0809992.5 ITEM N0. 2.5 NO ORDER ISSUED DISCUSSION ONLY SEE OFFICIAL COURT REPORTERS TRANSCRIPT REGULAR COMMISSIONERS' COURT AGENDA MONDAY, AUGUST 9, 1999 - 9:00 A.M. COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Larry Griffin OFFICE: Commissioner. Precinct 4 MEETING DATE: August 9, 1999 TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Consider and discuss the County Attorney's opinion on "Repairs to private roads" (Ref: Memorandum from County Attorney, dated July 22, 1999) EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Commissioner Griffin ESTIMATED LENGTH OF PRESENTATION: 15 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday. THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. MEMORANDUM TO Commissioner William H. Williams FROM David Motley SUBJECT Reparrs to private roads (Shadow Ride Estates) DATE July 22, 1999 )n response to your memorandum of June 3, 1999, the underlying matters about which you inquire are not primarily legal in nature. One related legal issue, which should always be considered when spending public funds, concerns the Constitutional prohibitions against spending public funds for private purposes. I have set out three relevant Constitutional sections below for your consideration. There is no general requirement that the wunty maintain private roads. The first question ("Do we have a legal basis upon which to act?"), when distilled to its essence is: "may the Commissioners' Court selectively treat those appearing before it in an inconsistent manner?" Although the answer to this question may appear obvious, it is an answer which the Court itself must decide as a policy matter. The transcript of the Commissioners' Court meeting of May 24,1999, reveals that some among your number expressed their belief that the key to funding such repairs of private roads is whether or not the particular case represents "an emergency." The statute in question (§ 253.003, Texas Transportation Code, set out below) does not mention the term "emergency," but instead, allows the Commissioners' Court, following a showing of necessity, notice, a public hearing and an election amongst the record holders in the subdivision, to fund improvements (broadly defined to include construction and repair) and assess all record owners of the affected subdivision if the improvement is in the interest of the public health, safety or welfare" of the residents of the county. It is my opinion that use of the term "residents of the county" indicates legislative intent that the improvement must be a benefit to the residents of the county as a whole. A test to determine how beneficial the expenditure is to the county residents as a whole might be stated as follows: "is the expenditure of public funds for a legitimate public purpose with cleaz public benefit received and returned." Further, the "public calamity" exception contained in Art 3, § 51 of the Texas Constitution, does not seem to encompass the concept of "emergency" as expressed by members of the Court or the dire need to repair the roads in question. Also provided is a lien procedure whereby the county could improve their chances for reimbursement for their costs in improving the road. As a practical matter, it is probable that the Commissioners' Court could justify their action authorizing such expenditure by finding it is "in the public health, safety or welfaze" of the residents of the county. However, consistency and basic fairness, as well as political considerations, suggest that all such considerations be handled uniformly. The method contemplated by the statute (as well as other sections in the chapter) does include an Commissioner William H. Williams Page 2 Jury 22, 1998 assessment for the costs of the improvement to be assessed against all residents of the subdivision so the improvement proposed may not be truly be considered as a grant of county funds but more of an interest-free loan (which itself, has value), if same is accomplished in compliance with the statutory scheme. My review of the documentation provided seems to indicate that no such assessment coincided with Commissioners' Court order no. 25431 on July 13, 1998, which may well be seen as a public grant of county funds to a group of private citizens. A practical roadblock to the proposed repair is that it is somewhat unlikely that all the residents of the subdivision would assent to an assessment solely for the benefit of those subdivision residents adjacent to the improved roads. It is more likely that they would want all the roads (or those which directly service their tracts) to be improved before they are assessed for the cost which, of course would greatly increase the estimate for the repairs. There are specific methods by which the Court may construct or establish roads in private areas of the county, but all require some sort of general public benefit or essential and critical need, notice to affected landowners and some require a local election. Chapter 251, Texas Transportation Code (at §251.053), the "Neighborhood Roads" statute, allows landowners, without a public road or other means of access, to petition the Commissioners' Court to establish a public access road from their