City Council - Regular Meeting

Heat. Heat. This meeting is called to order. Welcome to uh city hall to council chambers. Um this morning our invocation will be given by pastor Rob Bailey with Southside Community Church. Let's pray together. Our father, we thank you for this special day and this special opportunity for citizens to meet with our leaders. We pray for our mayor, for our city council members that you would give them great wisdom as they face many important decisions. Bless this meeting today. In Jesus name we pray. Amen.

Amen. Um, and as we observe Cinco de Mayo today and celebrate the rich cultural traditions in our community, we have Councilman Roland Bera who is now going to sing the Our Father for us in Spanish. Scientific say no to rain to voluntar. Destroy. No, I see must Mr.

That was beautiful. Decorum. Decorum. Decorum. Decorum. Thank you. That was beautiful. Um, and now our pledge of allegiance to the flag of the United States and to the Texas state flag will be led by Luke Lada. He is a collegiate high school uh senior student council president and president for our destination imagination team. Luke, please join me in the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Please join me in honoring the Texas flag. Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one and indivisible. Thank you, Luke. And good luck in your studies. Miss Wer, would you please call the role? Mayor Plet Wardo, present. Council members Roland Barera. Sylvia Compos here. Eric Anu here. Gil Nandez here. Kayn Paxton here. Ever Roy here. Mark Scott here. Carolyn vaugh here. City manager Peter Zenoni present. Deputy city attorney Buck Bryce present.

Mayor Council a quorum of the council and the required charter officers are present to conduct the meeting. Thank you Rebecca. And now we'll go to our city manager comments and update on city operations. Mr. Zenoni.

Okay. Great. Good morning. Thank you mayor and members of the council. We do have three items on our city manager report this morning. most of them are acknowledgement items. And so we have a lot of good things going on here at the city and a lot of good leaders. And so we're going to recognize some of them today. We're going to begin by recognizing our municipal court. And so I'm happy to share that the municipal court was recently recognized as a recipient of the 2026 Municipal Traffic Safety Initiatives Award by a state agency known as the Texas Municipal Court Education Center. And so the award is a statewide recognition and it's significant because it highlights our own employees dedication uh to work to address traffic safety and Chief Markle will tell you uh one of the highest causes of death is traffic safety here in our city. So, uh, this is especially important that the municipal courts team with their partners, including CCISD and one of our school districts, uh, Corpus Christie Independent School District, uh, and CCPD, um, are helping them to better educate our community on traffic safety and hence the award. So, our municipal court presiding judge, Judge Choa, uh who was instrumental in leading this effort and helping us get this award is here to uh talk to the council and the community a little bit more about it. So, Judge Chopper, congratulations, and I'll turn the microphone over to you.

Thank you. Good morning, mayor, city council members, and Mr. Zenown. Thank you for this opportunity to allow us to share this with you. Um, the Texas Municipal Traffic Initiative Safety Let me go to the next slide. I'm sorry. The Texas Municipal Traffic Initiative Safety Award recognizes Texas Municipal Courts for outstanding contributions to traffic safety, including impaired driving prevention, educational programs, and community outreach. In 2024, Texas recorded 4,150 traffic fatalities. However, this is the second year in a row for a decrease in those fatalities. Municipal courts have played a significant role in this positive trajectory. There are three tiers of courts in Texas. There are high, medium, and low volume courts. The next slide presents all the courts that did receive uh traffic initiative awards and we are amongst the high volume winners. In 2025, municipal court partnered with the Corpus Christi Independent School District and the Corpus Christi Bicycle Police. The court worked with the students at Colon Place Elementary School who participated in a bicycle safety workshop that addressed the appropriate bicycle size to ride, the properly fitted bicycle gear and wear, following traffic signals and the safety tips when riding on a street. The parents took away what they should know to make sure that they are aware of bicyclist and to share the road. In the fall of 2025, municipal court hosted a community event at Carroll High School focusing on the safe driving. We featured um there were other community partners such as Agra Life Driving Schools and many other vendors that were present. We had over a hundred students

attending this featured event. We featured a speaker who was Shawn Carter who shared his story about suffering a traumatic brain injury from a drunk driving incident and spoke about the lifealtering dangers dangers of impaired driving. The students learned about how drunk driving is 100% preventable. That concludes our um traffic initiative um information. I would also really like to take this time to give a shout out to all the members of our court from our judges who help us to forge through this to our juvenile case managers to all of our wonderful court staff and all the court clerks that are present here that take their time and their dedication to put all of their energy into this to help us achieve these awards and help us to make a difference. They are truly an awesome staff and really a great court and I just want to thank you again for allowing us to share this moment with you. And what we have are two of the awards that we have received from TMC, the traffic initiative.

Thank you. That's great. Good job, judge and team. Yeah. Thank you, sir. Thank you. Okay. Uh, go ahead. Yeah, we can. Judge, would you like Yeah, we take a photo.

Congratulations. Exactly. Congratulations. Awesome. Great job. Great job.

Oh yeah.

Everyone in the center is perfect. Can I have like three people come over here or two people? two people to this side and then if y'all could just scoot against the perfect Peter, you can just say the perfect council members. Perfect. All right, everybody look right up here. Big smiles on three. One, two, three. One more time. Big smiles on three. One, two, three. Perfect. One more. Y too soon.

I'm not going to share this with anybody. It's just for me. Everybody ready? One, two, three. Jeez. Thank you. All right.

All right. Okay, judge and municipal court teammates, thank you very much. Uh, mayor and councel, our next item is u deals with our m with our municipal clerk and uh, Rebecca does a great job u helping us run the city and uh, often goes unnoticed. So this week we want to turn the microphone over to her where she and her team are going to talk about uh the 57th annual professional municipal clerk's week which is this week right Rebecca and um so at this point I'm going to hand it over to Rebecca or Stephanie or Stephanie okay Miss Stephanie is going to uh talk to the council about this important annual professional week uh for the clerks.

Yes. Good afternoon. Stephanie Box, assistant city secretary. So since 1984, the nation has celebrated professional municipal clerk's week during the first week of May. Municipal clerk, city clerk, and city secretary are all synonymous. Each Texas city is required to have this position, and our city includes it as a charter officer as well. The city city secretary is assigned specific responsibilities through the charter, state law, code of ordinances, and council policies. Rebecca has served in this role since 2014. So my shirt says nobody knows what I do until I don't do it. So I would like to let you all know a little bit about what we do and to correct that. So uh our main responsibilities kind of fall fall into four areas. One is compliance and transparency ensuring compliance with the open meetings act, public information act, records management. We accept filings and publications and postings. We also um are very involved in civic engagement for citizens and the between citizens and the government. Uh so we manage city elections including coordination with our own city for notices of election and calling the election. We coordinate with the candidates and also with the county to actually host the polling location so everyone can get out and vote. We manage multiple boards and committees, open records requests, public comment, constituent relations which is helping residents and often explaining city policies and operations. So we provide council support by conducting research on various topics upon request. We onboard new council members, educate and advise council members, serve as parliamentarian during meetings, coordinate the meeting calendar and meeting logistics and record all actions of the council for posterity. Uh starting in about four years ago, we also became the birth and death registar for our city. So we record all births and deaths that happen within the city limits. We maintain and update those birth and death records anytime there's a change to any of them to maybe an adoption or um or whatnot. We have to update those records and we

provide certificates to qualified applicants. So in calendar year 2025, I'll give you some some data points for our office. We provided to support to city council meetings or workshops and council corporation meetings process 452 ordinances, resolutions and motions and nearly 300 contracts. We filed 15 campaign treasure appointments, campaign finance reports, and personal financial statements. We posted 561 meeting agendas and public notices, published over 50 notices in the newspaper, received over 2,400 open records requests, issued 25,141 birth and death certificates, and registered 6,236 births and 3,636 deaths. We accepted and processed over 500 board applications, swearing in and providing training to over 200 appointed members. Next, so with all that being done, we we do have some award opportunities and some accomplishments that we'd like to tell you all about as well. So, some of our recent awards is in 2022 and 2024, uh we received the Texas Municipal Clerks Association Achievement of Excellence Award. That award is issued every two years and we're actually just waiting on our uh to see if we get that award again for 2026. We received the 2024 Texas Department of Health and Human Services Vital Statistics Spotlight Award for collaboration and innovation. We are the DSHS bris um has categorized us as a low risk since 2024 which is the highest level of compliance that we can receive. Tina Belock, our deputy registar, was selected by DSHS to serve on a conference panel and she was one of very few local registars that was asked to review the 2025 um got lost her local registar handbook. So that goes out to all of the local registars. Anyone who registers birth

and death certificates in the state of Texas receives this handbook and he was one of few selected to re to review and provide some edits and suggestions for the entire state. Um, I am expected to complete my Texas registered municipal clerk and certified municipal clerk certifications in 2027. I've received several scholarships from TMCA and IMC, which is International Institute of Municipal Clerks, um, scholarships to help fund those, um, C certifications, and we've accomplished all of this due to Rebecca's leadership. I don't think anyone truly appreciates how lucky we are to have her. She's highly respected in the profession and she holds several certifications including her Texas registered municipal clerk, the certified municipal clerk and she is just one of just 1,400 master municipal clerks in the entire United States. Rebecca has also held many leadership positions in our prof in our professional association. So, we can just take a minute to recognize Rebecca for all of her work she does for the profession. So, with all that being said, please join me in celebrating my terrific employees to the side and uh help us celebrate a professional municipal clerk's week as we proclaim May 3rd through 9th Professional Municipal Clerks Week. Ladies stand.

Okay. Yeah. Yeah. We're gonna come in the middle and do a picture real quick. Yes.

Another one. Can I have a couple of y'all on this side? Actually, just one say. Yes, if you can. Actually, no. come back because this is longer than I thought it was. I'm so sorry.

Big smiles on three. One, two, three. Thank you. Thank y'all. Thank you for all you do, ladies. A whole lot. Thank you, Stephanie.

Okay, Rebecca and Stephanie, good job. We going to have some cake in the back later or Yeah. Yeah.

Yeah. Congratulations on the on the week and everything you all do uh to help our city. And mayor and council, our last uh last item uh is to continue uh to highlight our employees uh that help run the city. And uh this last item is our 2026 Women of Inspiration Award uh presentation. So uh this marks the fourth year that we annually recognize u achieving women that help lead their teams and help lead the city. uh the five women that are getting the award this year are are nominated from their peers uh from their either subordinates or colleagues or or other leaders in the organ or organization. And so Alisa Olsen, our director of communication is here and she'll talk about the initiative and then she'll highlight the five uh awardwinning recipients and they're here with us today. And uh after we after Alisa highlights each of the recipients, um I'm gonna go down there and take a picture with each of them and I think Alisa maybe and then we'll take a group picture with the full council. Okay. So Alisa,

good afternoon everyone. I'm Alisa Olsen, director of communications. Thank you for giving me a few minutes of your time today. In 20 Whoops. Let's let's do the presentation. In 2022, the communications department launched the women of inspiration awards program. We're really proud of this. It was created for a simple but important reason, to shine a light on the women across our organization who show up every day with strong leadership, great ter teamwork, and a true heart for service. And so, one thing that makes this program particularly special is that it isn't about titles or what's on a person's business card. We believe leadership happens at every level and we want to support the growth and success of women in in every city department. This year we had an incredible response. We had 112 submissions um from employees across the city and out of those 112 heartfelt nominations, five women stood out and were selected as our 2026 women of inspiration. Today we're proud to recognize these five women for their impact, leadership, and selfless service. So, I'm going to call your name and Mr. Zenoni will present you with your award. We'll take a photograph and at the end, we'll ask you all to come up and take a photograph uh in the front. So, our first um award recipient is Jacqueline Chapa, presiding judge of municipal court services. Thank you. And next we have Iette Wallace, interim director of development services.

Amy Callie, director of management and budget. Kimberly Hernandez, parks operations superintendent, parks and recreation department. And last, but certainly not least, Cynthia Barza, business manager, general services, fleet department. Thank you. Now I'd like to invite all five of our recipients and the city manager to gather at the dis and we'll we'll get a group shot and council members if you don't mind. Thank you.

Congratulations. Can I have you on this end? So Peter, you're on that end. On that end, I need this whole group. We're going to step this way and then take one big step towards me. Perfect. Perfect. Perfect. All right, council members. Everyone looks great. Everyone look right here. Big smiles on three. One, two, three. One more time. Big smiles. One, two, three. Got it. Good. Good.

Thank you. Thanks, Kimberly. Thank you.

Okay. Mayor and council. So that concludes the city manager report. I just want to reiterate that we get we have some uh great teammates in our city, great leaders that you saw today. Uh this organization is doing a lot for our community, but it's only because of the of the people that we have, right? A great city council. Yeah. Uh but they're doing a lot to advance a lot of the uh quality of life, safety, roads, right? Economic development. So, uh, these this is just an example of of some of the 4,000 4,000 teammates that are helping us every day. So, and today we recognized um development services a team even more more reason. So, yeah, thank you all. Thank you so much. Okay, I'm going to turn it back over to you mayor. That concludes Thank you, Peter.

We do have a few minutes and I'm going to try to get a at least one of these um the um maybe the animal advisory. Can we go ahead and go there? Yeah, I think that's a reappoint.

We have to do public comment first, mayor, before we can do take any action items on that. Okay, then we'll we'll go ahead and do that. It's 11:56. Anyhow, okay. So, as we begin uh today's meeting, I want to take a moment to address the rules of decorum. This council chambers is a place of public uh business, a forum for civic discussion, decision-making, and service to the people of Corpus Christi. It is not a stage for personal attacks, disruptions, or vulgarity. Uh we're here to do the people's work, so we'd like to proceed in that spirit. If you'd like to speak on a specific agenda item during its discussion, you do not need to sign up beforehand. I will ask for public comment when the council considers the item. At that time, you may come up to the podium and speak. I'll ask uh our city attorney uh Buck Bryce to review the council meeting rules of decorum which will be displayed on the television screens above. Mr. Bryce,

all citizens must be courteous, polite, and respectful of one another, including the city council and city staff. The mayor and city council members shall be referred to by title and/or title surname. All remarks must be addressed to the mayor and the city council and not to the city council members as individuals. Citizens are only permitted to speak on city- related subject matter. Speaking on any non- city related matter is prohibited. Loud, boisterous, profane, or obscene language or behavior is not allowed. Citizens must refrain from any disturbing noise, demonstration, or other acts disrupting to the city council business.

Thank you. In-person comments are limited to three minutes. Uh for callin or WebEx video speakers, Corpus Christi residents receive receive up to three minutes and non-residents up to one minute. A visible time or position near the city secretary's desk will help managing that aotted time. If you have a petition or any relevant information, uh please present it to the city secretary before speaking and she will distribute it to us. So at this time we have uh let's see we have 18 speakers two of which are our uh WebEx video and we will start with Mr. Sean Flanigan. Hi, I'm Sean Flanigan. I live in District 2 and I hope you guys are having a good day and I hope you still have a good day when this meeting's all over, whenever that might be. Anyhow, I shared with you a couple weeks ago about a event that the entire city, including you all, are invited to. This is a one nation under God prayer rally. It is happening on Sunday the 17th of May from 6:30 to 8:00 p.m. at the Cole Park Amphitheater. It is a simple event with prayer and singing. We are going to be doing that on three themes for the whole city. And we've got some distinguished folks. You got the agenda there. Samuel Frier will open it up by blowing the chauffar. Bob Jones of uh uh Bob Jones of City View Church is going to be our MC. Chris Harris is our singer. On a theme of Thanksgiving,

we've got Robert Robert Simmons of Annabelle Baptist, Ron Doning of Waldron Baptist Church, and Dr. Matt Moore of Most Precious Blood speaking on the theme of unity among our citizens. We've got Reverend Jansen Abraham from Harvest Tabernacle Church, Reverend David Bendett from Rock City Church, and Reverend John Hardy from City Church speaking. On the theme of forgiveness, we've got Reverend Glenn Holland of the Net Fellowship, Reverend Henry Williams, who's in attendance today, and Reverend Don Isam, Arlington Heights Abundant Life Fellowship. This is not political. It's not partisan. It's just coming together on those three themes of thanksgiving for having 250 years of being one nation under God, asking for unity among our citizens and forgiveness whenever we as a nation or as individuals have fallen short of the mark. Hope you can attend. Hope the whole city can attend. Thank you very much.

Thank you, Mr. Flanigan. Uh Mr. Joe Bante. Joe Breanti. Okay. Mr. Bradley Bartlesen. Good afternoon. I'm Brad Bartles, Corpus Christi. Numbers and analysis, not opinions, lead to a successful strategy. Analysis of the the 80s and 90s water data signaled us to action in 2015 and projected a drought every 10 years. So being 7 years late to action to the 2015 40% capacity signal meant we lost precious time to take preventative action. Population growth and municipal use showed little change from 2012 to 2023 while manufacturing water demand increased 50% in new aces in San Pat. Yet the labor force grew less than 1%. Numbers matter. If we're already under 5,000 gallons per user per month, what will a 5200 gallon restriction render? 2020 hindsight is just that, but we shouldn't avoid learning. If the MRP, the Mayor Roads pipeline was up to capacity in 2015, we'd now be at 62% instead of 7% in our reservoirs, adding an evaporation control on Lake Corpus Christi, and we'd now be at 74%.

In August 2020, the council voted for a $222 million inner harbor del plan that was only to 20, excuse me, 10% design by September 2025. Only when that cost increased five-fold did the project get halted. Yet this third action on a on timelier better return projects. So, Inner Harbor was a bit forced on us and on TCQ even amidst the strong directive coming out of HB 2031 not to dump deluent in any bay or estuary along the coast. Imagine being two years in and needing more water than Inner Harbor's 25 MGD yet having no money left. The residents had little to say or little to say. The 757 and Swift loans are paid back by the taxpayers required no referendum. The city since obligated the public for 48 million and hurry up projects again with no referendum and no call for industry to participate financially. We need a strategic plan rather than opinion votes by council. For example, what is the value of 1% job growth? A good water strategic plan ensures we're leading the bird, so to speak, creating stability that industry and residents can plan to. That needs control of sales and use of costbenefit analysis on water resourcing. That's it.

Thank you, Mr. Brdlesen. Uh Mr. Fawwell. Let me know when I have the floor. Yes.

Thank you. Okay. First off, respect to the citizens of Corpus Christi. If it wasn't for your time and energy, I wouldn't be able to speak here as this is our building, not theirs. Thank you. I would give you a round of applause, but that's only dictated by the tyranny in front of me and not us, which we will change if y'all will listen to me. You see these people up here? Do you think they have the power behind their name boards, behind their name plates? No. The power is actually behind me and the people. The issue is that they live in the shadows because they either do not know how to fight you or they don't understand how to. I will teach you. The only reason the government feels in power is because the people forgot who they are. I did not. I am an anomaly in your machine. You can't patch me. You can't get rid of me. I will not forget and I know how to fight you. The system panics. It isolates you. It slanders you. It tries to ruin you and has every single person you ever known and love fight against you as long as they're still plug plugged into the matrix. I can teach you how to unplug. Just listen. If you look on my social media page, you will see an incident with CCPD. CCPD broke into a home. No warrant, no law broken, no permission to enter. and they beat a young woman. Slammed her head into the table and beat her. This was Officer Martinez. Shout out to Ashlin, the victim. You are more of a man than most of the people in Corpus Christie as you stood against tyranny by yourself alone and no one helped you. Thank you, baby girl. You did good. If they'll do it to her, they'll do it to any one of us. And they've proven that. They don't care. I teach my members of Texas Strong Fitness whenever they're prospects. Day one is the hardest. All you got to do is walk through the door. Here's how I teach y'all. I'm a key and I know how to fight the system. If you listen, we can beat them together. Here's your choice. Stay plugged into the system or help me crash it. And this is to the entire

United States. The math is cold. The math is absolute. Key this number. If 200 of us stand up at this podium and we talk about Officer Martinez beating a woman, what happens? Council, what's 200* 3? 10 hours of your day stolen by us. All you got to do is listen. You want justice for that young lady? Listen to me. We'll take control of this meeting every single time it happens. If you double that and 400 of us show up, that's 20 hours in one week. Your salaries decrease. You will listen. You don't fear noise. You you fear consistency. You fear the masses and they will stop asking and start demanding if you listen to me. We can take back every single town across the nation and change the entire country if y'all will listen. Just by what I just told you. Capture them and take them. Power was never taken from us. We just forgot. It was just waiting for men like me to show you how to use it. Find me. Follow me on social media. Subscribe. I'm going to help you. 200 men times three. 10 hours of their day.

Alejandro Chavea. Mr. Cone, anytime someone comes up here with an allegation, we need to prove it right or wrong. Is there any way that can be investigated on Miss Martinez and come back and give us a report? We can do that. I'll work with the chief and uh we'll give the council report. Clarification. Okay. Yeah, go ahead, Chief. Yeah, just just a point of I'm sorry. No, no, go for it. David Blackman, assistant chief. Just point of clarification. There there was an allegation of excessive force on this officer. It is actively being investigated. The officer is on admin duty. Uh we are working through the process, the self-service process, the investigative process, and when it is once it is done, action will be taken.

Thank you, Chief Blackman. We appreciate that. Thank you, Chief. Mr. Chavea.

Yes, ma'am. Alejandro Chavea, uh, District 3. I'm here to talk about fog nets. As you guys can see up there, those fog nets are used in Africa, Chile, Israel, all these countries. Germany is a leading company that makes this because the fabric that they use. The ones that I've made, prototype, I bought fabric right here at Home Depot to make that one. I can still make a lot more out of that same fabric. Um, what I wanted to do today is ask the city council this. If I build them, will you let me install them along the lake? I have started a GoFundMe account. I've had a lot of people look at it. It just happens that one person has donated from Dallas, Texas. This person has come over here, visited here. They love the place. They want to come back, but they don't want to come back because there's no water. So, I just wanted to see if the city would let me do this. I could probably get volunteers to help me do this. My GoFundMe account, if I can say it, is Veterans, excuse me, Veterans Harvesting Water for Corpus Christie. Now, if anybody can share that for me, that would be great. My goal right now is $2,000. But if I do that and get the $2,000, I'm going to go for $20,000. Why? Because with $20,000, I can probably be build, excuse me, about 200 of these. Believe me, they will get water when it rains and there's fog. I have the proof. Another thing you guys should think about lining the lake and the river with river rock. Black river rock. Why?

Because black river walk when it gets hot in in the daytime absorbs all that heat. At night time when it cools down it releases it and it's water. I do that with my garden. You can do it with your with your grass. You don't even have to water your grass with this. I'm doing it right now. I got some prototypes also on how to kill mosquitoes. And let me tell you, it's working using copper. This is old techniques. I'm a technologist. I believe myself to study old technologies that man does not even use anymore that they forgotten. Why? Because there's no money in it. But uh I mean I could still here and tell you line the lake with river rock back river rock line the river and sooner or later it takes time. You'll get water. The river rock will also keep that water there because in the daytime it does not allow the heat to take away that moisture that it released at night time. This is a cycle that happens every day. Thank you very much.

Thank you, Mr. Cha. Susie Salana, Susil Luna Salana, Corpus Christie, Texas. You know, I've come to today to give you kind of a reality check. You want to know why? Because I spent a lot of time trying to figure out what's going on in city council. And what I'm hearing from the people is let's get rid of the whole city council and put new people there. And I'm telling you, I know each and every one of you. And I know that most of you want what's good for our city. Okay? You want what's best for our citizens. And I don't like this idea of replacing a whole city council because then you have all new people that have to learn everything from scratch. So, one of the things I'm going to ask you to look at is staggered terms so that you have people that are already there and that are coming up again. I think that would be the best thing for our city. Okay? I know you have to put it up to voters. I know that some of those things have to be done, but I'm asking you to look at it because right now I'm seeing a lot of conflict of interest. And you know what kind of conflict I'm interest? I'm seeing among each other. Not necessarily against the policy but among each other. When I hear that you have one set of rules for one people and the different set of rules for another, it doesn't coincide with me. Everything has to be equal. If you apply one rule to one, it should be applied to everyone. And I'm not seeing that from you. And that is why people are angry. They are angry about the water because they hear that we're running out of water then we're not running out of water. We have water, we don't have water. We don't know what to believe anymore. The

citizens don't know what to believe anymore. So someone has to take the reign and actually say this is going on. When they tell us there's water for our citizens and industry should be the one to cut, that's not being portrayed. that's not coming across to the people. That needs to be said by you. We say it. We bring it out in social media, but people are not listening. They blame each of you and every one of you for what's going on here. You kind of need to straighten out the perspective of people. And that's why I'm here because there's still time for you guys to turn things around to work together as hard as that may seem and to come up with some good solutions for we the people cuz right now you're failing at the task and I don't like it because I know you are good people there but you're not coming across as such. Time to wake up people. Thank you. Uh Eddie Flores. Eddie Flores, District 2, Corpus Christie, Texas. First of all, let me thank my Jesus. He's always with me and with you guys. The reason I'm here real quick and now that I'm here, where's uh David Blackman? He when he he used to be my direct patrol officer. did a great job and I want I want to thank him and uh but I'm here because I was going down Holly Road to my eye doctor and I saw a person in a wheelchair and when I got out of the eye doctor about an hour later that person was still there. So we I pulled in and it was a dollar store and and I pulled in there and I got off. Well, when I walked

to the where this person was, the sidewalk had gone down 6 in. This person was in a wheelchair. one of those manual wheelchairs and he had been trying to get out. Now from the street you couldn't see that. So I started asking my friends I said listen now who's in who's in that area in Holly Road and they said well it used to be Mr. Barera and then it used to be and now it's uh I think it's um um Mr. Canu Eric but he ain't going to do nothing. They don't do nothing. The city council only do it for themselves. I said no that can't be. I see these guys. Now, you might not like him, but hey, this the way it is, you know. So, anyway, I texted Mr. Canu and about not about about seven minutes later, I get a text and I show him what I got the pictures and he said, "Let me look into city services." And sure, I passed the next week and there was a rope around it. There was a rope around the sidewalk. I passed the other week and the sidewalk was brand new. I didn't know at the time that this person was a a veteran. He was 71 years old and he that's the only way he goes to that little uh dollar store. And I and I want to thank you, Mr. Canu, for responding. I know everybody told me, "No, he ain't going to do nothing. He's too young. He don't know how to do the system." And everybody's like that. I don't believe that. You guys are good people. Okay? We have We always have water problems. Okay? It was not this city council or the last city council, but if you look through history, every other city council here has gone through this. Now, we had a tropical storm and we fill up everybody. But, you know, I don't know about what the rest of the people think, but you know, I'm not against you. I don't hate you. Your job is hard. You know, but as as Mr. Canu proved, you people do care. He cared enough to I guess he called city staff. I don't know who he calls sir, but uh the the veteran told me that's why I'm here right now. He says, "Man, I'm I can't go around

like I used to be." But anyway, having said that, that's why I'm here. I'm not here to chastise anybody. Your job's hard enough. You don't need me. You know what to do. You guys are grown-ups. This is not your first, you know, rodeo. But thank you, Mr. Ku. I wanted to uh let you know that we really appreciate it. And also, I got five seconds. I want to thank Rachel Cavayto. Um, she gives me a lot of information. Thank you.

