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R2005-0024 01-24-05 RESOLUTION NO. R2005-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, CONSENTING TO THE CREATION OF THE PEARLAND MUNICIPAL MANAGEMENT DISTRICT NO. 1. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That Section 59, Article XVI of the Texas Constitution allows for the creation of a special district to help promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the area of the district. Section 2. That the City Council of the City of Pearland hereby supports the proposed legislation, attached hereto as Exhibit "A", and consents to the creation of the Pearland Municipal Management District No. 1. PASSED, APPROVED and ADOPTED this the 24th day of January , A.D., 2005. ATTEST: (.~JITY 8:E~RETARY APPROVED AS TO FORM: DAJ~RIN M. COKER CITY ATTORNEY TOM REID MAYOR .B. No. AN ACT relating to the creation and authority of the Pearland Municipal Management District No. 1; providing authority to levy an assessment, impose taxes and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. CREATION OF DISTRICT. (a) The Pearland Municipal Management District No. 1 is a special district created under Section 59, Article XVI, Texas Constitution. (b) The board by resolution may change the name of the district. SECTION 2. district. (2) (3) DEFINITIONS. In this Act: "Board" means the board of directors of the (4) Management District No. 1. (5) "economic development "City" means the City of Pearland, Texas. "County" means Harris County, Texas. "District" means the Pearland Municipal corporation" means a corporation created pursuant to Article 5190.6, Texas Revised Civil Statutes. SECTION 3. DECLARATION OF INTENT. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this Act. (b) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, 51049 4 01/017/05 Draft entertainment, economic development, safety, and the public welfare in the area of the district. (c) The creation of the district and this legislation may not be interpreted to relieve the County or the City from providing the level of services provided, as of the effective date of this Act, to the area in the district. The district is created to supplement and not to supplant the county or city services provided in the area in the district. (d) By creating the district and in authorizing the City, the County, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. SECTION 4. BOUNDARIES. The district includes all the territory contained in the following described area: TRACT 1: A parcel of land containing 88.6991 acres (3,863,734 square feet), more or less, out of Lots 6, 7 and 8 of the said subdivision of the James Hamilton Survey and being more particularly described as follows: COMMENCING at a 1 inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 87° 35' 30" E, along the south line of the said James Hamilton Survey and the south line of said Lot 4, a distance of 1320.00 feet to a 3/4 inch iron rod found at the southeast corner of said Lot 4 and the southwest corner of Lot 5 of the said subdivision of the James Hamilton Survey; THENCE N 02° 24' 30" W, along the common line of said Lots 4 and 5, a distance of 1320.00 feet to a found 1/2 inch iron pipe at the common corner of said Lots 3, 4, 5 and 6, from said 1/2 inch iron pipe a found 1 inch iron rod bear S 03° 07' 14" W, 0.98 51049_4 -- 2 - 01/17/05 Draft feet in length, also being the POINT OF BEGINNING of the herein described tract; THENCE N 02© 24' 30" W, along the east line of Lot 2 of the said subdivision of the James Hamilton Survey and said Lot 3, and the west line of said Lots 7 and 8, a distance of 2200.00 feet to a 5/8 inch iron rod set at the northwest corner of said Lot 7 and the southwest corner of said Lot 8, form said 5/8 inch iron rod and found fence corner bears S 83© 57' 48" E, 21.66 feet in length; THENCE N 87© 40' 21" E (called N 87° 35' 30" E), along the common line of said Lots 7 and 8, a distance of 659.68 feet (called 660.00 feet) to a set 5/8 inch iron rod, from said 5/8 inch iron rod found 1 inch iron pipe bears S 78© 34' 01" W, 8.67 feet in length, also from said 5/8 inch iron rod a found fence corner bears N 88© 52' 15" W, 1.61 feet in length; THENCE N 02© 24' 30" W, a distance of 640.18 feet to a 5/8 inch iron rod set in the south line of South Belt (variable width), from said 5/8 inch iron rod a found 1 inch iron pipe bears S 87© 45' 03" W, 8.30 feet in length, also from said 5/8 inch iron rod a found fence corner bears S 66© 39' 49" W, 1.37 feet in length; THENCE S 89° 32' 13" E, along the south line of said South Belt, a distance of 35.99 feet to a 5/8 inch iron rod set on a curve to the right; THENCE continuing along the south