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Water Resources Advisory Committee c11ECe 17,16 N
11:30 a.m. —April 22, 2004 ,_+ CO SPO-
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Members present: Lena Coleman, Herman R. Johnson, Carola Serrato, Dr. Jane
Stanford, Kimberly Stockseth, and Jon Kent. Members absent: Capt. Paula Hinger,
John Kiggans, Dr. Karen Rue. City Council Member representative present: Henry
Garrett
Staff Present:
Eduardo Garana, Director of Water
Danny Ybarra, Assistant Director of Water
Mucio Garza, Water System Optimizer
Yolanda R. Marruffo, Public Education and Marketing Coordinator
Max Castaneda, Water Resources Management Advisor
Rosie Cortez, Recording Secretary
Visiting Guests: James Dodson and Ron Roach
Chairperson Carola Serrato called meeting to order at 11:50 a.m. A quorum was
present.
Eduardo Garana, Director of Water, provided an update presentation on the Padre
Island Desalination Project.
I. Approval of January 15, 2004 Minutes
Herman Johnson made a motion to approve the minutes. The motion was seconded by
Kimberly Stockseth and approved unanimously.
II. Update on the Padre Island Desalination Feasibility and Siting Plan
Mr. Garana stated that the City was studying the feasibility of a 3.0 mgd desalination
project, consisting of a horizontal directional drilling (HDD) well field somewhere in the
Chicot Aquifer and a 1.0 mgd reverse osmosis facility. Infrastructure would be built to.
support-a-5 mgd pumping capacity. In -addition, consultants-are continuing their-work
on the 2 mgd aquifer storage and recovery (ASR) capacity. He stated that we are
looking for deep well injection for the byproducts, site work and transmission piping
upgrades to the existing Padre Island Pump Station, which is estimated to cost $23.2
million including contingencies.
Mr. Garza asked if the storage capacity would fluctuate based on the volume of water
pumped in or out of the ASR. Mr. Garana stated that over time the City could draw 2
mgd from the ASR site without deteriorating the site.
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Mr. Garana stated that the City had to validate population and water demand figures for
the Padre Island and Mustang Island area (Port Aransas community). He stated that
the consultant would perform a hydraulic model to identify deficiencies in the existing
structures. In addition, the consultant would study water supply alternatives, evaluate
the pump station, conduct a pilot plant evaluation, and design a detailed facilities plan
with the intent of verifying the technical information used in a June 2003 report. He
stated that a test bore was done at the Sea Pines Subdivision in Padre Island, which
went down around 800 feet. The site was checked every five feet to ascertain the
geology. He stated that a test bore was done at the new Fire Station on Mustang Island
using a similar process. Mr. Garana stated that the preliminary conclusion showed that
ASR was feasible; however, additional test wells would be performed as the City moves
forward with the concept of ASR production phase. Salinity figures are higher than
expected. Salinity figures are expected to drop, but not less than 3,000 per liter.
Consultants are attempting to get a better handle on population and water demand
projections since both Padre Island and Port Aransas are growing. Both entities
depend on the existence of the 24" waterline that crosses the Laguna Madre. Mr. Kent
asked if a second pipeline was being considered. Mr. Garana stated that the City was
studying a second pipeline to cross the Laguna Madre; however, there were countless
other-issues involved such as state permits and various environmental concerns. He
stated-that-it-was important to design a system to handle the maximum daily demands.
Mrs. Serrato asked if it was based on 200+ per capita per day. Mr. Garana stated that
he would have to get back with her. He stated that elevated storage tanks help meet
peak hour demands; however, the projected demand is expected to increase
tremendously by year 2050 based on projected population growth.
