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Council staff says Harbour Island reservation contract still in force while NRA investigates allegations
Summary
City staff said the city's $2.7 million reservation of 50 million gallons at the planned Harbour Island desalination project remains contractually compliant, but the Nueces River Authority has hired an outside firm to investigate recent internal allegations and the city will track any reputational or delivery risk.
City staff told the council that the city has a reservation contract and paid a $2.7 million fee to the Nueces River Authority (NRA) to reserve 50 million gallons from a planned Harbour Island desalination conveyance. Staff said the contract terms remain in effect and there is no immediate city exposure to that reservation amount, but the NRA's recent personnel allegations could cause reputational harm that would make project delivery less likely.
City Manager Peter Zanoni said he contacted the NRA chair after the whistleblower allegations surfaced and learned the NRA had called a special meeting to retain an independent law firm to investigate the claims. "We reviewed the contract when we presented it and again recently; NRA is in compliance with the contract terms for the $2.7 million," Zanoni said.
Why it matters: The Harbour Island conveyance and a planned desalination facility were part of regional efforts to add supply. If the NRA cannot deliver the project or is judged to have misrepresented reservation status to potential customers, the city may need alternative sources and contingency plans.
Next steps: Staff said they will request the NRA's investigative timeline and documentation, and asked John Byram (NRA representative) to present to council at a future meeting. Miles Risley, the city attorney, explained government entities can have limited exposure to civil claims due to sovereign immunity, but staff said they will monitor outcomes and report back.
The council took no immediate punitive action against the NRA but asked staff to obtain details of the investigation and to brief the council when the NRA's report is available.