line of said South Belt and along a fence line and said curve to the right, having a radius of 881.47 feet, through a central angle of 46° 25' 21", a distance of 714.19 feet to a set 5/8 inch iron rod, said curve having a chord which bears S 66© 19' 32" E, 694.81 feet in length; THENCE S 02© 24' 30" E, a distance of 332.88 feet to a set 5/8 inch iron rod; 51049 4 -- 3 -- 01/17/05 Draft THENCE N 87© 35' 30" E, a distance of 179.39 feet to a 5/8 inch iron rod set on the west line of State Highway 288 (variable width) and on a curve to the right; THENCE along the west line of said State Highway 288, a fence line and said curve to the right, having a radius of 881.47 feet, through a central angle of 11© 55' 32", a distance of 183.47 feet to a found concrete monument, said curve having a chord which bears S 12© 22' 47" E, 183.14 feet in length; THENCE S 06© 25' 01" E, continuing along the west line of said State Highway 288 and a fence line, a distance of 1811.66 feet (called 1811.72 feet) to a found concrete monument; THENCE S 02© 38' 57" E (called S 02© 52' 57" E), continuing along the west line of said State Highway 288 and a fence line, a distance of 209.95 feet (called 212.35 feet) to a fence corner found in the south line of said Lot 6 and the north line of said Lot 5; THENCE S 87© 32' 19" W (called S 87° 35'.30" W), along the south line of said Lot 6 and the north line of said Lot 5, a distance of 1658.31 feet (called 1659.51 feet) to the POINT OF BEGINNING and containing 88.6991 acres (3,863,734 square feet) of land. TRACT II: A parcel of land containing 9.0000 acres (392,040 square feet), more or less, out of Lot 3 of the said subdivision of the James Hamilton Survey and being more particularly described as follows: COMMENCING at a 1 inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 02° 24' 30" W, along the west lines of the said James Hamilton Survey and said Lot 4, a distance of 1320.00 feet to a 5/8 inch iron rod set at the southwest corner of said Lot 4 and the southwest corner of said Lot 3 for the POINT OF BEGINNING of the herein described tract. 51049 4 -- 4 -- 01/17/05 Draft THENCE N 02° 24' 30" W, continuing along the west line of the said James Hamilton Survey and along the west line of said Lot 3, a distance of 594.00 feet to a set 5/8 inch iron rod; THENCE N 87© 35' 30" E, a distance of 660.00 feet to a set 5/8 inch iron rod; THENCE S 02© 24' 30" E, a distance of 594.00 feet to a 5/8 inch iron rod set in the common line of said Lots 3 and 4; THENCE S 87° 35' 30" W, along the common line of said Lots 3 and 4, a distance of 660.00 feet to the POINT OF BEGINNING and containing 9.0000 acre (392;040 square feet) of land. TRACT III: A parcel of land containing 5.0000 acres (217,800 square feet), more or less, out of Lot 4 of the said subdivision of the James Hamilton Survey and being more particularly described as follows: COMMENCING at a 1 inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 02© 24' 30" W, along the west lines of the said James Hamilton Survey and said Lot 4, a distance of 990.00 feet to a 5/8 inch iron rod set for the POINT OF BEGINNING; THENCE N 02° 24' 30" W, continuing along the west lines of the said James Hamilton Survey and said Lot 4, a distance of 330.00 feet to a 5/8 inch iron rod set at the northwest corner of said Lot 4 and southwest corner of said Lot 3; THENCE N 87© 35' 30" E, along the common line of said Lots 3 and 4, a distance of 660.00 feet to a set 5/8 inch iron rod; THENCE S 02© 24' 30" E, a distance of 330.00 feet to a set 5/8 inch iron rod; THENCE S 87© 35' 30" W, a distance of 660.00 feet to the POINT OF BEGINNING and containing 5.0000 acres (217,800 square feet) of land. 51049 4 -- 5 -- 01/17/05 Draft TRACT IV: A parcel of land containing 5.0000 acres (217,800 square feet), more or less, out of Lot 3 of the said subdivision of the James Hamilton Survey and being more particularly described as follows: COMMENCING at a t inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 87© 35' 30" E, along the south lines of the said James Hamilton Survey and the said Lot 4, a distance of 1320.00 feet to a 3/4 inch iron rod found at the southeast corner of said Lot 4 and the southwest corner of Lot 5 of said subdivision of the James Hamilton Survey; THENCE N 02© 24' 30" W, along the common line of said Lots 4 and 5, a distance of 1320.00 feet to a 1/2 inch iron pipe found at the common corner of said Lots 3, 4, 5 and 6, from said 1/2 inch iron pipe a found 1 inch iron rod bears S 03© 07' 14" W, 0.98 feet in length, also from said 1/2 inch iron pipe a found fence corner bears S 87© 53' 08" E, 0.88 feet in length, said 1/2 inch iron pipe also being the POINT OF BEGINNING of the