property to the county public road system, following notice, a public hearing, assessment of damages to the property owners and payment of costs associated with the opening of the road, which shall be initially made suitable for use as a public access road. Further maintenance of said road by the county is not required as is the case with all "public roads." The term "public road" generally means a road which the public has a right to use, with no requirement that the county maintain same. County maintenance of "public roads" is allowed, however, by bringing them into the wunty road maintenance system. §251.003, Texas Transportation Code is a permissive statute giving the Commissioners' Court the ability to fund, build, hire construction, purchase materials, make and enforce rules and orders necessary to construct and maintain public roads. Money in the County Road and Bridge Fund may be used only for working public roads or building bridges, §256.001, Texas Transportation Code. Precinct residents may apply to the Commissioners' Court for a new road or for a change in location of an existing road entirely within said precinct, following notice to others in the vicinity of the proposed road route of the petitioners' intent to make such application. If the application is approved, a jury of view, with the possible assistance of the County Surveyor, would actually lay out (determine the location of) the road. There is a notice requirement in advance of the laying out of the road to the landowners whose property will be bisected by the proposed road. 'The same jury of view considers each affected property owner's claim for damages as a consequence of the road and return the damage assessment along with its report to the Commissioners' Court. The road may not be opened until the Court pays compensation and damages to these affected landowners and notifies each of the deposit of the sum (§§ 251.052 & 251.054, Texas Transportation Code). Commissioner William H. Williams Page 3 July 22, 1999 Chapter 281, Texas Transportation Code allows a county, by recorded Commissioners' Court resolution, to acquire a public interest in a private road by purchase, condemnation, dedication or a judgment finding adverse possession. However, a public interest in such a private road may not become effective until the private road owner is notified by the Court. Chapter 257, Texas Transportation Code, at §257.021 allows the Commissioners' Court to establish road districts, following notice and a public hearing, as a means to fund, through a special tax, the reimbursement of expenses incurred by a private person to construct a road which has been or will be dedicated to public use or to purchase an ah eady existing road for public uses from a private person. The statute also provides for persons to petition the road district for annexation of their property as well as the annexing of larger territories into such district. As for other "legal considerations, it is possible that some protected class member might assert that he or she was treated disparately by a Commissioners' Court decision concerning roads in that person's area and proceed accordingly. It only takes a word processor, paper and a filing fee to file suit. The second issue which you direct to me is whether or not it is "fair" for residents of Shadow Ridge Estates subdivision, in order to have their private roads accepted for maintenance by Kerr County, now be required to improve their roads to current road standards. The current Kerr County Subdivision Rules & Regulations at 7.10 & 7.11 require that the developer or homeowner's association (of the subdivision) shall remain responsible for all maintenance and repair of roads within a subdivision until the Commissioners' Court, by formal action, accepts the obligation to maintain and repair such roads. Further, the county shall accept a road for maintenance only when all of 5 specified conditions occur, one of which is that a road, to be accepted for maintenance by the county, must have been constructed as a public road in accordance with the regulations and the associated right of way has been dedicated to the public pursuant to the regulation. At 7.01, the rules set out what sorts of roads are "permitted roads." At 3.05, all subdivisions approved prior to acceptance date of (the current subdivision rules & regulations) hereof shall be subject to rules and regulations effective at the time of preliminary plat approval. This is evidence of intent of a sort of "grandfather clause" as to roads in platted subdivisions. I found no counterpart in the rules and regulations of roads to be accepted for county road maintenance. The plat of Shadow Ridge Estates was approved on December 30, 1982, before the effective date of the "January, 1984 Subdivision Rules and Regulations," that effective date being January 1, 1984. The acceptance of maintenance of the roads located in said subdivision was specifically conditioned upon the residential development (in the subdivision) justifying said maintenance and further that the subdivision roads must be constructed, paved, drained, impedibles removed and underground water or electrical lines must be