HomeMy WebLinkAbout1989
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CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8200
OFFICE OF THE EXECUTIVE DIRECTOR OF UTILITIES
MEMORANDUM i
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- 70; FTLEt Upper Trinity Regional Water District
f PROM; R, E, Nelson, Executive Director of Utilities
DATE, December 8, 1989
REr Board of Directors Meeting of December 7, 1989
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1, Little Elm Project
As Construction should start in the spring of 1990.
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I B, Will expand existing 100,000 gpd (really only 80,000 gpd) to al
200,000 gpd.
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{ C, Colt $B'0,0000
? D, Design-16f; a fixed facility and an option to use the retired f
colony wastewater treatment plant,
E, Board authorized General Manager to assist Little Elm officials I
to get buffor easements around the plant,
F, policy position' for regional water/wastewater utilizing portion
of member Cities, Approved,
G, "COntraot" rnember agreement, Some last minute changes have baen
received from various cities, and such have been incorporated,
N, Denton's City Attorney has not finalized approval of original
draft contract, and of course, has not seen the recent changes, I
approval of contract workingg passed, Y abstained since Denton
I;l y Attorney has not authorized,
1, Motion establishing that X111 contracts approved by
contract cities should be returned to the Board for acceptance
and authorization of President to sign the contract for the
Up"t, Trinity Regional Water District
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UTRWD Board Meeting
Page 2
F. Motion to accept contracts of:
11 Pilot point
2. Highland village
3. Ponder
Approved, 1 abstained.
G. Approved policy for disburting district funds. Made change in
draft requiring all expenditures requiring 2 signatures.
II. Little Elm
A. Reviewed policies identifiers at Upper Trinity Regional Water
District Board Retreat
1. Water conservation plan
20 Interest duringq construction
31 Rate coordination
C Little Elm supplemental engineering
6, Management of Denton plant facilities
6. Return on investment j
7. Service to customer
4 8. Metering
90~ Multipple delivery points
Liability insurance
f 11. Consultant selection
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12. Pra Oct fund
13, Public service program
B. Bills
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1. Espey Huston 6 Associates 1;6,480.71 S.E. Denton w4JTP
2. Directors Invoice (includes 69697.32
$600 office expense)
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3. Telephone (and installing) 262677
A, Printing 276.00 i
6. Alan Plummer, add'1 copies 200440
6. Alan Plummer, engineering 30007.20 - final
7. Travel $1690 '
8. Stationary 62000 f
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"rs Eo Nelson, xecu ve rec or
Department of Utilities
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CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, 1'EXAS 78201 /TELEPHONE (8177) 688,8200
OFFICE OF THE EXECU~ TIVE DIRECTOR OF UTILITIES
MEMORA"UM
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DATS April 18, 1989
Tot Lloyd Harrel]., City Manager
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F'ROMI R. E. Nelson, Exec. Director of Utilities
REs Legislation Upper Trinity Municipal Water
Agency j
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HB 3112, which is the legislation authorizing creation
of the Upper Trinity Regional Water District, was
reported out of sub-committee to the furl Natuval I
f Resources rommittea on Monday, the 17th,
Ray Hutahison had been at the Committee hearing to
provide information on the bill- which received
favorable commentn. Will keep you posted on when this
bill, will be heard before the full Natural Resources
l Committee.
The Senate Bill, relating to the creation of the Upper
Trinity , Ragional Water District is scheduled for
appearance before the Senate Committee next Wednesday,
the 776th, at 2100 pm.
Rerpeotfu ]y,
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Department of UtilitiegDireotor
gor
oaf Ham, David -Tullne, 8rn1,e- Marian, Howard.
UTMWA,LEd
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i CITY of DENTON, TEXAS MUNICIPAL BUILDINQ I DENTON, TEXAS 76201 TELEPHONE (817) 666.8200
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OFFICE OF THE EXECUTIVE DIRECTOR Or UTILITIES j
MEMORANDUM
nAmEi February 10, 1989
TO: LLOYD HARRELL, CITY 14ANAGER
10 FROMI R. R, Nelson, Executive Director of Utilities
RBi Revisions to Upper Trinity Legislation
{ Requested by Denton t
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on January 170 1989, the Council approved legislation F'
for the Upper Trinity Regional Wuter District based on
certain conditions. Attached is the final draft of the
legislation, The Council oonoerns and requests were
J addressed as followst
council Rea icemen
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(1) Denton requested that a specific description of the
rules governing the system of weighted votes be included '
in the document, rather than permitting this system to
be designed by the Board of Directors of the District,
R.eSponse
section 5(o) was amended and now includes the Counoil'a
recommended system for weighted voting.
Council Reaulrement
(2) Denton specifically requested that Board members
receive no salary compensation for their service on the
Board.
Response
i
section 5(o) lines 29-33 as amended prohibit Board
members from receiving compensation for their service as
E
Hoard members; however, Board members are entitled to be
reimbursed for actual expenses incurred on behalf of the
district.
~E3~ICP.T~l~ 'I"rJ ,7Up.r,~'~'"5C' :~LF2V~CL
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council Recommendation
(1) Denton recommended, but wi,trt some reservation, that
elected officials not be prohibited to serve on the
Board.
Response
The Steering Committee elected to maintain the
prohibition against elected officials serving on the
Board as explained in Section 5, lines 8-25.
Council Recommendation
{ (2) Denton recommended that the Board of Directors
appoint the "At-Large" board member, rather than j
specifying that the county appoint said member.
Response
The Steering Committee compromised on the point and
{ amended section 5(b) lines 28-33 to provide for the
appointment of the "At;Large board member" by the county j
I of 'Denton 'from a list of nominees submitted by the Hoard
I of Directors.
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Hoard Recommandat.ion
G ~
Denton recommended that the qualifications of a Board
member be detailed in the legislation.
Response
Section 5(e? lines 24-29 as amended describe the basic 1
qualifications for Board membership.
Re ectfu Jay
R. E, Nelson, P.E.
Executivo Director of Utilities
gor
Attachmenti Final Draft of Legislation s
UTMWD
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1
r w:pa f~ IN,1L
i 2 A BILL TO BE ENTITLED
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4 AN ACT
5 relating to the oreation, administration, and Powers, including
6 the power of eminent domain subject to limitations, and to the
7 duties, operations, and financing of the Upper Trinity Regional
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e Water District, and to the creation therein of subdistriota
9 with the power to levy and collect ad valorem taxes within the
10 subdistiictar and containing other matters related thereto.
11 BE IT FRAMED BY THE LEOIBLATUBT OF THE STATE CF TFRA8i
12 SECTION 1. Purpose. It is the purpose and Intent of
i 13 this sot to establish a mechanism that can, provide on on
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14 orderly basis for the waterf wastewatar, solid waste, and
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15 liquid waste needs of Denton County and the entities that may
16 be served by the authority heroin' crested,- To accomplish this
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17 purpos►f a conservation district, without taxing power, is
10 created, with the power included to create subdiatriets having
f 19 the power of taxation, subject to limitatlons, all for the
f 20 'purpose of providing for such services on a coordinated basis
j 21 that is consistent with the regionslisstion dbjegtivaa to be
1 22 satisfied by th• creation of the authority.
23 BECTIOW 26 Deiinitione, In this actt
24 (a) "district" means upper Trinity 8egional Water
25 District created in section 4 of this act and any other public
24 body at any tine succeeding to the proparty, principal rights,
27, powermr and obligations of said Upper Trinity Aegienal Water
26 District,
29 Ib) "b4aia service 'area" weans the geographic area
30 contained ►ilhin thr oorporats liaite .1 all participating
31 members, 4,il contrast members, and all cuatowere and such areas
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37 so are served by said members and customers,
33 (e) "board" means the governing board of directors of
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j 1 the district,
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2 (d) "contract somber" or "contrsetfnq member" means one
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f 3 or more, as the came may be, of the governmental cntlties which
4 provide retail utility service within its boundaries, that
5 contract with the district within two (2) years from the
6 effective date of this act to preserve the option to become a
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7 participant within 10 years from the effective date of this act
B and agree to pay an annual pro rate share of the administrative
9 and planning costs of the district which are unrelated to
10 capital projects to be financed from time to time by the
11 district, provided, however, that such share shall never e8oeed
12 for any contract member fifty cents per capita unless otherwise
13 agreed to by at least aventy-five percent of the controot
14 members having, aolleatively, at least seventy-tive percent of
` 15 the population represented by all the contract members,
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16 (e) "nounty" means Denton County, Tetras,
17 (f) '"customer" mean$ any wholesale user of the water or
j 10 wastewater services provided by the district which user j
19 provider 'retail utility service within the boundaries of said
20 user, j
{ 21 (g) "participant" or "participating member" beans one or
22 more, as the case may be, of the governmental entities which
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23 provides retail utility service within its boundaries that j
24 contract with the district for the construction of and payment
23 for the water and/or wastewater projects to be financed from
26 time to time by tits district,
27 (h) "service area" means that f
geographic area contained
26 within the boundaries of the district.
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29 (1) "etotom swane the stets of Toxaa,
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II 30 (j) "rubdirtrict" wand one or more of the subdiRt,•icts Ij
1 31 authorised to be crated under Mart 11 of this Act, I
J2 IrCPION 14gialatiVa rinds s, (a) it is hereby i
33 found by the legi3 fature that the creation and establishment of
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1 r'.u.r.fu.ry
1 the d!►Etlak and t
2 he creation and setabl
Within the district are lehment Of 3 essential rubdi►triot.
4 purpc•ej of Astlcle XV11 $action $9~ of thearoompllshment
o! the
(b) It is hereb Texas Con►titu
s the lend and Y found by thk, all
other 1e9ialrture that all
6 Propa tp lnolud•d in of
district and in the the boundaries of the
7 beneli b~und#riea of f
tted by the 1NproVelA a subdistrict
8 ante Wl11 be
be Provided ' woke, and Projects that
9 by the dfsttf are ro
Powers conferred on t ct and by subdistrict$
10 he dlrlriot Pursuant to the
that the district i and subdistrict' b
t'
11 benef!! and • created y this Act,
o serve
any subdletriat oreat~d w!1 public urr and
22 Will
l3 be for a public Purpora, will serve a a public use and
(c) The 1e91814turo r
~ i 1~ t" Peo1ltag1lY Linde ~
requirements of Article old declares
1S 89(0), of th kVt, 8eakion that
the rsxas Constitution, to t d9{d) end saetlon
16 have been met and he extent
i raeompllrhad aPplloablef
17 and that all in due course,
19 nokloer required O and order
have been given, that to be g1Vrn rela ttinime
r l9 411 aPPravels rr g to this act
P4rruant thereto have barn qulred to be
obtained
20 her t obleinedr and ,
ll he authority and that
21 Poker to the_logtalaturs
i enact this rats
22 PAAr r
1 23 THE' bletA1CT
II 31CMU q,
S 2e reclamation on. (a) A
district haviaq the eorir'rvetion and
26 hereby created and boundaries
eh411 be Prescribed herein is
26 Water bletriot, known a• the Upper Trinit
2y Y Asgional
(b) The dirtria!