herein described tract; THENCE S 87© 35' 30" W, along the common line of said Lots 3 and 4, a distance of 660.00 feet to a set 5/8 inch iron rod; THENCE N 02© 24' 30" W, a distance of 330.00 feet to a set 5/8 inch iron rod; THENCE N 87© 35' 30" E, a distance of 660.00 feet to a 5/8 inch iron rod set in the common line of said Lots 3 and 6; THENCE S 02© 24' 30" E, along the common line of said Lots 3 and 6, a distance of 330.00 feet to the POINT OF BEGINNING and containing 5.0000 acres (217,800 square feet) of land. TRACT V: A parcel of land containing 5.000 acres (217,800 square feet), more or less, out of Lot 3 of the said subdivision 51049 4 -- 6 -- 01/17/05 Draft of the James Hamilton Survey and being more particularly described as follows: COMMENCING at a 1 inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 87© 35' 30" E, along the south lines of the said James Hamilton Survey and said Lot 4, a distance of 1320.00 feet to a 3/4 inch iron rod found at the southeast corner of said Lot 4 and the southwest corner of Lot 5 of the said subdivision of the James Hamilton Survey; THENCE N 02© 24' 30" W, along the common line of said Lots 4 and 5, at a distance of 1320.00 feet pass a 1/2 inch iron pipe found at the common corner of said Lots 3, 4, 5 and 6, from said h inch iron pipe a found 1 inch iron rod bears S 03© 07' 14" W, 0.98 feet in length, also from said 1/2 inch iron pipe a found fence corner bears S 87© 53' 08" E, 0.88 feet in length, in all a distance of 1650.00 feet to a 5/8 inch rod set for the POINT OF BEGINNING; THENCE S 87© 35' 30" W, a distance of 660.00 feet to a set 5/8 inch iron rod; THENCE N 02© 24' 30" W, a distance of 330.00 feet to a 5/8 inch iron rod; THENCE N 87© 35' 30" E, a distance of 660.00 feet to a 5/8 inch iron rod set in the common line of said Lots 3 and 6; THENCE S 02© 24' 30" E, along the common line of said Lots 3 and 6, a distance of 330.00 feet to the POINT OF BEGINNING and containing 5.0000 acres (217,800 square feet) of land. TRACT VI: A parcel of land containing 5.0000 acres (217,800 square feet), more or less, out of Lot 4 of the said subdivision of the James Hamilton Survey and being more particularly described as follows: 51049 4 - 7 - 01/17/05 Draft COMMENCING at a 1 inch iron pipe found at the southwest corner of the said James Hamilton Survey, said point also being the southwest corner of said Lot 4; THENCE N 02° 24' 30" W, along the west lines of the said James Hamilton Survey and said Lot 4, a distance of 330.00 feet to a 5/8 inch iron rod set for the POINT OF BEGINNING; THENCE N 02° 24' 30" W, continuing along the west lines of the said James Hamilton Survey and said Lot 4, a distance of 330.00 feet to a set 5/8 inch iron rod; THENCE N 87© 35' 30" E, a distance of 660.00 feet to a set 5/8 inch iron rod; THENCE S 02° 24' 30" E, a distance of 330.00 feet to a set 5/8 inch iron rod; THENCE 87° 35' 30" W, a distance of 660.00 feet to the POINT OF BEGINNING and containing 5.0000 acres (217,800 square feet) of land. TRACT VII: Ail that certain 9.9963 acre tract or parcel of land, more or less, lying and being situated in the DAVID WHITE (Assignee of James Hamilton) Survey, Abstract 881, Harris County, Texas, and being a portion of that certain 15 acre tract of land described in deed from Julius S. Worland to J.V. King, dated August 17, 1954 and recorded in Volume 2309, Page 695, Deed Records of Harris County, Texas and being more particularly described as follows: BEGINNING at a 1" iron pipe in the west line of the said 15 acre tract, same being located South 317.96 feet from its northwest corner and said beginning point also being the point of intersection of the southerly right-of-way line of the proposed South Belt Highway with the aforementioned west line of the 15 acre tract; THENCE S 87° 04' 09" E, along the southerly line of the said South Belt Highway at 23.40 feet pass a concrete monument, in 51049_4 - 8 - 01/17/05 Draft all 660.87 feet to a 1" iron pipe for corner in the east line of the said 15 acre tract; THENCE South, along the east line of the said 15 acre tract, 641.58 feet to a 1" iron pipe for the southeast corner of the tract herein described; THENCE N 89° 41' W, along the south line of the tract 660.00 feet to a 1" iron pipe for its Southwest corner; THENCE North, along the west line of the said 15 acre tract, 674.57 feet to the point or PLACE OF BEGINNING and containing as aforesaid 9.9963 acres of land. Such tracts comprising a total of 127.6954 acres, more or less. SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries and field notes of the district form a closure. If a mistake is made in the field notes or in copying the field notes in the legislative