located. Commissioner William H. Williams Page 4 July 22, 1999 In section VI of the January, 1984 subdivision rules & regulations, the cost of the required improvements were to be borne by the subdivision developer. By their own terms, the 1984 rules & regulations did not apply to any subdivision as same existed before January 1, 1984. Said rules & regulations do not address the situation where residents of an existing subdivision wish to have their private roads accepted for county maintenance. Also, the 1984 rules & regulations do not have a clause similar to that described in 3.05 of the current rules & regulations. In short, it seems that if the residents of Shadow Ridge Estates subdivision wish to have their private roads accepted for county maintenance, it would be a matter for agreement between the parties. It may certainly be argued that whatever the current Commissioners' Court would require for such acceptance must only meet the requirements of Commissioners' Court Order No. 14873 as to the standards to be met by the residents before their roads are accepted. The terminology used in said order is not particularly definite e.g. the roads must be "constructed" and "paved." With no specific definitions or standards in place for this sort of situation prior to January 1, 1984, the ultimate arbiter of what is required would be the District Court. The county would likely require that current standards be met prior to its acceptance of maintenance of the roads. I do not see any rule or regulation which would require the county to accept a lesser standard. Should the parties fail to agree on this critical issue, the subdivision residents must either accept the county's requirements before the residents take on the financial burden of improvements greater than what might have been considered typical in 1982 or be prepared to litigate the matter. The county has a financial interest in not accepting "substandard" roads into its maintenance system and later having to bring the roads up to today's standards before performing routine maintenance then~n. Commissioner William H. Williams Page 5 July 22, 1989 TRANSPORTATION CODE §253.003, Proposal for County Improvement of Subdivision Roads and Assessment of Costs V.T.C.A., Transportation Code $ 253.003 VERNON'S TEXAS STATUTES AND CODES ANNOTATED TRANSPORTATION CODE TITLE 6. ROADWAYS SUBTITLE C. COUNTY ROADS AND BRIDGES CHAPTER 253. COUNTY IMPROVEMENT OF SUBDIVISION ROADS Current through End of 1997 Reg. Sass. § 253.003. Proposal for County Lnprovement of Subdivision Roads and Assessment of Costs If the commissioners court of a county determines that the improvement of a road in a subdivision or of an access road to a subdivision is necessary for the public health, safety, or welfare of the residents of the county, the commissioners court may propose to: (1) improve the mad to comply with county standards for roads; and (2) assess all or part of the vests of the improvement pro rata against the record owners of the real property of the subdivision. TX CONST Art. 3, 51, Grants of public money prohibited; exceptions Vernon's Ann.Texas Cosst. Art. 3, § 51 VERNON'S TEXAS STATUTES AND CODES ANNOTATED CONSTITUTION OF THE STATE OF TEXAS 1876 ARTICLE III. LEGISLATIVE DEPARTMENT REQUIREMENTS AND LIlVIITATIONS Current through End of 1997 Reg. Sass. § 51. Grants of public money prohibited; exceptions Sec. 51. The Legislature shall have no power to make any grant or authorize the making of any grant of public moneys to any individual, association of individuals, municipal or other corporations whatsoever; provided, however, the Legislature may grant aid to indigent and disabled Confederate soldiers and sailors under such regulations and limitations as may be deemed by the Legislature as expedient, and to their widows in indigent Commissioner William H. Williams Page e July 22, 1999 circumstances under such regulations and limitations as may be deemed by the Legislature as expedient; provided that the provisions of this Section shall not be wnstrued so as to prevent the grant of aid in cases of public calamity. TX CONST Art. 3, 52, Counties, cities, towns or other political corporations or subdivisions; lending credit; grants; investment of funds Vernon's Ann.Texas Const. Art. 3, § 52 VERNON'S TEXAS STATUTES AND CODES ANNOTATED CONSTITUTION OF THE STATE OF TEXAS 1876 ARTICLE III. LEGISLATIVE DEPARTMENT REQUIREMENTS AND LIlVIITATIONS Current through End of 1997 Reg. Sass. § 52. Counties, cities, towns or other political corporations or subdivisions; lending credit; grants; investment of funds Sec. 52. (a) Except as otherwise provided by this section, the Legislature shall have no power to authorize any county, city, town or other political wrporadon or subdivision of the State to lend its credit or to grant public money or thing of value in aid of, or to any individual, association or corporation whatsoever, or to become a stockholder in such corporation, association or company. However, this section does not prohibit the use of public funds or credit for the payment of premiums on nonassessable life, health, or accident insurance policies and annuity contracts issued by a mutual insurance company