28 district under 1s a canservation
Axtiale and xealraatlan
2i Canstitutic" XV1r $•ction 6A
r and !s s of the texas
20 l+olltia graver»se4trl
•bd a p4litias1 subdivision ~~+naYr body aorpore!• and
31 {a} of the 8t4te,
'fie baundariar o! 04 district Are
32 the AulY rrtebliih,nd aoteralneur
33 the end urletlnq boundaries With
entire incorporated of the c
"Olilr county plot
of any 000tr4ot meanber ox
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I participating nember, a portion of whoa Incorporated limits in
2 partially Within the corporate limits of the county a$ such
3 boundaries existed on the effective date of this act,
4 (d) An election confirming the oreeticn of the district
5 is not required,
6 SECTION 6, Management of_Dlstriat, The district shall
7 be governed by a board of directors consisting of persons who
a are residents of the dietrieti provided, howWerr that no
9 member of the board of directors shall be an elected official
10 of any governmental entity that has the authority to appoint a
11 member of the board, The terms of office shall be four (4)
( 12 years, Members of the board shall be appointed by the
+ 13 governing bodies of the participants and the contract bombers
14 in the manner set forth herein, The members of the board are
15 subject to removal with or without cause by duly adopted Motion
16 of the governing body of the entity that originally appointed
17 such member, The board shall have complete authority over Elie
IS management and affairs of the district under this aot,
19 (b), The initial board shall consist of the
persona who
20 served as the initial board of direotc,rs of the Upper Trinity
21 Municipal Water AuthOrityr Ina., a nonprofit corporation
22 organised under the laws of the state of foxes and thws
23 persons who are appointed by those entities that become
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participating senbere or contract members within two years of
26 the effective data of this act, Each such participating member
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26 at contract member shall appoint one member to the board and
27 the county shall appoint one member to the beardt pkovidedr
26 however, that the county may appoint ow additional ***bar to
29 the board It the board detervidea that much appoictrant is in
ao the beet intbkests of the distrietr and provided, further, that
31 the board >member or members to be appointed by the oonnty shall
32 be eeleoted from a list of nominees submitted to the county by
33 the board, Those entities that contract with the district
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I after two years from the effective date of this act shall be
2 entitled to representation on the board only pursuant to the
3 rules and proosdures established by the board for the admission
4 of board members as such rules and proosdures may from time to
E S tine be amended,
6 (o) Membsrs of the board Who are appointed by the
7 participating members shall be entitled to vote on all natters
a before the board, including all II
Projects to be considered by 1
9 the board in all service areas of the district, regardless of
30 Whether such participant is participating in such project,
11 Members of the board who are appointed by contract members
12 which are not participating members shall be entitled to one
13 vote on all matters before the board except those matters that
I 14 require a weighted vote. Votes concerning authorisation of and
15 financial Commitments for capital
f projects shall be determined
16 as provided in this subsection (o). Raab participant that is
17 receiving or that ham contracted to receive service or
18 capacity, including that service or capacity to be received as
19 a result of the capital project than under consideration, shall
2D hays one vote for each roux nlllion gallons per day, or portion
21 thereof, of service or ospaoity for which such participant has
22 contracted with the district, The four alllJon gallons r
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23 day, or
portion
thereof, referenced in this subsection (c)
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24 shall be determined by taking into account any water treatment
i 25 plant capacity in which such " bear is participating, any
26 wastewater treatment plant capacity of the district in which
27 such member to participating or any raw water supply for which
28 such swdeer his conteacted with the district orany combination
29 of the foregoing. Additionally, each participating member with
30 a population of $0,000 or greater mw determined by the coat
i 31 recent federal census shall be entitled to one axtra vats which
32 may be cast on these %attere ro"iriny a weighted vote,
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33 particfpxtion in capital projects fIK%b"4 by the district
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t ( I through the issuance of special facility bonds shall entitled
E 2 such entity to be classified as a participant, but shall not
k a entitle such entity to receive any credit toward the four
i 4 million gallons per day of service or capacity standard
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5 established in this subsection (a),
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6 (d) Except as provldad herein, the initial board shall
7 serve staggered terms in accordance with the procedures to be
a adopted by the initial board, provided that no initial board
9 member shall be appointed for a tern In excess of four years,
10 Theroaftl' ,soh board member shall be appointed to a four year
11 term, Maiwvrs of the board may serve consecutive terns, The
12 members of the board that served on the board of direotorr of
" 11 the Upper Trinity Municipal Water Authority, Inc, shall have
14 the rights and privileges as members of the board appointed bye
15 participating memboroi provided, however, that such members
16 shall not bs entitled to a weighted vote on any natter coming
17 before the board and shall be entitled t,) vote as a
19 partioipatinq member without the right to a weighted vote, The
I 19 boArdnemb*rs that served on the board of direotorr of the Upper
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20 Trinity Muhicipal Water Authority, Ilia, shall serve an ~hitial
{ 21 term of two years from the effective data of this act,
I i 22 Thereafter, such potions are eligible to ba appointed to the
+ 23 board by a contract member or a participating member,
24 (a) Msmbors of the board shall be qualified voters
26 residing within the boundaries of
the
dieteJ,ot and snail
26 qualify to serve by taking the oath of office and furnishing
27 evidence of their qualiflcatirms to serve on the board
26 oonoistent with the requiromemte of this act
prior to assuming
29 the duties of a board member, Members of the board shall
30 recelvo no compensation for serving as a baardwombero but may
31 be reifsbareed for actual reasonable ospr,7see necessarily
32 incurred, on behalf of the district or in the discharge of their
3$ official duties,
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1 (f) The board may establish a category of ex-officio
2 membership to the board and may provide for the duties and
3 rer naibl
Po litise of the e
k_otfio
1o members in bylaws, rules, or
4 regulations to be adopted by the board,
5 QECTICN 6. 9oard Arooadurea,
(e) The board shell
6 prepare and adopt the bylaws of the district, and shall hold
7 such regular, special, or emergency meetings at such times and
8 on such days or dates as are specified therein,
9 (b) A majority of the members of the board constitutes a
10 quorum for the transaction of business of the district, 'slid
11 approval Of at least a majority of the members of the board
12 present at a meeting is necessary for approval of any patter
13 coming before the board, except where it weighted vote Is
14 required in accordance with the rules of the board In which
I 15 case a majority of the Weighted vote of all board members
16 eligible to vot& is heaessary for approval of any such matter
17 coming before the board,'
16 (c) Tht;board shall provide in is bylaws for the method I
19 of exeeuGioh for all contrrats, the signing of checks and th
e i.
20
handling of any other matters a
p roved b
~ p by the boards ~
The-
b
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21 shall annually rsaognixe and gloat now officers,
22 (d) The officers of the bard shell activist of the
23 president, one, or more vice
presidents, a seozetary, and a
24 trsasur•
r,
the bard shell cleat a president and anY Viar
20 president from its members, The board may appoint a secretary,
26 one or mare assistant seoretariss, a treasurer
~~~++~~~..w✓✓~ , an assistant ,
17 tressaror, and such Other officers as in the
judgment of the ~
28 board are necessary, provided that such officers are not iI
29 required to be members of the bard, The prosidaM shall be. I
30 the chief easautiVe officer of the district and shall prasi6e t
31 over the meetings of the board. Any vice president shall I
32 perform all duties aed exercise all powers Conferred. on the I
33 president when the president is absent or fails, regress, or is E
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if
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1 unable to act, The secretary of the board or one of the
2 assistant secretaries shall be responsible for keeping the
3 minutes of the meetings of the board and all official records
4 of the board and may certify as to the accuracy or authentioity
5 of any actions, proceedings, minutes, or records of the board
6 or of the district, The duties of the other officera may be
7 provided in the bylaws of the district.
8 (a) The regular meeting plane of the board shall be at
g such place as may be designated in the bylaws.
10 (f) The board a,y appoint and employ all psrsoas, firma,
11 corporations, partnarshipa, and other entities' dammed necessary
22 b the beard to conduct the affairs of the d
Y g Y r strictt including
13 but not limited tot en lnrer►r attorne ► Cinanaial advisors, II
( 14 accountants, general manager, and other employees or
I$ consultants,
16
(g) The beard shall establish a customer advisory
17 council oomposed of one representative from each customer
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10 receiving service from the district. The members of the
14 customer -advisory council shall be er wee d to ant
• as provided '
20 in the bylaws or other riles and regulations of the distribt,
I 21 but such oustorer advisory council shall have no voting power
} r 22 on matters coming before the board.
23 (h) The board shall adopt a seal of the district and may
't 24 adopt bylaws to govern the matters des"d appropriate by the ;
45 board
provided such bylaws are consistent with this rat and the
14 laws of the State of Texas,
27 (1) The aesbers of the board and all other offiosrr of
28 the district err subjeot to the eanfliot of Interest provisions
20 specified in this general laws of the Mate of Texas applicable
` 30 to public officials and the actions of ruoh persona shall be
{4/t 31 governed by such provisions.
32 MLCTRM 74 ae. sera! p~awexe and Cutiee, (a) Subject to
33 the specific
provisions ot this act. this d'fstriet and its bparA
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1 of diractoro have the rights, powers, privileges, authority and
2 functions granted} conferred, contemplated, end described in
3 Article XVI, Section 59, of the Texas constitutions, including
4 the rights, powers, privileges, authority and functions
6 conferred by the general laws of the state applicable to
6 municipal utility districts operating under the applicable
7 provisions of the Texas water code, together with the
a additional rights, powers, privileges, authority and functions
g enumerated, described, expressed or implied by this hot,
10
(b) The district shall not have
E the power to levy or
11 collect ad valorem taxer.
12 (a) tf any general law is In conflict or i
13 with this act, this met shall prevail, Inconsistent
14 SECTION a, 6 eciti6 Powers and Dutios of Distrint.
19
(a) we district has the additional rights,
` powers,
16 privileges, authorities and tunotions provided by this Section.
17 (b) The district say piano lay out, purchase, construct,
kk 10 acquira,`own, operate, maintain, repair and improve, inside or
l 19 outside its boundaries, any works, improvements, taoilitlae,
llf 20 plants, 04pp uipment an4 a limners/ including any administrative ~
h ( 21 properties and faeiiitiee, any permits, franchise, licensee or
22 contract or property rights, and any leveaa, drains, voteYwaya,
23 lakes, reservoirs, OMMals, condults, aewars, arms, etorsarater
24 dstentiou faoilities or other similar fsoilities and
' 20 Japroveasnts, whether for euniclpal, industrlsi, agrioultural,
26 flood control, or related {
purposes, that are necessary, helpful ~
21 or incidental to the exercise of any right, powor, privilege,
20 authority or fun'Yslon provided by this act, lneluding the f
20 supplying of Water for sunioipsl, domaetto, A" ladiAotrial
30 user, and all other bsnefiol«1 user or a" trol0r the
31 colleetlon, tr,aatawtat, peo"46109, Wspeeai ot, and &"troli}ng I
32 of sii dosestle or industrial wastes whether In fluid, solid,
is .
