86R7771 BRG-F By: Zaffirini S.B. No. 871 A BILL TO BE ENTITLED AN ACT relating to the creation of the Clear Fork Ranch Municipal Utility District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes. 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 8053 to read as follows: CHAPTER 8053. CLEAR FORK RANCH MUNICIPAL UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8053.0101. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Commission" means the Texas Commission on Environmental Quality. (3) "Director" means a board member. (4) "District" means the Clear Fork Ranch Municipal Utility District. Sec. 8053.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8053.0103. CONFIRMATION AND DIRECTOR ELECTION REQUIRED. The temporary directors shall hold an election to confirm the creation of the district and to elect five permanent directors as provided by Section 49.102, Water Code. Sec. 8053.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8053.0103 until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district. Sec. 8053.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) The district is created to serve a public purpose and benefit. (b) The district is created to accomplish the purposes of: (1) a municipal utility district as provided by general law and Section 59, Article XVI, Texas Constitution; and (2) Section 52, Article III, Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8053.0106. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes contained in Section 2 of the Act enacting 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 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 a tax; or (4) legality or operation. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8053.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8053.0202, directors serve staggered four-year terms. Sec. 8053.0202. TEMPORARY DIRECTORS. (a) On or after September 1, 2019, the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the commission requesting that the commission appoint as temporary directors the five persons named in the petition. The commission shall appoint as temporary directors the five persons named in the petition. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8053.0103; or (2) September 1, 2023. (c) If permanent directors have not been elected under Section 8053.0103 and the terms of the temporary directors have expired, successor temporary directors shall be appointed or reappointed as provided by Subsection (d) to serve terms that expire on the earlier of: (1) the date permanent directors are elected under Section 8053.0103; or (2) the fourth anniversary of the date of the appointment or reappointment. (d) If Subsection (c) applies, the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the commission requesting that the commission appoint as successor temporary directors the five persons named in the petition. The commission shall appoint as successor temporary directors the five persons named in the petition. SUBCHAPTER C. POWERS AND DUTIES Sec. 8053.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8053.0302. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. The district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. Sec. 8053.0303. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8053.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located. (b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project. Sec. 8053.0305. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION. The district shall comply with all applicable requirements of any ordinance or resolution that is adopted under Section 54.016 or 54.0165, Water Code, and that consents to the creation of the district or to the inclusion of land in the district. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8053.0401. ELECTIONS REGARDING TAXES OR BONDS. (a) The district may issue, without an election, bonds and other obligations secured by: (1) revenue other than ad valorem taxes; or (2) contract payments described by Section 8053.0403. (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 an ad valorem tax or issue bonds payable from ad valorem taxes. (c) The district may not issue bonds payable from ad valorem taxes to finance a road project unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose. Sec. 8053.