CC Resolution No. 429 RESOLUTION NO. 429
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS ,
SUPPORTING THE GENERAL OIL AND GAS LEASE SALE OF 129 TRACTS OF
SUBMERGED LAND ON THE OUTER CONTINENTAL SHELF IN THE GULF OF
MEXICO.
WHEREAS, State and local agencies have been requested to submit their views
and comments on the possibility of oil and gas leasing of submerged lands in the
Gulf of Mexico at a hearing scheduled by the Department of the Interior for Feb-
ruary, 1973 in Houston, Texas; and
WHEREAS, the City of Baytown, Harris County, Texas , is located in an area
where intensive oil and gas production and refining have been conducted for many
years and its citizens are well aware of and are familiar with similar operations
which have been and are being conducted in the adjacent offshore area of the Gulf
of Mexico; and
WHEREAS, such operations when conducted in a responsible manner do not have
a detrimental effect on the total environment, aesthetics, recreation and other
uses of the land and waters concerned; and
WHEREAS, oil and gas production and refining have been of great economic
benefit to this community and the surrounding area, and the resumption of oil and
gas leasing of submerged lands in the Gulf of Mexico is not only essential for the
City of Baytown, but for the security, happiness and comfort of the entire Nation;
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN , TEXAS:
Section 1 : That the Mayor and City Council of the City of Baytown, Texas,
express to the Department of the Interior through the medium of this Resolution
its favorable view toward the resumption of offshore leasing and particularly
with respect to the tracts under consideration at the February, 1973, hearing.
Section 2: This Resolution shall take effect immediately from and after
its passage by the City Council of the City of Baytown.
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INTRODUCED, READ and PASSED by the affirmative vote of the City Council
this 8th day of February, 1973.
C. GLEN WALKER, Mayor
ATTEST:
II
Z ' a��
EDNA OLIVER, City Clerk
APPROVED:
'7014 e
944400/
EL RICHA DSON, City Attorney
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EXHIBIT
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H. B. NO. By
A BILL
TO BE ENTITLED
An Act creating and establishing a conservation and reclamation
district under and essential to the purposes of Article
XVI, Section 59 , Constitution of Texas , to be known as
"Baytown Area Water Authority"; declaring the Authority
a governmental agency, body politic and corporate; defining
the boundaries and finding that the boundaries of the Au-
thority forma closure; finding that all property to be
served by the Authority will be benefited thereby;. con-
ferring rights , powers, privileges , authorities and func-
tions upon the Authority; providing for the power 'to con-
tract and making provision for such contracts; providing
for the acquisition of water rights; providing that no
confirmation election is necessary; providing for a hear-
ing on exclusions; providing for addition .or annexation
of land; providing that the Authority shall not have the
right, power or authority to impose, levy, assess or col-
lect taxes; providing that enactment shall not prevent the
organization of conservation and reclamation districts
within the boundaries of the Authority or the changing of
the boundaries of such districts; providing for the appoint-
ment, election and powers of a Board of Directors, the em-
ployment of a General Manager, and other related matters;
providing for the power to borrow money, issue bonds, in-
vest surplus funds and related matters ; providing for the
power to construct, lay and maintain canals and certain
other facilities for transportation and distribution of
water, together with other incidental facilities; providing
for the power of eminent domain and for the Authority's
bearing the expense of relocation of certain properties
and facilities; providing that the Authority not be re-
quired to give bond for costs in lawsuits; providing for
the appointment of depositories and a system of accounts
and an audit thereof; providing for offices of the Autho-
rity; providing that the bonds of the Authority are eligible
investments and securities; finding that .the requirements
of Article XVI, Section 59 (d) of the Constitution have been
accomplished;. finding that the Authority will be carrying
out an essential public function; enacting other provisions
related to the aforementioned matters; providing a severa-
bility clause; and declaring an emergency.
Be it enacted by the Legislature- of the State of Texas :
Sec. 1 . Under and- pursuant to the provisions of -
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Article XVI, Section 59 , Constitution. -of Texas , a conservation
and reclamation district is hereby created and established
in Harris County, Texas, to be known as "Baytown Area Water
Authority" (hereinafter called the "Authority") which shall
be a governmental agency and a body politic and corporate. '
The creation and establishment of the Authority is hereby de-
clared to be essential to the accomplishment of the purposes
of Article XVI, Section 59 , Constitution of Texas.
Sec. 2. It is determined and found that the .bound-
aries and field notes of the Authority form aclosure; and if
any mistake is made in copying the field notes in the legis-
lative process ,- or otherwise a mistake is made in the field
notes, 'it shall in no way affect the organization, existence
and validity of the Authority, or the right of the Authority
to issue revenue bonds or revenue refunding bonds for the pur-
poses for which the Authority is created, or to pay the princi-
pal and interest thereon, or in any other manner affect the
legality or operation of the Authority or its governing body.
