corporation., to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed that instrument for the purposes and consideration
therein expressed.
Given under my hand and seal of office this day of , 2016.
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
STATE OF TEXAS §
COUNTY OF §
Before me, , the undersigned notary public, on this day
personally appeared John C. Wells, in his capacity as Vice President of Lone Star 5000
Corporation, to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed that instrument for the purposes and consideration
therein expressed.
Given under my hand and seal of office this day of , 2016.
NOTARY PUBLIC IN AND FOR
THE OF TEXAS
STATE OF TEXAS §
COUNTY OF §
Before me, , the undersigned notary public, on this day
personally appeared John C. Wells in his capacity as Vice President of Texas Capital
Development Corporation, Inc., to be the person whose name is subscribed to the foregoing
First Amendment to Utility
Functions and Services Allocation Aereement Page 9
instrument, and acknowledged to me that he executed that instrument for the purposes and
consideration therein expressed.
Given under my hand and seal of office this day of
2016.
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
STATE OF TEXAS §
COUNTY OF §
Before me, , the undersigned notary public, on this day
personally appeared in his capacity as President of Harris
County Municipal Utility District No. 528, to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed that instrument for the
purposes and consideration therein expressed.
2016.
Given under my hand and seal of office this day of
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
R:' +Karen'.FilesiContracts` In -City Municipal Utility District Contract & Ordinance\MUD 528\FirstAmendment2AllocationAgreement .docx
First Amendment to Utility
Functions and Services Allocation Agreement, Page 10
STATE .OF TEXAS)
COUNTY OF HARRIS)
HC MUD NO. 529 - TRACT 1)
FIELD NOTES of a 28.5456 acre tract of land situated in the William Scott Lower
league, Abstract No-. 6S, Harris County, Texas, and tieing out of and a part of a 1541 acre
tract ofland conveyed to Ashbel Smith Land Company by B, W. Armstrong, et al, by
Deed dated November 29, 1935, and recorded in Volume 996 at Page 379 of the Deed
Records of Harris County, Texas. This 28.5456 acre tract of land is more particularly
described by metes and bounds as follows.
to -wit:
NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL
COORDINATES REFER TO'1 FIE TEXAS STATE PLANE COORDINATE SYSTEM,
SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL
DISTANCES. SCALE FACTOR ;= 0.9998389. REFERENCE IS MADE TO THE
PIAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS
DESCRIPTION.
BEGINNING at a Y� inch ironrod, with cap, set at the intersection of the Northwest right-
of-way line of State Highway No. 146 (200 feet wide right-of-way) with the East right-
of-way of the Missouri pacific Railroad (Parcel No. 1 containing 3.66104 acres conveyed
by Ashbe) Smith Land Company to Missouri Pacific Railroad Company by Deed dated
January 9, 1967 and reborded in Volume 6644 at Page 486 of the Deed Records of Harris
County, Texas). Said point being the Southwest comer and POINT OF BEGINNING of
this tract and having a State Plane Coordinate Value of N=13,&31,254.86, and
E=3,248,223:71
THENCE: North 24015'03" West along the Southernmost West line of this tract and the
East right-of-way line of said Missouri Pacific Railroad for it distance of 540.66 feet to a
%: inch iron, with cap, set for the BEGINNING POINT of a curve to the right, concave
Easterly.
THENCE: Along and around said curve to the right, in a Northwesterly direction, along
the Southernmost West line ofthis tract and the East right-of-way line of said Missouri
Pacific Railroad, said curve having a central angle of 06137'49", a radius of 1065.93 feet,
and a chord bearing and distance of North 20°56'07" West 123.28 feet, for an are length
of 123.35 feet to a fence comer post found for an interior comer of this tract and an
exterior corner of said Missouri Pacific Railroad,
THENCE: South 71027'32" West along the Westernmost South line ofthis tract and an
exterior line of said Missouri Pacific Railroad for a distance of 30.00 feet to a fence
corner post found for an exterior corner ofthis tract and an interior comer of said
Missouri Pacific Railroad; said point being the BEGINNING POINT of a curve to the
right, concave Easterly.
EXHIBIT
Alla
PAGE Z - 28.5456 ACRES, TRACT 1.
THENCE: Along and around said curve to the right, in a Northerly direction, along the
Northernmost West line of this tract and the East right-of-way line of said Missouri
Pacific Railroad, said curve having a central angle. of 17°22'22", a radius of 1095.93 feet,
and a chord bearing of North 08057'32" West 331.03 feet, for an arc length of 332.30 feet
to a 'fi inch iron rod, with cap, set for the TERMINATION POINT of said curve.
THENCE: North 00°22'43" West along the Northernmost West line of this tract and the
East right-of-way line of said Missouri Pacific Railroad for a distance of 164.82 feet to a
fence comer post found at the intersection of said line -with the South right-of-way line of
Alexander Drive (120 feet wide right -,of -way) for the Northwest comer of this tract.
THENCE: South 88°36'31" East along the South right-of-way line of South Alexander
Drive and the North line of this tract for a distance of 742.80 feet to a concrete right-of-
way monument found for an angle Point in said line.
THENCE. South 88'51'51" East along the South right-of-way line of South Alexander
Drive and the North line of this tract for a -distance of 648.31 feet to a concrete right-of-
way monument found for the BEGINNING POINT of a curve to the right, concave
Southerly.
THENCE: Along and around said curve to the right, along the North line of this tract and
the South right-of-way line of said South Alexander Drive, in an Easterly direction, said
curve having a central angle of 07°23'27", a radius of 2804.76 feet, and a chord bearing
and distance of South 84050'16" East 361.55 feet,. for an arc length of 361.80 feet to a %a
inch iron rod, with cap, set for the Northeast corner of this tract at the intersection of the
South right -of --way line -of South Alexander Drive with a West right-of-way line of State
Highway No. 146.
THENCE: South 18°20'49" East along the East line of this tract and a West right-of-way
line of said State Highway No. 146, for a distance of 156.45 feet to a y: inch iron rod,
with cap, set for the Southeast corner of this tract And an interior corner of said State
Highway No. 146 right-of-way. Said point being in a curve to the right, concave
Northerly.
