By Crownover H.B. No. 3804
76R8912 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Lake Cities Municipal Utility Authority.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Under the authority of Article XVI, Section 59 of
1-5 the Texas Constitution, there is hereby ratified and confirmed the
1-6 valid and effective creation and existence of a conservation and
1-7 reclamation district known and to be known as Lake Cities Municipal
1-8 Utility Authority (herein LCMUA), which is a governmental agency,
1-9 an agency of the State of Texas, a municipal corporation, and a
1-10 body politic and corporate. The prior creation and naming of LCMUA
1-11 is hereby validated, ratified and confirmed. The principal offices
1-12 of LCMUA are and shall be located in Denton County, Texas.
1-13 SECTION 2. The specific territorial boundary of LCMUA is and
1-14 shall be definitively described in the official records of LCMUA.
1-15 Such territory may be changed by addition or deletion as reflected
1-16 from time to time in the official records of LCMUA. LCMUA must
1-17 maintain at all times as part of its official public records an
1-18 adequate description of its area and territory which shall
1-19 constitute its official boundaries. All LCMUA area and territory
1-20 as designated is subject to levy and assessment for the payment of
1-21 ad valorem taxes. It is further determined that all of the
1-22 official territory of LCMUA is being and will be benefited by the
1-23 works and improvements of LCMUA.
1-24 SECTION 3. All management of LCMUA shall be vested in and
2-1 exercised by a five person Board of Directors (hereinafter
2-2 "Board"). Each member of the Board shall be elected at large by
2-3 the qualified voters residing within the official territory of
2-4 LCMUA. Each member must be over the age of 21 years at the time of
2-5 the election or appointment, be a bona fide resident within the
2-6 official territory of LCMUA for at least six months prior to
2-7 election or appointment, maintain such residence during the time
2-8 period such person is serving on the Board, and never have been
2-9 convicted of a felony offense or any offense of theft, and must be
2-10 capable of being bonded. (a) All five current members of the
2-11 Board shall serve until their successors are elected in the year
2-12 2000 at which time all five Board positions shall be open for
2-13 election. Two of the five Board members shall be elected in the
2-14 year 2000 for a two year term and the remaining three members of
2-15 the Board shall be elected in the year 2000 for a four year term.
2-16 The three Board members who received the largest number of votes
2-17 shall be the Board members who are elected for the three four-year
2-18 terms beginning in the year 2000. The two Board members who
2-19 receive the fewest amount of votes shall be the Board members
2-20 elected to the two-year terms beginning in the year 2000. In the
2-21 event of a tie vote between the candidates for positions three,
2-22 four and five, the election tie shall be settled between the tying
2-23 Board members by agreement of the Board members so elected or in
2-24 the absence of such agreement, the Board member candidates shall
2-25 settle the tie by drawing a high card from a new sealed packaged
2-26 deck of fifty-two playing cards. The general manager of LCMUA
2-27 shall shuffle the deck three times, name the candidate for whom the
3-1 drawing is made and draw from the deck with high card prevailing
3-2 without reference to suit, with the Ace being high card. Should
3-3 the drawing also result in a tie, the manager shall continue to
3-4 draw after a re-shuffle until there is no tie. The high card(s)
3-5 wins the four-year term(s).
3-6 (b) An election for the two Board positions elected to serve
3-7 for two year terms in the year 2000 shall be held in the year 2002.
3-8 The two Board positions elected in 2002 shall thereafter serve four
3-9 year terms. The three Board positions elected to serve a four year
3-10 term in the year 2000 shall be filled by election in the year 2004.
3-11 Thereafter, in accordance with the TEX. ELEC. CODE ANN. and TEX.
3-12 WATER CODE ANN., elections for Board members shall be conducted in
3-13 staggered elections every two years with three Board positions
3-14 being elected beginning in the year 2000 and successively every
3-15 four years thereafter and two Board positions being elected for
3-16 four year terms beginning in the year 2002, and every four years
3-17 thereafter.
3-18 (c) Each Board member shall serve for his/her term of office
3-19 as herein provided and thereafter until his/her successor shall be
3-20 elected or appointed and qualified. A Board member is qualified to
3-21 serve if s/he meets the requirements of this Act and the
3-22 requirements set forth in the TEX. ELEC. CODE ANN. and the TEX.
3-23 WATER CODE ANN., as the same exists or may hereafter be amended.