2.
Sec. 3. It is determined and found that all of the
land and other property included within the area and boundaries
of the Authority and lands and properties which may feasibly
be served by the Authority will be benefited by the works and
project which are to be accomplished by the Authority pursuant
to the powers conferred by the provisions of Article XVI , Sec-
tion 59 , Constitution of Texas ; and that said Authority was
and is created to serve a public use and benefit.
Sec. 4. The Authority shall comprise all of the
territory contained within the following described area:
BEGINNING at a point on the South right-of-way line of Interstate Highway No. 10,
said point being at the intersection of the Easterly shoreline of the San Jacinto
River;
THENCE, in a Southerly direction following the Easterly shoreline of the
San Jacinto River to a point of intersection with a line which is parallel
to and 2500 feet from the centerline of the Houston -Ship Channel ;
THENCE, in a Southeasterly direction along the line which is parallel to
and 2500 feet from the centerline of the Houston ship Channel to a point
of intersection with the Vest shoreline of Burnett Bay;
THENCE, in a Northeasterly direction along the shoreline of Burnett Bay,
-and continuing along the shoreline of Burnett Bay to its juncture with
the shoreline of Crystal Bay, and continuing along the shoreline of Cry-
stal Bay to its juncture with the shoreline of Scott Bay, and continuing
'^ along the.shoreline of Scott Bay to a point of intersection with a line
which is parallel to and 2500 feet from the centerline of the Houston Ship
Channel ;
3.
THENCE, in a Southeasterly direction along the line which is parallel to
and 2500 feat from the centerline of the Houston Ship Channel - to a point
of intersection with the shoreline of Black Duck Bay;
THENCE, in an Easterly direction along the shoreline of Black Duck Bay,,
and continuing alonq the shoreline of Black Duck Bay to the mouth of Goose
Creek, and continuing across the mouth of Goose Creek to the shoreline of
Tabbs Bay, and then continuing along the shoreline of Tabbs Bay to a point
of intersection with the West line of Cedar Bayou;
THENCE, in a iNortherly direction along the :lest line of Cedar Bayou to a
point of intersection with the North right-of-way line of State Farm-Market
Highway No. 2354;
WHENCE, in a Southeasterly direction, crossing Cedar Bayou along the North-
easterly riche-of-way line of State Farm-Market Highway No. 2354, and con-
tinuinq along the Northerly right-of-way line of State Farm-Market High-uay
. No. 2354 nearly seven miles to a point approximately .315 feet Southwest of
a 5/8 inch iron rod having a Texas plane Coordinate value of x=3,315,954.08,
y=710,156.88; i
THENCE, North 74 degrees 10 minutes 00 seconds West a distance of•532.84 feet
to a point marked by a 5/8 inch iron rod;
THENCE, North 15 degrees, 50 minutes 00 seconds East a distance of 299.96
feet to a point marked by a 5/8 inch iron rod; I
THENCE, South 74 degrees 10 minutes 00 seconds East a distance of 629.00
feet to a point marked by a 5/8 inch iron rod, said point being on the
Westerly right-of-way line of State Farm-Market Highway No. 2354 and said
Iron rod having a Texas plane coordinate value of x=3,315,954.08, y=710,156.•88;
- THENCE, continuing in a Northerly direction along the Westerly right-of-way line
of State Farm-Market Highway No. 2354 and its extension across State Farm-
Market Highway No. 565 to a point of intersection with the South right-of-way
• line of Interstate Highway No. 10;
THENCE, in a Westerly direction alongthe South right-of-way line
g y of Inter-
state Highway No. 10 to a point of intersection with the Easterly shoreline
of the San Jacinto River, said point of intersection being the POINT OF BE-
GINNING.
Sec. 5. A. The Authority is hereby vested with, and
shall have and exercise, all of the rights , powers , privileges ,
authorities and functions conferred by the general laws of this
State applicable to municipal utility districts , including with-
out limitation those conferred by Chapter 54, Title 4, Water
Code, with all amendments and additions thereto, but if any pro-
vision of such general laws shall be in conflict or inconsistent
with the provisions of this Act, the provisions of this Act shall
prevail. All such general laws applicable to municipal utility
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districts not in conflict or inconsistent with the provisions of
this Act are hereby adopted and incorporated by reference with
the same effect as if incorporated in full by this Act. The
powers and functions conferred on the Authority are granted sub-
ject to the policy of the State to encourage the development and
use of integrated area-wide waste collection, treatment and dis-
posal systems to serve the waste disposal needs of the citizens
of the State, it being an objective of the policy to avoid the
economic burden to the people and the impact on the quality of
the waters in the State which result from the construction and
operation of numerous small waste collection, treatment and
disposal facilities to serve an area when an integrated area-
wide waste collection, treatment and disposal system for the
area can reasonably be provided.