Thank you, Mr. Flores. Julian Hernandez. Um, uh, Julian Hernandez, D3. Um, I just wanted to come out and uh and kind of reaffirm uh what Mr. Ku said last week as far as uh the water crisis that the residents aren't running out of water, but uh the refineries are um historically the the the the utility people that I've worked for um as you can see it now, you know, of course they have more money than we do. um you know a billion dollars to them is probably a drop in the bucket you know divided between them all. Uh whereas the residents that use a fraction of the water you know it's a lot of money to come up with. Uh with that being said, um the way we used to do it uh with the utility system with you know is we'll push it as far as we can and then at that time when we see kind of things are kind of getting in the uh we need to get nitty and grey we start re reaching into our front pockets and then pulling out the nickels and dimes and you can see that already happening uh with the ones that are building their own pipelines. And then um afterwards, you know, when they do the cost evaluation on what it's going to take when they actually run out of water, when they actually have to shut down, um you know, a billion dollars to them is is is not very much money. So when they're the the prospect of them actually running out of water, them having to shut down, you know, a billion dollars versus, you know, how many time how many days or or how many weeks or months are we going to be, you know, down, uh the cost ratio, um you know, that's when they start reaching in

their back pocket and actually pulling out real money. Uh you know, to to do these these these del plants or whatever. Uh I've said it before, I'm not against Del. I think we do need it. Uh, but I am against the the the public paying for it uh to offset their cost. Thank you.

Thank you, Mr. Hernandez. Bruce Satala Bruceella, not in my backyard for del area. Hillrest is an environmentally unsafe size limited dead leg location at odds with a Texas Senate bill uh in 2018 study at odds with the general land office and the Texas Parks at odds with the Texas Parks and Wildlife who did the study. I recommend asking Brad Bartlesen to lead a team to negotiate a fair deal with San Antonio on using the GLO approved Barney Davis area southward for gulf outflows. It's expandable and less expensive for rate payers. Could you council members please ask Brad Bartles's ask for his resume? And now, while we have very low lakes, about 1998, a young lady we all worked with at the Moore Plaza HB was Lori, an overnight cashier, uh, she took care of customers at the 24-hour store, while nighttime stalkers reloaded the shelves. I waited on her husband and two boys about eight and 10 years old on occasion during the day. One day, I came in to work my shift and was told Lori had drowned in Lake Matthysse while playing hideand seek with her two boys out on the water. I have a feeling her shoulderlength hair got caught in one of the famous underwater trees that didn't get removed before the lake filled up. My aunt and uncle like to camp out and they would often tell me stories in the 60s and 70s about how the news said Lake Corpus Christie had some drownings, mostly from getting caught in the trees

underwater. Now it had happened to someone and her family that I knew. So, while the lake is way down and the trees are more visible, can we please get with any groups that keep track of where any maybe invisible trees still are and get them bulldozed out of there so our lake will be safer when it's filled again? This is literally our once in a-lifetime opportunity for Lor's memory and all who drowned there before and since. Thank you.

Thank you, Mr. Sutala. David Hill, Hilly. David Hela, Dale Swatella, District 1. I heard the TCQ has turned down the port's plan for the uh inner har for the harbor island del. So that leaves us with the next best plan, Bernie Davis, which can be fasttracked for permitting by the uh laws passed by the 84th legislature and Governor Abbott can help with that too. I know city leaders have discussed putting a del plant there for 20 or 30 years and has been now been bought by San Antonio in March of 2024 for the power it generates. Since that purchase over two years ago, how many meetings has the city staff had with San Antonio staff about uh either jointly building a del plant with us or letting us just build a plant there at Barney Davis? If none, then why not? We need someone who knows how to make good deals. Someone who could do it without being wimpy. We need a strong negotiator like the head of Water for Life, Brad Bartles. Just ask him to be a consultant and let him speak for our city. They can't say something that will catch him off guard. I've noticed you all hire consultants a lot. If he will accept the job, authorize our city manager to hire him to represent us to San Antonio. And just please don't send any current staff as they have all

one mindset since 2002. Get Hillrest Del. And we all know it is not expandable. Barely making enough water for Exxon. And they have no heart to get any other del projects done. And one other thing, why are you asking Corpus Christi utility customers to pay 100% of Exxon San Patricio water needs? Please be sure all the 500,000 recipients of our water, which includes area towns, are sharing the costs of whatever the del plant you decide to build, not just corpus Christians paying for it. I remember hearing you tell us last year that that you'd be raising our corpus water rates $50 a month when it starts producing. Don't let us be the only ones paying for it. Thank you.

Thank you, Mr. Satella. Councilman Pex, thank you. I just wanted to make a quick statement of fact. Um I don't believe the TCQ has denied the Harbor Island project. if you're referencing recent um news, they just did not receive the swift funding this round. They're not they weren't denied. It's just going through the process. Thank you,

Henry Williams. Oh, I'm sorry. Ron Woods and then Henry Williams. Sorry, Reverend. Good afternoon, mayor, council members, and uh a special hello to Sylvia Compost. Served with her for about six years on the park and wreck advisory board. Uh I'm here I've been involved with tennis for 71 years in this community as a player, a teacher, and a volunteer. I spent most of my adult life teaching and volunteering to grow the great game of tennis and raise the standards of the tennis teaching professional. I and others are asking for the council to ask the parks and recreation department to take a pause in their pursuit of taking tennis courts at Al Cruz Tennis Center for pickle ball use. I've asked for records from the city secretary's office on the amount of play from 2020 till 2024 when the Alzando Foundation ran Al Cruz and records from 2024 when the foundation took over both HB and Al Cruz Tennis Center. I feel that with those records we can show that the Alzando Foundation has not lived up to the contract obligations they signed on for with the city relative to relative to promoting activity with adult and junior lessons, fun events, and in-house tournaments equally at Al Cruz Tennis Center versus HB Tennis Center. All tennis activities, lesson programs, and play seems to have been moved over to HB Tennis Center, and no one enthusiastic or qualified to teach or promote programs and create play and interest is

on staff at Al Cruz. There are many who look at Al Cruz now as a dead tennis center because there is no activity being promoted by the Alzando Foundation on the courts to make it a viable and busy facility. Therefore, the pickleball population thinks tennis is not popular or a growing sport. There is an 11% increase in local league play and an 8.8% general play nationally. Tennis is not growing as rapidly as pickle ball, but why take facilities from one growing sport to satisfy another growing sport just because it's growing more rapidly? There is definitely a need for more pickle ball courts. There is a short-term option and a long-term option to which I feel can be utilized in this situation. Short-term take the covered courts at HB Tennis Center and convert to 10 or 12 pickle ball courts. This will take care of needing more pickle ball courts in our community and increase revenue not only because of more courts but there will be no loss of revenue because of rain. Plus the stadium seating fan-friendly tournaments can be hosted. The indoor courts are not utilized for league player tournaments. Only general play lessons utilize the courts which pickle ball re revenue can far exceed. Long-term have the Corpus Christie Tennis Association and the Coastal Ben Pickle Ball Association join in raising money to build a tennis pickle ball facility at Bill Wit Park that was proposed in 2018 and have the city provide the land.

Thank you, Mr. Woods. Thank you.

Yes, sir. Henry Williams to the mayor, our city council men and women, city secretary city manager and our representatives of our community, the National Day of Prayer. And this will be occurring day after tomorrow, Thursday, May 7th, at the Dunes County Courthouse. the Leopard Street Pavilion. The National Day of Prayer occurs each year, the first Thursday of the month of May. The National Day of Prayer historically began with the Continental Congress in 1775 as a day of public humiliation, fasting, and prayer for our nation. In his role as commander and chief of the Continental Army, George Washington acknowledged a day of fasting, humiliation, and prayer proclaimed by the Continental Congress to be held on Thursday, May 6, 1779. Abraham Lincoln proclaimed a day of national humiliation, fasting, and prayer to be held Thursday, April 30th, 1863. The National Day of Prayer was signed

into law in 1952 by President Truman. The law was amended in 1988 and signed by President Reagan to be the first Thursday of May of each year. Our local observance in Corpus Christie will be held Thursday, May 7th at the New County Courthouse, the Leopard Street Pavilion at 12 noon. We will pray for our city, our state, our nation, and that our governmental leaders turn to Jesus Christ with their whole heart. And the church would fulfill 2 Chronicles 7:14, the scripture which states, "If my people which are called by my name shall humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven will forgive their sin and will heal their land." You know, and the problems that we're facing in our city are not too great that they cannot be solved if we will turn to God and to Jesus Christ in prayer. God bless you.

Thank you, Reverend Jason Hail. Jason Hail, Corpus Christi. Uh, thank you, mayor. Good afternoon, council members. Uh, today I just wanted to share an update on the public utilities commission uh, water rate appeal that's been going on for the past year and a half. Um basically, you know, we used to undercharge certain customer classes um for water and then in 2022, the city hired a consultant to figure out um fair water rates for everyone. Uh and in 2024, we implemented those rates. And uh later that year the city um I don't know if they got sued or what but there was an appeal with the PUC and um basically you know it's been on a long ongoing process. There's been a lot of fees for lawyers and consultants that have been um acrewed over that process and I think a lot of people in Corpus were concerned that we would have to shoulder the cost of those lawyer fees and consultant fees for the appeal even though we set fair water rates. And um the update is is that uh there's been some testimony from PUC staff recommending that the city recovers their legal expenses um from outside rateayers instead of having to shoulder the costs onto um inside city limit rate payers. Um, according to the testimony from PUC staff, the expenses for legal services

was $39,000, um, and $144,000 for consulting. And the staff recommended, like I said, full recovery. And basically, um, you know, I think that's exciting news. It's not final, but I just wanted to thank city staff and leadership and the legal and consulting teams for protecting our water rate payers and for um setting fair rates and for doing that um all while we're going through this water crisis. Really appreciate um everyone's work and leadership. So, thanks. Thank you, Mr. Hail. Rachel Gabiano.

Hello, Rachel Cavayto D1. Um, I just wanted to clarify a couple of things because I know that Governor Abbott came down on a lot of our council saying that we swindled and burned through 757 million and that's not true. I think we all figured out that the first amount was 220 something million, but 50 Councilman Baretta confirmed has been swindled uh on our local radio show. Um the other issue is whenever the governor comes and says that he is trying to help with our problem, that's obvious that he is not because the Texas Water Development Board denied uh the initial funding for Harbor Island. So, as a community, we have to be really, really careful in what we believe from career politicians and the media because if Governor Abbott was truly trying to help our community, he would have allowed the scope of change with the Texas Water Development Board on the wasteful money that was loan that was re received too early for the Inner Harbor plant. And people don't know this and it's hard to get the information out there. So, government Governor Abbott is in fact not helping the citizens of Corpus Christi and the community needs to be very very aware of that. Um, there was a story in April about usage and community versus a large volume commercial and you know the community conserved 34 MGD in a month. 34 million gallons of water a month. industry increased their usage by 29 million gallons of water. So, we're conserving and industry is taking what we're conserving. So, I'm going to ask this

council to do some deep thinking about that $500 fine and then an immediate shut off because remember when our community members do not pay that $500 fine probably because they cannot afford it, they're going to jail because that fine with the municipal court thinks geniuses will turn in to a warrant. So, we have to get to a point where this elected body starts making decisions in favor of the majority of this community, not the people that can afford the $6,000 bags in various colors. We cannot afford this. This is insanity. And I'm just going to put this out there for industry because everyone on this diet should be talking to industry leaders and saying, "Hey, we've given we've given we've given. We there's been no economic development. The community is not receiving any benefit of industry being here. We're not getting discounts on gas. We don't have amazing little league parks. We don't have amazing parks. You know who's getting all the funding though is the friends, the 501c3s of the friends. Have the day you deserve. Um, so, uh, statement of fact, last week, uh, we made it very clear that we wanted some changes made, and I want the public to know this because of what was just mentioned, and she wouldn't know. It's not her fault. Um, but we are we are definitely staff has I believe they've met with everyone, if not the majority, and and are meeting with council members because this council did have some issues with some of the things mentioned such as the violations and and such. So, my point is we're not going to get into the weeds now because it is a work in progress, but you're absolutely going to see on the 12th, I believe, is is it's scheduled. We're going to see some um some changes to that plan and and I think that you will um you'll be very

pleased with them. But again, it's a work in progress. So, more to come. But just so you all know, none of this falls on deaf ears. and a lot of council members, if not everyone, made a comment uh towards some some of those things that existed. Thank you. Sorry, Robin Cox.

Hi, I'm Robin Cox, District 3. And first, I want to say something about the man that came up here and gave all the things to do for water, such as putting rocks. I hate to tell him this that's not going to happen because no one's gonna make a profit off that. If you can't make a profit, no one's gonna no none of y'all are going to do it. So, just to say that, but I wanted to first thank the officers um that helped me with my situation last week. That was really wonderful. They addressed it immediately. And again, I had a problem last night. I was able to call one of them and they were out to come out to the scene. I know we all say crime is down, but is crime really down or are people just afraid and not reporting it? I hear all the time elderly people say, "No, I don't want the police in front of my home, then they'll come back for me." And how what I wanted to get with that is we need to be the example though. We're starting to be the example of crime and violence is normal. Um on our own boards, we have several people that have committed crimes. It it makes no sense on our own public boards. These are people who shouldn't be within 10 feet of a child and probably in the 80s couldn't get a Blockbuster card, let alone be on some of the boards you have. Um, some of the charges are criminal. They've been to jail for them. And that's quite disturbing. Um, many times when I come up here too, we need to address that when you're coming to speak at city council. And I've said it before and I know people have blasted me on their shows about me saying they're afraid. If we're getting dirty looks, being called names, we're not in high school. We need to be act act like adults when we're here and not point out people. And when we have city officials yelling out names and um I know we can't yelling out to people. I went to see the Buck parade. Wanted to have a good time with some friends and family and some one of the person in the parade yelled something out at me. Tried to be intimidating. And I'm not going to mention names, but Mr. Zenon, tell your

wife I said hello back. And um because that's that's just uncalled for. That's uncalled for. There was a town in the 1800s called Charleston, Arizona. Half the people left because it was just run by criminals. And that's what's going to end up here if we keep going down this path. So I hope there are some changes in the future. Thank you, Rebecca. Do we have two WebExs? The first person is Sean Merritt.

Good morning, council. Can you hear me? Yes, we can.

Very good. Uh, we've spent weeks hearing about conservation baselines and the proposed 5,250 uh gallon limit. I want to focus on what happens when that limit doesn't work. Uh, the exemption and variance process. Uh this is where policy meets reality. Uh under this system, residents who cannot meet the cap are required to explain why not just usage but as the form itself says hardship, damage, harm or threat to health and safety. Now this means describing how these limits affect their health, their families, their living conditions. Now a resident may have to explain a medical condition, disability, a health risk inside their own home. put it in writing, submit it to the city just to use water above a baseline. So, let's just call this what it is. That functions like a coerced medical exemption. You are asking residents to justify water use based on their health. That means disclosing private medical information and this raises four very important questions. What level of personal or medical detail is expected? Who is reviewing that information? What medical qualifications do these reviewers have? And what written policy governs how it is stored, protected, and who has access to it? Right now, those answers are not clearly defined. So, people are being asked to explain their personal health situations without knowing who is reading it, how it's handled, or what standard it's judged against. And that creates a trust issue. And I don't think I need to tell you right now trust is pretty thin, especially when residents have already reduced by use uh usage by billions of gallons to get under the allotments while largest users operate under different rules. And we still haven't received a clear answer on equivalent enforcement for industry. I asked this last Friday. I didn't really get a good

answer on it. Before this policy moves forward, this needs to be clear. People should not have to guess how much they need to disclose to meet their medical needs just to stay compliant or what happens to that information after they submit it. This isn't about opposing conservation. It's about making sure the system enforcing it is fair, transparent, and accountable. Right now, it isn't, and that needs to be fixed. and I will be asking this at Friday's water briefing and I hope I can get a clear answer on Thank you for my time. Councilman Paxton,

thank you. Um, thank you uh for bringing that that piece of information to our attention. I just wanted to say a quick statement. In fact, I've talked to our director of water, uh, Mr. Wkelman and I've been assured that we are going to be re-examining and going over those variance forms and addressing those types of concerns. But thank you for bringing that to our attention. Okay, next is Robert Harvey.

Hello, I'm Robert Harvey. Um, not going to give my address. That's my fourth amendment right. I was listening to the decorum rules at the beginning of the meeting and I just want to let everybody know that that's The decorum rules are for the public servants to follow, not for the people. The people have their rights and they have free speech. Our country was built on criticizing the government. The Supreme Court has ruled on this numerous times, including Rosenblat versus Bayer and the New York Times versus Sullivan County. That means I can criticize any one of you up there that I want to. And I'm going to start off by criticizing Miles Riley. I've been watching a lot of these uh meetings and I routinely see him violating people's constitutional rights stating decorum rules. Decorum rules are for the public servants. Policies are for the public servants. We the people have the constitution and our civil rights. Stop trying to violate people's rights. I think Jason's done a good job of restoring that a little bit. Next, I want to talk about this disgusting police officer, Martinez, who violated basic constitutional rights of this woman. I I I don't remember her name, but first, a Fourth Amendment violation, a basic constitutional right. He went in her house. No search warrant, no no permission, no exigate, no exigent circumstances. She told him that she was not suicidal. And what does he do? He slams her head into the counter and then slams her on the ground and repeatedly punches her in the face. Why isn't this guy in jail right now? There is enough probable cause right now to put this guy in jail. If a citizen had done that to a police officer, we'd be buried underneath the prison with no bond and we would get a lengthy prison sentence. We are sick and tired of seeing this stuff. Uh he he's on administrative

leave. We've seen this over and over again. internal affairs will investigate him for over a year or or or the Texas Rangers will come in and investigate him for over a year. He'll get paid the whole time. They'll cover it up. We're sick of this Put this guy in jail. He is a monster. What he did to that woman is unacceptable. It was on video. Make an example out of him. Please. We are sick of this Please do something about Officer Martinez immediately. Thank you. Right, Mayor. That concludes the public comment period. Thank you, Rebecca. We're going to go ahead and move on to a board and uh committee appointments. Back to you.

So, our first board is the animal care advisory committee, which has two vacancies representing the following preferred but not required categories. One community at large and one veterinarian. Jackie McCulla, uh she's community at large, and Robert W. Perkins veterinarian are seeking reappointment and their attendance records are included in your packets. I move for reappoint. Second. Okay, we have a motion and a second. Are y'all loading this or do you want to just do a voice? You can just do a voice, ma'am. All in favor say I. I. Any oppose? Say no. The motion carries.

All right. Next is the ethics commission which has two vacancies. And please note that members are appointed to the board by a twothirds affirmative vote of the full council. So each each um appointment will require six votes. Okay. So I'm going to go ahead and open uh nominations. I'd like to nominate Jenna. Okay. Councilman Matthew, nominate Jerry.

Okay. All righty. I'm I'm going to close nominations and we have two vacancies. Yes, ma'am. Two vacancies. I'll start with Councilwoman Vaughn. Fa and Wesson. Uh Wesson and uh Feka.

Um Feka and uh Pamela Rollingham. in one second.

Okay. So, uh, FCA is appointed and then we'd have a runoff between Robert Toy and Wesson, right? Wesson, Toy and Wellington. Yeah, Willingham. Between who? Sorry. And do a runoff. I'm sorry. Who is the runoff between? Can someone Oh, is it five? The three names. Yeah, but we still have to do We've got two people with three votes. So, I'd say it's it's it's a three-way. Yeah, it's right. Okay. So, we're gonna the runoff is on the bottom. She's going to be moving those names over. Who are the names? Can you state the names? They're Willingham, Toy, and Wesson.

I'm sorry. They both have three. U Pamela, Robert, and Matthew Wesson. So, Willingham, Toy and Wesson. Okay. So that would fill the second vacancy. Yes. So just vote for one, please. We'll go ahead and start with Councilman Ku.

Haml. Wesson. Um I guess we have to do one more. Just a moment. We have five. Norma, is it okay? So now Willingham and and you stay, Rebecca. Ma'am, the two people and so we have one more runoff. The people in the runoff would be Pamela Willingham and Matthew Wesson. Okay.

Is we do need six votes. The person needs to get six votes to be appointed to this particular board. Before that it was three. Yes, ma'am. Okay. Council move on.

Wesson. Wesson. Pamela. All right. So, Miss Willingham is appointed. Thank you. Okay. So, then that leaves us with the Marina Advisory Committee. There's one vacancy. Steven Gotberg is seeking reinstatement. Second.

Okay. And we did recommend for Mr. got um that and it's just a recommendation that this appointment be contingent on completing the board training course. We recommended 30 days, but it could be um if you wanted that sooner. I mean, it's up to you on the time on the time, but we do recommend that just so that's our recommendation. So, for to take the training. Oh, it's about an hour, two hours. Yeah. 30 minutes. Can you turn on? That's me.

An hour each and those are developed by the state. The rest of the course doesn't take that long. Oh, I'm sorry. I'm sorry. So, the public information act and the open meetings act, those are an hour each and those are developed by the state. The remainder of the course is um will take about 45 30 45 minutes tops. It's not a long process. Rebecca,

no, he hasn't done it. So when he was initially appointed, he had six months to take the training and and that's per the code that's required in the code and um he did he did not take the training um at the and then right before um the deadline uh expired for him to to take the training there was an incident in his marina he owns marina uh what is it marker 37 there was a fire so at that point um he did ask would the council consider reinstating him in light of that event of that unfortunate event. Uh so now since he had 6 months before and and didn't take it, that's just we're just recommending that if you would like to reinstate him just um we could accelerate that a little bit and ask him to have a a set deadline on completing it.

What was the deadline? Well, we recommended 30 days, right? Within So, but I mean it's uh it's up to you. Okay. So, we need to uh Did we already nominate him or Yeah, I heard there was a um we'll move to nominate or to put him back reappoint him reinstate him. Yes, ma'am. With the with the 30-day. So, is is everyone okay with that or Okay, sir. No, I mean I think we can just add it now. All in favor say I. So, contingent. Yes. Any oppose say no. The motion carries. Okay.

Thank you, Miss Wood. Okay, that takes us to our uh consent agenda items 5 through 20. We are pulling items 14 and 15 for individual consideration. Um items 17 uh staff is withdrawing. So we'll take that out. So that leaves us with um well again 5 through 20 with the exception of 14 15 and um 17. Uh do we have any requests from the council? Item 12. Any other items to pull? Council members. Okay. Is uh anyone Yeah. Anyone in the public? Uh would you like to pull any item for public comment? No.

Okay. Okay. We have a motion. Do we have a second? Okay. All in. And this is to approve agenda items 5 through 20 with the exception of 14 and 15. and we are pulling 17 and number 12. All in favor say I. I.

Any oppose? Say no. The motion carries. We'll go to item number 12 first. And that is a uh motion authorizing execution of a 15-month cooperative agreement with Newasis Farm Center. Uh this is uh through the byboard cooperative for heavy equipment rentals to be utilized by public works. Councilwoman, your uh question or comment. I'll make it real quick. I just was curious. I know last year um we issued about $11 million and we were upgrading fleet across the city, a bunch of vehicles that we needed, increased large equipment, that type of thing. So, I was curious on that on this one. This makes me think perhaps we didn't fill the need. Could you just briefly explain?

Yes, ma'am. Mayor Council Ernie Deagarza, uh interim assistant city manager, director of public works. Yeah. So the intent of um this rental agreement is to have the capability of providing uh backup equipment for special operations. Say for example uh one scenario came up for our our pilot uh sidewalk program. Uh we didn't have the skid steers we needed. So we rented what we needed. Um, another scenario is uh a miller went down during the rapid payment program and uh we do have a good turnaround uh time by our fleet uh whenever something goes down but uh we do support uh per paving team about 20 to 25 people per team. So something like the milling operation uh if it goes down uh then I have to go and uh redistribute those resources to another operation uh that day uh because they can't just be waiting for a miller to come available. So this will assist us in those emergency type scenarios. As far as uh your question to our fleet, I we're we're adequately uh supported with the equipment for the operation. Um and we do keep up with our maintenance schedules, but this these are for those uh once in in a in a lifetime scenario where something will go down unplanned. Um and it it has been helpful to have a backup uh like this so that we can just keep on rolling.

Okay. So, this is kind of more of an up to Yes, ma'am. It's not just car. Yeah. Okay. Yes, ma'am. I appreciate that. Thank you, Ernie. Okay, I'll entertain a motion to approve number 12. We have a motion. Do we have a second? Second. All in favor say I. Any oppose? Say no.

The motion carries. We'll move on to our individual um consideration items. Number 14. This is a motion to determine if city staff is to evaluate a business proposal for future desalination water supply as developed by Axe H2O. Good. Uh, good afternoon, Mayor and Council. Nick Wkelman, chief operating officer, Corpus Christi Water. I have a short presentation for you. But first, I do want to recognize the representatives of Axe H2O that are here today. We have Matt Berger, John Olsen, and Thiago Compost. Thank you guys for being here. XHDO is developing a business proposal for Corpus Christi in the surrounding coastal bend. It's a privately funded project. The initial discussion they have stated that a seawater desalination plant would produce approximately 150 million gallons a day. The proposed plant will include a dedicated natural gas power generation. It's off-the-g grid power. They do not plan to use electrical power. And that's how they would operate their seawater reverse osmosis equipment. Axe H2O is currently evaluating two potential site locations. I know one of the locations that they have told us is at or near the Barney Davis site. They have also told us that the discharge would be offshore into the Gulf and that's the overview of the proposal.

Uh the request here today is to get guidance from council as to whether staff should evaluate a forthcoming proposal as prepared by act H2O. To date, a proposal has not been furnished. City staff has has met with uh we had a meet recent meeting with them a couple of weeks ago and these details were presented but the city has not received a proposal. We are simply asking for council to provide a recommendation as to whether city staff should evaluate a forthcoming proposal. With that I will stand by for any questions.

Councilman Kinchu. Thank you. Um Nick, um it's is it is it 150 MGDs or is it up to 150 MGDs? Uh the plan that we were uh when discussing it with them, they said 150 million gallons a day. Okay. Is there a time frame on that? So we did ask that question. The the answer was was provided and again the representatives are here. They can they can answer that as well. But it's it's 2 years from the from once financial backing is in place and they have reached 30% design. Gotcha.

So two years from those two key components. Can we ask them questions? You I think that's up to the mayor. Yeah. Yes. Gentlemen. Oh, who would like to come up?

Good afternoon. And I'm uh John Olsen, Corpus Christi. I'm the chairman of the board for Axe H2O. I'm also here representing uh AX2 H2O with uh our CEO uh Matt Burgerer as well as our chief technology officer, Chiago Compost. Who's the who's the general? I heard I heard you. General Burgerer and and I both retired uh Air Force major generals. Thank you for your service.