3-24 No member of a governing body of any municipal corporation and no
3-25 employee of a municipal corporation shall be appointed or elected
3-26 as a Board member. The Board members shall subscribe the
3-27 appropriate oath of office and shall be eligible for and obtain the
4-1 required minimum bond for the faithful performance of the duties of
4-2 each Board member, the cost of such bond being paid by LCMUA. A
4-3 majority of the Board shall constitute a quorum. If any Board
4-4 member becomes ineligible to serve after being elected, is removed,
4-5 resigns, or otherwise ceases to be an active Board member, the
4-6 remaining members of the Board may appoint by a majority vote a
4-7 substitute or successor Board member to serve in the position of
4-8 the departing Board member for the rest of the departing Board
4-9 members' unexpired term.
4-10 (d) No compensation shall be paid to any Board member.
4-11 SECTION 4. The Board shall elect from its number a President
4-12 and Vice President of LCMUA and such other officers as in the
4-13 judgment of the Board are necessary or appropriate. The President
4-14 shall be the Chief Executive Officer of LCMUA and the presiding
4-15 officer of all Board meetings and proceedings, and shall have the
4-16 same right to vote as any other Board member. The Vice President
4-17 shall perform all duties and exercise all powers imposed or
4-18 conferred by this act and Roberts Rules Of Order upon the President
4-19 when the President is absent or fails or declines to act, except
4-20 for the exercise of the President's right to vote. The Board shall
4-21 also elect a Secretary and a Treasurer from its members, but may
4-22 combine those offices. The Treasurer shall give bond in such
4-23 amount as may be required by the Board, or by applicable state law
4-24 with the premium to be paid by LCMUA. The condition of such
4-25 Treasurer's bond shall be that the Treasurer will faithfully
4-26 account for all money which shall come into his/her custody as
4-27 Treasurer for LCMUA. The Board shall be empowered to appoint and
5-1 employ necessary and appropriate professional persons including
5-2 engineers, attorneys, accountants, consultants, and other
5-3 employees. The day to day management of LCMUA shall be conducted
5-4 by a general manager. The power to hire and fire employees and
5-5 independent contractors of LCMUA may be conferred upon the manager.
5-6 The Board may confer upon the general manager the right and power
5-7 to sign checks, contracts, and otherwise fully conduct the day to
5-8 day management and operations of LCMUA without specific Board
5-9 approval as to any specific transaction. However, the general
5-10 manager shall not have the power to employ any person, firm, or
5-11 entity other than at the will and sufferance of the Board and shall
5-12 not have the power or authority to sign any contract on behalf of
5-13 LCMUA which exceeds the minimum amount of total overall value for
5-14 consideration set by law without prior Board approval. The Board
5-15 may adopt a seal for LCMUA. However, it shall not be necessary for
5-16 the seal to be affixed to any act, memorandum, or resolution of the
5-17 Board unless such act requires the seal to be affixed.
5-18 SECTION 5. Additional territory may be annexed to the
5-19 boundaries of LCMUA in the following manner: (a) A petition
5-20 asking for annexation signed by a majority, of the resident
5-21 qualified voters of the territory sought to be annexed shall be
5-22 filed with the Board. The petition shall legibly state the name,
5-23 address, and residence of each person signing it, and shall be
5-24 signed under oath with the following Affidavit: "Each of the
5-25 undersigned swears that s/he is a bona fide resident qualified
5-26 voter of the territory sought to be annexed, and that s/he has not
5-27 been offered or paid any consideration in money or anything of
6-1 value to sign this petition." The petition shall describe the
6-2 territory sought to be annexed by metes and bounds or other
6-3 adequate legal description signed and sealed by a qualified
6-4 registered professional surveyor or engineer and shall be
6-5 accompanied by a plat which enables the Board to identify the
6-6 boundaries and specific territory sought to be annexed.
6-7 (b) If the Board finds that the petition complies with and
6-8 is signed by the required number of qualified persons and further
6-9 finds that the annexation would be in the best interest of the
6-10 residents of the territory and the best interest of LCMUA, and
6-11 further finds that LCMUA will be able to supply services or cause
6-12 services to be supplied to the territory sought to be annexed, it
6-13 shall adopt a resolution stating the conditions under which such
6-14 territory may be annexed to LCMUA, and shall fix a time and place
6-15 when and where a hearing shall be held by the Board on the question
6-16 of whether the territory sought to be annexed will be benefited by
6-17 the improvements, works, services, and facilities then owned or
6-18 operated or contemplated to be owned or operated by LCMUA, or the
6-19 performance of other functions of LCMUA. Railroad right-of-way
6-20 which is not situated within the defined limits of an incorporated
6-21 town will not be benefited by such services and therefore it is
6-22 provided herein that no railroad right-of-way shall hereafter be
6-23 annexed to LCMUA except such right-of-way as is contained within
6-24 the limits of an incorporated municipality or governmental body.