He stated that the City was studying six (6) pipeline alternatives because more than
likely, the waterline would cross at Laguna Shores & Yorktown since it was an optimum
point and allows the City to minimize cost. He stated that the City would consider
installing a 60" pipeline to cross the Laguna Madre, although the pilot project remains
presently unauthorized. He stated that the City's emphasis is on the ASR project,
which consists of gathering additional data, types of improvements, storage,
transmission capacity, and pumping capacity. The information has to be broken into
short term, near term, and long term. Presently, the City and the consultant are working
on the short term needs, which are-driven-by immediate needs running on-simultaneous
tracks-to-meet-the—June-30, 2004-deadlirre. Some-of-the-work-is-beingdoneby Water
construction crews and some by private contractors. Near term improvements are
being-implemented over the next--two years and-long-term improvements over a longer
period of-time.
The short-term improvements storage for the ASR project include confirming the sizing
and cost of the Laguna Madre crossing; pumping capacity, and modifying the existing
Padre Island pump station. He stated that the City has three small pumps at the Padre
Island Pump Station; however, two pumps will be replaced to substantially increase the
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capacity to pump out of the system. Several years ago, a 1.1 million ground storage
tank was built in Padre Island. On the near term, the City will have to add elevated
storage tank to comply with TCEQ rules. An elevated storage tank is a better storage
option than using a hydropneumatic tank.
Mr. Garana stated that the City would have to increase the transmission capacity,
evaluate the condition of the existing 24" pipe which was installed in 1972. The pipeline
crosses the Intracoastal Canal from between Snoopy's Restaurant and the JFK
Causeway.
Mrs. Serrato asked if the City had determined that it would install a 60" pipeline. Mr.
Garana stated that they were considering adding a small line and perhaps phase in
another one at a later date.
Mr. Garana stated that long-term water storage would address many of the issues on
Padre Island. The development of an ASR project would allow the City to take
advantage of the variations in water use during a 12-month period, utilizing a 24" line.
In summer months, water production climbs to 110-115 mgd; however the O. N.
Stevens Water Treatment Plant has a rated capacity of 167 mgd. During winter
months, consumption drops to 70 mgd. The City could maintain water production at 75
mgd, allowing-the extra water to be pumped into ASR during the-winter months. We will
continue working--at the Padre Island Pump Station or somewhere-else in Padre Island.
He stated that both Padre Island and Mustang Island areas have the potential to grow.
Mr. Garana stated that the City Council would be presented with a report on June 30 to
validate reverse osmosis, ASR,. byproduct disposal, sitting permit, and update project
costs. At the same time, City staff will complete a water supply alternative report,
which includes final recommendations for near term and long term water supply
improvements.
Presently, City staff is working on completing short-term pump station improvements
before summer 2004 peak demands. Permits are needed from Texas Department of
Transportation and Nueces County to run the 24" pipeline from Packery Channel which
lies within Nueces County. After that, work will continue with the ASR and RO pilot
projects.
Dr. Stanford asked about- the possibility-of-public/private partnerships. Mr Garana
stated-thatlhey-h-ad-not-currie up with-anything;--however; they-did-have-to look-for-
additional funding from outside sources to minimize the impact. She asked if the project
was dependent on that type of funding. -Mr. Garana-stated -that-the project would be
done.
Mr. Garana stated that the City has done an excellent job in its decision-making,
providing the region with sufficient water until the year 2052. Padre Island is faced with
a transportation issue. Water is available on the northwest side, but it needs to be
transported from there to Padre Island.-The transportation problem can be solved.
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Council Member Garrett asked about the Whitecap area. Mr. Garana stated that
Whitecap is a very sensitive area and was in the middle of neighborhoods. He stated
that the available ground is reserved for theextension of the Whitecap Wastewater
Treatment Plant because as it grows, the plant will also have to grow. Mr. Garrett
asked what the difference between 3,000 and 4,000 mgd capacity would be. Mr.
Garana stated that he would have to get back with him on that question.
Mrs. Serrato asked if the Committee would have updated cost figures by June 30,
2004. Mr. Garana stated that the information continues to be refined up to the very
end.
Mr. Kent asked if the committee would be meeting before the June 30 date. Mrs.
