RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2 NOTICE OF … · 2 days ago · captioned District will hold a public meeting by telephone conference call. Members of the public may

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RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2

NOTICE OF PUBLIC MEETING

Notice is hereby given to all interested parties that the Board of Directors of the captioned District will hold a public meeting by telephone conference call. Members of the public may access the meeting by following the instructions listed at the bottom of this notice.

The meeting will be held at 3:30 p.m. on Thursday, August 13, 2020. The subject of the meeting is to consider and act on the following:

1. Public Comment

2. Minutes of February 5, 2020 and April 9, 2020 Board of Directors Meetings

3. Appointment of Treasurer

4. Resolution Authorizing Bookkeeper and/or Treasurer to Sign CertainDisbursements Approved at a Telephonic Meeting

5. Bookkeeper’s Report; Payment of Bills; Developer Deposits

6. Ratify engineer’s report for bond election and park bond election

7. Order Calling Confirmation and Directors Election

8. Order Calling Bond Election

9. Order Calling a Maintenance Tax Election

10. Order Calling Election for Approval of Master District Contract and Contract Tax

11. Approve joint election agreement with Liberty County

12. Engage financial advisor and enter into contract for services

13. Engage tax assessor and enter into contract for services

14. Engage operator and enter into contract for services

15. Developer’s Report

J. Davis Bonham, Jr. Attorney for the District

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Page 2 of 296002-002 484547v1

Instructions for accessing telephone conference call:

On March 16, 2020, in accordance with section 418.016 of the Texas Government Code, Governor Abbott has suspended various provisions of the Texas Open Meetings Act that require government officials and members of the public to be physically present at a specified meeting location (the “Order”). In accordance with the Order, the District has implemented procedures to allow members of the public to participate and address the Board of Directors during the telephone conference meeting. To participate in the telephone conference meeting:

1. Please call 1-866-773-8424 and use access Code 811572# to access the meeting and announce your name to the meeting host.

2. The agenda packet is available at the following web site: https://2618compliance.wordpress.com/board-meeting-packets/

3. The audio of the meeting will be recorded.

Se notifica por el presente a todos los interesados que la Junta Directiva del Distrito mencionado en el título anterior realizará una asamblea pública por llamado de teleconferencia. Los miembros del público pueden acceder a la asamblea mediante las instrucciones que aparecen en la parte inferior de este aviso.

La asamblea se realizará el 13 de agosto de 2020 a las 3:30 p.m. El asunto a tratar en la asamblea es considerar y actuar sobre lo siguiente:

Adopte La Orden que llama una confirmación y a directores elección

Adopte La Orden que llama una elección para bonos

Adopte La Orden que llama una elección de impuesto del mantenimiento

Adopte La Orden de convocar la elección para la aprobación del contrato de distrito maestro y el impuesto del contrato

Instrucciones para acceder al llamado de teleconferencia:

El 16 de marzo de 2020, en conformidad con la sección 418.016 del Código de Gobierno de Texas, el gobernador Abbot suspendió diversas disposiciones de la Ley de Asambleas Públicas de Texas que exigen que los funcionarios del gobierno y miembros del público estén físicamente presentes en una ubicación de asamblea especificada (la “Orden”). En conformidad con la Orden, el Distrito ha implementado procedimientos para permitirles a los miembros del público participar y dirigirse a la Junta Directiva durante la asamblea por teleconferencia. Para participar en la asamblea por teleconferencia:

1. Llame al 1-866-773-8424 y use el Código de acceso 811572# para acceder a la asamblea y anuncie su nombre al organizador de la asamblea.

2. El paquete con el orden del día está disponible en el siguiente sitio web: https://2618compliance.wordpress.com/board-meeting-packets/

3. El audio de la asamblea será grabado.

2


Resolution Authorizing Bookkeeper or Treasurer to Sign Certain Disbursements Approved at a Telephonic Meeting

At a meeting of the Board of Directors (the “Board”) of River Ranch Municipal Utility

District No. 2 (the “District”) held on August 13, 2020, at which a quorum of said Board was

present, as follows:

Howie Howeth, PresidentTara Hanel, Vice PresidentB. Joyce Cox, SecretaryTroy Montes, Assistant SecretaryBeth Reynolds, Assistant Secretary

and the following director absent:

None

when the following business was transacted:

WHEREAS, pursuant to Texas Water Code, Section 49.151(b), the Board may by

resolution allow the general manager, treasurer, bookkeeper, or other employee of the district to

sign disbursements to sign disbursements on behalf of the District;

WHEREAS, in accordance with Governor Greg Abbott’s March 16, 2020 temporary

suspension of the requirement that a quorum of the Board be physically present, the District has

implemented procedures to allow telephonic meetings;

WHEREAS, the District has determined that it would be in its best interest to authorize the

District’s Bookkeeper or Treasurer to authorize disbursements;

WHEREAS, the Board hereby appoints ________________ as Treasurer of the District;

WHEREAS, the disbursements must be authorized and approved at a duly called and held

telephonic meeting prior to execution thereof by the Bookkeeper or Treasurer;

NOW, THEREFORE, the Board of Directors of the District hereby resolves and declares

as follows:

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96002-002 488811v1

1. The Board hereby authorizes its: (1) Bookkeeper(s); (2) Treasurer; or (3) three

directors currently designated on the depository bank’s signature card to sign all disbursements

listed on presented reports after said report has been approved at a duly called and conducted

telephonic meeting. The bookkeeper or applicable consultant shall report all disbursements in the

monthly report and shall not release the disbursements until approved by the Board.

2. The following bookkeepers are hereby authorized to be added to the existing

signature card on file with any depository bank:

a. Mary Jarmon

b. Lori Buckner

c. Christina Perry

d. Amy Symmank

e. Vanessa Hernandez

3. ________________ has been designated Treasurer of the District.

4. This authorization is effective immediately and shall remain in effect until

revoked by resolution of the Board.

[the remainder of this page intentionally left blank]

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96002-002 488811v1

Passed and adopted, this August 13, 2020.

PresidentATTEST:

Secretary

5

Twahl143

Stamp

96002-002 488811v1

I, the undersigned secretary of the board of directors River Ranch Municipal Utility

District No. 2, hereby certify that the foregoing is a true and correct copy of the Resolution

Authorizing Bookkeeper or Treasurer to Sign Disbursements Approved at a Telephonic Meeting,

adopted by said board at its meeting of August 13, 2020, together with excerpts from the minutes of

said board's meeting on that date showing the adoption and passage thereof, the originals of which

Resolution and excerpts from the minutes are now on file in the office of the District.

I further certify that said meeting was open to the public, and that notice was

given in compliance with the provisions of Tex. Gov’t. Code Ann. § 551.001 et seq. as adopted,

and as suspended in part by the Governor of Texas on March 16, 2020.

Witness my hand and seal of said District, this August 13, 2020.

__________________________________ Secretary

6

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~~~~- Myrtle Cruz, Inc. 3401 Louisiana St, STE 400 .Houston, Tx 77002-9552. (713)759-1368 . fax 759-1264 . email first [email protected]

RIVER RANCH MUD 2

Cash Report for Meeting of august 13th, 2020

OPERATING C3580P) BBVA 6781722098

Previous cash balance, April 9th, 2020 0.00

plus: 02/26 River Ranch Holdings; developer advance ............... 1,000.00 -------------------

Total Deposits 1,000.00 -------------------

Beginning cash balance, august 13th, 2020 1,000.00

less checks to be presented at this meeting 1001 Howie Howeth; 08/13 director fee........... .......... 138.52

6310 director fees 150.00 6514 payroll taxes 11.48-

1002 Troy Montes; 08/13 director fee............ .......... 138.52 6310 director fees 150.00 6514 payroll taxes 11.48-

1003 B. .7oyce Cox; 08/13 director fee........... .......... 138.52 6310 director fees 150.00 6514 payroll taxes 11.48-

1004 Beth Reynolds; 08/13 director fee.......... .......... 138.52 6310 director fees 150.00 6514 payroll taxes 11.48-

1005 Tara Hanel. ... .................. ....... . .. ....... .......... 138.52 6310 director fees 150.00 6514 payroll taxes 11.48-

1006 smith Murdaugh little Bonham, LLP; legal through 7/31/20.... 33,193.43 6320 36783 7anuary 7,854.00 6340 office expenses 80.50 6320 36885 February 8,317.50 6338 publish legal notice 30.00 6340 office expenses 1,425.85 6320 37033 March 5,051.00 6338 publish legal notice 134.00 6340 office expenses 19.75 6320 37240 April 2,087.00 6340 office expenses 123.90 6320 37407 May 6338 publish legal notice

1,530.00 167.80

6340 office expenses 10.38 6320 37579 .7une 1,112.00 6353 insurance & bonds 2,982.00 6320 37747 ]uly 2,218.00 6340 office expenses 49.75

1007 Myrtle Cruz, znc.; set up fee.. .. ..................... 600.00 1008 Myrtle Cruz, Inc.; Feb - Sul Bookkeeping expenses........... 1,912.95

