Relating to the creation of the Lake Houston Dredging and Maintenance District; providing the authority to issue bonds.

Contracts

• Payment Security: Legal counsel must amend standard agreements to reject "tax revenue" as a funding source or collateral. The District is statutorily barred from taxing; contracts must be secured by verified bond proceeds or existing cash from material sales.
• Indemnification: Revise liability clauses to account for Section 9602.0302(f), which grants the City of Houston statutory immunity. You cannot pass liability upstream to the City for dredging damages; the buck stops with the District (which has limited funds) and the Contractor.

Hiring/Training

• Water Quality Control: Project managers and site supervisors must be trained on strict turbidity control. The statute mandates zero-tolerance for operations that "negatively affect" water quality destined for the Northeast Water Purification Plant.

Reporting & Record-Keeping

• Turbidity Logs: Maintain real-time water quality/turbidity logs for all dredging operations. These records will be your primary defense against statutory claims of water degradation.
• Material Provenance: If purchasing aggregate from the District, retain chain-of-custody documentation to prove the source. This validates exemptions from standard state royalty fees associated with streambed materials.

Fees & Costs

• Insurance Premiums: Expect potential increases in General Liability and Pollution Liability premiums, as carriers assess the higher risk profile caused by the City’s immunity shield.
• No New Taxes: The District is prohibited from imposing fees or taxes on businesses.