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8053.0401, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code. (b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. Sec. 8053.0403. CONTRACT TAXES. (a) In accordance with Section 49.108, Water Code, the district may impose a tax other than an operation and maintenance tax and use the revenue derived from the tax to make payments under a contract after the provisions of the contract have been approved by a majority of the district voters voting at an election held for that purpose. (b) A contract approved by the district voters may contain a provision stating that the contract may be modified or amended by the board without further voter approval. SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8053.0501. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose. Sec. 8053.0502. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required and in the manner provided by Sections 54.601 and 54.602, Water Code. Sec. 8053.0503. BONDS FOR ROAD PROJECTS. At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district. SECTION 2. The Clear Fork Ranch Municipal Utility District initially includes all the territory contained in the following area: BEING approximately 472.126 acres of land in Caldwell County, Texas, said land being all of the 155.27 acres as described in Tract "A", and all of the 316.856 acres as described in Tract "B". Those individual tracts being described as follows: Tract "A" BEING 155.27 ACRES OF LAND CONSISTING OF A CALLED 35.0 ACRES OF LAND, DESCRIBED AS FOURTH TRACT IN THE W. C. STEFFEY SURVEY, ABSTRACT NUMBER 274 IN CALDWELL COUNTY, TEXAS; AND CONSISTING OF THE REMAINDER OF A CALLED 142.5 ACRES OF LAND, DESCRIBED AS FIFTH TRACT IN THE M. HUNT SURVEY, ABSTRACT NUMBER 137 IN CALDWELL COUNTY, TEXAS; SAID FOURTH TRACT AND FIFTH TRACT, HAVING A COMBINED TOTAL OF 177.5 ACRES, BEING A PORTION OF A 494.8 ACRE TRACT OF LAND CONVEYED IN A DEED TO WILLIAM JANNEY GAMBLE, TRUSTEE OF THE KATIE THOMSON JANNEY REVOCABLE TRUST "A" AND RECORDED IN VOLUME 403, PAGE 671 OF THE DEED RECORDS OF CALDWELL COUNTY, TEXAS (DRCCTX); SAID 155.27 ACRES OF LAND MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING at a 1 1/2-inch iron pipe found in the southwest Right-of-Way (ROW) line of Borchert Loop (County Road 108), being the east corner of a 2.000 acre tract of land in the J. George Survey, Abstract Number 118 in Caldwell County, Texas, described in a deed to Dennis R. & Shalaina T. Walker, recorded in Volume 433, Page 203, DRCCTC, and being the north corner of the remainder of said 177.5 acre Gamble tract; THENCE along the southeast line of said J. George Survey, Abstract Number 118, being also the southeast line of said 2.000 acre Walker tract; same being the northwest line of said M. Hunt Survey, Abstract Number 137 and the northwest line of said 177.5 acre Gamble tract, S59°45'36"W, a distance of 329.74 feet to an iron rod set with a cap marked "TMG" for the north corner and POINT of BEGINNING of the herein described tract of land; THENCE through the interior of said 177.5 acre Gamble tract, the following two (2) courses and distances: 1) S32°37'51"E, a distance of 560.05 to an iron rod set with a cap marked "TMG" for an angle point, and 2) N57°21'07"E, a distance of 320.50 feet to an iron rod set with a cap marked "TMG", being in the southwest ROW of Borchert Loop for an angle point; THENCE with the southwest ROW line of Borchert Loop, being the northeast line of this 155.27 acre tract, S31°41'23"E, a distance of 90.01 feet to an iron rod set with a cap marked "TMG", for an angle point; THENCE continuing through the interior of said 177.5 acre Gamble tract, the following three (3) courses and distances: 3) S57°21'07"W, a distance of 319.02 feet to an iron rod set with a cap marked "TMG" for an angle point, 4) S32°37'51"E, a distance of 1817.85 feet to an iron rod set with a cap marked "TMG" for an angle point, and 5) N57°23'55"E, a distance of 289.15 feet to an iron rod set with a cap marked "TMG", being in the southwest ROW of Borchert Loop for an angle point; THENCE with the southwest ROW line of Borchert Loop, being the northeast line of this 155.27 acre tract, S31°41'23"E, a distance of 90.01 feet to an iron rod set