To the Residents of Village of Oak Lake,
After over one year of efforts by Fort Bend County Municipal Utility District No. 41 (the
“MUD”) to fund and assist with the construction of three pickleball courts and supporting facilities
(the “Pickleball Project”) at the Kidz Village site owned by the Village of Oak Lake Homeowners
Association (the “HOA”), we, the MUD’s Board of Directors (the “MUD Board”), were saddened
to learn that the HOA’s Board of Directors (the “HOA Board”) rejected our proposal for the
Pickleball Project.
The MUD’s Considerable Efforts
We began work last May to move the Pickleball Project to successful completion for the
benefit of the community within the MUD, which is made up almost entirely of the Village of Oak
Lake. Our efforts included: (i) various discussions during the MUD Board’s regular MUD Board
monthly meetings, (ii) several special MUD Board meetings to specifically address the Pickleball
Project, and (iii) several meetings between members of our MUD Board and the HOA Board
(including both former and current HOA Board members).
Such meetings allowed the MUD Board to: (i) research and attend various pickleball sites
in the Houston area, (ii) prepare and refine a design and specifications for the Pickleball Project
with options best suited to serve our community, a copy of which is attached hereto as Exhibit
“A,” and (iii) obtain and negotiate a proposal with a contractor who we determined was best for
the job, a copy of which is attached hereto as Exhibit “B.” The MUD Board also designated a
committee of two of our members to lead the MUD’s efforts with regard to the Pickleball Project
in between formal meetings and to direct the related work of the District’s vendors.
In order to make the Pickleball Project a reality, the MUD Board engaged its vendors to:
(i) prepare a signed and sealed survey of the Kidz Village site, a copy of which is attached hereto
as Exhibit “C,” in order to facilitate the design, permitting, and construction of the Pickleball
Project, (ii) perform other engineering services required for completion of the Pickleball Project,
and (iii) prepare and negotiate the legal agreement between the MUD and the HOA for the design,
financing, and construction of the Pickleball Project in accordance with the requirements of Texas
law applicable to the MUD, a copy of which is attached hereto as Exhibit “D” (the “Proposed
Agreement”).
In total, the District incurred costs in excess of $25,000 to coordinate with the HOA and
push the Pickleball Project forward. The HOA Board has provided no contribution toward any of
such costs, but has now chosen to publicly dismiss the MUD’s proposal for the Pickleball Project
in its June 24, 2024, correspondence to the VOL community (the “HOA Email”).
Addressing the Assertions in the HOA Email
Given the taxpayer dollars spent on the efforts to successfully complete the Pickleball
Project, we, as elected representatives of the community within the MUD, feel it appropriate to
publicly address the reasons provided in the HOA Email for the HOA Board’s dismissal of our
proposal for the Pickleball Project. Each of such assertions is requoted and addressed in detail
below:
HOA’s Statement: “The HOA Board is rejecting the MUD’s proposal to] avoid any potential
increase of taxes. Usually anything it spends, any Mud will recover through the Mud Tax, whereas
we do not want the HOA decision to be a means to increase the Mud Tax.”
MUD’s Response: The funds designated to be used for the Pickleball Project were from
existing reserves (or savings) of the MUD. In other words, the MUD already has the
necessary funds for the Pickleball Project in its accounts. No changes in taxes would result
from the District funding the Pickleball Project and no debt of any kind, including bonds
or notes, would be necessary.
This topic, along with others, was previously addressed in our response to questions of the
HOA Board provided by the HOA’s management representative, a copy of which is
attached hereto as Exhibit “E.”
HOA’s Statement: “The community is not aware of the unfair agreement that Mud wanted the HOA
to sign on.”
MUD’s Response: So that the community may be fully aware of what the MUD Board
offered, this letter (which includes the final draft of the Proposed Agreement) will be posted
and available on the District’s website at https://fbcmud41.com/.
From the start, the MUD Board worked with the previous HOA Board to develop the
general business terms of the proposal for the Pickleball Project. In reliance on the HOA
Board’s verbal agreement to the general business terms of the proposal, we worked in good
faith to prepare an initial draft of the Proposed Agreement, and presented it to the HOA
Board on February 29, 2024.
The HOA Board then submitted the Proposed Agreement to the HOA’s attorney for review
and comment. Comments from the HOA’s attorney to the Proposed Agreement were
received by the MUD on March 11, 2024.
