PORTCORPUS CHRISTI September 6, 2018 Via U.S. Mail and Email: KeithSe@cctexas.com Mr. Samuel "Keith" Selman Interim City Manager City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469 Re: Port of Corpus Christi Authority Desalination Permit Applications Dear Mr. Selman, On behalf of the Port of Corpus Christi Authority | want to congratulate you and the City of Corpus Christi on recent steps to amend the Drought Contingency Plan, As you know, the Port's objective is a guaranteed uninterruptable supply of water for the Port's current and future industrial customers. With the City Council's action last week, we are fone step closer to achieving that objective. In April 2017, the Port Commission approved a contract with environmental Consultants to begin the permitting process for two desalination plants -- one located on the Port Authority's La Quinta property and the other on the Port Authority's Harbor Island property. On March 20, 2018, the Port Authority submitted two Texas Pollution Discharge Elimination System (TPDES) permit applications to the Texas Commission on Environmental Quality (TCEQ) for construction of desalination plants at La Quinta and Harbor Island. “The Port Commission's original intent was to aid the City in obtaining long-lead permits for a desalination plant and to immediately transfer the permits to the City once received from TCEQ. If this approach is no longer consistent with the City's vision for obtaining a desalination plant, the Port Authority is willing to disengage from the application process. At a special Commission meeting on September 5, 2018, the Commissioners instructed me to present the following alternatives to the City for consideration: (1) the Fort transfers the TPDES permit applications to the City immediately for the City to complete; (2) the Port assigns the TPDES permits to the City immediately upon receipt from the TCEQ; or (3) the Port withdraws the TPDES permit applications and cancels the Port's permitting efforts. We request written direction from the City on which of these alternatives the City prefers. CBG, rere ma rouse 70 conncit en 13680509 Fa papaSeptember 6, 2018 Page 2 The Port Authority has no preference on the location of any future desalination Plant. Our sole objective is a guaranteed uninterruptable supply of water for the Port's Current and future industrial customers. Please let us know as soon as practicable whether the City wants the Port to withdraw or transfer the TPDES applications as described above. In the meantime, we will continue to pursue the TPDES permits. Thank you for your consideration of this of important matter. PORT OF CORPUS CHRISTI AUTHORITY By: Sean C. Strawbridge, Chief Executive Officer cc: Port Commissioners, Port of Corpus Christi Authority John LaRue — Executive Director, PCCA, Sarah Garza — Director, Environmental Planning & Compliance, PCCA