80R14583 ABC-F

By: King of Zavala H.B. No. 4137

A BILL TO BE ENTITLED

AN ACT

relating to the name, validation, administration, powers, duties, operation, financing, and conversion of the Medina County Fresh Water Supply District No. 1; providing authority to issue bonds.

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 8270 to read as follows: CHAPTER 8270. MEDINA COUNTY FRESH WATER SUPPLY DISTRICT NO. 1 SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8270.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Director" means a member of the board.

(3) "District" means the Medina County Fresh Water Supply District No. 1.

Sec. 8270.002. NATURE OF DISTRICT. (a) The district is a conservation and reclamation district in Medina County created under and essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution.

(b) The district is created to serve a public use and benefit.

Sec. 8270.003. APPLICABILITY OF OTHER LAW. (a) Except as otherwise provided by this chapter, the following laws apply to the district:

(1) Chapters 49, 51, and 54, Water Code; and

(2) Section 52(b)(3), Article III, Texas Constitution.

(b) Except as provided by this chapter, in case of a conflict between Chapters 51 and 54, Water Code, Chapter 54 prevails.

Sec. 8270.004. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the Act creating this chapter form a closure. A mistake made in the field notes or in copying the field notes in the legislative process does not affect:

(1) the organization, existence, or validity of the district;

(2) the right of the district to impose taxes; or

(3) the legality or operation of the board.

Sec. 8270.005. CONFIRMATION ELECTION REQUIRED. (a) If the creation of the district is not confirmed at a confirmation election held on or before September 1, 2011:

(1) the district is dissolved on September 1, 2011, except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of debts shall be transferred to Medina County; and

(C) the organization of the district shall be maintained until all debts are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2013.

(b) If the district is confirmed at the confirmation election, the district is converted to a municipal utility district and its name is changed to the Medina County Municipal Utility District No. 1.

Sec. 8270.006. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to achieve the legislative intent of this chapter. [Sections 8270.007-8270.020 reserved for expansion] SUBCHAPTER A1. TEMPORARY PROVISIONS

Sec. 8270.021. TEMPORARY DIRECTORS. (a) The temporary board consists of:

(1) Kim Fox;

(2) Shelly Perlman;

(3) Johnnie Joe Jungerman;

(4) Patricia Ruth Carney; and

(5) Mike Gahan.

(b) If a temporary director fails to qualify for office, the temporary directors who have qualified shall appoint a person to fill the vacancy. If at any time there are fewer than three qualified temporary directors, the Texas Commission on Environmental Quality shall appoint the necessary number of persons to fill all vacancies on the board.

Sec. 8270.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 49.055, Water Code, the temporary board shall convene the organizational meeting of the district at a location in the district agreeable to a majority of the directors. If a location cannot be agreed upon, the organizational meeting shall be at the Medina County Courthouse.

Sec. 8270.023. CONFIRMATION, CONVERSION, NAME CHANGE, AND INITIAL DIRECTORS' ELECTION. (a) The temporary board shall hold an election:

(1) to confirm the creation of the district;

(2) to approve the conversion of the district to a municipal utility district;

(3) to approve changing the district's name to the Medina County Municipal Utility District No. 1; and

(4) to elect five directors as provided by Section 49.102, Water Code.

(b) Section 41.001, Election Code, does not apply to an election under this section.

(c) If a majority of the votes cast at the election favor the creation of the district, the temporary directors shall declare the district created. If a majority of the votes cast at the election do not favor the creation of the district, the district is not created. The temporary directors shall file a copy of the election results with the Texas Commission on Environmental Quality.

Sec. 8270.024. INITIAL ELECTED DIRECTORS; TERMS. The directors elected under Section 8270.023 shall draw lots to determine which three shall serve until the first regularly scheduled election of directors and which two shall serve until the second regularly scheduled election of directors.

Sec. 8270.025. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2012. [Sections 8270.026-8270.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATION

Sec. 8270.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms.

(c) Elections for directors shall be held as provided by Section 49.103, Water Code.

Sec. 8270.052. ADMINISTRATION. Except as provided by this chapter, the district shall comply with the administrative provisions of Subchapter C, Chapter 51, Water Code. [Sections 8270.053-8270.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES

Sec. 8270.101. GENERAL POWERS AND DUTIES. The district has the rights, powers, privileges, and duties provided by the general laws of this state applicable to municipal utility districts and to water control and improvement districts, including Chapters 49, 51, and 54, Water Code.

Sec. 8270.102. ROAD PROJECTS. To the extent authorized by Section 52, Article III, Texas Constitution, the district may construct, acquire, improve, maintain, or operate macadamized, graveled, or paved roads, or improvements in aid of those roads, inside or outside the district necessary to accomplish the public purpose of the district.

Sec. 8270.103. CONTRACT WITH POLITICAL SUBDIVISION FOR WATER OR SEWER SERVICES. (a) The district may enter into a contract to allow a political subdivision to provide retail water or sewer service in the district. The contract may contain terms the board considers desirable, fair, and advantageous to the district.

(b) The contract may provide that the district will construct or acquire and convey to the political subdivision a water supply or treatment system, a water distribution system, or a sanitary sewage collection or treatment system, as necessary to provide water or sewer service in the district.

(c) The district may use bond proceeds or other available district money to pay for its obligations and for services and facilities provided under the contract.

(d) If the contract requires the district to make payments from taxes other than operation and maintenance taxes, the contract is subject to Section 49.108, Water Code. [Sections 8270.104-8270.150 reserved for expansion] SUBCHAPTER D. BONDS

Sec. 8270.151. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations as provided by Chapters 49, 51, and 54, Water Code, and to finance:

(1) the construction, maintenance, or operation of projects inside or outside the district necessary to accomplish the public purpose of the district under Section 8270.102; or

(2) its contractual obligations under Section 8270.103.

