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HomeMy WebLinkAbout05-16-83 Meeting of the La Porte Area Water Authority Board Minutes LA PORTE AREA WATER AUTHORITY BOARD May 16, 1983 PRESENT: Cary Burnley, Jerry Bramlett, Travis Doughty, Susan Gilliland, Al Fields, Jack Owen; City Manager, John Armstrong; City Attorney The meeting was called to order by Cary Burnley at 6:10 P.M. A motion was made by Susan Gilliland and seconded by Travis Doughty to approve the minutes of April 25, 1983 as presented. The motion carried unanimously. A motion was made by Travis Doughty and seconded by Susan Gilliland to approve the minutes of April 28, 1983 as presented. The motion carried unanimously. The Oath of Office was administered by John Armstrong, City Attorney, to the two (2) reappointed members, Cary Burnley and Al Fields. Gary Burnley turned the meeting over to Jack Owen for election of officers. Al Fields nominated Susan Gilliland as President, this motion was seconded by Gary Burnley. The motion was made by Travis Doughty and seconded by Gary Burnley that nominations cease. This motion carried unanimously. Gary Burnley made a motion that Susan Gilliland be elected by acclamation, with this motion being seconded by Travis Doughty. The vote carried unanimously. Jack Owen turned the meeting over to Susan Gilliland, President. Susan called for nominations for Vice President. Gary Burnley nominated Al Fields for Vice President. The motion was made by Jerry Bramlett and seconded by Cary Burnley that nominations cease and Al Fields be elected by acclamation. The vote carried unanimously. Susan Gilliland called for nominations for Secretary. Jerry Bramlett nominated Travis Doughty. A motion was made by Gary Burnley and seconded by Al Fields that nominations cease and Travis Doughty be elected by acclamation. The vote carried unanimously. With no further business to discuss, a motion was made by Gary Burnley and seconded by Al Fields to adjourn at 6:40 P.M. The vote carried unanimously. <;)/l~- Travis Doughty, NOTICE OF PUBLIC HEARING Notice is hereby given that a proposed use hearing for general revenue sharing purposes will be held on July 20, 1983, for all interested citizens of the City of La Porte. The amount of general revenue sharing funds to be discussed for this fiscal year is approximately $390,500. The meeting will be held at 7:00 P.M. for the purpose of discussion of possible uses of general revenue sharing funds at the City Hall, 604 West Fairmont Parkway, La Porte, Texas. All interested citizens will have the opportunity to give written and oral comment on uses of the funds. Senior citizens are encouraged to attend and comment. CITY OF LA PORTE Cherie Black Assistant City Secretary PUBLISH: July 9, 1983 , \ Turner Collie (6Braden Inc. PO BOX 13089 HOUSTON, TEXAS 77219 5757 WOODWAY 713 780-4100 TElEX 774185 TCB HOU June 6, 1983 La Porte Area Water Authority P.O. Box 1115 La Porte, Texas 77517 Attn: Mr. Jerry Hodge Dear Mr. Hooge: Attached please find a summ'ary of the positive responses resulting from the Public Meeting held April 28, 1983. To date we have received a written or verbal response from a representative of each entity that attended the meeting. The summary list shows the average daily demands requested for each entity outside the La Porte Area Water Authority boundary. The demand number for the La Porte Area Water Authority bound- ary was calculated based upon the water-use factor established on page 6 in the Technical Memorandum presented at the April 25 Board Meeting. We have estimated demand numbers for the City of Deer Park from well permits. Following your meeting with representatives from the City of Deer Park, we will revise these numbers as required and proceed with completion of the study. Sincerely, 1k;t I. &Jutv Neil E. B~;~~~:-~h.D., P.E. Project Director NEB/kdc Attachment ~ V,{ \ ,\ \ \ f'.. '\ I \, 'Ii ~J./ ^J \. ~~L r) ,--::-; \? +P--- .,.,,~~ cc: Susan Gilliland r:(~ hj/tJl1 & ro~~=.'t , ( ~{ /)) )311]) J" ',- r., ) C\ , ") i'\..),/) 1.#' '- ;:; Lr. )~ 1" '\ c> '. j'T. '. ,f. (1 '! lv"'; ,'I '} I \' U 7' CONSUlTINC ENCINEERS . TEXAS AUSTIN/DAllAS/El PASO/HOUSTON/PORT ARTHUR COLORADO DENVER/GRAND JUNCTION ,. . ';"-'"\:"~M:":"~<~::'.-;--:-;;~_-:>,--:>:.-:;':~"".~~~;:'_~-_-- Summary of Water Requirements La Porte Area Water Authority Avg. Daily Demands La Porte Area Water Authority Boundary (including College View, Spenwick and Bay Shore MUD's) Union Carbige Corp.-Linde Div. Grief Bros. Corp. Arco Chemical Co. City of Seabrook Harris County WClD #50 Deer Park expressed an interest Demand and Delivery point to be determined ., Estimated Demand per Well Permit Total Potential Demand 1985 3,008,617 gpd 16,000 gpd 46,000 gpd 24,000 gpd 1,000,000 gpd 600,000 gpd 4,694,617 gpd Use 4.7 mgd 1985 2.5 mgd 7.2 mgd -.....,....- 2000 5,540,987 gpd 20,000 gpd 46,000 gpd 28,000 gpd 2,000,000 gpd 800,000 gpd 8,434,987 gpd Use- 8.5 mgd 2000 4.6 mgd 13.1 mgd . '. Summary of Water Requirements La Porte Area Water Authority Avg. Daily Demands La Porte Area Water Authority Boundary (including College View, Spenwick and Bay Shore MUD's) Union Carbide Corp.-Linde Div. Grief Bros. Corp. Arco Chemical Co. 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Congress Avenue Austin, Texas TEXAS WATER COMMISSION ,Fet: McDonald, Chairman P<Pey B. Hardeman l'Ot R. Carroll ~ i.I. Harvey Davis Executive Director March 6, 1981 REcr1VE:D MAR 1 0 1981 Honorable William P. Clements, Jr. Governor of Texas Honorable W. P. Hobby President of the Senate Honorable Bill Clayton Speaker of the House Gentlemen: Re: H.B. 1311 ~ LaPorte Area Water Authority Recommendations of the Texas Department of Water Resources pursuant to Article XVI, Section 59d, Texas Constitution, concerning a bill to create a conservation and reclamation district. H.B. 1311 was received by the Department from the Governor of 7exas on February 27, 1981. The staff has evaluated the proposed legis- lation and would recommend that it be changed in two ways. First, the legislation should provide for a confirmation election. Second, Department approval should be required for any proposed projects or issuance of bonds for the improvements. Sincerely yours, Harvey Davis EXeGutive Director cJ:~~presentative Ed R. Watson ;'; l-is. Betty Hurray, Chief Clerk, House ~- Ms. Betty King, Secretary, Senate 725": -t/ :~CK e;1 ~(",jl"/- ..; ..' ;J(Pl.rjN'~E"'~ /f?"~ hE,J oll../f~<Jl '41/v>v~.ID.~j' 15(' J I .:f~.) y~ VLfb.,/rd he.Ct~ -i> ,A)c~.~"v~ i~~l;C..($ ,..",,,,. ~~ f) ,/) 'd_ ///,/ <-I~ U/v. a\. 3-lt-tfl ~V ;V:l{;"5t15-v >h /"fV 'ff&7", ~ P.O. Box 13087 Capitol Station . Austin, Texas 78711 . Area Code 512/475-3187 .;. ,~,;'~~ ,"'. if! By Watson H.B. NOe A ~ILL TO BE ENTITLED 1 AN ACT 2 relating to the creation, administration, powers, duties, operations, 3 functions, and financing of the La Port~ Area Water Authority. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 5 Section Ie Under and pursuant to the provisions of Article XVI, 6 Section 59, Consti tution of Texas, a conservation and reclamation 7 district is hereby created and established in Harris County, Texas, 8 to be known as "La Porte Area Water Authori ty" (hereinafter called 9 the "authority") which will be a governmental agency and a body 10 politic and corporate. The creation and establishment of the author- 11 i ty is hereby declarpj to be essential to the accompl ishment of 12 the purposes of Ar L~.(;le }.VI, Section 59, Constitution of Texas. 13 Section 2. It is determj ned and found that the boundaries and 14 field notes of the ~uthority fo~m a closure; and jf any mjstake js made 15 in copying the field notes in the legislative process, or otherwise a 16 mistake is made in the field notes, it shall in no way affect the 17 organization, existence and validity of the authority, or the right 18 of the authority to issue revenue bonds or revenue refunding bonds 19 for the purposes for which the authority is created, or to pay the 20 principal and interest thereon, or in any other manner affect the 21 legality or operation of the authority or its governing body. 22 SecticO'O 3. It is determined and found that all of the land 23 and other property included within the area and boundaries of the 24 authori ty and lands and properties which may feasibly be served by 1 1 the authority will be benefited by the works and project which are 2 to be accomplished by the authori ty pur~;uant to the powers con- 3 ferred by the provisions of Article XVI, SecU.on 59, Constitution 4 of Texas, and that said authority was and is created to serve a 5 public use and benefit. 6 Section 4. The authority shall compd.se all of the territory 7 contained within the fOllowjng described area: 8 BEGINNING at a point in the south right-of-way line of Spencer 9 Highway (100 foot wide), said paint being the intersection of the 10 south right-of-way line of Spencer Highway and the east line of the 11 San Jacinto College 141 acre tract; said point being coincident 12 with the northwest corner of College View Municipal Utility District 13 as per Article 8280-381 of Vernon's Civil Statutes of the State of 14 Texas; 15 THENCE, southerly along the west line of the College View 16 Municipal Utili ty District and the east line of the San Jacinto 17 College 141 acre tract to its intersection \vith thE. north linG of 18 Fairmont Parkway 250 foot right-of-way, same being the southeast 19 corner of the said San Jacinto College 141 acre tract and the 20 southwest corner of the College Vie~ Municipal Utility District; 21 THENCE, southerly along a projection of the west line of the 22 College View Municipal utili ty District ar:d the east line of the 23 San Jacinto College 141 acre tract to its intersection with the 24 south right-of-way line of Fairmont Parkway 250 foot right-of-way 25 to a point for corner; 26 THENCE, east along the south line of Fairrnont Parkway 250 foot 27 wide right-of-way to its intersection with the west line of a 200 2 1 foot wide Harris County Flood Control District right-of-way for 2 Willow Spring Gully which is des ignated as Ditch No. Bl12-00-00, 3 for a point for corner; 4 THENCE, southwesterly coincident with the meanders of the west 5 line of the 200 foot wide right-of-way of Willow Spring Gully, 6 Harris County Flood Control District Ditch Bl12-00-00, to its inter- 7 section with the north corporate limit of the City of Pasadena, same 8 being the north line of a 200 foot wide strip annexed by the City of 9 Pasadena and also being the south line of the W. M. Jones Survey and 10 the north 1 ine of the George B. McKinstry Survey, Abstract No. 47, 11 for a point for corner; 12 THENCE, east with the north line of the George B. McKinstry 13 Survey A-47 and the south line of the W. M. Jones Survey and the 14 corporate limit line of the City of Pasadena to the east line of 15 the 200 foot wide right-of-way of Willow Spring Gully, Harris County 16 Flood Control District Ditch Bl12-00-00; 17 THENCE, southwesterly with the east line of the 200 foot wide 18 right-of-way of Willow Spring Gully Harris County Flood Control 19 District Ditch Bl12-00-00 to a point 469 feet south of the north 20 line of the George B. McKinstry Survey A-47; 21 THENCE, east 469 feet south of and parallel to the north line 22 of the George B. McKinstry Survey A-47 to a point 200 feet west of 23 the west line of that certain tract of land conveyed to Dart Industries 24 and El Paso Products Company by Friendswood Development Company 25 by deed dated March 14, 1974, and recorded under Film Code Number 26 103-11-0868, Deed Records, Harris County, Texas; 27 THENCE, north 200 feet west of and parallel to the west line 3 1 of the property owned by Dart Industries and El Paso Products 2 Company a distance of 469 feet to the north line of the George B. 3 McKinstry Survey A-47 and the corporate limit line of the City of 4 Pasadena, Harris County, Texas; 5 THENCE, easterly along the north line of the George B. McKinstry 6 Survey, Abstract No. 47, to its intersection with the center line 7 of Big Island Slough, for a point for corner; 8 THENCE, southerly along the meanders of the center line of Big 9 Island Slough to its intersection with a 1 ine parallel to and 3410 10 feet more or less measured at right angles southerly from the north 11 line of the George B. McKinstry Survey, Abstract No. 47, for a point 12 for corner, said point being on the north line of that territory 13 annexed to the City of Houston by Ordinance No. 65-1555 B-R; 14 THENCE, easterly along the north line of the said territory 15 described by City of Houston Ordinance No. 65-1555 B-R, and its 16 easterly extension, to its intersection with the west right-of-way 17 line of the