B. Not by way of limitation, the Authority shall have
and is hereby expressly granted the following rights , powers ,
privileges and functions:
(1) The right, power and authority to acquire surface
and/or underground water supplies from sources both within
and without the boundaries of the Authority and to conserve,
store, transport, treat, purify, distribute, sell and de-
liver water, both surface and underground, to persons ,
corporations (public or private) , municipal corporations ,
political subdivisions of the State of Texas, and others ,
both within and without the boundaries of the Authority;
(2) The right, power and authority to collect and
transport the domestic, industrial or communal wastes of
the entities described in the preceding subsection, to in-
elude, but not by way of limitation, the purposes of the
Regional Waste Disposal Act (Chapter 25, Title 2, Water
Code) ;
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(3) The right, power and authority to make, purchase ,
construct, lease or otherwise acquire property, works ,
facilities and improvements (whether previously existing
or to be made, constructed or acquired) , within or without
the boundaries of the Authority, necessary to carry out the
rights , powers and authority granted by this Act and the
general laws; '
(4) The right, power and authority to enter into con-
tracts of not exceeding forty (40) years duration with per-
sons, corporations (public or private) , municipal corporations,
including the City of Baytown, political subdivisions of the
State of Texas, and others , on such terms and conditions as
the Board of Directors of the Authority may deem desirable,
fair and advantageous for the performance of its rights ,
powers and authorities under this Act; provided, that be-
fore entering such. contracts, except those between the
Authority and the City of Baytown, the Board of the Autho-
rity shall secure the approval of the City Council of the
City of Baytown; provided, that such contracts may provide
that they shall continue in effect until bonds issued by
the Authority to finance the cost of facilities authorized
by this Act, and refunding bonds issued in lieu thereof,
are paid; and further provided that Article 1109j , Vernon 's
Texas Civil Statutes, as amended, shall specifically apply
to any contract between the Authority and any city or town,
including without limitation, the City of Baytown; and
(5) The right, power and authority to enter into, con-
tracts with others for transporting their water and to act
jointly with others in the performance of all functions and
purposes of the Authority; provided, that before entering
such contracts , except those between the Authority and
the City of Baytown, the Board of the Authority shall
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secure the approval of the City Council of the City of
Baytown.
C. No election shall be required of the Authority
for approval of contracts with municipal corporation or other
political subdivisions for services enumerated in this Act.
Prior to entering contracts , however, elections must be held
within such municipal corporations or political subdivisions
contracting with the Authority to authorize entering into the
contract; provided that no election shall be required each time
the contract is amended.
D. Nothing herein contained shall preclude the Autho-
rity from acquiring water rights under any laws or permits here-
tofore or hereafter issued, provided acquisition of the same is
approved by order or subsequent permit from the Texas Water
Rights Commission. '
Sec. 6 . It shall not be necessary for the Board of
Directors to call or hold an election for the confirmation of
the Authority.
Sec. 7. It shall not be necessary for the Board of
Directors to call or hold a hearing on the exclusions of land or
other property from the Authority; provided, however, that the
Board shall hold such hearing upon the written petition of any
landowner or other property owner within the Authority filed with
the secretary of the Board prior to the passage of the first order
or resolution authorizing bonds to be issued by the Authority.
The Board may act on said petition in the same manner that it
may act on a petition for the addition of land under Sections
54.711-.715, Title 41 Water Code, and no notice of hearing shall
be required other than notice of the meeting whereat such action
is taken pursuant to Section 54 . 109 , Title 4 , Water Code. The
Board on its own motion may call and hold an exclusions hearing
or hearings ' in the manner provided by the general law.
7.
Sec. 8. Land may be added or annexed to the Authority
in the manner now provided by Chapter 54 , Title 4 , Water Code,
and without. the consent of any city as provided in Article 970a,
Vernon's Texas Civil Statutes, as amended, either before or after
revenue bonds of the Authority have been issue, and no such
boundary change shall have any effect upon the validity of any
bonds of the Authority.
Sec. 9 . A. The Authority shall have no right, power or
authority to impose, levy, assess or collect taxes on any property,
real, personal or mixed, nor shall the Authority have the right,
power or authority to issue bonds or create indebtedness which
would be payable directly from ad valorem taxes levied by the
Authority.
B. The enactment of this law shall not have the effect
of preventing the organization of conservation and reclamation
districts or of preventing boundary changes of such districts
within the boundaries of the Authority as authorized in Article
XVI,. Section 59 and Article III, Section 52 of the Constitution of
Texas. To encourage the State policy referred to in Sec. 5 (A)
hereof and to prevent wasteful duplication, all conservation and
reclamation districts created in the future within the boundaries
of the Authority shall, however, contract with the Authority
for the provision of facilities and services that the Authority
is empowered to provide under this Act whenever the Authority
has or in its determination can provide such facilities and
services.
