City Council delays vote on $2.7 million reservation fee for Harbor Island desalination project

Corpus Christi City Council on Tuesday voted to postpone a decision to Oct. 21 on whether to pay a one‑time, nonrefundable reservation fee to the Nueces River Authority (NRA) to reserve 50 million gallons per day (MGD) of capacity from a planned Harbor Island seawater desalination plant.

The item asked the council to approve a CCW (Corpus Christi Water) payment of $2,737,631.62 to reserve 50 MGD of treatment capacity in Phase 1 of the NRA project, which is being developed as a public‑private partnership on Harbor Island. Interim Chief Operating Officer Nick Winkelman presented staff materials and said the plant’s Phase 1 design is for 100 MGD and that the project timeline estimated construction to begin in March 2027 with water production possible by December 2029. Winkelman and City Manager Peter Zanoni cautioned that final design, permits and the plant’s power and financing remain unresolved.

The reservation proposed for the city would be a single, up‑front fee and would not be credited against a future purchase price; city staff said alternative reservation amounts were available (for example, a 30 MGD reservation was shown in NRA materials at about $1.6 million). The lease of about 30 acres on Harbor Island is between NRA and the Port of Corpus Christi and is a separate contract; staff said the city expects a 10¢ per 1,000‑gallon discount if/when a final purchase price is set.

Why it matters: Corpus Christi is pursuing additional long‑term water supplies amid declining reservoir yields and increasing regional demand. Supporters said an early reservation protects the city’s position in a major regional project; opponents said the council lacks enough information to spend ratepayer money now and that the city should first clarify cost, power, conveyance, permitting and projected impact on water rates.

Project details presented to council included: - Phase 1 capacity: 100 MGD; city reservation proposed: 50 MGD (one‑time fee $2,737,631.62). NRA offered smaller reservation options (30 MGD ~ $1,600,000). - Intake and discharge permits required from the Texas Commission on Environmental Quality (TCEQ) and Army Corps review; draft TCEQ permits were described as in progress but not yet final. City staff said the Port of Corpus Christi has executed the Harbor Island lease with NRA. - A conveyance pipeline from the plant and a separate city project to connect into that line would be needed; that city conveyance project has not been designed or costed and would be a separate capital effort.

Debate on the dais: Council members split along lines of caution versus securing future supply. Several council members pressed staff and NRA representatives for specific cost and rate impacts; Nick Winkelman and NRA Executive Director John Byram replied that final water prices and engineering estimates will be determined in the design phase and that NRA is seeking state and private financing. Byram told the council the reservation fee "reserves capacity in the treatment of the water" and contributes to project development costs. City Manager Peter Zanoni said he placed the item on the agenda after ongoing briefings with NRA and the city’s water group.

Opponents called the action premature. Councilwoman Sylvia Campos said she "does not support this" and repeatedly asked for more detailed cost, timing and conservation analysis before committing ratepayer funds. Councilman Roland Barrera and others repeatedly asked when the city would know final water rates; staff answered that rate estimates are expected later in the design phase. Council members also asked whether regional customers or industries had already reserved capacity; staff said NRA had sold reservation rights to other entities and that NRA would provide a list in closed session if council wished.

Supporters urged securing an option now to avoid losing access to capacity. Councilwoman Caitlin Paxton, who moved to approve earlier in the discussion, described marine desalination as a long‑term supply and argued the reservation protects the city’s future negotiating position.

Public comment reflected the split: residents raised environmental and cost concerns and urged more public outreach, while business and economic development speakers argued for long‑term planning to protect jobs and growth.

Council action and next steps: Councilman Roland Barrera moved to postpone the item to the council meeting on Oct. 21 to allow staff and NRA to return with additional information on conveyance timeline, communications with wholesale customers, and an updated estimate of the city’s water needs; the motion carried. The council directed staff to return with the requested materials, including more complete cost and permitting timelines and options for smaller reservation amounts. NRA representatives said they will continue design procurement steps (RFQs/RFPs) and that if the city holds a reservation it will be looped into conveyance design discussions.

A formal vote to approve any reservation was not taken; the item is scheduled for additional council consideration on Oct. 21.