Contracts
Termination by Operation of Law: All Master Service Agreements (MSAs), construction contracts, and professional service agreements with the District will effectively terminate on August 19, 2025.
- Action: Legal teams must review "Successors and Assigns" clauses immediately. Do not assume automatic assignment to a municipality or county, as none is named in the bill.
Hiring/Training
Stop-Work Orders: Operations managers must assess active work orders within the District.
- Action: Prepare to demobilize crews and equipment prior to August 19. Work performed after this date faces a near-zero probability of payment unless a new entity explicitly assumes the obligation in writing.
Reporting & Record-Keeping
Proof of Debt: Creditors must generate a perfected paper trail for all outstanding debts.
- Action: Ensure all change orders are signed, pay applications are certified, and invoices are formally submitted to the District Board before they vacate office.
- Filings: While the District Directors file the dissolution papers with TCEQ, vendors should file formal demand letters to establish a priority claim on any residual assets.
Fees & Costs
Collection Risk: There are no new regulatory fees; however, businesses face a high risk of bad debt write-offs.
- Action: Shift all "Rose City MUD" accounts to "Immediate Collection" status.
