By: Eiland H.B. No. 3500
A BILL TO BE ENTITLED
AN ACT
relating to the creation of Galveston County Municipal Utility
District No. 63; providing authority to impose taxes and standby
fees and issue bonds; granting the power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter ___ to read as follows:
CHAPTER ___. GALVESTON COUNTY MUNICIPAL UTILITY DISTRICT
NO. 63.
SUBCHAPTER A. GENERAL PROVISIONS
Sec. ___.001. DEFINITIONS. In this Chapter:
(1) "Board" means the board of directors of the
district.
(2) "City" means the City of Texas City, Texas.
(3) "District" means Galveston County Municipal
Utility District No. 63.
Sec. ___.002. CREATION OF DISTRICT. Galveston County
Municipal Utility District No. 63 is created as a special district
under Section 52, Article III, and Section 59, Article XVI, Texas
Constitution.
Sec. ___.003. DECLARATION OF INTENT. The creation of the
district is essential to accomplish the purposes of Section 52,
Article III, and Section 59, Article XVI, Texas Constitution, and
other public purposes stated in this Act.
Sec. ___.004. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of territory described by Section 2
of the Act creating this chapter.
(b) The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not in any way affect the
district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. ___.005. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this Chapter, Chapters 49 and 54, Water Code,
apply to the district.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this Act.
(c) Chapter 1471, Government Code, does not apply to the
district.
Sec. ____.006. CONSTRUCTION OF ACT. (a) This Act shall be
liberally construed in conformity with the findings and purposes
set forth in this Act.
(b) If any provision of the general law conflicts with this
Act, this Act prevails.
(c) If any provision of the general law conflicts with
Chapters 49 and 54, Water Code, Chapters 49 and 54, Water Code
prevail.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. ___.051. BOARD OF DIRECTORS; TERMS. (a) The district
is governed by a board of five directors.
(b) Except for the initial directors, each director shall be
elected and shall serve for the term of office provided for
directors under Chapter 49, Water Code, and until his successor is
elected and has qualified.
(c) Except for the initial directors, each director shall
qualify to serve as director in the manner provided by Chapter 49,
Water Code.
Sec. ___.052. INITIAL DIRECTORS. (a) The initial board
consists of the following persons:
(1) ______________________;
(2) ______________________;
(3) ______________________;
(4) ______________________; and
(5) ______________________.
(b) Of the initial directors, the terms of the first three
directors named in Subsection (a) expire on the uniform election
date in May 2007, and the terms of the last two directors named in
Subsection (a) expire on the uniform election date in May 2009.
(c) On the uniform election date in May 2007, the board
shall hold an election for the directors whose terms expire on such
date. On the uniform election date in May 2009, the board shall
hold an election for the directors whose terms expire on such date.
(d) This section expires September 1, 2009.
Sec. ___.053. CONFIRMATION ELECTION. The board of
directors shall hold an election to confirm the creation of the
district as provided by Section 49.102, Water Code.
SUBCHAPTER C. POWERS AND DUTIES
Sec. ___.101. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) All land and other property included in the district will
benefit from the improvements and services to be provided by the
district under powers conferred by Sections 52, Article III, and
Section 59, Article XVI, Texas Constitution, and other powers
granted under this Act.
(b) The district is created for the following purposes:
(1) the purposes of a municipal utility district as
provided pursuant to Section 54.012, Water Code;
(2) the purposes of road utility districts created
pursuant to Section 52, Article III, Texas Constitution, and
operating pursuant to Chapter 441, Transportation Code, including
the purpose of constructing, acquiring, improving, maintaining and
operating road and road facilities as defined in Chapter 441,
Transportation Code;
(3) the purposes of navigation districts created
pursuant to Section 59, Article XVI, Texas Constitution, and
operating pursuant to Chapters 60 and 62, Water Code; and
(4) the purchase, construction, acquisition,
ownership, improvement, maintenance and operation of the public
works and public improvements authorized for a tax increment
reinvestment zone operating pursuant to Chapter 311, Tax Code, and
a municipal management district operating pursuant to Chapter 375,
Local Government Code.