process, the mistake does not in any way affect the district's: (t) organization, existence, or validity; (2) right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on a bond; (3) right to impose or collect an assessment or tax; or (4) legality or operation. SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. Ail the land and other property included in the district will be benefited by the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this Act. (b) The creation of the district is in the public interest and is essential to: 51049_4 -- 9 -- 01/17/05 Draft (1) further the public purposes of development and diversification of the economy of the state; and (2) eliminate unemployment and underemployment and develop or expand transportation and commerce. The district will: (1) promote the health, safety, and general welfare of residents, employers, employees, visitors, and consumers in the district and the general public; (2) provide needed funding to preserve, maintain, and enhance the economic health and vitality of the district as a community and business center; and (3) further promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty. (d) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement. (e) The district will not act as the agent or instrumentality of any private interest even though many private interests, as well as the general public, will be benefited by the district. SECTION 6. APPLICATION OF OTHER LAW. (a) Except as otherwise provided by this Act, Chapter 375, Local Government Code, applies to the district. (b) Chapter 311, Government Code, applies to this Act. SECTION 7. CONSTRUCTION OF ACT. This Act shall be liberally construed in conformity with the findings and purposes stated in this Act. 51049 4 -- 10 - 01/17/05 Draft SECTION 8. BOARD OF DIRECTORS IN GENERAL. (a) Except as provided by Subsection (c), the district is governed by a board of five voting directors appointed under Section 9. (b) Directors serve staggered terms of four years, with two directors' terms expiring June 1 of an odd-numbered year and three directors' terms expiring June 1 of the following odd- numbered year. (c) A position as director on the board that is vacant for any reason including death, resignation, disqualification, or abstention from participation in a vote due to a conflict of interest, is not counted for the purposes of determining the requirements for a quorum of the board. SECTION 9. APPOINTMENT OF DIRECTORS. At least 30 days prior to nominating any director, the board shall solicit from the property owners within the district the names of proposed directors in the manner the board deems best suited to elicit input, and the board shall conform its director nominations to the requirement that at least a majority of serving directors shall have been named from a list provided by the owner of at least 50 percent of the area of taxable real property within the district (as determined by the official records of the Harris County Appraisal District); provided that if (i) there is no such qualified property owner, or (ii) no qualified names are provided by such property owner within 30 days of a written request therefor, the board any nominate any qualified person as director. The mayor and members of the governing body of the city shall appoint district directors from persons nominated by the board. A person is appointed if a majority of the council members and the mayor of the city vote to appoint that person. SECTION 10. EMINENT DOMAIN. The district shall not have the power of eminent domain. SECTION 11. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. 51049_4 -- 11 -- 01/17/05 Draft (a) (1) and decismons; (2) Except as provided by this section: a director may participate in all board votes and Chapter 171, Local Government Code, governs conflicts of interest for directors. (b) Section 171.004, Local Government Code, does not apply to the district. A director who has a substantial interest in a business or charitable entity that will receive a pecuniary benefit from a board action shall file a one-time affidavit declaring the interest. An additional affidavit is required if the director's interest changes substantially. After the affidavit is filed with the board secretary, the director may participate in a discussion or vote on that action if: (t) a majority of the directors have a similar interest in the same entity; or (2) all other similar business or charitable the district will receive a similar pecuniary entities in benefit. (c) For purposes of this section, a director has a substantial interest in a charitable entity in the same manner that a person would have a substantial interest in a business entity