6-25 Notice of the adoption of such resolutions stating the time and
6-26 place of such hearing shall be published one (1) time in a
6-27 newspaper of general circulation in a territory sought to be
7-1 annexed at least ten days prior to the date of such hearing. The
7-2 notice shall describe the territory in the same manner in which it
7-3 is required by this Act to be described in the petition. All
7-4 persons interested may appear at such hearing and offer evidence
7-5 for or against the proposed annexation. Witnesses may be sworn at
7-6 the option of the presiding officer of LCMUA. Such hearing may
7-7 proceed in such order and under such rules as may be prescribed by
7-8 the Board. The hearing may be recessed and reconvened from time to
7-9 time at the discretion of the Board. If at the conclusion of the
7-10 hearing the Board finds that the area in such proposed annexation
7-11 will be benefited by the present or contemplated improvements,
7-12 services, works, or facilities of LCMUA, the Board shall adopt a
7-13 resolution making such finding and calling an election in the
7-14 territory proposed to be annexed stating therein the date of the
7-15 election, the place or places of holding the same, the proposition
7-16 upon which is to be voted, and appointing a presiding judge or
7-17 judges, and clerks for such voting procedure, who shall in turn
7-18 appoint the necessary assistant judges or clerks to assist in
7-19 holding the election. The election is to be conducted in
7-20 accordance with the applicable statutes and regulations of the TEX.
7-21 ELEC. CODE ANN.
7-22 Notice of such election shall be given by publishing a
7-23 synopsis of the resolution calling for the election one time in a
7-24 newspaper of general circulation within the territory sought to be
7-25 annexed at least ten (10) days prior to the date set for election.
7-26 Only qualified voters as defined by the TEX. ELEC. CODE ANN. who
7-27 reside in the territory sought to be annexed shall be qualified to
8-1 vote in such election, and may be required to furnish proof of such
8-2 residency. Returns of the result of said election shall be made to
8-3 the Board. The Board shall canvass the returns of such election
8-4 and adopt an order declaring the results thereof. If such order
8-5 shows that a majority of the votes cast are in favor of the
8-6 annexation, the Board shall by resolution annex said territory into
8-7 LCMUA, and such annexation shall thereafter be incontestable except
8-8 in the manner and within the time provided for contesting election
8-9 under the TEX. ELEC. CODE ANN.
8-10 (c) The board in calling an election on the proposition of
8-11 annexation of territory may call an election over the entire
8-12 existing territory of LCMUA for purposes of determining whether the
8-13 entire LCMUA territory as enlarged shall assume and be burdened by
8-14 any ad valorem tax necessary and appropriate to support the general
8-15 obligation bonds then outstanding and those theretofore voted but
8-16 not yet sold, and those which may be voted upon in the future, and
8-17 whether any ad valorem tax shall be levied upon all taxable
8-18 property within the territory of LCMUA as enlarged by the territory
8-19 proposed to be annexed. The Board may provide in the election
8-20 process within the territory sought to be annexed a proposition
8-21 that the annexed territory shall be subject to a levy and
8-22 assessment for any bonded indebtedness of LCMUA supported by the
8-23 levy and collection of ad valorem taxes. Any such election shall
8-24 be called and held and notice thereof given in the same manner as
8-25 elections for the issuance of bonds as provided by the applicable
8-26 provisions of the TEX. ELEC. CODE ANN. and TEX. WATER CODE ANN.
8-27 (d) Elections for disannexation may be called by the Board
9-1 or open petition and be thereafter held in accordance with
9-2 subsections (a), (b), and (c) of this section except that the
9-3 subject matter of such petition, resolutions, and elections shall
9-4 be disannexation, not annexation. No disannexation shall have the
9-5 result of which is to reduce any tax base necessary to support any
9-6 existing bonds by levy and assessment of ad valorem taxes.
9-7 SECTION 6. Area may be added to the territory of LCMUA and
9-8 become a part thereof upon voluntary petition of all owners of such
9-9 territory in the following manner: All owners of the land sought
9-10 to be voluntarily annexed shall file with the Board a petition
9-11 asking that the lands described and sought to be added to and
9-12 become a part of LCMUA's established territory. Said petition
9-13 shall describe the land sought to be annexed by metes and bounds
9-14 and accompanying plat by LCMUA can ascertain its location,
9-15 description, and identity. Such petition shall be signed and
9-16 executed in the same manner provided by law for conveyance of real
9-17 property. Such petition shall be heard and considered by the Board
9-18 and may be granted and said land added to LCMUA's existing
9-19 territory if the same is considered to be of the advantageous and
9-20 beneficial to LCMUA and if services can be provided to the annexed
9-21 territory without injury or detriment to the operation and function
9-22 of LCMUA's current territory. Such determination regarding
9-23 probable or possible injury or detrimental operation or function
9-24 shall be determined solely by the Board based upon its discretion.