Sec. 10 . A. All powers of the Authority shall be ex-
ercised by a Board of five Directors, none of whom shall be a
member of the City Council of the City of Baytown during his
term as director. By September 1 , 1973, the City Council of
the City of Baytown shall assign position numbers to each di-
rector's office and shall appoint directors to such positions
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for two-year terms as follows : those directors occupying Posi-
tions Number 1 and Number 2 shall serve until September 1 , 1974 ,
and thereafter until a successor has been appointed and quali-
fied; those directors occupying Positions Number 3 , Number - 4
and Number 5 shall serve until September 1 , 1975, and there-
after until a successor has been appointed and qualified. Upon
the expiration of such terms the City Council of the City of
Baytown shall fill such positions by appointment of a director
to each position for a term of two years, so that two directors
shall be so appointed in one year and three directors in the next
year in continuing sequence. Vacancies in the office of director,
because of the failure or refusal of one or more directors to
qualify or serve, because of death or incapacitation, or for any
other reason, shall be filled by appointment of the City Council
of the City of Baytown for the unexpired term. Each director
shall serve without emolument or compensation paid by the Autho-
rity.
B. Each director shall qualify by subscribing to the con-
stitutional oath of office and giving bond in the amount of $5,000
for the faithful performance of his duties. The cost of such bond
shall be paid by the Authority. Such bond of the first directors
shall be approved by the Mayor of the City of Baytown and filed in
the office of the City Manager of the City of Baytown, Texas . The
bonds of directors appointed after the first directors shall be
approved by the Authority's Board of Directors and shall be
recorded in a record kept for that purpose in the office of the
Authority.
C. At the first meeting in September of each year,
or after the annual vacancies in the Board of Directors are
filled as provided herein and such directors are qualified,
the Board shall elect a president, a vice president, a secretary
and any other officers as in the judgment of the Board are -
considered necessary. The vice president shall perform all
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duties and exercise all power conferred by this Act or the
provisions of the general law upon the president when the
president is absent or fails or declines to act. Any order
adopted or other action taken at a meeting of the Board at .
which the president is absent may be signed by the vice presi-
dent, or the Board may authorize the president to sign such
order or other action.
D. At the direction of the Board of Directors ,
the General Manager of the Authority, as hereinafter provided,
may execute all contracts, construction or otherwise, entered
into by the Board on behalf of the Authority.
E. A majority of the duly qualified directors shall con-
stitute a quorum of any meeting of the Board of Directors, and
a concurrence of a majority of those directors present and vot-
ing shall be sufficient in all matters pertaining to the busi-
ness of the Authority, including the letting of construction
work•, purchase of existing facilities , and matters relating
to the construction work.
Sec. 11 . A. The City Manager of the City of Baytown
shall be the General Manager of the Authority for so long as the
City of Baytown has such an officer. If the position of City Manager
is ever abolished, the chief executive officer of the City of Baytown
or his designee shall serve as General Manager. The General Manager
shall serve without emolument or compensation paid by the Board.
B. The General Manager is the chief executive officer
of the Authority. Under policies established by the Board, he is
responsible to the Board of Directors for the following duties :
(1 ) administering the directives of the Board;
(2) keeping the Authority's records, including
minutes of the Board's meetings;
(3) coordinating with State, federal and local
agencies;
(4) developing plans and programs for the Board 's
approval;
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(5) formulating a budget for the Authority's
fiscal year, as hereinafter provided, subject to the
approval of both the Board and the City Council of the
City of Baytown;
(6) hiring, supervising, training and discharging
the Authority's employees;
(7) contracting for or retaining technical, scien-
tific, legal, fiscal and other professional services;
and
(8) performing any other duties assigned to him
by the Board.
C. The General Manager and each employee of the
Authority charged with the collection, custody or payment of
any money of the Authority shall execute a fidelity bond, ap-
proved by the Board of Directors as to form, amount and surety.
The Authority shall pay the premiums on the General Manager's and
the employees ' bonds under this section.
D. Pursuant to the provisions of The Interlocal Cooperation
Act, Article 4413 (32c) , Vernon' s Texas Civil Statutes , as amended,
the Authority shall offer to enter into an interlocal contract
or agreement with. the City of Baytown for the performance of
administrative functions, as defined therein.