We're also Thank you. You're welcome. And uh you're worth it. And we're here largely uh profering what we believe is an important solution for not only the city but also the region. And that is we are we are asking the council for one thing and one thing only and that's to consider and negotiate a timely uh choice for a 30-year water offtake agreement. And largely it it involves no public funds, no debt, no uh no bond rating issues, no no uh covenant exposures, no taxpayer risks, no operating expenses. Uh this is uh this is absolutely a private venture and we believe that as we talk about the reliable future for the city of Corpus Christi, it's very important. We have some slides in front of you. They're also available uh for the the public. We did submit these on Friday and and and this morning um uh or yesterday morning, Monday morning as well. They're available on axeh2.com. Um but as we look at those on on page one, it's it's really about a reliable water future. The the key motion before you as a city council and as the mayor on chart two are to authorize negotiations for a 30-year offtake agreement. Again, as I mentioned, no upfront reservation fee, no uh no other uh requirements upfront. 50 to 150 million gallons per day. We're offering First Choice to the city of Corpus Corpus Christi, its residents, and the communities that it serves. This is about a municipal priority in a time of emergency because we believe residential water should have the first priority. Emergencies have already been declared 5 days ago. Uh the Newasis County Board unanimously uh declared a a water emergency as well as a continued

litany of of of other challenging uh declarations. This finance is indeed and I would like to clarify uh our project is 24 months from the time that we secure offtake agreements which allow us to fully fund with private funding this project. We already have a 210 plus% demand signal from all customers that we've spoken with. We intend to do one initial 150 million gallon per day uh target plan. As I mentioned, we're we're we're a Texas corporation, Axe H2O, specifically stood up and focused on delivering a solution for the the Texas coastal bend area. General Burgerer is not just a distinguished uh military leader who's who's who's executed these operations with $176 billion budget, but he's also a proven uh industry leader. The same I have a PhD in industrial and systems engineering, five engineering degrees, and a long uh career in both industry and government executing the very same. And we have Chago Campos with more than 25 years of experience uh total 20 years in chemical prochemical pharmaceuticals. So that's the people. What we're offering is this very simple plan. Four elements make it really uh differentiated. One a standalone dedicated 90 megawatt clean quiet standalone modular natural gas powered power plant. That's how we keep the costs low. It's matched ideally to the very power intensive seawater reverse osmosis desalination. The second part is exactly the water 150 million gallon per day seawater reverse osmosis water plant. It's droughtproof proven technology with the best designs and capabilities and experience with those companies in the world. But it's

actually built right here. It is sustained, supported, and operated right here in America. Right here in Texas. The next differentiator why our costs are so incredibly low are critical materials recovery. We can recover with our critical partner element 3, lithium, magnesium, strontium, broomemide, and salt. And finally, we underpin all of this with physical AI development and operationally optimized AI throughout in a command center view for the best-in-class, most advanced plant in not just the United States, but the world. So on the next page, chart five, our business approach is quite simple. We have the plant, we have the four elements. We underpin our private financing so the city doesn't have to. can treat it solely as a capital operating expense, not a debt expense, not a bond issue. We do that underwritten by these offtake agreements, both municipal and industrial. And when we do that, we collateralize this investment with the plants themselves, both water and power. It's really simple. And given the internal rate of return and the vital demand for the most important resource, because human beings can live without water for about 72 hours. This is why we've had such strong demand. So, as we look at that, we're offering water at $6.50 per thousand gallons. We believe we're the lowest volume, fastest to start and flow water in 24 months, the lowest cost, and the most reliable at 99.49%. Plus, the best environmental seawater reverse osmosis solution in the United States. So as we look at the next chart, it's not just the water, it's that critical materials recovery. It's also leveraging the AI optimization throughout something that we're partnered with the world leaders in

outcome. Uh already doing the world's largest water project in in in in existence. As we look at the next chart on chart seven, that dedicated power plant is a modular, proven, deployable system. It's clean, it's quiet, it's available, and it's proven. And availability is crucial. As we know the AI and data center demand, we already have agreements in place and letters of intent. So we can deploy this with wartime responsive emergency response capability. Already it's being done in Ukraine. Already it's being done around the world. This is a critical enabler for us. As we look at the next chart, it's really about potential sighting. We got two viable locations. We know that we can service the whole Texas coast bend, the areas, the communities as well as all the citizens and the corporations. As we look at chart nine, those potential site locations are the existing Barney Davis plant or the land immediately adjacent to it. Both on the inter coastal, both in the green zones, both able to be fasttracked. Next chart on chart 10, you see a closeup. What we are able to do is leverage your existing incredible connection capability with the the the city distribution and tie-ins. We don't need the water or pardon me, we don't need the power. This is URKT independent. So, it gives security, it gives stability, and it gives affordability and it's ideally matched over a 30 plus year lifetime. Now, you might ask, well, how do we go so fast? Well, already we have activated authorities, proven precedented and accelerated timelines from federal, state, and local capabilities. We've got details on all of that. But the emergency authorities are already active. The precedents already exist. Some of which we can leverage fast 4041 and the harbor island precedent. But what our makes our project different is

that we have all of these amalgamated and where we're located is with deep water inflow and outflow 3 miles offshore. It's the most responsible and responsive environmental solution of them all. And we can leverage everything that has been expended by the city in terms of financial engineering and financial engineering work in support of those other projects. uh particularly the inflow and outflow uh for for our project benefit. But in addition, we also have two other options that are suggested to us and recommended by the governor's team. And that is a Corpus Christi designation of Corpus Christi as a defense-based development authority, which would allow us to leverage the unique powers and capabilities as a political subdivision with specialized powers to take advantage of the fact that we have uh Corpus Christi Army Depot and Corpus Christi Naval Air Station, the two largest uh employers in the region. By partnering in those there's both financial and legal and operational benefits and those are extraordinary. The president exists. There's two in in in San Antonio at Port of San Antonio and Brook City Base and one in Beville at uh Chase Field. The second option, which is the final chart, is we've already had high level discussions and know there's existing future demand since we're talking a 30-year trajectory to build or to satiate 75 million gallons per day demand from both Austin and San Antonio. Uh those together would comprise an entire 150 million gallon plant capacity by themselves. Considering this in colllocating for speed, scale and superior efficiency, we could almost get a twofur here. There's an extraordinary benefit to the sighting capabilities to the legislative and and and other uh environmental and policy approvals as we've already mentioned. And so that's a something both of those

last two options would require uh city uh city council action. But again, I bring it back to why we're here. We have a privately funded water infrastructure project designed to secure Corpus Christiey's growth not just now but 30 years and more into the future using proven technology with zero taxpayer burden. We deliver that in a timely and objective fashion and we stand at a crossroads right now. We think with private capital and proven technology we can secure our future generations, our children and our grandchildren. And so, uh, this gives us the the capability to solve our problems with Texas solving Texas opportunities. Thank you very much. We appreciate any questions you may have

on on the water price. It's showing 650 per thousand. Is that a guaranteed price right now? It is a guaranteed price right now. And that is what we're doing the offtake agreements. It does include annual uh escalations at the uh consumer price index, the CPI, uh which is a baseline uh for for the state and federal government.

Got it. Nick, how much is the Inner Harbor project costing us per thousand? uh Camille Terrace, assistant director CCW. Um currently by estimate is 990 without CPI. So that's the difference. It's CPI will drive that 650 up over the years. 990 is because you're still going to have operational CPI increases, but the debt, which is the bulk of the cost, stays the same in perpetuity until the debt is paid off.

Got it. And then if we wanted, just as a clarification, our CPI is only for the annual price index. Of course, it consumes natural gas uh as as as a as a power plant for standalone. That is the lowest cost over all trajectory models that we've seen. Got it. And so say for example, we don't want 150, we just want 50 MGDs. Will you provide that?

Yeah, absolutely. Uh I appreciate your question. Uh it it is it is quite simply the the council's choice to choose between 50 or 150. And what this allows you to do is take the first choice. We're offering it to the people, to the citizens, and to the community with no reservation cost. So this is just a 30-year commitment. In so doing, you then secure and guarantee that. What we will do then is we'll go to all the other demand customers that we've talked to and we'll secure additional reservations for the offtake agreements with those when we reach 100% of that 150 million gallons per day offtake. We will then take those those offtake agreements and we'll go immediately get which we've already had negotiations and discussions on the financial and we'll execute. So, it's offtake agreements. Corpus Christi is first, then we get the debt financing, then it's 24 months to flow water. How long do you think that will take to get the financing and everything taken care of?

I think it will be very uh effective and timely uh period. We've already had the discussions. We've already got a couple of interested parties. One that's given us a commitment uh that's pending all these other conditionals. Got it. And then um power is going to be with um um what was your how did you get your power

power is power the provider is going to be RSSE America using Caterpillar energy. It's uh de detailed in length on our on our website. We also include extensive we believe as you do in public uh truth trust and transparency and timeliness. So we put everything as downloadable documents available uh for radical transparency on the website. It includes all the potential and proposed partners. Again built in America, designed in America, operated, sustained and this presents great opportunity for jobs in the local area. Uh because both sites are nearly colllocated. Got it. And then um

Peter, what do you think about our demand of of water? You think we're going to need a lot of water in the next 5 years? Yeah, we're we're um we're about to hire a consultant to help us answer that question. But uh today, um the drought of record is causing us to need 70 million gallons of water. Yeah. Just to keep us whole. So, uh, there there are there are, uh, customers that still want more water. We just met with a company on Monday. Uh, so, um, right now we do 130 million in in the in the peak summer. Yeah.

And so, but our western reservoirs comprise 70 million of that, which are down to 8%. So, at a minimum, we need 70 million. That's what city council has approved recently. Uh, in groundwater and effluent reuse, 76 million, right, in those groundwater projects. So, uh, we'll know an answer soon, but, um, we're I'm we're kind of estimating that we need at least twice the 130 million in case something happens to some of those base supplies. Yeah. Like there's an issue with the Mary Rose pipeline or the reservoirs go dry again. I feel like we need we need to make sure we're secure our water to bring business to to Corpus Christie and surrounding areas.

I mean, just just today I heard that city of of Cinten, who's suing us, is going to do a data center. That's the whole reason, you know. So, uh, they say they're protecting their residents, but they're protecting their data center. Um, so it's just, um, I like your project. I'm going to I'm going to, you know, ask Peter for for recommendation on this. Um, and, uh, we'll go from there. Thank you. Thank you very much, Councilman. Counciloman Compos. Uh, thank you, Mayor. Um, I I was trying to find out a little bit more information on your company. How how long have y'all been around?

Yes, thank you very much. Uh, Councilwoman uh Compost, we incorporated as a Texas CC Corporation in March of 2026. This is a company developed and brought together solely for this purpose. In fact, uh, as as as you're well aware of, General Ber and I are both retired major major generals out of the Air Force. Instead of golfing, we want to solve uh, the water crisis with the solutions. This is uh an example of our service to the nation and this is service to the community right here at home. We've been a part of multiple wars. I'm a veteran of five wars and and one thing that we've learned is is how to rapidly deploy and successfully uh accomplish the mission. And that is exactly how we're viewing this. This is this is a short, mid, and long-term crisis. And so we did incorporate solely for that. I've been a CEO of multiple companies, chairman of the board for multiples, and and uh I I I think we're ideally suited to lead this, but more importantly, it's not about us. It's about the team and the capabilities that we're bringing. And and Chago Compost here uh is is is is the rainman of water uh of of water development. He is encyclopedic and he is absolutely an asset to our team. he is uh at the core of our work but but we partner in a design build to operate paradigm. So we're taking the best companies for each of these sectors and we're bringing them together. So this is not a new company. This is a deeply experienced proven leadership company focused with a brand new business entity to drive a long-term solution.

Okay. Um, you know, typically whenever we have proposals, uh, come to council, typically, uh, the staff will make sure they vet, you know, the companies that are coming before us. Typically, um, they ask for previous experience, previous projects that have, you know, that have been accomplished. I'm not sure if that has been done particular project, right? Yes. Thanks, Councilwoman. That hasn't been uh sufficiently done.

Uh we had a one-hour meeting or maybe two, not maybe, but we had two one-hour meetings with the with the Ax H2O folks. Uh they also though met with some council members and so u so some of the council members uh and Ax H2O wanted us to present this today. Uh so that's why it's here. Generally, uh a business entity will come just to the city manager's team. Okay. Okay. So there was a little bit of uh uh cart before the horse type thing. So we we agreed with the council to bring it forward at least so the full council could see it. Okay. And then we could get direction from the full council if we

Well, that's what I was wondering. How did it how did it get how did they end up getting here to council first? only because you know we all I think uh have from time to time uh you know different projects come up and say like mine particular was the solar uh floating panels that never materialized but it was something that was during you know that water um workshop that we had as to other different projects but again um I mean it sounds great but I I think you've you've heard like the other projects that have been presented to us that sound great. As a matter of fact, we put $2.7 million on that other project that doesn't look like it's going to happen, but um I mean again, it sounds wonderful, but it's sort of like too good to be true. Um so, and again um I I see that his last name is Compos. I just want to reassure the public there is no relation. We're not related at all. So, uh,

see the go. Yeah. No, I can see the resemblance of white hair, but that's it. That's where we go.

So, but I mean, um, I I, you know, will be open and and listen to what um, you know, the others have to say, but, you know, I just would have liked to have heard more or had a little bit more time to prepare before just you coming right now. And I'm trying to to see and and read and all this at the same time. So, it just seems kind of I I mean, I know we're in a in a very uh precarious, you know, situation where we need water, but we also need to be vigilant as to, you know, what projects are coming up and and are we doing our our proper vetting. So, that's where I'm at.

Yes, Councilwoman uh Compost. And and as a matter of fact, we met uh for one hour and 15 minutes a month and a half ago. We sent uh our our preliminary package to all the council members emails as publicly uh provided by the city. We did meet last week for an hour and uh 10 minutes and those were very constructive discussions. We've also offered multiple meetings uh to which we've had uh some some excellent discussions over multi-hour periods. But that's indeed exactly why we've put all this information publicly available. I think you will find that we have more information publicly available with more level of detail. Uh and that's underpinned by thousands of pages and uh and and and and legions of documents. So I think radical transparency is fundamentally important. But there's one thing that is a temporal urgency here and that is uh time is not our friend. So this isn't a distraction. We view this as absolutely a a direct solution. We think it can be additive to anything you may also have or quite frankly we think in a relativistic sense you'll find it comparative uh a superior uh superior solution but that's for you to decide and everyone to look at. We just put the facts out there for absolute comparative analysis. Well, one thing that did stand out um as I was doing my research is that uh the three mile out into the Gulf of Mexico um I think originally it had been stated that it would be at least 8 miles out into the Gulf of Mexico for the discharge, but ma'am under your plan it shows three miles.

It it is an 8.31 mile total planned uh pipeline. 5.31 of that is from the plant on shore underneath the uh the inner coastal all the way out to the beach. It's three miles offshore which is the absolute ideal location uh for uh for all the environmental and all the other operational issues. So that's there was never any confusion. It's just a matter of how the facts are are outlined. Total 8.31. Uh I would like uh Mr. campost to also say uh some of the benefits of that 3 miles offshore. I think that will be really helpful when we talk about it from an environmental from a fisheries from an operational perspective and why this location doesn't mix with any tidal inflow at the ship channel doesn't have any anchorage issues doesn't have any adjacent pipeline issues. These are wonderful elements. Go ahead.

Very that's right. So there's actually a wonderful study produced in 2018 by the Texas Park and Wildlife after the Texas Water Development Board requested that actually shows the green zones and all the wildlife that we have in the coastal areas. So given the study that was already made, they already made a lot of this evaluation. We also use a lot of the information from other projects that are all on the same location uh generally all governed by the Galveston uh uh uh maritime uh authority

and uh we from what we're seeing where intake and the outflow of the water will have minimal interference with any of the wildlife that has already been validated. Um and and that's probably the best place uh that we found for this for the uh for the inflow. Okay. Well, and and you're right. I mean I of all the locations for uh a seawater desalination as a matter of fact that's what I've always heard that the that area where you're looking at near the Barney Davis would be you know the best location if if we were going to go forward with the desalination

yeah on the website so the the study produced in 2018 is actually fantastic. So, we actually have a link on our website. If you go, you can like straight uh click into it and it shows very clearly where the green zones are where it was pre-seelected by the uh Texas Park and Wildlife for the intake and discharge of a disselination plant. Okay. But I know that y'all just started I mean just March, right? Or no, you're

No, I I've actually been working this for 18 months uh here in in in Corpus Christi. However, um we've seen an incredible uh amalgam of information flow in lots of dynamics, good and bad. I think we're all a party to those. So, I've been working this for 18 months. And what we decided to do is to bring this together and incorporate because we we saw this as the most obvious and and viable and executable decision. And so, uh we've invested that. I I think uh we'll stand before you and say that this is a this is a a passion project for all of us. It's mission focused and missiondriven. But what one other thing that sets us apart, I don't think this is at all a negative. It's a positive. I'm a co-founder of the first chief data of of an agentic AI company. I'm the first chief data and AI officer of the air and space force. I'm deeply uh skilled in that area. and Matt Burer uh is the chief operating officer of of of an agentic AI company and together we're leveraging physical artificial intelligence and all the tool sets the worldclass tools that are available. So we have a force multiplier. It is absolutely driven by deeply experienced personnel, but this allows us to have an army of of of of support to make sure we get it right and consider all the very topics that you addressed. So, this is this is the way that successful businesses compete and win in uh in the modern paradigm and we think we can leverage that benefit for the city of Corpus Christi and the surrounding communities for the next 30 years. Well, it's we'll see how it it it pans out, but um I know that as as far as like we just had earlier, you know, we had the young fisherman uh fisher uh the kids. Um and that's one thing that I know that

area and all of our area care very deeply about is making sure that we keep our our coastal clean and free and and what have you. But anyway, I'll let the rest of the people um ask their questions. Thank you, Councilwoman Compos. I'm sorry, uh, Paxton.

It's a common name today, I guess. Um, thank you, gentlemen, for your presentation. Um, I, for one, I appreciate being on the rising wave of being modern and being able to find solutions that make sense. I mean, there's so many industries and practices that we've been able to look at in the last five years and say, how do we just do this smarter? And so, I appreciate that type of technology. Um, Peter, if I'm understanding our memo, we're looking for possible consent to hear further business plan opportunities with this company. Is that what the direction or the question is today?

Yeah, the question uh that we're posing to the council is, does the majority of the council want the city staff to evaluate a business proposal that they'll bring us eventually? So, today's question is evaluating a proposal, right? Yeah. We're not we're not even to the point of evaluating a contract. It's just that we need a rail business proposal, but we want to make sure the the majority of the council wants us to do that. Okay. So, um, is there is there a way to get Thank you, gentlemen, for this propo for this presentation. There's a lot of good information in it. Is there a way to get this to um where we can where the viewership could access it um like right now or later?

It just in general as part of maybe the packet or something. Yeah, we could put we can attach it to this agenda item and then they can see it. This isn't this is not in our packet. This is not in your packet. No, we did submit it on Friday afternoon and we did submit it on Monday morning and we did offer to uh have it put on today. Uh we have put it publicly available on our website. Out of an abundance of respect for you as the council, we wanted you to have the luxury and liberty to review it ahead of time and to have it in your hands. And so we'll put it on. We think that would be helpful, General. Yeah, we we'll put it on the website with this item. I appreciate that for the record. Yeah,

I understand water is something that's very fluid and so we get our presentations quite quite rapidly. They change quickly and and I appreciate that we've been able to to deal with that. Um, my understanding is we actually met with CPS recently and their interest is first and foremost to be cooperative and work with the city on that facility to potentially transform it into a del marine del. But they're also very interested in looking at opportunities for P3s, PUAs, things like that that this could potentially align with. Yeah. Did you say Axe H2O met with CBS? No, no, no. We did.

We did. Yes, we I did. And um and um I think Friday ago, last Friday, two Fridays ago, but yes, the uh Rudy Garza, the CEO of CPS Energy, uh confirm that that entity uh is willing to work with us on a business model at the Barney Davis plant site and they're very interested in P3P. They're interested, right? More so, we've been talking more so about the new tool, the PUA, but also the P3, something that they'll be willing to entertain. So a business model like this could actually fit that interest potentially. Yeah. Right. Okay.

So I think for me I will continue to advocate for capitalizing on the Barney Davis facility. There's so much infrastructure already in place. I know Peter we've talked about taking the existing permits and seeing how we can begin to work with state partners potentially transforming those things like that because it's it's already it's not starting from nothing. there's stuff there and that puts us ahead and right now what we're trying to do is get water and get it quickly. And so I think that I think that Barney Davis is an ideal site to continue to pursue and I think evaluating a proposal um to me makes sense. It's just evaluating a proposal, right?

So thank you. Thank you, gentlemen. Thank you. Um, you said your company started in March. March of 2026. It was incorporated in the state of Texas. Correct. Okay. And um I'm I'm a little perplexed with with how this is all happening. I appreciate the question and then the presentation because that should have been scheduled, a presentation. I don't think it's it's it's right for you all to stand here and answer a question with a presentation that's not fair to you. All of this, you're not recommending it.

Not very. We had a conversation about this and and my my point here is a few things that I think we all rely on you Peter to say this is something that must move forward and needs to be needs to move forward in order for the council to consider seriously. Um you all are trying to get us give us all this information at once. I think you only met with certain council members. you didn't meet with several others. I I'm sure that's hard to, you know, rally together to to make that happen. Um, but you said you've been working here for 18 months on this. Um, I have not met with you. I I know you did, you know, call the office. Um, but in 18 months, I would have made that time. Do you all live here? Are you from here?

I'm a Corpus Christi resident. I made an appointment with you. Wonder. I would very much look forward to speaking with you and anyone. We think this is vitally important. So we welcome this as a collaborative discussion. Absolutely. But I I do think one thing is important to clarify.

We we believe and and there's there there's there's a nuance here. We're merely seeking to see whether the city is interested in an offtake agreement, right? first right of appro of of of a refusal that is fundamentally important and and and it's a it's a business decision for the city and it's an opportunity to believe is is is right for the moment and that's why the sense of urgency and and I think um city manager Zenown and and and Mr. Nicholas Wkelman have been uh important engages and they are your staff members who are who are focused on this effort. we are willing to work any forward collaborative.

Sir, I I completely I don't mean to interrupt you. I completely understand that and I agree. Typically everything you're talking about is done before you get here so that we don't get this and I know you know it's not on you in this moment. I think Councilwoman Compos made some very good points. Um, you know, the the other thing is we have a desalination plant that we are going to vote on on June the 2nd

to take to 60%. That's that's a 10-year plan. Uh, we have anou with CPS synergy and and that is a whole another project up to 100 MGD and I'm really directing this to you. And so I'm I'm again a little perplexed with We need a third one or you got is there are you saying replace something? I mean what because again Peter I think as as the CEO you either need to tell us here consider this in what manner or do you have their business model their financial model all of the things that you would need in order to advise us because we rely on you as councilwoman Paxton said uh or was it Kento

about your recommendation it weighs in we haven't made a recommendation It's not typical that you always recommend, right? Yeah. So, this is on an agenda, right? Without a recommendation or explanation of how does this fit into the current plan because right now we have very real projects that are, you know, right? There's four del projects. I just need clarity.

Yeah. Yeah. Yeah. So, we said in the beginning, so there's um so this company or Ax H2O um scheduled an appointment with Nick and I. I don't know what happened first or second, but um also scheduled appointments with some council members and so some of the council members wanted to present wanted the full council to hear this proposal. Uh we uh I know their business proposal needs a lot of work. as an example, they don't have a site under contract or a site in control. Uh they have uh no timeline for funding. Uh they have no customers based on what Nick and I can tell, they have no experience in water delivery. Uh there's no number on the total capex, right? But uh some council members and I we got to be I have to be responsive to all council members wanted the full council to hear this. So we put it on the agenda to do that. And so this it was and they they this was not to get a presentation from them. That's why we didn't include it. Uh but rather it's to give a general overview and then see if the council wants us in the future to look at their business proposal which they still have to develop. Um so uh we know water projects there's a lot of water projects that have been brought to my attention to the council's attention either in a meeting format or right here at the deis puronics as an example. So, uh, this one's a little unusual, which is we're not we don't have a recommendation on the business proposal because we really don't have one. Rather, the question for the council is, do you want us to look at their business proposal when it comes in because we don't have it right now. Um, so that's that's the that's the issue, mayor, on this one.

And typically that happens before typically. And and you're putting it you're you're putting this on on us now to say well I'm not putting it on you. I was asked in a moment in a moment's time. This is the first time I most of these council right I'd like to correct that statement. At least from my perspective we're not putting anything on the council. The council asked for the full some council members asked can the full council hear this? And as the city manager I said yes we can. So, it's on the agenda today to to generally hear about it and um and see what the full council wants because I know a few council members like the proposal, but I don't know if it's five people on the council. I know we don't have a business proposal to review. So, we're not going to review anything until

So, when will you The business proposal is an offtake agreement where you get to choose at $6.50

per thousand gallons whether you want to reserve 50 to 150 million gallons. It's a privately funded enterprise with worldclass best providers. So we do have the world's number one uh two and three providers. We have deep experience. My PhD is in industrial and systems engineering and we've done this in public and private enterprises. There is never going to be a business proposal for a cityf funded project. It's privately funded which is the beauty because the city this costs no money and it is probably one of the most fundamentally solid and simple and clean approaches. We're just offering it as a solution and that's why it's a little different than perhaps any of the other projects that you may have considered to date.

Thank you. You were going to say I was just going to say we we just differ with the general's opinion. We need more detail, right? Like a budget, like a capital expenditure budget. uh the the the the detail and experience in delivering water quality water projects. But um you can see there's passion in the project and they they seem to have um they they they believe in what they're talking about. Uh we we just don't have enough business material to to tell the council. That's why I don't have a recommendation. Uh but I need the council be to I need the majority of the council to tell us to do look at the business proposal when it comes in. So, so again this is to go where build desalination where

one of two viable excellent sites either the Barney M Davis site or the land adjacent immediately adjacent to that both on the inter coastal and you've spoken to Rudy Garza then we have had discussions and preliminary analysis for all those we have been also General when was that general pardon when did you talk to Rudy Garza

we went and visited CPS we've had interrup derogatories with you and city officials talking about proposals for Barney M. Davis. You have been the one who has engaged with CPS. We are willing to consider and support that as one of two viable areas. We would welcome a collaborative partnership so that you may negotiations should be going on beforehand, not right here. That that's what I said. But but I guess General, the question was did you speak with Rudy Garza? You have we have not you have not spoken to I'm going to because we don't okay I'm I'm going to leave it at this though I understand now the concept

but that there's a procurement process for that we don't get to choose a person I mean an entity to go build there's a process for that but I'm going to let other people speak now Councilman uh Roy

um Peter this is kind of direct this is my my first couple questions are direct directed toward you. We know the protocol. We know the protocol here. I understand what you're saying and I understand that you're saying a few council members have asked you to come forward and present this. But in the past, and I'm going to use examples in the past when Dr. Mintz came forward and asked for the same thing, we limited him to three minutes at um public comment to try to talk about his idea until he had the opportunity to talk with staff. when he did speak with staff, unfortunately, it was identified that he wasn't at the place yet that he needed to be to take it forward and present to this council. Is that correct?