9-25 Any such petition which may be granted thereby adding lands to
9-26 LCMUA's territory shall become a part of the official records of
9-27 LCMUA. The Board shall require the petitioner to provide a sworn
10-1 affidavit identifying all owners and lien holders of the land
10-2 sought to be annexed, and may refuse annexation unless all owners
10-3 and lien holders join in or consent to such petition.
10-4 All landowners of a single tract or parcel may petition for
10-5 voluntary disannexation in a manner prescribed in subsection (a) of
10-6 this Section 6 except that such petition, resolutions, or decisions
10-7 made thereon shall be for disannexation, and not annexation. The
10-8 Board may refuse to grant such disannexation if in its description
10-9 such disannexation would be detrimental to the interests of LCMUA.
10-10 SECTION 7. LCMUA is authorized to develop surface or
10-11 underground water storage and supply facilities and to construct or
10-12 cause to be constructed a diversion works, pumps, pumping stations,
10-13 pipelines, intermediate and terminal storage reservoirs, water
10-14 treatment plants, distribution systems and all other related
10-15 facilities which will facilitate or implement the duty of LCMUA to
10-16 deliver and distribute water within its territory and any other
10-17 territory for which it holds a certificate of convenience and
10-18 necessity and to purchase, improve, modify, or extend any existing
10-19 water system or systems within the certificated territory or
10-20 outside the certificated territory if reasonably necessary or
10-21 appropriate for the support of services within the certificated
10-22 territory. LCMUA shall have the full power and authority to
10-23 construct all facilities reasonably necessary or convenient to
10-24 enable LCMUA to deliver, treat and distribute water. LCMUA is also
10-25 authorized to construct, maintain service, and operate a complete
10-26 waste water system including but not limited to waste water
10-27 treatment plant sites and collection systems. LCMUA is authorized
11-1 to use public streets, alleys, ways and places for the laying of
11-2 its water and waste water lines and facilities. LCMUA is
11-3 authorized to make contracts for the purchase of water or water
11-4 supplies, purchase treated water, purchase waste water treatment
11-5 facilities and to make contracts for the purchase or sale of
11-6 treated or untreated water or waste water.
11-7 SECTION 8. LCMUA is also empowered and has authority to
11-8 obtain any and all permits, licenses, consents, and permissions as
11-9 may be appropriate from the Texas Natural Resource Conservation
11-10 Commission or any other appropriate regulatory body in order to
11-11 conduct any of its operations.
11-12 SECTION 9. LCMUA is further authorized to acquire by
11-13 purchase all works, machinery, plants, and other facilities and
11-14 equipment and land, rights-of-way, and easements necessary or
11-15 appropriate for the purpose of exercising its rights and performing
11-16 its duties under this Act. Subject to the application of the terms
11-17 of any deed of trust or indenture executed by LCMUA, it may sell,
11-18 trade, or otherwise dispose of any real or personal property deemed
11-19 by the Board not to be needed for the LCMUA purposes. All personal
11-20 property deemed by the Board not to be needed for LCMUA purposes
11-21 may be sold under such practices and procedures as specified by the
11-22 Board and as may be necessary for compliance with applicable law.
11-23 SECTION 10. LCMUA shall have full power of eminent domain as
11-24 a municipality and a public utility. (a) LCMUA shall have the
11-25 right to acquire by condemnation any interest in land or other
11-26 property including but not limited to fee simple title or easements
11-27 or rights-of-way in and upon or under property within and beyond
12-1 the boundaries of the LCMUA territory. This right of eminent
12-2 domain and the exercise of such right, power, privilege and
12-3 function is governed by the procedure set forth in Chapter 21 of
12-4 the TEX. PROP. CODE ANN. and any other statutory or constitutional
12-5 authority including but not limited to the Constitution of the
12-6 State of Texas, and TEX. WATER CODE ANN. LCMUA is hereby declared
12-7 to be a municipal corporation within the meaning of Texas Local
12-8 Government Code Chapters 251 and 261 relating to Municipal and
12-9 County powers of eminent domain. The amount of and character of
12-10 interest taken in land, or other property and easements thus to be
12-11 acquired shall be determined by the Board upon proper resolution.
12-12 LCMUA shall have the same powers, duties and privileges as are
12-13 conferred upon water and control improvement districts by TEX.
12-14 WATER CODE ANN. Chapters 50, 51, 54, and 55.