Serrato asked whether the Committee should get information prior to the Council
getting it. Mr. Kent stated that when the Committee first started to meet, he thought it
would provide input to the City Council and if we are not allowed to this, then he would
question the function and existence of the Committee. Mr. Garana stated that his job
was to give information out. Mr. Kent stated that if feedback comes after a decision is
made, then he doesn't see a need to have a Committee. Mrs. Serrato stated she had
talked to Ed Garana, Ron Massey, Max Castaneda, and Yolanda Marruffo on this
issue. She-stated-that it is important to get information to -make their job easier in
working with--the-City Council. Mr. Garana stated that this was a-very straightforward
situation in that there are no alternatives. Staff has to solve it by breaking it into
components. Mr. Kent stated that the City is debating whether to place a pipeline or a
small RO system and that it was a very big decision. He stated that the RO system
was very costly. Mr. Garana stated that the City Council had given the staff a directive
to make a business decision. Staff has to give proper, logical and systematic feedback.
If the City had not started working on the 60" line at the O. N. Stevens Water Treatment
Plant to the Southside Pump Station, the City would be years behind any chance of
trying to cross the Island with a new pipeline. In the situation now, a desalination plant
would be an excellent way to get water to Padre Island, but it maybe more expensive.
Ms. Coleman stated that they had drawn up the rules of the Committee and maybe they
needed to revisit those rules. She assumed the Committee was about making
recommendations, but without any authority to issue directives. She expressed that the
Committee was organized to be a liaison with the people in the community, carry the
information to them,-and tell-them what was-going on. Ms. Coleman asked if-copies of
the—Committee—rules--could be passed out. Ms. Marruffo passedcopiesout-to- all
members.
Mr. Kent read the duties from his copy stated that, "the Advisory Committee shall
provide advise to the City Council, City Manager, Water Superintendent in, matters- of
water resource management, and that the City Council, City Manager, Water
Superintendent may look to the Committee to obtain reviews." He stated that the rules
talk about reservoir, distribution, demand, etc. He stated that according to what he
read, the Committee was there to give_advice to the City Council, City Manager, and
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Water Superintendent. Dr. Stanford stated.that it serves as the liaison. Mr. Kent sated
that the rules talk about being representatives for the various community interests.
Mrs. Serrato asked if anyone had any objections to meeting on June 17 before the June
30 Council meeting, with an understanding that City staff might not have complete
details as they work until the last moment on the presentation. Mr. Garana stated that
they could give an update, but it would not be refined. Mrs. Serrato stated that she
thought this group could still help to facilitate by posing questions.
Dr. Stanford asked about the engineering issues involved. Mr. Garana stated that he
was looking at it as an engineering issue and that he was hard pressed to get water to
Padre Island. Mr. Kent stated that a desalination plant would be more costly than a
pipeline and that the Committee could give their input. He stated that's where they can
give input to the community. Mr. Garana stated that staff needed feedback when they
heard something from the community. Dr. Stanford asked how many Committee
members actually received any feedback from the community. Ms. Coleman asked
how many meetings had been held. She thought some community meetings were
supposed to be held. She stated that people that attend meetings help to carry the
message to others. Dr. Stanton stated that the Committee needed to seek input on
information basis, to tell the public that they are available on certain days and to bring
us their questions.
Mrs. Serrato stated that the Committee could work with Ms. Marruffo on what methods
can be used to solicit more input from community, but that the Committee needed to be
informed, and asked if June 17 would work with everyone for another meeting which
was right before the Council meeting. Mrs. Serrato stated that she would work on
getting the meeting scheduled.
Dr. Stanton asked if the findings (including issues, problems, or positive things) of the
three projects running simultaneously would be shared with the Committee. Mr.
Garana stated that there are actually two projects, running simultaneously. Turner
Collie and Braden, Inc (TCB) a consulting firm, was assisting the City with the
Governor's grant for $500,000. TCB is working to develop the feasibility aspects of the
project. Mr. Castaneda stated that a 50% meeting would be held next month to update
the community on the project and that the report was due in September. The Texas
Water Development Board would select one of the three reports to submit to the
Legislature at its next session. Mr. Kent asked-if-an about update would be presented
on-the-big-project Mr. Castaneda stated that an update had been-provided-to-the
Committee at the last meeting.
