Relating to the creation of the Fenske Road Municipal Utility District of Harris County; 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 agreements with the District to define terms for bond reimbursement of infrastructure costs. These are subject to TCEQ review.
• Construction Contracts: All District-funded projects (or those intended for reimbursement) must include prevailing wage rate schedules (Texas Government Code Chapter 2258).
• Waiver of Immunity: Contractors must ensure contracts explicitly address waiver of sovereign immunity (Chapter 271, Local Government Code) to protect against breach of contract, as the District is a governmental entity.

Hiring/Training

• Director Qualification: The five named temporary directors (Dickson, Taylor, Foreman, Brown, Bueso) must immediately execute $10,000 official bonds and take the oath of office to establish a quorum.
• Sales Team Training: Real estate sales staff must be trained to disclose the District’s taxing authority to potential buyers to prevent contract termination or damages.

Reporting & Record-Keeping

• Notice to Purchasers: Update all closing documents and earnest money contracts to include the specific MUD notice required by law.
• Election Orders: The Board must document and file orders calling for the confirmation and director election.
• Conflict of Interest: Directors and vendors must file Form CIQ (Conflict of Interest Questionnaire) where applicable.

Fees & Costs

• New Taxing Authority: The District may impose an Operation and Maintenance (O&M) tax and contract taxes upon voter approval.
• Bond Cap: Road bonds are strictly limited to 25% of the assessed value of real property in the District. This cap is non-negotiable and impacts financial modeling for reimbursement.