The comments of the HOA’s attorney were addressed in the version of the Proposed
Agreement presented to the current HOA Board at a meeting with the MUD’s pickleball
committee and attorney on April 30, 2024. The updates to the Proposed Agreement also
included the MUD agreeing to fund (in the approximate amount of $11,000) and carry out
the following repairs at Kidz Village:
– (i) the demolition of approximately one hundred twenty-two (122) linear feet
of existing wood fence and the replacement of same with new six (6) foot
tall wood fence which matches with the existing cap, trim, and board of the
existing fence;
– (ii) the demolition of the existing water fountain and concrete pad (with capping
of the water line and installation of dirt and sod where removed);
– (iii) the saw-cutting of two (2) feet of broken curb and the replacement of same
with new concrete curb;
– (iv) the repair of two (2) wrought iron gates with new hinges and the addition
of another hinge in the center of each gate; and
– (v) the demolition of and installation of approximately one hundred eight (108)
feet of concrete sidewalk land area.
At the April 30, 2024, meeting with the HOA Board, the MUD’s pickleball committee and
attorney addressed all questions asked by the HOA Board. One requested change to the
Proposed Agreement was received at such meeting, which was to include a process by
which the MUD and the HOA could agree in the future to discontinue the HOA’s
maintenance of the Pickleball Project.
The MUD addressed this comment in the most recent draft of the Proposed Agreement,
which is what is attached to this letter and was transmitted to the HOA on May 4, 2024, by
including a provision in Section 7.1.2 that the MUD and the HOA “agree to work
cooperatively, in good faith, and in the best interest of the community served by the District
and the HOA in connection with any discussion or consideration of termination” of such
agreement.
The HOA Board and the HOA’s representatives were more than welcome to make requests
for specific changes to the most recent draft of the Proposed Agreement or ask the MUD
to revise any proposed terms in the Agreement. That is the purpose of a negotiation. So
long as any of such changes would have allowed the MUD to be good stewards of the
community’s money and comply with the requirements of Texas law, the MUD Board
would have been willing to make reasonable modifications to the Proposed Agreement.
However, after the MUD submitted the most recent draft of the Proposed Agreement to
the HOA on May 4, 2024, the MUD received no requested changes or comments to the
Proposed Agreement from the HOA Board or any representatives of the HOA.
HOA Statement: “The attorney agreement drafted was heavily against the HOA with no exit clause
in the partnership, no re- purpose clause for pickleball courts after 5 years, etc.”
MUD’s Response: In addition to the over $25,000 already spent by the MUD to get to this
point, the District was committing to fund an additional $11,000 in immediate
improvements to Kidz Village and up to $298,762 for the construction of the Pickleball.
It would be an entirely irresponsible use of the community’s money for the MUD not to
require that the HOA maintain the Pickleball Project for the foreseeable future. No
municipal utility district or homeowners association should ever agree to spend such a large
sum of money to pay for a project which could simply be removed at will by another party
within a few years.
Further, as discussed above, the MUD agreed to work in good faith with the HOA to
consider future termination of the HOA’s obligations to maintain the Pickleball Project if
it was no longer serving the best interest of the community.
HOA Statement: “[T]he HOA would effectively not only lose control or right to regulate, but also
pay fines to the MUD. Board Majority does not agree to pay any fines to the MUD, that too from
homeowner’s money. The board cannot allow MUD 41 to fine the HOA.”
MUD’s Response: The HOA would not lose effective control or the right to regulate
anything. (The right to regulate is addressed in more detail below.) The HOA would
maintain full ownership of Kidz Village and would own the Pickleball Project which would
be constructed in the name of the HOA.
Nor would the MUD be able to “fine” the HOA. The HOA would be obligated to maintain
the Pickleball Project and Kidz Village around it. If the HOA did not maintain the
Pickleball Project or Kidz Village, the MUD could provide written notice to the HOA that
such maintenance was not being completed and, if after 30 days after such notice the
required maintenance was not completed by the HOA, the MUD would be able to complete
such maintenance at its cost and invoice the HOA for those costs. This ensures the
preservation of the MUD’s investment of what would have been over $300,000 of taxpayer
dollars in the Pickleball Project.
HOA Statement: “If MUD 41 builds the courts, then it was stated that HOA cannot even make
rules to regulate to reduce/eliminate crime or drug abuse in the park.”