33 or composite etator the gathering, bonductinpi 'diverting,
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u i 1 controlling and trsating of local storm water or local harmful
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2 excesses within the boundaries of the district, irrigation, and
3 the altering of land elevations within +:ns boundaries of the
4 district where it in needed,
g (o) The district may acquire, by purchase or by sxeroise
6 of the power of ojminent domain, which power is hereby granted
7 subject to the limitations imposed thereon by this subsection,
a any land, easements, rigbts-of-way or other property or
9 improvements within or without the boundaries of the district
i 10 (including land above the probable high water line around shy
11 ressrvotre in which the district has an ownership or
12 operational interest) which ors needed or are appropriate to
13 early out the powers and functions of the district, ah herein
14 descriped and contemplated provided, howaver, that the power
15 of eminent domain shall be exerciesd in the manner and with the
16 privileges, rights and immunities available under the laws of
17 the state, including specifically the Texas property Code. It
10 is provided further that the district shall not exercise the
19 power of, eminent domain (1) against any property located
70 within an incorporated city located in whole or in part within
21 the county without the prior consent of the governing body of
22 the city, in whose jurisdiction the subject property is tooated,
23 (it) against any property owned by the, county, by any
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24 municipality or any agency or instrumentality ~hsreet, or (iii)
4 aunt
25 to acquire a waterworks ayate>, or a wastewater system that is
24 owhed by any runicipality, any political subdivision of the
27 state, or by private parties, or by any non-profit corporation.
26 (d) The district is hereby vested with and shall have
29 and may -exercise the following additional fight posers,
30 - privilogea, Authoarities and lunokionai to provids ter the
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31 acquisition, construction, lWeversnt, aai»tananes And
32 operation of wholssalm water end wastowator eystotA and
33 treatment works necessary to provida Aarvics to its oi,tolwrs,
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ZANSS
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I and the acquisition, acnstruotion, improvement, and maintenance
2 of any water supply, reservoir or interest therein necessary to
3 fully ,implement the powers and duties of the district as
I
4 providid in this tote
5 (a) Tho district may elect to provide water, wastewater,
6 solid waste, or non-hazardous liquid waste services outside its
7 service area, but the district may not be compelled to supply
j 0 such services for use outside its sarvica araa except by order. `
I
9 of the applicable state agency having jurisdiction over such
10 matters applied in accordance with applicable law.
11 (f) The basic service area has the primary right to
12 water or wastewater treatment capacity and to water supply in
13 each classification which the district saourea under permit
14 from the applicable state agency having jurisdiction over suchi
ld matters.
~ I
16 (9) This art dote not compel any custcser or prospective
17 customer to secure water or wastewater service from the
19 district, except pursuant to contracts voluntarily executed,
outsRrn3ing permit,
l9 (h). This act deer not alter any
30 contract, or other obligation, nor does it in any manner Impair
21 the rights of any entity to own, operate, maintain, or
? 22 etherwiss use or obntrol any water, wastewater, solid waste, or ,
23 liquid vests $yetem in accordance with the laws applicable to
24 such entity.
2S (i) This district is hereby vested with and shall have
I
26 and ms)~ sxersise all the power, needed to establishi acquirsr
27 operate and wintaln a regional solid waste disposal system and ;
26 a non-hasardoes liquid waste disposal ►y"rtea, td connection
20 with sold system, the district shall prbvida the services 1
30 afforded by ruoh,systea to (i) any user is determined by the !
31 board if the services are to be rendered within the basic
r_
32 asrvica area of the district, and (ii) any customer if the
33 esrviosa ors to be rendered outside the basic service area!
i
i.
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The di+trSot is hereby empowered to establish and
?j j 2 enforce rules and regulations for the protection of water
quality in and flowing to or from the areas in or surrounding
4 the lakes, reservoirs and other sources of water supply owned,
5 operated, or controlled by the district for the prevention of
6 waste or the unauthorized use of water controlled by the
7 district and for the regulation of privileges on ally land, '
8 r+servoir, or any movement owned or Controlled by the
g district such rules and regulations shall be enacted and
10 enforead in accordanoo with the procedures provided in
11 8ubohaptsr D of Chapter 54 of the Texas Water code, as amended,
rules and
} 12 and shall be consistent with the applicable
13 regulations of any agency of the state having jurisdiction over
i
i{{ 14 such sources of water supply.
I 15 (k) The district shall have the power to establish rates
16 and charges to be assessed to customers of the district for
17 each service rendered to such customers which rates and charges
18 may be established by classes of customers, by projeot, or by {
19 area of service, i
j
' 20 (1) where bonds or other obligations of the district
{ 21 payable wholly from revenues are issued, it shall ba the duty
12 of the board to fix, anA from time to time revlrat rotes of
23 compensation, i'or water sold and for wastewater or other i
24 services Vander $6 by the district which will he sufficient to II
qy pay the sxpegse of operating and maintaining the facilities Of
26 the district and to pay such obligations go they saturr tnd th+ ,I
21 interest as it accrues and to sI04in the rerervo and other ~
i 28 funds se provided in the resolution er order authorising such
29 obligations'
90 (m) The district may adept, enlerae, ahA 0ol3rnt all
31 necessary dhsrges4 fees, or rsntali' for providing any district 1
$2 facilities at service and may require a deposit for any Nervier
a3 at facilities lurnishrd, and the district may or •+Y not
i
i
Y t.s=}
- xc:r 1 provide that the dopoait will bear interest, The district may
j 2 discontinue a facility or service to prevent an abuse or
3 enforce payment of an unpaid charge, fee, or rental due to the
4 dietri'ct. 1111 cities, public agencies, political aubdivieions
3 and any other entities that contract with the district ass
6 authorized to tix, charge, and collect toot, rates, charges,
7 rentals, and other amounts for any service or facilities
a provided pursuant to or in connection with any contract with
9 the district, and to pledge such aneunts suftiolant to mako all
10 payments rsqulred under the contract.
j 11
(n) All funds and accounts of the district shall' be
12 audited by an independent auditor and a copy of ouch audit
13 shall be maintained in the official records of the district,
14 6ECT101; 9, Bonds, Notes, and Contract• of bimlrtet,
1S S4) The district is tuthoriaed to issue, sell and
{ 1.6 deliver its revenue bonds, notes, rsvonue anticipation notq
I ~
,
f~ 17 bond anticipation notes, short term obligations, refunding
18 bonds, or other obligations for any and all of its purposes,
19 without an election and upon such, terms as the board shall
20 determine appropriate, Such obligations may be made payable {
21 from 411 or 6a y park of the revenues of the dlsteiat dariwd
22 from any lawful source, iholuding, but not limited to, any
23 rohiract with any oustomer or user of the facilities owned or
24 operated by the diatriot under the provisions of this act or
2S from the ownership and operation of any waterworks system,
26 wastewater system, mower system, solid waste disposal aystsm,
27 or non-hasardous liquid waste system, or an `aoabin
Y akian' of
20 such systems, additionally, such obligations am,y be payable
29 from and secured by time on and plodstas of all tr oily part of
70 any of tho rwlnuss, moors, or reaoipta derived by the
31 diatriat trey its ownership, operotion, ; lease,, or 66141 of any
32 ouch property, buildings, struaturss, or faoilitisa, iholudint
33 the Proaeess or revenues from contracts with any person,' fire,
J
t Yip - -
H e.
T...~ Ir:
l
1 corporation, city, public agency, or other political
2 subdivision or entity. Such obligations may be issued to
3 mature aerially or otherwise within not to exceed 40 years from
4 their date, and provision may be made for the subsequent
5 issuance of additional parity obligations, or subordinate lien
6 obligations, under any terms or conditions tbat may be set
7 fortb in the resolution authorizing the issuance of the
a obligations. Such obligations are and shall constitute
9 nsgotiable Instruments within the meaning and for all purposes
10 of the Texas Uniform Commercial Code, provided that the
11 obligations shall be executed, and may be made redsemable prior
12 to maturity, and may be Issued in such'formo denominations, and
13 runner, and under Such terms, conditions, and details, and may
l 14 be sold In such manner, at such price, and under such terms,
15 and said obligations shall bear Interest at such rates, all as
1
36 shall be determined and provided in the resolution authorizing
17 the issuance of the obligations. If so provided in the
10 authorising resolution, the proceeds from the sale of the
I 19 obligations may be used for 'paying interest on the obligations
I
20 during tht periodrof the acquisition or Construction of any
~1 IIII 21 facilities to be provided through the issuance of the
22 obligations, for paying expenses of operation and saintenanoe
f I 23 of lacilitiem, for creating s reserve fund for the payment of
t
24 the principal of apd interest on the obllgakitind, and for
25 creating any other funds, and such proceeds say be placedon
26 time deposit or inverted, until needed, all to the extent and
27 in the asnumtr provided to the authorising resolution, The
20 district ray pledge all or any part of its revenues, Income, or
29 receipts from fees, rentals, ratans charges, and contract
30 proceeds or payrests to the payment of the obligations,
31 including the paysent of principal, interest, and any ether
33 amounts required or permitted in connection with the
33 obligations, The pledged fees, rentals, rated, charges,
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1 Proceeds or payments shall be
2 fixed and oollected in amounts
that will be at lean
sufficient, together with any other
3 Pledged resources, to
4 provide for the payment of eMpenses
conneution with the obligati in
i
S and other one, and oP+Yetton, matntenenar,
eal»nees
In connection with the aforesaid
6 facilities. &aid obligations be additionally secured
by
7 mortgagor er deeds of trust on any n
9 acquired b Y earl property owned or to be
y the district, and by chattel rortaagee or liens o
g any personal property +PPOrtenaot to an
10 the such real Property, and
board may authorize the
ll most esecution of trust i
gages, deeds of t ndenture+,
I,
rust, or other foss of enourbranoeer to
13 12 evidence San*, 1 Also, the diatrlot bey pledge to the payment of
j the obi i
geklons 4121 or any part of , r
1 fr 14 revenues, qr income re any grants denatian
ceived
or to be res•ived lror the Unltedr
E + 16 States government or any other
16 whether Public r or private source,
` pursuant to an Agreement or otherwise, Al! bonds
17 within the moaning of Artlal•
i ll1 Statutes, ar emended, issued 717k-8r Vsrnon's r•xar bivfi
pursuant to this sat
19 ePPxbpriatr prooeedin r o an0 the
I g autherisinq their !ss
I! , 20 submitted to urna• shall be
(((J the Attorney ueno~ai of the state of texas for
Y1 esartnatlon, it r
.
squired to be se subr/ttsd b
22 717kr-A.
It said bonds recite that the y said Article
Y are secured by a`pled e
21 of revenues of any contract, a CO q
pY Of eueh eon'
24 proceedings relating thsrete shall be
2 tract and the
28 0enerbl, 1t he [lode that such submitted to the Attorney
bands have been euthoriaed and
6 any such contract has been sate in
soco
?7 rda
na
ah • wi
mil apProv the bonds and an yy th Irhe
pq any ~ eoatraati and there
the bonds shall be rpimtered
29 AaeeUatr CO~Ipkro2l•r e! nubile
of the state of 6'4440 and alter each eWerel and
10 registration, such
'1 bands and any ouch Contract shall 'be
Incontestable in any court or other lorur !or any reason, and
32 shall be valid and bindtr
~1 0 ebligationr In eertlrdan
kerns for all porpoi ar with their
se. iasuinor of obllgatiam. b the
by
x~-k
rw ~.-r-Its
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I
I district shall be in accordance with the provisions of Article
2 717q and Article 717k-6, Vern*h'e Annotated Texas Civil
3 statutes, as amended, as applicable,
4 (b) The district is authorized to enter Into any
S contracts with the United States of America, its agencies, 'any
6 municipality, or other party, public, private, or non-profit,
7 considered neoeesary in the exercise of the powers and purposes
a of the district, The district in also authorized to enter into i
9 contracts for the acquimition, purchase, rental or leasing or
10 operation of the water production, water supply, water
11 filtration or puriticatlon, water supply facilities, or other
i 12 water or wtstewater facilities which are owned or operated by
13 much contraotigq party, The district is authorized to acquits
14 water appropriation permits and other necessary permits
I 15 directly from the appropriate agency of the state or from
( k 16 owners of permits, Contracts requiring a payment of money by
4 17 the dirtriot may be made payable from any source of funds,
18 general or specific, as may be determined by the board,
39 89CTi01i 10, 4ontracta by ftniaiaal ti e, Any and all
20 muaioipalitiea, public agencies, political subdivisions, and
! 21 any nonprofit water supply corporation doing business wholly
22, or partially within the distriot, and 611 subdistricts are
23 expressly authorised to enter into any contraatr with the
24 district that are doomed_ appropriate by the respective
2$ governing bodies thereof, Such governing bodies are authorized
26 to pledge to the payment of any such contracts any source of
27 rovenaes that may be available to the governing body, including
21 the levy and collection of ad valorem tares, if such
20 runioipality or subdiatriat has the power to levy Arid calloot
30 rush tarms, subject only to the olretiona, if any, that are
21 "required by applicable law, to be held prior to the levy of ad
32, W orem tarem, To the ertemt a gwarming body pledgee funds to
3S the payrant of any such oentract that are to be derived [Item
3
3
A a'r'J! hr
I its own water system or its wastewater system or its combined
2 system, such payments +hsll constitute an operating expense of
3 such system.