6340 office expenses 13.74 6333 March Bookkeeping 525.00 6340 office expenses 50.42 6333 April Bookkeeping 300.00 6340 office expenses 80.17 6333 May aookkeeping 300.00 6340 office expenses 12.14 6333 tune eookkeeping 300.00 6340 office expenses 12.14 6333 7uly Bookkeeping 300.00 6340 office expenses 19.34

1009 Gateway; Inv 4953386-0 check stock.... ............... 82.95 1010 River Ranch Holdings; reimb ~andev Inv 14887 ................ 5,130.00 1011 Howie Howeth; 2/5, 4/9 director fees....... .......... 277.04

6310 director fees 300.00

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RIVER RANCH MUD 2

Cash Report for Meeting of August 13th, 2020 Page 2

6514 payroll taxes 22.96-

1012 Troy Montes; 2/5,4/9 director fees......... .......... 277.04 6310 director fees 300.00 6514 payroll taxes 22.96-

1013 B. 7oyce Cox; 4/9 director fee ............. .......... 138.52 6310 director fees 150.00 _ _. ___ ._ 6514 payroll taxes 11.48-

previous cash balance -------------------

0.00 1 receipts 1,000.00 13 current checks < .42,304.53 >

ending cash balance 41,304.53-

OPERATING FUNDS AVAILABLE August 13th, 2020 ------------------- -------------------

------------------- -------------------$41,304.53-

8

RIVER RANCH MUD 2 Budget for Fiscal Year Ending May 31, 2021

11-Jun-20

2 months PROPOSED Revenue Developer Advances Maintenance Tax Interest Earnings

TOTAL REVENUE

Expenses Directors Fees Payroll Taxes Legal (general) Auditing Engineering Bookkeeping Fees Legal Notice/Publication Office Expenses Election Expenses Insurance &Bonds Travel Expenses Tax Assessor

TOTAL EXPENSES

Beginning Balance

Net Surplus or (Deficit)

CASH BALANCE

6/11/2020

Actual MTD Bud et MTD Actual YTD Bud et YTD Annual Bud et 1,000.00 10,000.00 1,000.00 20,000.00 120,000.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1,000.00 10,000.00 1,000.00 20,000.00 120,000.00

Bud et MTD Actual YTD Bud et YTD Anneal Bud et 1,500.00 500,00 1,500.00 1,000.00 6,000.00 -114.80 83.33 -114.80 166.67 1,000.00

28,169.50 5,416.67 28,169.50 10,833.33 65,000.00 0.00 0.00 0.00 0.00 0.00

5,130.00 1,666.67 5,130.00 3,333.33 20,000.00 2,325.00 625.00 2,325.00 1,250.00 7,500.00

331.80 416.67 331.80 833.33 5,000.00 1,981.03 125.00 1,981.03 250.00 1,500.00

0.00 416.67 0.00 833.33 5,000.00 2,982.00 0.00 2,982.00 0.00 5,000.00

0.00 62.50 0,00 125.00 750.00 0.00 250.00 0.00 500.00 3,000.00

42,304.53 9,562.50 42,304.53 19,125.00 119,750.00

0.00 0.00

(41,304.53) (41,304.53) ~ 250.00

(41,304.53) (41,304.53)

9

Deposit / Collateral Report by District

RIVER RANCH MUD 2

Tax ID -Pledge: 844283748-83748

1st. Consultant: MCI-MYRTLE CRUZ, INC.

2nd. Consultant:

Deposits

Interest Account

Acct No Funds Tvbe Class 6781722098 Interest Account

BBVA

Pledge Date: 03/02/2020

Accounts Through: 2/28/2020 10:00 PM

Memo Posts Through: NO MEMO POSTS

Balance Interest Total $1,000.00 ~o.00 X1,000.00

Subtotal Interest Account $1,000.00 $0.00 $1,000.00

Total Deposits $1,000.00 $0.00 $1,000.00

Securities

~A Custodian CUSIP Maturi , Date Date Pledged Units Pledged Market Value

Total Securities Pledged

DEPOSIT /COLLATERAL POSITION CALCULATION

Subtotal Interest Deposits $1,000.00

Subtotal Non-Interest Deposits $0.00

Subtotal Bond Fund Deposits $0.00

TOTAL DEPOSITS LESS APPLICABLE FDIC

Subtotal Interest Deposits Subtotal Non-Interest Deposits Subtotal Bond Fund Deposits

Deposits Requiring Collateral TOTAL SECURITIES PLEDGED DEPOSIT COLLATERAL POSITION - 100% DEPOSIT COLLATERAL POSITION - 105%

$1,000.00

$1,000.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

0%

Report Date 3/5/2020 1:41 PM Page :267 / 313

10

~ _

Deposit 1 Collateral Report by District

RIVER RANCH MUD 2 BBvq Tax ID -Pledge: 844283748-83748 Pledge Date: 04/01/2020

1st. Consultant: MCI-MYRTLE CRUZ, INC. Accounts Through: 3/31/2020 10:00 PM

2nd. Consultant: Memo Posts Through: NO MEMO POSTS

Deposits

Interest Account

Acct No Funds Tvpe Class Balance Interest Total 6781722098 Interest Account $1,000.00 $0.00 $1,000.00


Tofal Deposits $1,000.00 $0.00 $1,000.00

Securities

~A enc.X Custodian CUSIP Matm7ty Date Date Pledeed Units Pledted Market Value



Subtotal Interest Deposits $1,000.00 Subtotal Non-Interest Deposits $0.00 Subtotal Bond Fund Deposits $0.00

TOTAL DEPOSITS $1,000.00 LESS APPLICABLE FDIC


Deposits Requiring Collateral TOTAL SECURITIES PLEDGED DEPOSIT COLLATERAL POSITION -100% DEPOSIT COLLATERAL POSITION -105%

$0.00 $0.00 $0.00 $0.00

0%

Report Date 4/7/2020 1038 AM Page :277 / 321

11

Deposit /Collateral Report by District

RIVER RANCH MUD 2 Tax ID -Pledge: 844283748-83748


2nd. Consultant:

Deposits

Interest Account

Acct No Funds Tvpe Class 6781722098 Interest Account

_ 7 A. : ,F:... ~ i

i r 1 ~

BBVA




Balance Interest Total $1,000.00 $0.00 $1,000.00


Total Deposits $1,000.00 $0.00 $1,000.00

Securities

Agency .Custodian CUSIP Maturity Date Date Pledged Units Pledged Market Value







$1,000.00

$1,000.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

0%

Report Date 5/4/2020 10:36 AM Page :274 / 317

12

tta ~ I ' ~ 1S ~

i

Deposit I Collateral Report by Districfi ~~'y ~~~ ~;'

RIVER RANCH MUD 2 sBVA Tax ID -Pledge; 844283748-83748 Pledge Date: 06/01/2020

1st. Consultant: MCI-MYRTLE CRUZ, INC. Accounts Through: 5/29/2020 10:00 PM

2nd. Consultant: Memo Posts Through: NO MEMO POSTS

Deposits

Interest Account

Acct No Funds Type Class Balance Interest Total 6781722098 Interest Account $1,000.00 $0.00 $1,000.00


Total Deposits $1,000.00 $0.00 $1,000.00

Securities

A~ncX Custodian CUSIP Maturity Date PledEed Units Pledged Market Value


DEPOSIT I COLLATERAL POSITION CALCULATION





$1,000.00 $0.00 $0.00

$1,000.00

$1,000.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

0%

Report Date 6/2/2020 12:13 PM Page ; 278 / 321

13

Deposit /Collateral Report by District

RIVER RANCH MUD 2 Tax ID -Pledge: 844283748-83748


2nd. Consultant:

Deposits

Interest Account

~ I I l ~: ,, ,`, p ~ ~:: ~, , ~ i , a _~ _ ~ ~;4 .,r~

BBVA




Acct No Funds Tvpe Class Balance Interest Total 6781722098 Interest Account $1,000.00 $0.00 $1,000.00


Total Deposits $1,000.00 $0,00 $1,000.00

Securities

A envy Custodian CUSIP Maturity Date Date Pledged Units Pledeed Market Value






Deposits Requiring Collateral TOTAL SECURITIES PLEDGED DEPOSIT COLLATERAL POSITION -100% DEPOSIT COLLATERAL POSITION -105%

$1,000.00 $0.00 $0.00

$1,000.00

$1,000.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

0%

Report Date 7/3/2020 11:05 AM Page :276 / 319

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96002-003 488773v1


Order of Board of Directors Calling an Election Uponthe Proposition of Confirming the District

and Electing Permanent Directors






None


The order set out below was introduced for consideration of the board. It was duly

moved and seconded that said order be adopted; and, after due discussion, said motion was

carried by the following vote:

Ayes: All directors present.

Noes: None.