Ill. Presentation on the Potential Groundwater Resources - -Evangeline Aquifer
Development and ASR Project Adjacent to the Mary Rhodes Pipeline
Mrs. Serrato stated that Mr. Don Roach from the San Patricio Municipal Water District
(SPMWD) was present to discuss the potential for groundwater resources and was
accompanied by Mr. James Dodson who previously held the position of Regional Water
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Director with the City several years ago.
Mr. Dodson stated that he was working on developing public/private partnerships. He
stated that they offer capital resources to the private sector, with opportunities for new
and innovative methods of managing water and providing affordable water resources.
He stated that City of Corpus Christi has done an excellent job of insuring the
availability of water for the future. The City has done an excellent job on providing
dependable water resources; water needs to be made affordable. In the course of
making it safe, expenses have increased the cost of water. Regional entities have
acquired a lot of assets that can help make water affordable in the region. That's where
his role would come into play.
Mr. Dodson stated that most people are familiar with the fact that the City entered into
contract to purchase water from Lake Texana and built a pipeline that was finished in
1998. The current use of the pipeline is very significant in that 40-50% of the area's
water is coming out from Lavaca-Navidad River Basin. In 1999, the City purchased
senior water rights.to 35,000 acre feet of water per year in the Colorado River from the
Garwood Irrigation Company. All of these purchases came with significant capital
expenditures. He stated that the Mary Rhodes Pipeline was the largest capital project
ever done by the City at $125 million, but 50 to 60 percent of the pipeline capacity is an
unused asset. -He-stated-that the Garwood water rights project was a good-investment
of City money to secure-water for the future. These were good investments; however,
the community is doing a good job of conserving water and making more efficient use
of water, plus anticipated growth has not occurred. He stated that there is less growth
than expected. He stated that Corpus Christi is in an enviable position of having even
more water for the future, but commercially, there is no increase in demand. Therefore,
the cost of water has increased because capital costs are not being spread to a larger
user base and significant fixed costs are still residing within that use.
Mr. Dodson discussed some alternatives. He stated that systems that focus on surface
water availability are largely determined on the occurrence of droughts. He stated that
the worst case scenario and the highest use scenario should be matched. Droughts
have been a driving force for aggressive water management in South Texas. The
amount of available water resources is determined by a combination of storage and
stream flow. He stated that in the fall of 2001, we were able to fill both reservoirs. He
stated that the last drought (25% of capacity) of record was the driving force that made
the-Council take notice and-resulted in their decisiorrto build the Mary Rhodes Pipeline.
Mr. Dodson stated that Texas surface water belongs to the State of Texas and can be
used -under- a -series of permits. The State-can appropriate-water rights if it is used
efficiently. No payment is made to the State for the use of water. -Expenses typically
come from infrastructure to make use of the water. The State began issuing special
conditions on permits to address environmental needs, making it harder to gain water
rights. So, new sources of water are becoming scarce. Most water rights have been
appropriated and most senior water rights are under public control, in as much as
Garwood Irrigation was privately held when the City purchased their water rights. The
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remaining 132,000 acre feet were bought by LCRA who controls all major water rights
in the Colorado basin. Some privately-owned surface and irrigation water rights still
exist which are being purchased by public-ownerships.
Mr. Dodson stated that changes in climate patterns make us vulnerable to droughts.
Efforts to make us drought proof has depended on having a sufficient supply of surface
water and conservation efforts. Droughts have economic impacts especially on
commercial users. Industry told us that if they had to close down, they might not start
up again. Another alternative is to develop new supplies.
Mr. Dodson stated that he is employed by Goliad Sands, a group of seven different
properties and two different families with properties in southwestern Refugio, southern
Nueces, and Kleberg counties. Mr. Garana stated that it was agreed that Mr. Dodson
would not promote his company's properties otherwise, similar companies should be
invited. Mrs. Serrato asked Mr. Dodson to continue with a general presentation on
surface and groundwater resources.