12-15 (b) In the event that LCMUA, in the exercise of the power of
12-16 eminent domain or power of relocation, or any power granted
12-17 hereunder, makes necessary the relocating, raising, rerouting, or
12-18 changing the grade of, or altering the construction of any highway,
12-19 roadway, electric transmission line, telephone or telegraph
12-20 properties and facilities, or pipelines, all such necessary
12-21 relocation, raising, rerouting, and changing of grade, or
12-22 alteration of construction shall be accomplished at the sole
12-23 expense of LCMUA. The term "sole expense" shall mean the actual
12-24 cost of such relocation, lowering, rerouting, or changing in grade
12-25 or altering of construction in providing a comparable replacement
12-26 without enhancement of such facilities, after deducting therefrom
12-27 the net salvage value derived from the old facility.
13-1 SECTION 11. Any construction contract shall be procured in
13-2 accordance with TEX. WATER CODE ANN. Section. 39.271 et seq. as
13-3 the same exists or may hereafter be amended.
13-4 SECTION 12. LCMUA is authorized to issue general obligation
13-5 and revenue bonds as follows: (a) For the purpose of carrying out
13-6 any power or authority conferred by this Act, LCMUA is empowered to
13-7 issue its negotiable bonds to be payable from revenues or ad
13-8 valorem taxes or both revenues and taxes for the pledge of any such
13-9 revenues by resolution of the Board. Pending the issuance of
13-10 definitive bonds the Board may authorize the delivery of negotiable
13-11 interim bonds or notes, certificates of obligation or other similar
13-12 documents which are eligible for exchange or substitution or
13-13 retirement based upon the proceeds of the definitive bonds. LCMUA
13-14 may from time to time refinance any existing bonds.
13-15 (b) The issuance of bonds shall be in accordance with the
13-16 relevant statutory provisions of TEX. WATER CODE ANN. Chapter 49,
13-17 and all statutes, rules and regulations regarding the
13-18 certification, issuance and sale of such bonds.
13-19 (c) All bonds shall be authorized by resolution of the Board
13-20 and shall be issued in the name of Lake Cities Municipal Utility
13-21 Authority signed by the president or vice president, attested by
13-22 the secretary and shall bear the seal, or a facsimile seal of
13-23 LCMUA. It is provided, however, that the facsimile signatures of
13-24 the president or of the secretary or of both may be printed or
13-25 lithographed on the bonds if authorized by the Board, and the seal
13-26 of LCMUA may be impressed on the bonds or may be printed or
13-27 lithographed thereon. All bonds shall mature at a time or time
14-1 period set by the Board not to exceed forty (40) years and may be
14-2 sold at such price, or under such terms as determined by the Board
14-3 to be the most advantageous reasonably available; provided that the
14-4 interest on the bonds, including the discount, if any, shall be
14-5 based upon market value at the time of such sale and shall be
14-6 established within the discretion of the Board. Such bonds may be
14-7 made callable prior to maturity at such times and under such prices
14-8 and circumstances that may be prescribed in the resolution
14-9 authorizing the bonds, and may be made registrable or
14-10 electronically registrable as to principal or as to both principal
14-11 and interest.
14-12 (d) Bonds may be issued in more than one series and from
14-13 time to time as required for carrying out the purposes and business
14-14 of LCMUA.
14-15 (e) The bonds may be secured by a pledge of all or part of
14-16 the net revenues of LCMUA, or by the net revenues of any one or
14-17 more contracts theretofore or thereafter made or other revenues or
14-18 income specified by resolution of the Board or in the trust
14-19 indenture or other instrument securing the bonds. Any such pledge
14-20 may reserve the right under conditions therein specified, to issue
14-21 additional bonds which will be on a parity with or subordinate to
14-22 the bonds then being issued. The term "Net revenues" as used in
14-23 this Section shall mean the gross revenue and income of LCMUA thus
14-24 pledged after deduction of the amount necessary to pay the cost of
14-25 performing any such contract and of maintaining and operating LCMUA
14-26 and its properties.
14-27 (f) After the authorizing election required has been
15-1 conducted, LCMUA is also empowered to issue bonds payable from ad
15-2 valorem taxes to be levied on all taxable property therein, or
15-3 within its territories, or to issue bonds secured by and payable
15-4 from both such taxes and the revenues of such Authority. Where
15-5 bonds are issued payable wholly or partially from ad valorem taxes,
15-6 it shall be the duty of the Board to levy a tax sufficient to pay
15-7 the bonds and the interest thereon as such bonds and interest
15-8 become due, at the rate of the tax for any year may be fixed after
15-9 giving consideration to the money received from the other pledged
15-10 revenues which may be available for payment of principal and
15-11 interest to the extent and in the manner permitted by the
15-12 resolution authorizing the issuance of the bonds.