Sec. ___.102. POWERS OF DISTRICT. (a) The district shall
have the functions, powers, authority, rights and duties which will
permit accomplishment of the purposes for which it was created.
(b) The district shall have all of the rights, powers,
privileges, authority and functions, specifically including but
not limited to those relating to the levying of taxes, issuance of
bonds, imposition of standby fees, and exercise of the power of
eminent domain, conferred by the general laws of this state
applicable to municipal utility districts created under Article
XVI, Section 59, of the Texas Constitution, including those
conferred by Chapters 49 and 54, Water Code.
Sec. ___.103. SPECIFIC ROAD POWERS OF DISTRICT. (a) The
district may purchase, construct, acquire, own, operate, maintain,
improve or extend inside and outside its boundaries roads and road
facilities as defined in Chapter 441, Transportation Code, as
authorized by Section 52, Article III, of the Texas Constitution.
(b) In accordance with Article III, Section 52, of the Texas
Constitution, the district has the power and authority to issue
bonds, notes, and other obligations or otherwise lend its credit
and levy and collect taxes to pay the interest thereon and provide a
sinking fund for the redemption thereof for the construction,
purchase, maintenance and operation of roads and road facilities.
The total amount of bonds issued for such purpose may not exceed
one-fourth of the assessed market value of real property of the
district as determined by the chief appraiser of the appraisal
district that appraises property for the district.
(c) The roads and road facilities may include drainage,
landscaping and pedestrian improvements and lights, signs, or
signals that are incidental thereto and their construction,
maintenance, or operation.
(d) The roads and road facilities authorized by this section
must meet all applicable construction standards, zoning and
subdivision requirements, and regulatory ordinances of the city.
(e) On completion of a road or road facility authorized by
this section, the district, with the consent of the city, may convey
that road or road facility to the city, provided the conveyance is
free of all indebtedness of the district. If the city becomes the
owner of a road or road facility, the city is responsible for all
future maintenance and upkeep, and the district has no further
responsibility for the road or road facility or its maintenance or
upkeep, unless otherwise agreed to by the district and the city.
(f) A district may contract with a state agency, political
subdivision, or corporation created under Chapter 431,
Transportation Code, for a joint road or road facility. The
district may issue bonds to pay all or part of the costs of the road
or road facility and any other payments required pursuant to the
contract. A contract may be a contract under Section 49.108, Water
Code. The contract may:
(1) provide for joint payment of the costs of the road
or road facility; and
(2) require the state agency, political subdivision,
or corporation to design, construct, or improve a road or road
facility as provided by the contract.
(g) The district may agree to:
(1) reimburse a private person for money spent to
construct a road or road facility that has been or will be dedicated
or otherwise transferred to public use; or
(2) purchase a road or road facility constructed by a
private person.
(h) The amount paid for the reimbursement or purchase of a
road or road facility:
(1) may include all construction costs, including
engineering, legal, financing, and other expenses incident to the
construction; or
(2) may be at a price not to exceed the replacement
cost of the road or road facility as determined by the board; and
(3) may be paid with proceeds from the sale of the
district's bonds or from any other money available to the district.
(i) The district may enter into an agreement to use the
proceeds of a subsequent bond sale for reimbursing all construction
costs, engineering and other expenses, and financing costs incident
to construction or acquisition of a road or an interest in a road to
a private person who constructs or acquires a road or road facility
that benefits the district pursuant to the agreement. The
agreement may provide the terms and conditions under which the road
or road facility will be dedicated or transferred for the benefit of
the public and to pay or reimburse the cost of constructing or
acquiring the road.
Sec. ___.104. SPECIFIC NAVIGATION POWERS OF DISTRICT. The
district may purchase, construct, acquire, own, operate, maintain,
improve or extend inside and outside its boundaries canals,
waterways, bulkheads, docks, and any other improvements or
facilities necessary or convenient to accomplish the navigation
purposes of the district authorized by Section 59, Article XVI, of
the Texas Constitution.