authorized to do business in this State. (b) Under Legislative provision, any county, any political subdivision of a county, any number of adjoining counties, or any political subdivision of the State, or any defined district now or hereafter to be described and defined within the State of Texas, and which may or may not include, towns, villages or municipal corporations, upon a vote of two-thirds majority of the resident property taxpayers voting thereon who are qualified electors of such district or territory to be a„~`ected thereby, in addition to all other debts, may issue bonds or otherwise lend its credit in any amount not to exceed one fourth of the assessed valuation of the real property of such district or territory, except that the total bonded indebtedness of any city or town shall never exceed the limits imposed by other provisions of this Constitution, and levy and collect taxes to pay the interest thereon and provide a sinking fund for the redemption thereof, as the Legislature may authorize, and in such manner as it may authorize the same, for the following purposes to wit: (1) The improvement of rivers, creeks, and streams to prevent overflows, and to permit of navigation thereof, or irrigation thereof, or in aid of such purposes. Commissioner William H. Williams Page 7 July 22, 1999 (2) The construction and maintenance of pools, lakes, reservoirs, dams, canals and waterways for the purposes of irrigation, drainage or navigation, or in aid thereof. (3) The construction, maintenance and operation of macadamized, graveled or paved roads and turnpikes, or in aid thereof. (c) Notwithstanding the provisions of Subsection (b) of this Section, bonds may be issued by any county in an amount not to exceed one fourth of the assessed valuation of the real property in the county, for the construction, maintenance, and operation of macadamized, graveled, or paved roads and turnpikes, or in aid thereof, upon a vote of a majority of the resident property taxpayers voting thereon who are qualified electors of the county, and without the necessity of further or amendatory legislation. The county may levy and collect taxes to pay the interest on the bonds as it becomes due and to provide a sinking fund for redemption of the bonds. (d) Any defined district created under this section that is authorized to issue bonds or otherwise lend its credit for the purposes stated in Subdivisions (1) and (2) of Subsection (b) of this section may engage in fire-fighting activities and may issue bonds or otherwise lend its credit for fire-fighting purposes as provided by law and this constitution. (e) A county, city, town, or other political corporation or subdivision of the state may invest its funds as authorized by law. TX CONST Art. 3, 52-a, Assistance to encourage state economic development Vernon's Ann.Texas Const. Art. 3, § 52-a VERNON'S TEXAS STATUTES AND CODES ANNOTATED CONSTITUTION OF THE STATE OF TEXAS 1876 ARTICLE III. LEGISLATIVE DEPARTMENT REQUIItEMENTS AND LIMITATIONS Current through End of 1997 Reg. Sass. $ 52-a. Assistance to encourage state economic development Sec. 52-a. Notwithstanding any other provision of this constitution, the legislature may provide for the creation of programs and the making of loans and grants of public money, other than money otherwise dedicated by this constitution to use for a di~`erent purpose, for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment in the state, the srimulation of agricultural innovation, the fostering of the growth of enterprises based on agriculture, or the developmetu or expansion of transportation or commerce in the state. Any bonds or other Commissioner William H. Williams Page 8 July 22, 1888 obligations of a county, municipality, or other political subdivision of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the legislature under this section and that are payable from ad valorem rases must be approved by a vote of the majority of the registered voters of the county, municipality, or political subdivision voting on the issue. An enabling law enacted by the legislature in anticipation of the adoption of this amendment is not void because of its anticipatory character. [emphasis added] Although some of the above-quoted statutes use the terms "Legislature" and "State," for the purpose of the proposed expenditure and the Constitutional prohibitions concerning same, the Court should consider the following language from the Texas Supreme Court opinion in Bexar County v. Linden, 220 SW 761 (Tex. 1920): "the relation which the wunties of the State bear to the sovereignty of the State; upon their character as mere political subdivisions of the State; created for the convenience of the people and for the purposes of local government, but for the exercise of essentially State powers as distinguished from municipal powers; and, with their conferred powers having the nature of duties rather than privileges, existing as but agencies of the State for the effective dischazge through local officers of the governmental obligations of the State. The use of the counties of the State as a means of government is a use by the State and for the State as a sovereignty." DM/s cc: File