THENCE: Along and around said curve to the right, in a Westerly direction, along the
South line. of this tract and the North right-of-way line of said State Highway No. 146,
said curve having a central angle of 07'l 2'0 1 ", a chord bearing and distance of South
48000147" West 476.69 feet; for an arc length of 477.00 feet to a % inch iron rod, with
cap, set for the TERMINATION POINT of said
THENCE: South 59°19'20" West along the South line of this tract and the North right-
of-way line of said State Highway No. 146 for it distance of 478.02 feet to a %x inch iron
rod, with cap, set for an angle point in. said line.
PAGE 3 — 28.5456 ACRES, TRACT 1,
THENCE: South 65°20' 11" West along the South line of this tract and the North tight -
of -way line of said State Highway No. 146 for a distance of 756.46 feet to the PLACE
OF BEGMIING and containing withiin these boundaries 28.5456 acres of land.
SURVEYOR'S CERTIFICATE
I, Julien Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify
that the foregoing field notes were prepared from an actual survey made on the ground,
under my supervision, during April and May of 2005 and that all lines, boundaries and
landmarks are accurately described therein.
WITNESS my hand and seal at Baytown, Texas, this the 91h day of May, A. D., 2005.
J ene Ramsey O
Registered Professional Land Surveyor No. 4379
14-4427.28.5456ac.Tract1.fdn.doc
Hutchison & Associates, Inc. �FEWh�ts�y
1209 Decker Drive, Suite 100 """"•" ••
• �" q 4379 �+
Baytown, TX 77520
Engineering Firm #F-267 O RUR`l�y
Surveying Firm #100293-00
STATE OF TEXAS)
COUNTY OF HARRIS)
HC MUD NO. 528 - TRACT 2)
FIELD NOTES of a 180.9042 acre tract of land (net acreage of 140.9042 acres) situated in the
William Scott Lower League, Abstract No. 65, Harris County, Texas, and being out of and a part Q
of a 1541 acre tract of land conveyed to Ashbel Smith Land Company by B. W. Armstrong, et al,
by Deed dated November 29, 1935, and recorded in Volume 996 at Page 379 of the Deed Records
of Harris County, Texas. This 180.9042 acre tract of land is more particularly described by metes
and bounds as follows,
to -wit:
NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES
REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL
ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR =
0,9998389. REFERENCE IS MADE TO THE PLAT OF EVEN DATE ACCOMPANYING
THIS METES AND BOUNDS DESCRIPTION.
COMMENCING at a 2 inch iron pipe for the Northeast corner of a 1.5116 acre tract of land called
Tract 2 conveyed to Jack A. I Toward, et al, by Robert O. Busch, et al, by Deed dated March 15,
1978, and recorded at County Clerk's file No. 0530458 of the Official Public Records of Real
Property of Harris County, Texas, and in the South right-of-way line of State Highway No. 146,
200 foot wide right-of-way. Said COMMENCING POINT has a State Plane Coordinate Value of
N=13,830,522.01 and E=3,247,084.46.
THENCE: South 16107147" West along the East line of said 1.5116 acres for a distance of 677.44
feet to a 2-1/2 inch metal post for the Northwest corner and POINT OF BEGINNING of this tract.
THENCE: South 89° 15'51" East along the North line of this tract for a distance of 132.9.80 feet to
a point for the Northeast corner of this tract.
THENCE: South 0044'09" West along the East line of this tract for a distance of 2982.46 feet to
a point for an angle point in said East line,
THENCE: South 19020'00" West along the East line of this tract for a distance of 1000.68 feet to
a point for an angle point in said East line.
THENCE: South 31 008'04" West along the East line of this tract for a distance of 908.34 feet to
a point in the North right-of-way line of Evergreen Road (60 feet wide right-of-way) for the
Southeast corner of this tract.
THENCE: North 58°51'56" West along the Easternmost South line of this tract and the North
right -of --way line of Evergreen Road for a distance of409.49 feet to a'/: inch iron rod, with cap, for
the BEGINNING POINT of a curve to the right, concave Northeast,
THENCE: Along and around said curve, in a Northwesterly direction, with the Easternmost South
line of this tract of land and the Northeast right-of-way line of Evergreen Road, said curve having
a central angle of I5°59'48", a radius of 789.20 feet, and a chord bearing and distance of North
50050'40" West 219.63 feet, for an arc length of 220.34 feet to a %z inch iron rod for the
TERMINATION POINT of said curve,
THENCE: North 42°52'16" West along the Easternmost South line of this tract of land and the
Northeast right-of-way line of Evergreen Road for a distance of 685.33 feet to a % inch iron rod for
the BEGINNING POINT of a curve to the left, concave Southwest.
THENCE: Along and around said curve to the left, in a Northerly direction, with the Easternmost
South line of this tract of land and the Northeast right-of-way line of Evergreen Road, said curve
having a central angle of 03008'33", a radius of 6814.28 feet, and a chord bearing and distance of
North 44°27'42" West 373.68 feet, for an are length of 373.73 feet, to a Ya inch iron rod for the
TERMINATION POINT of said curve.
THENCE: North 46°00'58" West along the Easternmost South line of this tract of land and the
Northeast right-of-way line of Evergreen Road for a distance of 531.26 feet to a'/2 inch iron rod,
with cap, for the Southernmost Southwest corner of this tract of land and the Southeast comer of
an 80 acre tract of land conveyed to Bill W. Nance by Alvie Wright Nance, by Deed dated October
22, 1996, and recorded under County Clerk's File No. 5210455 of the Official Public Records of
Real Property of Harris County, Texas.
THENCE: North 50°36'12" East along the Southernmost West line of this tract of land and the
East line of said 80 acre tract of land, and at 2.37 feet pass a 4 inch pipe fence corner post,
continuing along said line and a barb wire fence a total distance of 536.04 feet to a 2 inch iron pipe
for an interior corner of this tract of land and an angle corner of said 80 acre tract of land.
THENCE: Noah 54045'13" West along the Westernmost South line of this tract and an exterior
line of said 80 acre tract, and along a barb wire fence, for a distance of 293.16 feet to a %Z inch iron
rod, with cap, for the Westernmost Southwest comer of this tract.
