Richard English presented a memorandum dated January 21, 2026 regarding assessment of liquidated damages {LD) for the Pecan Plantation Elevated Storage Tank Improvements Project. As stated in the memo, normally we do not enforce the LD provision on delayed project completions. However, this project carried on well beyond the completion date and was of critical importance to be online prior to last summer's peak demand season. Staff recommends Board approval to impose liquidated damages with a start date of June 1, 2025 to Phoenix Fabricators and Erectors, LLC for the Pecan Plantation Elevated Storage Tank Improvements Project. After discussion, a motion was made to impose liquidated damages to Phoenix Fabricators and Erectors, LLC for the Pecan Plantation Elevated Storage Tank Improvements Project in the amount of $1,000 per day beginning June 1, 2025 through such time as the tank is put into service and the project is complete. Motion: Second: Vote: Featherston Vernon All ayes

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.8/10). 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.