4 'SECTION 11. Depository. The board, by order or
5 resolution, shall designate one or more banks inaide or outside
6 the district to serve as depository for the funds of the
7 district, Lxcept as herein provided, all funds of the district
8 shall be deposited in the depository bank or banks, The funds
j 9 of the district may be invested as provided in the laws of the j
10 8tate of Texan for. the Investment of county fond* and may be
11 invested it, accordance with the provisions of the Public Funds
12 rnvestmant Amt of 1987, as the same may be amended from time to
13 time. The funds of the district shall be secured in the manner ;
14 provided by the laws of the State of Texas for public funds.
15 SECTION 12, Regulatory Power of Runic lities* This
16 amt does not exempt the district or any subdistrict or any land
17 situated within the district from tits terms and proviuions of
18 any applicable ordinanoes, codes, resolutions,; platting and
19 soning requlremeate, rules or regulations of any municipality.
{ 20 PART II
21 8UNDINTRICTs WI"IM AU'MAITY -
22 SEcTInM 12, Creation of 8ubdistrictas
23 (a) To provide for the orderly devslopment of water,
24 wastewater, and other setvicss of the district. 'within its,
i
25 boundaries and to prevent unnecessary duplication of
26 facilities, the district is authorised to create subdlstriots,'
21 A petition requesting the creation of eubdistriots within the
26 district may be presented to the board of the distriot. Any
f
i
20 such petition not be signed by at 'least tMddty.five (2%)
30 plrsons wbe am yeoputr within the bouWaries at the prW,#*4
31 subdiatrict, of such Mltition may be submitted by the governing
32 ' body of a municipality when accompanied by w_ resolution or
33 ordinance of ouch governing body authorising the submi"lom at
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{ I such petition. Any such petition shall speoify, at s minimum,
2 a metes and bounds description of thv boundaries of the
3 proposed subdistrict, the general nature of the improvements to
4 be acquired, constructed or otherwise implemented within the
5 subdistrict, the necessity and feasibility of such
6 improvements, and the proposed method for funding such
7 Improvements. The petition shall state on its face whether the
a power to levy and collect ad valorem taxes within and solely
9 within the subdistriot is requested, it a subdistrict is
10 proposed within the corporate limits or extraterritorial
11 jurisdiction of a municipality, the petition requesting the
12 creation of the subdistrict shall be accompanied by an official
13 action of the governing body of the municipality' In whose
14 jurisdiction the subdistrict is t proposed approving the arextion
13 of such subdistrict, Should the governing body of the
16 municipality in whose jurisdiction the subdistrict is proposed
17 object to the creation of caoh subdistrict* then the
i 16 subdistrict' shall not be created within the i"wrporetad limits
19 or the ertrat.rritorial:jurisdiction of that municipality,
t
20 (b) The board shall set a date for a hearing on much
21 petition not less than thirty (30) nor more than ninety (90)
22 day* after the day the petition it prom4ntod to the district,
23 Notion of ouch hearing shall be given to each municipality [
11~ 24 within whose boundaries or extraterritorial jurisdiction the
I 23 proposed subdistrict dould be located. A copy of the notice of
20 the heariaq shall also be posted in three (3) public Placer 4
27 loeat*d- within the proposed aubdistrict And at the county f
20 courthouse at least foortsof (14~ days prior to the dots met`
24 for the hearing, Notiea of the hyarinq shall also be published
30 at least one (1) time in a mmsprper of general circulation ~
31 published in thy county at least ton (10) days prior to the
i
32 date of the haaring.
33 (a) Ah' fAterested person may appear at the hooting for j
Ei1
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1 the purpose of supporting or opposing the creation of the
2 subdistrict in accordance with the petition. Tnu hearing shall
3 be conducted in accordance with the procedures established by
4 the board,
5 (d) Alter the puLlia hearing, the board shall enter an
6 order making ltn findings in the official records of the
7 district, If the board deems the creation of a aisbdietriet to
a be feasible and practical and finds that the ortation of the
9 proposed subdistrict will be beneficial to the public„ will
10 benefit the residents of and the land included in the proposed
11 subdistrict and will contribute to the orderly growth and
12 davslopnent of the regional water and wastewater wyrteoa within
13 the distriot, then the board shall enter an order grant(ng the
14 petition and ordering the creation of the subdistrlct in,
15 accordance with, aubsa0tion W of this section, TRe board
i 16 shall include its findings in the order which shall ha filed in
i 17 the official records of the district, The order thuil dufins
4 19 the boundarloa of the subdistrict, bass, -sit does not h#Va to
1 19 include all of thf land described in the-petition It the yOtrd
20 in its Judgment determines that a modification Or'ahangl iW the
21 subdistrict is necaeaary or beneficial to the public. If the
22 board finds to the contrary, it shall entor an order dieMiseing
23 the petition and the proposed subdistrict shall not be drepted,
24 but a ditrissal order shall be without prejudice to the atiility
28 to petition for the areation of a subdistrict aevsriug the same'
26 territory at a later time.
21 (e) if the board orders the creation of a subdistrict
28 for whloh the power to levy cad oollact ad valerem' taxes was
It not requested in the petition, the subdistrict shall be created
30 and in existence from and after the date 040d in the order of
31 the district, Without the 1200e404ty of a Confirmation eleotioh
12 within the bousdariea of the Mubdisttiot and any such
33 subdistrict shall act have the pcwr to levy or collect ad
t
t i
i
,
} 4,31 v
W*AM
5
1
i
1 valorem taxes, if the board enters an order granting a
2 petition that seeks the
power to levy and collect ad valorem
3 tax@$ within the subdistrict, then the ■ubdistriot shall not be
4 created until and unless a confirmation election is celled,
5 conducted and held by the district within the ptopos3d
6 boundaries of the subdistrict and a majority of the qualified
7 voters voting thereat confirm the creation of the subdistrict
a In accordance with the provisions of subsection (f) of this
9 section, 1f, the subdistrict is confirmed, at such election,
10 then the subdistrict shall have the power to levy and collect
11 ►d valorem taxes for the maintenance and
operation of the
12 subdistrict and for the payment of contracts of the d1mikictt
I 13 provided that no Such taxes shall be levied and collected until
! 14 and -unless previously voted at elections held in accordance
'
13 with
subsection
(f).
` 16 ff) A confirmation election, when required by this
' 17 section, and any election to authorixe the levy and collection
18 of ad valorem taxes within a subdistrict for maintenance
19 purpoess -shall' be conducted in the manner required b f
1ay Chapter
20 $4, Texas Mater Coder for the
vy and collection o!
~ I
21 saintananee taxes by municipal utility districts, rloctiona to
22 levy taxes in support of contracts shall be held in the manor
f 23 and with the affect provided by Chapter 34, Texas Water C0460
j
24 for the issuance of bonds by municipal utility distriota, The
25 confirmation election required by this subsection, a
26 ~
maintenance tax election and an etaction authorising the levy
27 of taxer to support bonds or contracts of the subdistrict may
28 ba combined into a mingls eleotloa, and any or all of such
20 elections slay be held on any day or data m*lect&d, by the
30 beard, each moth election shall be called, convened and held
.fit'
$1 by the board in accordance with the Texas Election Code and
32 Ch►pt•r S4, Texas Water Code,
33 (9) A subdistrict, it created in accordance with this
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1 section, shall be a conservation and reclamation district under
2 Article XV1, Section 59 of the Texas constitution with the
3 limited powers granted in this motion. The subdistrict
4 constitutes a political eubdtvision and a corporate body and
a
5 politic under the laws of, this state, A subdistrict shell have
6 the powers specified herein and shall have the same
powers as
the distrioto but subject to the same limitations, and provided
i
a that a subdistrict shall not be authorized to provide services
9 outside its boundaries, except that it may provide retail water
I
10 and, sewer services within its customer service area as
f1~ 31 certificated by any applicable regulatory agency of the State
12 of Taxes.
13
(h) It a subdistriot in created as ;specified above, the
{
~ I 14 subdistrict shall be gav,crnsd by a board of supervisors
15 consisting of at least file (5 supervisors, The initial. board
` 16 of supervisors shall be appointed by the 'district from among
17 the residents of the subdistrict. The district shall make such
10 appointments for terms specified In the order oreating the
19 subdistrict but rw.t exceeding four (4) years from the data of
20 appointment, 8udi initial supervisors are, subject to reaovsl,
21 with or without cause, by aotion of the district, All
22 vacancies shall bii filled by the district. After the initial
I
11 23 appointment of the -board" of supervisors and prier to the
I~ 24 issuance of any bonds, notw, or other obligations of the
25 rubdistriot, members ei the board of supervisors shall be
26 elected in the manner provided by the laws of the State of
27 Texas applicable to munleipal utility districts. Watiee and
20 the conducting of such election shall be in acoordanee with
29 such laws.
30 (1) The subdistrict shall have all the
po++srs provided
31 elsewhere in this act and shall have oimarsnip of and genaral
I 32 managnwht powers owr the affairs, works and projects of the
33 subdistrict subject to the proviaiaas of any contraots with the
P4 NA/R" /
nw4pgW~ 111777.
e
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1 district, However, the iesusnee of bonds by the subdistrict
2 shall not be effective until Ouch IOOUlno is approved by
3 official notion of the district.
4 li) In those subdistriots having the power to levy and
S collect pd valorem taxes, the tax rates shall be established by
6 the beard of supervisors on the basis of annual budgets
7 established at the sees time and in the same manner as for
9 counties, and taxes shall be levied by the board of supervisors,
9 (k) The members of the board of superVisors shall
10 receive no compensation for serving as a supervisor but may be
' i
j 11 reimbursed for actual reasonable axpentes naeessarily incurred
12 on behalf of
t the subdistrict or in the disoharye of their
i ! 13 official duties.
