CC Resolution No. 2554RESOLUTION NO. 2554
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, SUPPORTING THE PASSAGE OF A BILL RELATING TO THE
CREATION OF THE CHAMBERS COUNTY MUNICIPAL UTILITY
DISTRICT NO. 2; GRANTING A LIMITED POWER OF EMINENT DOMAIN;
PROVIDING AUTHORITY TO ISSUE BONDS; PROVIDING AUTHORITY
TO IMPOSE ASSESSMENTS, FEES AND TAXES; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown hereby endorses and
encourages the passage of the bill relating to the creation of the Chambers County Municipal
Utility District No. 2; granting a limited power of eminent domain; providing authority to issue
bonds; providing authority to impose assessments, fees and taxes, which bill is attached hereto as
Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: That nothing contained herein shall be construed as the City of Baytown's
written consent required pursuant to Chapter 42 of the Texas Local Government Code and
Chapter 54 of the Texas Water Code. If the proposed legislation passes, Chambers County
Municipal Utility District No. 2 shall be required to request and obtain the City's written consent
for its creation.
Section 3: This resolution shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the
City of Baytown this the 13th day of December, 2018.
BRANDON CAPETILLO, Mayor
ATT ST:
LETICIA BRYSCH, Clerk
APPROVED AS TO FORM:
4NACIO RAMIREZ, , City Attorney
11COM0 MLegahKaren\FileslCity CounciAResolutions\2018\December 13` SupportingCreationofCCMUD2.doc
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A •�
Exhibit "A"
By: .B. No.
A BILL TO BE ENTITLED
1 AN ACT
2 relating to the creation of the Chambers County Municipal
3 Utility District No. 2; granting a limited power of eminent
4 domain; providing authority to issue bonds; providing authority
5 to impose assessments, fees and taxes.
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7 SECTION 1. Subtitle F, Title 6, Special District Local
8 Laws Code, is amended by adding Chapter to read as
9 follows:
10 CHAPTER CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT
11 NO. 2
12 SUBCHAPTER A. GENERAL PROVISIONS
13 Sec. .001. DEFINITIONS. In this chapter:
14 (1) "Board" means the district's board of directors.
15 (2) "Commission" means the Texas Commission on
16 Environmental Quality.
17 (3) "Director" means a board member.
18 (4) "District" means the Chambers County Municipal
19 Utility District No. 2.
20 Sec. .002. NATURE OF DISTRICT. The district is a
21
22
municipal utility district created under Section 59, Article
XVI, Texas Constitution.
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1 Sec. .003. CONFIRMATION AND DIRECTORS' ELECTION
2 REQUIRED. The temporary directors shall hold an election to
3 confirm the creation of the district and to elect five permanent
4 directors as provided by Section 49.102, Water Code.
5 Sec. .004. CONSENT OF MUNICIPALITY REQUIRED. The
6 temporary directors may not hold an election under Section
7 .003 until each municipality in whose corporate limits or
8 extraterritorial jurisdiction the district is located has
9 consented by ordinance or resolution to the creation of the
10 district and to the inclusion of land in the district.
11 Sec. .005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
12 (a) The district is created to serve a public purpose and
13 benefit.
14 (b) The district is created to accomplish the
15 purposes of•
16 (1) a municipal utility district as provided by
17 general law and Section 59, Article XVI, Texas Constitution; and
18 (2) Section 52, Article III, Texas Constitution,
19 that relate to the construction, acquisition, improvement,
20 operation, or maintenance of macadamized, graveled, or paved
21 roads, or improvements, including storm drainage, in aid of
22 those roads.
23 Sec. .006. INITIAL DISTRICT TERRITORY. (a) The
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1 district is initially composed of the territory described by
2 Section 2 of the Act enacting this chapter.
3 (b) The boundaries and field notes contained in
4 Section 2 of the Act enacting this chapter form a closure. A
5 mistake made in the field notes or in copying the field notes in
6 the legislative process does not affect the district's:
7 (1) organization, existence, or validity;
8 (2) right to issue any type of bond for the
9 purposes for which the district is created or to pay the
10 principal of and interest on a bond;
11 (3) right to impose a tax; or
12 (4) legality or operation.