15-13 (g) Where bonds payable wholly from revenues are issued, it
15-14 shall be the duty of the Board to fix, and from time to time to
15-15 revise, the rates of compensation for water sold and services
15-16 rendered by LCMUA which will be sufficient to pay the expense of
15-17 operating and maintaining the facilities of LCMUA and to pay the
15-18 bonds as they mature and the interest as it accrues and to maintain
15-19 the reserve and other funds as required in the resolution
15-20 authorizing the bonds or in the trust indenture or other
15-21 instruments securing the bonds. Where bonds payable partially from
15-22 revenues and partially from taxes are issued it shall be the duty
15-23 of the Board to fix, and from time to time revise the rates of
15-24 compensation for water sold and services rendered by LCMUA which
15-25 will be sufficient to assure compliance with the resolution
15-26 authorizing the bonds and with any trust indenture or other
15-27 instrument securing the bonds.
16-1 (h) From the proceeds from the sale of the bonds, LCMUA may
16-2 set aside amounts for the payments into the interest and sinking
16-3 fund and the reserve fund, and such revisions may be made in the
16-4 resolution authorizing the bonds or any trust indenture or other
16-5 instruments securing the bonds. Proceeds from the sale of the
16-6 bonds may also be used for the payment of all expenses necessarily
16-7 incurred in accomplishing the purpose for which LCMUA is and was
16-8 created, including expenses of issuing and selling the bonds. The
16-9 proceeds from the sale of the bonds may be invested in obligations
16-10 to be specified by the resolution authorizing the bonds or the
16-11 trust indenture or other instrument securing the bonds.
16-12 (i) Funds accumulated for the payment of bonds and for
16-13 revenues may be invested in obligations specified in the resolution
16-14 authorizing the bonds or in the indenture.
16-15 (j) In the event of a default or a threatened default in the
16-16 payment of principal or of interest on bonds payable wholly or
16-17 partially from revenues, any court of competent jurisdiction in
16-18 Denton County, Texas may, upon petition of the holders of
16-19 outstanding bonds, appoint a receiver with authority to collect and
16-20 receive all income of LCMUA except taxes, employ and discharge
16-21 agents and employees of LCMUA, take charge of funds on hand (except
16-22 funds received form taxes unless commingled) and manage the
16-23 proprietary affairs of LCMUA without consent or hindrance by
16-24 LCMUA's Board of Directors, Board members individually, or other
16-25 employees of LCMUA. Such receiver may also be authorized to sell
16-26 or make contracts for the sale of water or renew such contracts
16-27 with the approval of the Court appointing such receiver. The Court
17-1 may vest the receiver with such other powers and duties as a Court
17-2 may find necessary for the protection of the holders of the bonds.
17-3 The resolution authorizing the issuance of the bonds or the trust
17-4 indenture or other instrument securing them may limit or qualify
17-5 rights of the holders of less than all of the outstanding payable
17-6 from the same source to institute or prosecute any litigation
17-7 affecting LCMUA's property or income.
17-8 (k) Any provision in this Act to the contrary
17-9 notwithstanding, before issuing any construction bonds, LCMUA shall
17-10 submit plans and specifications and other necessary information and
17-11 documents to the appropriate authorities and maintain and obtain
17-12 the necessary permitting and permission for the authorization of
17-13 such relevant state department or other regulatory body including
17-14 but not limited to the Texas Natural Resource Conservation
17-15 Commission.
17-16 SECTION 13. LCMUA is authorized to issue refunding bonds for
17-17 the purpose of refunding any outstanding bonds authorized by this
17-18 Act or other authority and any interest thereon. Such refunding
17-19 bonds may be issued to refund more than one series of outstanding
17-20 bonds and combine the revenues pledge to the outstanding bonds for
17-21 the security of the refunding bonds, and may be secured by other or
17-22 additional revenues and mortgage liens. The provisions of this law
17-23 with reference to the issuance by LCMUA of other bonds, their
17-24 security, and their approval by the State Attorney General and the
17-25 remedies of the holders shall be applicable to refunding bonds.
17-26 Refunding bonds shall be registered by the State Comptroller upon
17-27 surrendering cancellation of the bonds to be refunded, but in lieu
18-1 thereof, the resolution authorizing their issuance may provide that
18-2 they shall be sold and the proceeds thereof deposited in a bank.
18-3 In which case the refunding bonds may be issued in an amount
18-4 sufficient to pay the principal of and the interest on the original
18-5 bonds to their option date or maturity date, and the State
18-6 Comptroller shall register them without concurrent surrender and
18-7 cancellation of the original bonds.