Sec. 12 . A. The Authority is authorized to:
(1 ) reimburse the City of Baytown for all reason-
able expenses incurred in connection with the creation and
establishment of the Authority, including publication costs ,
legal fees and charges for the services of other consultants
and other incidental costs;
(2) with the prior approval of the City Council
of the City of Baytown, borrow money from time to time for
the purpose of carrying out any of the powers granted to the
(0111, Authority by.:
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(a) issuing and selling negotiable or non-
negotiable notes and providing the terms and conditions
of these notes and the rights of the holders of these
notes payable from and secured by the sources described
in this Act;
(b) issuing and selling revenue bonds with-
out the necessity of an election and providing the
terms and conditions of these bonds and the rights
of the holders of these bonds payable from and secured
by the sources described in this Act; and
(c) delivering such notes and bonds to the
United States , or any agency or instrumentality there-
of, or to the State of Texas, or any agency or instru-
mentality thereof, when it is determined by the Board
of Directors to be in the best interest to the Authority.
(3) invest any money held in any sinking fund, re-
serve fund, or other fund or any money not required for immediate
use or disbursement in the securities as provided in this Act;
(4) apply for, accept and administer grants ; loans
and other assistance from the United States and any agency or
instrumentality of this State or any other state to carry out
the purpose of this Act, and to enter into any agreement in
relation to these grants, loans or other assistance as may be
provided by the Authority which is not in conflict with the
constitution of this State; and
(5) fix, charge, alter and collect reasonable
rentals , rates, fees and other charges for the use of any
facilities or for any services rendered by the Authority
and provide for the imposition of reasonable penalties for
any of these rentals , rates , fees and charges that are delin-
quent, and further to comply with its mandatory duty to fix,
charge, alter and collect the rentals, rates, fees and charges
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which are sufficient to produce revenues adequate to fulfill
any agreement with the holders of bonds or notes issued under
the provisions of this Act.
B. All bonds and notes of the Authority shall be
authorized by resolution or resolutions of the Board, con-
curred in by at least a majority of such Board members and
further approved by the City Council of the City of Baytown
prior to issuance thereof. Such bonds and notes shall have the
form, characteristics and bear the designation; bear the date
or dates; mature at such time or times, serially, term or other-
wise, in not more than forty (40) years from their dates; bear
interest at the rate or rates, payable annually, semi-annually,
quarterly or otherwise; be in the denominations; be in the form,
either coupon or registered; carry the registration privileges
as to principal only or as to both principal and interest and as
to successive exchange of coupon for registered bonds or notes
or vice versa, and successive exchange of bonds or notes of one
denomination for bonds or notes of other denominations ; be executed
in the manner; be payable at the place or places within or without
the State; and be sold for the price or prices, all as provided
in the resolution or resolutions authorizing such bonds and notes.
' Bonds or notes may be issued in one or more installments and
from time to time as required. The proceeds of the sale of
the bonds or notes shall be deposited in the depository bank
or banks. and shall be paid out pursuant to the terms and con-
ditions as may be agreed upon by the Authority and the purchasers .
C. (1 ) Bonds or notes and any coupons appurte-
nant thereto issued under the provisions of this Act shall
be signed by the President or Vice-President of the Board of
Directors , be attested by the Board's Secretary, and bear the
seal of the Authority.
(2) The resolution or resolutions authorizing the
issuance of any installment or any series of bonds or notes
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may prescribe the extent to which the Authority, in executing
the bonds or notes and appurtenant coupons , may use facsimile
signatures and facsimile seals instead of manual signatures
and manually impressed seals.
(3) If any officer whose manual or facsimile signa-
ture appears on a bond or note or any' coupon ceases to be an
officer before the bond or note is delivered, the signature
is valid and sufficient for all purposes as if he had remained
in office until the delivery had been made.
(4) Neither the members or officers of the Autho-
rity nor anyone executing the bonds, notes or coupons for and
on behalf of the Authority shall be liable personally on the
bonds , notes or coupons of the Authority by reason of participa-
tion in any way in the issuance of them.
D. (1 ) The bonds or notes of the Authority may be
secured by and payable from pledges of all or any part of the
revenues , receipts or assets of the Authority or the revenues
of any one or more leases or other contracts theretofore or
thereafter made , all of which shall be specified by the
resolution of the Authority or in the trust indenture or
other instrument securing the bonds or notes . The pledge
may reserve the right, under conditions specified in it, to
issue additional bonds or notes which will be on a parity with
or subordinate to the bonds or notes then being issued.
(2) A pledge or security instrument made by the
Authority is valid and binding from the time when it is made .
The revenues , receipts or assets so pledged and entrusted and
thereafter received by the Authority shall immediately be sub-
ject to the lien of the pledge or security instrument without
any physical delivery or further act. The lien of the pledge
or security instrument is valid and binding against all parties
having claims of any kind in tort, contract or otherwise against
the Authority, irrespective of whether the parties have notice
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Of it. Neither the resolution nor any security instrument or
other instrument by which a pledge or security interest is cre-
ated need be recorded or filed, and compliance with any pro-
vision of any other law is not required in order to perfect'
the pledge or other security interest.