The order thus adopted is as follows:

Whereas, River Ranch Municipal Utility District was created by Special District Local

Laws Code Chapter 7991, effective September 1, 2017 (“Act”), with the power to divide into

two or more Districts;

Whereas, River Ranch Municipal Utility District adopted an Order Dividing District

(“Dividing Order”) on the Board’s own motion dated May 10, 2018 creating River Ranch

Municipal Utility District Nos. 1 through 15;

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96002-003 488773v1

Whereas, River Ranch Municipal Utility District No. 2 will have all the powers and the

duties of the Districts created within the Act, and consist of 145.252 acres; and

Whereas, said Dividing Order appointed five temporary directors, being:

Ashley ThackerMacy O’NealBeth ReynoldsHowie HowethTroy Montes

Whereas, it is provided by law that the remaining directors shall fill by appointment all

vacancies on the Board for the unexpired term of such vacancy.

Whereas, Ashley Thacker has resigned, and the Board has appointed B. Joyce Cox, a

qualified person, to fill the vacancy.

Whereas, Macy O’Neal has resigned, and Tara Hanel has been appointed to fill the

vacancy.

Whereas, it is provided by the Act and the Texas Water Code that before the District can

issue bonds or incur other obligations, an election shall be held within the boundaries of the

District to determine if the District shall be established and to elect permanent directors; and the

board of directors deems it advisable and to the best interest of the District that an order be made

at this time calling such election.

Whereas, Section 49.102, Texas Water Code, provides that the ballot in the confirmation

and directors election shall have thereon as candidates for permanent directors the names of the

persons appointed by said Commission as temporary directors who qualified as such.

It is, therefore, ordered by the board of directors of River Ranch Municipal Utility

District No. 2 as follows:

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96002-003 488773v1

An election shall be held for and within the District on November 3, 2020. The following

shall be submitted to the duly qualified resident electors of the District for their action thereon

(a) on the following proposition:

PROPOSITION

THE CONFIRMATION OF THE CREATION OF RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2

and

(b) for the election of five permanent directors of the District.

The election will be conducted in compliance with the provisions of the federal Help

America Vote Act (HAVA) and the Texas Election Code, and each polling place will have at

least one voting system accessible to individuals with disabilities, including those using

manually-counted paper ballots.

Paper and/or electronic ballots shall be used in the election. Ballots, voting instructions

and the proposition shall be made available in the Spanish language for those requesting same.

The ballots for said election shall conform to the requirements of the Texas Water Code and the

Texas Election Code, as amended, so far as applicable, and shall have printed thereon, in the

English and Spanish languages, the following:

OFFICIAL BALLOT

Instruction Note: Place an “X” in the square beside the statement indicating the way you wish to vote

• FOR -DISTRICT

• AGAINST -

and also the names of the persons appointed by the Act and Dividing Order as temporary

directors who qualified as such; and five blank spaces shall be left on the ballot to write in the

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96002-003 488773v1

names of other persons for whom the voters may wish to vote as directors, as follows:

• Howie Howeth

• Beth Reynolds

• Troy Montes

• Tara Hanel

• B. Joyce Cox

• ____________________________

• ____________________________

• ____________________________

• ____________________________

• ____________________________

Each voter shall place an “X” in the square beside the word “FOR” or the word

“AGAINST” on the question of the confirmation of the District, indicating thereby the way he or

she wishes to vote on that proposition.

Each voter shall vote for no more than five directors.

The District shall enter into a Joint Election Agreement and Contract for Election

Services (the “Agreement”) with Liberty County (hereinafter referred to as “County”) for the

purpose of having the County’s Elections Administrator provide certain joint election services

and equipment needed by the District in conjunction with the election on November 3, 2020.

County shall be responsible for furnishing services and equipment and performing duties as

described in the Agreement.

Early voting will be held on October 13, 2020 through October 30, 2020, and ballots shall

conform to the requirements of the said Texas Water Code and Election Code, as amended, so

far as applicable. The District hereby adopts the Liberty County voting precincts, and hereby

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96002-003 488773v1

adopts the Liberty County early voting and election day polling places for purposes of said

election. Voting shall be held at the applicable Liberty County polling places, whether or not

such polling locations are within or outside the District’s boundaries.

Applications for ballots by mail shall be mailed to: Liberty County Courthouse, 1923

Sam Houston Street, Room 217, Liberty, Texas 77575. Applications for ballots by mail must be

received no later than the close of business on October 23, 2020.

The election shall be held within legal hours on November 3, 2020 at the location(s)

established by Liberty County.

The District shall constitute one election precinct for purposes of this election.

Only duly qualified residents of the District shall be entitled to vote at the election.

The District’s attorneys are authorized and directed to assist the secretary of the Board in

preparing the official ballot and procuring and distributing the election supplies and equipment.

The election will be conducted in compliance with the provisions of the Texas Election

Code.

Notice of said election shall be given as required by law.

The President and/or Secretary of this board are hereby authorized and directed to cause a

notice of this election to be given as provided by law.

The President or Vice President is authorized to execute and the Secretary or Assistant

Secretary to attest this order on behalf of the board; and any of said officers is authorized to do

all other things necessary and legal in connection with the holding and consummation of said

bond election.

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96002-003 488773v1

Passed and adopted, this August 13, 2020

President

ATTEST:

Secretary

[SEAL]

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96002-003 488773v1

I, the undersigned secretary of the board of directors of River Ranch Municipal Utility

District No. 2 , hereby certify that the foregoing is a true and correct copy of the order made by

said board at its regular meeting on August 13, 2020, together with minute entry of that date

showing its adoption, calling a confirmation and director election to be held for and within the

District on November 3, 2020. The originals of said order and minutes appear in the official

minute book of the board, on file in the District's office.

I further certify that said meeting was open to the public, and that notice was given in

compliance with the provisions of Tex. Gov’t. Code Ann. § 551.001 et seq. as adopted, and as

suspended in part by the Governor of Texas on March 16, 2020.

Witness my hand and the official seal of said District, this ______________________.

Secretary

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96002-003 488769v1


Order for Bond Election






None


The order set out below was introduced for consideration of the board. It was duly moved

and seconded that said order be adopted; and, after due discussion, said motion was carried by the

following vote:

Ayes: All directors shown present.

Noes: None.


Whereas, River Ranch Municipal Utility District No. 2 has been legally created; the

directors of the District have qualified as required by law, met and organized; said board of

directors has adopted plans for the purchase and construction of plants and improvements to carry

out the purpose of its organization; the District’s engineer has submitted to the board of directors a

complete engineer’s report covering the land, improvements, facilities, plants, equipment, and

appliances to be purchased or constructed and their estimated cost, together with maps, plats,

profiles and data fully showing and explaining same, which report and accompanying items have

been approved by the board, filed in the meeting place and office of the District, and open to

inspection by the public; and said plants and improvements are designed to furnish a water and

sanitary sewer system for service within the District and any land which may hereafter be annexed

22

96002-003 488769v1

into the District and a drainage system for the drainage of lands within the District and any land

which may hereafter be annexed into the District.

Whereas, the District’s engineer has submitted a complete park plan (“Park Plan”) to the

board of directors covering the land, improvements, facilities, and equipment to be purchased or

constructed and the estimated cost together with maps, plats, drawings and data fully showing and

explaining the Park Plan, which plan and accompanying data have been approved by the board,

filed in the office of the District, and is open to inspection by the public;

Whereas, said Park Plan is designed to furnish recreational facilities to serve the District

and any land which may hereafter be annexed into the District;

Whereas, the District’s engineer and the District’s board of directors make the following

estimate of probable costs:

Water, Sewer and Drainage Improvements:

Estimated construction costs:

Water supply, storage and distribution system, wastewater collection and treatment system, stormwater drainage and detention system, construction contingencies, investigation, plans, design, and engineering $8,700,000

Total: $8,700,000

Incidentals:

Administrative expenses of issuing and selling bonds, including financial advisory and legal fees,interest on bonds during estimated construction period, discount on bonds, and operating costs during construction $4,180,000

Water, Sewer and Drainage Total: $12,880,000

Parks and Recreational Facilities:

Recreational facilities; land, construction contingencies, investigation, plans and engineering $2,002,500

Incidentals:

Administrative expenses of issuing and selling bonds, including financial advisory and legal fees,interest on bonds during estimated construction period, discount on bonds, and operating costs during construction $997,500

Parks and Recreational Facilities Total: $3,000,000

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96002-003 488769v1

Whereas, the board of directors made no change or modification in the work proposed by

or the plans and report of the engineer all requirements have been met prerequisite to the ordering

of a bond election; and the board is of the opinion that the election should be held for the purpose

of submitting the proposition set out hereinafter.

Whereas, the board of directors of the District has determined that it is in the public interest

to conduct the election on a uniform election date.

Therefore, be it ordered by the board of directors of the District, as follows:

Section 1. The matters and facts set out in the preamble of this order are hereby found

and declared to be true, correct and complete.

Section 2. The Board ratifies its approval of and adopts in all respects said engineer’s

report and park plan, including the estimates therein and the data and items submitted and filed

therewith, and reference is here made to same for the full contents thereof.