18-8 SECTION 14. Any bonds (including refunding bonds) authorized
18-9 by law, not payable wholly from ad valorem taxes, may be
18-10 additionally secured by a trust indenture under which the Trustee
18-11 may be a bank, having trust powers, situated either within or
18-12 outside the State of Texas. Such bonds, within the discretion of
18-13 the Board, may be additionally secured by a deed of trust or a
18-14 mortgage lien upon physical properties of LCMUA and all franchises,
18-15 easements, water rights, and appropriation permits, leases and
18-16 contracts and all rights pertinent to such properties, vesting in
18-17 the trustee power to sell the properties for the payment of the
18-18 indebtedness, power to operate the properties and all other powers
18-19 and authority for the further security of the bonds. Such trust
18-20 indenture, regardless of the existence of the deed of trust or
18-21 mortgage lien on the properties may contain any provisions
18-22 prescribed by the Board for the security of the bonds and the
18-23 preservation of the trust estate, and may make provision for
18-24 amendment or modification thereof and the issuance of bonds to
18-25 replace lost or mutilated bonds, and may condition the right to
18-26 expend LCMUA money or sell LCMUA property upon approval of a
18-27 registered professional engineer selected as provided therein, and
19-1 may make provision for the investment of funds of LCMUA. Any
19-2 purchaser under a sale under the deed of trust lien, where one is
19-3 given shall be the absolute owner of the properties, facilities and
19-4 rights so purchased and shall have the right to maintain and
19-5 operate the same.
19-6 SECTION 15. (a) No bonds payable wholly or partially from
19-7 ad valorem taxes (except refunding bonds) shall be issued unless
19-8 authorized by an election at which only the qualified voters
19-9 residing in the LCMUA's voting territory shall be allowed to vote
19-10 and unless a majority of the votes cast is in favor of the issuance
19-11 of the bonds. Bonds not payable wholly or partially from ad
19-12 valorem taxes may be issued without an election.
19-13 (b) Such election may be called by the Board without a
19-14 petition. The resolution calling the election shall specify the
19-15 time and places of holding the same, the purpose for which the
19-16 bonds are to be issued, the maximum amount thereof, the form of the
19-17 ballot, and the presiding judge for each voting place. Bonds for
19-18 water purposes and sewer purposes may, in the discretion of the
19-19 Board, be submitted in a single proposition. The presiding judge
19-20 serving at each voting place may appoint one (1) assistant judge
19-21 and two (2) clerks to assist in holding of such election. Notice
19-22 of the election shall be given by publishing a substantial copy of
19-23 the resolution calling for the election in a newspaper having
19-24 general circulation in LCMUA on the same day of each of two (2)
19-25 consecutive weeks. The first publication shall be at least
19-26 fourteen (14) days prior to the date set for the election.
19-27 (c) The returns of the election shall be made to and
20-1 canvassed by the Board.
20-2 (d) The General Laws relating to elections shall be
20-3 applicable to elections held under this Section of this law except
20-4 as otherwise provided herein.
20-5 SECTION 16. After any bonds (including refund bonds) are
20-6 authorized by LCMUA, such bonds and the record relating to their
20-7 issuance shall be submitted to the Attorney General for his
20-8 examination as to the validity thereof. Where such bonds recite
20-9 that they are secured by a pledge of the proceeds of a contract
20-10 heretofore made between LCMUA and any other governmental agency,
20-11 authority or district, a copy of such contract and the proceedings
20-12 of the governmental agency, authority or district authorizing such
20-13 contract may also be submitted to the Attorney General. If such
20-14 bonds have been authorized and if such contracts have been made in
20-15 accordance with the Constitution and laws of the State of Texas,
20-16 the Attorney General shall approve the bonds and such contracts,
20-17 and the bonds shall then be registered by the State Comptroller of
20-18 Public Accounts. Thereafter the bonds and the contracts, if any,
20-19 shall be valid and binding.
20-20 SECTION 17. The Board shall designate one or more banks to
20-21 serve as depository for the funds of LCMUA. All funds of LCMUA
20-22 shall be deposited in such depository bank or banks except that
20-23 funds pledged to pay bonds may be deposited with the trustee bank
20-24 named in the trust agreement or other escrow, and except that funds
20-25 shall be remitted to the bank or banks of payment for the payment
20-26 of principal of and interest on bonds. To the extent that funds in
20-27 the depository bank and the trustee bank are not insured by the
21-1 Federal Deposit Insurance Corporation they shall be secured in the
21-2 manner provided by law for the security of municipal funds. Banks
21-3 selected by the Board need not go through any bid process or
21-4 process regarding invitation of the banks to become designated
21-5 depositories.
