5. Engineer’s Report. Mr. Wilson recognized Mr. Bishop, who presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached hereto as Exhibit D. Mr. Bishop reported on the Water Plant Improvements and Filtration Expansion. He stated that the plans were approved on April 10, 2025, and approval is for one year. He stated that Quiddity will coordinate and obtain re-approval with all agencies and advertise the project for bid after the bonds have sold. Mr. Bishop reported on Bond Application Report No. 4. He stated that the bond application was approved by the Texas Commission on Environmental Quality (“TCEQ”) on February 6, 2025. He noted that the application for extension of time to sell the bonds was submitted to the TCEQ and was declared administratively complete on February 3, 2026. Mr. Bishop reported on the WWTP Improvements Project. He stated that Quiddity is currently reviewing submittals and that the contract substantial completion date is June 21, 2026. Mr. Bishop reported on the MS4 Phase II Storm Water Management Program. He stated that Quiddity prepared the District’s Storm Water Management Plan and Notice of Intent. He noted that the Notice of Intent is currently under review by the TCEQ. Mr. Bishop reported on Commercial Development. He stated that Quiddity received a fourth set of construction plans for the proposed build out of the pizza shop on February 12, 2026. He noted that Quiddity is reviewing the latest submittal. Upon motion by Director Maxell, seconded by Director Boards, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.6/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.