I thought he had a full presentation at one point when Councilman But you were saying that he didn't have engineers this and that. We evaluated that pro project, right? Right. But I think he had a chance to make a full presentation. Okay. So, he made a full presentation after going through staff and showing that he had that information. Then recently, we had Mr. David Ainsworth that had a project that he was gunho said it was the greatest thing in the world that it was going to save the world and um I'm paraphrasing and and so at the same time he came through had a conversation with you but really didn't come up here and get to this point because of protocol right

uh because there was no council members that asked me to put it on. Yeah. So now we're sitting here basically and whether I don't know the council members that ask I don't know how many council members asked to put this on but I do know that it's there's a reason we have protocol in place and I don't think I need to go over that right now and I think as as military officers I I am sure that you are more than in tuned and understand protocol and I and I'm sure that you also understand what it means in terms of usurping authority right not saying that you have but I think you've understand that terminology and understand what happens in a place because we run similar to um how the military runs in terms of how government interacts and what we do and there's appropriate place um I I am sure that in your past lives that there's a lot of great ideas out there and they don't make it to your level until they were vetted a lot you know further down the chain till they got to you is that that's correct

sir that's absolutely correct and we also are acutely familiar with the emergency conditions and situation that you're dealing with. So we we we have actually been very happy with the engagement.

I understand that. Yes, we are an emergency and and I understand yes and in combat situations I'm sure that those emergencies change a lot of different things. But what I'm talking about right now is this the protocol that we're in place and it does put this council at risk because you're asking us to make a decision today based on limited information. So I am very much for DESL. I actually I think that these are intelligent um individuals and I think that they probably have the capability based on their track record to be very successful. But this isn't the right time. And so now I'm forced to sit there and make a yes or a no vote based on something that shouldn't have come to me. So if I say no because I don't think it's the right time, but nothing on them, then that's going to cast a problem with me. If I go ahead and say yes, then I'm saying yes to a project that hasn't been vetted appropriately. And we actually said six or six or eight weeks ago as a council, you came to us and you talked about in terms of what you're under, the scrutiny that you guys are under and the time and you're going to have to work six days a week and you're going to work Saturdays. And we said at this point after we sat there and we looked at the CC Poly project and we said, "Okay, this is it. How many more projects can we see?" and we actually sat there as a council and we said we're not we're going to try not to look at any more projects and because we've got to be able to sit there and and put our time and efforts and you're shaking your head but go back and watch the tape. So with that being said now we're throwing that out and we're sitting here in a situation where now we have to make a decision and we have to weigh the fact that are we in enough of emergency? Can your staff vet this appropriately right now? Are you gonna have to hire another consultant to vet this?

There's nothing consultant for CC policy. Yeah. The answer is no, we can't. And there's nothing to vet right now. They they really don't have the a a robust business proposal to vet. Yeah. And and I hope realistically this council can do what it wants to do, but I hope at the end of the day that we table this and don't even put ourselves in a predicament to vote for this and go back and do it the right way. And if we don't, that's fine, too. That's all I have. Councilman uh Scott, so I guess my issue is do we have a do we have a I mean we don't have a vetting process in place, right? I mean we don't. Right. So so we've kind of opened ourselves up to three council. I think we do council.

By the way, thank you for your service. I'm so sorry. I should have started with that. Thank you very much. But so my my criticism what and my question is because here I got it here. You know, I would like you to engage with rain enforcement enhancement technologies who have success in cloud seating. I'd like you to engage with Genesis Systems who have a water cube technology they're very excited to share. I would like you to engage Puronics, David, who's done a number of presentations with us. I would like you to circle back around. Oh, I think it's iffy for repurposing wells in in Oasis County. all those. Remember we talked just a year ago somebody claimed he had wells and then I'd like us to engage in the Eagleford well supply Eagleford water supply wells and so and and I'm carrying a burden because I didn't I didn't I didn't reach out to you and say hey I want you to meet my you know my new best friends from I don't know uh rain enhancement technologies and and I lament that now because I think that's what I should have done and so my question to you is how How do we avoid looking like we're just looking at the next shiny object? And I know you guys don't think you're the Well, actually, I think you are think you are the next shiny object, but uh but how do we avoid that? How how can we communicate with ourselves and with the public that we, you know, on track, we have these projects, but we're also allowing other people because I I'm in no position today to vote to move forward on this because there's nothing there. I mean, I I mean, there's nothing there. And I feel like I've I feel like we are we are creating the perception that this this thing is is there and we can do it and we need to move forward with it when it when there's really nothing there to deliberate. So my question is, do you all have a plan to uh to to to evaluate projects as they

come through? And if and if you don't, are you going to? And if are if you're going to, when are you going to do it, right? So that we can funnel these in and not not have these really interesting conversations. By the way, you use fantastic words. I wrote several of them down today. Uh I think it's a beautiful presentation. But so Nick, Peter, talk to me about how we Yeah, Nick and we'll both talk to you. So we we have a vetting process and that's called Okay. Yeah. Right. Let's call Corpus Christie water staff members, myself and I said as I said twice now in this case the axe H2O u at the same time or about the same time went to several council members. Got it.

Okay. This is on the agenda because of a few council members requested it and if if I didn't if I hadn't put it on it would have been on through other means. Well, I'd prefer a three member memo. Okay. It could have been a three signature memo that that could we could have done that. But my my job is to work with all council members. Um and um and so uh that's it. So Nick, maybe talk a little bit more about the vetting process because we do have one as as an example. PRX Nick met with that owner and determined that this that similarly not much of a business process there. Uh we've we've heard uh we've heard interest from the uh new Asus wells that were used in the Eagleford Shell and we can go over all that. So uh but go ahead Nick talk about the vetting process.

Yes sir. Yeah just to add a little bit of uh more commentary and maybe maybe a little more uh depth to that. Of course, we all know that that we are looking at four addition four seawater desalination projects. We've got the inner harbor project. We're actively negotiating with Aquatech and CC Polymers and then we have uh our discussions with Barney Davis, the plant and CPS energy where we are working together. Additionally, the we have the NRA project at Harbor Island, which we have uh committed to and are supporting with our reservation agreement. So, one of the one of the big things uh when we vet any project is the ability for it to either have permits or to get permits. one of a couple of the uh uh entities that you named uh Councilman, we know that they they are working with TCQ to obtain uh approval on their process. We found that out when I talked to them. That would be Pure Onyx. Additionally, we know uh a couple of things. There are other uh seawater projects that have permits and that and some that have draft permits and another one has also has existing permits. So that's the biggest part where we have to vet and then we have to look we also have to look at how we get it into the system if we can get into the system how much water we need and the viability. The one thing we absolutely don't want to do is to um mislead any of our rateayers about projects and without definite timelines. In the past, I've absolutely tried to be as as uh provide as much information on delivery timelines as as possible. Uh back to the business proposal with Axe H2O, we really haven't seen uh definite

timelines. Uh we do know I I know verbally it was uh two years from 30% design and then it was two years from financial backing and 30% design and then um you know I've also heard 24 months from start of construction. So those are just all things that have to be ironed out so that we can come back and provide definite information. So, you're telling me we do have a vetting process and the conversation today circumvented the vetting process? I don't I would I would describe it that way, Councilman. There's two way three ways an item can get on the agenda. Sure. That is a city manager puts an item on, the mayor puts an item on,

or three council members can sign a memo and put something. Have you vetted this process? Have we? What? Have you all Sorry, the voice. Have you all vetted this project? Uh, we vetted what? No, we haven't vetted it. We had an we had a two two hours of briefing. Yeah, I get it. And it may be a great project, but my point is the normal process is goes through a vetting process. You look at um you know, is there a clear permitting process? Is there a business plan? What's the financing plan? What's the timeline? Um yeah, we haven't done that. Okay. Yeah.

Okay. Um Okay. I appreciate that. So, so my my my overall statement, uh, my last minute is that I'd say, "Hey, thank you for being here. Go talk to them, you know, and I'd also ask you to, you know, and I'll funnel these to you also. I I got I need to go do title work anyhow. These folks need to be visiting with you." I do have a couple of quick questions. Thanks, Nick. So, did you say that you would start construction when you got to 150 MGD or was two years? No, I I start just real quick just just I apologize. So you'd start at 50. If we reserve 50, you needed two years and then you'd start. No, I'm sorry. No, with 150 million gallon per day facility.

Yeah. When we have 150 million gallons allocated via signed offtake agreements for 30-year Got it. fixed price. Yep. That then allows us and the underwriters to fully fund $1.3 billion in private senior and mezzanine debt facility. Yeah.

Underwritten and collateralized by the power plants themselves. And so that is exactly how we go. We already have a 200 210% demand from all the people that we've talked to for 150 million gallons per day. That's why we're giving first right of first right of opportunity. And the motion before the council today is merely to do exactly and precisely as you said, that is to allow us via a vote of the city council of Corpus Christi to engage in further discussions and negotiations for it's not activity. No, that's not the motion, General. The motion's on the slide. It's not to negotiate anything. It's for us to review a a business proposal. So, go do it. So,

and it did change from Friday, but that's quite that's quite fine. We still is is is of concern to me that this is kind of a moving target. So you're telling me that when you get to 150 MGD reserved or committed contracted then it's two years to build. Yes. The the gate the gate is this. Let me say it exactly in my words. Be nice to me now. Use little words. It is to have one the offtake agreement signed and two the financing go. It's 24 months, but you're not gonna

I I'm I respect you, but you're not going to be able to go until you get 150 million gallons uh financially committed and then and then all the other things, right? If so, if we signed up for 50 today, which you that's that started the the two-year process or to get financing, or are you waiting till you get 150 million gallons? If you you said you're 210%, God bless you. knock yourself out.

If you took 50 or 75 million gallons by a future water offtake agreement, we would fill that up with the other community and other commercial demand and we would then initiate the project. Until then, there is zero risk, zero opportunity cost, zero upfront reservation fee. And that's how it is pretty vehemently with a lot of what you just said. I think there is a lot of community risk in participating in a project that may not occur. And I know you think it's a whole acting like there's no risk involved. And you, sir, I believe are wrong in that statement. But what you're telling me is if we put him for 50, you're still trying to get to 150 before you pull the trigger. My words, right? And that's okay. I hope you, in fact, I hope you get 150.

Doesn't have to be 150. From a financial perspective, we do have a number below 150. Okay, that is a that is a gate, but we we already see significant demand. In fact, that's why we had the proposal for a second plant. Okay. So, I'm not completely sure. I'm not completely sure I understood what you said, but I I heard you say it's 150. There's other other things I would tell. So, have you met with King Ranch on the property south of Marne Davis plant? We have had direct and ongoing discussions with the King Ranch leadership and corporate officers. Okay. Thank you. I'm out of time. Thank you, Mayor. Okay, Councilwoman Vaughn.

Mr. Son, I am so sorry that you have just been criticized today because I requested you put it on there and I am so glad I did because I think the public needs to see. It would not matter if we wrapped a del plan in a pretty package and presented to four of these up here. They'd vote no because it's not inner harbor. So ask yourself why it's been so consistent. I It's my turn on inner heart. But there is a reason. It's usually money. So think about that.

But I am sorry that you got in that position. I appreciate you standing firm even after you were criticized to do it. We have every right to put something on the on the council. Every one of us do. And all we have to do is ask. And that's what I did. You could have told me no, but you didn't. Thank you very much. I could have got it on with three signatures. By the way,

you got gentlemen, I think you've been disrespected up here up here. I think some of them need to go back and look at the um video and see how disrespectful they were, especially serving our country. Thank you so much. I think you deserve to be heard. Um I've got some questions. Y'all have a lot of work to do and I know that. And I think what we're asking today is just it's not going to be on the um city, it's going to be on y'all to get your stuff together and bring it back. And I think that's what we're asking today. Um have y'all had any support or commitment from federal or state? We have had both engagements at the federal and the state level to include uh direct engagements with the uh most directly the governor of governor Abbott uh his chief of staff and his water uh expert on the uh on on the staff and yes we've had engagement at both the federal agency level and the federal representatives to include congressmen and and senators plus uh federal ederal agency heads. Yes, is the comprehensive answer.

With the positions that you've held, I would think that you would have a lot of contacts. I do. Okay. Is the project if the project's built, who would um provide the technology and operate the facility?

Thank you for the question, ma'am. It is a design, build, operate paradigm. So that means we have a water provider, we have a power provider, we have a critical materials recovery provider and an AI and technology integration provider all umbrellaed underneath a CEO, a CTO, a COO and a CFO plus a normal corporate structure to execute this. But it's very lean and mean because no one wants to pay extra overhead, not a penny more for the for the do for the uh water that we deliver. And that's why we have solidly through detailed analysis very firm confidence and $6.50 per thousand gallons.

Okay. With margin. Okay. And what is the status of your site selection and ongoing negotiations? Have y'all?

It's a very delicate issue to talk in public. We would be happy to discuss that further in private because it deals with um with a a lot of nuanced uh business uh decisions from the respective parties that may be of consideration in that. Suffice it to say, we have two viable sites. They're colllocated almost Barney M Davis and the land immediately adjacent. and that is uh they're both in the green zone. They're both able to connect into the existing city infrastructure which is the water manes, the pumps, the the the piping or they may also have also opportunities for additional uh plant sites at one of them. So, two plants uh only one of the sites can handle two plants and they also could have uh opportunities for direct connect.

Okay. What about permits? Permitting I'll let Chago come. So we have two excellent pathways. One that has already been decided and we have the president is fast 41. That's a federal pathway that's already approved. It took us six to eight months. We can follow in the same footsteps. It's the same uh approval agencies pretty much same everything. We have a second one that's the one we discussed that the site locations we're proposing are in the green zone. So that has a pre-approved pre-selected pathway for deselination systems. At the very least six to eight months, we know that it's a fact. It's given uh and we may be able to expedite that using the green zones as defined by the state legislation. Okay. See if I got any others.

Oh, what were you going to do with the brine? We have a paradigm and I'm glad you asked because our paradigm is unique among any that we know particularly in the United States and world and that is we are doing deep water intake and outflow. We already talked about how that's the best environmentally, but why that's even better is because the to get 150 million gallons per day of uh in in loose terms, you need 338 million gallons to suck in and you get 150 million gallons per day of seawater reverse osmosis um water. We then have an e-luent that will go out to the deep gulf and do the deep water mixing and it's a beautiful symbiotic environmentally approved and great solution. But we are also because we're the only element that has its own standalone micro grid power which is important for cyber security, physical security, national security because of this region being a huge oil and gas refining prochemical and plastics is vital for that. Not to mention the the bases. When we look at that, we have power generation that has heat and we can take that heat and we can heat the brine and we can recover with element 3, which is the not only the United States leader but the world leader in doing critical materials recovery. That's how I met the governor uh for a 4-hour period initially and where we talked this. This is an opportunity where we can take the most critical materials, ones that are onshored right here from our own water that we're processing regardless. We pull those out and so those aren't going back into the ocean that they already were in. We can get uh for example our through that cycling one ton of lithium

for lithium carbonate per day out of this plant facility. Others like magnesium, strontium, broomemide. Let me tell you why strontium is important. Strontium nitrate is important for weapons. It's important for the propulsive and the and the explosive warheads. Right now, we've seen that we've used a tremendous amount of those. And guess where the preponderance of the global supply for those is? It's outside the United States. And so, this is a critical national security element. It not only enhances our environmental aspects, it improves our cost equation. Plus, it's a huge national security environment. So, it's no secret that we wear the flag. It's no secret that we hold this area to be critical in our overall nation security.

Have y'all participated in any of these in other countries?

Yes, we absolutely have. In fact, we are currently with outcome in the uh the the AI as I mentioned is already doing the largest water project in the world. It's creating a national command center and that is outside the United States. It's in partnership with Nadamco which is a Dutch company known for water as well as providing the largest water project in Ethiopia. Additionally, we are pulling the best the the unfortunately uh but it's also a a fact the best large bulk deselination providers the plants that are designed built and operated that are bigger than ours. all outside the United States because they've needed that for their societies to survive. That's why we're leveraging their technology, but we're doing American build, operate, support, sustain, all right here.

Can you give me the name of a project that I can look up? You can look up on our website with detailed. You don't even have to look it up. They're all laid out for you. And those three names that we're talking about are Aqua, the IDE, and Aiona. Those are the worldclass providers we are working across. We've engaged all three. Okay.

We we believe in optionality and we believe that the geostrategic opportunities in the world and the geostrategic challenges necessitate such. But we also believe that this needs to be onshored and that's why we're working with Congressman Cloud. We strongly endorse his initiative to create a US desalination center of excellence and allocate potentially he's spoken of $200 million. We said do that in Corpus Christi. Do it with our academia. do it with our institutions, do it with our plant, do it with our city and we think that would be a a winning combo. So we s we we have engaged and we support that and we think we can be the beacon for the world.

Okay, Mr. Cone, I want to thank you again for realizing you have nine people up here and that you listened. You could have easily told me no, but you didn't and I appreciate that.

Um I think it's worth looking at. To me, the staff doesn't have to do anything. It's on them. So, I'm going to make that motion that we do it and if they agree with it, no. But you should give them an opportunity. Why would you pass something up? It does sound too good to be true. But we don't know. And what we don't know, we don't know. So, just anyway, thank you. And Miss um Councilman Compost, as far as Harbor Island goes, I know a lot of disparaging things have been said by some up here against them. They were the the water board was out of money. They were number 13 on the deal and they gave 10 out. That is what happened. They are still looking for financing. They are still in the mix.

Councilman Roy. Peter, I I have another question. As far as we you you mentioned earlier there's certain ways to put things on an agenda, right? And of course, one of them is you can have three council members come forward. Um in the past when that's happened, you've actually listed those council members on the item. Is that correct? Yes, we have because the memo has them on there. In this particular case, did you have one council member? Did you have three council members or how many council members wanted this item on the agenda? Those at least three. And so, how come you didn't follow again protocol that says that you list those council members on there? Um, well, we do that if a memo has been submitted. You know, you what? We do that if a memo has been submitted.

Oh, but okay. So, we really don't have any way of knowing which whether you decided to put that on there where the mayor decided or three other council members without right and recently the mayor added why you did it before so we would kind of know the origin. Yeah. So recently the mayor put some items on the agenda and the mayor's name wasn't listed. Um but we we put the council members names when there's a three signature memo submitted and councilwoman vaugh admitted you know said it here that she wanted it on the I just want to understand again would have had three signatures on whether we're going to do that again or not. I just and as I've said in the beginning I I work with nine council members and I try to do what you all want me to do, you know.

Yeah. No, I've got a couple things I'm gonna ask. Okay. Yeah. Just come talk to me. we'll meet or but anyway um I just wanted to understand that uh for you gentlemen first of all I I want to tell you that

um it it's I appreciate the time that you spent briefing us here. I do think we're out of sequence as I mentioned before. Um I do believe that first of all you have to understand that I support um I I support water. I support diesel. I support the inner harbor if anybody's questioning that. But I do support the inner harbor. Um, we have to I mean I know we're short of water and I know that time is of the essence and I understand that. I apologize in terms of being caught in a crossfire here because we're just in my opinion again I feel that we're out of sequence. I do believe that based on your past, based on your bios, based on the things that you've presented here today that you probably have a darn good shot and a track record of being successful based on your prior projects. So, um I appreciate your service. I have followed many generals in my time frame and um it usually worked out pretty good. So, uh and that's even in combat. 18th Airborne Corps, you know, the General FA that led us, uh if he's listening, you know, he knows the good work that he's done. But, um again, we're just trying to figure out that what the protocol is. I I want to make sure. Have any of you and and it sounds like you're the expert. Have you built a delaw plant before?

Yes. My background is actually water treatment. So that was to be to be honest my first job out of engineering school. That's what we built in Brazil. I was in charge of a very large water treatment plant from surface water all the way to high purity for pharmaceuticals and high pressure power generation boilers. So that was in Brazil. That's true. Okay. Um good that's good to know those are see those are some of the things that if had we had that information it just makes it easier on us

and additionally remember we are having a design build operator so we are going to have a sole responsible element just like RSC America is going to do be responsible for the operation and design build of the entire plant that is absolutely what we are down selecting and so we have a strategic high competency area I also have deep experience in this arena both energy and and and water and critical materials resourcing as well and recovery as well as AI. So we're bringing all that together but each of our design build are the best in the world. 94 plants for one, 153 plants for another and the other one has just over 100. So yes, they've done the biggest and the best in the world.

Um thank you. One of the other things I I um I just want to clarify you need the city because you want us to be able to pledge whether we need 50 MGD or 100 MGD so that you can understand your model because let's just say hypothetically you've got San Antonio that wants 50 MGD and you've got us that wants 50. And if I understand what Councilman Scott was asking, you need basically 100 150 MGD before you before you pull the trigger, right? That's our maximum. We have a a number below that. But we have, as we mentioned, all the different communities, all the different corporations, all the different counties and entities. We have initially a 210% demand signal. So, we are offering it first because we respect what the the the the the uh Councilman Ku's discussions last week at this city council meeting. We hear loud and clear the critical importance of citizens. We're putting those first. This is first right. You get to reserve that before we solidify with anyone else. That's why the sense of urgency. And so we want to afford that because as residents and as Texans, that's the only right thing to do.

Okay. Um that that's kind of part of the thing because the the beauty behind this is if I understand that it we don't have to put up money. You're not asking us today to put up 2.7 billion excuse me. No public funds. Period. Dot. Right. So again, I I um thank you. Sorry that you're caught in the middle of the crosshairs here. I'm always interested in listening about water. We need water. And we need cheap water. And I I say cheap water, but if if you're saying what it is that you're delivering, that seems pretty economic to me as far as what the cost is. So um thanks again. Thanks for your presentation,

Councilman Bonetta.

Thank you, Mayor. Um, when did we start this conversation? Today. It's been going on a lot of pontification here. Uh, so my questions are for staff. Um, what is it? So you you guys have a seat right there in case somebody else calls you up. Thank you and and thank you for your service, gentlemen. I'm I'm really I'm really uh impressed uh by your resumes. Um um I I guess the whole thing and you know I want to apologize to you because and and and Nick and staff and because this is just an example of our dysfunction of where we put you in a predicament where you're deci you're instead of doing your job you're trying to keep your job because like you said you got nine bosses and inside you're trying to figure out okay you know who who's my master and and I think we should all understand that our master is a city the the community at Corpus Christie or the coastal bend and in this particular case the 500,000 residents that we preserve serve in addition to the impact that we have on the the economy not just to the local the state the the the the country and the world and uh so this is a very important decision and um I I'd like to visit with the proposed vendor um simply because and I don't want the questions answered here because I think it's inappropriate to ask uh because um I think it's inappropriate to ask. Now, often times I get asked I get called at least once a once a week. And usually the majority of the time it's basically they tell themselves no. And the reason being is because I tell them about I ask about things about you know what's your cost model? Okay, who's your customer? What is it? Are you going to be competitive? How what's your financing? And you know at that point and then I tell them about all the roadblocks that we've had throughout this whole time because the challenge

that we're facing now is that there's such a sense of urgency that we're just buying anything. It's a fire sale, you know, and and and it's very irresponsible. It's not good governance. And I think quite candidly putting something on the agenda prematurely because I mean you obviously make 400,000. I'm sure Buck makes upward of 200. you know, all these individuals here. I mean, we probably got over a million dollars in salaries watching this right now, and we're using very important time to be able to address this when it could have been addressed by one or two people making a couple hundred grand a year. And so, I I it just frustrates me. That's just not good governance. So, I I I have good I have questions and and I wouldn't mind meeting with you. I have questions regarding financing, regarding your customer base, regarding explanation on the power mining minerals. I've heard that before, but I've never seen it put to fruition. I mean, why couldn't you just mine the the the the brine that we're going to put aside, the discharge that we're going to have with the inner harbor, you know, um the distribution system. I have a lot of questions about distribution system uh north. Uh what is it distribution system throughout throughout the region? Uh what is it? I have questions about the discharge. I have questions about the volume. I have qu I have questions about

I'm sorry Mr. Mr. Hernandez, we can't speak out like that. The councilman is he's speaking and we can't have disruption.

So I and and you know what? I'll I'll I'll attest to that. I do. But this is the wrong forum and I think it's a disservice to you. I think you gentlemen are victims. You know what is it basically of a process that couldn't have been follow. I agree there's a sense of urgency and I've told individuals when there's a sense of urgency, hey go to industry. I mean, right now, if we should go into curtailment, I mean, you're you're you're looking at 20 25 million gallons that they're going to have to that they're going to have to to be able to continue to run. Either they cut that out or they're going to have to meet that delta and they're very anxious because they have billions billions invested in this community. So, I I think that's a good place to start and I' I've I've told that to several initiatives. I have questions with regard to permitting. I have questions with regard to uh what is it the the questions that you've raised with regard to uh the the Austin contacts the Washington contacts because we're engaged I'm engaged I'm engaged I'm engaged with industry you know so I I have a lot of questions and it's very hard to make some kind of decision unfortunately you're stuck on the same thing that the the and and I think I can't remember the gentleman's name that comes up public comment God bless him he's looking for a solution and this morning he talked to us about capturing fog, you know, and I think I think I think that's a valid deal. People have talked to me about atmospheric and I said, you know, what's what is it that what what is it that you're looking at? I mean, there's a ton of questions, but this is the wrong forum. And Peter, I'm sorry that we put you in that predicament. I think that you're the best person to get us through this. And I think all of this is just a per of the council dysfunction and then we are confusing the public and then we're confusing our bond holders. We just got downgraded yesterday because of our inability to make a decision. So, you know, anyway, so I'll if I get a chance, I'll speak again. Thank you,

Councilwoman Compos.

Thank you, Mayor. Well, I completely disagree with what you just said. Um, I think uh first of all that each one of us has every right to bring uh a proposal up here. And you're right, Peter, if it hadn't, it could have been brought up with the three signatures or with you or what have you, but uh again, you know, we have to remind the public that we are in a a water crisis and that that water crisis means that 30 MGD will have to come from industry. So, let's make sure that that message is clear. As far as vetting the project, I'm I'm going to have to say, yeah, you you you probably should have said, listen, this is would be the best thing for for us to do, council person, you know, whoever is bringing it up. You know, the proper thing is let me give me some time or, you know, to vet it. This is what I need to go through. But, you know, uh you've already said you're not recommending it. Um I respect that. I do respect though that that we are as council members have that opportunity to at least uh let the public know what kind of viable uh proposals are coming to us. Some of them are better than others. Um, I probably will not be supporting that, but I am I am um I'm grateful for the opportunity to hear what y'all had to say and what I've been what little I have been able to obtain in the last, you know, day or so. But it has been it it is very rushed and um um this is a a lot to to take and we have already you know like I've said before committed ourselves to a um some other projects that you know it's going to take a while. So again I I I respect you. I I appreciate what you've done but I do feel that Peter you could

have done a better job at vetting this project before it came. that that's just going to be my my two cents is that um we could have just said listen if we would have done this this this this but we'll put it on there because well we kind of did council for to the company but as I said earlier they approached other council members as well and so yeah but you know I mean like I said it really sounds really good but again you know you always think about is it too good to be true so Um, I'm I'm grateful and uh and I don't think it's I think it's important that we hear them even though uh I don't know how it's going to be voted upon, but I think it's it's valid.