14 (1) Subdistricts created in accordance with this act MAY
1S only become participating members of the district,
16 SUCTION 14. Conversion of Water ¢upply Corporation to
17 Subdistriots, (a) upon the adolstioh of `a resolution by the
is board ,of directors of any non-profit water supply corporation
It doing business wholly or - ~ - Y I+artiatiy within t1tiO boundaries of the
f( 20 distriot and requesting such action i;he board may oonai4sv the
21 question of converting such none-pra(,t water supply corporation
22 to a subdistrict by following tbs, saw procedures otherwise
23 required by section 13 of this act And subseotien (b) ,below,
24 (b) The resolution of the board of directors required
25 above shall include, in addition to the information specified
26 in section 13(m) for petitions to be filed with the board of
27 the distriot, a plan of convers/on, including, asong others,
29 the proposed method for the transfer of assets and the
29 assumption of debts to the mublistriot.
30 (0) if determined to be appropriate by the board, the
31 district, at tide request of the board of ;directors of Ouch
32 non-profit water supply oorporatibn, may establish a board of
32 supervisors in greater number than specified herein for other
•22~
1
. r....~.+-ter.
1 such subdistricts.
2 (d) Notwithstanding any provision of this act to the
t
I 3 o«+trary, any water supply corporation that
I was
a member of the
4 D "On' County steering Committee in connection With the Denton
5 County water and wastewater Study Ae910n41 Master Plan for 2010
6 esY become either a contract member or a participating member
7 in accordamce with the
provisions of this eat,
S SECTION 15. Meetince of Soard of 8upe_ r_ yds. The
} i
9 board of supervisors of a subdistrict shall hold regular,
10 special or umargency meetings at those tines and on thaws dates
11 the board determine.
4 12 SECTION 16. Subdistrict o!t` l~oeo-- etin place. e
II
13 board of supervisors of each subdistrict shall f
designate e
i 14 place within the subdistrict as the regular office and meeting
1S Place, except that the regular meeting place may be at the
4 16 regular muetinq place of the district It approved by order of
III' f ! 17 the district4
is SECTION 17.
Collect! o! Ta es kithih Subdistricts,
19 (a) The county tax assessor -collector of the county
` 20 shall maintain the tax rolls and collect taxes for any
21 subdistrict located in the 'unincorporated'araA of the county
i
1 22 and having taxing power in the same manner as for taxes for the
23 county, The tax assessor-collector for the other aubdistriets
24 shall be as selected and shall perform the duties determined by
23 the board of supervisors.
26 (b) uaiabursement of the costs of the tale assessor-
97 collector foe such services shall be paid by the subdistrict.
26 10) Tares and other revenues collected within It
29 subdistrict shall be used solely for purooses within, the
30 subdistrict, except that the costs of administration of the
31 affairs of a subdistrict may be paid to the district in
32 accordance with contracts between the district and the
33 subdistriete. All taxes and revenues of a subdistrict as
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1 colleoted shall be deposited as public funds into accounts of
2 the subdistrict approved by the district. All accounts of a
3 subdistrict shall be audited by an independent auditor and a
4 copy of such audit shall be maintained in the official records
5 of the subdistrict and the district. All such funds may be
6 deposited or invested as permitted for public funds.
7 PART 111
B MIBCELLANrOUe
9 BBCTION 19. Creation Exp6n4e4. The district is
10 authorized to pay all costs and expenses incurred in the
11 creation and organisation of the district, including but not
12 limited to the reimbursement of costs and expenses incurred by
0
13 the Demon Country Steering Committee in the preparation of the
14 Denton County hater and wastewater Study Regional Master Plan
~i 15 for 2010, and the Upper ,Trinity Municipal Water Authority,
` 16 1no,4 in the develbgsent and implementation of such study. The
E I 17 district it authorised to succeed to and aasuso the rights, i
~ I
16 privileges, duties and responsibilities, including,abdtractual ;
+i 1,9 obligations, incurred by the Upper Trinity Mucloipol water
20 Authority, Inc., f nonprOfit corporation areatad to serves on an
21 interim basis pending the Creation of the district.
j 22 BrCTION 19. Tax rxem f The aacorpliahmant of the
23 purposes stated in this act b4ing for the benefit of the people
I f 24 of the state and for the improvement for their properties and
I 1 25 industries, the district and the subdistricts in carrying out
26 the purposes of this act will be performing an essential public
27 function under the Constitution and shall not be required to
28 pay any tax or assessment on any property or project ownedr'
29 operatedo leased, -or oontrollod by the district or any part s
30 thereoto and the bonds or other obligations issued hereunder
31 and their tva"tsn WA the intone thorefroao inclMing the
32 profits 4440 on the sale thereof, shell at all 'times be free
33 lror taration within the state,
f
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SLCT10E) 20. Severabilit It any provision of this
2 act or its replication to any porsou or circumstance is held
3 invalid, the invalidity does not affect other provision or
4 replication of this act that can be given affect without the
$ invalid provision or application, and to this and the
6 provisicoe of this act are declared to be ■evorable, The terns
7 and provisions of this act are to be construed liberally to
0 effectuate the purposes, powers# rights, functions, and
9 authorities heroin set forth.
10 SECTION 21. Notice. The legislature specifically
11 finds and declares that the requireeanto of Axtiols XVI,
12 eectien S9(d) and Section 69(e) of the Taxes Constitution, to
13 the extent applicable, have bean -rot and accomplished in due
,
14 course, time and order and that all notice required to be given ;
15 relating to this act hag been given, that all approvels
16 required to be obtained pursuant thereto have boon obtained, {
17 and that the legislature has the authority and power to enact Et
IS this act, j
19 3E0f1ON 22. Emergency, The importance of this
20 legislation and the crowded condition of the calendars in both
21 houses create an amergonoy and an Imperative public necessity
{ 22 that the constitutional rule requiring bills to be read, on
23 three eavoral days in each house b+ suspended, and this rule is
24 hereby suspended, and that this act take affect and be in force
I 2E from and after Its passage, and it is so ansated,
26
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s CITYOf DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8200
January 11, 1989 , i
C~C
Mr, Paul Dorton
y MoCall, Parkhurst & Morton
! 717 North Harwood 9th Floor
6 Dallas, Tx '75201-6537
Rai Latest Draft of Upper Trinity Regional Water District
i Dear Paulo
Thanks for you early responses to our council's concerns on !
the subject legislation. T am enclosing Bob Dransf.ield's
latest draft of this legislation with the additions ;
underlined. Thought you may want to make riots of those
I1 before our council meeting next Tuesday evening. This item
will be on the regular council agenda at 700 PM on Tuesday
evening, January 17, 1989. !
A purchase order is on its way from our Purchasing j
Department for your Use in billing Denton for the hours you
have `spent on this issue4'.
Agaln', thanks for your help and will look forward to seeing
you Tuesday.
Regards,
lt. 27el'Son, P.E.
Executive Director of Utilities
gor
cc: Lloyd Harrell, City Mqr,, Denton '
Joe Morris, Asst, City Atty,, Denton
file
Attachments Latest Draft of Proposed Legislation
PTSOOlsUA
j
ff $4116. F, eP .
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,
?Iattulq
Lit L'Ld
Draft Of 1/6/69
includes City ,
comments to 1/6/89)
A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, and powers, including
the power of eminent domain subject to limitations, and to the
duties, operations, and financing of the Upper Trinity Regional
Water District, and to the creation therein of subdistricts
with the power to levy and collect ad valorem taxes within the
i
subdistrictsl'and containing other matters related thereto, i'
f
BE IT ENACTED BY THE LrOISLATURE OF THE STATE OF TE.XASf
SECTION 1, Pus sa, It is the purpose and intent of
i this act to establish a mechanism that can provide on an
orderly basis for the water, wastewater, solid waste, and
j
liquid waste needs of Denton County and the entities that may
! be served by the authority herein created. To accomplish this '
l purpose, a conservation district, without taxing power, ie k
1! created, with the power included to create Nubdirtticts having
i the power of taxation, subject to limitations; all for the
i
purpose of providing for such services on a coordinated basis
that is consistent with the regionalization objectives to be
} satisfied by the creation of the authority;
MCM16N 2, g2finitions, In;this actf
(a) "distriot' aeons Upper Trinity Regional Water
District created in section 4 of this act and any other public
h body at any time succeeding to the property, principal rights,
111 powers, and obligations of said Upper Trinity Regional Water
District.
(b) "basic service it**' means, the geographic area
contained within the corporate limits of all particinatfng
members, all contract members, and all custoaeta and Such at*$$ ~
as are served by said members and customers. 4
}
(c) "board" means the governing board of directors of A
the distrlet: l
P
WJAW y
! S
wnts'in
I (d) "contract member" or "contracting member" means one
or more, as the case may be, of the Qovernmental entities which
provides retail utility service within its boundaries, that t7l
contract with the district within two (2) years from the
effective date of this act to preserve the option to become a
participant within 10 years from the effective data of this act
and agree to pay an annual pro rata share of tha administrative
and planning costs of the district which are unrelated to
! vital projects to be fiAaAced from time to time by the
dtotrict:t:hsvinar calleotioely"): ate least-seventy-five percent
II .of the population represented by all the contract members;
G ptov)dad, however, that such share shall never exceed for any
contract member fifty cents per capita unless otherwise agreed
j ! to by at least seventy-five percent of th Contract members. 1
i (a) "county" means Denton County, Texas.
(f) "customer" means any wholesale user of the water or
wastewater services provided by the district which user j
provides retail utility service within the boundaries of said
r
user
(g) "participant" or "participating nrmtsr" means one or
more, as the case 06y be, of the governmental entities which
J
provides retail utility service within its boundaries that
contract with the district for the construction of and payment
' for the water snVor wastewater projects to be financed from
time to time by the district.
"service srse" means that geographic area contained
',within the boundaries of the district, I
i!) "etxte",swans the :state of Texas.
{i) 'subdietriat" means one or more of the subdistriata
authorised to be created under Part_tr of this Aet: j
,
B19CTlO1 9. WgieiejgV Findinar, (a) It is hereby
found by the legisleturs that the creation and estoblishment of
the district and the areation and establishment of subdistriats {1
f
a~uo
.2. ;
r t"uF - A 4
ii
within the district are essential to the accomplishment of the i
purposes of Article XVI, Section $9, of the Texas Constitution.
(b) It is horeby found by the legislature that all of
the land and other property included in the boundaries of the
district and in the boundaries of a subdistrict will be
benefitted by the improvements, worka, and projects that are to
be provided by the district and by subdistricts pursuant to the i
t~ powers conferred on the district and subdistricts by this Act,
! and that the district is created to serve a public use and
benefit and any subdistrict created will serve a public use and
will be for a public purpose.
(c) The legislature specifically finds and declares that
the requirements of Article 7NI, Section 59 (d) and Section
59(e), of the Texan Constitution, to the extent applicable,
have been met and accomplished in due course, time, and order
and that all notices required to be given relating to this mot
have been given; that all approvals; vaquir*d to be obtained
pursuant thereto have been obtained, and that the legislature
. j
has the authority and power to moot this sat, i
t
PART I
{ TNL D10"tcT
SECT 1014 a, Creation, (a) A oonservation and i,
reclamation district having the boundaries prescribed herein is
hereby created and shall be known at the Upper Trinity Aegional
Mater District.
(b) The district is a conservation and reclamation
district under Article XV1, saotioe 5! of the Tests
Constitution, and is t
9overnsNnttl agency, body corporate and
politio, and a political subdivision of the State. ?