under Section 171.002, Local Government Code. SECTION 12. ADDITIONAL POWERS OF DISTRICT. district may exercise development corporation Corporation Act of 1979 Statutes), including the construct, lease, improve, and maintain projects described by that section. (b) The district shall have the power to acquire, lease as lessor or lessee, construct, develop, own, operate and (a) The the powers given to an economic under Section 4B, Development (Article 5190.6, Texas Revised Civil power to own, operate, acquire, 51049 4 -- 12 - 01/17/05 Draft maintain parking facilities or a system of parking facilities. Parking facilities include lots, garages, parking terminals or other structure or accommodation for the parking of motor vehicles off the streets and includes equipment, entrances, exits, fencing and other accessories necessary for the safety and convenience in the parking of vehicles. Ail parking facilities of the district may either be leased to or operated for the district by a private entity or an entity other than the district. The district's parking facilities will serve the public purposes expressed in this Act and be owned, used and held for public purposes even if leased or operated by a private entity for a term of years. (C) The district may use any of its resources, including revenues, assessments, taxes, or grant or contract proceeds to pay the cost of acquiring and operating a system of public parking facilities. The district may adopt rules and regulations covering its public parking system provided, however that any rules relating to or affecting use of the public right- of-way or requirements for off-street parking shall be subject to all applicable municipal charter, code and ordinance requirements. The district may set and determine and the district may charge impose, levy and collect fees, charges and tolls for the use of the public parking facilities and may issue bonds or notes to finance the cost of these facilities. SECTION 13. AGREEMENTS; GRANTS. (a) The district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. SECTION 14. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified 51049_4 -- 13 -- 01/17/05 Draft party, including the County or the City, to provide law enforcement services in the district for a fee. SECTION 15. NONPROFIT CORPORATION. Ia) The board by resolution may authorize the creation of a nonprofit corporation to assist and act on behalf of the district in implementing a project or providing a service authorized by this Act. (b) The board shall appoint the board of directors of a nonprofit corporation created under this section. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Chapter 431, Transportation Code; provided that they need not live in the district. (c) A nonprofit corporation created under this section has the powers of and is considered for purposes of this Act to be a local government corporation created under Chapter 431, Transportation Code. (d) A nonprofit corporation created under this section may implement any project and provide any service authorized by this Act. SECTION IMPROVEMENTS. 16. REQUIREMENTS FOR FINANCING SERVICES AND The district may acquire, construct, finance, operate and maintain any improvement or service authorized under this Act or Chapter 375, Local Government Code; provided that, the board may not finance a service or improvement project with assessments under this Act unless a written petition requesting that improvement or service has been filed with the board. The petition must be signed by the owners of a majority of the assessed value of real property in the district subject to the assessment as determined by the most recent certified tax appraisal roll for the County. 51049 4 - 14 - 01/17/05 Draft SECTION 17. ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this Act. (b) Assessments, including assessments resulting from an addition to or correction of the assessment roll by the district, reassessments, penalties and interest on an assessment or reassessment, expenses of collection, and reasonable attorney's fees incurred by the district: (1) are a first and prior lien against the property assessed; (2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and (3) are the personal liability of and charge against the owners of the property even if the owners are not named in the assessment proceedings. (c) The lien is effective from the date of the resolution of the board imposing the assessment until the date the assessment is paid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property. (d) Without necessity of notice and hearing in the manner required for additional assessments, the board may make corrections to or deletions from the assessment roll provided that such corrections or deletions do not increase the amount of assessment of any parcel of land. SECTION 18. ELECTIONS. (a) The district shall hold an election in the manner required for municipal utility districts operating pursuant to Chapters 49 and 54, Water Code, to obtain voter approval before the district imposes a sales and use tax, an ad valorem tax or issues bonds payable from ad valorem taxes. 