Okay. Thank you, Councilwoman. Uh Councilman,

thank you, Mayor. Um first of all, once again, thank you for your services. Um I'm sorry you went through all this. Welcome to the city hall of Corpus Christi. Um, you know, I'm a betting man and I have a problem with gambling and uh I bet I bet on the underdogs all the time and you guys are the underdogs right now and I have 100% faith in you guys and whoever else wants to bring a project to Corpus Christie. You know, everything is on social media. You see them, you know, complain about this, complain about that, but the most thing they complain about is find us water. And that's what we're trying to do as a council is find us water, find the community water. And that's what we're doing. And you know, if I was in your shoes, I know for a fact that I won't be able to get a hold of him or city staff because it doesn't work like that in city hall, you know. And I and I hate to say this, but to get anything done, you have to know know someone to get it done. And it's and it's and it's it's sad. You know, if you would have went to one of the not all these council members, but some council members, you would have went to their their friends or a consultant, they would have got you in real quick, but cost money. You have to put up money. Tens of thousands of dollars. That's the truth. And you know, that's what we've been doing. Us five has been trying to fight the corruption here in Corpus Christie. Period. So, have you guys met with me?

No, sir. We we we we tried and we'd love to.

Okay. I just I just want to clear that out cuz, you know, I have not met with you guys, so I don't want somebody saying, "Well, y'all, you met with them and whatever conspiracy theories they want to do." Um, the reason I love your project is because, and I'm sure there's other people with the same kind of project wants to come to Corpus Christi. I mean, everybody wants to come to Corpus Christie because water is a new gold, right? And so, what I love about your project is that the rateayers and the taxpayers not paying nothing. Second, you have a three mile mile pipeline going to to the Gulf of Mexico. Okay. That's what everybody's been complaining about. We, you know, in the inner harbor projects, pipe it out, pipe it out, pipe it out. Okay. Do I think it's going to cost $1.3 billion for your project? Probably not. It's going to be more than that. But that's your problem, not my problem. That's your money and that's what you got to mess with and deal with. And whatever you put on the contract, $6.50. Hey, you got to deliver, you know? I mean, that's just the bottom line. Um, back to the credit deal. You know, our credit rating has gone down. It really has. But now we're at the average what the community's credit is. It's about 680, 690, 700. Hey, if you got 850, great. I'm I'm I'm proud of you guys, you know. But, uh, we don't have bad credit. They're going to still loan us money. We might might pay a little extra, but we pay extra for everything else. I mean, we don't mind paying extra for everything else. But it disturbs me that they get upset because we want to bring water projects to the council. And maybe you guys not ready yet. And I understand. But to to get into city hall, you might have to knock on the door of a council member and be like, "Hey, can you help us with this?" And that's what I want to do. I want to help small businesses. I want to help people who want to do business in Corpus Christi. and not just in water, but I've been talking about small businesses doing business with Corpus Christi and

they won't let them in because they're not a big big company or they just started or they had no experience. Well, they could start with the experience with the city of Corpus Christi, you know, and and just it just bothers me. But, you know, I'm going to continue to bring water projects. If someone calls me for a water project, I'm sorry, guys, but I'm going to bring it. And if Peter doesn't want to put it on the agenda, well, I get three centers to put it on because I want to hear them out. We need water. We need to grow our businesses in Corpus Christie. I want more people to come to Corpus Christie, more businesses. And we need all the water we can get, you know, and and and I I wish you guys well. I I hope you guys would come back, you know, and and and do what you got to go do, whatever the case is. But I just um it's disappointing. It really is what I heard today. And um you know, I I just uh I think I think uh no water project's a bad project. I think um I think we should hear it and and I and and a matter of fact, I think I think the community wants to hear it in open session. There's hundreds of people watching right now that's never watched it before. Last year on YouTube, it was maybe 50 people. Now you have hundreds cuz they want to know what's going on with the water. And we're going to tell them and I'm going to continue telling them. And you know, some people might not like it. I don't care. Thanks,

Councilwoman Von. Mr. Cone, did you say you would not recommend them going back and working out something and coming back to the staff? No, that's what I that's what we if the council wants us to. We don't have any we they need to develop more of a business. I agree. So, if they want to do that and if the council wants us to do that when it's ready to look at, uh, then we would do that. You didn't recommend not doing it. You said if you had the support up here, you would recommend. Correct. Right. Yeah. I just wanted to clarify that. Yeah. Right. we need.

Um, and just so you know, rolling a fire sale is whenever you want to pay $1.5 billion to Kiwit or more. And don't ask a whole lot of questions. It's just about money. Uh, they don't care if the citizens have to pay that. Um, I I am not asking anyone to vote to do this. I am asking them to vote to let them go back and bring you a good project. That's what I'm asking. And in I can't imagine anybody up here would be so close-minded that you would not want to hear that. They sound great. I don't know if it's all true. I don't know. I hope it is. I have confidence in who they are and they've talked to state and federal. So what do we lose by supporting it? What do we lose? What are you scared of? The project's going to be really, really good. That's all I'm asking. And I'm going to make a motion to determine if the city staff is to evaluate a business proposal for future del water supplies developed by axe H2O.

When did I make it? You made a motion. There was a motion on the floor. I don't remember making it. You did, ma'am. And Miss Paxton seconded the motion. I don't remember making it. You did it. And she seconded it. Sorry. Okay. You did it twice. I must have been mad when I made it. All right. Councilman Hernandez.

Okay. I I wanted to kind of address a few things here. Um, you know, the main reason why this came up this way and why projects are being brought to by council members is because in the previous six years prior to this council from 2019 to 2024, we had had a singular focus on del inner harbor without we had other projects come and they were just sumearily dismissed. And I understand the majority at the time was uh had a cult-like following of this particular project in the inner harbor to the detriment of a city. We put so much effort into that that we allowed ourselves to go into a situation where we are going to be without water and have to do curtailment because of that singular focus. So there's a trust issue between council and staff

and so we're bringing projects forward. As a matter of fact, this council and I have to appreciate Councilwoman Vaughn for for pushing the Evangeline project because it had been it had died three four times prior to her being on council. You know, so you know, we have we have secured more water in this council than the than the previous three councils. So, I want to say for us to bring stuff to to to staff, for us to bring stuff to council to be discussed, it's because we want to make sure that we have water for this city so we don't put the residents and industry in a situation where we're in now. I want to be very clear about that. Now, being a former naval officer, I'm very keen I'm keenly aware of what it takes to make flag. I think it's what a half a percent of officers in any military make flag officer. Is that correct?

There are boats. Yes, sir. And it's even more so in the Air Force because they're a little topheavy in terms of officers.

Too many pilots, I think. Just an inter inner service rivalry there, right? U so I'm keenly aware of that and what it takes to be that position. So, I am tremendously respectful of you of your guys' accomplishments and I looked it up. I read those accomplishments. So, it is it is truly impressive just from from my own personal uh understanding of it. Regardless of what you hear here, you you guys have done your personal track record is impressive and I don't know if you'd be here without that. Um, so I want to say that I'm going to support this because I, you know, what we're trying to do is is bring stuff forward. I don't know if it'll it'll work. There's a lot of questions about it. Uh, I would have preferred to have a site under contract before coming to us, but that's I mean that's okay. I know I know we had that discussion, but um, just to answer those questions. Uh, now I'll I'll I'll I'll let it go at that, but I will be supporting this this this U motion.

Councilman Scott.

Yeah. I don't I don't know what I mean. Did I I look through my notes. I say I don't like you guys. I'm I'm just want to make sure. Yeah. No. So, I think this is the cart before the horse and I'll stand by that criticism and I'll stand by it every day. I think you guys should have gone through a process. It should have been evaluated. We should have something we can talk about. I think there's opportunity. If you can sell the the the minerals, I think that 650 probably works. And I think there's and there's a business model that makes it work. I'm not a big fan of a take or pay contract from most expensive water. I think that gives us that limits our ability to to move. You know, if the lakes do fill up, we kind of like to use that water first as opposed to 650 or And you said it's a CPI. Is that just on the the the opex or is it the CP? You said your general business model has a

$6.50 per thousand gallons in the CPI. Is the cost accretive? It's an it's it's a it's a large scale macro application of CPI. It's simple. Is it on everything? On the price. That's all that's all you're paying is 650. It'll go maybe to if it's if it's 2.5% it's 650 plus a 2.5% escalation over a 30-year period that gets to be what do you think 15 17 any project that you have will have that's fine I appreciate inflation it's it's our society and our economy okay and so I think there's an opportunity if you if you do you have contracts in place now for the for the the the minerals probably not right

we do not yet have everything solidified it's it's chicken and the egg depend on the model. Oh, that's interesting. Okay. Yeah. Depend on that. The the cost savings on the cost savings is on the energy. That's where the savings is. Is there a So, it's better it you know, it sounds too good to be true until you do the analysis that is that is margin on critical materials recovery and its upside. And indeed, the reason why that does work is because we have our own power plant. And it's again, it's the heat. You don't have to pay for that heat. You get it from generating the power. That's what heats up the brine. It's a virtuous cycle. Got it. Any conversation about nuclear energy? Just curious. No, seriously. I mean, it's the whole world's going to the small box.

We are designing a 30-year natural gas because of the cheap, clean, abundant, lowcost nature of that. We love small modular reactors and nuclear, but that's that's future. That's not reliable, resilient. We're at 99.49 today, percent reliability. Thank you, Councilman Roy. Again, thank you. Mr. Roy has spoken twice. Oh. Oh, have I? Oh, you've spoken. Sorry. Okay. Thank you. Councilman Betta.

Um I I just want to clarify something. I mean, I think um when we were looking at deselination about 10 years ago, we've we've looked at probably 50 different locations. Um and we we've looked at um the challenge that with with regard to the evangelene and it still is is a cost. I mean, it's still expensive. It's still expensive and it's still it's not the ideal project. It's just we're in a desperate position. Um what is it? We u we we've looked at numerous projects at Nauseium and the challenge was is that every time we went back to every time this cult went back to this particular project um number one the favorable financing was available uh what is it? It had the support of obviously the governor, the the the the chairman of natural resources, I mean EPA, TCQ. So I I don't I don't want us to paint this facade that I mean, you know, and and groundwater is very very very obviously very volatile and it's going to change. So I'm just basically stating I just wanted to clear the air that uh because if it was a cult, I was a member of it or I am a member of it still. Uh what is it? But I I just I just I don't believe those statements. Yeah. I because I believe it's the only one that's fully permitted, you know. Now, I didn't want to get into that debate, but we're here.

And that's one reason why this is the circus, you know, and and you know, I I do have one thing and I I I can't tell you how much I respect you gentlemen, all of you. It's just that what we've done is that we put the cart before the horse and the ambition now is taken over and now it's added to once again it's put the sight on the dysfunction of the circus that is here and candidly probably ruins your credibility. Um, it could be, you know, because now it's like, "Oh, man. Did you go to Corpus?" I mean, I used to say that about I remember one time I did business in this uh in this county and they were told me, "Hey, man, you ever get a solicitation from them? Run and hide. Run and hide." You know, and I think

too important. Yeah. Well, no, no, no. I agree. All of them are important. I think all of them are important,

you know. I think all of them are important. And I think I've been I've been on this for eight years now. I I really would have appreciated the courtesy of a phone call, you know, and and I'm a little disappointed, but you know, whatever the situation may be. Um, but I think anytime I mean if it's a 30 I' I've been approached by several people that said, "Well, we just need to get we need to get we need to get the uh the agreement to get the 30-year takeer pay contract because that's what that that's what's needed to obtain financing, you know, and so I I understand that and that that's the thing you in order for you I mean there's an opportunity for several customers, but in order for any initiative to take to to to move forward, there's got to be an ability to pay it back. And if the city of Corpus Christie is willing to sign on the dotted line for a 30-year takeer or pay contract, well, then obviously that puts us in a very puts puts the the pro the developer in a a very very uh promising position because now they know that they've got a customer and and and that's a challenge everybody faces and I'd be happy to share that with you. You know, uh what is it? I'll pay for the coffee. You know, Councilman Canu can come and he can record the conversation. You know, what is it? I'd be happy to have him do that. And I'd be happy to to to have uh uh Council Member Vaughn come and so that way we can have a good dialogue as to where I' I' I'd really like See, right now, what's the item on the agenda? Can somebody read it for me, Peter?

It is a motion to determine if city staff is to evaluate a business proposal for the future desalination water supply. I I don't think you need that item on the agenda. You don't

I don't I don't think it's necessary. And you know, right now I'm a firm believer in vote on what's the agenda. Um I think it's premature. I think voting against it in theory is is is uh doesn't coincide with a practice of good governing. And so if if I vote against it, that's my problem. But I'm a firm believer and I'm I'm a student of good government. And so being a student of good government, I should I I just need to vote up or down on the agenda item of what's placed before me, you know. So, um I I I don't want to table. I've never really I I don't like tableling anything. I just think when it's come here to us, when it comes to us, we vote up or down. That's it. Or we can tell you it's not ready and you pull it. You know, you pull it. I mean, and right now, I think the challenge that we're faced is creating more confusion for the economy. We have a huge just like you said, we have a huge huge responsibility and now we bring this and it's like, well, there they go again. They're where they're they're the squirrels that they're looking for. They're looking for they see another nut. They see another net and they're starting to hide it. And it's that comical. Anyway, thank you.

As as a followup, we we hear Sir, I didn't direct my questions to you. It's okay. It's not necessary to answer. If you'd like to visit, we can. Um, yes, we would. Yeah, gladly. and and I would like to visit and I appreciate you here but the last time someone said sounds great up on this dis awarded $2.7 million of taxpayer dollars I didn't

to not everybody a majority did to to the NRA there was no business plan there was no financial everything that's missing not missing but you know what I mean and I agree with my colleagues that have spoken in an apologetic way to you because this is the cart before the horse and that lies over there. We rely on our city manager to say I've done my due diligence. If he's taken accountability of putting this item on the agenda because councilwoman vaugh said told him to

then then then then asked him told him whatever then it is our city manager who should bring forth an item that has everything in it because the other way to do it is to say I don't believe in this at this time councilwoman but there's a process for you to be able to place this item on an agenda and they're very familiar very famili familiar with that process. Uh very familiar and and so it this did a lot of damage to all of us. We appreciate what to Yes. to to this community because Yes, it did because there is confusion. There is people saying there's no process. There's Peter saying there is a vetting process there. You and I talked yesterday and I said, "Peter, we have to figure out a process. this isn't the time for this. And you agreed with me. We have to figure out a process by which nine people are sending in different projects. And I said, "You can't do it. You cannot sit here and vet every single process. It's got to be some sort of email system and someone vets it down the down the chain." Anyway, that's a side. I'm sorry, sir. I'm sorry, sir.

So, no. No, you don't. You had your time. So, $2.7 million and and there was not this is not again your the the the the route should have been you come to us with everything that that that is needed for us to make this Roland's right now. We have to vote water up or down. That's not fair here. and and the the people who are going to vote against this if they do it it looks like you don't want water. Of course we do. But but here's the thing. I hear water now. This and the city manager told me this isn't water now. And and that's okay. This is a longer term project water project.

We have water now that we can't get now. We have evangeline that didn't work out yet and we're praying for that to come on because it's critical to the, you know, curtailment or not. Um, and and and we have water wells that we're dealing with, groundwater wells that, you know, that's not working out. The plans don't always work out the way we think they are. We spent five years getting a permit or our permits, five years of the 10. So there there there's a lot that goes into this. We keep talking about this vetting pro or or the process by which this this happened here today and and it it doesn't have anything to do with you and I think uh Councilman Hernandez said, you know, your personal resumes are stellar. Yes, they are. But your personal resumes are not the ones that are going to move forward millions of dollars of tax of taxpayer dollars.

We are the leaders and we are profering that as a private entity. We we don't want to eliminate or compete with anything else. That's your call, ma'am. But what we want to do is deliver a solution. We run to with leadership emergencies and and we're offering you private capital, proven technology, rapid deployment. I completely understand that, sir, and we appreciate that. The way this came about and it's not your fault. That is what the problem is. And and you'll probably get it today, but I I am stating this because I I cannot support this today. I would love to meet with you. I did not get to meet with you either and and 18 months is a long time. So with the decision this big,

we incorporated as a company in March and we tried. Thank you, sir. Thank you,

Councilwoman Paxton. I'd like to start first by making a quick point to a couple of conversations that were said that we could not facilitate looking at any other additional projects on March 17th in an eightp person vote because there was one absent. This body gave direction to move forward to negotiate potential marine del at Barney Davis plant. This being a potential project for that I do believe qualifies under that. I don't believe that this is a standalone new project. So I wanted to throw that out there. Next I have the April 28th water supply projects update on page 17. Harbor Island seawater desalination project overview. There's four bullet points on here, including two about permits being received at and their standings. So, this doesn't tell me that the city of Corpus Christi wasted $2.7 million in a project that is now dead. Do we have a professional here that could possibly tell me I'm correct on that?

Uh, Nick can talk. Yeah, they they do have permits and there's a public hearing by TCQ on Right. Yeah, they TCQ has issued draft permits and that that's in process on on uh May 27th. There is a public meeting on their discharge permits. TCQ TCQ public meeting. Yeah, correct, Nick. That made me so excited to see those two bottom bullet points that you put on this and that tells me this project is not dead. So, I appreciate that, sir. So, with the project in front of us, um Mr. City Manager, yes, ma'am.

Question for you. with the way the agenda item is worded. And I and I'll tell you like any other project that's come to me, we are legislators. We are the connection between the government organization and the public.

We have all people all the time coming to us with projects. I for one I appreciate the process. I appreciate that people feel like they have an opportunity for the city and I appreciate that I have a professional organization structure that I can help facilitate. Hey, I had them reach out. Hey, I I'd like to hear it, but would you join? Can I meet with you so that we can hear the process? Because I understand full well that I cannot negotiate on behalf of this city and strike a deal. So, I bring you guys into the equation. So, I appreciate that you did that when I was able to hear this proposal and I appreciate that when I came to you and I said, "Great news. Thank you for the update on Barney Davis. What can we do now to move forward with this project as quickly as possible? Council has supported it unanimously. What do we need to do? We we have one proposal that might work. How quickly could we talk about that? How could we look at is this a viable option?

And you listen to that because this council eight one absence, so basically unanimous said to move forward on it, right?

That's what you were here for, Peter, and I appreciate that. We're here talking about this and gentlemen if I said it earlier I can't say it enough but thank you for your service and your your presentation today. We have asked this organization to move forward with a project that could secure sustainable drought proof water supply for the future. That's it. That's all this is. I believe that this is part of that process is, hey, could this fit that? Could this fit that outfit? Whether we take action on this today or not, we have moved forward on the Barney Davis location and this could very well be something that fits. They're interested in a P3. They're interested in a PUA. And whether or not we take action, Peter, that's my original question, is to process as we move forward with discussions with Barney Davis look at this a little further and come back now that we're all aware of it. It's not a table, it's a furthering of discussion. Is that a potential?

Yeah, it is. Uh there's going to be a process where we'll look for potential developers uh with CPS uh at the table um in in terms of real estate at least. And so that that process has to be developed still. It hasn't yet, but uh similar to what the uh Harbor Island did where they they asked for proposals, asked for proposals. We'll be doing that, I'm pretty sure, with with CPS Energy at Barney Davis. So, this is a candidate for that discussion.

It could be. Mhm. They could apply if if that's how the process goes. We again, we have to develop it and vet it with CPS Energy because they control it's their property. They own the land. But uh but that's the conceptual where's Nick at? Yeah, that's the con the concept that we've had which is that CPS would be uh the the land owner to either sell a lease and then there would be some type of a procurement process to get uh qualified applicants and then there'd be a vetting process and a selection. So that's all that would be forthcoming.

Okay. Well, I'm disappointed that there was some on this body that decided to drink to drag this discussion down into ugly politics because this city is tired of that. We need to find water. This is one opportunity for us to finally come together and say, "Hey, let's look at it." And we we don't have to agree. We do not all have to agree. What I seem to hear is that we want to hear a fleshed out proposal. You're right.

It should not be dragged down into this is a political maneuvering. It's water. We need water. And the fact that we continued to close doors on projects years prior, we're at the footsteps now where we we're having to have these discussions. We're not rushing and panic procuring. We're looking at viable products that could bring large amount of water online. So, did I did I miss here? Did you make a recommendation that we do not vote on this? No, I didn't say that. That's the recommendation is we need direction from the full council as to whether or not once XH2L submits a proposal that we spend time reviewing it. So,

that's what we're asking for. Okay. Do you feel like that that you got that direction that we're interested and we just need more info? Well, the council has to vote. I I I'm trying to say Yeah. So if the council there's two outcomes there. The council says yes staff once acts H2O develops a fleshed out business proposal spend time looking at it. That's one outcome. The other one is the council says there's not enough support to do that that that that work. Once H2O submits a proposal if the council says don't review it then we don't review it. So we're looking for direction from the council and this is not the

we have a motion and a second on the floor. He doesn't have a recommendation there. It the the memo states they're looking for direction, but the city manager is not recommending this item today. So, that said, no, that's what you recommending. There is a recommendation which is we need direction from the full council, right? Yeah. That's direction. That's not recommending the project, right? Because we don't we need more material on the project. You know what? In all of this, what do you feel about this project? I've said it for the last I don't know two hours here. So, you know, mayor, I've said it already. I'll say it again because I'll say it again. So, the proposal that we received so far lacks detail. Okay.

Right. There's not enough business uh data to make a recommendation to the council. You can leave it at that. Yeah. So, but as we also know that the AXH H2O went to city council members, which they have the right to do, and the council members have the right to bring things forward, and I have the duty to work for all nine council members, and I'm doing my job. Okay. So, at this point, I'm seeing does the council want us to look at this when it comes in. All right, that's it. Mark Scott's going to have a stack of uh projects for you. Good. All right, we have a motion in a second. Uh, please submit your Oh, shoot. Public. Yes. I'm sorry. Public hearing. I mean, public comment. Thank you for that. Appreciate it. Come on up.

Gentlemen, thank you for your service and uh appreciate it,

man. You know your business. I appreciate it. Uh, wow, that was a lot to digest. Uh, give me a second. Julian Hernandez, D3. I got to start with last week's agenda memorand uh memorandum. It was $3 million that you wanted to I guess that it passed for $3 million, not 2.7. And this was just to help with the Mary Rose pipeline or I guess to explore it. Uh, I didn't get to talk about it, but the contract was for 474,896,000, not to exceed 3 million. So, to me, just looking at that, there's 2.5 million that, man, we can run up change orders for $2.5 million and not do nothing. I'm going to get off of that horse and go back to this horse. Uh, I've heard Mr. Barera endorse um an engineering firm that's never built a fire department over an engineering firm that only builds fire departments. And he wants to sit there and say, you know, whatever he wants. I heard this council spend $4 million just on design building a road that Mr. Scott bicycles on. That's a dead end road. $4 million. And how much were we complaining about, Mayor? 2.7 and we spent $4 million on a not even built just designed the road because it wasn't a plan. Let me see what else. Um, oh, the experience to Kiwit. How much, Miss Von? Thank you for It was on my notes. It was on the top. How much did we give? Just throw it away to Keywit. And these guys are like, "No commitment."

Let me see what else. How much time? Oh, I got I got a minute left. Okay. Um, mayor, I've heard you say before it's just a proposal. Let's vote on it. Because I remember sitting here standing here saying this is how they set the table and you said it was just a proposal and now you're sitting there contradicting that sound like a two-way street to Brutus. Mr. Everett um it sounded like you came back from it a little bit. I knew two of the people here on this council were going to vote it down. Mr. Scott, I I figured you were going to be on the fence, but I actually thought, Mr. Everett, that you were going to be in support of ju and this is not even support of the project. This is just a support of of having them having this gentleman. Ah, you made your money today. You made your money today. I appreciate that. I mean, if if if this project goes through, what you made and saved the city in that project will go a long way.

Thank you, Mr. Hernandez.

Susie Salana, you know, you just made my point with my public comment. The division here, let me tell you that the most important thing you're supposed to be thinking about is water. Uh uh Councilman uh Compos I know she's going to vote against things as DAL. You're beating up on your employee because he's telling you that he needs direction and the direction is water. We need water. You they're not asking you to commit to a contract. They're asking you to just give him a chance to look at it. That's all simple. Very simple. Just let them look at it and you're opposing it. the cart before the horse. Let me tell you, if the cart's full of water, I want the cart. That simple. That very simple. I don't want to hear anything else except that we need water and that we need to look at every option that's available for us to get it. You're not offering them a contract. It's in simple terms. All they're asking is that you give them a chance to look at it and our city manager should have that opportunity. Don't come up with something else because if you vote against it, you're voting against the people.

Anyone else?

Jason Hail, Corpus Christie. Um, my recommendation would not to would to not have city staff spend more than an hour looking at this. If the proposer is serious about this project, then it should be considered um during the process with CPS when you're evaluating um developers who have submitted proposals. Um, and the reason I make that suggestion is because Barney Davis is an important project to a lot of people. Um, and I wouldn't want to jeopardize uh CPS's involvement in this. I think P3s and PUAs are worth looking at. And I think this project and location is too important to choose a private entity with no del or major water project delivery experience. you know, we need someone with a proven track record. Um, also, you know, it's like how much water do we need? Um, those four diesel plants that Nick mentioned, that's 140 million gallons a day. It's more than double our year of highest demand. If you add that, our year of highest demand is 120 million gallons a day basically. And, you know, 140 is that, but also we have an existing water supply that delivers that when there isn't a drought. So that would be more than doubling our water supply. And they're trying to sell 150 million gallons a day to who? We're the major regional water supplier. You know, uh Harbor Island, they had a hard time getting all theirs, uh numbers, you know, reservations. It's just it's just sounds so crazy. And we spent two hours talking about this. Um, our city staff works really hard and they've been working overtime for who knows how long, at least the past two years. So, um, just please be

considerate of our staff. Thanks. Thank you, Mr. Hail.