G. H. & S. A. Railroad, for a point for r0rneri 18 THENCE, southerly along the west right-of-way line of the 19 G. H. & S. A. Railroad to its intersection with the westerly extension 20 of the north right-of-way line of McCabe Road; 21 THENCE, easterly with the westward projection of the north 22 right-of-way line of McCabe Road, and the north right-of-way line of 23 McCabe Road, and the eastward projection of the north right-of-way 24 line of McCabe Road, to a point in the east right-of-way line of 25 Old State Highway 146 (also known as South Broadway), said point 26 being the intersection of the north right-of-way line of McCabe 27 Road, extended easterly, with the east right-of-way line of Old 4 1 State Highway 146; 2 THENCE, southerly along the east right-of-way line of Old 3 State Highway 146 (also known as South Broadway) to a point for 4 corner, said point being the intersection of the east right-of~way 5 line of State Highway 146 with the north line of the Pine Bluff 6 Addition and the south line of the Crescent View Addition; 7 THENCE, easterly along the north line of the Pine Bluff Addition 8 and the south line of the Crescent View Addition to a point at the 9 intersection of the north line of the Pine Bluff Addition with the 10 westerly shoreline of Galveston Bay; 11 THENCE, northwesterly, northerly, and northeasterly following 12 the meanders of the shoreline of Galveston Bay to its intersection with 13 Donaldson Avenue, being a south city limit line of the City of 14 Morgan's Point; 15 THENCE, northwesterly along the north right-of-way line of 16 Donaldson Avenue to its intersection with the east right-of-way of 17 Blackwell Street; 18 THENCE, north along the east right-of-way line of Blackwell 19 Street, to a point of intersection with the south right-of-way line 20 of Barbours Cut Boulevard; 21 THENCE, westerly along the south right-of-way line of Barbours 22 Cut Boulevard, to the northeast corner of Block 978, Town of La Porte, 23 Harris County, Texas; 24 THENCE, north across Barbours Cut Boulevard, to a point for 25 corner in the north r igh t-of-way 1 ine of Barbours Cut Boulevard; 26 THENCE, west along the north right-of-way line of Barbours Cut 27 Boulevard to its intersection wi th the east right-af-way line of 5 1 North Broadway, for a point for corner; 2 THENCE, north along the east right-of-way line of North Bro&dway, 3 and along the east right-of-way 1 ine of North Broadway f extended to 4 its intersection with the shoreline of San Jacinto Bay, being the 5 most northwesterly corner of the corporate 1 imi t of the Ci ty of 6 Morgan's Point; 7 THENCE, easterly along the most north city limit line of the 8 City of Morgan's Point, to a point of intersection with a line 9 which is parallel to and 2500' westerly from the center line of the 10 Houston Ship Channel; 11 THENCE, in a northwesterly direction along the line which is 12 parallel to and 2500' from the center line of the Houston Ship 13 Channel to a point of intersection with the east right-of-way line of 14 State Highway 134; 15 THENCE, south along the east right-of-way line of State Highway 16 134, and the east right-of-way line of State Highway 134, projected 17 south, to a point for corner in the south right-of-way line of 18 State Highway 225; 19 THENCE, southeasterly along the south right-of-way line of 20 State Highway 225, to its intersection with the west right-of-way 21 line of Underwood Road; 22 THENCE, south along the west right-of-way line of Underwood 23 Road to its intersection with the north right-of-way line of Spencer 24 Highway, for point for corner; 25 THENCE, west along the north right-of-way line of Spencer 26 Highway to its intersection wi th the east property 1 ine of the San 27 Jacinto College 141 acre tract, projected north; 6 1 THENCE, south across the right-of-way of Spencer Highway along 2 the north projection of the east property line of the San J'c~ci.nto 3 College 141 acre tract, to the POINT OF BEGINNING. 4 Section 5. A. The authority is hereby vested with, and shall 5 have and exercise, all of the rights, powers, priv ileges, author i- 6 ties and functions conferred by the general laws of this state appli- 7 cable to municipal utility districts, including without limitation 8 those conferred by Chapter 54, Title 4, Water Code, with all amend- 9 ments and additions theretov but if any provision of such general 10 laws shall be in conflict or inconsistent with the provisions of 11 this Act, the provisions of this Act shall prevail. All such general 12 laws applicable to municipal utility districts not in conflict or 13 inconsistent wi th the provisions of this Act are hereby adopted and 14 incorporated by reference with the same effect as if incorporated 15 in full by this Act. The powers and functions conferred on the 16 authority are granted subject to the policy of the state to encourage 1 7 the development and use of integrated area-wide waste collection, 18 treatment and disposal systems to serve the waste disposal needs 19 of the citizens of the state, it being an objective of the policy 20 to avoid the economic burden to the people and the impact on the 21 quality of the waters in the state which result from the construc- 22 tion and operation of numerous small waste collection, treatment 23 and disposal facilities to serve an area when an integrated area- 24 wide waste collection, treatment and disposal system for the area 25 can reasonably be provided. 26 B. Not by way of limitation, the authority shall have and is 27 hereby expressly granted the following rights, powers, privileges 7 1 and functions: 2 (1) The right, power and authority to acquire surface and/or 3 underground water supplies from sources both within and without 4 the boundaries of the authority and to conserve, store, transport, 5 treat, purify, distribute, sell and deliver water, both surface 6 and underground, to persons, corporations (public or private), muni- 7 cipal corporations, political subdivisions of the State of Texas, 8 and others, inside and wi thin thirty (30) miles of the boundaries 9 of the authority; 10 (2) The right, power and authority to collect and transport 11 the domestic, industrial or communal wastes of the enti ties des- 12 cribed in the preceding subsection, to include, but not by way of 13 limitation, the purposes of the Regional Waste Disposal Act (Chapter 14 25, Title 2, Water Code); 15 (3) The right, power and authority to make, purchase, con- 16 struct, lease or otherwise acquire property, works, facilities and 17 improvements (whether previously existing or to be made, constructed 18 or acquired), within or without the boundaries of the authority, 19 necessary to carry out the rights, powers and authority granted by 20 this Act and the general laws; 21 (4) The right, power and authori ty to enter into contracts 22 of not exceed ing forty (40) years duration wi th persons, corpora- 23 tions (public or private), municipal corporations, including the 24 City of La Porte, political subdivisions of the State of Texas, 25 and others, on such terms and conditions as the board of directors 26 of the authority may deem desirable, fair and advantageous for the 27 performance of its rights, powers and authorities under this Act; 8 9 1 Statutes, as amended, to provide disposal systems, and prior. to 2 acquiring or constructing waste treatment and disposal facilities, 3 the authority must acquire the consent of the Gulf Coast Waste Dis- 4 posal Authority, or the Texas Water Quali ty Board if the consent 5 of the Gulf Coast Waste Disposal Authority is unreasonably withheld 6 or delayed. 7 Section 6. It shall not be necessary for the board of directors 8 to call or hold an election for the confirmation of the authority. 9 Section 7. It shall not be necessary for the board of directors 10 to call or hold a hearing on the exclusions of land or other property 11 from the authority; provided, however, that the board shall hold such 12 hearing upon the written petition of any landowner or other property 13 owner within the authority filed with the secretary of the board 14 prior to the passage of the first order or resolution authorizing 15 bonds to be issued by the authori ty. The board may act on said 16 peti tion in the same manner that it may act on a petition for the 17 add i tion of land under Sections 54.711-.715, Ti tJ e 4, Wa ter Code, 18 and no notice of hearing shall be required other than notice of 19 the meeting whereat such action is taken pursuant to Section 54.109, 20 Title 4, Water Code. The board on its own motion may call and hold 21 an exclusions hearing or hearings in the manner provided by the 22 general law. 23 Section 8. Land may be added or annexed to the authority in 24 the manner now prov ided by Chapter 54, Title 4, Water Code, and 25 without the consent of any city as provided in Article 970a, Vernon's 26 Texas Civil Statutes, as amended, either before or after revenue 27 bonds of the authority have been issued, and no such boundary change 10 1 shall have any effect upon the validity of any bonds of the authority. 2 Section 9. A. The authority shall have no right, power or 3 authority to impose, levy, assess or collect taxes on any property, 4 real, personal or mixed, nor shall the authori ty have the r igh t, 5 power or authority to issue bonds or create indebtedness which would 6 be payable directly from ad valorem taxes levied by the authority. 7 B. The enactment of this law shall not have the effect of pre- 8 venting the organization of conservation and reclamation districts 9 or of preventing boundary changes of such districts within the boun- 10 daries of the authority as authorized in Article XVI, Section 59 11 and Article III, Section 52 of the Constitution of Texas. To encour- 12 age the state policy referred to in Section 5(A) hereof and to prevent 13 wasteful duplication, all conservation and reclamation districts 14 created in the future wi thin the boundaries of the authority shall, 15 however, contract with the authority for the provision of facilities 16 and services that the authority is empowered to provide under this 17 Act whenever the authority has or in its determination can provide 18 such facilities and services. 19 Section 10. A. All powers of the authority shall be exercised 20 by a board of five directors, none of whom shall be a member of the 21 city council of the City of La Porte during his term as director. 22 One director must reside wi thout the ci ty limi ts of La Porte but 23 within the boundaries of the authority. By September 1, 1981, the 24 city council of the City of La Porte shall assign position numbers 25 to each director's office and shall appoint directors to such posi- 26 tions for two-year terms as follows: those directors occupying 27 Positions Number 1 and Number 2 shall serve until September 1, 1982, 11 ~ 1 and thereafter until a successor has been appointed and qualified; 2 those directors occupying Positions Number 3, Number 4 and Number 5 3 shall serve until September 1, 1983, and thereafter until a successor 4 has been appointed and qualified. Upon the expiration of such terms 5 the city council of the City of La Porte shall fill such positions by 6 appointment of a director to each position for a term of two years, 7 so that two directors shall be so appointed in one year and three 8 directors in the next year in continuing sequence. Vacancies in the 9 office of director, because of the failure or refusal of one or more 10 directors to qualify or serve, because of death or incapacitation, 11 or for any other reason, shall be filled by appointment of the city 12 council of the City of La Porte for the unexpired term. Each director 13 shall serve without emolument or compensation paid by the authority. 14 B. Each director shall qualify by subscribing to the consti- 15 tutional oath of office and giving bond in the amount of $5,000 for 16 the faithful performance of his duties. The cost of such bond shall 17 be paid by the authority. Such bond of the first directors shall be 18 approved by the Mayor of the City of La Porte and filed in the office 19 of the Ci ty Manager of the City of La Porte, Texas. The bonds of 20 directors appointed after the first directors shall be approved by 21 the authority's board of directors and shall be recorded in a record 22 kept for that purpose in the office of the authority. 