Section 3. An election shall be held within legal hours on November 3, 2020. The

District has or shall enter into an Agreement with Liberty County (“County”), Texas

(“Agreement”) for the purpose of having the County provide certain election services and

equipment needed by the District in conjunction with the election on November 3, 2020. The

County shall be responsible for furnishing services and equipment and performing duties as

described in the Agreement. The District hereby adopts the County voting precincts, and hereby

adopts the County early voting and election day polling place(s) as set out in the Agreement, for

purposes of said election. Voting shall be held at the applicable County polling places, whether or

not such polling locations are within or outside the District’s boundaries. Early voting for said

election shall be held at the County early voting locations described in the Agreement.

A bond election shall be held for and within River Ranch Municipal Utility District No. 2

on November 3, 2020 at the Liberty County election locations.

Section 4. At the election, the following proposition shall be submitted to the duly

qualified resident electors of the District for their action thereon:

PROPOSITION A

Shall the board of directors of River Ranch Municipal Utility District No. 2 be authorized to issue bonds of said District in one or more issues or series in the maximum aggregate original principal amount of Twelve Million Eight Hundred Eighty Thousand ($12,880,000) Dollars, maturing serially or otherwise over a period not to exceed forty (40) years from their date or dates, and to be issued and sold at any price or prices and to bear interest at any rate or rates as

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shall be determined within the discretion of the board of directors of the District and as authorized by the laws of the State of Texas at the time of such issuance, for the benefit of the District and any land which may be hereafter annexed into the District, for the purposes of purchasing, constructing, acquiring, owning, operating, maintaining, repairing, improving and extending a water and sanitary sewer system, a surface water system, and sewage disposal facilities for the District and a drainage system for the drainage of lands within the District, and for paying fees or charges to any regional water authority or similar entity for charges or contributions lawfully levied on the District, and to provide for the payment of principal of and interest on such bonds by the levy and collection of a sufficient ad valorem tax upon all taxable property within the District, all as authorized by the Constitution and laws of the State of Texas?

PROPOSITION B

Shall the board of directors of River Ranch Municipal Utility District No. 2 be authorized to issue bonds of said District in the maximum amount of Three Million ($3,000,000) Dollars which is the estimate of the probable cost of design, construction, purchase, acquisition, and maintenance of improvements and additions and incidental expenses connected with the improvements and the issuance of bonds, maturing serially or otherwise over a period not to exceed forty (40) years from their date or dates, and to be issued and sold at any price or prices and to bear interest at any rate or rates as shall be determined within the discretion of the board of directors of the District and as authorized by the laws of the State of Texas at the time of such issuance, for the benefit of the District and any land which may be hereafter annexed into the District, for the purposes of purchasing, constructing, acquiring, owning, operating, repairing, improving and extending parks and recreational facilities, and to provide for the payment of principal of and interest on such bonds by the levy and collection of a sufficient ad valorem tax upon all taxable property within the District, all as authorized by the Constitution and laws of the State of Texas?

PROPOSITION C

Shall the Board of Directors of River Ranch Municipal Utility District No. 2 be authorized to issue bonds of said District in one or more issues or series in the maximum aggregate original principal amount of Fifteen Million Eight Hundred Eighty Thousand ($15,880,000) Dollars, maturing serially or otherwise over a period or periods not to exceed forty (40) years from their date or dates, and to be issued and sold at any price or prices and to bear interest at any rate or rates as shall be determined within the discretion of the Board of Directors of the District and as authorized by the Constitution and laws of the State of Texas at the time of issuance of each issue or series of said bonds, for the purpose of refunding, by any means now or hereafter authorized by law, all or any portion of any bonds or refunding bonds of the District payable in whole or in part from taxes, whether heretofore or hereafter issued by the District, and whether authorized hereunder or at previous or subsequent elections held within and for the District, and to provide for the payment of the principal of and interest on such bonds by the levy and collection of a sufficient ad valorem tax upon all taxable property within the District, all as authorized by the Constitution and laws of the State of Texas?

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Section 5. The election will be conducted in compliance with the provisions of the

Texas Election Code and the provisions of the federal Help America Vote Act (HAVA), and each

polling place will have at least one voting system accessible to individuals with disabilities.

Section 6. As provided by law for the issuance of bonds payable wholly or in part by

ad valorem taxes, an election shall be held and notice shall be given as provided by law.

Section 7. Paper and/or electronic ballots shall be used in the election. Ballots, voting

instructions and the proposition shall be made available in English and in the Spanish languages

for those requesting same. The ballots for said election shall conform to the requirements of the

Texas Water Code and the Texas Election Code, as amended, so far as applicable, and shall have

printed thereon, in the English and Spanish languages, the following:

OFFICIAL BALLOT

Instruction Note: Place an “X” in the square beside the statement indicating the way you wish to vote.

PROPOSITION A

• FOR -

THE ISSUANCE OF BONDS IN THE MAXIMUM AMOUNT OF TWELVE MILLION EIGHT HUNDRED EIGHTY THOUSAND ($12,880,000) DOLLARS FOR WATER, SEWER AND DRAINAGE SYSTEM IMPROVEMENTS AND THE LEVY OF AD VALOREM TAXES SUFFICIENT TO PAY THE PRINICIPAL OF AND INTEREST ON SAID BONDS

• AGAINST –

PROPOSITION B

• FOR –

THE ISSUANCE OF BONDS IN THE MAXIMUM AMOUNT OF THREE MILLION ($3,000,000) DOLLARS FOR RECREATIONAL FACILITIES AND THE LEVY OF TAXESSUFFICIENT TO PAY THE PRINICIPAL OF AND INTEREST ON SAID BONDS

• AGAINST –

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PROPOSITION C

• FOR -

THE ISSUANCE OF BONDS IN THE MAXIMUM AMOUNT OF FIFTEEN MILLION EIGHT HUNDRED EIGHTY THOUSAND ($15,880,000) DOLLARS FOR REFUNDING ANY BONDS OR REFUNDING BONDS AND THE LEVY OF AD VALOREM TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS

• AGAINST -

Section 8. Only duly qualified residents of the District shall be entitled to vote at the

election.

Section 9. The District’s attorneys shall be and they are hereby authorized and directed

to assist the secretary of the Board in preparing the official ballot, translation of the ballot in the

Spanish language, and providing to the County such other information and documents as may be

required in the Agreement pertaining to the conduct of the election and post-election day

procedures.

Section 10. Early voting will be held on October 13, 2020 through October 30, 2020,

and ballots shall conform to the requirements of the said Texas Water Code and Election Code, as

amended, so far as applicable. Early voting shall be conducted at locations designated by Liberty

County, which, for purposes of this election, are each declared to be a public place for the District.

Early voting by personal appearance shall be conducted each day at the early voting polling places

during the hours of early voting designated by Liberty County. Applications for ballots by mail

shall be mailed to Liberty County Courthouse, 1923 Sam Houston Street, Room 217, Liberty,

Texas 77575. Applications for ballots by mail must be received no later than the close of business

on October 23, 2020.

Section 11. In accordance with the provisions of Section 3.009(b) of the Texas Election

Code, it is hereby found and determined that:

(a) The proposition language that will appear on the ballot is set forth in Section 7 hereof.

(b) The purpose for which the bonds are to be authorized is set forth in Section 4 hereof.

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(c) The principal amount of the bonds to be authorized is set forth in Section 4and 7 hereof.

(d) As set forth in Sections 4 and 7 hereof, if the bonds are approved by the voters, the Board of Directors will be authorized to levy annual ad valorem taxes on all taxable property in the District, within the limits prescribed by law, sufficient to pay the annual principal of and interest on the bonds.

(e) Based on the bond market conditions at the date of adoption of this Order, the bonds are to be sold at any price or prices and to bear interest at a rate currentlyestimated to be 4% given current market conditions. This estimate is for informational purposes only and should in no way be perceived as forming an agreement or binding contract between the District and the voters and/or any other entity, group, individual and/or party. Furthermore, provided good faith interest rate estimate contained herein in no way limits the District’s authority to issue bonds authorized pursuant to the authority granted by the voters at the election held pursuant to this Order.

(f) As set forth in Section 4 hereof, if the bonds are approved, they may be issued in one or more series, to mature serially or otherwise, over a period not to exceed 40 years.

(g) As of the date of this Order, the aggregate principal amount of the outstanding principal of the District’s debt obligations which are secured by ad valorem taxes is $0.

(h) As of the date of this Order, the aggregate amount of the outstanding interest of the District’s debt obligations which are secured by ad valorem taxes was $0.

(i) The District’s ad valorem debt service tax rate for 2019 as of the date of this Order is $0 per $100 of taxable assessed valuation. The 2020 debt service tax rate has not been established as of the date of this Order.


Secretary to attest this order on behalf of the board; and any of said officers is authorized to do all

things necessary and legal in connection with the holding and consummation of said bond election.

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Passed, ordered and adopted, this August 13, 2020.

President

ATTEST:

Secretary

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I, the undersigned secretary of the board of directors of River Ranch Municipal

Utility District No. 2, hereby certify that the foregoing is a true and correct copy of the order

made by said board at its regular meeting on August 13, 2020, together with minute entry of that

date showing its adoption, calling a bond election to be held for and within said District on

November 3, 2020. The originals of said order and minutes appear in the official minute book of

the board, on file in an office and meeting place of the District.