Robin Cox, District 3. And first, like everybody else, I want to thank them for their service. I have a son, like I said, that's a combat officer. And I know when my uncle came back from Vietnam, he said he had a hard time adjusting to civilian life because in the military, you listen to your commanders. You take what's what they have to say. I mean, these men, if they can provide and you know, I expected nothing less from Roland Betta to turn it down, but ever I expected more from you. And I know I know I but I think the people the people of the city are the ones that that are going to get this water. We deserve to hear the complete presentation that I know that they have prepared. There's a complete presentation. If we're saying, we already have Inner Harbor and we can stick with it. You know, that's like saying, you know, I'm engaged this guy that's cheating on me. I might as well stay with this guy when I got Prince Charming in the background waiting. We don't do that. We don't stay with the poop on our shoe just cuz we've got it there. We get a new pair of shoes. And we have a right as citizens to listen to this. We need water and we need it w water desperately. And if these men have come to us with an idea, they may just pack it up and leave. And instead of all of us getting houses in the Hill Country, maybe we should go to the RGV, they've already got it going on. So we need to we need to listen. And I'm I am for Del just not in the inner harbor where it's going to pollute the bay. These guys at a great a great decision. Let's go for it. And the five council members that are listening to listen to reason. I say let's hop on. It's a rare day when a lot of us when it's a very rare day when Miss Alani and I agree on something, but we agree on this. Let's get it going and move forward.

Statement of fact, Peter. So, this is replacing Inner Harbor. No. Oh my god. Peter. Well, I I need an answer because she people are talking as if this is a replacement. This is a longer lead item. If that this is the staff never said it's replacing Yeah. I'm sorry. We made no presentation about it replacing any project, right? Yeah. This is not replacing Inner Harbor, right? Thank you. Who was next?

Rachel Cabayto D1. It's nice to meet some of you for the first time uh that are actually concerned about costs all of a sudden and planning. It's weird. It's nice to meet you, mayor. So whenever the Swift loan was applied for and received in 2020, it was you guys were warned that it was too soon to get the Swift loan funding then for the Inner Harbor plant. Permits for the Inner Harbor plant haven't didn't get finalized until July of of last year. July of last year. So, I'm here to remind you guys of timelines that you're refusing or pretending not to know that you participated in. Like, it is I am as a community member, I have said this from the very beginning, most of us are not against desalination. We want it done properly. We don't want to have to pay for it because we don't need it. And we want the intake and discharge in the bay. We do not want to ruin our $1.5 billion tourism revenue here and why we haven't capitalized on tourism here in the last three decades. Yeah. So, let's see who actually is in favor of providing water today because we're all watching. Have the day you deserve. I think this is terrible. It's terrible process. Peter, you're responsible for strategy. I keep harping at that. The process should be go to Peter. Now, some of the reason that this is happening today is because there's opportunities that aren't being looked at by you and your team. I'm getting calls from contractors. I've been spending my time. I've got six. So that what they do, they go to the council and they try to work

this up. And this is why we're having this today. But I think we had this brought up the other day. Who's in charge of strategy? It's not the mayor. Peter, that's your thing. You should be doing costbenefit analysis, evaluating alternatives. People come to you and they look to you and you do the vetting.

That's right. And so I think both things are here that we should and people should be coming to you and get have a sense that you're open that you're vetting these things and not dropping them. So the contention is that we've been solely focused on inner harbor for a long time and we haven't played these other things out till we were in trouble. So I just encourage this is your thing to hold. That's the way this government's supposed to work. I believe and I think these people need to feel like it's not being some favoritism or something else. They need to see transparency costbenefit analysis. It's not well it's my opinion. It's your opinion. I'm tired of hearing opinions about what this is. I keep harping on the point we need numbers, finance numbers,

physics numbers. And these projects are voted because of this, not because Peter, you can't be tossing it back to them saying, "Well, it's up to them." And they say, "Well, it's up to you." You're the guy that's to lead the strategy. And I put that back in in your hands. I think that's the way this thing is supposed to work. Thank you.

Thank you, Mr. Burlesen. staff council Chris Queris County not represented by anybody on this dis. I whether the merits wind up proving themselves or not. Uh currently under the groundwater minimum project level 42 million gallons a day. Maximum on the plan projects are 85 million gallons a day. Where are we at on that? Hadn't worked out very well. The cost creep on it is tremendous. Uh it's all done under emergency procurement at three to five times the cost it would have been had it been planned. The cost is enormous. $6.50 per thousand. I'd like to have a comparison of what groundwater currently or with the addition of RORO brackish water ROROR will be for us. Thank you.

Thank you sir. Anyone else? Okay. We're going to close public comment on this and um we have a motion in a second on the floor. So, please submit your vote. Could you read the motion? Motion, please.

Yes. The motion is uh to a motion to determine if city staff is to evaluate a business proposal for future deselination water supply as developed by Axe H2O. Okay, the motion carries and we are in water mode. So, we're going to go right into this next item and then we'll break for lunch. A motion to determine if city staff is to evaluate a bi another business proposal for future brackish water supplies developed by 7C's water group

right after this we are

okay hello mayor and council Nick Wkelman chief operating officer Corpus Christi water before I have a short presentation but before I start I'd like to recommend members of the seven seas water group her who are here today. Henry Sharabi is here, Rosanna Ramirez, Casey Stinson, Mike Gibson, and Lisa Del Santo. And we appreciate them being here today. Let's get it done. Why two hours for approval?

Why waste two hours? Let's do it. I move for approval. You got a second. I'll second it. No, she seconded already. I'll yield. You can um Well, presentation is the same thing.

I mean, y'all already know this. So, I I I do have some questions on it. Um because I met with you all and and here we go again. And we're not going to carry this out again, but there was very little information on this. No one, you all didn't know where this was, the coordinates of the land, um, anything. I I I actually asked y'all, please find out. And you did. You got on the phone and you called and and again, I thought that was maybe other council me council members did know details of this. I didn't because I did not uh I did not meet with anybody here with this. Um I'd like to know about the project. I think all of us probably would. Whoever I don't know how much each person knows. So if you can give us an overview because what you all told me was you knew very very little. So this shouldn't take long.

Yes, mayor. I've got a one-page presentation

and and for the record, this is another item that the same process was done. A council member went to the city manager and he put it on the agenda. Well, I'm going to I'm going to make it a point because that's why we don't know anything and that's why they don't know a whole lot of information on this and that's why there is no recommendation for this and people should be y'all should have the council should be concerned with that. So go ahead. So the 7C's uh water group does have some experience in groundwater development and reverse o brackish groundwater reverse osmosis treatment. U the project that they have identified it would deliver a minimum of 10 million gallons a day. It's a groundwater project. The expectation is that it would go could go up to 20 million gallons a day. However, we do know that there's been no hydrogeeologic studies of the project site specific for this project. Another thing to consider, there are currently uh no permits in hand and CCW hasn't done the uh just as in the previous project, we haven't done any hydraulic analysis to understand how this water would be inputed into our distribution system. 7 C's is familiar. It's familiar with CCW and this council. Previously, the council authorized under anou to work with South Texas Water Authority who is in the process of developing a project with seven C's. The location of the brackish groundwater

project is in the in a large land area southeast or south of Corpus Christi. the project itself. Um we don't know exactly where the potential uh reverse osmosis plant would be and we certainly don't know how many wells may be required to develop that amount of water but that would be developed within after the uh hydrogeeologic analysis is complete. The staff is requesting that council provide direction to review a further forthcoming water supply business proposal as developed by the 7c's water group. And mayor and council, I stand by for questions, but as a reminder, the 7C's representatives are here as well.

Councilman Hernandez.

Okay. So, this is this is something I asked to be brought to council. It is something I brought to Peter and to Nick to review on a couple of occasions. There were certain things that needed to be in play. Um, and how this came about was uh my frustration with with South Texas Water Authority kind of dragging their feet and not to put any shade on them or anything like that. And so I asked um uh Mr. We uh the you know why don't we just do why don't we do something together directly with the city and there was some discussion about well we don't have any property that we can do this with and I said well have you talked to the Chapman ranch folks and his response was Chapman what uh and so I reached out to David Owen who uh you know raised his hand there who is kind of responsible or kind of the a guy in charge of the trust so to of Chapman Ranch and got them together. The what? And Chapman Ranch is huge. If you show the picture of Chapman Ranch, how many acres is that?

I Yeah, I don't know how many acres. Please, please come up, David.

Hello, council. I'm David Owen uh with the Chapman Ranch. I'm one of the managers, one of the owners of the ranch. Um the area in the map represents uh approximately four of our um uh family groups uh entities. I control one of them. Uh it's roughly 22,000 acres of surface. So, the amount of water that could be pulled out of that, as was stated by your staff member here, is has not been tested. Uh, we signed an agreement, I signed an agreement with, uh, 7C's water uh, group here um, just this last week to do the testing for that. Uh, that's going to happen here in the next uh, six months. So at that point we'll be able to know just how much of this property will be required to uh provide the 10 million gallons per day that uh is the kind of minimum amount that they're looking at providing to the to the city. Okay, David, thank you. I appreciate kind of confirming the size of Chapman Ranch, which is roughly equivalent to uh Welder Ranch in terms of the size of 22,000 acres. So, that is key because what we're talking about is we don't want to take out too much water per acre. Uh even though there's not a groundwater conservation district. And from that, I actually reached out to a few of the folks that were on the on the effort to create the groundwater conservation district. As a matter of fact, I reached out to Chris Chris Quayar. If you can confirm that uh as as well as Trey Cranford just to kind of run some of the traps for our staff. Also looked at where this would enter the our system. And on the south

side of Corpus Christie, we have a I want to say 7 thou 7,000 no 7 million gallon tank ground storage tank. Nick, can you confirm that? It's referred to as the Staples groundwater storage tank. It's 7 and a2 million gallons. 7 and a half million gallons. Yes, sir. And we have a pump station there as well. There is a pump station there currently and it serves the uh what we refer to as the south side of the city. Okay. So just trying to do as much as uh kind of the objections that you may have had uh was trying to you know kind of smooth those out and at every step of the way brought that information to both Nick and Peter. Is that correct?

That's correct Councilman. Yes, sir.

Okay. So, I wanted to make sure that, you know, we're looking for water to diversify our water supply. And I understand groundwater, some people think it's temporary, but there are 56 brackish water diesel plants throughout the state of Texas. And I understand, you know, and this has nothing to do with specifically on the on the seawater plant in the inner harbor. I know there were some uh thoughts that that was being conflated, but it is not. This is a standalone project that would allow us to diversify our water supply. So, with that, I'm going to withdraw my second on Councilman B's motion and make a substitute um motion. Uh, I want a motion to authorize city staff to negotiate with 7C's water group to develop a water sales agreement to purchase desalinate desalinated brackish water produced and treated by 7C's from the Chapman Ranch area

as opposed to what was the I know but what is the main Oh, the the Say it again. The one they used. Read the motion again. Okay. It's replacing the uh the existing motion uh with motion to authorize city staff to negotiate with 7C's water group to develop a water sales agreement to purchase desalinated brackish water produced and treated by 7C's from the Chapman Ranch area. So I woke up

that is an actual so that's a negotiation as opposed to Peter are you where are you on that because now this is saying we are going to go negotiate where the item as written says we don't have enough information and that's what you all had said Nick correct that you're nodding correct we haven't been presented with so why can't we go negotiate and keep this as is and get to that stage. You could um just maybe some differences between this and the prior project as seven C's as if I right No, I'm I'm not I don't need the differences. I'm talking about the language.

Okay, let me answer the question this way without talking about differences then. We know seven C's. Uh we've been working with them for over I've been seven years I think, right? But most recently the past two years uh they have a proven plant in Alice, Texas that has a 2 million gallon capacity and um uh the site is is a different location than the north um let's see northwest where we're wells. So it is it's a different side of Newasis County. Uh but similar to any other project, this the onus will be on the on the seven C's to prove up a good project and we know we know what our price points are for brackish water, what we produce and what we what we um would buy from someone else like the Evangeline project. Uh so the onus is all on them. So this just takes it one more step from what our recommendation was uh which was to get a business proposal. So, this would be get a business proposal and and work.

Yeah. Like we've been doing with seven C's under theou with South Texas Water Authority, but it's just for the council and the community. It's it's not that this is a for sure project because there's a lot of unknowns that we just talked about. The water has to be tested. The distribution system has to be mapped out. We're Pardon me. I'm sorry to interrupt and I understand and I'm not necessarily against the project, right? But you're we all put on the agenda. you know what's on here and and Councilman is changing it to go negotiate an agreement. So, we're skipping a step, right?

We're saying on the agenda today, it says go get some more detail. Bring back way more because y'all are saying we don't have enough information for recommendation and then we go to the negotiating. Councilman Hernandez is saying let's go to the negotiation now without the detail we need. Well, we would get the detail through the negotiating, right? But then we are obligated to negotiate. What if the detail doesn't work? Then we'll come back and tell council it's not working out and we should probably stop working on it.

Well, then let's amend that to say if it doesn't because what he is saying, Peter, is say we're going to negotiate a purchase agreement for water. You're saying I'm sorry, Councilwoman, I'm I'm I'm not interrupting you. You're saying, excuse me, you're saying that if it doesn't come back to where you're going to recommend this, then we don't move forward. He's saying we are. So he Yes, he is. He's saying we You're saying to move forward with a purchase agreement. That means you move forward with the purchase agreement. No, it's to negotiate a

Well, to negotiate, right? they the fact that you know that they still have to do work to for them to be negotiated within a contract is still required. It's just we are letting them do what they need to do without having to come back to council on multiple occasions and waste their time. So Okay. But I thought that's what this does here. No, the way Peter presented it. No, it doesn't. What does this what we are authorizing them to do is to evaluate the project and negotiate a contract if it's if it's viable. or giving them the opportunity to do that.

Well, then let's say that in the Wouldn't you agree to that? If you're telling us in this in this on this agenda item, a motion to determine if the city uh the city staff is to evaluate a business proposal, I agree with that and I get what you're saying. You're saying we'll negotiate at the same time. So, you do both them permission to negotiate. Mayor, I use the same language we that was uh used for the Aquitech agreement with uh CC Polymers. So it is no different from that language, Peter.

That's true. What the councilman just said is true. So the diff we put the the same recommendation because these as Councilman Hernandez says, uh he he he requested that this be on the agenda. So it's very similar to the other one. Um this one though is is different by those factors I talked about. We know seven C's. We've been working with them in one capacity or another for seven I have for seven years here in Corpus Christie, Texas. Uh most recently we looked at water supply projects, groundwater. They have a proven track record in Dallas, Texas. They have a 1 million gallon a day producing plant with another million coming on by July according to the city manager. And this is not binding us to anything. It's just saying that let's look at their business proposal when it comes in and council would be telling us take it one more step and negotiate a contract. If you think the business proposal is worth looking at, if the TDS is way off the charts and the the the the uh the distribution system connection is too expensive, then we may skip that step and just come back to council and say it's not working out. But on the on the flip side, if everything's going great, then we miss a step having to come back to council and we can enter into negotiations much like CC Polymers or

I just don't want to be bound to one one way or the other. What was that? I just don't want to be, you know, caught not being able to work, you know, one way or the other depending on what comes back. This whole thing is about not having work. We talked about what you just said, work with the council.

Yeah. Our job is to communicate with you. So, we'll as this as this develops, we're going to advise you either in a full open session or exact session just like we've been doing with Evangeline, right? But I this is this is a known company 7C's and they have a proven product right up the road in Dallas, Texas. The onus is going to be on them for price point for the rate payers. If this is too expensive, we're not going to recommend it. Council could overrule us, but so it's all on them. It's going to be all on 7c's. And in this case, we have been working with them. We have a city council approved to work with them within seven uh South Texas Water Authority. So, right, it's pretty much it's this is more consistent with the council's direction that we've been working on. Okay.

With seven C's, Council Roy.

Okay. Um, for the record, just we're comparing this is a lot different than the last group of I got to use the right word. Um, people that came forward and the presentation in that um And I so I want to make clear because there's earlier there's rumor I have not received any money. I didn't even meet I didn't have a chance to even meet with seven C's the last when they asked me to meet with them here recently. I've met with them in the past before. I'm familiar and watch what they have done in other areas and um so again this is a completely a different thing. I believe that um and I'm comfortable with going forward and looking at what you guys can do. I know you've delivered. Um I know in the past one of the things that we talked about is that the site selection and you knew that the solids were too high and or the arsenic level or whatever and you guys scrapped that that project. Um and so again, one of the things I've always said is that I am pro water. I am very much pro water. I am never going to look at turning something down. I I did not appreciate the process that we went through in this last one, but I ended up voting on it. And because we need water and we need as much water as that we can get. I don't believe that right now, if the price is right, I don't believe that there's too much water. I just don't because unfortunately we know right now that if the Merry Roads pipeline were to go down for some reason and we know that that's a vulnerability that we have but if it went down for some reason tomorrow we're in trouble and so we have to have as many resources as we can to be able to offset that risk. And that's what

it's been all about. And I know that I was upset about the process and I and but in this particular case, I know what these guys are in terms of capability and what they can deliver and the track record they have here locally. So with that, um, I'll be supporting this project. Councilman Scott. So Peter, I was in the back room. I apologize. Do you have a business proposal flushed out, vetted by No, we don't.

Okay. So here's where I'm at. I'll just cut to chase. I'm all in to evaluating a business proposal for f future brackish water supply as developed by 7C's water group. I will not support uh uh the negotiated I'm reading because I got a text I guess staff to negotiate an agreement. I think that lacks transparency and it takes two steps and I think if it's a good project you would come back and say hey world we've got this proposal we've evaluated it we like it we need permission to go negotiate an agreement. I think that's the proper way. I would support that, but I won't support I don't think it matters incidentally, but I won't support um the uh guilt council member Hernandez uh motion. Thanks. Yeah.

I'm sorry. Before you go on, can you repeat that motion again? Council, the amended motion. Oh, you want to repeat? Go ahead. So, it's motion to authorize city staff to negotiate with 7C's water group to develop a water sales agreement to purchase desalinated brackish water produced and treated by 7C's from the Chapman Ranch area. Okay. Thank you, Councilwoman Bond.

Well, negotiating is listening to each other. Even though you don't know everything, that's part of negotiating. And Peter and them have to say, "No, we're not going to do it." and I trust your staff to do that and to bring back a good result. Yes or no? Excuse me. But the other thing I was going to say is I agree with um Councilman Roy. We need water. And one of the need reason we need water is we've got to replace the water at the river that we keep forgetting about for those rural areas. That's an emergency and we've got to replace it and the sooner the better. Thank you,

Councilman Compos. Uh thank you, mayor. Okay, this this project is night for me night and day from the previous project that was presented. Um there's at least for me there seems to be a little bit more stability. Uh I'm familiar I'm more familiar with seven C's like you just said, but again there is something to be said about the vetting process. So we there is no business plan. Is that what you said? Right now they have a they have a general concept but uh the the the land was just placed under under contract or option with them. So they have to test the there need to be a water test.

Uh volumes need to be tested that we need to analyze how we would get it in the distribution system that price. So there's a general concept but uh but more business details are needed. Okay. But uh based on their track record as seven C's with That's why I mentioned I would support Hernandez's motion because they have a track record. We know them. We've been working with them for two years. Okay. That's what I thought. Okay. So um yeah, we've been working with them. Just Yeah. Just based on just um the information that that uh that we were just given. Again, I would like to have received a little bit more information a little earlier like we had said that we were going to do, but

uh here we are. you know, um I I will probably be supporting this. I think it is important that we try to get as much water as we can, you know, safely and environmentally safe. So, um and I and I think that it's something that I think we can get sooner than later than some of these other projects. So, that's just my opinion. So, let's hope that that comes to fruition. Thank you, Councilman. Councilman Betta.

Thank you. Um, you know, uh, I I obviously made the motion. I I support that. I I just don't know. I always feel uncomfortable when, uh, we move on something that is not on the agenda. You know, uh, Buck, um, I just feel it's not very transparent. It's a surprise. Surprise to all of us. And, um, I mean, I I that's the whole thing. I mean, all of a sudden, if if nobody's watching, they look at it and then they'll look come back and look at it later.

So, I think on this one, um, it's closely related, but it's more of, uh, direction than an, uh, an action. You're not approving the contract. It's just giving direction to the CM. So, so then it's not necessary. Is it necessary? Uh, no. It's not legally required. No. No, no. I mean, the the motion isn't necessary, right? It's not legally required.

Yeah. So, once again, the circus. Um, I mean, I like I said, I I I'll move forward with it just because the same thing. I'm willing to kick the tires, you know, and I mean, if it helps their financing, you know, it it, you know, it helps their financing, helps their board approve it,

so that way they can move forward with it. And they want an an area of good faith, I'm willing to do that. Reluctantly so, but I'm willing to do that. And, you know, it's just that um I I just that's the thing I said. It's just, okay, Captain Obvious, let's go ahead and move forward with what you're going to do, what you're recommending. And uh but I just want to make sure that it it doesn't one way or another. Right. Anyway, Councilman Paxton,

thank you, Nick. I'm sure you don't hear that enough. I'll say it again. Thank you, Nick. Thank you to the group that brought the presentation today and our representative from Chapman Ranch. Um, thank you, Peter, staff. We all acknowledge water top priority. So, um I appreciate the uh idea to take this from evaluating a proposal to to go ahead and and let's talk through um a contract that's not putting us in a position where we've approved anything. But it definitely allows staff to have that extra running room with council support to look at what we believe because of track records to be potentially a very viable water supply source. So, I appreciate everyone who helped us get to where we could have this discussion today. Um, uh, 10, 20 million gallons a day. That's very helpful. That would be very helpful for our supply. And so, thank you for getting it here. I clearly do support it. And I also, you know, whatever anybody can do to to help get that on as quick as possible. Thank you,

Councilman Kent. Thank you, Mayor. Um, can you guys find us more water? We're getting some more projects. Um, this council will love it. Trust me. Um, I think the problem is not you guys or the other the other um group of people. I think the problem is that some council members feel threatened with these projects and they don't want to kill the inner harbor project. Um, and for whatever reasons. That's my opinion. You're right. And so, um, why don't you tell Roland not to interrupt me like you like I interrupted you, mayor? I mean, that'd be be nice, you know.

Works both ways, you know. Um, this is why it's a circus, is our leadership. Exactly. Um, thank you, council. So, um, I support this this project. I haven't heard about it till today. Um, for the record, you guys haven't given me no money. Um, oh my gosh, are we going to

So, um, you know, I'm I'm supporting it and, uh, I'm hoping and praying that the test, um, well does good so we could get some water for our residents and for, um, our refineries and businesses here. Um um hopefully on a side note hopefully uh the ones that say they were anti- dal 5 or whatever we just voted voted for something a little while ago. So um and one abstained. Um so thank you. Yes. Thank you Councilman

Circus. Um not my monkey. Beck is a water sales agreement um a binding contract. A water sales agreement. Yes, it's a binding. It is a binding contract. Well, explain that. Here's my concern. Is is taxpayer dollars. So, if we are Miss Cabayetto, I'm going to ask you to please not disrupt.

No, no, no. Don't tell me to calm down, ma'am. I'm going to ask you to please. You just have the same courtesy as we do when you're here. Thank you. Thank you. Or else you don't need to be here if that's not what you want to be.

No, that's a warning. It's a warning. Um again, we have a track record right now and and I can you can understand that. Um we have um we have to make certain that there is a plan that there is a model that there is a recommendation or we're moving forward as we have with prior projects because someone sounds great at the podium and I'm not that's not against you all but that's my concern. People make comments about politics and use this dis as a political platform. That's not what this is. Is it dysfunctional? Absolutely. And I think every person up here knows why and they know that's that that's the case and it's very sad and and I apologize for that because everyone here has had to endure this just because of what's going on up here internally. Um, nonetheless, when it comes to what's important in their own way, everybody's trying to do what's best and you have nine different and I appreciate it whether I agree with one or the other or not. It it is whatever your perspective is. So what I'm saying in this moment is if this is a binding contract buck I I just need to know that because what should be behind a binding contract is not today right the information the

recommendation the the all of the model everything or or is it maybe maybe the ultimate the ultimate goal of negotiations is to reach a I'm sorry contract I said the ultimate goal of negotiations would be to reach a a contract. I know. But but is it binding? Like we can still if it doesn't make sense. This uh the item is not to approve a contract because we don't have one to approve binding. Is a water agreement binding? Yeah. If we bring one forward and the city council approves it and they approve it, then it's binding. But until the two parties approve it, it's not binding because there's no Right. So, right.

We have to one develop it, two, if it gets developed. If the business works out, bring it to council. Their board would have to approve it. Then it becomes binding. Okay. Yeah. You're not in your head. Yes, that's correct. Thank you, Councilman Hernandez.

Yes. I I wanted to give the opportunity for 7C's to kind of give their just a a quick brief comment. I know you're not prepared to give a presentation or anything like that. I just want to give you the opportunity to say a few words. Uh, also I wanted to state that, you know, this this was my commitment to find water, right? Not just just every opportunity that comes along that we that is viable because I don't bring every single project up, right? I get approached all the time with projects. I'm sure other council members do, too. But if it's not, you know, viable on the on the front end, like like uh Peter had said, this is a company that's been around for a while. They have local history here in Alice. They have they I believe they have a contract with South Texas Water Authority for their project as well. So it's not and they're here. They're local. They have local representation. There's it's not you know this is not something that's un unvetted right now. You know the fact that the property is 22,000 acres is you know that is under a sole you know family's control. not all the same family but uh you know that has this in place. This is an ideal situation you know and and groundwater is proven and especially since there's not a lot of a lot of things out there to begin with. There's not a, you know, there may be a few handful of of, you know, homes out there that have a have a small small well, but it's not like the situation we have up uh in the in in the just north of the Cal Allen area where there's lots of families that have uh homes and and wells that we may affect. This is a completely different situation. And like I said, I reached out to those folks and I have no intention of asking this to be uh put in the ASR. That would be disrespectful. Right. And there's plenty of property out there to to drill the wells needed. And so I'm I'm what I want to say is

this is a good thing. It's a good project. The good people uh all the way around from from Chapman Ranch, David Owen, I've known him a long time. The seven C's guys have been very consistent. We this this is a good thing and and you know, all we're asking is for the staff to go through the entire process and if they have a good deal, negotiate it and do it. So, if you want to have a few Okay. We have a uh Oh, I'm sorry. What are we doing? Yeah, if I was going to ask the seven C's guys to just give a little bit a few comments from what they do and and there but if you want to wait till public comment, that's fine. Well, did someone second your amendment? Yes. Okay.

And and it was a substitute motion,

right? You got that, Rebecca? Okay. So, I'm going to open public comment. Who would like to speak? Just come on. Come on up. Chris Quay in New County. Uh couple things. Number one, Councilman Hernandez did reach out to Trey and I. Um we are open to have discussions with anyone and we've had many of those uh conversations with council members with uh community leaders and with industry recently. We've had re industry reach out to us uh with proposed um um desires to possibly need to drill groundwater production wells and are interested in our engagement and our knowledge. Uh we bring certain aspects of groundwater conservation districts to these individuals and we engage with them. doesn't mean that we are supportive of all those actions, but we're open to have a conversation. Unfortunately, unlike the CCSRD that's appointed and is for what it is, right? Number two, the numbers I mentioned to you earlier, uh that was 42 million gallons a day and 85 million gallons a day on the max. That's only the three new aces well activities, the eastern, the western Edelle Foundation. When you look at Evangelene, when you look at South Texas Water Authority, uh when you look at Tesla, when you look at LI Ranch, that

increases to from a minimum of 42 to 60 and from a a maximum of 85 to 115 million gallons a day. currently on y'all's plans and the needs of those operators. Those are all within 15 mile radius of one another. The aquifer doesn't understand or have surface boundaries. So although I appreciate what Councilman Hernandez brought and trying to recommend spacing and impact, potential impact to other well users. Uh there's still the position that you are going over 1,400 times or p time times, excuse me, 1,400% greater than the modeled available groundwater in Newasis County. So, additionally, the other thing I'd like to bring up is when you add all these groundwater wells, like I said, you're in a 15 milei radius. And finally, why was South Texas Water Authority even created? History tells us a lot. Okay? because the pumping at the King Ranch and the Naval Station Kingsville reduced the water quality and that required the state to create the South Texas Water uh water authority in order to deliver treated water to those areas because the water wasn't consumable. Thank you.

