CORPUS CHRISTI, Tx — Corpus Christi City Manager Peter Zanoni initially said the city's contract with the Nueces River Authority was unaffected by allegations of misrepresentation — but when pressed on whether those allegations could allow the city to recover $2.7 million in fees, he said he did not have an answer.
The uncertainty centers on allegations made by an NRA employee that Executive Director John Byrum misled both the NRA board and Corpus Christi City Council about how much water capacity had been reserved at a proposed Harbor Island desalination facility. The employee alleged Byrum told the City Council he had secured more water reservations than internal NRA records showed were actually committed at the time. Byrum has declined to comment on the allegations, saying it is a personnel matter.
Governor Greg Abbott has called for a thorough investigation into the matter.
Zanoni addressed the controversy Friday at the city's weekly water briefing. He said he and the city attorney had reviewed the contract Thursday and that it was "not impacted" by the allegations.
But when KRIS 6 asked directly whether the alleged misrepresentation to City Council could void the contract or trigger a refund of the $2.7 million, Zanoni acknowledged the question was unresolved.
"I don't know the answer yet," he said. "We'll have to have our attorneys help us with that."
The city paid $2.7 million to the NRA as a reservation fee for access to 50 million gallons of water per day from the Harbor Island facility. Zanoni said he stands by the decision to enter the agreement.
"I would have probably still recommended we enter into a reservation agreement," he said, noting that the city's participation led the NRA to shift its proposed pipeline route closer to Corpus Christi — a change Zanoni said will save ratepayers millions of dollars.
Because the NRA is a state agency with a governor-appointed board, Zanoni said the city will not conduct its own investigation.
"We're going to rely on the state and the governor and the river authority for them to analyze the situation that's going on and assess it in an independent way," he said.
In the meantime, Zanoni said the city will verify that the $2.7 million was spent in accordance with the contract, which requires the funds to be used specifically to advance the Harbor Island project.
Mayor Paulte Guajardo's statement regarding the NRA contract:
"This is not something that should be met with uncertainty or minimized. When credible concerns arise about the accuracy of information behind a multi-million-dollar public contract, it demands immediate review. Even the possibility of misrepresentation, especially tied to financials, goes to the heart of the agreement and the proper use of taxpayer dollars.
At a time when the Nueces River Authority is already facing broader concerns, the City’s responsibility is to raise its level of scrutiny, not lower it. Our priority must be clear: protect the public, verify the facts, and act with urgency."
