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Crystal Clear Special Utility District Agenda Packet 2026-06-03

CCSUD Awards Water Service Agreement to Palomino Alpha LLC

$20,000 contract initiation fee (plus actual legal costs if higher); $2,405/LUE Extra-System Capacity Fee (Phase 1: $401,635); $1,417,830 Water Acquisition Fee (Phase 1); all engineering, legal, inspection, easement, and construction costs to be reimbursed to Crystal Clear SUD by Palomino per detailed schedule (amounts as incurred)CRYSTAL CLEAR SUDPALOMINO ALPHA LLCJune 3, 2026

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Derivita logo
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Description

Crystal Clear Special Utility District entered a Non-Standard Water Service Agreement with Palomino Alpha, LLC to serve a new 870-acre industrial development. Palomino will pay all design, construction, legal, regulatory, and capacity buy-in fees, with a minimum Phase 1 payment obligation of $20,000 legal costs, $401,635 Extra-System Capacity Fee, and $1,417,830 Water Acquisition Fee. The contract term is 10 years with annual renewals based on compliance.

Contract Details

Contract Amount

$20,000 contract initiation fee (plus actual legal costs if higher); $2,405/LUE Extra-System Capacity Fee (Phase 1: $401,635); $1,417,830 Water Acquisition Fee (Phase 1); all engineering, legal, inspection, easement, and construction costs to be reimbursed to Crystal Clear SUD by Palomino per detailed schedule (amounts as incurred)

Vendor

PALOMINO ALPHA LLC

Agency

CRYSTAL CLEAR SUD, TX

Contract Type

OTHER

Document Date

June 3, 2026

Contract Term

10 years from effective date, then automatically renews annually if compliant

Renewal Info

Initial 10-year term; auto-renews annually if Palomino remains in compliance with agreement and CCSUD rules. Use in excess of delivery limits can result in non-renewal or termination.

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