E. A resolution authorizing bonds or notes or a
trust indenture securing bonds or notes may contain provisions ,
which shall be a part of the agreement with the holders , as to:
(1) pledging all or any designated part of the rev-
enues and receipts of the Authority, received or to be
received from the planning, financing, ownership or
operation of, leasing, or otherwise in connection with,
any specified facilities or assets to secure the pay-
ment of the bonds or notes;
(2) pledging all or any part, of assets of the Autho-
rity, including any obligation acquired by the Authority,
to secure the payment of the bonds or notes;
(3) the use and disposition of rentals , rates , fees
and other charges made or received by the Authority; i
(4) pledging to fix, charge, alter and collect rents ,
rates , fees and other charges with respect to any designated
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facilities or assets which will be sufficient to produce
revenues adequate to pay all expenses necessary to the
operation and maintenance of the designated facilities or
assets of the Authority, to pay the interest on and prin-
cipal of all bonds or notes issued and payable out of the
revenues and receipts when and as the same become due and
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payable, to pay all sinking fund and/or reserve or other t
fund payments agreed to be made in respect of any of these
bonds or notes payable out of the revenues and receipts
when and as the same shall become due and payable, and
to fulfill the terms of any agreement made with the
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holders of the bonds or notes and/or with any person in
their behalf;
(5) the setting aside of reserves or sinking funds
and the regulation and disposition of them;
(6) limitations on the purpose to which the proceeds
from the sale of the bonds or notes may be applied and
pledging the proceeds to secure the payment of the bonds
or notes;
(7) limitations on the issuance of additional bonds
and on the refunding of outstanding or other bonds or
notes;
(8) the acquisition, construction, improvement,
operation, extension, enlargement, maintenance and repair
of any facilities or assets and the duties of the Authority
with reference to them;
C9) the procedure, if any, by which the terms of
any agreement with bondholders or noteholders may be amended
or abrogated, the amount of bonds or notes the holders
of which are required to give consent to, and the manner
in which the consent may be given;
C10) limitations on the amount of money to be ex-
pended .by the Authority for administrative or other expenses ;
(11 ) vesting in a trustee or other fiduciary the
property, rights, powers and duties in trust as the Autho-
rity determines , which may include any of the rights , powers
and duties of the trustee appointed by the bondholders or
noteholders pursuant to this Act, and abrogating the right
of the bondholders or noteholders to appoint a trustee under
this Act or limiting the rights , powers and duties of the
trustee;
(12) placing the management, operation and control
of specified facilities or assets of the Authority in - the
hands of a board of trustees to be named in the resolution
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or trust indenture and specifying the terms of office
of the board of trustees , their powers and duties , the
manner of exercising the same, the appointment of suc-
cessors , and all matters pertaining to their organization
and duties; and
(13) any other matters , of like or different char-
acter, which in any way affect `the security or protection
of the bonds or notes or the bondholders of noteholders .
F. The resolution authorizing the issuance of the
bonds or notes or the trust indenture or other instrument secur-
ing them may provide that in the event of a default or, under
the conditions therein stated, a threatened default in the pay-
ment of principal or of interest on bonds or notes , any court
of competent jurisdiction may, upon petition of the holders of
outstanding bonds or notes , appoint a receiver with authority
to collect and receive pledged revenues and receipts, and the
instruments may limit or qualify the rights of less than all of
the holders of the outstanding bonds or notes payable from the
same source to institute or prosecute any litigation affecting
the Authority's properties or revenues.
G. Any bonds or notes, including refunding bonds ,
authorized by this Act may be additionally secured by a trust
indenture under which the trustee may be a bank having trust
powers situated either within or outside the state. The bonds
or notes , within the discretion of both the Authority and the
City Council of the City of Baytown, may be additionally secured
by a mortgage or a deed of trust lien or security interest on
facilities or assets of the Authority and all real property,
franchises , easements , leases and contracts and all rights
appurtenant to the properties , vesting in the trustee power to
sell such facilities or assets for the payment of the indebtedness ,
power to operate such facilities- or assets and all other powers
17 .
and authority for the further security of the bonds or notes . Such
trust indenture , regardless of the mortgage or the deed of trust
lien or security interest in the facilities or assets may contain
any provisions prescribed by the Authority and the City Council
of the City of Baytown for the security of the bonds or notes and
the preservation of the trust estate, and may make provision for
amendment or modification of them, and may condition the right
to expend the Authority's money or sell the Authority's facilities
or assets upon approval of a registered professional engineer
selected as provided therein, and may make any other provisions
for protecting and enforcing the rights and remedies of the
bondholders or noteholders as may be reasonable and proper and
not in violation of the law. The resolution or trust indenture
may also contain provisions governing the issuance of bonds and
notes to replace lost, stolen or mutilated bonds or notes.
