Township board questions legality of RUD appointment

The Woodlands Township Board of Directors Chairman Gordy Bunch is questioning the legality of the township board appointing a member to The Woodlands Road Utility District No. 1. The Woodlands Township Board of Directors Chairman Gordy Bunch is questioning the legality of the township board appointing a member to The Woodlands Road Utility District No. 1. Photo: Jason Fochtman, Staff Photographer Photo: Jason Fochtman, Staff Photographer Image 1 of / 1 Caption Close Township board questions legality of RUD appointment 1 / 1 Back to Gallery

Members of The Woodlands Township Board of Directors are looking for legal guidance regarding the board's appointment to The Woodlands Road Utility District No. 1 board.

"I have concern with the legality of serving on this board (and the township board at the same time)," township board Chairman Gordy Bunch said during the Dec. 7 meeting. "This is another taxing entity in the same jurisdiction that we are elected to serve."

Bunch said he asked Robin Cross, the township's counsel, for information on the issue and asked for representatives from the RUD to make a presentation to the township in January regarding its mission.

In June 2013, the Texas Legislature created two appointed positions on the RUD board. House Bill 3895, authored by then-state Rep. Steve Toth, amended the RUD's enabling legislation to allow the board to expand its number of directors, with those two positions being filled by "one or more political subdivisions other than a school district and municipality." The RUD board was governed by a five-member elected board and the new appointed positions expanded it to seven.

The move helped broaden representation on the RUD board, as there previously have been only a few legally registered voters in the RUD.

In December 2014, the township appointed former board member Mike Bass to fill one seat; and in January 2015, Montgomery County Commissioners Court appointed County Judge Craig Doyal to fill the second seat on the RUD board.

"This wasn't a request made by this board; this was broadening legislation sought after by The Woodlands Road Utility District," Bunch said. "Just because someone invites you doesn't mean you have to show up."

The board agrees. Board member Laura Fillault said she understands having a township board member on the RUD board but had questions as well.

"I would be interested to hear about the legality of it," she said.

According to the Texas Ethics Commission, a local governing body is prohibited from appointing one of its own members to a public office position. However, that prohibition may be overcome if state or federal law allows for the appointment.

Bunch said he had "issues" with the RUD as a whole.

"I have moral issues with copious amounts of debt issued by only a few people and the people have to pay the taxes; business people like me, have no vote in that process," Bunch said.

The RUD was created by legislation in 1991. It is funded through property taxes from commercial businesses at a rate of 36 cents per $100 property valuation.

Directors serve two-year terms on a rotating basis. Two seats will be up for election in May. The board also is considering a bond for May frame, but an amount and specific projects have not been decided.

However, because the RUD only taxes commercial property, those who vote for the directors and a potential bond referendum would have to reside in that commercial area.

The township board unanimously agreed to table the decision until January.