Thank you, sir. Julian Hernandez, D3. Uh, first I want to apologize um for for when you call out my name when I was um being a little loud back there. Um, the major part of it was when Mr. Bedetta told those gentlemen to sit down. He didn't ask them to. you know, people that um I guess is a uh for anybody in general doesn't deserve that kind of mistreatment. Um those were his specific words, sit down, like a dog, those three gentlemen that were here proposing. Um and that's what really rubbed me the wrong way. He didn't ask. It wasn't, "Hey, can you please sit down? Can you please be quiet?" He says, "Sit down. I wasn't talking to you. These aren't directed towards you. These are directed towards city staff." And then he turned to them and looked at them and talked directly at them and then told them again, "You don't need to answer my questions." So again, I apologized because that's why I got upset and that's why I was loud in the back. Um, with that being said, uh, anything that Gil pulls puts forward, uh, I know he's he's vetted the math. He's done that already. U, that's I'm the new guy. that's just has been his track record. That's what I've seen. That's other people just bring a yes, no, yes ma'am, no sir. Um, but time and time again, he's looked at something. I I just the hearing what I heard is, you know, we have a pump station there. We have the pipelines there. They're right around the corner. It's all feasible with limited I mean, we're we're we're in what almost a billion dollars with

with with the brackish water over here. And this is to what I understand. Um I spoke last week um when my best friend came out uh his idea was to get attention was uh to say water for 3 minutes. I said Lefty it's probably not the best idea but uh I texted him when I was back there earlier. I was uh so upset not upset just aggravated. Uh, and today should have been the day after, uh, you know, if if we're going to let other people talk about nothing. I mean, hell, he can say water for three minutes and if y'all let him. Um, I think that's all I got. Oh, last thing. We were talking about it's always mentioned the taxpayer dollars and again um that deal that was put on the agenda last week uh for a year contract uh to do some improvements or do some uh exploratory on the Mary Rose pipeline uh not to exceed $3 million. Uh I couldn't understand that when are we going to turn it off for them to do that within a year's time frame. Thank you. Anyone else?

Okay, sir, you can come up if you'd wanted. You wanted to say some words. Um,

just very briefly, Madame Mayor, council members, city staff, Henry Sharby, I'm the CEO of 7C's Water Group. Uh, it's a pleasure to be here and uh, just to confirm of some of the things that were said, 7C's Water Group uh, owns and licensed the name Water as a service. So whatever we provide is at our dime until and unless we deliver water to the quantity and quality that we be contractually obligated to deliver. Obviously if the council so decides to move forward with this motion to negotiate, we would be honored to negotiate with city staff, but it of course would come back as was mentioned by the city manager to the city council and of course to our board to approve. Uh we have the land, we have the financing, Councilman Barrera, so we don't have to go out for that. Uh this is our business model. We uh own and or operate more than 220 plants and so we're very um delighted to go forward with you and Councilman Ku if we can find more water we will deliver it.

Thank you sir. I'm going to go ahead and close public comment. Um has anyone spoken to the King Ranch being this is the same aquifer? Gentlemen, anybody? No. Has anyone spoken to the King Ranch being that this is the same aquafer? I we'll have to ask the Chapman. Yeah, that's fine. And and David, it's okay. You don't have to. I mean, if if no one has spoken to the King Ranch, it's concern I have because it's the same aquifer. Just I just wanted to know. I just I just wanted to know. Pardon? I could say something. Sure. Yeah, Mr. Owen could answer that. You don't have to. Well,

yeah. Thank you for the question. Um, so the concern you you raised with the aquifer is one that I had as well. For the what? The aquafer. The aquifer. Yes.

Yes. Is one that I had as well because it's our property. It's been in my family for over a century. Uh we are good stewards of our our land. Uh we try to do, you know, things on the up and up. And one of my concerns has been with the impact this might have with our neighbors in including the King Ranch and the wells that are uh in service now for residents out there and such. And one of the reasons I uh went with seven C's is because they are going to a deeper aquifer than the surface. Yeah. the surface uh owners, our neighbors are drawing uh water from.

Plus, they have uh made a point to not draw that aquifer down to a point where wouldn't it be sustainable in a long term uh use? So, I think that addresses some of your concern about Thank you, David.

Well, thank you. Um, it does, but I think that's important to talk to them. And that brings me to my point. I know we have a motion in a second. We're going to we're going to vote. But, um, my my issue is the same. It's it's the way this was brought forth. Not y'all's fault. I think that all of this information should have already been handled and taken care of um, prior to and and I think that it raises serious issues for me around transparency. I know that's not uh your your necessarily your issue, but all of this should have been vetted. Um especially because the city manager put this on. It wasn't a three signature memo. We expect that with all the three signature memos we get, but uh this is this is something that's coming from staff. There's no recommendation. And I believe that when myself or the city manager puts something on an agenda, I don't believe it's the way it is. Everything is vetted. Everything is run through uh the proper channels and um this was a weird deal just like the last item. And it's very unfortunate and I apologize. Um but that's why I am not able to support it. Doesn't mean I can't. I think you have the votes to do it. Does it mean um I don't necessarily believe in it. Um, but I think that we're in positions where if if you're not going to make a deal on your land, if you don't have every tea crossed and every eye dotted, right? It's it it your land is generational and and as it should be and your name stands for something and and you're not going to jeopardize that. Well, we represent our constituents and I don't feel that I have enough information and that's not your fault. So, we have a motion and we have a second. Um, let's please submit our votes.

Okay, the motion carries. So, with that, the council pardon. You can tell Rebecca. Yeah, I just remember for the um I can't change it on here, but for the record, we'll record that in the minutes. Okay, so what we're going to do, thank you for your patience. Yeah, the council will go into executive session on item 26 per Texas government code sections 551.071 and 551.072. We will return. Let's

Okay, we're going to reconvene our meeting and pick up on section K, that's public hearings, item numbers 21 and 22. Item number 21 is a one reading emergency ordinance approving the 13th amendment to the tax increment reinvestment zone number three or tur's number three project and financing plan to create a program specific to the demolition of the 1914 Noasis county courthouse for total payments of $2 million to Noasis County as approved by the board of directors of reinvestment zone number three city of Corpus Christie Texas on May 5th 2026. Six.

Second. We have a motion in a second. I'm going to open public hearing. Is there anyone in the audience that would like Joshua? Anyone in the audience, Joshua, that would like to make public comment. Where's Julian?

Yeah. Where is Julian? Um, okay. There's no one. So, we will close public hearing. Please submit your vote. Okay, the motion carries and thank you. Our next item number 22 is a public hearing and ordinance ratifying the fiscal year 2026 annual action plan submitted to HUD on August 15, 2025 and approving the fiscal year 2026 AAP's substantial amendment number one accepting $160,98 of funding from the Edell Foundation for qualified programs. Awarding $20,000 to Rising Tides Ministries Safe at Home program. $20,000 to Rising Tide Ministries Wave AC Academy and $50,000 to Habitat for Humanity's critical repair program for the general fund, appropriating $160,98 in the general fund and amending the fiscal year 2026 operating budget.

You wait for the motion? We've got a motion in a second. Um, I'm going to open public hearing. Is there anyone in the audience, Joshua, who would like to make public comment? No. All right, we're going to close public hearing. Uh, councilwoman Paxton, did you have a comment? Councilwoman Paxton, I just wanted to say thank you very much, Jennifer, for helping with this item. I know seeing it for myself in black and white, I I had to like double and triple read the item because I was so excited. So, thank you for seeing this to completion today. Well, thanks for bringing it back up. and I wanted to make the motion but so in spirit you have the motion for me. Okay, please submit your vote.

Thank you Jennifer. Thank you. Okay, the motion carries. Uh section L, individual consideration items 23 and 24. Uh item number 23 is a res resolution amending uh financial budgetary policies adopted by resolution 033727 and providing financial policy direction on preparation of the fiscal year 2027 operating and capital budgets who is presenting on this Peter it should be Sergio and Michael there you do it. Okay.

Okay Mr. I just told him. This is a finance director, Sergio. God damn it, man. I saw this. I move for

I mean, yeah, because we all go council second already. We got to Yes. There we go. Okay. Okay, our finance director is here. Sergeio is going to present. Hi, Sergio.

Thank you, Mayor. Sergey of Yasan, director of finance and procurement. Now, the item before you is to amend the financial budgetary policies for fiscal year 26 27. Uh this year, we don't have a significant amount of changes to our financial budgetary policies. We do have some clean up in terminology and a change to a statement. Um so this the budgetary policies are reviewed annually prior to budget and it does prefer provide guidance on budget preparation. Uh so jumping into the first change here is section two and what we're doing here with section two the current verbiage in the budgetary policy in this section uses the word current revenues current expenditures and that terminology is really used in in governmental accounting which talks about current resources available for for available for spending. Uh we are proposing to amend that to recurring revenues and recurring expenditures which lines up more with budgetary verbiage. Uh recurring revenues is clear that these are ongoing revenue sources. Recurring expenditures is a clear indication of ongoing expenditures. Uh the next section we're proposing to amend is uh section 8. It's actually subsection three of section 8 and it's the very last statement within that um within that section. Uh the slide is not the best presentation here. Uh the way the section actually reads right now is the final two cents have not been approved by city council today and will not be recommended for the fiscal year 25206. Uh the finance department is proposing that we drop that last statement uh the last part of that statement and leaving the section to read as the final two cents have now been approved by city council today. Uh those are the only changes and uh we did meet and brief council members on the budgetary policies and we did receive some some

additional uh input from council. And so one of the uh some of the input we received was specifically for the last amendment that was on the slide here for section 8 subsection 3 was to go ahead and leave the statement as is currently uh in the policy and really only amend the fiscal year. uh finance does not see any issue with that. Uh we have no uh issue bringing that annually and updating the fiscal year. And the other uh feedback we received from council was for uh section three general fund balance. Uh if you recall last year we increased uh uh mod amended the range. Last year our range was from 17 to 20%. and we had a target fund balance and we uh amended that section to be at a 20% range. We did receive some feedback from council to uh having a 25% goal. Um of course from the finance department we we support fund balance. Um it helps with uh the rating agency as far as having uh a healthy fund balance as well as uh savings for emergencies and and also to be used for budget stabilization. Uh this is for council consideration. We can add a range there from 20 to 25%. We understand budgets can be hard at times and so during those tough times we may not hit uh be adding to that bottom line. Uh on good days when our budget is doing well uh we can uh work towards increasing our budget of 20% fund balance to 25% or work our way up. Uh that is all I have. Uh and I'll stand by for questions. Councilwoman Paxton,

thank you for your presentation, Sergio. Um, it was really excellent getting to engage with you and the other staff members who um presented and prepared this item for today. Um, yeah, the two things that were my feedback was to leave those undesated two cents to leave that verbiage in there and update the fiscal year um numbers. I do think that it's nice to have that carryover so that as councils, you know, go through bud budget season, that's a reminder in there um that it's a provision that could be exercised or not like we did this past year. So, my preference would be to leave that in. You're right. The other thing that we talked about um in preparation for this item was to me it's important that while we're going to have any type of action on our financial policy documents that we be intentional with our efforts and right now while we know that we have been speaking at length with the bond rating agencies um they are evaluating our situation with water anything that we can do to be intentional to to position ourselves in a positive light. That's that's my interest and I appreciate that y'all were very helpful with answering some of those questions. And I know that uh by the time it was my turn to meet with y'all, you had already met with most council. Um but so something that was important to me was um if it would be perceived favorably to put it into policy that our goal over time would be to increase our fund balance holdings to 25%. That's not necessarily this year earmarking a dollar amount. We we know that we're going to have a tight budget year again. So, it's not putting that dollar amount burden on us, but it's telling our rating agencies that we we're intentionally looking at ways to preserve the fund balance.

And I think your feedback was that would actually be pretty positive from the bond rating agencies. Uh yes, you know, we do uh receive additional positive feedback for having a uh a strong reserve of funds. So, yes, that that is accurate. So with the recommendation uh you don't you don't have a recommendation in here to increase that right? Uh we would support it uh that you know the recommendation if uh if the consensus of the council is to to go ahead and set a target rate uh we would definitely support we would recommend uh we yes we would recommend that for consideration for council discussion on it but it would need to be an amendment from the way this item is worded.

Correct. It's it's not part of our original proposal that was um provided to council. Okay. And the verbiage on the two cents, does that need to be rewarded as well with how it's written today if if we were to consider leaving that in? Right. Uh it basically the amendment there would uh leave that statement alone and only amend the fiscal year. Okay. I would very much and now that we're in a setting where I can talk to my colleagues I would very much um ask or ask the body to consider setting a goal over a year over a set amount of time whether that's I think you had said maybe three years was what a lot of cities do I said maybe five set a goal

the three to five years would be would be good uh it would depend on our budget situation and so the way you fund the that growth is it it is budgeted to support it or a plan when there's surplus at year end to go in put that in towards fund balance a surplus I think that's a good idea I mean we've seen so many times where a lot of our we do have projects that come in under budget so a compilation of those maybe but my thought would be to ask the body to consider that as a goal to write into policies because of the um intentionality it would signal to the bond rating agencies so I I'll let I want to hear some other feedback before Thank you. Councilman Hernandez,

you know, it's been my experience that, you know, the cities outside of Corpus Christie don't necessarily have the policies that we have for requiring, I guess, 3 months of of funding, which we had had in the pre in the past had been 17 to 20%. And that the fund balances for other cities weren't that great. How do we compare to other cities with regards to fund balances for both our utility system as well as our um tax supported

Sure thing. So the the I haven't looked recently at other cities policies u but in my experience working in local government uh past practice and other other cities I have worked at and as well as a county target was 90 days so 25%. Right. And that is also recommended by GFOA. Uh now as the entity gets bigger uh there is uh an exception to to between 20 17 to 20% is acceptable. There's nothing wrong with that. Uh but being a coastal city uh um with the potential of hurricanes and other emergencies it would uh be positive for us to have a a larger fund balance than 20%.

Okay. Because I mean we we eliminated the 17 the range. So we could get to 20% so we can have that for that. Now you're we're suggesting to do more. Uh not saying suggesting to do it now, but opening up a range for consideration and so maybe it's not something you do this this budget year. Um but it it uh it is set as a target or goal of the of the city. Our budget policy has 20% for the general fund. We have 25% for utilities and then 5% for our internal service funds. Are we going to do that to 25% as well? Uh not the internal service funds. Uh I'm not sure exactly how that was determined. Uh that we already at 25% for um the enterprise funds.

For what? Enterprise funds. So you're preparing. So I mean we've had that policy in place for a long time. The 25% ever since I've been on council. Correct.

And you know I'm re I've been participating in rewriting our budget policy pretty strenuously for the last you know six and seven years. Yeah. So, so on your internal service funds, those are that's money passed in internally. You don't want to build up a fund balance. That means your internal systems are overcharging the the departments are providing services to so having a 5% uh fund balance makes sense for contingency. Um having 25% 90 days for utility funds. Um we we be good to benchmark that really to kind of see what other utilities are doing to see if it's higher. Okay. We'll talk more about that during the but debt management policy. Yes, sir.

Okay. So, the two cents that you're talking about, um, I know it says it's not recommended or has not been accepted, but I think we have a shortfall in terms of our funding for streets. Is that correct, Mr. Zi? Maybe not a shortfall, but we we uh won't be at the level that we're at right now. Okay. So, this this two cents is specifically for streets, right? Yeah. And we uh we went through this last year. So we um you could increase the two cents is in the debt service side or what is it? Uh no the maintenance and operation side. Okay. So we could increase the tax rate by two cents. Yeah.

And during our conversation with you know when we had this discussion about budget policies that two cents we have we can actually vote on ourselves because we banked a certain amount of uh funding difference between what is required by state law. Is that correct? Uh yes. to to give you some some solid numbers here. So on the 2026 budget, our property tax rate is 0.599774. The voter approval rate uh it was 66077. So you got basically about 5 cents. Yeah, a little more than that. A little six.

Okay. So I know nobody on council wants to say they want to raise taxes and I agree with that. But is there any problem with putting that on on up for the voters to decide whether or not we want to take those last two cents? And this is a question now. Well, it's dedicated that last two cents is already dedicated to streets because we were supposed to take six cents. We've gotten four, but that you know it would be for me it would be up to the voters to decide whether or not they want that last two cents for streets. So, if we're using last year's tax rates or the current current fiscal year tax rate numbers, in order to take a property tax out to vote or to to get an election going, you would have to set your tax rate above the 66. So, essentially, you would be going from 59 cents.

No, no. This this is this is not a requirement from the state in terms of our tax rate. It's a it's a choice. We can we we can do it in terms of a choice, not as a part of the no new revenue tax rate. Understood. But, uh, I'm not an attorney, but speaking to our bond council, in order to call an election for a property tax rate increase, we'd have to exceed the voter approval tax rate. And so, last period it was about 7 6 to 7 cents a uh higher than our adopted tax rate.

Okay. I I don't think that's correct. Maybe we can get some legal advice on that or if we don't have that answer bring it back to us to say I don't think we have to, you know, have the, you know, follow a certain rule to put something on the on the uh for voters to approve or not. Yeah. To call an election for a property tax rate increase. I did check with our bond council and I'll provide that to you. So, he's telling you yes. Well, no, but that's that's nonsense. I mean, we if we want if we want to put it on the on the for people to vote whether we have the authorization to do it or not, we should be able to do it. We we can certainly certainly look into it. I don't have Absolutely. It seem Is it is the government dictating whether or not we can put something in front of the voters?

I think there's state law out there. I'm not the attorney again. All right. Bond counsel. I would like that brought back to us. Bond counsel here to say whether or not we could bond counsel's here. Okay. So, somebody Yeah. Answer the question. Yeah. Stephanie Libey's here from um Fulbright and Jorski. So we went through this similar discussion last year but and you're right there is two cents. So the voters approved it once that's available.

Good afternoon Stephanie Loy. Our firm does serve as bond counsel for the city of Corpus Christie. So under state law the legislature has to grant the city authority to call an election. So there are instances in which you are authorized to call an election. You can call an election for bond elections. They authorize city council elections. And for tax rate elections, as Sergio was explaining, it's when you go above that voter approval rate that the election is automatically um triggered.

Right. But if it's a choice like we want to ask the the voters to vote for it for a specific item, I don't think we have to that there's anything that prevents us from putting it on the I didn't I didn't see anything that would prevent us from doing that. There's nothing that prevents it, but there's also nothing that authorizes it. The calling of the election has to be legislatively authorized. I can we get maybe a an opinion on that from the state because that that doesn't sound right. It seems like your your hands are tied to oh it's the onus is on the elected official to raise taxes. We can certainly research it and get back to the council. Yeah, I mean I'm happy to research it as well or I can work with the city attorney's office. Look,

but you you're moving into area of straw polling and whether or not your election is is binding or if it would be a straw election. Um, and I mean that's always the guidance that we've been given. It's the guidance we've been given in the public finance arena um, from the Texas Attorney General's office. But again, I'm happy to

I want to make sure because we went to the the voters before to increase the 6 cents initially. We were going to do it, you know, two cents this year, two cents the following year, then but the law changed on us to the no new revenue tax rate scenario before we could get that final two cents. But I ultimately, you know, the the voters approved it, but all that was before the law changed. So, we need to if we want to do this, I want to make sure that the the citizens have a have the voice because this is a specific use for this t for this this two cents and it, you know, we've already called out 4 cents specifically for streets. So, I I want to make sure we understand that that, you know, I'd like to give the the voters the option to say we'll we'll increase it by 2 cents. Otherwise, it's just us wanting to increase taxes. But I I it doesn't make that doesn't make any sense to me because it has nothing to do with bonds. It has to do with operating funds for a specific purpose.

Okay. So, if we can get some feedback back on that. Yeah. Uh so, because you know, we we are going to have short flow on streets. Even though a lot of focus is turned over to water, we still have a lot of streets that we need to fix. Uh and so we need the funding for that. It's not I mean two cents is not a huge amount of money. What is about three million? I take one every one cent. Six million. Yeah. Six million. It's 3 million%, right? Okay. And we're short what? 12. Uh and 12 plus. Yeah. 12 plus. Okay. So, I just want to make sure that we have the option there. It's been sitting there for since I've been on council. Yeah, that would be a great option. Okay, sir.

I I'll I'll leave it I'll leave it at that. Thank you. Okay, Councilwoman Bon, quick question. Where are you at on the fund balance? 20 25 right now. We're at 20%. What's your position on it? Oh, u I think the I think 20% is good, but it would be good to put in there with a like an aspirational goal to get to 25%. Just as a goal, don't say we're just saying aspirational. I mean last year we looked Sergio may not have the data but I remember from last year the coastal cities that we looked at have a high fund balance like 30% because by the coast and so 25% 20 is good for inland but 25 probably for us is better but it would just be a goal and and we'll recommend it if there's funding available and I'm okay with that as long as 20 and 25 recommended.

I would hold on 20 but there could be an aspirational goal to get to 25. We don't know what's going to happen. We got a lot of expenses. Yeah, cuz that it helps with the bond rating. Mhm. And um Yeah, it's not saying we have to do it, but we have an aspirational financial goal to get there if if able. Nothing wrong with that language. Yeah, Councilman Scott, swallow my cookie. So, yeah, my issue is going to be if we say set an aspirational goal of 25, but we don't move the needle, are the rating agencies going to go, "Hey, man, what happened to this aspirational goal of yours? Is that a hickey?" Uh, we can ask Victor. tournament. Victor, what do you think? I don't think so, but

they're okay with it's 20 with an aspirational goal at 25, but if we don't move the needle this next fiscal year, and I'm okay with that. Good afternoon, Victor Kuroga with Specialized Public Finance. Um, yeah, I think if if you maybe you could do a range where you have a minimum of of 20% is what we're shooting for, but if you have an aspirational goal of higher amount, uh, that that would be good. And uh the rating agencies wouldn't penalize you if you're not quite at the 25 year or 25% mark. And also we have language that over time we we seek to go up to that. Yeah. And I I get that they're not going to penalize us if we're not at 25. What I don't want to be penalized if I say 20 to 25, but I don't move closer to 25.

Are the rating agencies are going, "Hey man, you said 25. You need to be moving in that direction." And if we're not, does that does that hurt us?

Yeah. So, um, most of the analysis that the rating agencies are going to do is going to be based off what's audited and what's been achieved already in terms of what you have already in fund balance. And so, any policies after that, that's just a guideline and a goal that you're after. So, I think if we have a minimum of 20 uh, and we're already past that or at that and then have an aspirational goal a little bit more than that, that would be beneficial overall with your credit rating agencies. I think what they're looking for is that um they know the city has a lot of capital needs coming up and but they also want to make sure you have enough cash set aside too for emergencies

mentioned liquidity or cash and our standing and pores conversation this week. So having liquid cash you know is a good thing. Yeah, that was one of the things they talked about right Victor. Yeah.

Okay. Councilwoman Paxton. Thank you. So, um, looking at our agenda memo, I'm trying to look for, um, how it's worded. If I want to leave the two cents in because we're going to continue to have discussion about how to exercise those. Um, and I would like to make the amendment to set um a goal, an aspirational goal to 25% with a baseline of 20 in reserves. What do we need to do to change the um wording on this caption to make those amendments

um for for the fund balance portion? Um the way it's worked out, it is our goal to of the city council to maintain a reserve and general fund of unassigned fund balance of 20%, uh my recommendation is just to put a range there from 20 to 25%. A baseline of Yeah, I wouldn't put the range. I would say I would keep this where it says calculated to be 20%. General operating expenditures comma with an aspirational goal to get to 25%. Yeah, because the range is that's now you're really talking about a range. We're just 20% is really the best I think we can do right now for the next couple but stating with an aspirational goal as a separate phrase would be better look favorably from our rating agencies.

So the amendment would be for it says 20% of regular general fund operating expenditures with an aspirational goal of 25%. Yes, that's it. So can I make a motion to adopt that amendment? And I believe because you have two proposals for how we handle the verbiage on the two cents, we'd just be accepting the proposal that we leave that in there and change the dates. So I don't think that needed a verbiage change because it was two options. Correct. So it's option one on that with the correct dates and then a motion to make the amendment. Are you on section three? I'm sorry. I didn't Oh, I'm sorry, Peter. Let me look at the section three of the resolution. Is that what we're looking at? Yeah, we're on section three. general fund

of the resolution. Okay. So, where it says amount calculated to be 20% of regular, right? So, we're adding a sentence after that. Now, just a where it says 20% of regular general fund operating expenditures, comma. Mhm. Okay. After that, comma, we're going to say with an aspirational goal of 25%. Okay. And then you just keep everything else the same. Exclusive any one-time appropriations, all that stays the same. So, there's just a phrase added after the comma, after the word expenditures. Thank you, Peter. Okay. And that's your motion to amend. Yes. Thank you, Rebecca. Okay. Any second? So, Miss Compo seconds. All in favor say I.

Well, any Well, okay. I don't know if there's any further discussion. If there isn't, that's good. Okay. Any oppose? All in favor say I. Yes. Any oppose say no. Okay. Mr. The motion carries. Okay. That's consistent. Okay. Okay. Okay. And then public comment before we vote on it as amended. Okay. Is there anyone in the audience that would like to make public comment on uh item number 23? Okay. There being no one, we'll close public comment and I'll entertain a motion. Yes. We're going to approve it as amended. If there's no further discussion to approve as amended move second. Okay. All in favor say I. I.