H. The Authority shall have the power to direct the
investment of money in the funds created by the resolutions ,
trust indentures or other instruments securing the bonds or
notes. From the proceeds from the sale of the bonds or notes ,
the Authority may set aside amounts for payments into the in-
terest and sinking fund until completion of construction and
until adequate revenues and receipts are available from operations
to pay principal and interest, amounts for payments into reserve
funds , and provisions for such may be made in the resolution
authorizing the bonds , notes or the trust indenture or other
instrument securing the bonds or notes. Proceeds from the sale
of the bonds or notes may be used for the payment of all expenses .
of issuing and selling the bonds or notes . The proceeds from
the sale of the bonds and notes and money in any funds created
in connection with the bonds or notes may be invested:
• (1 ) in direct or indirect obligations of or obli-
gations unconditionally guaranteed by the United States
18 .
maturing in the manner that may be specified by the re-
solution authorizing the bonds or notes or the trust in-
denture or other instrument securing the bonds or notes;
or
(2) in certificates of deposit of any bank or trust
company which deposits are secured by the obligations de-
scribed in Subdivision (1 ) of this Subsection.
I. With the prior approval of the City Council of the
City of Baytown, the Authority may provide by resolution for the
issuance of refunding bonds or notes to refund outstanding bonds
or notes issued under this Act and their accrued interest. The
Authority may sell the refunding bonds or notes and use the proceeds
to retire the outstanding bonds or notes issued under this Act
or the Authority may exchange the refunding bonds or notes for
the outstanding bonds or notes . The issuance of the refunding
bonds or notes, their maturity, the rights of the bondholders ,
and the duties of the Authority with respect to refunding bonds
or notes are governed by the provisions of this Act relating
to original bonds or notes, to the extent that they may be made
applicable. The Authority may also refund any bonds or notes
' under the provisions of any general laws of the State of Texas .
J. After any bonds and notes , including refunding
bonds and notes , are authorized by the Authority, the bonds
and notes and the record relating to their issuance shall be
submitted to the Attorney General of Texas for his examination
as to their validity. If the bonds and notes recite that they
are secured by a pledge of the revenues and receipts of a lease
or leases or other contract or contracts previously made between
the Authority and any person, the leases and contracts may also
be submitted to the Attorney General. If the bonds or notes
have been validly authorized and if the leases or contracts
have been made in accordance with the constitution and laws of
the State , the Attorney General shall approve the bonds or notes
19 .
and the leases or contracts and the bonds or notes shall be
registered by the Comptroller of Public Accounts.
K. After the bonds or notes, and the leases or other
contracts, if any are submitted, have been approved by the Attorney
General, and the bonds and notes have been registered by the
Comptroller of Public Accounts and delivered to the purchasers ,
the bonds and notes and any underlying leases and contracts shall
, be incontestable for any cause.
L. Payment of any bonds and notes according to the
term and tenor, performance of agreements with the holders of
AWN bonds or notes or any person in their behalf, and performance
of official duties prescribed by the provisions of this Act
in connection with any bonds or notes may be enforced in any
court of competent jurisdiction by mandamus or other appropriate
proceeding.
M. Bonds issued under the provisions of this Act
and coupons , if any, representing interest on them, shall when
delivered be considered and construed to be a "security" within
the meaning of Chapter 8, Investment Securities, of the Uniform
Commercial Code.
N. Bonds and notes issued under the provisions of
this Act, the interest on them, and the profit from the sale
of them, shall be exempt from taxation by the State or by any
municipal corporation, county or other political subdivision
or taxing district of the State.
0. Bonds and notes issued under this Act, together
with the interest on them, shall be secured by and payable only
from the sources provided by the terms of this Act.
P. The provisions of this Act shall not be construed
to authorize the giving or lending of the credit of the State
or to be a pledge of the credit of the State for the payment
of any bonds or notes issued under the provisions of this Act
20 .
and the purchasers and holders of any bonds or notes shall never
have the right to demand payment thereof from any revenues, receipts
or assets of the Authority except those pledged to the payment of
bonds or notes . This State, however, pledges and agrees with the
holders of any bonds or notes issued under this Act that it will
not limit or alter the rights vested in the Authority to fulfill
the terms of any agreements made with the holders of the bonds
or notes consistent herewith, or in any way impair the rights
and remedies of the holders until the bonds or notes , together
with interest on them, with interest on any unpaid installments
of interest, and all costs and expenses for which the Authority
is liable in connection with any action or proceedings by or
on behalf of the holders, are fully met and discharged. The
Authority may include this pledge and agreement of the State
in any agreements it makes with the holders of the bonds or notes.