Sec. ___.106. TAX INCREMENT REINVESTMENT ZONE. (a) All or
any part of the area of the district is eligible, regardless of
other statutory criteria, to be included in a tax increment
reinvestment zone created pursuant to Chapter 311, Tax Code.
(b) The district may enter into a contract with the board of
directors of a reinvestment zone created pursuant to Chapter 311,
Tax Code, and the governing body of the city for the district to
manage or assist in managing the reinvestment zone or implement or
assist in implementing the reinvestment zone's project plan and
reinvestment zone financing plan for the term of the contract in the
same manner as a local government corporation pursuant to Section
311.010(f). The contract may provide that the district shall issue
bonds, notes or other obligations and pledge the contract revenues
to the payment thereof. The district may issue bonds payable in
whole or in part from the revenue of the contract to pay for the
implementation of the reinvestment zone's project plan and
reinvestment zone financing plan. Such bonds and the projects
financed by the bonds are not subject to Sections 49.181 and 49.182,
Water Code.
Sec. ___.107. EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain in accordance with Section
49.222, Water Code.
(b) The district shall obtain the written consent of the
city prior to exercising its power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. ___.151. ELECTIONS REGARDING TAXES OR BONDS. (b) The
district may issue bonds, notes, and other obligations secured by
revenues or contract payments from any lawful sources other than ad
valorem taxation without an election.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose a maintenance tax or issue bonds
payable from ad valorem taxes.
(c) The board may include more than one purpose in a single
proposition at an election.
(d) The district may issue bonds, notes, and other
obligations to finance roads and road facilities under Section
52(b)(3), Article III, of the Texas Constitution, secured in whole
or in part by ad valorem taxation and impose ad valorem taxes to pay
the principal of and interest on those obligations and provide a
sinking fund for the redemption thereof only if the issuance is
approved by a two-thirds majority of the voters of the district
voting at an election called and held for that purpose.
Sec. ___.152. AD VALOREM TAX. (a) If authorized at an
election held in accordance with Section ___.151, the district may
impose an annual ad valorem tax on taxable property in the district
for the acquisition, construction, financing, maintenance and
operation of the district and the improvements constructed or
acquired by the district or for the provision of services.
(b) The board shall determine the tax rate.
SUBCHAPTER E. BONDS OR OTHER OBLIGATIONS
Sec. ___.201. OBLIGATIONS. (a) The district may issue
bonds, notes, or other obligations payable in whole or in part from
ad valorem taxes, impact fees, revenue, grants, or other money of
the district, or any combination of those sources of money, to pay
for any authorized purpose of the district.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
(c) At the time bonds payable in whole or in part from ad
valorem taxes are issued, the board shall levy a continuing direct
annual ad valorem tax for each year while all or part of the bonds
are outstanding on all taxable property within the district in
sufficient amount to pay the interest on the bonds as it becomes due
and to create a sinking fund for the payment of the principal of the
bonds when due or the redemption price at any earlier required
redemption date and to pay the expenses of assessing and collecting
taxes.
Sec. ___.202. AUTHORITY OF TEXAS COMMISSION ON
ENVIRONMENTAL QUALITY OVER ISSUANCE OF DISTRICT BONDS.
(a) Sections 49.181 and 49.182, Water Code, apply to all water,
wastewater, drainage and recreational facility projects of the
district and bonds issued therefor.
(b) Section 49.181, Water Code, applies to all road and road
facility projects and navigation projects and bonds issued
therefor; however, the review of the Texas Commission on
Environmental Quality of such projects shall be limited to the
financial feasibility of such projects and bonds, and shall not
include the review or approval of the design and construction of
such projects or the engineering feasibility of such projects, and
the requirements of written applications for investigation of
feasibility shall be adjusted accordingly.
(c) Section 49.182, Water Code, does not apply to any road
and road facility projects and navigation projects and bonds issued
therefor.
(d) Projects and bonds of the district are not subject to
the review and approval of the Texas Transportation Commission or
the rules promulgated by the Texas Transportation Commission.
(e) To the extent that the district issues bonds secured
solely by revenues provided under a contract described in Section
___.104(b), Sections 49.181, 49.182, and 49.4645, Water Code, shall
not apply to the issuance of such bonds and shall not restrict the
types of facilities or improvements that may be financed with such
bonds.
