Relating to the creation of the Travis County Municipal Utility District No. 40; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Contracts

• Reimbursement Agreements: Developers must execute formal reimbursement agreements with the District *prior* to infrastructure construction to ensure eligibility for future repayment via bond proceeds.
• Public Works Contracts: All construction contracts issued by the District must comply with Texas Government Code Chapter 2258 (Prevailing Wage Rates) and require statutory performance and payment bonds.
• Vendor Indemnification: Standard vendor contracts must be revised to remove broad indemnification clauses, as the District, a political subdivision, holds governmental immunity.

Hiring/Training

• Board Appointments: Five temporary directors must be identified and appointed. These individuals must be qualified (residents or landowners) and require immediate Directors & Officers (D&O) liability insurance and surety bonds.
• Conflict of Interest: Directors and vendors must be trained on filing Form CIQ (Conflict of Interest Questionnaire) and Form CIS (Conflicts Disclosure Statement) under Local Government Code Chapter 176.

Reporting & Record-Keeping

• Governance Records: The District must immediately commence record-keeping (agendas, minutes, voting records) in strict compliance with the Texas Open Meetings Act and Public Information Act.
• TCEQ Filings: A petition requesting the appointment of temporary directors must be filed with the TCEQ immediately.
• Election Orders: The Board must issue orders for the confirmation election, director election, and tax authorization election, aligning with statutory Uniform Election Dates.

Fees & Costs

• Election Costs: The District must budget for the administration of the confirmation election (ballots, polling locations, notices).
• Bond Issuance Costs: Legal and financial advisory fees will be incurred to structure bond issuances.
• Ad Valorem Taxes: Upon voter approval, the District will have unlimited authority to set tax rates for water/sewer debt service, and capped authority (max $0.25/$100 valuation implied by similar statutes, though strictly capped at 25% of assessed value for road bonds) for road projects.