23 C. At the first meeting in September of each year, or after 24 the annual vacancies in the board of directors are filled as pro- 25 vided herein and such directors are qualified, the board shall elect 26 a president, a vice president, a secretary and any other officers as 27 in the judgment of the board are considered necessary. The vice 12 1 president shall perform all duties and exercise all power conferred 2 by this Act or the provisions of the general law upon the president 3 when the president is absent or fails or declines to act. Any order 4 adopted or other action taken at a meeting of the board at which 5 the president is absent may be signed by the vice president, or the 6 board may authorize the president to sign such order or other action. 7 D. At the direction of the board of directors, the general 8 manager of the authority, as hereinafter provided, may execute all 9 contracts, construction or otherwise, entered into by the board on 10 behalf of the authority. 11 E. A majority of the duly qualified directors shall constitute 12 a quorum of any meeting of the board of directors, and a concurrence 13 of a majority of those directors present and voting shall be suffi- 14 cient in all matters pertaining to the business of the authority, 15 including the letting of construction work, purchase of existing 16 facilities, and matters relating to the construction work. 17 Section 11. A. The City Manager of the City of La Porte shall 18 be the general manager of the authority for so long as the Ci ty of 19 La Porte has such an off icer. If the position of Ci ty Manager is 20 ever abolished, the chief executive officer of the Ci ty of La Porte 21 or his designee shall serve as general manager. The general manager 22 shall serve wi thout emolument or compensation paid by the board. 23 B. The general manager is the chief executive officer of the 24 authority. Under policies established by the board, he is respon- 25 sible to the board of directors for the following duties: 26 (1) administering the directives of the board; 27 (2) keeping the authority's records, including minutes of the 13 1 board's meetings; 2 (3) coordinating with state, federal and local agencies; 3 (4) developing plans and programs for the board's approval; 4 (5) formulating a budget for the authority's fiscal year, as 5 hereinafter provided, subject to the approval of both the board and 6 the city council of the City of La Porte; 7 (6) hiring, supervising, training and discharg ing the author- 8 ity's employees; 9 (7) contracting for or retaining technical, scientific, legal, 10 fiscal and other professional services; and 11 (8) performing any other duties assigned to him by the board. 12 C. The general manager and each employee of the authority 13 charged with the collection, custody or payment of any money of the 14 authori ty shall execute a fidel i ty bond, approved by the board of 15 directors as to form, amount and surety. The authority shall pay 16 the premiums on the general manager's and the employees' bonds under 17 this section. 18 D. Pursuant to the provisions of the Interlocal Cooperation 19 Act, Article 4413(32c), Vernon's Texas Civil Statutes, as amended, 20 the authority shall offer to enter into an interlocal contract or 21 agreement with the Ci ty of La Porte for the performance of adminis- 22 trative functions, as defined therein. 23 Section 12. A. The authority is authorized to: 24 (1) reimburse the City of La Porte for all reasonable expenses 25 incurred in connection wi th the creation and establishment of the 26 authori ty, includ ing publication costs, legal fees and charges for 27 the services of other consultants and other incidental costs; 14 1 (2) with the prior approval of the city council of the City 2 of La Porte, borrow money from time to time for the purpose of cQrry- 3 ing out any of the powers granted to the authority by: 4 (a) issuing and selling negotiable or nonnegotiable notes and 5 providing the terms and conditions of these notes and the rights of 6 the holders of these notes payable from and secured by the sources 7 described in this Act; 8 (b) issuing and selling revenue bonds without the necessity of 9 an election and providing the terms and conditions of these bonds and 10 the rights of the holders of these bonds payable from and secured by 11 the sources described in this Act; and 12 (c) delivering such notes and bonds to the United States, or 13 any agency or instrumentality thereof, or to the State of Texas, or 14 any agency or instrumentality thereof, when it is determined by the 15 board of directors to be in the best interest to the authority. 16 (3) invest any money held in any sinking fund, reserve fund, 17 or other fund or any money not required for immediate use or dis- 18 bursement in the securities as provided in this Act; 19 (4) apply for, accept and administer grants, loans and other 20 assistance from the United States and any agency or instrumentality 21 of this state or any other state to carry out the purpose of this 22 Act, and to enter -into any agreement in relation to these grants, 23 loans or other assistance as may be provided by the authority which 24 is not in conflict with the constitution of this state; and 25 (5) fix, charge, alter and collect reasonable rentals, rates, 26 fees and other charges for the use of any facilities or for any 27 services rendered by the authority and provide for the imposition of 15 1 reasonable penalties for any of these rentals, rates, fees and charges 2 that are delinquent, and further to comply with its mandatory duty 3 to fix, charge, alter and collect the rentals, rates, fees and charges 4 which are sufficient to produce revenues adequate to fulfill any 5 agreement wi th the holders of bonds or notes issued under the pro- 6 visions of this Act. 7 B. All bonds and notes of the authority shall be authorized 8 by resolution or resolutions of the board, concurred in by at least 9 a majority of such board members and further approved by the city 10 council of the City of La Porte prior to issuance thereof. Such 11 bonds and notes shall have the form, characteristics and bear the 12 designation; bear the date or dates; mature at such time or times, 13 serially, term or otherwise, in not more than forty (40) years from 14 their dates; bear interest at the rate or rates, payable annually, 15 semi-annually, quarterly or otherwise; be in the denominations; be 16 in the form, either coupon or registered; carry the registration 17 privileges as to principal only or as to both principal and interest 18 and as to successive exchange of coupon for registered bonds or notes 19 or vice versa, and successive exchange of bonds or notes of one 20 denomination for bonds or notes of other denominations; be executed 21 in the manner; be payable at the place or places wi thin or without 22 the state; and be sold for the price or prices, all as provided in 23 the resolution or resolutions authorizing such bonds and notes. Bonds 24 or notes may be issued in one or more installments and from time to 25 time as required. The proceeds of the sale of the bonds or notes 26 shall be deposited in the depository bank or banks and shall be paid 27 out pursuant to the terms and conditions as may be agreed upon by 16 1 the authority and the purchasers. 2 C. (1) Bonds or notes and any coupons appurtenant thereto 3 issued under the provisions of this Act shall be signed by the pres- 4 ident or vice president of the board of directors, be attested by 5 the board's secretary, and bear the seal of the authority. 6 (2) The resolution or resolutions authorizing the issuance of 7 any installment or any series of bonds or notes may prescribe the 8 extent to which the authority, in executing the bonds or notes and 9 appurtenant coupons, may use facsimile signatures and facsimile seals 10 instead of manual signatures and manually impressed seals. 11 (3) If any officer whose manual or facsimile signature appears 12 on a bond or note or any coupon ceases to be an officer before the 13 bond or note is delivered, the signature is valid and sufficient for 14 all purposes as if he had remained in office until the delivery had 15 been made. 16 (4) Neither the members or officers of the authority nor anyone 17 executing the bonds, notes or coupons for and on behalf of the author- 18 ity shall be liable personally on the bonds, notes or coupons of the 19 authority by reason of participation in any way in the issuance of 20 them. 21 D. (1) The bonds or notes of the authori ty may be secured by 22 and payable from pledges of all or any part of the revenues, receipts 23 or assets of the authority or the revenues of anyone or more leases 24 or other contracts theretofore or thereafter made, all of which shall 25 be specified by the resolution of the authority or in the trust 26 indenture or other instrument securing the bonds or notes. The 27 pledge may reserve the right, under conditions specified in it, 17 1 to issue additional bonds or notes which will be on a parity with 2 or subordinate to the bonds or notes then being issued. 3 (2) A pledge or security instrument made by the authority is 4 val id and bind ing from the time when it is made. The revenues, 5 receipts or assets so pledged and entrusted and thereafter received 6 by the authori ty shall immediately be subject to the lien of the 7 pledge or security instrument without any physical delivery or further 8 act. The lien of the pledge or security instrument is valid and 9 binding against all parties having claims of any kind in tort, con- 10 tract or otherwise against the authority, irrespective of whether 11 the parties have notice of it. Neither the resolution nor any security 12 instrument or other instrument by which a pledge or security interest 13 is created need be recorded or filed, and compl iance with any pro- 14 vision of any other law is not required in order to perfect the 15 pledge or other security interest. 16 E. A resolution authorizing bonds or notes or a trust indenture 17 securing bonds or notes may contain provisions, which shall be a part 18 of the agreement with the holders, as to: 19 (1) pledging all or any designated part of the revenues and 20 receipts of the authority, received or to be received from the plan- 21 ning, financing, ownership or operation of, leasing, or otherwise 22 in connection with, any specified facilities or assets to secure the 23 payment of the bonds or notes; 24 (2) pledging all or any part of assets of the authority, includ- 25 ing any obligation acquired by the authority, to secure the payment 26 of the bonds or notes; 27 (3) the use and disposition of rentals, rates, fees and other 18 1 charges made or received by the authority; 2 (4) pledg ing to fix, charge, al ter and collect rents, ra tes, 3 fees and other charges with respect to any designated facilities or 4 assets which will be sufficient to produce revenues adequate to pay 5 all expenses necessary to the operation and maintenance of the desig- 6 na ted facil i ties or assets of the authority, to pay the interest on 7 and principal of all bonds or notes issued and payable out of the 8 revenues and rece ipts when and as the same become due and payable, 9 to pay all sinking fund and/or reserve or other fund payments agreed 10 to be made in respect of any of these bonds or notes payable out of 11 the revenues and receipts when and as the same shall become due and 12 payable, and to fulf ill the terms of any agreement made with the 13 holders of the bonds or notes and/or with any person in their behalf; 14 (5) the setting aside of reserves or sinking funds and the 15 regulation and disposition of them; 16 (6) limitations on the purpose to which the proceeds from the 17 sale of the bonds or notes may be appl ied and pledg ing the proceeds 18 to secure the payment of the bonds or notes; 19 (7) limitations on the issuance of additional bonds and on the 20 refunding of outstanding or other bonds or notes; 21 (8) the acquisition, construction, improvement, operation, ex- 22 tension, enlargement, maintenance and repair of any facilities or 23 assets and the duties of the authority with reference to them; 24 (9) the procedure, if any, by which the terms of any agreement 25 wi th bondholders or noteholders may be amended or abrogated, the 26 amount of bonds or notes the holders of which are required to give 27 consent to, and the manner in which the consent may be given; 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (10) limitations on the amount of money to be expended by the authority for administrative or other expenses; (11) vesting in a trustee or other fiduciary the property, rights, powers and duties in trust as the authority determines, which may include any of the rights, powers and duties of the trustee appointed by the bondholders or noteholders pursuant to this Act, and abrogating the right of the bondholders or noteholders to appoint a trustee under this Act or limiting the rights, powers and duties of the trustee; (12) placing the management, operation and control of specified facili ties or assets of the authority in the hands of a board of trustees to be named in the resolution or trust indenture and speci- fying the terms of office of the board of trustees, their powers and duties, the successors, and manner of exercising the all matters pertaining to same, the appointment of their organization and duties; and (13) any other matters, of like or different character, which in any way affect the securi ty or protection of the bonds or notes or the bondholders or noteholders. F. The resolution authorizing the issuance of the bonds or notes or the trust indenture or other instrument securing them may provide that in the event of a default or, under the conditions therein stated, a threatened default in the payment of principal or of interest on bonds or notes, any court of competent jurisdiction may, upon peti tion of the holders of outstanding bonds or notes, appoint a receiver with authority to collect and receive pledged revenues and receipts, and the instruments may limit or qualify the rights 20 1 of less than all of the holders of the outstand ing bonds or notes 2 payable from the same source to institute or prosecute any litiga- 3 tion affecting the authority's properties or revenues. 