13 SUBCHAPTER B. BOARD OF DIRECTORS
14 Sec. .051. GOVERNING BODY; TERMS. (a) The district is
15 governed by a board of five elected directors.
16 (b) Except as provided by Section .052, directors
17 serve staggered four-year terms.
18 Sec. .052. TEMPORARY DIRECTORS. (a) On or after the
19 effective date of the Act enacting this chapter, the owner or
20 owners of a majority of the assessed value of the real property
21 in the district may submit a petition to the Commission
22 requesting that the commission appoint as temporary directors
23 the five persons named in the petition. The commission shall
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1 appoint as temporary directors the five persons named in the
2 petition.
3 (b) Temporary directors serve until the earlier of:
4 (1) the date permanent directors are elected
5 under Section .003; or
6 (2) the fourth anniversary of the effective date
7 of the Act enacting this chapter.
8 (c) If permanent directors have not been elected
9 under Section .003 and the terms of the temporary directors
10 have expired, successor temporary directors shall be appointed
11 or reappointed as provided by Subsection (d) to serve terms that
12 expire on the earlier of:
13 (1) the date permanent directors are elected
14 under Section .003; or
15 (2) the fourth anniversary of the date of the
16 appointment or reappointment.
17 (d) If Subsection (c) applies, the owner or owners of
18 a majority of the assessed value of the real property in the
19 district may submit a petition to the commission requesting that
20 the commission appoint as successor temporary directors the five
21 persons named in the petition. The commission shall appoint as
22 successor temporary directors the five persons named in the
23 petition.
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1 SUBCHAPTER C. POWERS AND DUTIES
2 Sec. .101. GENERAL POWERS AND DUTIES. The district has
3 the powers and duties necessary to accomplish the purposes for
4 which the district is created.
5 Sec. .102. MUNICIPAL UTILITY DISTRICT POWERS AND
6 DUTIES. The district has the powers and duties provided by the
7 general law of this state, including Chapters 49 and 54, Water
8 Code, applicable to municipal utility districts created under
9 Section 59, Article XVI, Texas Constitution.
10 Sec. .103. AUTHORITY FOR ROAD PROJECTS. Under Section
11 52, Article III, Texas Constitution, the district may design,
12 acquire, construct, finance, issue bonds for, improve, operate,
13 maintain, and convey to this state, a county, or a municipality
14 for operation and maintenance macadamized, graveled, or paved
15 roads, or improvements, including storm drainage, in aid of
16 those roads.
17 Sec. .104. ROAD STANDARDS AND REQUIREMENTS. (a) A
18 road project must meet all applicable construction standards,
19 zoning and subdivision requirements, and regulations of each
20 municipality in whose corporate limits or extraterritorial
21 jurisdiction the road project is located.
22 (b) If a road project is not located in the corporate
23 limits or extraterritorial jurisdiction of a municipality, the
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1 road project must meet all applicable construction standards,
2 subdivision requirements, and regulations of each county in
3 which the road project is located.
4 (c) If the state will maintain and operate the road,
5 the Texas Transportation Commission must approve the plans and
6 specifications of the road project.
7 Sec. .105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
8 OR RESOLUTION. The district shall comply with all applicable
9 requirements of any ordinance or resolution that is adopted
10 under Section 54.016 or 54.0165, Water Code, and that consents
11 to the creation of the district or to the inclusion of land in
12 the district.
13 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
14 Sec. .151. ELECTIONS REGARDING TAXES OR BONDS. (a)
15 The district may issue, without an election, bonds and other
16 obligations secured by:
17 (1) revenue other than ad valorem taxes; or
18 (2) contract payments described by Section
19 .153.
20 (b) The district must hold an election in the manner
21 provided by Chapters 49 and 54, Water Code, to obtain voter
22 approval before the district may impose an ad valorem tax or
23 issue bonds pavable from ad valorem taxes.