THENCE: In a Northerly direction along the Northernmost West line of this tract of land and the
East line of said 80 acre tract of land, and a barb wire fence line the following courses and
distances:
North 16°15'01" East for a distance of 1171.99 feet to a 2 inch iron pipe;
North 43°1 1'l 7" East for a distance of 341.17 feet to a 2 inch Iron pipe;
North 1800014511 East for a distance of 481.29 feet to a % inch Iron rod, with cap;
North 15°59'25" Fast for a distance of 927.59 feet to the PLACE OF BEGINNING and
containing within these boundaries 180.9042 acres of land.
SAVE AND EXCEPT, the following tract:
Being 40.0 acres in the William Scott Lower League, A-65, Harris County, Texas and being out of
a called 35.2543 acre tract described as Tract One and a called 145.0439 acre tract described as
Tract Two in that certain Trustee's Deed (By Substitute Trustee) dated May 05, 2009 from Chris
Norris, Substitute 'Trustee to Graham Mortgage Corporation as recorded under Harris County
Clerk's File No. 20090189189; said 40.0 acres being more particularly described as follows:
BEGINNING at a 4 inch iron pipe found on the northeast right-of-way line of
Evergreen Road, 60 feet wide, for a south corner of a called 80 acre tract
described in that certain Warranty Deed dated October 22, 1996 from Alvie
Wright Nance to Bill W. Nance as recorded under Harris County Clerk's File No.
S210455 and the west corner of said called 35.2543 sore tract; said iron pipe
having a Texas Plane Coordinate of X=3,277,357.1 and Y=703,195.0, South
Central Zone (NAD 27);
RMNCE, N 50°39'21" E, along a common line between said called 80 acre
tract and said called 35.2543 acre tract, a distance of 535.21 feet to a 2 inch iron
pipe found on the southwest line of said called 145,0439 acre tract for the north
comer of said called 35.2543 acre tract and an east comer of said called 80 acre
tract;
THENCE, N 54°25'55" W, along the common line between said called 145.0439
acre tract and said called 80 acre tract, a distance of 293.61 feet to a 2 inch iron
pipe found for an inner corner of said called 80 acre tract and a west comer of
said called 145.0439 acre tract;
THENCE, N 16011'08" E, along the common line between said called 80 acre
tract and said called 145.0439 acre tract, a distance of 850.00 feet to a 5/8 inch
iron rod with a yellow plastic cap set on said common line;
THENCE, S 74°31'22" E, across said called 145.0439 acre tract, a distance of
1172.73 feet to a 518 inch iron rod with a yellow plastic cap set for corner;
THENCE, 9 22020132" W, across said called 145.0439 acre tract and said called
35.2543 acre tract, a distance of 1962,26 feet to a 5/8 inch iron rod with a yellow
plastic cap set on the northeast right-of-way line of said Evergreen Road;
THENCE, N 43°04-24" W, along said northeast right-of-way line, a distance of
224.66 feet to a 1/2 inch iron rod found for the beginning of a non -tangent curve to
the left;
THENCE, Northwesterly, continuing along said northeast right-of-way line along
said curve with a central angle of 03°08'42", a radius of 6814.28 feet, a chord
which bears N 4-4°25`33" W, a distance of 373.98 feet, for an arc distance of
374.03 feet to a 1/2 inch iron rod found for the end of said curve;
THENCE, N 45°49'15" W, continuing along said northeast right-of-way line, a
distance of 531.35 feet to the POINT OF BEGINNING and containing 40.0 acres.
STATE OF TEXAS)
COUNTY OF HARRIS)
TRACT 7)
FIELD NOTES of a 27.8347 acre tract of land situated in the William Scott Lower
league, Abstract No. 65, Harris County, Texas, and being out of and a part of a 1541 acre
tract of land conveyed to Ashbel Smith Land Company by B. W. Armstrong, et al, by
Deed dated November 29, 1935, and recorded in Volume 996 at Page 379 of the Deed
Records of Harris County, Texas. This 27.8347 acre tract of land is more particularly
described by metes and bounds as follows,
to -wit:
NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL
COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM,
SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL
DISTANCES. SCALE FACTOR = 0.9998389. REFERENCE IS MADE TO THE
PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS
DESCRIPTION.
BEGINNING at a concrete right-of-way monument found at the intersection of the North
right-of-way line of Spur 55 (right-of-way width varies) and the East right-of-way line of
State Highway 146 (right-of-way width varies). Said point being Westernmost
Southwest corner and POINT OF BEGINNING of this tract and having a State Plane
Coordinate Value of N=13,832,328.10 and E=3,250,340.20. Said point being in a curve
to the left, concave Westerly.
THENCE: Along and around said curve to the left, in a Northerly direction, along the
West line of this tract and the East right-of-way line of said State Highway No. 146, said
curve having a central angle of 15°57' 18", a radius of 1629.82 feet, and a chord bearing
and distance of North 23°06'38" East 452.39 feet, for an arc length of 453.85 feet to a
concrete right-of-way monument found for the TERMINATION POINT of said curve.
THENCE: North 10°06'20" East along the West line of this tract and the East right-of-
way line of said State Highway No. 146, for a distance of 97.12 feet to a A inch iron rod,
with cap, set for the Northwest corner of this tract and the Southwest corner of that
certain 33.00 acre tract of land conveyed by Ashbel Smith Managcment Company, et at,
to Goose Creek Consolidated Independent School District by Deed dated June 5, 1991
and recorded under County Clerk's File No. N174232 of the Official Public Records of
Real Property of Harris County, Texas.
THENCE: South 73°11'36" East along the North line of this tract and the South line of
said 33.00 acre tract for a distance of 1795.57 feet to a % inch iron rod, with cap, set in
the West right-of-way line of Tri -Cities Beach Road (80 feet wide right-of-way) for the
Southeast comer of said 33.00 acres and the Northeast comer of this tract.
EXHIBIT
r
PAGE 2 — 27.8347 ACRES, TRACT 7.
THENCE: South 08°04'39" East along the Northernmost East line of this tract and the
West right-of-way line of said Tri -Cities Beach Road for a distance of 572.67 feet to a %:
inch iron rod, with cap, set for the Easternmost Southeast corner of this tract at the
intersection of the West right-of-way line of Tri -Cities Beach Road with the North right-
of-way line of said Spur 55.