Sec. 13. A. The Authority shall have the right, power
and authority to construct, lay, maintain and operate canals,
laterals , ditches, levees, pipelines and all other facilities
for the transportation and distribution of water, together with
service roads and all other facilities incidental to and designed
for use in connection with such transportation and distribution
of water, under, along and across any railroad; railroad right-
of-way; canal; stream; pipeline; utility line; streets or alleys
in cities , towns and villages , subject to reasonable regulation
by such cities , towns and villages; and public roads and highways ,
but such crossings shall not impair the uses of the facilities
crossed, and such facilities shall be promptly restored to their
former condition of usefulness .
B. In the event that the Authority, in the exercise
of the power of eminent domain or power of relocation, or any
other power granted hereunder, makes necessary the relocation,
raising, rerouting or changing the grade of, or altering the
21 .
' construction of, any highway, railroad, electric transmission
line, telegraph or telephone properties and facilities , or pipe-
line, all such necessary relocation, raising, rerouting, chang-
ing of grade or alteration of construction shall be accomplished
at the sole expense of the Authority. The term "sole expense"
shall mean the actual cost of such relocation, raising, lowering,
rerouting, or change in grade or alteration of construction in
providing comparable replacement without enhancement of such
facilities, after deducting therefrom the net salvage value
derived from the old facility.
C. The Authority shall not be required to give bond
for appeal or bond for costs in any condemnation suit or any
other suit to which it may be a party.
Sec. 14. With the prior approval of the City Council of
the City of Baytown, the Board of Directors of the Authority
shall select any bank or banks in the State of Texas to act
as depository or depositories for the funds of the Authority.
To the extent that funds in the depository bank or banks are.
not insured by the Federal Deposit Insurance Corporation, they
shall be secured in the manner provided by law for the security
of funds of the City of Baytown. So long as the provisions of
Article 2529c, Vernon's Texas Civil Statutes are observed, any
director of the Authority may be a shareholder in said depository
bank or banks.
A complete system of accounts shall be kept by the
Authority and an audit of its affairs for each year shall be
prepared by an independent certified public accountant, or a
firm of independent certified public accountants , of recognized
integrity and ability. The fiscal year of the Authority shall
be from October 1 to September 30 of the following year, unless
and until changed by the Board. A written report of the audit
shall be delivered to each member of the Board not later than
ninety (90) days after the close of each fiscal year; a copy
22 .
of such audit report shall be delivered upon request to the holder
or holders of at least twenty-five (25) percent of the then out-
standing bonds of the Authority; at least five (5) additional
copies of said audit shall be delivered to the office of the
Authority, one of which shall be kept on file and shall constitute
a public record open to inspection by any interested person or
persons during normal office hours; and one copy of such audit
report shall be filed with the City of Baytown. The cost of
such audit shall be paid for by the Authority.
Sec. 15. The Board of Directors shall designate,
establish and maintain an office or offices of the Authority
as provided by Section 54 . 110 , Title 4 , Water Code.
Sec. 16. All bonds and refunding bonds of the
Authority shall be and are hereby declared to be legal, eligi-
ble and authorized investments for banks, savings and loan
associations , insurance companies , fiduciaries, trustees , and
for the sinking funds of cities, towns, villages, counties ,
school districts or other political corporations or subdivi-
sions of the State of Texas and for all public funds of the
State of Texas or its agencies, including the State Permanent
School Fund. Such bonds and refunding bonds shall be eligible
to secure the deposit of any and all public funds of the State
of Texas, cities, towns, villages, counties, school districts
or other political corporations or subdivisions of the State
of Texas; and such bonds shall be lawful and sufficient secu-
rity for said deposits to the extent of their face value,
when accompanied by all unmatured coupons appurtenant thereto.
Sec. 17 . The Legislature specifically finds and
declares that the requirements of Article XVI, Section 59 (d) ,
Constitution of Texas , have been done and accomplished in due.
course and time, and in due order, and that the Legislature
f has the power and authority to enact this Act.
23.
Sec. 18. If any word, phrase, clause, paragraph, sen-
tence, part, portion or provision of this Act or the application
thereof to any person or circumstance shall be held to be invalid
or unconstitutional, the remainder of this Act shall nevertheless
be valid, and the Legislature hereby declares that this Act would
have' been enacted without such invalid or unconstitutional word,
phrase, clause, paragraph, sentence, part, portion or provision.
All of the terms and provisions of this Act are to be liberally.
construed to effectuate the purposes, powers, rights , functions
and authorities herein set forth.
Sec. 19 . The fact that the Authority 's works and pro-
jects and conservation measures are immediately and urgently
needed hereby establishes and creates and emergency and an im-
perative public necessity requiring the Constitutional Rule
that bills be read on three several days in each house be sus-.
pended, and said Rule is hereby suspended, and this Act shall
take effect from and after its passage, and it is so enacted.
24 .