(a) The boundaries; of the district are coterminous with
the duly established and existing boundaries of the county plus` {
the entire incorporated limits of any contract sydnser or
participating member, a portion of whoa incorporated limits is
f
F
7
f
t ` partially within the corporate limits of the county,'
(d) An election confirming the creation of the district
y is not required,
SECTION S. Management of District'. The district shall
i be governed by a board oZ directors consisting of persons who
are residents of the district; provided, however, that no
member of the board of directors shall be an elected official
of any governmental entity that has the authority to appoint i
member of the board, The terms of office shall be four (4)
i yearn, Members of the board shall be appointed by the
governing bodies of the participants and the contract members
in the manner set forth herein, The members of the board are
subject to removal with or without cause by duly adopted action
i { of the governing body of the entity that originally appointed
such member. The board shall have complete suthority over the
E! mtnagement and affairs of the district under this act,
f ! (b) The initial board shall consist of the persons who
served as the initial board of directors of the tipper Trinity
Municipal Water Authority, tac,, a nonprofit corpotation
j organised udder the laws of the State of Tefaa and those j
potions who are appointed by those entities that become
participating members or contract members within two Years of i
the etteetive date of this act,zaeh such participating Umbot
or contract member shall appoint one easeaber to the board and !
the county shall appoint one mswber to the board) provided,
howevor, that the county -say appoint ont additional member to
the board it the board deteralinos that such 'appointment is in
the best interests of the district. Those entities that
Aorntract with the district after two years frog the effective
date of this act shall be entitled to representahion on the
board only pursuant to the rules and prooeduros oetW ished by
the board for the admission on board MOWAts es such rulos and
prousdures may from time to time be amendod.
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(c) Umbers of the board who are appointed by the
participating members shall be entitled to vote on all matters
before the board. Members of the board who are a
i ppointad by •
contract members which are not participating members shall be
entitled to vote on all matters before the board except those
matters that require a weighted vote, The board shall
+ establish rules for the implementation of a system of weighted '
II a
votes concerning authorization of and financial commitments for
capital projects which system shall be determined according to
each entity's participation in service and in projects of the
district,
(d) Except as provided herein, the initial board shall
serve staggered terms in accordance with the procedures toy. be
adopted by the initial board,- provided that no initial board
member shall be appointed for a term in,escess`of four years.
Thersafter each board member shall be appointed to a four year
term. Members of the board may serve consecutive terms. The
members of the board that served on this board of directors of
the Upper Trinity Municipal Meter Authority, Inc. shall have 3
the rights and privileges as members of the board appointed by it
participating members) provided, however, that such members
I shall not be entitled to a Weighted vote on any matter coming
before 'the board and shall be entitled to vote as ♦ f
participating member without the right to a weighted vote, The
i
boardawlmbers that served on the board of directors of the upper
Trinity Municipal Mater Authority, Ind. shall reeve an initial
term of two years from the effective data of this act,
?hereafter, such persona are eligible to be appointed to the
board by a contract mendwr or a participating asabmr,
(e) Members of the board shall qualify to serve by
taking the oath of office and furnishing evidence of their
qualifications to serve on W board `consistent with the
requirements of this act
prior to assuming the duties 01 a ~
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_ 7777
board member. Members of the board may be reimbursed for
actual reasonable expenses necessarily incurred on behalf of
l
the district or in the digcharge of their official duties,
(f) The board may establish a category of ex-officio
membership to the board and may provide for the duties and
responsibilities of the ex-officio members in bylaws, rules, or
i
regulations to be adopted by the board.
SECTION 6, Board Procedures, (a) The board shall
1
prepare And adopt the bylaws of the district, and shall hold
such regular, spacial, or emergency meetings at such times and
on such days or dates as are specified therein, 1
(b) A majority at the members of the board constitutes a
I quorum for the transaction of business of the district, and
1111 ? approval of at ieaat a majority of the members of the board
4i present at a meeting is necessary for approval of any matter
coming before the boatedo eacapt where a weighted vote is
s
{ required in accordance with the rules of the board in which {
i {
case a majority of the weighted vote of all board members
i eligible to vote is necessary for approval of any such matter
i
s~oaiatq belare`the board.
(o) The board shall provide in its bylaws for the method
of smeeutiba for all contracts, the signing of checks and the ;
handling of any other matters mpproved by the board, Tice board
shall annually tncognise and elect new officers,
( (d) The officer$ of the Ward' shell consist of the
pretideak, one or more vial presidents,, a atoretarr, and a
i
treasuret! The board shall elect a president and any vied j
president from its mombert. The board say appoint a secretary, 1
one at mars assistant secretaries, a treasurer, an $03lstant 1
treasurer.' and such other officers as In the, judgment of the.
board are necessary, provided that such officers are not
required to be members of the board. The president oha11 bs
the chief ex"utive officer of the diatrict and shall pteside
r
if
v
f=
1 6Yi1Y ti.5.
over the mr,etirngs of the board. Any vice president shall
perforce all duties and exercise all powers conferred on the
i president when the president is absent or fails, rafuses, or is
unable to act. The secretary of the board or one of the
assistant secret;aties shall be responsible for keeping the
minutes of the meetings of the board and all official records
of the board and may certify as to the accuracy or authenticity j
of any actions, proceedings, minutes, or records of the board
or of the-district. The duties of the other officers may be
provided in the bylaws of the district.
f
(e) The regular rseatinq place of the board shall be at j
such place as may be designated in the bylaws.
(f) The board may appoint and employ all persons, firma,
corporations, partnerships, and other entities deemed necessary
1 by the board to conduct the affairs 'of the district, including
but not limited to, aingineera, attorneys, financial advisors,
accountants, general manager, and other
sn+ploytas of
1 consultants.
(4) The - board <shall establish a customer advisory
council composed of one repcesentative from each customer
I
f reeeivin4 service from the district. The, mosibats of the
customer advisory council shall be sMpowtrtd to rat as provided ~
t in the bylaws or other cults and regulations of the district,
{
but such customer advisory council shall have no voting powaK ~
on matters cooing before the board.
(h) The Ward shall adopt a seal of the district and may
adopt bylaws to £overn tho mutters deemed appropriate by the
board provided such bylaws are consistent with this act aad the I
laws Of the Mate of Texas.
(i) The mos*fs of the board and all, other officers of
the district are subject to the conflict of interest provisions
speciflod in the genital laws of the 8tatt ofTomas applicable r
r
i
M
to pvt+Eir, r,.Fiiclais and the actions of such persons shall be
governed by such provisions,
SECTION 7, GwneraC Powers and Duties. (a) Subject to
the specific prOVisiOns of this act, the district and Its board
of directors have the rights, powers, privileges, authority and
functions granted, conferred, contemplated, and described in
Article XVI, Section 59, of the Texas Constitutions, including
the rights, powers, privileges, authority and functions {
conferred by the general laws of the state applicable to s
municipal utility districts operating under the applicable 1
provisions of the Texas watet Code, together with the
additional rights, powers,
prlvflagsa, authority and _functions ~
enumerated, described, expressed or implied by this act,
(b) The district shall not have the I
I Paver to levy or
f collect ad valorem taxes,
E (a) If any general law- is in conflict or inconsistent' e
with this dot, this act shall prevails 1i
112MON a, speaitiC Powers ayd 8utiea oUGistrltrt,
4
(a) The district has the addihionsl. rights, powers,
prsrdl~ges, authorities end functions provided by this section.
(b) The district may plan, la out,
{ Y Purchase, construct, ~
j acquire, own, operate, mslntain, repair and improve, inside or
outside; its boundarles, any waorks, improvemente, facilities, 1
plants, equipment and appliances, including any administrative i
Properties and facilities, any permits, franchise, licensee of
Contract or property rights, and any levees, drains, wsterways,
lakes, reservoirs, channels, conduits, sewers, dams, atoratwater
detesiticn facilities or other similar facilities and
improvements, Nhdthex for municipal, iadustrisl, agricultural,
flood control, at related
purposes, that are neceessry, helpful
or incidental to the exorcise of any right, power, }
4rivilegg, t
authority ar function provided by this act, including the
supplying, of water for municipal, domestic, and industrisi
5 ,
04ise
of
:i;
H@Q6 Fdt;yfd+'
.i
?i
Uses, and 311 other beneficial uses er controls the
j collection, treatment, processing, disposal of, and controlling
j of all domestic or industrial wastes Nhethel' in fluid, solid,
or composite state; the gathering, conductin
! controlling and g, diverting,
treating of local storm water or local harmful
( excesses within the boundaries of the district, irrigation, and
the altering of land elevations within the boundaries of the
district where it is needed,
(c) The district may acquire, by purchase or
of the by exercise
power of eminent domain, which
_ s power is hereby granted
subject to the limitations imposed thereon by this subsection,
1f any land, eaxements, rights-of-way or, other property
f improvements within or without the boundsries of the district
1
'
(including land above the
r' 1 DrObablr high water line around any
reservolro in which the district has an ownership or
operational interest) which are needed or are appropriate
carry out the to
powers and functions of the district, as herein
I 1
! described and Contea+plitedl provided, however, that the power
! of eminent domain shall be exercised in the monner And with the f
Privileges, rights and immunities available under the laws of
f the state, Including s
p.niliarl2y the taxis Property Code,, it
1
Is provided further that the district shall not exeroisat the
J
power of eminent domain (t) against any property located
within an incorporated pity located in whole or in
the county, without the <part within
prior consent of the governing body of 1
the city in whose jurisdiction the subject property is located,
(it) against any property ovoid by the county,
municipality or any oven" by any i
Y ncy or instrumentality thereof, or (ii!) ~
to acaufre a waterworks system or a wsat.wster system that is
f
owned by any municipality, or by Private parties, or by any
non-profit corporation,-"
i
O Th.`dia .
t
rig
t is here
(4) The district is, hereby vested with and &hill have
by vBated with and ahail have
and may exercise the following additional rights, powers,
' 011!0 _ 1
4-
y~
,
tJiW3i 6exMdrI
prinilegeY autbarities and functi0nsr
to provide for the
acquisition, construction, improvement, maintenance and
E opetatlon of wholesale water and wastewater system$ and
j treatment works necessary to
Provide service to its customers,
and the acquisition, construction, improvement, and maintenance
1 of any water supply, reservoir
( Or interest therein necessary to
IJ fully implement the powers and duties of the district as (I
( Provided in this act,
(e) The district may elect to provide water, wastewater,
solid waste, or non-hazardous liquid waste
~ service area, but the district ms services outside its
Y not be compelled to supply
such services for use outside its service
'
{ i area
except bj%order
of the appIicsbla state agency having jurisdiction over such '
I matters applied in accordance with applicable law,
(f) The basic service area has the primary right to
r
water or wastewater treatment capacity and to water supply in
each classification which the district secures under permit i
+ from the applicable state agency having jurisdiction over such
! matters, i
~4) This act does not coarpel any customer or prospect#ve
customer to secure water or wastewater aerVlcA from the '
district, except pursuant to contractsvoluntarily eYecuted,'
(h) This act does not alter any outstanding petmi t, I
contract, or other obligation, nor does it in any manner im aiK
bhe rights of any entity to own, operate, maintain, or
otharwiso use or control any water, wastewater, solid waste, or
liquid waste system in accordance with the Iowa applicable to
such entity,
(1) The district is hereby vested with and shall have
f
and ray exercise all the pokes needed. to establish, acquire,
operate And maintain a regional solid waste disposal system and
a rion-hazardous'liquid waste disposal system, in connection #
with said system, the s'district shall
' provide the services
t
a
t
:
1
}
7 afforded try such system to (i) any user as determined by the
board if the services are to be rendered within the basic
service araa of the district, and (ii) any customer if the
services are to be rendered outside the basic service Area,
f (j) The district is hereby empowered to establish and
enforce rules and regulations for the protection of water
quality in and flowing to or from the areas in or surrounding
the lakes, reservoirs and other sources of water supply
Owned,
i
operated, or controlled by the district for the prevention of
wants or the 'unauthorized use of water c i
ontrolled by the ,
district and for the regulation of privileges on Any land,
reservoir, or any easement owned or controlled by the
district, such rules end. regulations shall be enacted and t
`f! Y ]
enforced in accordance with the procedures
i provided in j
Subchapter 0 of Chapter 51 of the Texas Mater Code, as amended,
and shell be consistent with the applicable rules and
regulations of any agency of the state having Jurisdiction over
such sources of water. supply.
