Recommendation • Request for approval to begin recruitment by 3/1/2026. Sincerely, CCSUD Management Board Meeting 02/26/2026 1 SHORT-TERM OPTION FOR POTABLE WATER RESERVATION AND DIVERSION CONTRACT THIS SHORT-TERM OPTION FOR POTABLE WATER RESERVATION AND DIVERSION CONTRACT (“Option Contract”) is made and entered into pursuant to Texas Special Districts Local Laws Code, Chapter 8511 (collectively the “NRA Act”) by and between the NUECES RIVER AUTHORITY (“NRA”), a conservation and reclamation dist

Staff Report & Agenda Item Details

Recommendation • Request for approval to begin recruitment by 3/1/2026. Sincerely, CCSUD Management Board Meeting 02/26/2026 1 SHORT-TERM OPTION FOR POTABLE WATER RESERVATION AND DIVERSION CONTRACT THIS SHORT-TERM OPTION FOR POTABLE WATER RESERVATION AND DIVERSION CONTRACT (“Option Contract”) is made and entered into pursuant to Texas Special Districts Local Laws Code, Chapter 8511 (collectively the “NRA Act”) by and between the NUECES RIVER AUTHORITY (“NRA”), a conservation and reclamation district created pursuant to Article 16, Section 59 of the Texas Constitution, and Crystal Clear SUD (“Customer”). In this Option Contract, NRA and Customer are sometimes individually referred to as a “Party” and collectively referred to as the “Parties.” The effective date (“Effective Date”) of this Option Contract shall be the date it is last signed by a Party. RECITALS WHEREAS, pursuant to the NRA Act, a purpose of NRA is the conservation and development of the State of Texas’ (the “State’s”) natural resources inside the Nueces River Basin, including the control, storage, preservation, and distribution of the State’s water for municipal and industrial uses; WHEREAS, NRA intends to enter into a formal agreement with the Port of Corpus Christi Authority (the “Port”) whereby the Port will lease property and permit use of the necessary regulatory permits to NRA to enable NRA to construct, own, and operate a seawater desalination plant on Harbor Island to enhance water supply and water resource security in the region; WHEREAS, by virtue of its agreement with the Port, NRA will have license to certain water rights held by the Port authorizing NRA to divert seawater for desalination; Board Meeting 02/26/2026 2 WHEREAS, Customer desires eventually—at a time subsequent to this Option Contract—to contract with NRA for the reservation and/or purchase and diversion of potable water resulting from NRA’s intake and treatment of seawater at its Harbor Island desalination plant; WHEREAS, Customer desires to first acquire an option to contract with NRA for the future reservation and/or purchase and diversion of up to 3360.42 acre-feet per year of potable water for Customer’s future municipal or industrial use. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, NRA grants Customer a one-year option, which may be extended subject to the terms and conditions of this Option Contract, to contract for up to 3360.42 acre-feet per year of potable water resulting from NRA’s intake and treatment of seawater at its Harbor Island desalination plant for Customer’s future municipal or industrial use, and Customer agrees to pay NRA a one-time Option Fee for such right, upon terms and conditions hereinafter set forth, to-wit: ARTICLE 1.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.7/10). 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.