Corpus Christi City Council Meeting Addresses Water Crisis and Homewood Suites Investigation - February 17, 2026

The City of Corpus Christi City Council met on February 17, 2026, from 11:30 AM to nearly 10:00 PM, managing an extensive agenda dominated by the city's water supply emergency, the release of findings from the Homewood Suites Type B incentive investigation, and community development items. The council authorized over $600 million in water infrastructure projects, heard reports from police and external counsel clearing the city of criminal wrongdoing in the Homewood Suites matter, and addressed routine business.

Consent Calendar

• The Consent Agenda (Items 2-13) was approved as a slate with the exception of items 9, 10, 11, and 12, which were pulled for individual consideration.

Public Comments & Testimony

• Sondra Meyer expressed disappointment over the handling of the Homewood Suites police report and information sharing.
• Alejandro Chavera advocated for fog nets and atmospheric water harvesting.
• Matthew DeShields (Coastal Bend Texas Restaurant Association) stated the association supports the new restaurant fee schedules after collaborating with the Health Department on revised rates.
• David Ainsworth Sr. and Bob Mays (Puronyx) presented a modular offshore desalination concept and expressed interest in partnering with the city.
• Jason Hale discussed groundwater management, noting Texas aquifers are managed at 90% of sustainable production.
• Susie Saldania urged the council to move past the Homewood Suites lawsuit.
• Kristen Cook (South Texas Military Task Force) voiced full support for the resolution to support the Corpus Christi Army Depot (CCAD).
• Jay Followell was removed from the chambers after violating decorum rules.
• Rachel Caballero criticized the city's proposed water spending, arguing it will not provide water to the community and risks bankrupting the city.
• Ajit David alleged a cover-up in the Homewood Suites process, displaying a screenshot of an ordinance being deleted from Legistar.
• Justine Knox supported the Hillcrest aquatic center, arguing against sacrificing the neighborhood.
• Sean Merritt (WebEx) strongly opposed the aquatic center during the drought.
• Nishi George, Justin O'Neill, Taylor Johnson, and Tracy Jonek (WebEx) played video deposition clips from the Homewood Suites case.
• Trey Cranford questioned unknown costs for brine discharge and injection well capacity for the brackish desal project.

Discussion Items

• City Manager's Report: Peter Zanoni highlighted the Texas Recreation & Park Society conference hosted in Corpus Christi (1,200 delegates). Parks staff received state awards.
• Homewood Suites Investigation (Items 25-27): The Council voted to release the executive summary of the external investigation. External Counsel Daniel Ray concluded no prosecutable criminal fraud or forgery was established, the two-reading rule was satisfied, and the ordinance is legally valid, while suggesting five governance reforms. Deputy Chief Billy Readlove confirmed the joint police investigation found no state or federal criminal violations.
• Low-Income Housing Tax Credits (Items 9 & 10): The Council debated the Sea Gulf Villas downtown project, expressing concerns about amenities and parking. Developer David Fournier explained the shift to a mixed-income model. The Council voted to support the tax credit applications.
• Fleet Vehicle Purchase (Item 11): Council members debated the $3.4 million expenditure. City Manager Zanoni argued it is critical for operations and funded by the dedicated Vehicle Equipment Replacement Fund. The resolution passed.
• Corpus Christi Army Depot Resolution (Item 12): Director Ryan Scrobarczyk presented a resolution urging Congress to maintain the 50/50 rule and secure funding. The resolution passed unanimously.
• Water Supply Projects (Items 14-17): The Council approved a series of major water infrastructure items.
  • Reimbursement Resolution ($410M): Passed, allowing the city to spend from its cash pool and reimburse from future bond sales.
  • Brackish Desalination Plant (Item 15): Approved a contract with FCC Aqualia totaling $43.5M, plus $11.5M for site improvements and up to $120M for a pump station and conveyance line. The project is expected to deliver 21.3 MGD within two years at a residential rate impact of $3.38/month. Council members expressed concern over the emergency, no-bid procurement but acknowledged the urgency.
  • Evangeline Groundwater Project (Item 16): Approved amendments totaling over $195M with Garney Companies and Pape-Dawson. The Council debated the risk of an upcoming administrative hearing on standing but voted to proceed with material ordering, with the city manager promising close consultation.
  • Li Ranch Water Rights (Item 17): Approved $38M for the purchase of groundwater rights, contingent on permits.
• Northside Aquatic Center (Item 18): Awarded an $8.7M construction contract. Staff highlighted the federal requirement from the Harbor Bridge process. The Council approved, noting the 18-month build timeline.
• Food Establishment Fee Schedules (Item 21): Adopted new fees in compliance with Senate Bill 1008. An amendment passed to equalize public and private school inspection fees at $150.
• Conservation Plan Committee (Item 22): A motion to expand the committee's scope was discussed. City Manager Zanoni agreed to have staff work on water loss goals and technology evaluations, keeping the committee focused on its primary plan.

Key Outcomes

• Water Infrastructure: Authorized over $600 million in water supply projects, including the Brackish Desalination Plant, Evangeline Groundwater, and Li Ranch rights, alongside the necessary reimbursement resolution.
• Homewood Suites: Voted to publicly release the external counsel's executive summary. Both the Police Department and External Counsel cleared the city of criminal fraud or forgery in the case.
• City Secretary Salary: Approved a salary increase for City Secretary Rebecca L. Huerta to $144,273.52 annually.
• Community Projects: Awarded the contract for the Northside Aquatic Center. Supported tax credit applications for two affordable housing developments.
• Fee Changes: Adopted new food establishment fee schedules with equalized rates for school inspections.