Mr. Dodson stated that the State of Texas has considered ground water to be
associated with the surface estate, which has the right to access and use ground water
under the property. It is a property right in Texas. For many years, the right of capture
has been the prevailing law-in that the property owners has unlimited right to develop
and beneficially use ground waters associated with the property even if-it-impacts
surrounding property.
Under current laws, management of local groundwater by a conservation district is
intended to prevent interference between landowners and everyone has development
access to ground water. The idea is to keep landowners from exceeding the system's
long-term ground water capacity. Mr. Dodson stated that this area has a vast aquifer
system-called Gulf Coast Aquifer which extends from the-Rio Grande Valley all the way
to the panhandle of Florida and is comprised of several aquifer systems. The large
tracts of land are associated with generations of family ownership and have made
history in land management. Current groundwater development is focusing on the
Evangeline Aquifer; its geologic name is the Goliad Sand. Previous studies have
shown billions of acreage in ground water storage within the Gulf Coast Aquifer. Mr.
Dodson reviewed a typical ground water cycle beginning with rainfall, which generates
runoff and stream flow. The water is typically placed in storage facilities to supply
dependable amounts of water. Return flows are generated that go back into the water
cycle. When you -add-a-vertical--compon-ent-of ground- water; which also-begins-as-
rainwater, the recharge goes directly along the stream to generate recharge in aquifer
systems. The-water-goes into storage-in large aquifer-systems and goes back up to the
surface through stream flow or pumping. Mr. Dodson further stated that the
groundwater resources needed to be integrated. One of the ways would be to do ASR
on a broader scale and to make more effective use of surface and ground water
resources. In the big picture, some water rights are only available during certain flow
periods. Junior water rights cannot be exercised except during flood conditions. To
make use of those rights, water must be stored in the reservoir and divert water during
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ASR periods. Water could be diverted during high flow conditions and stored during
medium flow conditions, and later withdrawn and used during drought conditions. Mr.
Dodson stated that their strategy would be to move from an annual type of cycle where
summer peaks occur to a multi-year drought cycle system. By having access to private
property rights in developing ground water, they hope to establish public/private
partnerships to facilitate conjunctive projects. He stated that it was possible to build a
pipeline to the Colorado River, to access the City's Garwood Irrigation water, with the
possibility of managing water throughout South Texas. He stated that this area could
establish a South Texas State Water Bank and be the central source of water. Mrs.
Serrato asked if the Gulf Coast Aquifer extended all the way to Mexico. Mr. Dodson
stated that areas below the Corpus Christi region experienced diminished rainfall and
recharge. Mrs. Serrato asked if there was an opportunity for public/private partnerships
from. Corpus Christi to beyond Houston. Mr. Dodson stated that there is, but there was
a need to increase reliability and affordability of water throughout the State of Texas
with the intent of matching partners with these projects and not focusing on just one
community, but several communities to spread the cost. Dr. Stanford asked if the
partnerships would work even though the demand for water was relatively flat. Mr.
Dodson stated that was not the case in all the State. If we go into the San Antonio
area, the Austin area, the Rio Grande Valley, the demands are different because
supplies have been cut, while their usage has continued to increase. Mr. Garana stated
that the City, in its regional- approach, looked at groundwater as a viable component.
Lake Texana is a small-reservoir; but a very prolific reservoir. Mr. Garana stated-that
the City was cognizant of the area's needs. Mr. Garana stated that the City has two
wells in Campbellton. He stated that the City is working on a reservoir operating plan
that includes all components. City of Corpus Christi has always been working toward
drought-proofing the region and trying to minimize the cost. The cost of raw water is a
numerator/denominator issue, with the denominator driving the cost of water up. Mr.
Garana agreed that the City needed to draw new customers. Mr. Garana stated that
until the City acquires those new customers, existing raw water customers of the City of
Corpus Christi system will have to pay that additional amount cost.