(kl The district shall have the poinr to establish t~ten
I` and chergrs to be asseased to customers of the district for 3
each setviae rendered to such customers which rates end charges i
( tt
j may be established by glasses of oustomrs, by pro;eelt, at by
i
{ { area of service.
ill Where bonds or other obligations of the district
payable wholly from revenues are issued, it shall be the duty t
of the board to fix, and from time to time ravine, rates of
compensation for water sold and for wastewater or other
services rendered by the district which will be sufficient to
pay the, expense of operating and maintaining the facilities of
the district and to pay such obligations as eh" mature Sad the
interest as it accrues and to maintain the reserve and other
funds as {
provided in the resolution or order authorising such
obligations,
s
OIr10
„lie {
{.v the district may adopt, enforce, and cc ltact all
necessary charges, fees, or rentals for providing any district
facilities or service and may require a deposit for any service
i
or facilities furnished, and the district may or may not
provide that the deposit will bear interest, The district may
discontinue a facility or service to prevent an abuse or
s enforce payment of an unpaid charge, fee, or rental due to the
c
4 district, All cities, public agencies, politicalsubdivisions
and any other entities that contract with the district are
authorised to fix, charge, and collect fees, rates, charges,
rentals,' and other amounts for any service or facilities
,
provided pursuant to or in connection with any contract with f
I the district, and to pledge such amounts sufficient to make all
I I
payments required under the contract.
(n) All funds and accounts of the district shall be
11f audited by an independent auditor and a copy of such audit
shalt be maintained in the official records of the district.
SECTION 9. Sands. Natas~ sad contracts ofADistri^ }
i (a) the district is suthorised to isaW, sail and
i! deliver its revenue bonds, notes, revenue anticipation notes,
f
bond anticipation notes, short sera obligations, reeundinq
{ bonds, or Other obligations for any and all of its purposes,
without an election and upon such terms as the board shall
determine appropriate, Such obligations may be made payable
from all or any part of the revenues of the district derived
from any lawful source, including; but not limited to, any
contract with any customer or user of the facilities awnod'or
operated by the district under the provisions of this act or
troy the ownership and operation of arty waterworks system ;
wastewater system, sawec system, solid waste disposal systeM, E
at, non-hazardous liquid waste aystaes,.of soy combination of
such systems, Additionally, such obligations may be payable
from and secured by liens on and pledges of all br any part of
ee}ea 3
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a any of: the revenues, income, or receipts derived by the
district from its ownership, operation, lease, or sale of any
such property, buildings, structures, or facilities, including
the proceeds or revenues from contracts with any person, firm,
i
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corporation, city, public agency, or other political
subdivision or entity, Such obligations may be issued to
mature serially or otherwise within not to exceed 40 years from
their date, and provision may be made for the subsequent
issuance of additional parity obligations, or subordinate lien
I
obligations, under any terms or conditions that may be set
forth in the resolution authorizing the issuance of the
obligations, Such obligations are and shall constitute
negotiable instruments within the meaning and for all purposes ,
V
a of the Texas Uniform Comseroial Cods, provided that the
obligations shall be exacuted, end may be made ria4samable prior
to maturity, and may be issued in such form, denominations, and
manner, and under such terms, conditions, and details, and may
i
be sold in such manner, at such price, and under such terns,
and said obligations shall bear interest at such rates, all as
y shall be determined and provided in the resolution suthotixinq i
j the issuance of the obligations, It so provided in the
authorizinl resolution, the proceeds trou the sale of the
i
t obligations may be used for paying interest on the obligations
during the period of the acquisition or construction of any
facilities to be provided through the 'issuance. of the
obligations, for paying expenses of operation and sulatename
of facilities, tot _cresting'a reserve fund for the payment of
the principal of and Interest an the obligations, and for
creating any other funds, and such proldads way be placed on
time deposit or Invested, until needed, all to the extent and
in the manner provided in the outhorisinq resolution. The ,
district may pledge all or any part of its reveauea, ladomw, or
r
receipts from fees, rentals, hates, charges,' and dontrict
t
eeefo 1
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AIM
pfFgjyi.:,M.~ r..
R NF-]'Alt
ptpceeds or payments to the payment of the obligations,
including the payment of principal, interest, and any other
i
amounts required or permitted in connection with the
obligoti.ons• The pledged fees, rentals, rates, charges,
prock^ar: )r payments shall be fixed and collected in amounts
l that i,Ll be at toast sufficient, together with any, other
j
pledged resources, to provide for the payment of expenses in
connection with the obligations, and operation, maintenance,
and other expenses in connection with the aforesaid
fr facilities. Said obligations may be additionally secured by €
mortgages or deeds of trust on any real property owned or t
~ o be i
1 iI acquired by the district, and by chattel mortgages or liens on
any personal J t
property appurtenant to such real propertyl and
the bard may authorise the execution of trust indentu'ax,' j
mortgages, deeds of trust, or other forme of oncuarbranaos to
evidence sane, Also, the district ma 1
Y pledge to the payasenL of
j
1 the obligations all or any part of any grant, donation,
r revehusa, or lnooato received or to be received from the United
r I~
States government or any other public or private source, i
i whether pursuant to an agreeeent or cEherwlee. All bonds, a
r
E rdthin the swaVrinj of Article 717k-E, Vernon's Teaas Civil
Statutes, as ascended, issued
pursuant to this Neat, and the
apgropriste proceedings `authorising their Issuance shall be
submitted to the Attorney oenerel of the state, of Texas for
examination, if said bonds recite that they are secured by a
pledge of revenues of any contract, a copy of such contract and
the procerediilga relating thereto shall be submitted to the
attorney general, tf he finds that .such bonds have base
authorised and any such contract has been 'asade in accordant*
I with law, he shall approve the bonds and any such contract, and €
r
r thereupon th1 bonds shall be registered bY.the Co"treliert of
€ t public Acdounts of the State of Texats$ and after such approval i
and registration, such bonds and any such contract shall be
: df 110
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iace,steststle in any court or other forum for any reason, and
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f shall be valid and binding obligations in accordance with their
terms for all purposes. The issuance of obligations by the
I
district shall be in accordance with the provisions of Article
717q and Article 717k-61 Vernon's Annotated Texas Civil
I
Statutes, as amended, as applicable.
(b) The district is authorized to enter into any
i
E contracts with the United States of. America, its agencies, any
municipality, or other party, public, private, or non-profit, '
considered necessary in the ezerclse of the powers and purposes
of the district. The district is also authorized to enter into {
contracts for the acquisition, purchase, rental or leasing or
{
A operation of the water production, water supply, water
II filtration or purification, water supply facilities, or other i
i
{ water or oastewater facilitisr which are owned or operated by
t, (f such contracting party, The district Is authorised to acquire {
i i water appropriation permits and other - necessary permits i
directly from the appropriate agency of the state or from
owners of permits. contracts requiring a payment of money
by I
the district may be made payable from any source of funds, 1
i
general or specific, as may be determined by the board,
t, UCT7oN to, bracts by Municipalities, Any and all ~
municipalities, public sgenciesp political subdivisions, and
say non-protit water supply corporation doin business wholly
or partially within the district, and all subdistrict* are i '
i esp;eesly authorised to enter' into MAY contrasts with the ~
district that are dewed appropriate by the respective
' governing bodies thereof, Such governing bodies are authorised
` to pledge to the payment of say Much contracts any source of
revenues that may be available to the overnin I
4 C gyp including
the levy and collection of ad Valorem taxes, it such
municipality or subdistrict has the power to levy and collect
such taxes, subject only to the elections, it any, that are
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required ❑r appllcab.e law, to be held prior to the levy of ad
valorem taxes. To the extent a governing body pledges funds to
the payment of any such contract that ar
e to be derived from
j
its own water system or Its wastewater system or its combined
system, such payments shall constitute an operating expense of
such system.
SECTION 11. DeCO_aitor~. The
~ board, by order
1 resolution, shall designate one or more banks inside or outside
the district to serve as depository for the funds of the
district. Except as herein Provided, all funds of the district
shell be deposited in the depository bank or banks. The funds
of the district may be invested as provided in the laws of the
i
State of Texas for the investment of county funds and may be '
invested in accordance with the provisions of the
Pub2iC,►unds i ~
Investment 'Act of 1947, as the Sam may be amendad from tlaw to,
time, The funds of the district shall be secured in the manner
provided by the laws of the State of Texas for public luAds. t
SECTION 19, $lauhrL Power of Muw, , .J.
This
met does, Act exempt the district or any subdistrict or any land
situated within the district from the teres and
arovisionr of
any applioibla ordinances, codes, resolutions, platting and 1
soni,nq requiramknte, rules or rsqulations of any mualcipallty.
I+ PUT 'II ;
SUODISTAICTS NZTMIN MITMOAZTy
i" SECTION 13, j
Cr•+tian of 6ubdia riots,
(a) To provide for the orderly development of water,
waat•w.tar, and other servio•s of the district within its
boundaries and
to prevent unrusauruY ' duplication of
, i
facilities, the district is authorised to create rubdistridtr, f
h p•titicn r
•4uestinq the creation of subdistricts within the
district may be presented to the board of the district, Any
i such
f II .
petition must be Signed by at lust twenty-five (2e)
Persons who own Property within the boundaries of the proposed
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{ subdistrict, Qr such petition may be submitted by the governing
body of a municipality when accompanied by a resolution or
I
ordinance of such governing body authorizing the submission of
such petition. Any such petition shall specify, at a minimum,
j a metes and bounds description of the boundaries, of the
i
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proposed subdistrict, the general nature of the improvements to
be acquired, constructed or otherwise irhplemented within the
t
subdistrict, the necessity and feasibility of such
1 improvements, and 't ha proposed method for kundinq such
(r~~l improvements. The petition shall state oo its face whether the
1
power to levy and collect ad valorem taxes iHthin and solely
within the subdistrict is requasted, if `a subdistrict is
' proposed within the corporate limits or extraterritorial
A jurisdiction of a municipality, the petition requesting the i
creation of the subdistrict shall be accompanied by an official i
action of the governing body of the municipality is whose
jurisdiction the subdistrict is f
• proposed approving that creation
of such subdistrict, Should the
' rI Governing body of the {
( municiptil y in whose jurisdiction the subdistrict is proposed I
{ objecs: 'to the creation of such subdistrict, than the
subdt_5rict shall of be Created within the incorporated limits 1
i or the extraterritorial jurisdiction of that municipality.