SECTION 2. Galveston County Municipal Utility District No.
63 initially includes all the territory contained in the following
area:
TRACT 1
Description of 249.1201 acres of land being part of
Subdivisions A, E, F, C, and L, of the KOHFELDTS RESUBDIVISION
according to the map or plat thereof recorded in Volume 10, Page 35
of the Deed Records of Galveston County, Texas. Said 249.1201 being
part of the tracts of land conveyed by deed dated March 22, 2004
from Kohfeldt family Limited Partnership, to Texas Gulf Coast
Holdings I LP., as recorded in Galveston County Clerk's File No. GAC
2004020691, of the Deed Records of Galveston County, Texas, and
being all of the property conveyed by deed dated December 12, 2003
from Presbyterian Children's Homes and Services to Texas Gulf Coast
Holdings I LP., as recorded in Galveston County Clerk's File No. GAC
2003089572, of the Deed Records of Galveston County, Texas. Said
249.1201 acres being situated in the Thomas W. Johnson Survey and
the James Smith Survey, Galveston County, Texas, and being more
particularly described by metes and bounds as follows; (Bearings
based plat calls of said Kohfeldts Resubdivision)
COMMENCING at a point for corner at the intersection of the
north line of F.M. 1764 with the northeasterly line of the G.H. & H.
R.R. railroad right-of-way adjacent to State Highway 3;
THENCE North 39° 12' 00" West, along the said northeasterly
line of the G.H. & H. R.R. railroad right-of-way, for a distance of
557.48 feet to a to a point for corner;
THENCE North, along the west line of said Haggard Survey, for
a distance of 3,650.62 feet to a to a point for corner in the north
line of 25th Avenue (R.O.W. 120') (also known as Loop 197);
THENCE East, along the north line of said 25th Avenue, for a
distance of 5373.41 feet to a to a point for corner at the
intersection of the north line of 25th Avenue and the east line of a
called 8.23 acre tract (Tract 2) conveyed by deed dated August 17,
1971 to the City of Texas City, Texas. Said point for corner being
the southwest corner and PLACE of BEGINNING of the herein described
tract;
THENCE along the east line of said 8.23 acres with a curve to
the right having a radius of 625.80 feet, a central angle of 29° 29'
43", a chord bearing and distance of N 16° 40' 28" E, 318.61 feet, an
arc length of 322.16 feet to a to a point for reverse curve;
THENCE continuing along the east line of said 8.23 acres
along said curve to the left having a radius of 320.00 feet, a
central angle of 68° 43' 28", a chord bearing and distance of N 02°
56' 25" W, 361.23 feet, an arc length of 383.83 feet to a to the
point of tangent;
THENCE North 37° 08' 45" West, continuing along the east line
of said 8.23 acres for a distance of 2,306.59 feet to a to a point
for corner in the south line of called 190.6 acre tract (Golf
Course) conveyed by deed dated August 17, 1971 to the City of Texas
City, Texas;
THENCE in a easterly direction along the perimeter of the
190.6 acre tract (Golf Course), the following calls;
North 87° 28' 47" East, for a distance of 30.11 feet to a to a
point for corner;
South 36° 30' 23" East, for a distance of 49.19 feet to a to a
point for corner;
North 87° 28' 47" East, for a distance of 54.39 feet to a to a
point for corner;
North 85° 48' 20" East, for a distance of 1,121.18 feet to a to
a point for corner;
North 23° 36' 58" West, for a distance of 280.94 feet to a to a
point for corner;
North 81° 28' 44" East, for a distance of 1,708.56 feet to a to
a point for corner;
South 68° 58' 23" East, for a distance of 735.29 feet to a to a
point for corner;
North 68° 34' 30" East, for a distance of 533.76 feet to a to a
point for corner;
North 60° 30' 34" East, for a distance of 466.76 feet to a to a
point for corner in the west line of a 100' Texas & New Orleans Rail
Road right-of-way;
THENCE South 11° 37' 17" East, along the west line of said 100'
Texas & New Orleans Rail Road right-of-way, for a distance of
2,151.34 feet to a to a to a point for corner;
THENCE West, for a distance of 308.27 feet to a to a point for
corner;
THENCE South, for a distance of 1,095.00 feet to a to a point
for corner in the north line of said 25th Avenue (also known as Loop
197);
THENCE West along the north line of said 25th Avenue (also
known as Loop 197), for a distance of 3,207.79 feet to the PLACE OF
BEGINNING of herein described tract of land and containing within
these calls 10,851,671 square feet or 249.1201 acres of land.