Witness my hand and the official seal of said District, on this ________________.

Secretary

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96002-002 488787v1


Order for Maintenance Tax Election






None


The order set out below was introduced for consideration of the Board. It was duly moved

and seconded that said order be adopted; and, after due consideration, and upon the motions being

put, it was carried by the following vote:


Noes: None.


Whereas, River Ranch Municipal Utility District No. 2 has the authority to operate a water

and sanitary sewer system and a drainage system for and within the District.

Whereas, the District may levy and collect a tax for operation and maintenance purposes,

including funds for planning, constructing, acquiring, maintaining, repairing, and operating all

necessary land, plants, works, facilities, improvements, appliances and equipment of the District

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and for paying costs of proper services, engineering and legal fees and organization and

administrative expenses.

Whereas, the District’s board of directors finds and determines that it will be in the best

interest of the District to obtain authorization for the levy and collection of a maintenance tax upon

all taxable property within the District, pursuant to the provisions of Section 49.107, Texas Water

Code, as amended.

Whereas, the board of directors of said District finds and determines that all requisites to

the ordering of a maintenance tax election have been met, and the board is of the opinion that such

election should be called for the purpose of submitting to the duly qualified resident electors of the

District the proposition for the levy and collection of a maintenance tax as more particularly set out

below.

Whereas, the board of directors of the District has determined that it is in the public interest

to conduct the election on a uniform election date.

It is, therefore, ordered by the board of directors of River Ranch Municipal Utility District

No. 2, as follows:

Only duly qualified resident voters of the District shall be entitled to vote at the election.

The District shall enter into a Joint Election Agreement and Contract for Election Services (the

“Agreement”) with Liberty County (hereinafter referred to as “County”) for the purpose of having

the County’s Elections Administrator provide certain joint election services and equipment needed

by the District in conjunction with the election on November 3, 2020. County shall be responsible

for furnishing services and equipment and performing duties as described in the Agreement.

Early voting will be held on October 13, 2020 through October 30, 2020, and ballots shall

conform to the requirements of the said Texas Water Code and Election Code, as amended, so far

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as applicable. The District hereby adopts the Liberty County voting precincts, and hereby adopts

the Liberty County early voting and election day polling places for purposes of said election.

Voting shall be held at the applicable Liberty County polling places, whether or not such polling

locations are within or outside the District’s boundaries.

Applications for ballots by mail shall be mailed to: Liberty County Courthouse, 1923 Sam

Houston Street, Room 217, Liberty, Texas 77575. Applications for ballots by mail must be

received no later than the close of business on October 23, 2020.

The election shall be held within legal hours on November 3, 2020 at the location(s)

established by Liberty County as listed in Exhibit A attached to this order.

The following proposition shall be submitted to the duly qualified resident electors of the

District at said election:

PROPOSITION

Shall the Board of Directors of River Ranch Municipal Utility District No. 2 be authorized to assess, levy and collect ad valorem taxes on all taxable property within said District for operation and maintenance purposes, including funds for planning, constructing, acquiring, maintaining, repairing, and operating all necessary land, plants, works, facilities, improvements, appliances, and equipment of the District and for paying costs of proper services, engineering and legal fees, and organization and administrative expenses, in an unlimited rate in accordance with the Constitution and laws of the State of Texas, particularly (but not by way of limitation) Section 49.107 of the Texas Water Code, within the District?

The election will be conducted in compliance with the provisions of the Texas Election

Code.

Paper and/or electronic ballots shall be used in the election. Ballots, voting instructions

and the proposition shall be made available in the Spanish language for those requesting same.

The ballots for said election shall conform to the requirements of the Texas Water Code and the

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Texas Election Code, as amended, so far as applicable, and shall have printed thereon, in the

English and Spanish languages, the following:

OFFICIAL BALLOT

Instruction Note: Place an “X” in the square beside the statement indicating the way you wish to vote.

• FOR -THE LEVY OF AN AD VALOREM TAX FOROPERATION AND MAINTENANCE PURPOSES

• AGAINST –

The entire District shall constitute one election precinct for purposes of this election.

Only duly qualified residents of the District shall be entitled to vote at the election.



Early voting will be held on October 13, 2020 through October 30, 2020 and ballots shall

conform to the requirements of the said Texas Water Code and Election Code, as amended, so far

as applicable. The District hereby adopts the Liberty County voting precincts, and hereby adopts

the Liberty County early voting and election day polling places for purposes of said election.

Voting shall be held at the applicable Liberty County polling places, whether or not such polling

locations are within or outside the District’s boundaries.


Secretary to attest this order on behalf of the board; and any of said officers is authorized to do all

other things necessary and legal in connection with the holding and consummation of said election.

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Passed, ordered and adopted, this August 13, 2020.

HOWIE HOWETH

President

ATTEST:

B. JOYCE COX

Secretary

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EXHIBIT A

EARLY VOTING AND ELECTION DAY LOCATION AND TIMESNOVEMBER ELECTION

Dayton Community Center, 801 S. Cleveland St., Dayton, Texas

Tuesday October 13th: 9-4pmOctober 14th: 9-4pmOctober 15th: 9-4pmOctober 16nd: 9-4pm

Monday October 19th: 9-4pmOctober 20th: 9-7pmOctober 21st: 9-7pmOctober 22nd: 9-7pmOctober 23rd: 9-7pm

Saturday October 24th: 9-4pmOctober 26th: 9-4pmOctober 27th: 9-7pmOctober 28th: 9-7pmOctober 29th: 7-7pmOctober 30th: 7-7pm

Election Day, November 3rd, 7am - 7pm

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96003-002 403844

I, the undersigned secretary of the board of directors of River Ranch Municipal

Utility District No. 2, hereby certify that the foregoing is a true and correct copy of the order

made by said board at its regular meeting on August 13, 2020, together with minute entry of that

date showing its adoption, calling a maintenance tax election to be held for and within the

District on November 3, 2020. The originals of said order and minutes appear in the official

minute book of the board, on file in the District’s office.




Witness my hand and the seal of said District, this ______________________.

______________________________________Secretary

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Order of Board of Directors Calling an Election Confirming a Contract and Levy of Tax






None


The order set out below was introduced for consideration of the board. It was duly

moved and seconded that said order be adopted; and, after due discussion, said motion was

carried by the following vote:


Noes: None.


WHEREAS, the District is a conservation and reclamation district and a political

subdivision of the State of Texas created and operating pursuant to Chapter 7991, Special

District Local Laws Code and Article XVI, Section 59 of the Texas Constitution; and

WHEREAS, the Board of Directors desires to approve the provisions of the Contract for

Financing, Operation, and Maintenance of Regional Facilities (the “Master District Contract”)

whereby regional water supply and distribution facilities, sanitary trunk and treatment facilities,

storm sewer and drainage facilities, and park facilities will be supplied by the District to River

38

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Ranch and known as the Service Area within the Master District Contract, which includes the

District, said Master District Contract is on file and available for public inspection at the

District’s office; and

WHEREAS, said Master District Contract provides that the District will call an election

for the approval of said Master District Contract and the authorization to levy, assess and collect

ad valorem taxes on all taxable property within the District to make certain payments thereunder;

and

WHEREAS, Section 49.108, Texas Water code, provides that a District may make

payments under a contract from taxes after the provisions of the contract have been approved by

a majority of the electors voting at an election held for that purpose; and

WHEREAS, the Board of Directors desire to have the provisions of the Master District

Contract approved by the electors of the District; and

IT IS, THEREFORE, ORDERED by the board of directors of River Ranch Municipal

Utility District No. 2 as follows:

Section 1. An election shall be held for and within the District on November 3, 2020.

Section 2. The following shall be submitted to the duly qualified resident electors of

the District for their action thereon

(a) on the following propositions:

PROPOSITION 1

Shall the provisions of the Contract for Financing, Operation, and Maintenance of Regional Water, Sanitary Sewer, Storm Sewer, Park, and Other Facilities between River Ranch Municipal Utility District No. 2 and the Municipal Utility Districts in the Service Area be approved, including the provision thereof requiring the Board of Directors of River Ranch Municipal Utility District No. 2 to levy an annual ad valorem tax on all taxable property within said District to make certain payments for the debt service requirements of the Master District’s Water, Sewer and Drainage Bonds in the maximum amount of Five Hundred Seventy One Million Eight Hundred Eighty Thousand ($571,880,000) Dollars, maturing serially or otherwise over a period not to exceed forty (40) years from their date

39

96002-002 488801V1

or dates, and for Monthly Charges associated with the services from the Master District’s Water, Sewer and Drainage Facilities, all as defined and provided in said Contract?

PROPOSITION 2

Shall the provisions of the Contract for Financing, Operation, and Maintenance of Regional Water, Sanitary Sewer, Storm Sewer, Park, and Other Facilities between River Ranch Municipal Utility District No. 2 and the Municipal Utility Districts in the Service Area be approved, including the provision thereof requiring the Board of Directors of River Ranch Municipal Utility District No. 2 to levy an annual ad valorem tax on all taxable property within said District to make certain payments for the debt service requirements of the Master District’s Park Bonds in the maximum amount of Fifty Seven Million ($57,000,000) Dollars, maturing serially or otherwise over a period not to exceed forty (40) years from their date or dates, and for Monthly Charges associated with the services from the Master District’s Park Facilities, all as defined and provided in said Contract?

