Council authorizes temporary water purchase from Formosa and funds reclaimed-water study

Corpus Christi City Council approved a short-term purchase of raw water from Formosa Plastics and authorized preliminary engineering work on expanded reclaimed-water reuse.

The raw-water contract authorizes the city manager to execute a temporary sales agreement to secure up to 10,000 acre-feet from Formosa for calendar year 2025, with a developer-structured take-or-pay provision for the first 2,500 acre-feet and an option to extend for a second year if water is available. Chief Operating Officer Drew Molly told council the purchase would cost roughly $4.5 million for the year and was intended to reduce the risk that Lake Texana contract water would be fully consumed later this year as Corpus Christi continues to pump near schedule 4.

"The contract water that we would take from Formosa... works out to be $2.76 a thousand gallons," Molly told the council during the presentation. Staff said the city currently pays roughly $0.95 per thousand gallons for its contract water and that the Formosa purchase is more expensive but would provide critical near-term supply.

Why it matters: City water staff warned council that, without additional supplies, the city could exhaust contracted Lake Texana deliveries and become fully dependent on Colorado River supplies. Securing voluntary water from an industrial holder reduces that risk but carries material fiscal cost and creates a minimum payment obligation.

Reclaimed-water study: Garver contract approved Council also authorized an up-to $1.0-million professional services contract with Garver LLC to carry out an alternatives and feasibility study for reuse of treated effluent from local wastewater plants and to perform the 12-month source-water characterization required by Texas Commission on Environmental Quality (TCEQ) for potable-reuse pathways.

"Anytime effluent is being reused for drinking water purposes, TCEQ requires a 12-month sampling period," Dan Olson of Garver said during the staff presentation. The study will evaluate nonpotable reuse (for industry or irrigation) as well as longer-term potable-reuse options and will position the city to pursue grants when feasible.

Council reaction and follow-ups Council members praised staff for moving quickly to find temporary supply and for advancing the reuse study. Councilman Mark Scott told staff the Formosa purchase represented a major addition of water and thanked staff and industry for the agreement. Councilman Gil Hernandez asked staff for a midyear review of raw-water cost recovery to ensure the municipal rate structure reflects the higher cost of northern water supplies (Texana/Formosa) versus local Colorado River supplies.

City manager Peter Zanoni and staff also committed to creating and posting an online water-supply dashboard this week so council and the public can track daily volumes by source, consumption by customer class, reservoir levels and estimated supply horizons. Zanoni said the dashboard prototype would be reviewed by city leadership before being posted publicly.

Actions and outcomes - Motion to authorize temporary raw water purchase from Formosa (up to 10,000 acre-feet) carried; staff will fund the purchase using part of the FY25 PAYGO transfer and other operating funds. The council recorded the motion and approved the contract. - Motion to approve professional services contract with Garver LLC to complete a reclaimed-water alternatives and source characterization study carried.

Ending Council accepted a near-term supply solution with a higher unit cost to reduce the risk of running short later in the year and moved to study long-term alternatives that could reduce potable demand through industrial reuse, aquifer storage or eventual potable reuse.