TRACT 2
Description of 9.7801 acres of land being part of
Subdivisions E, and F of the KOHFELDTS RESUBDIVISION according to
the map or plat thereof recorded in Volume 10, Page 35 of the Deed
Records of Galveston County, Texas. Said 9.7801acres being part of
the tracts of land conveyed by deed dated March 22, 2004 from
Kohfeldt family Limited Partnership, to Texas Gulf Coast Holdings I
LP., as recorded in Galveston County Clerk's File No. GAC
2004020691, of the Deed Records of Galveston County, Texas. Said
9.7801 acres being situated in the Thomas W. Johnson Survey,
Galveston County, Texas, and being more particularly described by
metes and bounds as follows; (Bearings based plat calls of said
Kohfeldts Resubdivision)
COMMENCING at a point for corner at the intersection of the
north line of F.M. 1764 with the northeasterly line of the G.H. & H.
R.R. railroad right-of-way adjacent to State Highway 3;
THENCE North 39° 12' 00" West, along the said northeasterly
line of the G.H. & H. R.R. railroad right-of-way, for a distance of
557.48 feet to a to a point for corner;
THENCE North, along the west line of said Haggard Survey, for
a distance of 3,650.62 feet to a to a point for corner in the north
line of 25th Avenue (R.O.W. 120') (also known as Loop 197);
THENCE East, along the north line of said 25th Avenue, for a
distance of 5,253.36 feet to a to a point for corner at the
intersection of the north line of 25th Avenue and the west line of a
called 8.23 acre tract (Tract 2) conveyed by deed dated August 17,
1971 to the City of Texas City, Texas;
THENCE along the west line of said 8.23 acres with a curve to
the right having a radius of 745.80 feet, a central angle of 29° 48'
20", a chord bearing and distance of N 16° 31' 10" E, 383.60 feet, an
arc length of 387.96 feet to a to a point for reverse curve;
THENCE continuing along the west line of said 8.23 acres
along said curve to the left having a radius of 200.00 feet, a
central angle of 68° 43' 28", a chord bearing and distance of N 02
56' 25" W, 225.78 feet, an arc length of 239.90 feet to a to the
point of tangent;
THENCE North 37° 08' 45" West, continuing along the west line
of said 8.23 acres for a distance of 595.32 feet to the southeast
corner and PLACE of BEGINNING of the herein described tract;
THENCE in a northwesterly direction along the perimeter of
the said 190.6 acre tract (Golf Course), the following calls;
North 69° 32' 47" West, for a distance of 865.01 feet to a to a
point for corner;
North 14° 17' 14" West, for a distance of 832.79 feet to a to a
point for corner;
North 37° 08' 45" West, for a distance of 180.00 feet to a to a
point for corner;
North 52° 51' 15" East, for a distance of 140.00 feet to a to a
point for the most westerly northwest corner of said 8.23 acre
tract;
THENCE South 37° 08' 45" East, along the west line of said 8.23
acres for a distance of 1,677.74 feet to the PLACE OF BEGINNING of
herein described tract of land and containing within these calls
426,021 square feet or 9.7801 acres of land.
SECTION 3. The legislature finds that: (1) proper and
legal notice of the intention to introduce this Act, setting forth
the general substance of this Act, has been published as provided by
law, and the notice and a copy of this Act have been furnished to all
persons, agencies, officials, or entities to which they are
required to be furnished by the constitution and laws of this state,
including the governor, who has submitted the notice and Act to the
Texas Commission on Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 4. 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, 2005.