21-6 SECTION 18. All bonds of LCMUA shall be and are hereby
21-7 declared to be legal and authorized investments for banks, savings
21-8 banks, trust companies, building and loan associations, savings and
21-9 loan associations, insurance companies, fiduciaries, trustees,
21-10 guardians, and for the sinking funds of municipalities, and other
21-11 political corporations or subdivisions of the State of Texas. Such
21-12 bonds shall be eligible to secure the deposit of any and all public
21-13 funds of the State of Texas, and any and all public funds of
21-14 municipal corporations and other political corporations or
21-15 subdivisions of the State of Texas; and such bonds shall be lawful
21-16 and sufficient security for said deposits to the extent of their
21-17 value, when accompanied by all unmatured coupons appurtenant
21-18 thereto.
21-19 SECTION 19. LCMUA may be abolished by a majority vote of the
21-20 qualified voters residing within the voting territory of LCMUA at
21-21 an election held for the purpose of determining whether or not such
21-22 Authority shall be abolished.
21-23 An election shall be ordered by the County Judge of Denton
21-24 County, Texas, whenever a petition for the abolishment of LCMUA
21-25 shall be presented to the County Judge, duly signed by not less
21-26 than a majority of the qualified voters residing within the voting
21-27 territory of LCMUA. Notices of such election shall be published
22-1 and posted in accordance with the TEX. ELEC. CODE ANN. Said County
22-2 Judge shall appoint a presiding judge and as many clerks as
22-3 necessary to assist the election judge for holding the election.
22-4 The ballots for such election shall contain the proposition 'For
22-5 abolishment of Lake Cities Municipal Utility Authority' and
22-6 'Against abolishment of Lake Cities Municipal Utility Authority'.
22-7 Only qualified voters who reside within the voting territory of
22-8 LCMUA shall be qualified to vote at said election.
22-9 If a majority of those voting at such election vote in favor
22-10 of abolishing LCMUA, LCMUA shall be abolished. In the event LCMUA
22-11 shall, at the time of abolition of LCMUA, LCMUA shall be abolished.
22-12 In the event LCMUA shall, at the time of abolition of LCMUA, have
22-13 outstanding bonds or other indebtedness maturing beyond the current
22-14 year in which such abolition occurs, the Commissioners Court of
22-15 Denton County, Texas, shall levy and cause to be collected as
22-16 county taxes are assessed and collected, sufficient taxes on all
22-17 taxable property within operational territories of LCMUA to pay the
22-18 principal and interest on said bonds and other indebtedness when
22-19 due.
22-20 SECTION 20. The accomplishment of the purposes stated in
22-21 this Act is for the benefit of the people of this State and for the
22-22 improvement of their properties and industries, and LCMUA, in
22-23 carrying out the purposes of this Act, will be performing an
22-24 essential public function under the Constitution. LCMUA shall not
22-25 be required to pay any tax or assessment on any project,
22-26 operations, equipment, personal or real property or any part
22-27 thereof, and the bonds issued hereunder and their transfer and the
23-1 income therefrom, including the profits made on the sale thereof,
23-2 shall at all times be free from taxation within this State.
23-3 SECTION 21. Denton County tax assessor and collector may be
23-4 used as a tax assessor and collector and Denton Central Appraisal
23-5 District may be designated as a board of equalization and cause
23-6 taxes to be assessed, valuations to be equalized, and tax rolls to
23-7 be prepared. Absent cooperation with Denton County and Dental
23-8 Central Appraisal District, LCMUA, prior to the sale and delivery
23-9 of LCMUA bonds which are payable wholly in part from ad valorem
23-10 taxes, the Board of Directors shall appoint a tax assessor and
23-11 collector and board of equalization and cause taxes to be assessed,
23-12 evaluations to be equalized, and tax rolls to be prepared. In
23-13 either case, the laws of the State of Texas regarding tax
23-14 assessments, assessors, collectors, board of equalization, tax
23-15 rolls, and levying collections of taxes and delinquent taxes shall
23-16 be applicable to LCMUA.
23-17 SECTION 22. Nothing in this Act shall be interpreted as
23-18 amending or repealing the statutes regarding the priorities of the
23-19 use of water or any Legislation governing water control.
23-20 SECTION 23. If any part or provision of this Act or the
23-21 application thereof to any person or circumstance shall be held to
23-22 be invalid or unconstitutional, the remainder of the Act, and the
23-23 application of such provision to other persons or circumstances,
23-24 shall not be affected thereby and shall remain in full force and
23-25 effect.
23-26 SECTION 24. The Legislature finds that all notice and formal
23-27 bill introductions have been followed in the passage of this Act.
24-1 SECTION 25. The importance of this legislation and the
24-2 crowded condition of the calendars in both houses create an
24-3 emergency and an imperative public necessity that the
24-4 constitutional rule requiring bills to be read on three several
24-5 days in each house be suspended, and this rule is hereby suspended,
24-6 and that this Act take effect and be in force from and after its
24-7 passage, and it is so enacted.