4 G. Any bonds or notes, including refunding bonds, authorized 5 by this Act may be additionally secured by a trust indenture under 6 which the trustee may be a bank having trust powers situated either 7 within or outside the state. The bonds or notes, within the dis- 8 cretion of both the authority and the city council of the City of 9 La Porte, may be additionally secured by a mortgage or a deed of trust 10 lien or security interest on facilities or assets of the authority 11 and all real property, franchises, easements, leases and contracts 12 and all rights appurtenant to the properties, vesting in the trustee 13 power to sell such facilities or assets for the payment of the indebt- 14 edness, power to operate such facilities or assets and all other 15 powers and authority for the further security of the bonds or notes. 16 Such trust indenture, regardless of the mortgage or the deed of trust 17 lien or security interest in the facilities or assets may contain any 18 provisions prescribed by the authority and the city council of the 19 Ci ty of La Porte for the security of the bonds or notes and the 20 preservation of the trust estate, and may make provision for amend- 21 ment or modification of them, and may condition the right to expend 22 the authority's money or sell the authority's facilities or assets 23 upon approval of a registered professional engineer selected as 24 provided therein, and may make any other provisions for protecting 25 and enforcing the rights and remedies of the bondholders or note- 26 holders as may be reasonable and proper and not in violation of the 27 law. The resolution or trust indenture may also contain provisions 21 1 governing the issuance of bonds and notes to replace lost, stolen 2 or mutilated bonds or notes. 3 H. The authority shall have the power to direct the investment 4 of money in the funds created by the resolutions, trust indentures 5 or other instruments securing the bonds or notes. From the proceeds 6 from the sale of the bonds or notes, the authori ty may set aside 7 amounts for payments into the interest and sinking fund until com- 8 pletion of construction and until adequate revenues and receipts 9 are available from operations to pay principal and interest, amounts 10 for payments into reserve funds, and provisions for such may be made 11 in the resolution authorizing the bonds, notes or the trust indenture 12 or other instrument securing the bonds or notes. Proceeds from the 13 sale of the bonds or notes may be used for the payment of all expenses 14 of issuing and selling the bonds or notes. The proceeds from the 15 sale of the bonds and notes and money in any funds created in con- 16 nection with the bonds or notes may be invested: 17 (1) in direct or indirect obligations of or obligations un- 18 conditionally guaranteed by the United States maturing in the manner 19 that may be specified by the resolution authorizing the bonds or 20 notes or the trust indenture or other instrument securing the bonds 21 or notes; or 22 (2) in certif icates of deposit of any bank or trust company 23 which deposits are secured by the obligations described in Subdivision 24 (1) of this subsection. 25 I. With the prior approval of the city council of the City of 26 La Porte, the authori ty may provide by resolution for the issuance 27 of refunding bonds or notes to refund outstanding bonds or notes 22 1 issued under this Act and their accrued interest. The authority 2 may sell the refunding bonds or notes and use the proceeds to retire 3 the outstanding bonds or notes issued under this Act or the authority 4 may exchange the refunding bonds or notes for the outstanding bonds 5 or notes. The issuance of the refund ing bonds or notes, the ir ma tur i ty, 6 the rights of the bondholders, and the duties of the authority with 7 respect to refunding bonds or notes are governed by the provisions 8 of this Act relating to original bonds or notes, to the extent that 9 they may be made appl icable. The author i ty may also refund any 10 bonds or notes under the provisions of any general laws of the State 11 of Texas. 12 J. After any bonds and notes, including refunding bonds and 13 notes, are authorized by the authority, the bonds and notes and the 14 record relating to their issuance shall be submitted to the Attorney 15 General of Texas for his examination as to their validity. If the 16 bonds and notes recite that they are secured by a pledge of the 1 7 revenues and rece ipts of a lease or leases or other con tract or 18 contracts previously made between the authority and any person, the 19 leases and contracts may also be submi tted to the Attorney General. 20 If the bonds or notes have been validly authorized and if the leases 21 or contracts have been made in accordance with the constitution and 22 laws of the State, the Attorney General shall approve the bonds or 23 notes and the leases or contracts and the bonds or notes shall be 24 registered by the Comptroller of Public Accounts. 25 K. After the bonds or notes, and the leases or other contracts, 26 if any are submitted, have been approved by the Attorney General, 27 and the bonds and notes have been registered by the Comptroller of 23 1 Public Accounts and delivered to the purchasers, the bonds and notes 2 and any underlying leases and contracts shall be incontestable for 3 any cause. 4 L. Payment of any bonds and notes according to the term and 5 tenor, performance of agreements with the holders of bonds or notes 6 or any person in their behalf, and performance of official duties 7 prescribed by the provisions of this Act in connection wi th any 8 bonds or notes may be enforced in any court of competent jurisdiction 9 by mandamus or other appropriate proceeding. 10 M. Bonds issued under the provisions of this Act and coupons, 11 if any, representing interest on them, shall when delivered be con- 12 sidered and construed to be a "security" within the meaning of Chapter 13 8, Investment Securities, of the Uniform Commercial Code. 14 N. Bonds and notes issued under the provisions of this Act, 15 the interest on them, and the profit from the sale of them, shall be 16 exempt from taxation by the State or by any municipal corporation, 17 county or other political subdivision or taxing district of the State. 18 O. Bonds and notes issued under this Act, together with the 19 interest on them, shall be secured by and payable only from the 20 sources provided by the terms of this Act. 21 P. The provisions of this Act shall not be construed to authorize 22 the giving or lending of the credit of the State or to be a pledge of 23 the credit of the State for the payment of any bonds or notes issued 24 under the provisions of this Act and the purchasers and holders of 25 any bonds or notes shall never have the right to demand payment 26 thereof from any revenues, receipts or assets of the authority except 27 those pledged to the payment of bonds or notes. This State, however, 24 , , 1 pledges and agrees with the holders of any bonds or notes issued 2 under this Act that it will not limit or alter the rights vested 3 in the authority to fulfill the terms of any agreements made with 4 the holders of the bonds or notes consistent herewi th, or in any 5 way impair the rights and remedies of the holders until the bonds 6 or notes, together with interest on them, with interest on any unpaid 7 installments of interest, and all costs and expenses for which the 8 authority is liable in connection with any action or proceedings by 9 or on behal f of the holders, are fully met and discharged. The 10 authority may include this pledge and agreement of the State in any 11 agreements it makes with the holders of the bonds or notes. 12 Section 13. A. The authority shall have the right, power and 13 authori ty to construct, lay, maintain and operate canals, laterals, 14 ditches, levees, pipelines and all other facilities for the trans- 15 portation and distribution of water, together with service roads 16 and all other facilities incidental to and designed for use in con- 17 nection with such transportation and distribution of water, under, 18 along and across any railroad; railroad right-of-way; canal; stream; 19 pipeline; utility line; streets or alleys in cities, towns and vil- 20 lages, subject to reasonable regulation by such cities, towns and 21 villages; and public roads and highways, but such crossings shall 22 not impair the uses of the facilities crossed, and such facilities 23 shall be promptly restored to their former condi tion of usefulness. 24 B. In the event that the authori ty, in the exercise of the 25 power of eminent domain or power of relocation, or any other power 26 granted hereunder, makes necessary the relocation, raising, rerouting 27 or changing the grade of, or altering the construction of, any high- 25 1 way, railroad, electric transmission line, telegraph or telephone 2 properties and facilities, or pipeline, all such necessary relocation, 3 raising, rerouting, changing of grade or alteration of construction 4 shall be accomplished at the sole expense of the authority. The 5 term "sole expense" shall mean the actual cost of such relocation, 6 raising, lowering, rerouting, or change in grade or al teration of 7 construction in providing comparable replacement without enhancement 8 of such facili ties, after deducting therefrom the net salvage value 9 derived from the old facility. 10 C. The authority shall not be required to give bond for appeal 11 or bond for costs in any condemnation suit or any other suit to 12 which it may be a party. 13 Section 14. With the prior approval of the city council of the 14 Ci ty of La Porte, the board of directors of the authority shall 15 select any bank or banks in the State of Texas to act as depository 16 or depositories for the funds of the authority. To the extent that 17 funds in the depository bank or banks are not insured by the Federal 18 Deposit Insurance Corporation, they shall be secured in the manner 19 prov ided by law for the security of funds of the Ci ty of La Porte. 20 So long as the provisions of Article 2529c, Vernon's Texas Civil 21 Statutes are observed, any director of the authority may be a share- 22 holder in said depository bank or banks. 23 A complete system of accounts shall be kept by the authority 24 and an aud it of its affairs for each year shall be prepared by an 25 independent certified public accountant, or a firm of independent 26 certified public accountants, of recognized integrity and ability. 27 The fiscal year of the authority shall be from October 1 to September 26 1 30 of the following year, unless and until changed by the board. 2 A written report of the audit shall be delivered to each member of 3 the board not later than ninety (90) days after the close of each 4 fiscal year; a copy of such audit report shall be delivered upon 5 request to the holder or holders of at least twenty-five (25) percent 6 of the then outstanding bonds of the authority; at least five (5) 7 additional copies of said audit shall be delivered to the office of 8 the authority, one of which shall be kept on file and shall consti- 9 tute a public record open to inspection by any interested person or 10 persons during normal office hours; and one copy of such audit report 11 shall be filed with the City of La Porte. The cost of such audit 12 shall be paid for by the authority. 