City Council Meeting Summary - July 29, 2025

The City Council of Corpus Christi held a marathon meeting on July 29, 2025, dominated by extensive debate and public testimony regarding the future of the Inner Harbor Desalination Plant. After over 12 hours of deliberation, the council voted 5-4 to postpone a decision on the project's next design phase pending a formal response from the Texas Water Development Board. The council also approved a heavily amended federal housing and community development funding plan, authorizing millions in spending for law enforcement, gas utility infrastructure, and lawsuit settlements.

Consent Calendar

• Approved the July 22, 2025 meeting minutes (Item 1).
• Approved the Crime Control and Prevention District budget (Item 5) after a discussion between Councilwoman Campos and police staff about integrating the CC PALs program into community recreation centers.
• Approved the purchase of ammunition for the Police Department (Item 7), with Councilwoman Campos registering her objection to using Crime Control funds.
• Approved the purchase of the City of Rockport's natural gas utility assets for $5.5 million (Item 12), which staff stated would be financed through gas system revenues and yield a net benefit to the regional customer base.

Public Comments & Testimony

• Item 6 (CDBG Funding): Representatives from Rising Tide Ministries and Habitat for Humanity spoke in support of receiving funding for their respective housing and social service programs.
• Item 12 (Rockport Gas): In public comment, Jason Hale questioned the project's scope, asking whether the mission of the city's gas department was to become a regional supplier.
• Item 16 (Inner Harbor Desalination): Over 55 people signed up for the 5:30 pm general public comment, the vast majority addressing the desalination plant.
  • Supporters, including the Chamber of Commerce, industry representatives (LyondellBasell, Flint Hills Resources), and the Coastal Bend Home Builders Association, argued the project was essential for economic survival, drought-proofing the water supply, and sustaining local jobs. They stressed that it was the only fully permitted large-scale water project available.
  • Opponents, including environmental activists, Hillcrest community advocates, and fishing industry members, cited the enormous cost ($1.2 billion+) and its impact on residential water rates, environmental racism (targeting the Hillcrest neighborhood), threats to the bay ecosystem and tourism via brine discharge, a lack of transparency in modeling data, and the belief the water primarily serves industrial expansion rather than residents. Several speakers also criticized the recent change to the public comment schedule, which they said suppressed public participation.

Discussion Items

• Item 16 – Inner Harbor Desalination Plant Amendment: Staff presented three options for the $50M progressive design-build contract with Kiewit: proceed to 60% design, proceed only to 30% design, or terminate the project. A major point of contention was a discrepancy in reported spending ($21 million in weekly updates vs. $47 million total spent to date). Councilwoman Paxson expressed strong frustration over the lack of transparency and clarity. Councilman Cantu made a motion to postpone the item until August 26 to wait for a formal response from the Texas Water Development Board on the flexibility of the project's dedicated loan funds. An amendment by Councilman Roy to authorize $10 million to continue work during the 30-day delay failed. The motion to postpone was passed by a vote of 5-4, with Mayor Guajardo voting against the postponement. Work on the project is expected to cease during this period.
• Item 20 – Alternative Water Supply Briefing: Dan Olson of Garver presented an independent evaluation of four groundwater projects. The analysis showed the City's own Nueces River Wells project offered the best long-term value at $4.75 per 1,000 gallons. This compared favorably to the escalating long-term costs of purchase agreements from projects like Evangeline ($6.50+), though the Evangeline representative (Lyle Larson) challenged the timelines and permit risks cited in the report. Garver concluded that treated water from most projects, including the desalination plant, would be available around mid-2028.
• Item 18 – Housing Finance Corporation: A special board meeting was held to authorize a $150,000 contract for a Housing Needs Assessment and approve the sale of the Costa Tarragona I and II apartments.
• Lawsuit Settlement (Item 22-25): The council came out of executive session to authorize the city manager to execute a settlement in the case of Joshua Ortiz v. City of Corpus Christi for an amount not to exceed $150,000.

Key Outcomes

• Inner Harbor Design Vote Postponed: The council voted 5-4 to postpone the vote on the $50 million Kiewit contract amendment until at least August 26, 2025, pending receipt of formal clarification from the Texas Water Development Board on funding flexibility.
• HUD Funding Realigned: The council approved an amended FY2026 Annual Action Plan, reducing the Ben Garza generator allocation from $500,000 to $410,000 and redirecting $160,000 in identified savings to three community programs: $30,000 to Rising Tide Ministries (Safe at Home), $30,000 to Rising Tide Ministries (Wave Academy), and $100,000 to Habitat for Humanity.
• Rockport Utility Purchase Approved: Approved the $5.5 million asset purchase and sale agreement for the City of Rockport's natural gas system.
• Lawsuit Settlement Authorized: Authorized a $150,000 settlement in a lawsuit against the city and a police officer.
• US Coast Guard City: Recognized the city's official designation as the first 'US Coast Guard City' in the state of Texas.