- Corpus Christi City Council
- Approves first of two votes intended to move the Seawater Desalination Facility forward
- On Tuesday during the weekly city council meeting
Emotions ran high this week at the Corpus Christi City Council as council members considered and ultimately approved the first of two votes that are intended to move city's plans for seawater desalination forward.
Gil Hernandez, District 5 councilman and a longtime proponent of seawater desalination, said he did not vote on the seven desalination items presented at Tuesday's meeting.
"I mean this is laughable," Hernandez said during Tuesday's meeting. "Peter I know you want to move fast, but d**n."
"The majority of the council pretty much told staff get us some more water. That's what we're doing today," City Manager Peter Zanoni said in response to Hernandez.
"It wasn't enough information," Hernandez said. "Then when they did provide that, we were at the council meeting, which we weren't able to dig down and dive through the numbers."
Roland Barrera, District 3 councilman, was 1 of 6 to vote 'yes' this week. He said he had the information needed to make an informed decision on a topic that had been discussed for over ten years.
"The pressure of a deadline gives that feeling that it's being rushed because things have to be done a certain time to fulfill certain obligations," Barrera said. "I've always been a big supporter of the initiative because we need the water."
Hernandez said the ultimate impact to the ratepayer is still unknown and he was shocked by the price to build the inner harbor desalination facility.
"It's imperative that we look at this from that financial standpoint, how this is going to affect us," Hernandez said. "What is this going to do with the rates? I don't know how we can pay for a $758 million without rates going up significantly."
In 2020, the Texas Water Development Board approved a $220 million bond. That bond was to pay for completion of permitting for two desalination plants, land acquisition, design and the construction of one of the facilities —the one located at the inner harbor.
Last week, Zanoni said the cost of the inner harbor facility is expected to be $541 million. However, at Tuesday's council meeting, the cost totaled $758 million. Hernandez said he believed this increase in cost is deceptive.
"I just thought it was disingenuous," Hernandez said. "We didn't have enough information to make such a monumental decision."
Zanoni said the cost increased because the original plan was for a 20 million gallon per day plant, not a 30 million gallon per day plant, as the new plan calls for. He also said the $541 million is just the cost to build the facility. The rest of the money would go toward infrastructure and integrating the facility into the water supply.
"The all-in number that includes integration, power supply, more rigorous pumping systems. When you put all of the figures in, then it's over $750 million," Zanoni said.
Meanwhile, the final impact to ratepayers is not yet known. Zanoni explained that rate impacts have been reviewed and shared but could change. The impacts were based on the $541 million, not the full price, with the hope that grants could offset the rest.
"So any rate that we provide today is an estimate, based on the data that we have today," Zanoni said. "The rate can change, if the the grant comes in less. The rate can change if the construction comes in less."
Ultimately any bonds would be paid back through utility rates, which includes a surcharge for industrial customers. In the last 5 years, that account has totaled just over $20 million.
"We want certainty and quality in water delivery and supply. Although the rates are important, we can't have water unless we have the revenue to pay for it," Zanoni said.
"People may not see it, here in the short term," Hernandez said. "It may not affect rates over the next three to five years, but it'll come and it'll be significant. There's a lot of information there that needs to be provided to us so we can make a good decision on saying 'okay this is the right thing to do.' "
The second and final vote is set for Tuesday.
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