Corpus Christi City Council Meeting - May 12, 2026

The Corpus Christi City Council held a wide-ranging meeting on May 12, 2026, addressing critical water supply policies, infrastructure contracts, and a heated dispute over a hotel development incentive agreement. The council approved a Level 1 Water Emergency ordinance, awarded a major contract for the Reclaimed Water for Industrial Use Project, and voted to issue a notice of default against Elevate QOF for an allegedly altered FEMA document.

Consent Calendar

• Item 13 (Temporary Staffing): After debate, the council awarded a single $6 million, three-year contract to local firm AGCM of Corpus Christi, rejecting a proposed contract with ND Global Consulting Services due to concerns over the firm's relevant experience.
• Item 11 (Water Testing Services): Approved a one-year service agreement with Eurofins Environment Testing South Central for up to $232,725 for chemical testing of water and wastewater samples. Councilwoman Paxson raised concerns about the significant cost increase from prior years, which staff attributed to expanded testing for new wells and health department samples.
• Item 14 (Fencing Contract): Approved a $1,272,770 construction contract with Bonco, LLC for a chain-link fence and motorized access points at the Asset Management Service Center. A $132,000 decorative entry element was defended as necessary for a "sense of place" and security.
• Other routine consent items were approved unanimously.

Public Comments & Testimony

• Al Cruz Tennis Center: Multiple speakers (Ron Woods, Julia Garcia, Lois Woods, Mark Tapia, Alejandro Castaneda) opposed the proposed conversion of tennis courts to pickleball at the Al Cruz Tennis Center. They argued that the Elizondo Foundation's operator agreement was violated when programs were shifted entirely to the HEB Tennis Center, and that usage data based only on point-of-sale transactions was inaccurate. City Manager Peter Zanoni directed the Parks Department to put the conversion "on hold" pending a full briefing to the council.
• Homewood Suites/FEMA Slide (Items 15/23): A series of speakers (Zachary Bornstein, Robin Cox, Trevor Slowick, Douglas Allison, Tracy Jenk, Nishi George) played video clips of deposition testimony where City Manager Peter Zanoni and EDC CEO Heather Holbert purportedly agreed that an altered FEMA slide constituted a misrepresentation or forgery designed to secure $2 million in incentive funding. They urged the council not to reward such behavior.
• X2O Water Proposal: Sean Merritt and Melinda de los Santos spoke in favor of the council giving serious consideration to the X2O desalination proposal, criticizing the prior meeting's treatment of the presenters.
• Other Speakers: Rachel Caballero criticized the council for inconsistent treatment of vendors. Eddie Flores requested ADA-compliant sidewalks and addressed homelessness. Rising Tide Ministries thanked the council for funding their Safe at Home and Wave Academy programs.

Discussion Items

• Item 18: Level 1 Water Emergency Policies: CCW Chief Operating Officer Nick Winkleman presented the updated drought contingency plan, featuring a 25% curtailment for all customer classes, a 6,000-gallon allocation for residential customers, and surcharges ($4/1,000 gallons over allocation, $8/1,000 over baseline). Amendments were adopted: (1) allowing vehicle and boat washing using a handheld hose with a positive shutoff nozzle or 5-gallon bucket (Mayor Guajardo), and (2) removing a specific reference to the Inner Harbor desalination facility as an example of a future water source (Councilwoman Campos). The ordinance was approved on first reading.
• Item 19: Utility Payment Policies: Councilman Cantu pushed for better payment plans for seniors and veterans, arguing that a 50% down payment for reconnection is unaffordable. Utility Billing Office Manager Margaret Moran assured the council that the 50% is a guideline and staff works compassionately with customers, often leveraging 23 partner non-profit agencies. The council received the presentation and directed staff to explore formalizing a needs-based assistance program.
• Item 17: Reclaimed Water for Industrial Use Project: The council approved a $16,194,400 Construction Manager-at-Risk (CMAR) contract with Reytec Construction Resources for a 10.5-mile force main from the Oso Wastewater Treatment Plant to Greenwood. Councilman Scott noted the project will deliver 10-16 MGD of non-potable water, reducing strain on the potable system.
• Executive Session Items (Real Estate and Default):
  • Gas Storage Project: Approved real estate purchases for an underground natural gas storage facility (112 acres for $1,066,850 and 2,909 acres for $23,277,520).
  • Homewood Suites Default: Councilman Hernandez made a motion to determine an event of default against Elevate QOF for misleading material representations regarding the FEMA floodplain map. A motion by Councilwoman Paxson to postpone the matter to the next meeting (May 19) failed. After extensive debate, the council voted to determine a default, sending a formal notice and triggering a 60-day cure period. The vote was 4-3 with one abstention.

Key Outcomes

• Level 1 Water Emergency Ordinance: Approved on first reading with amendments allowing boat/vehicle washing with shutoff nozzles.
• Reclaimed Water CMAR Contract: Awarded to Reytec Construction Resources for $16,194,400.
• Temporary Staffing: Sole-source 3-year contract awarded to local firm AGCM of Corpus Christi for $6 million.
• Gas Storage Land: Real estate purchases totaling ~$24.3 million approved for underground gas storage.
• Elevate QOF Default: Notice of default approved for alleged misrepresentations in securing Type B incentives.
• Al Cruz Tennis Center: City Manager places conversion plans on hold pending review.
• Water Supply Update: Briefing received; contract for Inner Harbor desalination expected June 2nd.