with a cap marked "TMG", for an angle point; THENCE continuing through the interior of said 177.5 acre Gamble tract, the following four (4) courses and distances: 6) S57°23'55"W, a distance of 287.68 feet to an iron rod set with a cap marked "TMG" for an angle point, 7) S32°37'51"E, a distance of 678.17 feet to an iron rod set with a cap marked "TMG" for an angle point, 8) S81°34'47"E, a distance of 52.54 feet to an iron rod set with a cap marked "TMG" for an angle point, and 9) N49°28'18"E, a distance of 239.16 feet to an iron rod set with a cap marked "TMG", being in the southwest ROW of Borchert Loop for an angle point; THENCE with the southwest ROW line of Borchert Loop, being the northeast line of this 155.27 acre tract, S31°41'23"E, a distance of 40.34 feet to a 60d nail found in the top of a wooden post being the north corner of a 99.0 acre tract of land in the J. H. Finch Survey, Abstract Number 108 in Caldwell County, Texas, described as Tract I in a deed to Edgar L. and wife, Dorothy June Vogel, recorded in Volume 8, Page 21, DRCCTC, and being the east corner of the remainder of said 177.5 acre Gamble tract and being the east corner of the herein described tract of land; THENCE with the northwest line of said 99.0 acre tract, being the southeast line of the remainder of said 177.5 acre Gamble tract, S49°28'18"W, a distance of 2216.10 feet to a 1 1/2-inch iron pipe found in the northwest line of said 99.0 acre tract, being the east corner of a 340.331 acre tract of land described in a deed to Nami Ranch, L.L.C. and recorded in Document Number 087087 of the Official Public Records of Real Property for Caldwell County, Texas (OPRRPCCTX), for the south corner of the remainder of said 177.5 acre Gamble tract and being the south corner of the herein described tract of land; THENCE with the northeast line of said 340.331 acre tract, being the southwest line of the remainder of said 177.5 acre Gamble tract, N32°37'49"W, at 3520.81 feet passing a calculated point marking the north corner of said 340.331 acre tract and the southeast corner of a 7.779 acre tract of land described in a deed to Belinda N. Garza and recorded in Document Number 121466, OPRRPCCTX, from said point, a 6" cedar fence corner post bears S57°22'11"W, 1.87 feet; and continuing along the northeast line of said 7.779 acre tract, a total distance of 3662.56 feet to a 1 1/2-inch iron pipe found in the northeast line of said 7.779 acre tract, being along the southeast line of the J. George Survey, Abstract Number 118, at the south corner of a 5.052 acre tract of land described in a deed to Woodmen of the World recorded in Volume 212, Page 545, DRCCTX, for the west corner of the remainder of said 177.5 acre Gamble tract and being the west corner of the herein described tract of land; THENCE along the southeast line of said 5.052 acre tract, being the northwest line of the remainder of said 177.5 acre Gamble tract, N59°43'07"E, a distance of 356.48 feet to a 1/2-inch iron rod found for the east corner of said 5.052 acre tract, being the south corner of a 5.583 acre tract of land described in a deed to Raul & Christine Ybarra and recorded in Volume 639, Page 893, DRCCTX, for an angle point in the northwest line of the remainder of said 177.5 acre Gamble tract and being an angle point in the northwest line of the herein described tract of land; THENCE continuing along the southeast line of said J. George Survey, Abstract Number 118 and the northwest line of said 177.5 acre tract, N59°45'34"E, at a distance of 603.32 feet passing a 1/2-inch iron rod found for the east corner of said 5.583 acre tract, being the south corner of a 5.162 acre tract of land described in a deed to Pamala Francine Hunt and recorded in Volume 565, Page 474, DRCCTX; at a distance of 828.27 feet passing a 1/2-inch iron rod found for the east corner of said 5.162 acre tract, being the south corner of 5.090 acre tract of land described in a deed to Juan Carlos & Ramiro Ruvalcaba and recorded in Volume 306, Page 393, DRCCTX; at a distance of 1068.37 feet passing a 1/2-inch iron rod found for the east corner of said 5.090 acre tract, being the south corner of a 5.028 acre tract of land described in a deed to United Pentecostal Church and recorded in Volume 484, Page 135, DRCCTX; at