13 Section 15. The board of directors shall designate, establish 14 and maintain an office or offices of the authority as provided by 15 Section 54.110, Title 4, Water Code. 16 Section 16. All bonds and refunding bonds of the authority shall 17 be and are hereby declared to be legal, eligible and authorized 18 investments for banks, savings and loan associations, insurance 19 companies, fiduciaries, trustees, and for the sinking funds of cities, 20 towns, villages, counties, school districts or other political cor- 21 porations or subdivisions of the State of Texas and for all public 22 funds of the State of Texas or its agencies, includ ing the State 23 Permanent School Fund. Such bonds and refunding bonds shall be 24 elig ible to secure the deposit of any and all public funds of the 25 State of Texas, cities, towns, villages, counties, school districts 26 or other political corporations or subdivisions of the State of 27 Texas; and such bonds shall be lawful and sufficient security for 27 1 said deposits to the extent of their face value, when accompanied 2 by all unmatured coupons appurtenant thereto. 3 Section 17. The Legislature specifically finds and declares 4 that the requirements of Article XVI, Section 59 (d), Constitution 5 of Texas, have been done and accompl ished in due course and time, 6 and in due order, and that the Legislature has the power and authority 7 to enact this Act. 8 Section 18. If any word, phrase, clause, paragraph, sentence, 9 part, portion or provision of this Act or the application thereof 10 to any person or circumstance shall be held to be invalid or uncon- 11 stitutional, the remainder of this Act shall nevertheless be valid 12 and the Legislature hereby declares that this Act would have been 13 enacted without such invalid or unconstitutional word, phrase, clause, 14 paragraph, sentence, part, portion or provision. All of the terms 15 and provisions of this Act are to be liberally construed to effectuate 16 the purposes, powers, rights, functions and authorities herein set 17 forth. 18 Section 19. The fact that the authority's works and projects 19 and conservation measures are immediately and urgently needed hereby 20 establishes and creates an emergency and an imperative public neces- 21 sity requiring the constitutional rule that bills be read on three 22 several days in each house be suspended, and said rule is hereby 23 suspended, and this Act shall take effect from and after its passage, 24 and it is so enacted. 25 26 27 28 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 '.' .. ~ .iI "',....t ... By Watson . H. ~~ 0 No $ A BILL TO BS EE~lTLED .l. AN P,CT relating to the creation, administration, powers, dutiesl oper2~ ons, 2 3 4 5 fu;,ctions, and financing of 'che La Porte Area BE I.~ ENACTED BY THE LEGISLATURE OF THE Water Authority. STATE OF ~ExAS: S2ction 1. Under and pursuant Lo the provisions of Ar.ticl' XVI, Section 59, Consti tution of Texas, a conservation and reclamF:t.ion district is hereby created and ;:!stablished in Harris County, 'J.'exas, to be known as "La Porte Area Water Authority" (hereinafter called the "authority") which will be a governmental agency and ~ body politic and corporate. The creation and establishment of the author- ity is hereby declared to be essential to the accomplishment of the purposes of Article XVI, Section 59, Constitution of Texas. Section '). It is determined and found that the boundaries and field notes of the authority form a closure; and if any mistake is made in copying the field notes in the legislative process, or otherwise a mistake is made in the field notes, it shall in no way affect the organization, existence and validity of the authority, or the right of the authority to issue revenue bonds or revenue refunding bonds for the purposes for which the authority is created, or to pay the principal and interest thereon, or in any other manner affect the legality or operation of the authority or its governing body. Section 3. It is determined and found that all of the land and other property included wi thin the area and boundaries of the authori ty and lands and properties which may feasibly be served by ~. 1 1 the authority will be benefited by the works and project which are 2 to be accomplished by the authori ty pursuant to the powers con- 3 ferred by the provisions of Article XVI, Section 59, Constitution 4 of Texas, and that said authority was and is created to serve a 5 public use and benefit. 6 Section 4. The authority shall comprise all of the territory 7 contained within the following described area: 8 BEGINNING at a point in the south right-of-way line of Spencer 9 fIighway (100 foot wide), s -id point being the intersection of the 10 south right-of-way line of Spencer Highway and the east line of the 11 San Jacinto College 141 acre tract; said point being coincident 12 with the northwest corner of College View Municipal Utility District 13 as per Article 8280-381 of Vernon's Civ il Statutes of the State of 14 Texas; 15 THENCE, southerly along the west line of the College View 16 Municipal Utili ty District and the east line of the San Jacinto 17 College 141 acre tract to its intersection with the north line of 18 Fairmont Parkway 250 foot right-of-way, same being the southeast 19 corner of the said San Jacinto College 141 acre tract and the 20 southwest corner of the College View Municipal Utility District; 21 THENCE, southerly along a projection of the west line of the 22 College View Municipal Utility District and the east line of the 23 San Jacinto College 141 acre tract to its intersection with the 24 south right-of-way line of Fairmont Parkway 250 foot right-of-way 25 to a point for corner; 26 THENCE, east along the south line of Fairmont Parkway 250 foot 27 wide right-of-way to its intersection with the west line of a 200 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 foot wide Harris County Flood Control Willow Spring Gully which is designated District right-of-way for as Ditch No. Bl12-00~00, for a point for corner; THENCE, southwesterly coincident with the meanders of the west line of the 200 foot wide right-of-way of Willow Spring Gully, Harris County Flood Control District Ditch Bl12-00-00, to its inter- section with the north corporate limit of the City of Pasadenar same being the north line of a 200 foot wide strip annexed by the City of Pasadena and also being the south line of the W. M. Jones Survey and the north 1 ine of the George B. McKinstry Survey, Abstract No. 47, for a point for corner; THENCE, east with the north line of the George B. McKinstry Survey A-47 and the south line of the W. M. Jones Survey and the corporate limit line of the City of Pasadena to the east line of the 200 foot wide right-of-way of Willow Spring Gully, Harris County Flood Control District Ditch Bl12-00-00; THENCE, southwesterly with the east line of the 200 foot wide right-of-way of Willow Spring Gully Harris County Flood Control District Ditch Bl12-00-00 to a point 469 feet south of the north line of the George B. McKinstry Survey A-47; THENCE, east 469 feet south of and parallel to the north line of the George B. MCKinstry Survey A-47 to a point 200 feet west of the west line of that certain tract of land conveyed to Dart Industries and El Paso Products Company by Friendswood Development Company by deed dated March 14, 1974, and recorded under Film Code Number 103-11-0868, Deed Records, Harris County, Texas; THENCE, north 200 feet west of and parallel to the west line 3 1 of the property owned by Dart Industries and El Paso Products 2 Company a distance of 469 feet to the north line of the Gem::'ge B. 3 McKinstry Survey A-47 and the corporate limit line of the City of 4 Pasadena, Harris County, Texas; 5 THENCE, easterly along the north line of the George B. McKinstry 6 Survey, Abstract No. 47, to its intersection wi th the center line 7 of Big Island Slough, for a point for corner; 8 THENCE, southerly along the meanders of the center line of Big 9 Island Slough to its intersection wj th a line parallel to and 3410 10 feet more or less measured at right angles southerly from the north 11 line of the George B. McKinstry Survey, Abstract No. 47, for a point 12 for corner, said point being on the north line of that territory 13 annexed to the City of Houston by Ordinance No. 65-1555 B-R; 14 THENCE, easterly along the north line of the said terri tory 15 described by City of Houston Ordinance No. 65-1555 B-R, and its 16 easterly extension, to its intersection with the west right-of~~way 17 line of the G. H. & S. A. Railroad, for a point for corner; 18 THENCE, southerly along the west right-of-way line of the 19 G. H. & S. A. Railroad to its intersection with the westerly extension 20 of the north right-of-way line of McCabe Road; 21 THENCE, easterly with the westward projection of the north 22 right-of-way line of McCabe Road, and the north right-of-way line of 23 McCabe Road, and the eastward projection of the north right-of-way 24 line of McCabe Road, to a point in the east right-of-way line of 25 Old State Highway 146 (also known as South Broadway), said point 26 being the intersection of the north right-of-way line of McCabe 27 Road, extended easterly, with the east right-of-way line of Old 4 1 State Highway 146; 2 THENCE, southerly along the east right-of-way line of Old 3 State Highway 146 (also known as South Broadway) to a point for 4 corner, said point being the intersection of the east right-of.-.way 5 line of State Highway 146 with the north line of the Pine Bluff 6 Addition and the south line of the Crescent View Addition; 7 THENCE, easterly along the north line of the Pine Bluff Addition 8 and the south line of the Crescent View Addition to a point at the 9 intersection of the north 1 . , lne of the Pine Bluff Addition with the 10 westerly shoreline of Galveston Bay; 11 THENCE, northwesterly, northerly, and northeasterly following 12 the meanders of the shoreline of Galveston Bay to its intersection with 13 Donaldson Avenue, being a south city limit line of the City of 14 Morgan's Point; 15 THENCE, northwesterly along the north right-of-way line of 16 Donaldson Avenue to its intersection with the east right-of-way of 17 Blackwell Street; 18 THENCE, north along the east right-of-way line of Blackwell 19 Street, to a point of intersection with the south right-of-way line 20 of Barbours Cut Boulevard; 21 THENCE, westerly along the south right-of-way line of Barbours 22 Cut Boulevard, to the northeast corner of Block 978, Town of La Porte, 23 Harris County, Texas; 24 THENCE, north across Barbours Cut Boulevard, to a point for 25 corner in the north r igh t-of-way 1 ine of Barbours Cut Boulevard; 26 THENCE, west along the north right-of-way line of Barbours Cut 27 Boulevard to its intersection with the east right-of-way line of 5 1 North Broadway, for a point for corner; 2 THENCE, north along the east right-of-way line of North Broadway, 3 and along the east right-of-way 1 ine of North Broadway, extended to 4 its intersection with the shoreline of San Jacint.o Bay, being the 5 most northwesterly corner of the corporate limit of the City of 6 Morgan's Point; 7 THENCE, easterly along the most north city limit line of the 8 City of Morgan's Point, to a point of intersection with a line 9 which is parallel to and 2500' westerly from the center line of the 10 Houston Ship Channel; 11 THENCE, in a northwesterly direction along the line which is 12 parallel to and 2500' from the center line of the Houston Ship 13 Channel to a point of intersection with the east right-of-way line of 14 State Highway 134; 15 THENCE, south along the east right-of-way line of State Highway 16 134, and the east right-of-way line of State Highway 134, projected 17 south, to a point for corner in the south right-of-way line of 18 State Highway 225; 19 THENCE, southeasterly along the south right-of-way line of 20 State Highway 225, to its intersection with the west right-of-way 21 line of Underwood Road; 22 THENCE, south along the west right-of-way line of Underwood 23 Road to its intersection with the north right-of-way line of Spencer 24 Highway, for point for corner; 25 THENCE, west along the north right-of-way line of Spencer 26 Highway to its intersection with the east property line of the San 27 Jacinto College 141 acre tract, projected north; 6 1 THENCE, south across the right-of-way of Spencer Highway along 2 the north projection of the east property line of the San Jacinto 3 College 141 acre tract, to the POINT OF BEGINNING. 