Council hears progress on Inner Harbor desalination project; staff outlines timeline, costs and parallel supply options

City Manager Peter Zanoni and program staff told the City Council the city is advancing the Inner Harbor seawater desalination project while simultaneously pursuing short- and mid-term alternative water sources to address an ongoing drought.

City officials said contractors have delivered key permits and design milestones and that staff expect a draft cost model this summer, with a guaranteed maximum price (GMP) target later this year and construction scheduled to begin in 2026 with plant completion currently planned for 2028. Staff also described parallel efforts: drilling and testing groundwater wells along the Nueces River, renewed talks with the Evangeline groundwater owners about purchasing up to 12 million gallons a day, and a consultant contract to study wastewater reuse.

The update matters because the council must weigh near‑term water needs against longer‑term costs and rate impacts. The council is considering multiple options — each with different delivery timelines, technical tradeoffs and price implications — while staff continue twice‑monthly briefings to keep the council and public informed.

What staff told the council City staff summarized where the Inner Harbor project stands. Brett Van Hazel, director of the city’s Program Management Office, described the current procurement and design sequence: the city completed a Phase 1A planning package, has a draft basis of design report under review, and has started Phase 1B work to capture long‑lead items. He said the project team has received the U.S. Army Corps permit and the TCEQ discharge permit earlier than anticipated and is reviewing a draft cost model now; staff and independent reviewers expect to complete a thorough vetting of cost estimates by July.

Van Hazel and staff said the procurement team selected Kiwi Infrastructure South as the progressive design‑builder and that Kiwi’s contract authorized Phase 1A preconstruction services. Staff described Phase 1B as work to secure long‑lead equipment such as transformers and to finalize demonstration‑plan details. If the project proceeds on the current schedule, the team expects to submit a…