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Council approves first reading to change MDD board composition language, sends corrected ordinance to second reading
Summary
The City Council approved first reading on March 20 of an ordinance amending the Municipal Development District code to remove assigned place numbers, require MDD directors to live within the district, and add a 'to the extent practicable' clause governing council representation.
Fair Oaks Ranch City Council voted 6–1 on March 20 to approve first reading of an ordinance amending the Municipal Development District (MDD) ordinance to remove place numbers, require directors to be residents of the district, and add a “to the extent practicable” qualifier about maintaining council and homeowners‑association representation.
City Attorney (presentation) staff explained the district was created in 2011 and is funded by a half‑cent sales tax and that the current ordinance assigns place numbers and ties certain seats to the city council and a homeowners association. Laura (city staff) told council the proposed language removes place numbers and clarifies residency so directors must reside in the district rather than the city's ETJ or city generally. She said the change is intended to reduce ambiguity when appointees later become council members or HOA board members.
The Municipal Development District’s rules of procedure had attempted to mirror the ordinance, and the MDD had debated how to handle cases when an appointee later becomes a council member; the ordinance change gives council discretion and the new phrase “to the extent practicable” to allow flexibility when staggered terms and differing appointment cycles create temporary conditions where the board may include multiple sitting council members.
Councilmember discussion focused on removing the place numbers as an administrative cleanup, on preserving the MDD’s intended composition (two council members and one HOA representative where feasible) and on ensuring the MDD’s rules of procedure are brought into alignment with the new ordinance. Several council members asked staff to change the wording “city's homeowners board of directors” to “Fair Oaks Ranch Homeowners Association board of directors” in the final ordinance; staff agreed to correct that wording before the second reading.
The ordinance passed on first reading by a 6–1 vote, with Councilmember Olvera dissenting. Because this is a first reading, staff will return the corrected ordinance for final adoption at a subsequent meeting.
Outcome: first reading approved 6–1; city attorney/city secretary to present corrected ordinance for second reading and final adoption.