Any oppose say no. The motion carries. Okay. Okay. Item number 24 is a resolution amending the debt management policy adopted by resolution 029321 on December 13, 2011. Thank you, Mayor Seasan, director of finance and procurement. Uh the item before you is our amendment to the debt management policy. Uh so this policy was last updated in 2010 and affirmed by the council in 2011. Uh the policy ensures sound fiscal management of the city's debt program. Includes guidance on debt issuance, management, reporting, continuing evaluation of our program. Uh although this policy hadn't been uh affirmed in in since 2011, uh it is still in line with mostly in line with the government off with best practices from the government finance officers association. Uh we don't have a lot of significant changes to the policy like I mentioned it is a in line with best practices. Uh uh there is a a large list of changes including the agenda memo specifically a lot of housekeeping uh since it is an older policy uh and those housekeeping items include staff titles the city's website address and other minor edits. Uh the most significant update in this policy is is in section 10. Uh there was a change to federal law related related to the tax cut and jobs act of 2017. uh that change in law prevents cities from advanced refunding uh tax exempt bonds with tax with refunding uh with tax exempt refunding bonds. Uh cities are still allowed to do advanced refunding but now with taxable bonds which are a little more costly. Uh that is the only the only changes we are recommending at this point. We did meet with council members and received some feedback. Uh so additional consideration for council from the

feedback we received uh was um adding additional debt limits to to our certificates of obligations. Uh we the finance department went and reviewed other city policies and to identify what are cities out there doing as far as are they capping out their certificates of obligations. And so here we go. Okay. So what we found was there is no explicit uh well we looked at very specific cities. I'll give those to you. It's uh El Paso, Fort Worth, Arlington, San Antonio, and Dallas. And we looked at those specifically because we had access to their debt policies. So it does take some time to get their their actual debt policies. And what we found in the within those policy was that there is no uh limitation to certificates of obligation but there are limitations to total debt issued by uh supported by uh by taxes. And so uh within our death policy we do already have existing a limit uh which is in line with the state statute. Um and so at this point we would recommend to approve the policy as is. Um enough additional discussion on uh open it up to council for additional discussion on debt limits.

Councilman Hernandis. Okay. You you didn't say what their limits were. What what what limits did you find? Yeah. So percentage of of revenue. Is it a limit in terms of how much you have? I mean what what what was the limit here?

Go ahead and hand these out. These are the limits that they had. This is section and so we start with city of El Paso as those are getting handed out. Their limits are really limited to property assessed value. Uh so El Paso is set at 10% of total assessed value. Uh Fort Worth follows the state limit similar to city of Corpus Christi. Arlington sets say 2% on total assessed value. Uh San Antonio has 10% of total assessed property value and Dallas has 4% of property market value which is going to be a higher number than your total assessed value.

So El Paso and Arlington have 20% of their debt service as a uh 20% of their operating expenditures, right? Uh if you're looking at the debt service limits, that's a different item as as far as what they want to limit their annual debt service. So the debt service in terms of how much they pay on an annual basis has to be no more than 20% of their budget.

Yeah, sort of. It's kind it's a hairy calculation. So they are grouping all government funds. And so we really need to look at the calculation and really dig into their details because they're calling net direct service net direct service less 20% of operating revenue. And so they're considering all government funds, which is your general fund, special revenue funds, and they're including the debt service fund. And so it it's the way it's kind of worded is a little misleading. It's not that's El Paso. Arlington is very is more clear. 20% of debt service plus general fund operating uh expenditures. Uh yes, that one is is clear. Where are we at? We for general fund, I think we're about 15%.

15%, right? Okay. So, what's our our our debt service for this year is what? 57 million. Uh, let's see. 66 million and our budget is 350 million. What? Yeah. 350. Yeah. Yeah. So looking at the 2026 budget before we issue new debt, our debt service, that's budget is 53 million. Our operating budget is 343 million. Uh and so we're right at 15%. So debt service is 15%. 15%.

Yes, sir. For general fund. So would putting a 20% uh cap Arlington, would that be a bad thing? Uh it when when we're benchmarking against other cities, it is difficult to say is 20% good, is it not good? I I wouldn't recommend it at this point. Um cuz we're going to continue to issue debt service for general fund. We're going to issue about 115 million here uh soon uh for voter approved bonds. What's a good limit for you? I mean what I mean we should just spend into oblivion. Is that what you're recommending? Uh no no I I think uh the the council has been responsible on issuing general obligation bonds. So just to

Well, wait a minute. When you say general obligation, I mean all debt, all tax supported debt. That's general obligation, certificates of obligation, tax notes. Is that is that 53 million all of debt or just general obligation debt? Uh 53 million is the debt service funded by uh tax tax revenue. So all tax support debt. So your cos goss tax notes because I mean when I brought this up I mean I was looking at at certificates of obligation as a percentage of the overall general obligation debt, right? But you know as time went on and we started getting more and more debt you know there has to be some sort of limitation as to how much we do. Right. Right. So we are

so your recommendation is to have no limit. Oh we do have an existing limit which is the the state law. Right. And so our tax rate can exceed $2.50 and our debt limit tax rate should exceed a dollar. Okay. So there was a a budget item I mean a a bill last year that was looking to limit that. Right. So, do you expect that to come back? Yes. Okay. So, but we don't want to do anything until we are told by state what we can do.

Uh well, the city the the there's there was different versions of that bill. Uh well, the concern that we saw right away was the limit on certificates of obligations that we had reimbursement resolutions for. So, we had existing contracts, existing expenditures, negative cash that we needed to replenish. And so we issued all our cos and you know the state really forced a hand to issue those cos okay so we talked about a little bit about so anyways since then we if you look at our current budget we have about 5.6 million Os that aren't issued so management has not budgeted additional cos so we have that under control 5.6 6 million additional ones that we have not approved.

Correct. For solid waste. And what's our percentage of of debt of taxported debt that COS

tax support? Uh with the issuance of the current bonds, uh we'd be at 31%. Um currently we're at 41% and I do have some comparatives to other cities. Uh, so San Antonio's at CO to GEO as a percentage is at 46%. Austin's at 31%, Dallas is at 20%, Fort Worth has 11.9, uh, El Paso is at 47, Arlington is at 5.7, and then you have the city of Houston who recently paid off all their cos and have 0%. Uh, but I would caution uh, benchmarking. I'll hand these out so you can see when we're benchmarking some of these cities may have uh lower as a matter of the them using other uh financing tools. So whether it be capital leases uh heavily on nodes, we'd really have to dig into their financials. Plus, we don't know their surplus revenue, what revenue sources they're using. Uh, other things we need to look at is maybe their capacity is limited by certain debt obligations they have that are unique to their entities such as Dallas and Houston that have pension obligation bonds. Um, also we would need to look at uh how many other municipalities that we have here, these larger ones, have solid waste as a general government fund. And so, the city of Corpus Christi does have solid waste as a general government fund, which uh forces us to, well, it doesn't force it. it's prudent for us to issue CEOs because it it's cheaper than revenue bonds, but in other larger cities that solid waste may be an enterprise fund where they're issuing revenue bonds. So even though I'm giving you some comparisons, it may not be apples to apples, but at least gives you an idea of where we're at compared to some of these other cities.

Okay? And Sergio, just so you know, when I'm yelling at you, I'm actually yelling at Peter. Okay. Okay. Peter's the one I'm yelling at. not being and so no I mean this is something we brought up before and we've had long discussions about okay you know and I know this is this is like watching paint dry but this is money that we're obligating ourselves to pay you know and I know it benefits our bond council for you know well I'll leave it at that um it just you know there's got to be some controls on our debt and right now we don't really have this controls other than what you're saying is state law, which is very liberal, should I say. Oh,

but I know that there's more I mean, I know there's state reps that are going out there to try to limit the the bond issuance, you know, because they see because what happened was when we limited how much you can raise your taxes. Well, a lot of entities went out and just sold bonds and then and then the INS wasn't restricted, only the um operating budget was restricted. So they put a lot of operating stuff into into debt and then increase taxes by the INS side. We're now I'm not stupid here, Sergio. So I may have misspoke as far as us not having uh debt limits. Uh so we our you know I'm right our San Antonio. Yeah. Our policy

some school districts. Our policy limits that with uh by state statute, right? We're referencing that. But the council limits debt by the INS tax rate. And so if our tax rate is at 22 cents, we can't issue more debt. We can't just go issue a bunch of debt. We're limited to the capacity of that tax rate. Now, we do have property tax value growth, but it's not significant. We're not growing 10 20% per year to where we're adding a bunch of That's not what I'm saying. We're limited on the operating tax rate, right? No new revenue tax rate. That's not what I'm saying. What I'm saying is that we move stuff into debt like like we put a bond out to do street uh residential street maintenance, right?

Okay. That's putting operational funding into debt service which is not which you have to pay back your debt. So that's there's no limitation on that side to uh increase your tax rate or your no new revenue tax rate because it's an INS. Okay. So, it's it's a shell game is what I'm trying to say is and if you don't have any limits, self-imposed limits on your debt and your debt service, then this shell game can continue. If you continue to move M over to INS, your INS is going to be capped out. And so, it it is there is an artificial limit there that you're setting with the INS tax rate.

And so, okay. And then you can't move just any M over. It has to be capital improvements. And so the the our bond policy does talk about uh the the assets that we are funding have to our amortization payback of the debt has to line up with the life of that asset. So that that is in our policy. So we do have to keep that in mind as well. So there are some safeguards still in there. Okay. I understand your marching orders. Don't I'm not getting mad at you. Uh, I think that we should put some limits, self-imposed limits on this because what's going to happen is the state's just going to come in and put limits on us that we may not, you know, like and then we can't go to the state legislature and say, "Hey, we have these limits in place. Please don't overregulate us."

Yes, sir. Right. So I, you know, we have a, you know, a debt policy place where we can put this stuff and have some limitations, but I'll, as it stands, I wanted to make some of these changes. And Peter, I know we've had this conversation several times. Yeah. And so, uh, we I think we need to have some more information on this, but I'll I can't vote for it like it is. Thank you. Yes, sir. Okay. I'm going to go ahead and open public comment. Is there anyone in the audience that would like to comment on item number 24? Okay, we'll close public comment. Um, did we have a motion?

I move for approval. Second. Okay. I don't know. Everybody's disappeared. Okay. So, we have a motion in a second. Please submit your vote. No vote. Okay. And um Mr. Scott. Thank Mr. Scott live. Okay. The motion carries. Thank you, Sergio. Thank you.

And our last item of the day is item 25 and that is our water supply update. Right. Okay. Hello, Mayor and Council. Nick Wkelman, chief operating officer, Corpus Christi Water. As you are aware, our strategic plan is to diversify the water supply portfolio consisting of surface water, groundwater, wastewater reuse, and seawater. In today's presentation, I'll give you an update on the various projects that are ongoing and also updates on our surface water uh supplies as well. We'll start with the surface water. As of today, the capacity for Lake Corpus Christi is 8.6%. Choke Canyon Reservoir is 7.4% 4% and the combined western reservoir capacity is 7.8%. We've seen some uh beneficial uh information from the recent rainfall in the watershed for Lake Texana. I'm pleased to uh present that the reservoir percentage is at 78%. Uh this is what the information that was given by the Lvaka Navad River Authority. If you are looking at the Texas Water Development Board website, you would like to see a lower number, but we are reporting the number that the LNR is providing to us directly. Additionally, I'd like to say that the lower Colorado River, uh the water that we are requesting is available. Uh and just so you know that uh we make a

monthly diversion request to the lower Colorado River Authority and we receive a daily email from the LC advising us if that water is available. Previously about 3 4 weeks ago uh we were seeing uh some concern from the LC and we haven't seen that in the in the recent weeks. So, we're we're happy to report that we continue to draw approximately 30 million gallons a day from the lower Colorado River. Terms of uh our groundwater projects, the first project I'd like to talk about is the Evangelene groundwater project located in San Patricio County. Pape Dawson, our design engineer, continues to do a fantastic job and they have completed the 60% design deliverables. To date, we have approximately 45,000 linear feet of both HDP and PVC pipe uh delivered and onsite at the project site. Garnney Construction has mobilized job site work trailers. The prep crew arrived on site last week and this week the first pipeline crew is arriving. Previously two construction amendments have been awarded and approved to Garnney Construction. The third amendment for the project is projected to come to uh this body for consideration on May 19th. The preliminary hearing to determine if the protestants have had standing has been completed. It was presided by the administrative law judge York and she has stated that we would have a

determination within 10 business days of that hearing. 10 business days is May 12th. However, we are hoping to have some news uh from her ahead of that date and we will keep you updated as soon as we have more information available. Work continues on the on the project site. We're we're very focused on water line installation and also there's some site clearing that has to be done for the the pad site for the groundwater storage tank and the pump station. the Noasis groundwater program. Again, again, the well field is substantially complete. We're operating within the requirements of the Bed and Banks permit. Uh currently, we have eight wells that are operational. Uh these wells are all uh powered by natural gas generators. Those generators do require service periodically and this week we are maintaining and servicing a couple of those generators as well. The western wellfield, a temporary bed of banks, was issued on March 18th. Seven wells are currently online. The eighth is projected to come online by the end of the week. I expect it to happen over the weekend. Uh, five of those seven wells are powered by electric power. Two were currently powered by temporary generators. And then that, like I said earlier, the eighth well, ideally we'd have that online this weekend. And that would also be powered by a temporary generator. The test pumping of the ninth well of the site is projected to occur next week. So the test pumping of a well happens after it is all the drilling and the construction is complete. We conduct

a performance test and an aquifer test. We get that data and then we also take our water quality samples at that time. Drilling work continues on the 10th and 11th well on that property. The brackish groundwater treatment portion of this project. We've recently met with Aquailia. They're the equipment and treatment provider. They're doing everything they can to expedite uh both design and delivery. They have a number of engineers on this assigned to this project and they they are we're working with them closely to try and bring it online in an expedited fashion on there are ongoing permitting meetings with TCQ. These permitting meetings include um one the reverse osmosis treatment itself, the treatment equipment that will be located at Owen Stevens and then also the discharge options which include evaporative ponds, an injection well and surface discharge. The conveyance line from the western wellfield is currently at about 58% should be at 60% design by the end of the week. And we are working with um uh our partners both text and also newasis county on the easements required to install that line in the rightway.

Nick who's designing that? So the conveyance line is being designed by Garver engineer Garber. Okay.

Additionally associated with this project are uh a couple of ground storage tanks. Two 500,000 uh ground storage tanks will be located at the Owen Stevens facility. One 3 milliongal tank will be located at the Westernfield. CCW is finalizing the design of the pumps required for the pump station at the Westernfield which will pump the water from the wellfield to Owen Stevens. Additionally, as as we talked about before, there will be um site improvements at Owen Stevens. There'll be some foundation work for both the ground storage tanks and the reverse osmosis equipment. And then, of course, we have electrical work uh that will be done to provide electrical power for the reverse osmosis treatment system. HDR holds the electrical uh master service agreement for the work at Owen Stevens. So CCW is coordinating with HDR and A for the electrical work and then all of that uh has to coordinate with the work of both Aquailia and Garver. We are targeting to have the conveyance line installed and operational by the end of the calendar year. So that would be in December and then we are working to uh provide to have the first phase of the brackish groundwater treatment to happen February March time frame and I'll keep you updated as that those projects continue. Wastewater reuse is a big um it's a big um big project. is a big part of this delivery process. Uh, as you all know,

we have existing contracts with both Valero and Flint Hills. We are working very diligently, as are those two entities, to be able to use wastewater reuse sooner than later. They're working very fast to expedite their schedule. The phase one of the Valero project was up to 3 million gallons a day from the Greenwood plant. Originally that was estimated to take to come online middle of next year. We are hoping and we're we're working with Valero that potentially they can start taking up to 3MGD by the end of this calendar year. Working with them and uh waiting on some more confirmation before we can dial that in. But there's a lot of work going on to move that up. Additionally, Flint Hills is expecting um to take one MGD and which is their phase one. That's from the Allison wastewater treatment plant. We are working with them closely and ideally that that'll start sometime this summer, maybe June, July time frame. And I'll keep you updated as we learn more from both of those both of our partners there, both Valero and Flint Hills. There are additional uh companies that we're working with on additional effluent reuse contracts and once we have the details of those ironed out we will uh bring those contracts to to this body for approve review and approval. Large portion of this project is getting the effluent water from OSO to Greenwood to make it more available. We have approximately 10 million gallons a day uh from OSO that would be available. Ardura is completing the the design for the conveyance line and pump station to

get the effluent from Oso to Greenwood. They're at 60% design and we have received proposals for Seymar contractors. that's construction manager at risk and the projection is to bring that Semar contract to council for consideration on May 12th. Again, why that part of the project is so important is it brings approximately 10 million gallons a day from OSO to Greenwood where we can get it to our customers and continue to sell it and utilize it as an offset of our water demand. Seawater desalination. First project I'd like to talk about is our inner harbor project. the as as you know this is this project is fully permitted. Uh staff is currently working with the Corpus Christi Delale partners on a contract that we will bring back to council for consideration in June. There are many meetings that are ongoing both with our legal staff for the contractual documents but also with our technical staff as well. that includes our um CCW water treatment staff and our consultants. Farfield mo modeling, there's been a lot of work done to date. Our next farfield meeting is May 7th, that's this week, followed by another one on May 21st and May 28th. We are projecting for the modeler to make a presentation uh to the committee on May 28th and then they would also make uh the same presentation to council at the meeting in June.

moving forward with the um next steps for the Inner Harbor project. After the approval or potential approval of that contract, we will make a recommendation for owner's representative for that project. That will include the independent cost estimator as well. And then we will also we the plan as laid out by the city manager we we would develop uh request for proposals for a operations and maintenance agreement for a third party to operate the plant. And then Nick on this project here the mayor and Ryan Scurvachic are meeting with the energy and water chairman Fleshman this evening.

Fleshman Fleshman this evening to uh talk about funding. Just just FYI. Yeah. Very good. Yes. So, we'll put in a good word. Thank you for that. Very good. This evening, you're meeting with this evening. Yeah. Yeah. A little bit later this evening.

The next project I'd like to talk about is the Harbor Island Seawater Desalination project. This project is the Noasis River Authority project. The Newasis River Authority has issued a formal RFQ for a development partner. They are expected to select this partner at one of their board meetings mid June. The NRA has also approved a master service agreement with LN Lockwood Andrews and Newman and they are beginning preliminary design on the conveyance line from the water treatment plant. The TCQ draft intake permit has been issued. The TCQ draft discharge permit has been issued. Both are in draft. They're not final. With a public meeting scheduled for May 27th that will be located at the Ortiz Center. The Barney Davis Seawater Desalination Project. Again, we talked about this a little bit uh earlier, but uh the city manager and city staff met with uh CPS Energy and they are absolutely willing to collaborate with the city on the development of a project at the Barney Davis location. This would uh likely involve a P3 partnership or could potentially involve a public utility association, a PUA, CC Polymers or Aquatech. Again, CC Polymers owns the treatment plant, the seawater desalination plant. Aquatech has reached an agreement with the three companies that own CC CC polymers and they are developing a contract for us to

consider. We've met with Aquate uh a number of times already. They've also met with CCW technical staff. There is a meeting set up with Aquatech this week so we can continue to review what a potential contract may look like. CC Polymer has both the water rights permit, the intake permit, and the discharge permit in hand. The the the other notable item about this project is it's not yet complete. The plan is about 85% complete and Aquitech has been contracted to complete the plant. This is the projection for delivery of new water supply sources. Uh this is just uh the same chart that's on my weekly memo. At last week's meeting, it was suggested to put this uh chart and include it on the PowerPoint so that it would be available for more people to review. The delivery of projected new water. Uh per the chart, we've got it uh over three years, 2026, 2027, and 2028. This details both groundwater uh wastewater reuse and then um and and th those are the projects that are ongoing right now. We're waiting for uh contractual agreements for any of the seawater desalination projects. Couple of things to note and I I brought it up earlier, but you can see the reuse with Flint Hills. It was originally estimated that they would start the 1 MGD in December. We really feel that they are working to bring that up and move it to June or July. Once I have better

confirmation on that, I can update this chart. As Valero, their initial 3MGD was going to be in 2027. We know that they are working very hard for that to occur in this calendar year, which would be absolutely fantastic. There's a significant amount of work that they are doing and looking to complete ahead of time. Quick update on our water conservation plan. uh very uh proud of the water conservation committee, the work that they've done and all the input that they have provided. The last meeting was held on April 24th. That was um review of the draft. They made the committee made some minor editorial changes which we are working on. We'll have the final draft available for the committee to review uh projected on May 13th and the goal is to present that document uh to council on May 19th. And I said May 13th for the committee to review, but we would also distribute it to all of you at that time as well. With that, I stand by for any questions. Councilwoman Paxton,

thank you. Thank you for that presentation, Nick. Um, can you tell me, have we already submitted or when will we be submitting our variance request for the western tractive wells? Yeah, thank you, councilwoman. So, we staff is finalizing it right now and we are expecting to submit it to TCQ any day now. So, I would say within the next couple of days. So, this week probably. Yes. Okay, perfect. And there was a question raised earlier um about the Merry Roads

uh improvements that we just authorized last week. One of the things on there was to evaluate it, which is regular maintenance, and that's great. Um, but I think what they were saying is how how do we do that while we're relying on Mary Road so heavily right now,

right? So there there were there were a couple of comments made by uh the public commenter. One, I I do want to clarify it first. So, it was a contractual amendment for it was about $500,000 and then it said up to $3 million. The the previous contract was $2.5 million. So, you add the amendment which all of you approved last week that gets you to that total. There's there's not an open amount. Uh it's it's really it's up to that additional $500,000. But back to your your more technical question, councilwoman. So you're correct. The Mary roads pipeline is in operation. It's critical. It has to remain in operation. One thing we know from the previous work is that uh there are areas that we need to conduct additional investigation and those are the pressure exceeded areas. that that could be as a result of sand and silt buildup or other debris in the pipeline. We want to understand better what's going on so that we can set a plan to address it in the future when we can. So this is this tool will be inserted into the pipeline. It'll travel down the pipeline while it all remains in service. But that that sonar tool will provide us uh more information as to how big that buildup is in the pipeline or the in the exact locations of that potential debris. We will not be taking the Mary Roads pipeline down for that investigation.

Okay, I appreciate that. Um I'm looking on our website right now. I've had some people asking about a a resource that they could go to to get real time updates. Believe it or not, I get a lot of requests for copies of this and I and it's open here, you know. So, I I'm free with that. I I give people copies as they ask. Is there I'm I'm trying to find it on our website because what I was doing was I brought up the dashboard and I was trying to say the dashboard is our resource. Um, I see that there's one on here for May 6, 2025. I guess basically like our dashboard shows that colorful chart, but if you're not listening to the narrative very regularly, it's just so information dense it can be hard to articulate in a snapshot. Is there a spot on there that articulates our efforts in a way that is immediate water supply and long-term? kind of like how we've talked about a multi-tered approach of water um supply. How do I direct them to that? Basically,

so one of the uh informationrich area is the securingwater.corpuschristx.gov and that has all of the weekly memos. It also has additional technical information on each of the various projects that we discussed today. I will tell you this uh these presentations are not on the website. It's it's the memo which that has uh a significant amount of information and is is basically spread throughout the region so people can get updates. But that would be a great place for anyone to go to get information. Can you send that uh or somebody send that to the council?

It's just the securing water together. That's it. And then you can click on wastewater reuse, seawater, groundwater, and then there's there's information in there about our uh just about the entire well program. And then there's links to where you can get every single memo that we've done, water supply update memo.

I I I appreciate that we've added all this in here. Now having this feedback in the community, is it possible to uh add or kind of populate with the um with the tiers that is immediate and long-term water supplies? Is that is it possible to kind of have that snapshot? So when people say what's the plan? Do we have water coming? You know, I think what all of us as a team try to do is combat that rhetoric that says Corpus Christie doesn't have a plan. We actually have a 1.2 2 billion immediate plan and and many long-term plans. So, we do have a plan, but how to best articulate that. And what I discovered this last week is

other than your your printed presentations, it's a lot of steps to get to to try to show that story. It is on the last page of the memo is that chart and that shows projected uh new water supply coming online. That's why we created that as part of the memo. Yeah. It's the last the memo. Yeah, we could look at doing a graphic that could be added on this on the website. Yeah, cuz uh it um unless you go to that last page, you're not you won't That's correct. Yeah, it's on the It's It'd be nice to have a graphic on here. If there's something that they can log in and it says securing water. Yeah.

And then it says immediate and long-term supplies, right? And then we kind of go into maybe that I I feel like that would be very helpful to right to a lot of of different community members and as they are branching out to people interested in our community. So those are my three topics be like you know I had her saying solving the water

situation immediate midterm longterm or immediate long term. Yeah, I you know I've uh on that and you notice on that chart I've just listed the years when they come online uh sometimes people ask me about immediate and midterm and long-term and that means different things to different people and rightfully so. So uh just from my engineering standpoint I've just provided the dates of projected when it comes online.

That makes perfect sense. Um, I feel I I see that makes sense. I do think that I think we could classify our groundwater and probably reuse as immediate relief to the water needs and I think our most of our del plants are kind of like long-term or future. Does that still work with your engineering? Um, it's just how I look

analysis. It's just how I look at things. But yeah, I mean I would, you know, you won't have um the the reuse. I would say definitely yes, but we won't I don't believe we'll have the full 16 MGD committed and providing for that till the end of uh 2027. So where, you know, people ask me, well, they say, well, that's long-term. So again, that just it gets into conversations that I just want to present the dates and people can decide. We'll give them good news twice. We'll say reuse in the immediate and reuse in the long term. Okay. I I I think that would be very very very helpful if we could look at adding that kind of a tier to that page.

I'll I'll work with the communications team and we can put some Awesome. Thank you so much. Didn't we have that Nick where we had the the months or or did that never was that just like a a version? It's it's the uh No, it's the p this page which is the last page of the memo where I've lined out each month when it's coming online. No, but I guess I guess it was one remember it was so many months, you know, the short-term, long-term or immediate, short-term, long-term was that never put it that we never used that. We we sort of went back and forth trying to define what was short-term and mid midterm and longterm. Right. Right. Right. Yeah.

All righty. Councilman Roy, I I just have a quick question. Um, you know, I'm looking at your water table here, but when you look at the Inner Harbor and um CC Polymers, right? I mean, one of the things you said it's 85% done right now, right? It's 85 CC polymers. The plant is 85% done. Yeah. What percentage Okay, the plant is, but what percentage is the actual Are you talking about the diesel facility itself?

Correct. So, it's 85% done. That seems like that's our lowest hanging fruit realistically, right? Um, when you you said you had meetings with them recently, what was your what was your gauge? What was your temper, you know, temperature in terms of their willingness to try to expedite this and get this done? I I would say they they are very willing and, you know, one thing to remember, they do have existing permits,

right? Uh, one thing we asked them to look at is, uh, potential addition of a diffuser. That came up when we were first talking about this. Um, yeah, I'll I'll know more this week when we meet with them. They're they're they're uh they're working to present some good information to us this week, but they're working they're working very hard to try and bring us something that we can implement sooner than later. I mean, from the beginning, what's the number of MGD that they could bring to the table once they are up and running? 10. Uh,

yeah, it's about 9.4 n. I round it to 10. That's a tremendous win. And I think it where we're at with this, we should be really chomping at the bit on this one just because, you know, we've talked about some of the other things that we may not be able to control, you know, that we could have issues with, but but this one I think is really should be one that we're whatever we can do to help them get over the finish line quick, right? And so that we're so it's a water sale agreement. We'll be working on that contract and then bringing that back to council as soon as possible. Yeah. No, I'm excited. I think that should be a top priority. It should be up here and anyway. Thank you. Sure. Okay, Nick. Thank you. Thank you for the presentation, the update, the briefing. Um, I think that's it. Thank you.

Yeah. Thank you. So, there being no further business, this meeting is adjourned.