51049 4 -- 15 -- 01/17/05 Draft (b) The board may include more than one purpose in a single proposition at an election. (c) Subchapter L, Chapter 375, Local Government Code, does not apply to the district. SECTION 19. AD VALOREM TAX. (a) If authorized at an election held in accordance with Section 18, the district may impose an annual ad valorem tax on taxable property in the district for any purpose authorized by this Act, including without limitation economic development, the acquisition or construction of public improvements, the maintenance and operation of the district and the improvements constructed or acquired by the district or for the provision of services. (b) The board shall determine the ad valorem tax rate. Section 54.601, Water code, shall apply to the district. SECTION 20. SALES AND USE TAX; EXCISE TAX. (a) For purposes of this section: (1) "Taxable items" includes all items subject to any sales and use tax that could be imposed by the city if the city has imposed a sales and use tax. (2) "Use" with respect to a taxable service, means the derivation in the district of a direct or indirect benefit from the service. (b) The district may impose a sales and use tax for the benefit of the district if authorized by a majority of the qualified voters of the district voting at an election called for that purpose. (c) If the district adopts a sales and use tax: (1) a tax is imposed on the receipts from the sale at retail of taxable items in the district; and (2) an excise tax is imposed on the use, storage, or other consumption in the district of taxable items purchased 51049 4 -- 16 -- 01/17/05 Draft or rented from a retailer during the period that the tax is effective in the district. (d) The rate of the excise tax is the same as the rate of the sales tax portion of the tax applied to the sales price of the taxable items and is included in the sales tax. The proceeds of the sales and use tax shall be used for the purposes for which the district was created. SECTION 21. SALES AND USE TAX ELECTION PROCEDURES. (a) The board by order may call an election to adopt a sales and use tax. The election may be held at the same time and in conjunction with any other district election. (b) In an election to adopt the tax, the ballot shall be prepared to permit voting for or against the proposition: "The adoption of a local sales and use tax in the Pearland Municipal Management District No. 1 at the rate of one-half percent." SECTION 22. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF SALES AND USE TAX. (a) the extent not inconsistent with imposition, application, collection, Chapter 321, Tax Code, to this Act, governs the and administration of a sales and use tax under this Act, except that sections 321.401- 321.406, Tax Code, do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code, govern the administration and enforcement of the taxes under this Act. (b) Chapter 321, Tax Code, does not apply to the use and allocation of revenues under this Act. (c) In applying Chapter 321, Tax Code, the district's name shall be substituted for references in that chapter to "the municipality" and the district's board is substituted for references in that chapter to "governing body." (d) The adoption of a tax rate or change in the tax rate takes effect as provided in Chapter 321, Tax Code. 51049 4 -- ~7 -- 01/17/05 Draft (e) The sales and use tax may not be abolished so long as the district has debt secured thereby outstanding. The board, with consent of the city, by order may abolish the local sales and use tax without an election. (f) in the event of an annexation by the district, the sales and use tax shall be automatically applicable to the annexed area. Not later than the 10th day after the date on which the district annexes or excludes territory, the board shall send to the comptroller a certified copy of any resolution, order, or ordinance relating to the annexation or exclusion. SECTION 23. UTILITIES. The district may not impose and impact fee or assessment on the property, equipment, rights of way, facilities, or improvements of an electric utility or a power generation company as defined by Section 31.002, Utilities Code, a gas utility as defined by Section 101.003 or 121.001, Utilities Code, a