MUD’s Response: This is simply false. Section 5.2 of the Proposed Agreement provides
that the HOA must set and enforce rules and guidelines regarding the use of the Pickleball
Project and post such rules at Kidz Village.
HOA Statement: “Plus, MUD 41 is expanding services to include non-VOL communities such as
Owais Development on Old Richmond Rd, who will have full access to HOA park whereas VOL
community will have NO access to Owais’s amenities. More non-VOL communities may come as
the area is being developed.”
MUD’s Response: All taxpayers of the MUD would have been funding the Pickleball
Project and, as required by Texas law, would have had a right to access and use the
Pickleball Project. (This right would extend only to the Pickleball Project, not to all aspects
of Kidz Village.)
Similarly, if the MUD funds recreational facilities in any future development, all Village
of Oak Lake residents would have the right to access and use such facilities.
HOA Statement: “Also, as it happened few times in the past, the City can annex and take over the
MUD districts, and it is not desired to have the VOL park that belongs to HOA be transferred to
the city in any way or form. It should be noted that the past HOA board spent more than $550,000/-
to build new swimming pool, without increasing the annual assessment. The current HOA board
is confident that it can also build the 2 pickleball courts in much less than half the price, without
affecting any fees, while retaining full ownership of the Kids Oak Lake Village Park. Thus, the
HOA cannot allow to pass any de-facto ownership of the Kidz Oak Lake Village Park in any way
or form. The HOA is to protect the HOA property for the HOA, and not pass it’s control to any
other entity in any form whatsoever.”
MUD’s Response: As discussed above, no ownership of Kidz Village or any facility at
Kidz Village would be conveyed to the MUD or the City (or anyone else). The HOA would
retain ownership of the site and all facilities on the site, including the Pickleball Project.
The MUD was essentially gifting the HOA the Pickleball Project and, in exchange, the
HOA was agreeing in writing with the MUD to maintain the Pickleball Project and Kidz
Village.
While an annexation by the City of Houston is extremely unlikely, an annexation would
only mean that the MUD’s rights to require the HOA to adequately maintain the Pickleball
Project and Kidz Village would be assigned to the City. No ownership or obligations
would change.
Further, had the HOA raised this concern with the MUD, the MUD would have been
willing to include a provision that the Proposed Agreement would terminate upon
annexation by the City of Houston.
With regard to costs of construction, there is no doubt that it is possible to build cheaper
pickleball courts. The MUD’s proposal was for facilities of high quality which also
included associated improvements such as fencing, lighting, sidewalks, and a waiting area.
Future Efforts to Construct Pickleball Courts
The HOA Board’s recent rejection of the previously-negotiated basic terms of the MUD’s
proposal for the Pickleball Project, without provision of any specific counterproposals or alternate
terms, was not in the best interest of the Village of Oak Lake community. This decision prevents
the most efficient program for construction of pickleball courts in Village of Oak Lake and has
resulted in a significant waste of the MUD’s resources.
The HOA Email states that the HOA now intends to move forward without the MUD to
construct two pickleball courts at Kidz Village. The survey of Kidz Village obtained by the MUD
for use in the design, permitting, and construction of the Pickleball Project was previously
provided to the HOA in good faith to be used in the joint efforts of the MUD and the HOA to
construct the Pickleball Project. However, this survey will now provide a direct benefit to the
HOA’s independent construction efforts.
As such, we respectfully request reimbursement from the HOA to the MUD in the amount
of $6,925.00 for the cost of such survey. The MUD’s provision of the survey will allow the HOA
to reduce its costs for design, permitting, and construction for any future projects at Kidz Village,
including pickleball courts. As it appears that the MUD will no longer be allowed to participate
in the efforts to improve Kidz Village, it is reasonable and appropriate that the MUD be made
whole for this portion of the costs incurred in the MUD’s efforts to work with the HOA.
We wish the HOA Board the best and hope that it will be able to successfully improve Kidz
Village in a manner that is consistent with the goals of the Village of Oak Lake community. As
we believe that the community has demonstrated a strong desire for completion of the proposed
Pickleball Project by the MUD, our MUD Board will now pursue alternate paths and partners for
the construction of such facilities on a different site.
Sincerely,
The Board of Fort Bend County MUD 41
To view the original letter and exhibits, please click here.