THENCE: South 49°20'06" West along the Southernmost East line of this tract and the
North right-of-way line of said Spur 55 for a distance of 104.30 feet to % inch iron rod,
with cap, set for the Southernmost Southeast corner of this tract and an angle point in the
North right-of-way line of said Spur 55.
THENCE: North 73°15'09" West along the South line of this tract and the North right-
of-way line of said Spur 55 for a distance of 118.36 feet to a % inch iron rod, with cap,
set for an angle point in said line.
THENCE: North 74°30' S9" West along the South line of this tract and the North right-
of-way line of said Spur 55 for a distance of 1813.52 feet to a'A inch iron rod, with cap,
set for the Southernmost Southwest corner of this tract and an angle point in the North
right-of-way line of said Spur 55.
THENCE: North 23125'09" West along the Southernmost West line of this tract and the
North right-of-way line of said Spur 55 for a distance of 135.34 feet to the PLACE OF
BEGINNING and containing within these boundaries 27.8347 acres of land.
SURVEYOR'S CERTIFICATE
L Julien Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify
that the foregoing field notes were prepared from an actual survey made on the ground,
under my supervision, during April and May of 2005 and that all lines, boundaries and
landmarks are accurately described therein.
WITNESS my hand and seal at Baytown, Texas, this the 0 day of May, A. D., 2005.
alien Ramsey
Registered Professional Land Surveyor No. 4379
05-2696B.27.8347ac.Tract7.fdn.doc
R_�� t WILLIAM SCOTT LOWER LEAGUE
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YIELD N01'CS of n 89.6754 acro treat of lnntl etunted to rho W]LLIAiyI SC01T LOWX)R
VRAGUE, ABSTRACT No. 65, BA.RRIS County, Textus, and being out of avid a pnrt of n
1541 acro tract oflaud convoyed to Ashbot Smith Land Company by B.W. Armstrong, et
at, by Dead dated Novetnber29,193-5, nod recorded In VOintna 996 at Pngo 379 of Ilio Decd
Records ofFIARRIS County, Texas. This 89.6754 caro tract Orion(] is nroro particularly
doserlbod by malas and bounds an follows, (o -wilt:
NOIR; ALL3WARINGS ARIL LAMBERT GRM BEARINGS AtM ALL
COORDINATHS RUM TO THE, TTXAS STATE PLANE COORDINATE S YSTEtYI,
SOUM CMMIAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES.
SCALE FACTOR EQUALS 0.9998389.
IIEGINNWG at a 21nch iron plpo round at Ilia Intersection of the Soulitonst right-of-irny
11110 of Stat* 111ghwny NO,1d6 (200 foot wide right-ofwny) and the North right of -way lino
of the Missouri Pacific Rniirond 11.56848 norc tract (160 foot wide right -of -Nay jVIdth at
(his point), Sold 11.56840 aeros boing that snore land (Parcel No. 2) convoyed by Ashhol
Smith Land Company to Missouri Pnclfia Railroad Company by Dead dated January 9,
1967 and trocoKlod in Volume 66,14 at Pago 486 of the Dead Records of HARMS County,
Texas. Said point being the Southwest eornor and POINT OF BEGINNING of this tenet
and having a State ]'luno Coordinate Vohto of N equals 13,831,072.26 and F, oqunis
3,248,305.471
THENCLrt North 65 dogroas 43 tnhtutes 08 seconds Ernst nlong the West line of this tract
and filo Southeast right -of -wily Ouo of ani(] Stale Itiglurny No, 146 for a distance of 1148,10
foot to a concrete right -Of -WRY monantont found for nit unglo'point its sold lino;
TIIENNG'E: North 62 dagroes 02 minutes 22 seconds Lost along the West Tina of this tract
find tho Southeast right -of -wiry lino otanid Slots 111glnvay No.146 for a distance of 503.56
toot to n concrete right -of --way monument found the BEGIINNTNG POMT of n carve to Iite
loft, concave NorthwostorlYl
TIIENCEt Along, gpfl .arouttd Iroid.aulT2la 0103011, in n. Northonstooly-dhociton, along the - -
West lino of tbU tract and rho Sonthanst right-ar-rM lino of said Sime Highway No.146,
sold carve having n central Anglo of 15 degrees 10 ndnutes 22 addends, a radius of 1629.82
foot and n chord bearing and dtelnneo of North 50 degrees 52 minpfes 59 seconds Boat
430.34 foot, for an are length of 431,60 foot to a % inch Iron rod, with cap, sot for the
TERMINATION POINT of said cunvo at the Intersection of the Southeast right-of-way lino
ofSfato EUphway NO -146 and the South 0911"PWAY line of Spur 55 (right-of-way width
varies). Sold point being the Northwest *enter of this tract;
TIMNCEs North 76 degrees 31 mimitas 08 seconds Davi along rho North lino of thin tract
and rho South right-of-way Ono of said Spar 55, for a distance of 201.35 feet to it % incl;
Iron rod, wills cap, act for nit na81c point In villa lino;
THENCE: South 72 dogrow 00 infautes 44 seconds East along flit North lino of this tract
and the South right -of way lino of s:dd Spur 55, for a distinct of 1847.92 feet to a K India
Iron rod, with cup, sot for an nuglo point to solid llao;
TBUNCEt South 73 degrees 15 nninula8 09 seconds East nlong the North Ono of this tract
and tho South right -fir -wily line ofsotd Spur $5, for it dfatnitco of 210.88 foot to a % Inch
Iron rod, with cap, act for an nuglo point ht sold line,
71IENCLt South 40 degrees 39 minutes 54 seconds Lost "long Ilio North lino of this tract
avid the South right-of-wny lino of sold Spur 55, for a distance of 163,16 foot to a % itch
iron roil, with cap, sot nt tho luteracetlot of anld Ifno with Ole West right -of --way lino of'Iii-
Cities Beach Road (80 Not nide right of-tYay) for the Northenst cornor of this trnet;
TiMNCirt South 08 dogrow 04 minutes 39 seconds Find along din hast lino of tills tract
EXH181-T
IL-3
�mid the West right-of-way line of sold Tri-Cilics Beach Rona for n distance of 727.23 feet to
a V,, Inca Iron rod, with cap, sat fit the Intersection ofsn;d Iluu wlfh the North right of -way
lino ofenid Missouri Pneifle Rnllrand right-of-way (100 feel wido right-04wny fit tills point)
for the Southeast corner of this treat;
TIIENCE1 North 87 dogroos 58 min utoo 03 occonds Woo along tho South lino or this tract
and Clio North right -or -way lino of said Missouri Pnellic Railroad for n distance of 3266.56
foot to n foneo corner post found for an Interior corner of sold Missouri Pacific Railroad
and nu extol for corner of this tinct;
THENCE, t North 02 dogrom 01 minutos 57 seconds East along on interior line of this tract
and nn oxtariorline ofsnid MissouriPoelflo Railroad for a distance of 30.00 foot to a fence
corner post found for an Interior ocruer of this tract and nn exterior cornor of said
Missouri Paefifc Rntirond;
THENC& North 87 dogrow 58 minutes 03 seconds West nlong the South line of tills tract
and the North right of way line ofsold Missouri PnoltloRni(rood for n distance of 496.04 to
a Vs Inch Iron rod found for the REGINNING POINT of n curve to Cho right concave,
Northerly;
THENCEt Along and around snid curve to the right, In a Norlhwotorly dlroction, along
the South Una of this tract and the North right -of --way lino of sold Missouri I'ncifie
Rnilcbnd, snid carve having n control nuglo of 63 dogroos 05 mlautw 42 s000nds, a radius of
4192.96 foot nncl n chord benring and distance of North 56 degrees 26 minutes 39 eccoals
Went 515.84 foot, for an nro length of 542.86 foot to the PLA(M OR 11EOINNINO AND
CONTAINING within these bouudnrios 89.6154 nares of loud.