telecommunications provider as defined by Section 51.002, Utilities Code, or of a person that provides to the public cable television or advanced telecommunications services. If the district, in the exercise of the powers conferred on it by this Act, requires or requests the relocation, rerouting, or removal of electric, gas, water, sewer, communications, or other public utilities, as defined by Sections 31.002, 101.003, 121.001, or 51.002, Utilities Code, the relocation, rerouting, or removal shall be at the sole expense of the district. SECTION 24. BONDS. (a) The district may issue bonds or other obligations, by competitive bid or negotiated sale, payable in whole or in part from sales and use taxes, ad valorem taxes, assessments, impact fees, revenue, grants, economic development grant funds, or other money of the district, or any 51049 4 -- 18 - 01/17/05 Draft combination of those sources of money, to pay for any authorized purpose of the district. (b) In exercising the district's borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation. The term of the bonds may not exceed 40 years from the date of issuance. (c) The district may pledge to the payment of its bonds any source of funds to which it is lawfully or contractually entitled, including economic development funds contributed by the city and an economic development corporation. SECTION 26. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, a municipality is not required to pay a bond, note, or other obligation of the district. SECTION 27. DISBURSEMENTS OR TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. SECTION 28. BIDDING REQUIREMENTS. Notwithstanding any other law or regulation, the district's requirements relating to bidding of contracts shall be the same as required for a local government corporation created pursuant to subchapter D, chapter 431, Transportation Code. SECTION 29. INITIAL DIRECTORS. (a) The initial board consists of the following persons: Pos. No. Name of Director 51049 4 -- 19 - 01/17/05 Draft 5 (b) Of the initial directors, the terms of directors appointed for positions 1 through 3 expire June 1, 2007, and the terms of directors appointed for positions 4 and 5 expire June 1, 2009. (c) Section 8 does not apply to this section. (d) This section expires June 1, 2009. SECTION 30. TAX AND ASSESSMENT ABATEMENTS. Without further authorization or other procedural requirement, the district may grant, consistent with Chapter 312, Tax Code, an abatement for a tax or assessment owed to the district. SECTION 31. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to an organization that enjoys tax-exempt status under Sections 501(c) (3), (4), or (6), Internal Revenue Code of 1986, as amended, and that performs services or provides activities consistent with the furtherance of the purposes of the district. An expenditure of public money for membership in the organization is considered to further the purposes of the district and to be for a public purpose. SECTION 32. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. Ail or any part of the area of the district is eligible, notwithstanding other statutory criteria, to be included in a tax increment reinvestment zone created by the city under Chapter 311, Tax Code, or included in a tax abatement reinvestment zone created by the city under Chapter 312, Tax Code. Ail or any part of the area of the district is also eligible to be included in an enterprise zone created by the city under Chapter 2303, Government Code. SECTION 33. ECONOMIC DEVELOPMENT PROGRAMS. The district may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money, including .bond proceeds, and providing personnel 51049 4 -- 20 -- 01/17/05 Draft and services of the district, to promote state or local economic development and to stimulate business and commercial activity in the district. District improvements qualify as "projects" for funding by an economic development corporation. The district has all of the powers and authority of a municipality under Chapter 380, Local Government Code and is further authorized to receive grants from municipalities pursuant to such statute. SECTION 34. LEGISLATIVE FINDINGS. The legislature finds that: (1) proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the Texas Commission on Environmental Quality; (2) the Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time; (3) the general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with; and (4) all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished. SECTION 35. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, 51049 4 -- 21 - 01/17/05 Draft Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005. 51049 4 -- 22 - 01/17/05 Draft