4 Section 5. A. The authority is hereby vested wi th, and shall 5 have and exercise, all of the rights, powers, priv ileges, author i- 6 ties and functions conferred by the general laws of this state appli- 7 cable to municipal utility districts, including without limitation 8 those conferred by Chap~er 54, Title 4, Water Code, with all amend- 9 ments and additions thereto, but if any provision of such general 10 laws shall be in conflict or inconsistent with the provisions of 11 this Act, the provisions of this Act shall prevail. All such general 12 laws applicable to municipal utility districts not in conflict or 13 inconsistent wi th the provisions of this Act are hereby adopted and 14 incorporated by reference with the same effect as if incorporated 15 in full by this Act. The powers and functions conferred on the 16 authority are granted subject to the policy of the state to encourage 17 the development and use of integrated area-wide waste collection, 18 treatment and disposal systems to serve the waste disposal needs 19 of the citizens of the state, it being an objective of the pOlicy 20 to avoid the economic burden to the people and the impact on the 21 quality of the waters in the state which resul t from the construc- 22 tion and operation of numerous small waste collection, treatment 23 and disposal facilities to serve an area when an integrated area- 24 wide waste collection, treatment and disposal system for the area 25 can reasonably be provided. 26 B. Not by way of 1 imi ta tion, the authori ty shall have and is 27 hereby expressly granted the following rights, powers, privileges 7 1 and functions: 2 (1) The right.. power and authority to acquire surface and/or 3 underground water supplies from sources both within and without 4 the boundaries of the authority and to conserve f store r transport, 5 treat, purify, distribute, sell and deliver water, both surface 6 and underground, to persons, corporations (public or private), muni- 7 cipal corporations, political subdivisions of the State of Texas, 8 and others, inside and wi thin thirty (30) miles of the boundaries 9 of the authority; 10 (2) The right, power and authority to collect and transport 11 the domestic, industrial or communal wastes of the enti ties des- 12 cribed in the preceding subsection, to include, but not by way of 13 limitation, the purposes of the Regional Waste Disposal Act (Chapter 14 25, Title 2, Water Code); 15 (3) The right, power and authority to make, purchase, con- 16 struct, lease or otherwise acquire property, works, facilities and 17 improvements (whether previously existing or to be made, constructed 18 or acquired), within or without the boundaries of the authority, 19 necessary to carry out the rights, powers and authority granted by 20 this Act and the general laws; 21 (4) The right, power and authority to enter into contracts 22 of not exceeding forty (40) years duration with persons, corpora- 23 tions (public or private), municipal corporations, including the 24 City of La Porte, political subdivisions of the State of Texas, 25 and others, on such terms and conditions as the board of directors 26 of the authority may deem desirable, fair and advantageous for the 27 performance of its rights, powers and authorities under this Act; 8 1 provided, that before entering such contracts, except -those between 2 the authority and the City of La portev the board of authority shall 3 secure the approval of the city council of the City of La Porte; 4 provided, that such contracts may provide that they sha.ll continue 5 in effect until bonds issued by the authority to finance the cost 6 of facili ties authorized by this Act, and refunding bonds issued 7 in lieu thereof, are paid; and further provided that Article 1109j, 8 Vernon's Texas Civil Statutes, as amended, shall specifically apply 9 to any contract between the authority and any city or town, includ- 10 ing without limitation, the City of La Porte; and 11 (5) The right, power and authority to enter into contracts 12 wi th others for transporting their water and to act jointly wi th 13 others in the performance of all functions and purposes of the author- 14 ity; provided, that before entering such contracts, except those 15 between the authority and the City of La Porte, the board of the 16 authority shall secure the approval of the city council of the City 17 of La Porte. 18 C. No election shall be required of the authority for approval 19 of contracts with municipal corporations or other political subdivi- 20 sions for services enumerated in this Act. 21 D. Nothing herein contained shall preclude the authority from 22 acquiring water rights under any laws or permits heretofore or here- 23 after issued, provided acquisition of the same is approved by order 24 or subsequent permit from the Texas Water Rights Commission. 25 E. The rights, powers, privileges, and functions herein granted 26 to the authority are subject to the powers granted to the Gulf Coast 27 Waste Disposal Authority in Article 762ld-2, Vernon's Texas Civil 9 ~tatutes, as amended, to pr ~ide disposal systems, and prior to acquiring or constructing wa, :-e treatment and disposal facilities, the authority must acquire the consent of the Gul f Coast Waste Dis- nasal Authority, or the Texi Water Quality Board if the consent ot the Gul f Coast Waste Disp 'f:dl Au thori ty is unreasonably withheld ','1. delayed. Section 6. It shall nG necessary for the board of directors : 0 call or hold an election ",:: the confirmation of the authority. Section 7. It shall not 'Je necessary for the board of directors to call or hold a hearing on 'AG exclusions of land or other property from the author~ty; provided, \'owever, that the board shall hold such hearing upon tht written peti ion of any landowner or other property owner within the; authority led wi th the secretary of the board prior to the passage of the :'irst order or resolution authorizing bonds to be issued by the ;.hority. The board may act on said peti tion in the same manner I:')at it may act on a petition for the addition of lcnld under Secti 118 54.711-.715, Title 4, Water Code, and no notice ot hearing sl' :i.l be required other than notice of the meeting whcredt such actt n is taken pursuant to Section 54.109, Title 4, Water Code. The Doc.a on its own motion may call and hold ,m exclusions hearing or he ings in the manner provided by the 'jeneral law. Section 8. Land may be added or annexed to the authority in the manner now prov ided by :hapter 54, Title 4, Water Code, and without the con~~nt of any c~ y as provided in Article 970a, Vernon's Texas Civil Statute<.:, a" ,"'::'J am: nded, either before or after revenue 'i:mds of the authori ty jJ'lve f) en issued, and no such boundary change 10 1 shall have any effect upon the validity of any bonds of the authority. 2 Section 9. A. The authority shall have no right, pm.,er or 3 authority to impose, levy, assess or collect taxes on any property, 4 real, personal or mixed, nor shall the authority have the right, 5 power or authority to issue bonds or create indebtedness which would 6 be payable directly from ad valorem taxes lev ied by the author i ty. 7 B. The enactment of this law shall not have the effect of pre- 8 venting the organization of conservation and reclamation districts 9 or of preventing boundary changes of such districts within the boun- 10 daries of the authori ty as authorized in Article XVI, Section 59 11 and Article III, Section 52 of the Constitution of Texas. To encour- 12 age the state policy referred to in Section 5(A) hereof and to prevent 13 wasteful duplication, all conservation and reclamation districts 14 created in the future within the boundaries of the authority shall, 15 however, contract with the authority for the provision of facilities 16 and services that the authority is empowered to provide under this 17 Act whenever the authority has or in its determination can provide 18 such facilities and services. 19 Section 10. A. All powers of the authority shall be exercised 20 by a board of five directors, none of whom shall be a member of the 21 city council of the City of La Porte during his term as director. 22 One director must reside without the city limits of La Porte but 23 within the boundaries of the authority. By September 1, 1981, the 24 city council of the City of La Porte shall assign position numbers 25 to each director's office and shall appoint directors to such posi- 26 tions for two-year terms as follows: those directors occupying 27 Positions Number 1 and Number 2 shall serve until September 1, 1982, 11 1 and thereafter until a successor has been appointed and qualified; 2 those directors occupying Positions Number 3, Number 4 and Number 5 3 shall serve until September 1, 1983, and thereafter until a successor 4 has been appointed and qualified. Upon the expiration of such terms 5 the city council of the City of La Porte shall fill such positions by 6 appointment of a director to each position for a term of two years, 7 so that two directors shall be so appointed in one year and three 8 directors in the next year in continuing sequence. Vacancies in the 9 office of director, because of the failure or refusal of one or more 10 directors to qualify or serve, because of death or incapacitation, 11 or for any other reason, shall be filled by appointment of the city 12 council of the City of La Porte for the unexpired term. Each director 13 shall serve without emolument or compensation paid by the authority. 14 B. Each director shall qualify by subscribing to the consti- 15 tutional oath of office and giving bond in the amount of $5,000 for 16 the faithful performance of his duties. The cost of such bond shall 17 be paid by the authority. Such bond of the first directors shall be 18 approved by the Mayor of the City of La Porte and filed in the office 19 of the Ci ty Manager of the City of La Porte, Texas. The bonds of 20 directors appointed after the first directors shall be approved by 21 the authority's board of directors and shall be recorded in a record 22 kept for that purpose in the office of the authority. 23 C. At the first meeting in September of each year, or after 24 the annual vacancies in the board of directors are filled as pro- 25 vided herein and such directors are qualified, the board shall elect 26 a president, a vice president, a secretary and any other officers as 27 in the judgment of the board are considered necessary. The vice 12 1 president shall perform all duties and exercise all power conferred 2 by this Act or the provisions of the general law upon the president 3 when the president is absent or fails or declines to act. Any order 4 adopted or other action taken at a meeting of the board at which 5 the president is absent may be signed by the vice president, or the 6 board may authorize the president to sign such order or other action. 7 D. At the direction of the board of directors, the general 8 manager of the authority, as hereinafter provided, may execute all 9 contracts, construction or otherwise, entered into by the board on 10 behalf of the authority. 11 E. A majority of the duly qualified directors shall constitute 12 a quorum of any meeting of the board of directors, and a concurrence 13 of a majority of those directors present and voting shall be suffi- 14 cient in all matters pertaining to the business of the authority, 15 including the letting of construction work, purchase of existing 16 facilities, and matters relating to the construction work. 17 Section 11. A. The City Manager of the City of La Porte shall 18 be the general manager of the authority for so long as the City of 19 La Porte has such an off icer. If the position of Ci ty Manager is 20 ever abolished, the chief executive officer of the City of La Porte 21 or his designee shall serve as general manager. The general manager 22 shall serve wi thout emolument or compensation paid by the board. 23 B. The general manager is the chief executive officer of the 24 authori ty. Under pol icies establ ished by the board, he is respon- 25 sible to the board of directors for the following duties: 26 (1) administering the directives of the board; 27 (2) keeping the authority's records, including minutes of the 13 1 board's meetings; 2 (3) coordinating with state, federal and local agencies; 3 (4) developing plans and programs for the board's approval; 4 (5) formulating a budget for the authority's fiscal year, as 5 hereinafter provided, subject to the approval of both the board and 6 the city council of the City of La Porte; 7 (6) hiring, supervising, training and discharg ing the author- 8 ity's employees; 9 (7) contracting for or retaining technical, scientific, legal, 10 fiscal and other professional services; and 11 (8) performing any other duties assigned to him by the board. 