a distance of 1328.42 feet passing a 1/2-inch iron rod found for the east corner of said 5.028 acre tract, being the south corner of said 2.000 acre Walker tract; and, in all, a total distance of 1564.29 feet to the PLACE of BEGINNING and containing 155.27 acres of land, more or less. Tract "B" BEING 316.856 ACRES OF LAND LYING IN AND BEING SITUATED OUT OF THE J.B. GRAY SURVEY, ABSTRACT 116 AND THE W. HOUSE SURVEY, ABSTRACT 15 IN CALDWELL COUNTY, TEXAS AND BEING ALL OF THAT CERTAIN 283 ACRE TRACT AND 31.3 ACRE TRACT OF LAND CONVEYED TO GLENVOIR FARM AS SECOND TRACT AND THIRD TRACT BY DEED RECORDED IN VOLUME 403, PAGE 671 OFFICIAL RECORDS, CALDWELL COUNTY, TEXAS; SAID 316.856 ACRES BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS AND AS SURVEYED UNDER THE SUPERVISION OF JAMES E. GARON & ASSOCIATES IN JUNE, 2016: BEGINNING at a 2" steel fence found on the easterly line of Borchert Loop for the southwest corner hereof and said 31.3 acre tract and the northwest corner of that certain 59.289 acre tract of land conveyed to Jay S. Cheek and Brenda A. Cheek by deed recorded in Volume 243, Page 830 of said official records; THENCE along Borchert Loop, N 31°43'40" W a distance of 831.80 feet to a 60D nail found in old fence post for the northwest corner of said 31.3 acre tract and a common corner with said 283 acre tract and N 31°07'52" W a distance of 1783.62 feet to a railroad tie fence corner post found for the northwest corner hereof and said 283 acre tract and the southwest corner of that certain 136 acre tract of land conveyed to William R. Clark by deed recorded in Document # 122818 of said official records; THENCE N 58°48'35" E a distance of 3760.23 feet to a "T" post found in rock mound for a northerly, northeast corner hereof and said 283 acre tract and the northwest corner of that certain 57.29 acre tract of land conveyed to Lisa Kay Jolley King and as described by deed recorded in Volume 130, Page 865 of said official records; THENCE S 31°48'55" E a distance of 1102.81 feet to a "T" post found in 2" iron pipe found in rock mound for an ell corner hereof and the southeast corner of said King 57.29 acre tract; THENCE N 59°08'24" E a distance of 2444.46 feet to a 12" fence corner post found on the westerly line of that certain 17.18 acre tract of land conveyed to Kenneth D. Willenberg by deed recorded in Document #2015-001132 of said official records for an ell corner hereof and the southeast corner of that certain 5.257 acre tract of land conveyed to Jose A. Cardenas and Carmen Cardenas by deed recorded in Volume 439, Page 372 of said official records; THENCE S 32°00'32" E a distance of 654.53 feet to a 2" steel fence corner post found on the approximate common line of the J.B. Gray Survey and the W. House Survey for an ell corner hereof and the southwest corner of said Willenberg 17.18 acre tract; THENCE N 59°17'01" E a distance of 262.32 feet along said line to a 2" steel fence corner post found for an ell corner hereof and the northwest corner of that certain 14.6 acre tract of land conveyed to Kenneth D. Willenberg by deed recorded in Document #2015-001132 of said official records; THENCE S 30°57'43" E a distance of 849.75 feet to a 2" steel fence corner post found on the northerly line of that certain 45.76 acre tract of land conveyed to Stephen R. Knox and Bonnie Lee Knox by deed recorded in Volume 184, Page 505 of said official records for the southeast corner hereof and said 283 acre tract and the southwest corner of said Willenberg 14.6 acre tract; THENCE S 58°49'37" W a distance of 2282.66 feet to a cotton gin spindle set at a 3/4" iron pipe found for the northwest corner of said Knox 45.76 acre tract and the northeast corner of the aforesaid Cheek 59.289 acre tract; THENCE S 58°54'26" W a distance of 4196.34 feet to the POINT OF BEGINNING, containing 316.856 acres of land, more or less. SECTION 3. (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 4. (a) If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 8053, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8053.0306 to read as follows: Sec. 8053.0306. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. (b) This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution. SECTION 5. This Act takes effect September 1, 2019.