Council adopts drought‑contingency policy and emergency 'search' charges; staff to refine apartment and wholesale baselines

The City Council voted on June 2 to adopt a revised drought‑contingency policy and a companion resolution authorizing emergency "search" charges that would go into effect only if the city reaches a level‑one water emergency (the planning projection previously presented to council had indicated a December 2026 trigger; staff said the date will be updated after new model runs).

Key provisions adopted by the council:

- Curtailment and allocations: Council set a uniform curtailment percentage of 25% across customer classes. The residential baseline remains 8,000 gallons per month; a 25% cut yields a 6,000‑gallon allocation per household during a level‑one emergency. Commercial, large‑volume and wholesale customer baselines will use historical usage windows (commercial: 2021–2023 with the lowest month excluded; large users and wholesalers: 2022–2024 with seasonality applied).

- Search charges: The council adopted a resolution authorizing emergency charges that would only be imposed once the city declares a level‑one water emergency. The fee structure approved was $4 per 1,000 gallons for usage above a customer's allocation; an additional surcharge of $8 per 1,000 would apply when a customer’s usage exceeds their baseline (effectively doubling the penalty for larger overuse).

Chief Operating Officer Nick Wikelman said the structure was revised after review to treat customer classes consistently in order to avoid regulatory challenges, and he stressed the fees are intended to be a last‑resort financial disincentive to excess use during a declared emergency. "The goal is to provide realistic baselines and allocations so users can plan," Wikelman said; he added the city will not activate the charges until a formal declaration of level one occurs.

Amendments and follow-up: The council adopted the policy with a direction for staff to continue working with the Corpus Christi Apartment Association and wholesale partners (notably the San Patricio Municipal Water District) and to return with refined allocation details within 60 days. Council members said the multifamily baseline required more review because apartment-metered service often reflects occupancy fluctuations and different water patterns than single‑family residences.

What changed from earlier drafts: Staff said the allocation method for multifamily customers was updated after meetings with property representatives to consider a longer historical window (including 2023–2025) so that vacancy patterns would not penalize owners or residents. Wholesale customers will receive seasonally adjusted baselines and will be expected to collaborate with the city and their retail customers to manage allocations.

What happened at the meeting: Council members debated the balance between charging all users fairly and ensuring residents who already have reduced use are not disproportionately penalized. The council approved the revised policy and the search‑charge resolution, and asked staff to return with additional data and proposed refinements for multifamily housing and regional wholesale allocations.

Next steps: CCW staff will open a variance process (an online intake form) and meet with apartment and wholesale representatives over the next 60 days to address occupancy, seasonal and retail‑customer factors. Staff will return to council with recommended refinements.

Representative quote: "We want baselines that are fair and realistic so consumers and large users can plan," Nick Wikelman said. "If we need to reallocate additional water we will come back with recommendations for a revised curtailment percentage."