12 C. The general manager and each employee of the authority 13 charged with the collection, custody or payment of any money of the 14 authority shall execute a fidelity bond, approved by the board of 15 directors as to form, amount and surety. The author i ty shall pay 16 the premiums on the general manager's and the employees' bonds under 17 this section. 18 D. Pursuant to the provisions of the Interlocal Cooperation 19 Act, Article 44l3(32c), Vernon's Texas Civil Statutes, as amended, 20 the authority shall offer to enter into an interlocal contract or 21 agreement with the Ci ty of La Porte for the performance of adminis- 22 trative functions, as defined therein. 23 Section 12. A. The authority is authorized to: 24 (1) reimburse the City of La Porte for all reasonable expenses 25 incurred in connection wi th the creation and establishment of the 26 authori ty, includ ing publication costs, legal fees and charges for 27 the services of other consultants and other incidental costs; 14 1 (2) with the prior approval of the city council of the City 2 of La Porte, borrow money from time to time for the purpose of carry- 3 ing out any of the powers granted to the authority by: 4 (a) issuing and selling negotiable or nonnegotiable notes and 5 providing the terms and condi tions of these notes and the rights of 6 the holders of these notes payable from and secured by the sources 7 described in this Act; 8 (b) issuing and selling revenue bonds without the necessity of 9 an election and providing the terms and conditions of these bonds and 10 the rights of the holders of these bonds payable from and secured by 11 the sources described in this Act; and 12 (c) delivering such notes and bonds to the United States, or 13 any agency or instrumentality thereof, or to the State of Texas, or 14 any agency or instrumentality thereof, when it is determined by the 15 board of directors to be in the best interest to the authority. 16 (3) invest any money held in any sinking fund, reserve fund, 17 or other fund or any money not required for i.mmediate use or dis- 18 bursement in the securities as provided in this Act; 19 (4) apply for, accept and administer grants, loans and other 20 assistance from the United States and any agency or instrumentality 21 of this state or any other state to carry out the purpose of this 22 Act, and to enter into any agreement in relation to these grants, 23 loans or other assistance as may be provided by the authority which 24 is not in conflict with the constitution of this state; and 25 (5) fix, charge, al ter and collect reasonable rentals, rates, 26 fees and other charges for the use of any facilities or for any 27 services rendered by the authority and provide for the imposition of 15 1 reasonable penalties for any of these rentals, rates, fees and charges 2 that are delinquent, and further to comply wi th its mandatory duty 3 to fix, charge, alter and collect the rentals, rates, fees and charges 4 which are sufficient to produce revenues adequate to fulfill any 5 agreement wi th the holders of bonds or notes issued under the pro- 6 visions of this Act. 7 B. All bonds and notes of the authority shall be authorized 8 by resolution or resolutions of the board, concurred in by at least 9 a majority of such board members and further approved by the city 10 counc il of the City of La Porte prior to issuance thereof. Such 11 bonds and notes shall have the form, characteristics and bear the 12 designation: bear the date or dates; mature at such time or times, 13 serially, term or otherwise, in not more than forty (40) years from 14 their dates; bear interest at the rate or rates, payable annually, 15 semi-annually, quarterly or otherwise; be in the denominations; be 16 in the form, either coupon or registered; carry the registration 17 privileges as to principal only or as to both principal and interest 18 and as to successive exchange of coupon for registered bonds or notes 19 or vice versa, and successive exchange of bonds or notes of one 20 denomination for bonds or notes of other denominations; be executed 21 in the manner; be payable at the place or places wi thin or without 22 the state; and be sold for the price or prices, all as provided in 23 the resolution or resolutions authorizing such bonds and notes. Bonds 24 or notes may be issued in one or more installments and from time to 25 time as required. The proceeds of the sale of the bonds or notes 26 shall be deposited in the depository bank or banks and shall be paid 27 out pursuant to the terms and condi tions as may be agreed upon by 16 " 1 the authority and the purchasers. 2 c. (1) Bonds or notes and any coupons appurtenant thereto 3 issued under the provisions of this Act shall be signed by the pres- 4 ident or vice president of the board of directors, be attested by 5 the board's secretary, and bear the seal of ~he authority. 6 (2) The resolution or resolutions authorizing the issuance of 7 any installment or any series of bonds or notes may prescribe the 8 extent to which the authority, in executing the bonds or notes and 9 appurtenant coupons, may use facsimile signatures and facsimile seals 10 instead of manual signatures and manually impressed seals. 11 (3) If any officer whose manual or facsimile signature appears 12 on a bond or note or any coupon ceases to be an officer before the 13 bond or note is delivered, the signature is valid and sufficient for 14 all purposes as if he had remained in office until the delivery had 15 been made. 16 (4) Neither the members or officers of the authority nor anyone 17 executing the bonds, notes or coupons for and on behalf of the author- 18 ity shall be liable personally on the bonds, notes or coupons of the 19 authority by reason of participation in any way in the issuance of 20 them. 21 D. (1) The bonds or notes of the authority may be secured by 22 and payable from pledges of all or any part of the revenues, receipts 23 or assets of the authority or the revenues of anyone or more leases 24 or other contracts theretofore or thereafter made, all of which shall 25 be specified by the resolution of the authority or in the trust 26 indenture or other instrument securing the bonds or notes. The 27 pledge may reserve the right, under conditions specified in it, 17 1 to issue additional bonds or notes which will be on a parity with 2 or subordinate to the bonds or notes then being issued. 3 (2) A pledge or security instrument made by the authority is 4 valid and binding from the time when it is made. The revenues, 5 receipts or assets so pledged and entrusted and thereafter received 6 by the authority shall immediately be subject to the lien of the 7 pledge or security instrument without any physical delivery or further 8 act. The lien of the pledge or securi ty instrument is valid and 9 binding against all parties having claims of any kind in tort, con- 10 tract or otherwise against the authority, irrespective of whether 11 the parties have notice of it. Neither the resolution nor any security 12 instrument or other instrument by which a pledge or security interest 13 is created need be recorded or filed, and compl iance wi th any pro- 14 vision of any other law is not required in order to perfect the 15 pledge or other security interest. 16 E. A resolution authorizing bonds or notes or a trust indenture 17 securing bonds or notes may contain provisions, which shall be a part 18 of the agreement with the holders, as to: 19 (1) pledging all or any designated part of the revenues and 20 receipts of the authority, received or to be received from the plan- 21 ning, financing, ownership or operation of, leasing, or otherwise 22 in connection with, any specified facilities or assets to secure the 23 payment of the bonds or notes; 24 (2) pledging all or any part of assets of the authority, includ- 25 ing any obligation acquired by the authority, to secure the payment 26 of the bonds or notes; 27 (3) the use and disposition of rentals, rates, fees and other 18 1 charges made or received by the authority; 2 (4) pledging to fix, charge, alter and collect rents, rates, 3 fees and other charges with respect to any designated facilities or 4 assets which will be sufficient to produce revenues adequate to pay 5 all expenses necessary to the operation and maintenance of the desig- 6 nated facilities or assets of the authority, to pay the interest on 7 and principal of all bonds or notes issued and payable out of the 8 revenues and rece ipts when and as the same become due and payable, 9 to pay all sinking fund and/or reserve or other fund payments agreed 10 to be made in respect of any of these bonds or notes payable out of 11 the revenues and receipts when and as the same shall become due and 12 payable, and to fulf ill the terms of any agreement made wi th the 13 holders of the bonds or notes and/or with any person in their behalf; 14 (5) the setting aside of reserves or sinking funds and the 15 regulation and disposition of them; 16 (6) limitations on the purpose to which the proceeds from the 17 sale of the bonds or notes may be appl ied and pledg ing the proceeds 18 to secure the payment of the bonds or notes; 19 (7) limitations on the issuance of additional bonds and on the 20 refunding of outstanding or other bonds or notes; 21 (8) the acquisition, construction, improvement, operation, ex- 22 tension, enlargement, maintenance and repair of any facil i ties or 23 assets and the duties of the authority with reference to them; 24 (9) the procedure, if any, by which the terms of any agreement 25 wi th bondholders or noteholders may be amended or abrogated, the 26 amount of bonds or notes the holders of which are required to give 27 consent to, and the manner in which the consent may be given; 19 1 (10) limitations on the amount of money to be expended by the 2 authority for administrative or other expenses; 3 (11) vesting in a trustee or other fiduciary the property, 4 rights, powers and duties in trust as the authority determines, 5 which may include any of the rights, powers and duties of the trustee 6 appointed by the bondholders or noteholders pursuant to this Act, 7 and abrogating the right of the bondholders or noteholders to appoint 8 a trustee under this Act or 1 imi ting the rights, powers and duties 9 of the trustee; 10 (12) placing the management, operation and control of specified 11 facilities or assets of the authority in the hands of a board of 12 trustees to be named in the resolution or trust indenture and speci- 13 fying the terms of office of the board of trustees, their powers 14 and duties, the manner of exercising the same, the appointment of 15 successors, and all matters pertaining to their organization and 16 duties; and 17 (13) any other matters, of like or different character, which 18 in any way affect the securi ty or protection of the bonds or notes 19 or the bondholders or noteholders. 20 F. The resolution authorizing the issuance of the bonds or 21 notes or the trust indenture or other instrument securing them may 22 provide that in the event of a default or, under the conditions therein 23 stated, a threatened default in the payment of principal or of interest 24 on bonds or notes, any court of competent jurisdiction may, upon 25 petition of the holders of outstanding bonds or notes, appoint a 26 receiver with authority to collect and receive pledged revenues 27 and receipts, and the instruments may limit or qualify the rights 20 ~, 1 of less than all of the holders of the outstanding bonds or notes 2 payable from the same source to insti tute or prosecute any 1 i tiga- 3 tion affecting the authority's properties or revenues. ~ G. Any bonds or notes, including refunding bonds, authorized 5 by this Act may be additionally secured by a trust indenture under 6 which the trustee may be a bank having trust powers situated either 7 within or outside the state. The bonds or notes, within the dis- 8 cretion of both the authority and the city council of the City of 9 La Porte, may be additionally secured by a mortgage or a deed of trust 10 lien or security interest on facilities or assets of the authority 11 and all real property, franchises, easements, leases and contracts 12 and all rights appurtenant to the properties, vesting in the trustee 13 power to sell such facilities or assets for the payment of the indebt- 14 edness, power to operate such facilities or assets and all other 15 powers and authority for the further security of the bonds or notes. 