NOT$t The Company does not roproswit that the above aerongo or oqumro footage
calculations are eorroot. - --
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STATE OF TEXAS)
COUNTY OF HARRIS)
EAST RESIDUE TRACT)
DESCRIPTION of a 45.4783 acre tract of land situated in the William Scott Lower League,
Abstract 65, Harris County, Texas and being out of and a part of that certain 192.9755 acres
(Tract I) conveyed by Ashbel Smith Land Ltd. to Hazelwood Enterprises, Incorporated, by Deed
dated June 30, 1995 and recorded under County Clerk's File No. R462464 of the Official Public
Records of Real Property of Harris County, Texas. This 45.4783 acre tract is more particularly
described by the following metes and bounds, to -wit:
NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES
REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL
ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = NOT
APPLICABLE. REFERENCE IS MADE TO THE PLAT OF EVEN DATE
ACCOMPANYING THIS PLAT.
COMMENCING at a point at the intersection of the Northwest right-of-way line of Evergreen
Road (60 feet wide right-of-way) and the West right-of-way line of Tri -City Beach Road (80 feet
wide right-of-way). Said point being the Southeast comer of said 192.9755 acres. Said
COMMENCING POINT has a State Plane Coordinate Value of Y=13,828,194.44 and
X=3,252,867.12.
THENCE: North 08'13'19" West along the West right-of-way line of said Tri -City Beach Road
for a distance of 63.60 feet to a point for the Southeast comer and POINT OF BEGINNING of
this tract.
THENCE: South 81°46'39" West along the South line of this tract for a distance of 11.59 feet to
a point in the center of that certain 60 feet wide easement conveyed by Ashbel Smith Land
Company to Houston Lighting & Power Company by Instrument dated July 16, 1969 and
recorded in Volume 7720 at Page 236 of the Deed Records of Harris County, Texas for an angle
point in said South line of this tract.
THENCE: North 80'12'15" West along the South line of this tract and the center of said
Houston Lighting & Power Company Easement for a distance of 727.09 feet to a point.
THENCE: Continue North 80'12'15" West along the South line of this tract and the center of
said Houston Lighting & Power Company Easement for a distance of 492.42 feet to an angle
point in said line.
EXHIBIT
PAGE 2 — 45.4783 ACRES, WEST RESIDUE.
THENCE: North 7590'25" West along the South line of this tract and the center of said
Houston Lighting & Power Company Easement for a distance of 654.94 feet to a point for the
Southwest corner of this tract.
THENCE: North 29°45'42" East along the West line of this tract for a distance of 703.16 feet to
a point for the BEGINNING POINT of a curve to the right, concave Easterly.
THENCE: Along and around said curve to the right, in a Northeasterly direction, along the West
line of this tract, said curve having a radius of 1550.00 feet, a central angle of 28°26'42" and a
chord bearing and distance of North 43'06'14" East 761.64 feet, for an arc length of 769.51 feet
to a point for the TERMINATION POINT of said curve and the Northwest comer of this tract.
THENCE: Along and with the North line of this tract, the following courses and distances:
North 59°38'29"
East for a distance of 157.26 feet;
North 59°38'29"
East for a distance of 3.29 feet;
North 80°03'33"
East for a distance of 58.13 feet;
North 80°03'33"
East for a distance of 142.46 feet;
South 72°07'41"
East for a distance of 224.26 feet;
South 46008'42"
East for a distance of 108.93 feet;
South 00'13 "49"
East for a distance of 20.87 feet to a point for the BEGINNING
POINT of a curve to the right, concave Southerly.
THENCE: Along and around said curve to the right, in a Northeasterly direction, along the
North line of this tract, said curve having a radius of 581.90 feet, a central angle of 13122'59"
and a chord bearing and distance of North 71'23'10" East 135.61 feet, for an arc length of
135.92 feet to a point in the West right-of-way line of Tri -City Beach Road for the Northeast
comer of this tract; from which a point at the intersection of said line with the South right-of-way
line of the Southern Pacific Railroad 100 feet wide right-of-way bears North 08'13'19" West
742.63 feet.
PAGE 3 — 45.4783 ACRES, WEST RESIDUE.
THENCE: South 08'13)'19" East along the East line of this tract and the West right-of-way line
of said Tri -City Beach Road for a distance of 1546.01 feet to the PLACE OF BEGINNING and
containing within these boundaries 45.4783 acres of land.