(b) The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, grants, or other district money.

(c) The district may not issue bonds or other obligations secured wholly or partly by ad valorem taxation to finance projects authorized by Section 8270.102 unless the issuance is approved by a vote of a two-thirds majority of district voters voting at an election called for that purpose.

(d) Bonds or other obligations issued or incurred to finance projects authorized by Section 8270.102 may not exceed one-fourth of the assessed value of the real property in the district.

(e) Sections 49.181 and 49.182, Water Code, do not apply to a project undertaken by the district under Section 8270.102 or to bonds issued by the district to finance the project.

SECTION 2. The initial boundaries of the Medina County Fresh Water Supply District No. 1 include approximately 324 acres to wit: Field notes of a 347.38 acre tract of land situated in Medina County, Texas out of the George S. Kelly Survey No. 245, Abstract 583, Medina County and Abstract 2510 Bandera County, the Jesus Gomez Survey No. 126, Abstract 1380, Medina County and Abstract 2502 Bandera County and the Comanche Creek Irrigation Survey No. 125, Abstract 294 Medina County, being part of that tract called 1700 acres and recorded in Volume 75, Page 513 of the Official Public Records of Medina County, Texas and being more particularly described by metes and bounds as follows: Beginning at a ½" iron pin found in the southwest line of State Highways 16 for the northeast corner of this tract and the 1700 acre tract. Thence with the southwest line of State Highway 16 and the northeast line of the1700 acre tract as follows: S 37° 36' 15" E. 493.82 feet to a Texas Department of Transportation (TXDOT) Monument found at an angle point. S 34° 06' 10" E. 166.79 feet to a TXDOT monument found at an angle. S 26° 38' 10" E. 167.15 feet to a TXDOT monument found at an angle. S 23° 09' 02" E. 537.72 feet to a TXDOT monument found at an angle. S 25° 37' 01" E. 209.94 feet to a TXDOT monument found at an angle. S 36° 10' 22" E. 210.07 feet to a TXDOT monument found at an angle. S 38° 41' 34" E. 559.25 feet to a point in the northwest Extra Territorial Jurisdiction line of the City of San Antonio Ordinance# 96548 for the southeast corner of this tract. Thence with the southeast line of this tract cutting across the 1700 acre tract in a southwesterly direction with the northwest line of said Extra Territorial Jurisdiction line and the arc of a curve to the left having a radius of 26,400.0 feet and a length of 4424.98 feet and a chord of S 51° 03' 30" W. 4419.81 feet to a point for the southern most corner of this tract. Thence N 50° 07' 15" W. 3012.29 feet to a point in the northwest County Line of Medina County and the southeast line of Bandera County for the lower west corner of this tract. Thence N 39° 04' 34" E. 1126.44 feet with the northeast line of this tract and the said County Line to a point in the lower north line of the 1700 acre tract. Thence with the lower north line of this tract and the 1700 acre tract as follows: S 89° 51' 14" E. 49.54 feet to an iron pin found at an angle point. S 89° 16' 52" E. 90.06 feet to an iron pin found at an angle point. S 88° 20' 55" E. 87.10 feet to an iron pin found at an angle point. S 89° 23' 29" E. 206.22 feet to an iron pin found at an angle point. S 88° 59' 04" E. 323.17 feet to an iron pin found at an angle point. S 88° 41' 10" E. 285.77 feet to an iron pin found for an interior corner of this tract and the 1700 acre tract. Thence with a west line of this tract and the 1700 acre tract as follows: N 00° 02' 34" E. 135.87 feet to an iron pin found at an angle point. N 00° 10' 57" W. 256.73 feet to an iron pin found at an angle point. N 00° 14' 14" W. 199.02 feet to an iron pin found at an angle point. N 00° 11' 59" W. 300.66 feet to an iron pin found at an angle point. N 00° 36' 22" W. 185.11feet to an iron pin found at an angle point. N 00° 51' 48" W. 62.25 feet to a point in the northwest County line of Medina County and the southeast line of Bandera County for a corner of this tract. Thence N 39° 04' 03" E. 1155.78 feet with said County Line to a point in the north line of the 1700 acre tract for the northwest corner of this tract. Thence with the north line of this tract and the 1700 acre tract as follows: N 89° 44' 48" E. 233.47 feet to an iron pin found at an angle point. S 89° 28' 47" E. 520.65 feet to an iron pin found at an angle point. S 01° 26' 08" W. 301.19 feet to an iron pin found at an angle point. N 89° 54' 40" E. 1221.45 feet to the Place of Beginning and containing 347.38 acres of land, more or less.

SECTION 3. All of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Section 52, Article III, and Section 59, Article XVI, of the Texas Constitution.

SECTION 4. (a) The following are validated and confirmed in all respects:

(1) the creation of the Medina County Fresh Water Supply District No. 1 and all proceedings related to the creation of the district, effective as of the date on which the creation or related proceedings occurred subject to approval by the voters of the district at the confirmation election held under Section 8270.023, Special District Local Laws Code, as added by this Act; and

(2) any act or proceeding of the district, including an election, not excepted by this section and taken not more than three years before the effective date of this Act, effective as of the date on which the act or proceeding occurred.

(b) This section does not apply to:

(1) an act, proceeding, director, other official, bond, or other obligation the validity of which or of whom is the subject of litigation that is pending on the effective date of this Act; or

(2) an act or proceeding that, under a statute of this state or the United States, was a misdemeanor or felony at the time the act or proceeding occurred.

SECTION 5. (a) The 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 under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time.

(d) 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 are fulfilled and accomplished.

SECTION 6. 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, 2007.