Section 3. The election will be conducted in compliance with the provisions of the

Federal Help America Vote Act (HAVA) and the Texas Election Code, and each polling place

will have at least one voting system accessible to individuals with disabilities, including those

using manually-counted paper ballots.

Section 4. Paper and/or electronic ballots shall be used in the election. Ballots,

voting instructions and the proposition shall be made available in the Spanish language for those

requesting same. The ballots for said election shall conform to the requirements of the Texas

Water Code and the Texas Election Code, as amended, so far as applicable, and shall have

printed thereon, in the English and Spanish languages, the following:

OFFICIAL BALLOT

Instruction Note: Place an “X” in the square beside the statement indicating the way you wish to vote

40

96002-002 488801V1

PROPOSITION 1

• FOR -THE PROVISIONS OF THE CONTRACT FOR FINANCING, OPERATION, AND MAINTENANCE OFREGIONAL FACILITIES BETWEEN RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2 AND THE MUNICIPAL UTILITY DISTRICTS IN THE SERVICE AREA, INCLUDING THE LEVY OF A TAX TO MAKE PAYMENTS THEREUNDER FOR THE DEBT SERVICE REQUIREMENTS OF THE MASTER DISTRICT WATER, SEWER AND DRAINAGE BONDS IN THE MAXIMUM AMOUNT OF $571,880,000 AND FOR MONTHLY CHARGES ASSOCIATED WITH THE SERVICES FROM THE MASTER DISTRICT’S WATER, SEWER AND DRAINAGE FACILITIES, ALL AS DEFINED AND PROVIDED IN SAID CONTRACT

• AGAINST -

PROPOSITION 2

• FOR -THE PROVISIONS OF THE CONTRACT FOR FINANCING, OPERATION, AND MAINTENANCE OFREGIONAL FACILITIES BETWEEN RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2 AND THE MUNICIPAL UTILITY DISTRICTS IN THE SERVICE AREA, INCLUDING THE LEVY OF A TAX TO MAKE PAYMENTS THEREUNDER FOR THE DEBT SERVICEREQUIREMENTS OF THE MASTER DISTRICT PARKBONDS IN THE MAXIMUM AMOUNT OF $57,000,000 AND FOR MONTHLY CHARGES ASSOCIATED WITH THE SERVICES FROM THE MASTER DISTRICT’S PARK FACILITIES, ALL AS DEFINED AND PROVIDED IN SAID CONTRACT

• AGAINST –

Section 5. The District shall enter into a Joint Election Agreement and Contract for

Election Services (the “Agreement”) with Liberty County (hereinafter referred to as “County”)

for the purpose of having the County’s Elections Administrator provide certain joint election

services and equipment needed by the District in conjunction with the election on November 3,

2020. County shall be responsible for furnishing services and equipment and performing duties

41

96002-002 488801V1

as described in the Agreement.

Section 6. Early voting will be held on October 13, 2020 through October 30, 2020,

and ballots shall conform to the requirements of the said Texas Water Code and Election Code,

as amended, so far as applicable. The District hereby adopts the Liberty County voting

precincts, and hereby adopts the Liberty County early voting and election day polling places for

purposes of said election. Voting shall be held at the applicable Liberty County polling places,

whether or not such polling locations are within or outside the District’s boundaries.

Section 7. Applications for ballots by mail shall be mailed to: Liberty County

Courthouse, 1923 Sam Houston Street, Room 217, Liberty, Texas 77575. Applications for

ballots by mail must be received no later than the close of business on October 23, 2020.

Section 8. The election shall be held within legal hours on November 3, 2020. The

District hereby adopts the Liberty County voting precincts, and hereby adopts the Liberty County

early voting and election day polling places for purposes of said election. Voting shall be held at

the applicable Liberty County polling places, whether or not such polling locations are within or

outside the District’s boundaries.

Section 9. The District shall constitute one election precinct for purposes of this

election. Only duly qualified residents of the District shall be entitled to vote at the election.

Section 10. Notice of said election shall be given as required by law.

Section 11. In accordance with the provisions of Section 3.009(b) of the Texas

Election Code, it is hereby found and determined that:

(a) The proposition language that will appear on the ballot is set forth in Section 2 hereof.

(b) The purposes for which the bonds are to be authorized is set forth in Sections 2 and 4 hereof.

(c) The principal amount of the bonds to be authorized is set forth in Sections 2 and 4 hereof.

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96002-002 488801V1

(d) As set forth in Section 2 hereof, if the bonds are approved by the voters, the Board of Directors will be authorized to levy annual ad valorem taxes on all taxable property in the District, within the limits prescribed by law, sufficient to pay the annual principal of and interest on the bonds.

(e) Based on the bond market conditions at the date of adoption of this Order, the bonds are to be sold at any price or prices and to bear interest at a rate currentlyestimated to be 4% given current market conditions. This estimate is for informational purposes only and should in no way be perceived as forming an agreement or binding contract between the District and the voters and/or any other entity, group, individual and/or party. Furthermore, provided good faith interest rate estimate contained herein in no way limits the District’s authority to issue bonds authorized pursuant to the authority granted by the voters at the election held pursuant to this Order.

(f) As set forth in Section 2 hereof, if the bonds are approved, they may be issued in one or more series, to mature serially or otherwise, over a period not to exceed 40 years.

(g) As of the date of this Order, the aggregate principal amount of the outstanding principal of the District’s debt obligations which are secured by ad valorem taxes is $0.

(h) As of the date of this Order, the aggregate amount of the outstanding interest of the District’s debt obligations which are secured by ad valorem taxes was $0.

(i) The District’s ad valorem debt service tax rate as of the date of this Orderis $0 per $100 of taxable assessed valuation.



The President and/or Secretary of this board are hereby authorized and directed to cause a

notice of this election to be given as provided by law.


Secretary to attest this order on behalf of the board; and any of said officers is authorized to do

all other things necessary and legal in connection with the holding and consummation of said

election.

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96002-002 488801V1

Passed and adopted, this August 13, 2020.

President

ATTEST:

Secretary

[SEAL]

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96002-002 488801V1

I, the undersigned secretary of the board of directors of River Ranch Municipal Utility

District No. 2, hereby certify that the foregoing is a true and correct copy of the order made by

said board at its regular meeting on August 13, 2020, together with minute entry of that date

showing its adoption, an election confirming a contract and levy of tax to be held for and within

the District on November 3, 2020. The originals of said order and minutes appear in the official

minute book of the board, on file in the District's office.

I further certify that said meeting was open to the public, and that notice was given in

compliance with the provisions of Tex. Gov’t. Code Ann. § 551.001 et seq. as adopted, and as

suspended in part by the Governor of Texas on March 16, 2020.

Witness my hand and the official seal of said District, this ________________________.

Secretary

45

FINANCIAL ADVISORY CONTRACT

To: Board of Directors River Ranch Municipal Utility District No. 2 (the “District”) Liberty County, Texas

Ladies and Gentlemen:

1. We understand that you are contemplating the issuance of securities of the kinds, in the amounts and for the purposes indicated as follows:

All bonds to be issued by the District. Such bonds may be authorized by the voters of the District or may be issued on a contractual basis. All bonds must be authorized for sale by the District's Board of Directors. In addition, the term “Bonds” is understood to include, but not be limited to revenue bonds, refunding bonds, bond anticipation notes, or other lawful securities issued by the District.

and that in connection with the issuance of these securities you desire this proposal from us to perform professional services in the capacity of Financial Advisor or Municipal Advisor for your District (hereinafter called “Issuer”).

2. By this proposal we offer our professional services and our facilities as Financial Advisor for the issuance and sale of the above-described securities, and, in that capacity, we agree to perform the following duties, and to perform such other duties, as, in our judgment, may be necessary or advisable:

a. We will make a survey of the financial resources of the Issuer to determine the extent of its borrowing capacity. This survey will include an analysis of the existing debt structure as compared to existing and projected sources of income which may be pledged to secure payment of debt service, and where appropriate, will include a study of the trend of the assessed valuation of the Issuer, the Issuer's taxing power, and the present and estimated future taxing requirements. If the revenues of a system or facility are to be pledged to repayment of the securities in question, the survey will take into account any outstanding obligations which are payable from the net revenues thereof, additional net revenues to arise from any proposed rate increase, and the additional net revenues as projected by your consulting engineers as a result of the improvements to be financed by the securities in question. We will also take into account your future financing needs and operations as projected by our staff and/or your consulting engineers and other experts.

b. On the basis of the information developed by the survey described in the above and foregoing paragraph, and on the basis of other information and experience available to us, we will submit our written recommendations on the financing in question. Our plan will include recommendations as to the date of issue, interest payment dates, schedule of principal maturities, options of prior payment, and any other necessary additional security provisions designed to make the issue more attractive to investors. All recommendations will be based on our best professional judgement, with the goal of designing securities which can be sold under terms most advantageous to Issuer, and at the lowest interest cost consistent with all other considerations.

c. We will advise you of current bond market conditions, forthcoming bond issues, and other general information and economic data which might normally be expected to influence the interest rates or bidding conditions, so that the date for the sale of the securities can be set at a time which, in our opinion, will be favorable.

d. If it is necessary to hold an election to authorize the securities, we will, under the direction of the bond attorneys, assist in coordinating the assembly and transmittal to the bond attorneys of such data as may be required for the preparation of the necessary petitions, orders, resolutions, notices and certificates in connection with the election.