SURVEYOR'S CERTIFICATE
I, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the
foregoing field notes were prepared from an office survey, made under my supervision, in
January of 2016 and that all lines, boundaries and landmarks are accurately described therein.
WITNESS my hand and seal at Baytown, Texas, this the 2nd day of February, A.D., 2016.
Juliene Ramsey
Registered Professional Land Surveyor No. 4379
15-4651.Eastresidue.2.docx
Hutchison & Associates, Inc.
1209 Decker Drive, Suite 100
Baytown, TX 77520
Engineering Firm #F-267
Surveying Firm #100293-00
Exhibit "B"
ARTICLE VII. - IN -CITY MUNICIPAL UTILITY DISTRICTS
Sec. 98-701. - Policy.
There is hereby adopted a policy and plan establishing the conditions under which a municipal utility
district may be formed within the corporate limits of the city, which shall read as follows:
The following terms, conditions and standards establish the basis under which the city council may
consent to the formation of a municipal utility district within the corporate limits of the city in writing.
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-702. - Resolution to create a municipal utility district.
(a) The city's consent to the creation of a municipal utility district proposed to be formed within the
corporate limits of the city under the Texas Water Code and the Texas Constitution Section 59,
Article XVI, shall be evidenced by the adoption of a resolution.
(b) No resolution shall be adopted consenting to the creation of a municipal utility district until the city
council finds that the proposed municipal utility district (1) will be an economically feasible and sound
development benefiting the city, (2) will not adversely affect the existing city water, sewer and storm
facilities or other city utilities or city functions, and (3) will not increase the city's taxes or utility rates
or adversely impact the city's financing or bond rating, and that (4) all of the conditions imposed by
this article have been agreed to by the majority in value of landowners within the proposed municipal
utility district.
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-703. - Conditions to creation.
The following conditions shall apply to every municipal utility district within the city:
(1) The municipal utility district may acquire property outside its boundaries with prior written
consent of the city only for purposes of providing stormwater drainage and detention, potable
water distribution, wastewater collection, and for other purposes permitted by law; provided that
no land shall be annexed or added to the municipal utility district unless the city has given its
written consent by resolution of the city council to such addition or annexation;
(2) The municipal utility district shall not provide services for, or acquire property to provide services
for, any property outside its boundaries without the prior written consent of the city;
(3) The municipal utility district shall not allow use of easements or stormwater drainage facilities
owned or controlled by the municipal utility district for any property or development outside its
boundaries without the prior written consent of the city;
(4) The municipal utility district shall pay the actual costs incurred by the city for legal, engineering
and financial advisory services in connection with the allocation agreement (hereinafter defined)
and the adoption of a resolution consenting to creation of the municipal utility district;
(5) The facilities to be constructed by the municipal utility district shall be designed and constructed
in compliance with all applicable requirements and criteria of the applicable regulatory agencies
and subject to the applicable provisions of the city's resolution granting a petition for inclusion of
certain territory in the municipal utility district (the "consent resolution");
(6) Prior to the sale or offer to sell any bonds of the municipal utility district, the terms and
conditions in this subdivision and the consent resolution must be approved and ratified in an
instrument executed by the governing body and officers of the municipal utility and such
instrument must be delivered to the city attorney;
(7) The city shall not allow any connection to be made to the municipal utility district's wastewater
system until, with respect to such connection:
a. The municipal utility district has issued an assignment of capacity specifying the number of
gallons per day of water supply and wastewater treatment allocated for such connection,
and has provided a copy thereof to the city manager;
b. The city has inspected the connection and premises and has issued a building permit for
that connection; and
c. All buildings or structures served by connections shall be located entirely within the
boundaries of a lot or parcel shown in a plan, plat or replat filed with and finally approved
by the city and duly recorded in the official records of the county where the property is
located (provided this limitation shall not apply if no plan, plat or replat is required by
applicable state statutes or city ordinances);
(8) Unless and until the city shall dissolve the municipal utility district and assume the properties,
assets, obligations and liabilities of the municipal utility district, the bonds of the municipal utility
district, as to both principal and interest, shall be and remain obligations solely of the municipal
utility district and shall never be deemed or construed to be obligations or indebtedness of the
city;
(9) All contracts with third parties for construction of water, wastewater and stormwater facilities to
serve the proposed municipal utility district will contain the following provisions:
a. A requirement that all plans and specifications for construction of improvements or
modification of improvements which are to be built to serve the municipal utility district
and/or require approval of the Texas Commission on Environmental Quality be prepared in
accordance with the then adopted city specifications and requirements for such facilities
and delivered to the city for approval prior to submission to the Texas Commission on
Environmental Quality. All plans and specifications presented to the bidders shall be
approved by the city in writing prior to advertising for bids;
b. A requirement that prior to the construction of such facilities within the municipal utility
district's territory, written notice by registered or certified mail be given to the city, stating
the date that such construction will commence;
c. An agreement that all construction or modification of improvements to serve the municipal
utility district will be subject to periodic inspections by the city or its duly authorized agent
and that no underground improvements will be backfilled prior to inspection and written
approval by the city;
d. All contracts for construction of improvements will be awarded in compliance with the terms
contained within public bidding statutes in Chapter 49 of the Texas Water Code;
If the municipal utility district is performing the services, the same terms and conditions as set
forth herein shall be applicable to the municipal utility district.