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1 (c) The district may not issue bonds payable from ad
2 valorem taxes to finance a road project unless the issuance is
3 approved by a vote of a two-thirds majority of the district
4 voters voting at an election held for that purpose.
5 Sec. .152. OPERATION AND MAINTENANCE TAX. (a) If
6 authorized at an election held under Section .151, the
7 district may impose an operation and maintenance tax on taxable
8 property in the district in accordance with Section 49.107,
9 Water Code.
10 (b) The board shall determine the tax rate. The rate
11 may not exceed the rate approved at the election.
12 Sec. .153. CONTRACT TAXES. (a) In accordance with
13 Section 49.108, Water Code, the district may impose a tax other
14 than an operation and maintenance tax and use the revenue
15 derived from the tax to make payments under a contract after the
16 provisions of the contract have been approved by a majority of
17 the district voters votinq at an election held for that purpose.
18
19
(b) A contract approved
contain a provision stating
that the
by the district voters may
contract may be modified or
20
amended by the board without
further
voter approval.
21 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
22 Sec. .201. AUTHORITY TO ISSUE BONDS AND
23 OBLIGATIONS. The district may issue bonds or other obligations
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1 payable wholly or partly from ad valorem taxes, impact fees,
2 revenue, contract payments, grants, or other district money, or
3 any combination of those sources, to pay for any authorized
4 district purpose.
5 Sec. .202. TAXES FOR BONDS. At the time the district
6 issues bonds payable wholly or partly from ad valorem taxes, the
7 board shall provide for the annual imposition of a continuing
8 direct ad valorem tax, without limit as to rate or amount, while
9 all or part of the bonds are outstanding as required and in the
10 manner provided by Sections 54.601 and 54.602, Water Code.
11 Sec. .203. BONDS FOR ROAD PROJECTS. At the time of
12 issuance, the total principal amount of bonds or other
13 obligations issued or incurred to finance road projects and
14 payable from ad valorem taxes may not exceed one-fourth of the
15 assessed value of the real property in the district.
16 Sec. .204. FEASIBILITY EVALUTATION. For purposes of any
17 applicable evaluation by the Texas Commission on Environmental
18 Quality of the economic feasibility of the district or its
19 projects and bonds, debt service tax rate, maintenance tax rate,
20 or overlapping tax rate, the district shall be treated as a
21 municipal utility district situated wholly within Harris County.
22 SECTION 2. The Chambers County Municipal Utility District
23 No. 2 initially includes all the territory contained in the
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1 following area: [[[Insert the metes and bounds description of
2 the district's territory.]]]
3 SECTION 3. (a) The legal notice of the intention to
4 introduce this Act, setting forth the general substance of this
5 Act, has been published as provided by law, and the notice and a
6 copy of this Act have been furnished to all persons, agencies,
7 officials, or entities to which they are required to be
8 furnished under Section 59, Article XVI, Texas Constitution, and
9 Chapter 313, Government Code.
10 (b) The governor, one of the required recipients, has
11 submitted the notice and Act to the Texas Commission on
12 Environmental Quality.
13 (c) The Texas Commission on Environmental Quality has
14 filed its recommendations relating to this Act with the
15 governor, the lieutenant governor, and the speaker of the house
16 of representatives within the required time.
17 (d) All requirements of the constitution and laws of
18 this state and the rules and procedures of the legislature with
19 respect to the notice, introduction, and passage of this Act are
20 fulfilled and accomplished.
21 SECTION 4. (a) If this Act does not receive a two-thirds
22 vote of all the members elected to each house, Subchapter C,
23 Chapter [ ], Special District Local Laws Code, as added by
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1 Section 1 of this Act, is amended by adding Section .106 to
2 read as follows:
5
6
7
8
9
10
11
12
Sec. .106. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) This section is not intended to be an expression of a
legislative interpretation of the requirements of Subsection
(c), Section 17, Article I, Texas Constitution.
SECTION 5. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2019.
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