N f (b) The bosed shall set a date for a hearing on such
l petition not leas thin thirty (30) nor more than ninety (90)
~...wll ......1ww✓✓~ ' days after the day the petition it
Dresanted to the district. I '
Notice of such hearing shall be gives to each municipality
within whose boundaries or extraterritorial jurisdiction the
E .
proposed subdistrict would be located, A copy of the notice of
the hearing shill also be posted to throe (3) public places
r` located within the r proposed subdistrict and at the county
Courthouse at least' fourtafn (14) days prior to the date set
for the hearing, Notice of the hearidq shall also be p4blished
at least one (1) time In a newspaper of general circulation
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pablished in the county at least ten (10) days prior to the
i
date of the hearing,
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(c) Any interested psrscn may appear at the hearing for
{ purpose of supporting or '
{ the the creation of the
subdistrict in accordance with the petition, The hearing shall
be conducted in accordance with the procedures established by
the board,
(d) After the public hearing, the board shall enter an
order making its findings in the official records of the
district, If the board deems the creation of a subdistrict to
be feasible and
practical and finds that the creation of the
!
' proposed subdistrict will be `
beneficial to the public,, will benefit the residents of and the land included in the proposed
{
subdistrict and will contribute to the orderly -growth and
devetn i
pment of the ra9ionsl water and wastewater systems within ;
the district, then the board shall enter in order granting tM ~
petition and ordering the creation of the subdistrict in
E
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accordance with subsection (e) of this asetion. The !ward
"j I + shall include its findings in the erde: which shall be filed In
t ! the official' records of the district. The order shall define
C
t{a the boundaries of the subdistrict, but.
It, does not have to
i include all of the land desocibed in the petition if the board j
in its Judgment deterwiges that a. modification or chaage in the
s subdistrict to necessary or beneficial to the
public. It the ~
board finds to the contrary, it shall enter an order dismissing G
the petition and the proposed subdistrict shall not be created,
but a dismisesl order shall be without prefudtoo to the ability
to petition for the creation of a subdistrict covering the some
territory at a'later time.
(a it ) the boss orders the creation of ~a subdistrict ~
for which the power to levy and collect ad valorem taxes Vila
not requested in the petition, the subdistrict shall be created
and In existenoe from and after the da+,e stated !n the order 'of r
,
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the district, Al thout the necessity of a confirmation election
within the boundaries of the subdistrict and any such
t
subdistrict shell not have the power to levy or collect ad
valorem taxes, if the board enters an order granting a'
petition that seeks the power to levy and collect ad valorem
taxes within tho subdistrict, then the subdistrict shall not be
created until and unless a confirmation election is called,
conducted and held by the district' within the proposad €
boundaries of the subdistrict and a majority of the qualified
voters voting thereat confirm the creation of the subdistrict
in accordance with the provisions of subsection (f) of this
section. If the subdistrict is confirmed at such election, j
then the subdistrict shall have the power to levy and collect 1-
111 E ad valorem taxes for the maintenance and operation of the
+ ` subdistrict and for the payment of contracts of the district)
provided that no such taxes shall be levied and collected until
and unless previously voted at elections held in accordance
I with subsection (t),
<i I
( (f) A _ confirmation election, when required by this
i
section, and any election to authorise the 'levy and collection
of ad valorem taxes within a aubdi4trlet for, maintenance
purposes shall be conducted in the manner -required by Chapter ~
I; Sa, Texas water code, tot the levy and collection of
! maintenance taxes by municipal utility distri4ts, Elections to !f
levy taxes in support of contracts shall be held in the suinner
and with tho effect provided by Chapter, 44, Texas Mater Cods,
r ~
for the issuance of bonds by municipal utility districts, The
confirmstiorl election required by this subsection, a
maintenance tax olection and an election authorising the levy
of taxes to support bonds or coattaots of the subdistrict swy
E
be combined into a single eleotlon, and any or all of such
e)lsotions may be hold on any day or date selected by, the
board, each such election shall be called, convened and held
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b{ tae Ward Ln accordance with the Texas Election Code and
Chapter 54, Texas Water Code.
(q) A subdistrict, if created in accordance with this
section, shall be a conservation and reclamation district under
Article XVI, Section 59 of the Texas constitution with the
limited powers granted in this section, The subdistrict
constitutes a political subdivision and a corporate body and
politic under the laws of this state. A subdistrict shall have
II 'the powers specified herein and shall have the same powers as i
1 ~
_ the district, but subject to the same limitations, and provided f-
that a subdistrict shall not be authorized to provide services
outside its boundaries, *so
apt that it may provide retail water !
It and sewer. services within its customer Service area as
certificated by any applicable reaulatory agency of the state
of Texas.
t I (h) If a subdistrict is created as specified above, the ~
subdistrict shall be governed by a board of supervisors '
consisting of ■t least five (S) supervisors. The initial 4oapd 1
of supervisors etsll be appointed by the district from among '
the residents of the subdistrict. The district Shall Mike Such
appointments for torso specified in the
f order creating the
subdistrict but not exceeding four (4) years froo the late of
appointment. Such initial supervisors are subject to ro"Val,
with or without cause, by action of the district, All '
vacancies shall be filled by the district. After the initial
appointment of the board of supervisors and prior to the
issuance of any bands, notate, or other obligations of the j
subdistrict, members of the board of supervisors shall be
elected in the manner provided by the laws of the State of i
Texas applicable to municipal utility districts, Notice and
the conducting of such election `shall be in sccoedsnoe with
such live,
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farm' ~
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In-IN The .aubdiateict shall have all the powers provided
i{ el"Where in this act and shall have ownership of and general
management powers over the affalcs, works and prnieats of the
{ subdistrict subject to the provisions of any contracts with the "
district, However, oho issuance of bonds by the subdistrict
shall not be effective until such Issuance is approved by
I official action of the district,
I f~l In those subdistrict* 'having the power to levy and
collect ad valorem taxes, the tax rates shall be established by
the board of eupervisnra on the basis of annual budgets
established at the same time and in the same manner as for
counties, and taxes shall be levied by the board of supervisors., f
(k) The members of the board of supervisors shall
receive no compensation for serving as a supervisor but may be
j
reimbursed for actual reasonable expenses necessarily, incurred
} ~ l
on behalf of the subdistrict or in the discharge of their
official duties.
{ j
li (1) Subdistriets created in accordance with this act may
only become participating masbers of the district.
SECTION 14, Conversion of M+tet Susaly Coreorat+~~ td j
liubdlstricts,
-Upon the adoption of r resolution by the
board of detectors of any non-profit water supper corporation
doing business wholly or partially within the boundaries of the t
ffff district and roquestinq such action, the board say consider the
gwetion of converting such non-profit water supply corporation
to + subdistrict by following the same- prooedures otherwise
roquirod by section 11 of this act and subsection (g},below. I
(b) The resolution of the board of directors required
above shall include, in addition to the information specified j
in section i3(r) for petitions to be filed with the board of I
the dietriot; a plan of conversion, including, -among others,
the proposed method for the transfer of assets and the
assumption of debts to the Subdistrict,
i
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9
i
e,.,M~av.ec~a3
•q4F N...
~y+ € Qc1 It determined to be appropriate by the board, the
f district, at the request of the board of directors of such
nonprofit water supply corporation, may establish a board of
supervisors in greater number than specified herein for other
! such subdistricts
(d) Notwithstanding any provision of this act to the
contrary, any water supply corporation that was a member of the
Denton County Steering Committee in connection with the Denton
!
I County Water and Wastewater Study Regional Master plan for 2010
may become either a contract member or a participating member
in accordance with the provisions of this act,
SECTION is, Meetings of Board of Suvervisors, The
1 board of supervisors of a subdistrict shall ho Id -regular,
special or emergency meetings at those times and on those dates
the board determines, I
SECTtON lb. Subdistriot Offieyi lseetina Elect, The 5
board of `supervisors of each subdistrict shall designate a
place within the rubdiatriat *a the requior office and matting
I place, except that the regular meeting pleas wry be at the ,
I
regular meeting place of the district if opprovgd by order of !
the district,
SECTION 11. gallaction of Taxet Nithin Subdirtricts.
' I
(a) The county tax arrasser~cohrator of the county
shall maintain the tax rolls and oollect taxes for any
subdistrict located in tM unincorporsted *too of tM county
and having taxing power in th* saint Smear as for taxet for the
f
county, The tax a~sdssor-oollector for the other subdistricts E
shall be as setected and shall perform the duties determined by
the board of supervisors.
(b) Reimbursement of the costs of the tax assessor' E
collector tot such services shall be paid by the subdistrict,
(c) Trees and other revenues collected within t
subdistrict shall be used solely for _purpotet within the
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subdistrict, except that the costs of administration of the
1 affairs of a subdistrict may be paid to the district in
1
accordance with contracts between the district and the
subdistricts. All tares and revenues of a subdistrict as
collected shall be deposited as
public funds into accounts of
the subdistrict approved by the district. All accounts of a
subdistrict shall be audited by an independent auditor and a '
i ,
copy of ouch audit shall be maintained in the official records
of the subdistrict and the district. All such funds may be
deposited or invested as permitted, for public funds.
1
~ PART I[I i ~
j MISCELLANEOUS
SECTION 18. Creation Expenses. The district is
authorized to pay all costs and expenses incurred in the
i I t
creation and organisation of the district, including but not
limited to the reimbursement of costs and expenses incurred by
the Denton County Steering COmmittee in the preparation of. the
Denton County Water and Wastewater study Regional Master Plan
k for 2010, and the U i
pper _Trinity NunidiPel Water: Authority,
Uc,, in the development and implementation of such study. The
district is outhorlacd to succeed to and assume the rights,
privileges, duties and responsibilities, including contractual
Obligatiods, incurred by the Upper Trinity Municipal Water ((i
` Authority, tad., a nonprofit corporation created to 'serve on an
interim basis pending the creation of the district,
SECTION it, DA Exemetioa. The secomplishaint of the
purposes stated in this act being for the benefit of the people
of the state and for the i
pprovesirnt for their Properties and
industries# the district and the subdistricts in carrying out
the Ourposes of this act will be parforalind an essential public
function under the constitution and shall not be required to {
pay any, tax or assesoawnt on any property or project owned,
operstad, leased, or controlled by the district or any part
-23 Y
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FYgC.E N1y
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t chereai, and the 'oonds or other obligations Issued hereunder
Y j
and their transfer and the income therefrom,' including the
j
profits made on the sale thereof, shall at all times be Etas
from taxation within the states
SECTION 24. Severability, If any ptovision of this
act or its application to any person or circumstance is held
invalid, the invalidity does not affect other provision of
i
application of this act that tan be given effect without the
invalid provision or application,- and to this and the
provisions of this act eta declared to be severahle, The terms
and pro0isions of this act are to be construed liberally' to
effoctuate the purposes, powers, rights, functions, and
authorities herein act forth,
SECTION 21 Noticg. The legislature specifically
I finds and declares that the requirements of Article XVI,
Section 54(d) and Section We) of the Texan Constitution, to
the extent applicable, have been met and accomplished in due
courge, time and order and that all notice Molesd to be given
relating to this act has been given, that all aPpcovals
required to be obtained pursuant thereto have been obtained,
and that the legislature has the authority and power to enact
f this sot:
II SXCTt" 21. eaeruenav, The importance of this j
E legislation and the crowded aandition of the Calendars 1n both
( 1 houses greste an esntgaywy, and an imperative 'public necessity
1 that the constitutional rule requiring hills to ba toad on
three several days in each house be suspended, end this rule is
f
betaby suspended, and that this act take effect and be in force s
from tad after its passage, and it is so snsotrl.
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