(10) As the municipal utility district's facilities are acquired and constructed, the municipal utility
district shall convey the same to the city, including all warranties relating to the facilities;
provided, however, that the municipal utility district shall not convey, and the city shall not
accept, stormwater detention systems;
(11) As acquisition and/or construction of each phase of the facilities is completed, representatives
of the city shall inspect the same and, if the city finds that the same has been completed in
accordance with the final plans and specifications, the city will accept the same, whereupon
such portion of the facilities shall be operated and maintained by the city at its sole expense;
provided, however, that the city shall not accept, or operate and maintain, stormwater detention
systems; and further provided, however, that in the event that the facilities have not been
completed in accordance with the final plans and specifications, the city will immediately advise
the municipal utility district in what manner said facilities do not comply, and the municipal utility
district shall immediately correct the same, whereupon the city shall again inspect the facilities
and accept the same if the defects have been corrected;
(12) The city shall bill and collect from customers of the facilities and shall from time to time fix such
rates and charges for such customers of the facilities as the city, in its sole discretion,
determines are necessary; provided that the rates and charges for services afforded by the
facilities will be equal and uniform to those charged other similar classifications of users in
nonmunicipal utility district areas of the city; and all revenues from the facilities shall belong
exclusively to the city without rebate of such revenues to the municipal utility district;
(13) The city may impose a charge for connection to the facilities at a rate to be determined from
time to time by the city, provided the charge is equal to the sums charged other city users for
comparable connections; and the connection charge shall belong exclusively to the city;
(14) The municipal utility district is authorized to assess, levy and collect ad valorem taxes upon all
taxable properties within the municipal utility district to provide for (a) the payment in full of the
municipal utility district's obligations, including principal, redemption premium, if any, and
interest on the bonds to be issued by the municipal utility district and to establish and maintain
any interest and sinking fund, debt service fund or reserve fund, (b) for administration, operation
and maintenance purposes, all in accordance with applicable law and (c) to pay expenses of
assessing and collecting the taxes. The city will levy and collect ad valorem taxes upon all
taxable properties in the city, including the municipal utility district;
(15) Unless the municipal utility district is in default under the terms of its allocation agreement after
reasonable opportunity to cure, the city shall not dissolve the municipal utility district until the
water, wastewater and drainage utilities required to serve the municipal utility district have been
completed and bonds issued by the municipal utility district to finance same; and the city shall
afford the municipal utility district the opportunity to discharge any obligations of the municipal
utility district pursuant to any existing agreements of the municipal utility district with third parties
for construction of facilities, by either (a) authorizing the municipal utility district to sell its bonds
before or during a transition period prior to the effective date of dissolution, as established by
the city, (b) issuing bonds and selling bonds of the city pursuant to Vernon's Texas Codes
Annotated, Local Government Code Section 43.080, as amended, in at least the amount
necessary to discharge the municipal utility district's obligations, including those under any such
agreements, or (c) providing written notice to the municipal utility district that the city has
sufficient funds available from other sources to discharge the municipal utility district's
obligations, including those under any such existing agreements with third parties. The city shall
have the right to dissolve the municipal utility district if construction of water, wastewater or
drainage utilities required to serve the municipal utility district does not begin within 36 months
of execution of the allocation agreement;
(16) All city ordinances and codes, including applicable permits, fees and inspections, shall be of full
force and effect within the boundaries of the municipal utility district in the same manner as with
respect to other areas within the city's corporate limits, except as specifically herein provided
otherwise;
(17) No bonds, other than refunding bonds, or notes of the municipal utility district shall be issued or
sold unless not less than 20 days following the filing of an application with the Texas
Commission on Environmental Quality for the approval of projects and bonds, the municipal
utility district provides the city with a copy of such application and not less than 30 days prior to
publication of notice of sale, the municipal utility district provides the city with a copy of the staff
memorandum of Texas Commission on Environmental Quality approving the projects and
bonds, a copy of its proposed bond order, preliminary official statement, bid form and notice of
sale and the following criteria are met.
Page 3
The municipal utility district shall not issue bonds unless the following conditions have been
satisfied.
a. The municipal utility district shall not issue any bonds, other than refunding bonds, unless
the purpose for which the proceeds of such bonds may be used is limited to one or more of
the following and no others:
1. Designing, purchasing and/or constructing or otherwise acquiring
(i) Waterworks facilities to provide water supply for municipal, domestic, and
commercial uses, excluding industrial uses,
(n) Wastewater facilities to collect, transport, process, dispose of and control all
domestic or communal wastes, excluding industrial waste, whether in fluid, solid
or composite state, or
(iii) Stormwater drainage and detention facilities to gather, conduct, divert and control
local stormwater or other local harmful excesses of water in the municipal utility
district,
2. Purchasing, constructing, owning, operating, repairing, improving, extending or
otherwise acquiring interests in real property, improvements, facilities, appliances,
equipment, buildings, plants or structures necessary or incidental to the operation of
waterworks facilities, wastewater facilities, or stormwater drainage facilities. Proceeds
of the bonds for costs of operations of the municipal utility district shall not exceed ten
percent of the issuance amount; and
3. All costs of issuance of the bonds (including but not limited to legal fees, financial
advisory fees, administrative and organizational fees and expenses and costs of
operations during construction, bond discount, capitalized interest, developer interest,
creation costs, printing expenses, publication expenses and contingencies relative to
facilities not yet under contract). Proceeds of the bonds for costs of operations of the
municipal utility district shall not exceed ten percent of the issuance amount.
b. The municipal utility district shall not sell or issue any bonds unless:
1. The terms of such bonds expressly provide that the municipal utility district reserves
and shall have the right to redeem the bonds not later than the 15th anniversary of the
date of issuance, without premium;
2. The bonds, except refunding bonds, are sold after the taking of public bids therefor;
3. None of such bonds and bonds sold to a federal or state agency, other than refunding
bonds, is sold for less than 95 percent of par;
4. The net effective interest rate on bonds so sold, taking into account any discount or
premium as well as the interest rate borne by such bonds, does not exceed two
percent above the highest average interest rate reported by the Daily Bond Buyer in
its weekly "20 Bond Index" during the one-month period next preceding the date
notice of the sale of such bonds is given and bids for the bonds will be received not
more than 45 days after notice of sale of the bonds is given;
5. The maximum term of any debt issuance shall be no greater than 25 years;
6. The minimum par amount of any bonds issued, except a final issue, shall be
$1,000,000.00;
7. Each issue of bonds shall be structured to achieve either level principal payments or
level debt service payments, excluding the first two years of debt service;
8. The municipal utility district shall submit to the city pro forma cash flows prepared in a
manner consistent with the financial feasibility rules of the Texas Commission on
Environmental Quality evidencing a municipal utility district tax rate (both maintenance
Page 4
and operations rate and interest and sinking rate combined) not to exceed $1.50 per
$100.00 assessed valuation; and
9 Each bond issue shall not include more than two years of capitalized interest.
The city staff shall review the documents required to be provided hereunder and the
evidence of compliance with the foregoing criteria within 15 days following receipt of
same. If the city staff gives a favorable approval of the bonds, an item will be placed
on the next available regular or special council meeting agenda for consideration by
the city council. The issuance of bonds by the municipal utility district must be
approved by the city council of the city, or its designee. Any costs incurred by the city
in connection with review of the issuance of bonds shall be paid by the municipal
utility district, in an amount not to exceed $2,500.00;
c. The municipal utility district's resolution authorizing the issuance of the municipal utility
district's bonds must contain a provision that the pledge of the revenues from the operation
of the municipal utility district's water and sewer and/or drainage system to the payment of
the municipal utility district's bonds will terminate when and if the city takes over the assets
of the municipal utility district and assumes all of the obligations of the municipal utility
district.