16 Such trust indenture, regardless of the mortgage or the deed of trust 17 lien or security interest in the facilities or assets may contain any 18 provisions prescribed by the authority and the city council of the 19 Ci ty of La Porte for the security of the bonds or notes and the 20 preservation of the trust estate, and may make provision for amend- 21 ment or modification of them, and may condition the right to expend 22 the authority's money or sell the authority's facilities or assets 23 upon approval of a registered professional engineer selected as 24 provided therein, and may make any other provisions for protecting 25 and enforcing the rights and remedies of the bondholders or note- 26 holders as may be reasonable and proper and not in violation of the 27 law. The resolution or trust indenture may also contain provisions 21 1 governing the issuance of bonds and notes to replace lost, stolen 2 or mutilated bonds or notes. 3 H. The authority shall have the power to direct the investment 4 of money in the funds created by the resolutions, trust indentures 5 or other instruments securing the bonds or notes. From the proceeds 6 from the sale of the bonds or notes, the authori ty may set aside 7 amounts for payments into the interest and sinking fund until com- 8 pletion of construction and until adequate revenues and receipts 9 are available from operations to pay principal and interest, amounts 10 for payments into reserve funds, and provisions for such may be made 11 in the resolution authorizing the bonds, notes or the trust indenture 12 or other instrument securing the bonds or notes. Proceeds from the 13 sale of the bonds or notes may be used for the payment of all expenses 14 of issuing and selling the bonds or notes. The proceeds from the 15 sale of the bonds and notes and money in any funds created in con- 16 nection with the bonds or notes may be invested: 17 (1) in direct or indirect obligations of or obligations un- 18 conditionally guaranteed by the United States maturing in the manner 19 that may be specified by the resolution authorizing the bonds or 20 notes or the trust indenture or other instrument securing the bonds 21 or notes; or 22 (2) in certificates of deposit of any bank or trust company 23 which deposits are secured by the obligations described in Subdivision 24 (1) of this subsection. 25 1. With the prior approval of the city council of the City of 26 La Porte, the authori ty may provide by resolution for the issuance 27 of refunding bonds or notes to refund outstanding bonds or notes 22 1 issued under this Act and their accrued interest. The authority 2 may sell the refunding bonds or notes and use the proceeds to retire 3 the outstanding bonds or notes issued under this Act or the authority 4 may exchange the refunding bonds or notes for the outstanding bonds 5 or notes. The issuance of the refunding bonds or notes, their maturity, 6 the rights of the bondholders, and the duties of the authority with 7 respect to refunding bonds or notes are governed by the provisions 8 of this Act relating to original bonds or notes, to the extent that ~ they may be made appl icable. The author i ty may also refund any 10 bonds or notes under the provisions of any general laws of the State 11 of Texas. 12 J. After any bonds and notes, including refunding bonds and 13 notes, are authorized by the authority, the bonds and notes and the 14 record relating to their issuance shall be submitted to the Attorney 15 General of Texas for his examination as to their validity. If the 16 bonds and notes recite that they are secured by a pledge of the 17 revenues and receipts of a lease or leases or other contract or 18 contracts previously made between the authority and any person, the 19 leases and contracts may also be submitted to the Attorney General. 20 If the bonds or notes have been validly authorized and if the leases 21 or contracts have been made in accordance with the constitution and 22 laws of the State, the Attorney General shall approve the bonds or 23 notes and the leases or contracts and the bonds or notes shall be 24 registered by the Comptroller of Public Accounts. 25 K. After the bonds or notes, and the leases or other contracts, 26 if any are submitted, have been approved by the Attorney General, 27 and the bonds and notes have been registered by the Comptroller of 23 1 Public Accounts and delivered to the purchasers, the bonds and notes 2 and any underlying leases and contracts shall be incontestable for 3 any cause. 4 L. Payment of any bonds and notes according to the term and 5 tenor, performance of agreements with the holders of bonds or notes 6 or any person in their behalf, and performance of official duties 7 prescribed by the provisions of this Act in connection wi th any 8 bonds or notes may be enforced in any court of competent jurisdiction 9 by mandamus or other appropriate proceeding. 10 M. Bonds issued under the provisions of this Act and coupons, 11 if any, representing interest on them, shall when delivered be con- 12 sidered and construed to be a "security" within the meaning of Chapter 13 8, Investment Securities, of the Uniform Commercial Code. 14 N. Bonds and notes issued under the provisions of this Act, 15 the interest on them, and the profit from the sale of them, shall be 16 exempt from taxation by the State or by any municipal corporation, 17 county or other political subdivision or taxing district of the State. 18 O. Bonds and notes issued under this Act, together wi th the 19 interest on them, shall be secured by and payable only from the 20 sources provided by the terms of this Act. 21 P. The provisions of this Act shall not be construed to authorize 22 the giving or lending of the credit of the State or to be a pledge of 23 the credit of the State for the payment of any bonds or notes issued 24 under the provisions of this Act and the purchasers and holders of 25 any bonds or notes shall never have the right to demand payment 26 thereof from any revenues, receipts or assets of the authority except 27 those pledged to the payment of bonds or notes. This State, however, 24 1 pledges and agrees with the holders of any bonds or notes issued 2 under this Act that it will not limit or alter the rights vested 3 in the authority to fulfill the terms of any agreements made with -1 the holders of the bonds or notes consistent herewith, or in any 5 way impair the rights and remedies of the holders until the bonds 6 or notes, together with interest on them, with interest on any unpaid 7 installments of interest, and all costs and expenses for which the 8 authority is liable in connection with any action or proceedings by 9 or on behalf of the holders, are fully met and discharged. The 10 authority may include this pledge and agreement of the State in any 11 agreements it makes with the holders of the bonds or notes. 12 Section 13. A. The authority shall have the right, power and 13 authority to construct, lay, maintain and operate canals, laterals, 14 ditches, levees, pipelines and all other facilities for the trans- 15 portation and distribution of water, together with service roads 16 and all other facilities incidental to and designed for use in con- 17 nection with such transportation and distribution of water, under, 18 along and across any railroad; railroad right-of-way; canal; stream; 19 pipeline; utility line; streets or alleys in cities, towns and vil- 20 lages, subject to reasonable regulation by such ci ties, towns and 21 villages; and public roads and highways, but such crossings shall 22 not impair the uses of the facilities crossed, and such facilities 23 shall be promptly restored to their former condition of usefulness. 24 B. In the event that the authority, in the exercise of the 25 power of eminent domain or power of relocation, or any other power 26 granted hereunder, makes necessary the relocation, raising, rerouting 27 or changing the grade of, or altering the construction of, any high- 25 1 way, railroad, electric transmission line, telegraph or telephone 2 properties and facilities, or pipeline, all such necessary relocation, 3 raising, rerouting, changing of grade or alteration of construction 4 shall be accomplished at the sole expense of the authority. The 5 term "sole expense" shall mean the actual cost of such relocation, 6 raising, lowering, rerouting, or change in grade or al teration of 7 construction in providing comparable replacement without enhancement 8 of such facili ties, after deducting therefrom the net salvage value 9 derived from the old facility. 10 C. The authority shall not be required to give bond for appeal 11 or bond for costs in any condemnation suit or any other suit to 12 which it may be a party. 13 Section 14. With the prior approval of the city council of the 14 City of La Porte, the board of directors of the authority shall 15 select any bank or banks in the State of Texas to act as depository 16 or depositories for the funds of the authority. To the extent that 17 funds in the depository bank or banks are not insured by the Federal 18 Deposi t Insurance Corporation, they shall be secured in the manner 19 prov ided by law for the security of funds of the Ci ty of La Porte. 20 So long as the provisions of Article 2529c, Vernon's Texas Civ il 21 Statutes are observed, any director of the authority may be a share- 22 holder in said depository bank or banks. 23 A complete system of accounts shall be kept by the authority 24 and an aud it of its affairs for each year shall be prepared by an 25 independent certified public accountant, or a firm of independent 26 certified public accountants, of recognized integrity and ability. 27 The fiscal year of the authority shall be from October 1 to September 26 1 30 of the following year, unless and until changed by the board. 2 A written report of the audit shall be delivered to each member of 3 the board not later than ninety (90) days after the close of each 4 fiscal year; a copy of such audit report shall be delivered upon 5 request to the holder or holders of at least twenty-five (25) percent 6 of the then outstanding bonds of the authority; at least five (5) 7 additional copies of said audit shall be delivered to the office of 8 the authority, one of which shall be kept on file and shall consti- 9 tute a public record open to inspection by any interested person or 10 persons during normal office hours; and one copy of such audit report 11 shall be filed with the Ci ty of La Porte. The cost of such aud it 12 shall be paid for by the authority. 13 Section 15. The board of directors shall designate, establish 14 and maintain an office or offices of the authority as provided by 15 Section 54.110, Title 4, Water Code. 16 Section 16. All bonds and refunding bonds of the authority shall 17 be and are hereby declared to be legal, el igible and authorized 18 investments for banks, savings and loan associations, insurance 19 companies, fiduciaries, trustees, and for the sinking funds of cities, 20 towns, villages, counties, school districts or other political cor- 21 porations or subdivisions of the State of Texas and for all public 22 funds of the State of Texas or its agencies, including the State 23 Permanent School Fund. Such bonds and refunding bonds shall be 24 elig ible to secure the deposit of any and all public funds of the 25 State of Texas, cities, towns, villages, counties, school districts 26 or other political corporations or subdivisions of the State of 27 Texas; and such bonds shall be lawful and sufficient security for 27 1 said deposits to the extent of their face value, when accompanied 2 by all unmatured coupons appurtenant thereto. 3 Section 17. The Legislature specifically finds and declares 4 that the requirements of Article XVI, Section 59(d), Constitution 5 of Texas, have been done and accompl ished in due course and time, 6 and in due order, and that the Legislature has the power and authority 7 to enact this Act. 8 Section 18. If any word, phrase, clause, paragraph, sentence, 9 part, portion or provision of this Act or the application thereof 10 to any person or circumstance shall be held to be invalid or uncon- 11 stitutional, the remainder of this Act shall nevertheless be valid 12 and the Legislature hereby declares that this Act would have been 13 enacted without such invalid or unconstitutional word, phrase, clause, 14 paragraph, sentence, part, portion or provision. All of the terms 15 and provisions of this Act are to be liberally construed to effectuate 16 the purposes, powers, rights, functions and authorities herein set 17 forth. 18 Section 19. The fact that the authority's works and projects 19 and conservation measures are immediately and urgently needed hereby 20 establishes and creates an emergency and an imperative public neces- 21 sity requiring the constitutional rule that bills be read on three 22 several days in each house be suspended, and said rule is hereby 23 suspended, and this Act shall take effect from and after its passage, 24 and it is so enacted. 25 26 27 28