Council approves modular brackish desalination plant contract, conveyance and groundwater purchases as part of multi-project water response

The City Council on Feb. 24 approved a cluster of water-supply actions intended to accelerate new local sources amid looming curtailment risk. Key approvals included a contract with Aqualia/MDS for design, procurement, assembly, commissioning and five years of operations for a containerized brackish reverse-osmosis (RO) treatment system at Owen Stevens, civil site improvements, and authorization for emergency construction work on a Western Well Field pump station and a roughly 13-mile conveyance pipeline.

Nick Winkelman, Chief Operating Officer for Corpus Christi Water, described a phased delivery schedule engineered for speed. "The treated water delivery schedule is 3.91 MGD in 11 months, 9.224 MGD in 14 months, 14.56 MGD in 18 months and 21.3 MGD in 24 months," Winkelman said when presenting the Aqualia plan. The council approved the Aqualia contract ($43,548,474) and ancillary civil and emergency conveyance authorizations (up to $11,451,526 and up to $120,000,000 respectively) as part of the item.

Staff presented a fully loaded CapEx estimate (including recently authorized groundwater-right purchases) of about $203.2 million and an estimated annual operating cost of roughly $8.4 million. Staff showed a raw-water rate increase of $0.56 per 1,000 gallons at full completion; CCW estimated the monthly impact on a typical residential household using 6,000 gallons would be about $3.38.

Council discussion focused on procurement speed versus competition, legal risk related to an administrative standing hearing in early March for the Evangeline permits, and the operational choices for concentrate (brine) disposal. Several council members emphasized the tradeoff: emergency procurement and early ordering of long-lead items risk price and cancellation fees but buy time when equipment globally is in high demand. Consultant Chris Noy (Pape Dawson) told the council that putting major items under contract rapidly could require tens of millions of dollars in commitments to secure production queues.

Council also authorized major steps on the Evangeline Groundwater Program: amendments to the City's contracts with Pape Dawson (construction management/inspection) and Garney (CMAR construction) and approved purchase agreements for groundwater rights (Lye Ranch, up to $38M). Council members repeatedly asked city staff to maintain explicit stop/gate decisions — authorizing orders but retaining the ability to pause or cancel if permitting or standing rulings require it.

Quotes and votes: "For a residential rate payer using 6,000 gallons of water per month, the rate impact per month would be $3.38," CCW COO Nick Winkelman told council during the presentation (at which the item was ultimately approved). Council voted to approve the Aqualia item and later moved forward on the Evangeline contract amendments and the Lye Ranch agreement.

What this means: The council has advanced a multi-path water strategy (brackish RO, groundwater, conveyance, and purchases) intended to create redundancy and reduce the chance of curtailment. Staff and consultants warned that many projects still face permitting and legal risks and that the city will balance ordering materials against the possibility of delays or litigation; council asked for staged gating points and reporting back so elected members can halt or adjust purchases if circumstances change.