(18) The city acknowledges that a municipal utility district has authority to assess an unlimited tax for
payment of debt service. However, prior to implementation of any increase in tax rate above its
initial rate, the municipal utility district shall make a formal presentation to city council explaining
the need for the increase, at which time residents of the municipal utility district shall be given
an opportunity to be heard. Notice of such presentation shall be sent to each owner of taxable
property within the municipal utility district as reflected on its most recent certified tax roll. This
provision shall be in addition to any requirements of notice and hearing which may be contained
in the Texas Water Code and in the Texas Tax Code which apply to the municipal utility district;
(19) In addition to the information the municipal utility district is required to file of record as required
by the Texas Water Code, the municipal utility district shall annually deliver to each property
owner within the municipal utility district, as reflected on its most recent certified tax roll, written
notice of the existence of the municipal utility district and its right to assess taxes in addition to
those assessed by the city. Such notice shall also contain a reference to the allocation
agreement, the consent resolution and this paragraph. Such notice shall advise the property
owner that such documents are available for inspection during regular business hours in the
municipal utility district's office;
(20) The majority in value of landowners within the proposed municipal utility district shall enter into
a utility functions and services allocation agreement ("allocation agreement") with the city, which
shall contain the terms and conditions set forth in this section, as well as other terms and
conditions which may be agreed to by the city or imposed herein. The allocation agreement
shall be assigned by the proponent to the municipal utility district upon its creation;
(21) The allocation agreement shall be entered into simultaneously with the adoption of the consent
resolution;
(22) The municipal utility district shall establish an official meeting location within the corporate limits
of the city and at all times after the municipal utility district has 100 residential connections shall
hold the meetings of its board of directors at such location;
(23) In addition to any other notice requirements applicable to the municipal utility district, the
municipal utility district must post an agenda of the meetings of its board of directors at all
primary entrances to the municipal utility district and at the location designated for notices at city
hall not less than 72 hours prior to any meeting. An agenda shall also be provided to the city
manager of the city prior to any meeting of the board of directors.
Page 5
(24) The official office for recordkeeping of the municipal utility district must be accessible to the
district's residents and shall not require a long distance phone call for a district resident to
contact the official office for recordkeeping;
(25) The municipal utility district shall comply with all applicable requirements of the Texas
Commission on Environmental Quality regarding the display of signage at entrances into the
municipal utility district.
The city may specify other conditions with which the municipal utility district must comply in this code, the
resolution consenting to the creation of the municipal utility district, and/or the allocation agreement
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-704. - Petition for creation of municipal utility district.
Upon the presentation of a petition for consent for the creation of a municipal utility district within the
corporate limits of the city, the majority in value of landowners within the proposed municipal utility district
shall:
(1) Present evidence that the proposed municipal utility district contains 100 or more acres; present
evidence that the petition is filed on behalf of the majority in value of landowners within the
proposed municipal utility district; and show that the proposed municipal utility district is wholly
within the corporate limits of the city;
(2) Present a preliminary report describing the municipal utility district and proposed use of the land
within the municipal utility district showing that the proposed municipal utility district and land
use are feasible;
(3) Present an estimate of assessed valuation of the municipal utility district showing the value of
property as it exists on date of the petition; a build -out schedule showing the projected value of
the property when 50 percent of the projected vertical improvements for the municipal utility
district, exclusive of wastewater, water, sewer and drainage improvements, have been
completed; and showing the projected value of the improvements upon completion of the
development within the municipal utility district; and
(4) Agree that the majority in value of landowners within the proposed municipal utility district shall
develop the property for the purposes substantially as described in the preliminary report,
except as may otherwise be agreed by the proponent and the city, and that prior to
commencement of any improvements, will comply with all provisions of the subdivision
ordinances and zoning ordinances of the city.
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-705. - Other requirements.
(a) The city reserves the right to impose other specific requirements relative to a given municipal utility
district, including, but not limited to park requirements, construction material for houses and other
buildings, amenities, and minimum lot sizes, which shall be agreed to and set forth in the allocation
agreement.
(b) The land within the district will be developed in accordance with the general plan to be approved by
the city.
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-706. - Abolition.
Page 6
It is the policy of the city that a municipal utility district created within the city should not be abolished
until such time as it has retired all of its outstanding bonded indebtedness, so that the city's taxpayers
outside the municipal utility district shall not have to pay off all or any part of the bonded indebtedness
incurred by the municipal utility district. The city does reserve the right to abolish any municipal utility
district, regardless of whether it has any outstanding debt, if it is deemed to be in the best interest of the
city.
(Ord. No. 10003, § 1, 2-10-05)
Sec. 98-707. - City services.
The city shall provide fire, police and other general city services to the areas within the municipal
utility district similar to those provided in similarly situated nonmunicipal utility district areas of the city.
Different levels of service may be provided if different characteristics of topography, land uses and
population density constitute a sufficient basis for providing different levels of service as determined by
the city.
(Ord. No. 10003, § 1, 2-10-05)
Page 7
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Development Plan
1: Future Commercial
2: Future Development
3: Commercial
4: 09ac Light Industrial
30ac Multi -Family
50.67ac Commercial
5: Single Family
6: Single Family
HARRIS COUNTY MUNICIPAL
DISTRICT NO. 528
1'-1500'
AJR
14-4427
REBHCMUD4427
JRG
Exhibit "E"
GRAHAM MORTGAGE
+/-28ac COMMERCIAL RESERVES
SOUTH ALEZ4NnFR