46

e. We will coordinate the preparation and submission of the Official Notice of Sale, the Official Statement or Offering Statement, and such other market documents which you may require. We will also supervise preparation of the uniform bid form, containing provisions recognized by the municipal securities industry as being consistent with the securities offered for sale. We will submit to you all such offering documents, including the Official Statement, for your proper examination, approval and certification. After such examination, approval and certification we will furnish you with a supply of such documents and shall mail a set of the same to a list of prospective bidders, a copy of which list shall be submitted to you upon request. We will also supply sufficient copies of the Official Statement or Offering Statement to the purchaser of the securities in accordance with the terms of the Notice of Sale.

f. We will make recommendations to the Issuer on the matter of bond rating(s) for the proposed issue and when directed by you shall coordinate the preparation of such information as in our opinion is required for submission to the rating agency(ies). In those cases where the advisability of personal presentation of information to the bond rating agencies may be indicated, we will arrange for such personal presentation.

g. If the securities are to be sold at public sale, we will disseminate information to prospective bidders, we will organize such information meetings as in our judgment may be necessary, and we will work with prospective bidders to assist them in timely submitting proper bids. We will assist you at the bond sale for the purpose of coordinating the receipt of bids, and the furnishing of good faith checks where indicated, and for the purpose of tabulation and comparison of bids, and will advise you as to the best bid, and will provide our recommendation as to acceptance or rejection of such bid. As soon as a bid for the bonds shall be accepted by you, we will proceed to coordinate the efforts of all concerned to the end that the bonds may be delivered and paid for as expeditiously as possible. We shall assist you in the preparation of verification of final closing figures, and when requested will provide suggestions on a program of temporary investment of bond proceeds, in consultation with the Issuer's architect or consulting engineer, consistent with the construction timetable for the project.

After closing we will deliver to you and your paying agent(s) definitive debt records, including a schedule of annual debt service requirements on the obligations being delivered to the purchaser.

3. We agree to direct and coordinate the entire program of financing herein contemplated. In that connection we understand that you have retained or expect to retain a firm of nationally recognized municipal bond attorneys, who will prepare the proceedings and advise the steps necessary to be taken to issue the securities and who will issue an opinion approving their legality. We will maintain liaison with this firm of bond attorneys and shall assist in all financial advisory aspects involved in the preparation of appropriate legal proceedings and documents.

Where the issuance and sale of the securities, and construction of the project in question, requires the approval of any state or governmental agency, we shall assist you in the preparation of all financial information required for inclusion in applications for such approval, and when requested by you, shall appear on your behalf to provide appropriate testimony at public hearings before state and other governmental commissions and the boards. We will also be available to participate with you in any preliminary conferences with the staffs of any state or governmental agencies involved, and we will, for qualified projects, coordinate the preparation of financial assistance applications required for state involvement.

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4. In consideration for the services rendered by us in connection with the issuance and sale of the above-described securities it is understood and agreed that our fee for each issue of securities will be as follows:

2% of the par amount issued for new issues, minimum fee of $20,000 1 % of the par amount issued for refunding bonds, minimum fee of $20,000 1 % of the par amount for issuance of bond anticipation notes, minimum fee of $15,000

In addition to our fee, the Issuer will be responsible for the expenses set forth below. In some cases, we may incur these expenses on your behalf, and you agree to reimburse us for such expenses.

All expenses of issuance will be borne by the Issuer. These issuance expenses include, but are not limited to, the cost of printing and mailing the Official Notice of Sale and the Official Statement, the travel expenses of the financial advisor, if any, incurred in presentation(s) before regulatory authorities, the national rating agencies, and/or credit enhancement companies on behalf of the District, the fees of the national rating services pertaining to their assignment of credit rating(s) to the District, credit enhancement fees, bond printing expenses, bond attorneys, security attorneys, or other attorney fees, the cost of legal advertisement and the Municipal Advisory Council of Texas listing fee.

Our fee and reimbursable expenses shall become due and payable simultaneously with the delivery of the securities to the purchaser. In the event the sale of securities to the purchaser does not occur, our reimbursable expenses shall become due and payable within 30 days after they are incurred by us.

5. Special Conditions. In addition to the terms and obligations herein contained, this proposal and agreement is subject to the following special conditions:

If we are requested to perform additional financial advisory services for the Issuer other than in connection with the issuance and sale of the securities, such additional services will be billed at the following rates per hour:

Position Rate per Hour

Managing Director $350.00 Director $300.00 Vice President $275.00 Assistant Vice President $225.00 Associate/Analyst $190.00 Clerical/Administrative $90.00

Financial advisory services to be billed at the hourly rate include but are not limited to tax rate recommendations; exemption analyses; compilation of financial information required by the Issuer for continuing disclosure compliance, the Texas Commission on Environmental Quality or any predecessor, municipal bond rating companies or municipal bond insurance companies; review of audit reports and compilation of rating information required by the auditor; preparation of recommendations pertaining to financial condition of the Issuer; annexation studies; and attendance at meetings when required or requested by the Issuer. We will charge the Issuer for any out-of-pocket expenses incurred in the performance of these duties (such as courier and photocopying). No additional charges, other than the charges discussed in Item 4 above will be assessed to the Issuer.

In the event that fees are incurred for the services shown in Item "6" herein in a year where we have received a financial advisory fee as detailed in Item "5" herein, then there will be no charge for services covered under Item "6."

This agreement may be terminated by us or the District on thirty days written notice, and we would expect to be paid to the termination date; provided, however that this agreement may not be terminated with regard to its application to any issue of bonds which we have been authorized to advertise for sale. 6. Municipal Advisor is providing its disclosure statement pursuant to Municipal Securities Rulemaking Board

Rule G-10, on Investor and Municipal Advisory Client Education and Protection attached hereto as APPENDIX A.

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7. Municipal Advisor is providing its Disclosure Statement of Municipal Advisor (the “Disclosure Statement”), attached hereto as APPENDIX B, current as of the date of this agreement, setting forth disclosures by Municipal Advisor of material conflicts of interest, if any, and of any legal or disciplinary events required to be disclosed pursuant to Rule G-42. The Disclosure Statement also describes how Municipal Advisor addresses or intends to manage or mitigate any disclosed conflicts of interest, as well as the specific type of information regarding, and the date of the last material change, if any, to the legal and disciplinary events required to be disclosed on Forms MA and MA-I filed by Municipal Advisor with the United States Securities and Exchange Commission.

8. This proposal is submitted in duplicate originals. When accepted by Issuer it will constitute the entire agreement between Issuer and the undersigned for the purpose and considerations herein specified. Your acceptance will be indicated by proper signatures of your authorized officers or representatives on both copies and the returning of one executed copy to us:

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Respectfully submitted, Masterson Advisors LLC By: Name: Drew K Masterson Title: Managing Director

ACCEPTANCE ACCEPTED by the Board of Directors of River Ranch Municipal Utility District No. 2, Liberty County, Texas on this

______________ day of ________________, 2020.

By: Name: Title:

ATTEST:

By: Name: Title:

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APPENDIX A

INVESTOR AND MUNICIPAL ADVISORY CLIENT EDUCATION AND PROTECTION Municipal Securities Rulemaking Board Rule G-10 Disclosure Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:

• Masterson Advisors LLC is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

• Within the Municipal Securities Rulemaking Board (“MSRB”) website at www.msrb.org, the Issuer may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities.

Fiduciary Duty Masterson Advisors LLC is registered as a Municipal Advisor with the SEC and Municipal Securities Rulemaking Board (“MSRB”). As such, Masterson Advisors LLC has a Fiduciary duty to the Issuer and must provide both a Duty of Care and a Duty of Loyalty that entails the following.

Duty of Care:

a) exercise due care in performing its municipal advisory activities; b) possess the degree of knowledge and expertise needed to provide the Issuer with informed advice; c) make a reasonable inquiry as to the facts that are relevant to the Issuer’s determination as to whether to

proceed with a course of action or that form the basis for any advice provided to the Issuer; and d) undertake a reasonable investigation to determine that Municipal Advisor is not forming any

recommendation on materially inaccurate or incomplete information; Municipal Advisor must have a reasonable basis for:

i. any advice provided to or on behalf of the Issuer; ii. any representations made in a certificate that it signs that will be reasonably foreseeably relied

upon by the Issuer, any other party involved in the municipal securities transaction or municipal financial product, or investors in the Issuer securities; and

iii. any information provided to the Issuer or other parties involved in the municipal securities transaction in connection with the preparation of an official statement.

Duty of Loyalty: Municipal Advisor must deal honestly and with the utmost good faith with the Issuer and act in the Issuer’s best interests without regard to the financial or other interests of Municipal Advisor. Municipal Advisor will eliminate or provide full and fair disclosure (included herein) to Issuer about each material conflict of interest (as applicable). Municipal Advisor will not engage in municipal advisory activities with the Issuer as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in the Issuer’s best interests.

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APPENDIX B

DISCLOSURE STATEMENT OF MUNICIPAL ADVISOR This Disclosure Statement is provided by Masterson Advisors LLC (the “Municipal Advisor”) to you (the “Issuer”) in connection with our current municipal advisory agreement, (the “Agreement”). This Disclosure Statement provides information regarding conflicts of interest and legal or disciplinary events of Municipal Advisor that are required to be disclosed to Issuer pursuant to MSRB Rule G- 42(b) and (c)(ii). PART A - Disclosures of Conflicts of Interest MSRB Rule G-42 requires that municipal advisors provide to their clients’ disclosures relating to any actual or potential material conflicts of interest, including certain categories of potential conflicts of interest identified in Rule G-42, if applicable. Material Conflicts of Interest – Municipal Advisor makes the disclosures set forth below with respect to material conflicts of interest in connection with the Scope of Services under the Agreement with the Municipal Advisor together with explanations of how the Firm addresses or intends to manage or mitigate each conflict. General Mitigations - As general mitigations of the Municipal Advisor conflicts, with respect to all of the conflicts disclosed below, Municipal Advisor mitigates such conflicts through its adherence to its fiduciary duty to Issuer, which includes a duty of loyalty to Issuer in performing all municipal advisory activities for Issuer. This duty of loyalty obligates the Municipal Advisor to deal honestly and with the utmost good faith with Issuer and to act in Issuer’s best interests without regard to the Municipal Advisor’s financial or other interests. The disclosures below describe, as applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. I. Other Municipal Advisor Relationships. Municipal Advisor serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of Issuer. For example, Municipal Advisor serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to Issuer. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, Municipal Advisor could potentially face a conflict of interest arising from these competing client interests. None of these other engagements or relationships would impair Municipal Advisor’s ability to fulfill its regulatory duties to Issuer. II. Compensation-Based Conflicts. Fees that are based on the size of the issue are contingent upon the delivery of the Issue. While this form of compensation is customary in the municipal securities market, this may present a conflict because it could create an incentive for the Firm to recommend unnecessary financings or financings that are disadvantageous to Issuer, or to advise Issuer to increase the size of the issue. This conflict of interest is mitigated by the general mitigations described above. Fees based on a fixed amount are usually based upon an analysis by Issuer and Municipal Advisor of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Municipal Advisor. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Municipal Advisor may suffer a loss. Thus, Municipal Advisor may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest is mitigated by the general mitigations described above. Hourly fees are calculated with, the aggregate amount equaling the number of hours worked by Municipal Advisor personnel times an agreed upon hourly billing rate. This form of compensation presents a potential conflict of interest if Issuer and Municipal Advisor do not agree on a reasonable maximum amount at the outset of the engagement, because the Municipal Advisor does not have a financial incentive to recommend alternatives that would result in fewer hours worked. This conflict of interest is mitigated by the general mitigations described above.

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PART B - Disclosures of Information Regarding Legal Events and Disciplinary History MSRB Rule G-42 requires that municipal advisors provide to their clients’ certain disclosures of legal or disciplinary events material to its client’s evaluation of the municipal advisor or the integrity of the municipal advisor’ s management or advisory personnel. Accordingly, Municipal Advisor sets out below required disclosures and related information in connection with such disclosures. I. Material Legal or Disciplinary Event. There are no legal or disciplinary events that are material to Issuer’s evaluation of Municipal Advisor or the integrity of Municipal Advisor’s management or advisory personnel disclosed, or that should be disclosed, on any Form MA or Form MA-I filed with the SEC.

II. How to Access Form MA and Form MA-I Filings. Municipal Advisor’s most recent Form MA and each most recent Form MA-I filed with the SEC are available on the SEC’s EDGAR system. For purposes of accessing reports, Municipal Advisor’s CIK number is 0001733756.

PART C - Future Supplemental Disclosures As required by MSRB Rule G-42, this Municipal Advisor Disclosure Statement may be supplemented or amended, from time to time as needed, to reflect changed circumstances resulting in new conflicts of interest or changes in the conflicts of interest described above, or to provide updated information with regard to any legal or disciplinary events of the Municipal Advisor. The Municipal Advisor will provide Issuer with any such supplement or amendment as it becomes available throughout the term of the Agreement.

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Verification Statement Texas Government Code, Chapter 2270

Texas Government Code, Chapter 2252, Subchapter F

Masterson Advisors LLC (the "Firm") makes the following representations:

Anti-Boycott Verification. Pursuant to Texas Government Code Chapter 2270, as amended, the Firm verifies that at the time of execution and delivery of this Contract and for the term of this Contract, neither the Firm, its parent companies, nor its common-control affiliates currently boycott or will boycott Israel. The term "boycott Israel" as used in this paragraph has the meaning assigned to the term "boycott Israel" in Section 808.001 of the Texas Government Code, as amended.

Foreign Terrorists Organizations. Pursuant to Texas Government Code, Chapter 2252, as amended, the Firm represents and verifies that at the time of execution and delivery of this Contract and for the term of this Contract, neither the Firm, its parent companies, nor its common-control affiliates (i) engage in business with Iran, Sudan, or any foreign terrorist organization as described in Chapters 806 or 807 of the Texas Government Code, or Subchapter F of Chapter 2252 of the Texas Government Code, or (ii) is a company listed by the Texas Comptroller of Public Accounts under Sections 806.051, 807.051, or 2252.153 of the Texas Government Code. The term "foreign terrorist organization" in this paragraph the meaning assigned to such term in Section 2252.151 of the Texas Government Code.

I, Drew K. Masterson, as an authorized representative of the Firm, engaged by River Ranch Municipal Utility District No. 2 for the provision of Financial Advisory services, hereby confirm the firm's compliance with Texas Government Code Chapter 2270 and 2252, as amended.

By:

Name:

Title

Date

Drew K. Masterson

Managing Director

August 5, 2020

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River Ranch Municipal Utility District No. 2 Proposed Schedule of Rates

Exhibit “A” August 13, 2020

I Basic Services –Per Month

A. Per Connection $ 2.00

B. Lift Stations $ 150.00

II Water Taps

A. For each resident water connection 5/8” X 3/4” meter, material and up to 40 feet of road boring per connection $ 525.00

B. For each resident water connection 3/4” X 3/4” meter,

material and up to 40 feet of road boring per connection $ 575.00

C. One inch residential water connection with meter, material and up to 40 feet of road boring per connection $ 675.00

D. All other water tap charges to be quoted and approved By the District Per Quote

III Inspection Services

A. Residential Sewer Tap Inspection $ 40.00

B. Commercial Sewer Tap Inspection Per Quote

C. Pre-Builder Inspection $ 40.00

D. Builder Final Inspection $ 40.00

E. Grease Trap Inspection $ 40.00

F. Residential Customer Service Certification $ 50.00

G. Commercial Customer Service Certification Per Quote

H. Residential Backflow Prevention Device Test $ 100.00

I. Commercial Backflow Prevention Device Test Per Quote

IV Labor Rates per hour

A. Contract Manager / Manager $ 85.00

B. Supervisor $ 52.00

C. Plant Operator $ 48.00

D. Equipment Operator $ 44.00

E. Mechanical Technician $ 45.00

F. Maintenance Technician $ 44.00

G. Service Technician $ 38.00

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H. Skilled Labor $ 32.00

V Equipment Rates per hour

A. Backhoe with Trailer $ 40.50

B. Utility Truck $ 18.50

C. Flat Bed / One Ton $ 20.50

D. Mechanical Truck/ Maintenance Truck $ 25.50

VI Billing and Collections

A. Postage At Cost

B. Billing Supplies At Cost

C. Disconnect/Reconnect Fees $ 40.00

D. Transfer Set-up Fees $ 30.00

E. Delinquent Letter Fees $ 10.00

F. Return Check Fee $ 30.00

VII Other Services and Charges

A. Laboratory Analysis At Cost

B. Repair Materials Cost Plus 15%

C. Subcontract Repairs Cost Plus 15%

D. Meter Replacement- 5/8x3/4 $ 95.00

E. Meter Box Replacement $ 30.00

F. Meter Box Lid Replacement $ 15.00

Overtime rates of time and one-half will apply for work performed before 7:30 A.M. and after 4:00 P.M., in excess of 8 hours per day or 40 hours per week, and on weekends and holidays.

Rates are subject to an annual adjustment on the anniversary date of the executed Agreement, based on the Consumer Price Index (CPI-U) as published by the Bureau of Labor Statistics for the Houston-Sugar Land-The Woodlands urban area.

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Documents

RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 2 NOTICE OF … · 2 days ago · captioned District will hold a public meeting by telephone conference call. Members of the public may