Mr. Roach from San Patricio Municipal Water District (SPMWD) agreed that a reduction
in the number of customers would result in higher water costs. SPMWD does not want
to get locked up into one system and are looking at everything that's out there. A few
years ago, San Patricio and Aransas Counties considered an area that looked very
promising. Now that the water districts got formed, they have been approached.
SPMWD will not deny its customers-the -opportunity-to -find less expensive water
resources. SPMWD -issued a Request-for Proposals. Thos-e- proposals would--be-
evaluated in May. Mrs. Serrato asked if the District would be selecting one or both
companies and if-there-was -something that prohibited-using both. He--stated- that they
had a limited amount of funds; however, it would be a shame to lose the two
companies, because someone else would eventually pick them up.
Mr. Garana asked if SPMWD would be willing to relinquish their total volume of annual
diversions allowed under their raw water contract. Mr. Roach stated that they did not
want to relinquish any water diversions. Mr. Garana stated that the City has to protect
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the regional system, and that everyone understood there was going to be a cost. He
stated that we need more customers to use water efficiently, but in order to spread the
cost of water; we have to get the denominator to grow. Industry which includes
Northshore industry and Southshore industry does not want Garwood water to be
jeopardized and pending legislative issues could result in loss of water rights if they are
not perfected. Mr. Roach stated that there were large amounts of brackish water
located in northern sections of Aransas County. Mr. Roach stated that there is an
opportunity to use ASR. Mr. Garana stated that the City is investigating ASR. He
stated that when water was flowing at 6,000 cubic feet per second, there is still capacity
at the O. N. Stevens Treatment Plant. The City can treat another 20 million a day into
aquifer storage and recovery. The City has the world's renowned experts on ASR
under contract. Mr. Roach stated that there are some tremendous areas for a big ASR
project. Mr. Garana stated that he had been approached by someone to see if they
could buy water from Mary Rhodes Pipeline. One concern that customers have is we
have Garwood rights. If we activate those rights, you are immediately talking about
some major money. Mr. Garana asked if the Mr. Roach if they were against giving up
their right to divert water. Mr. Roach stated SPMWD did not want to give up their right
to divert water from the City unless there was another cheaper source of water
available. Mr. Garana stated that the actions of the SPMWD will push the cost of water
up if it comes to fruition. Mr. Roach stated that the City and SPMWD needed to work
together with the private/public partnerships. Mr. Garana stated that we have worked
as a region. Mrs. Serrato stated-that the whole discussion taking place has-a-domino
effect. If you are losing your customer base, we are all going to feel it. For instance,
the South Texas Water Authority (STWA) used to pay 23 cents per 1,000 gallons of raw
water. The cost of raw water has risen to 90 cents per 1,000 gallons. If the City adds
40 cents per 1,000 gallons for pipeline operations, it will have a huge impact on its
customers. She stated that in order to add new members, you have to have economic
development. To retain existing members, you have to offer an affordable product and
relate well-to your customers. Mr. Garana stated that it cost the City of Corpus Christi
to buy and maintain water available for the area. Mr. Roach stated SPMWD uses 20%
of the Lake Texana water; so therefore, they pay 20% of the expenses. Mr. Roach
stated that the decision should be shared by the entire regional planning group. Mr.
Roach stated that the whole region was involved and that a decision has to be made.
Mr. Garana stated that there are big expenses no matter how you go. Mr. Roach stated
that up until a few months ago, the focus was on brackish water and now on Garwood.
Mr. Garana stated that industry seems to want it more. He stated that a large amount
of money-was spent on infrastructure. He stated that-the-Mary Rhodes Pipeline is
underutilized because-it was-designed-forthe-future-growth, and-th-e-Woo-dsboro pump
station will deteriorate if it is not run. Mrs. Serrato stated that she is faced with the
same-thing. Mr. Garana stated that itwasbusiness and-the-City of Corpus Christi had
no hidden agendas. Mrs. Serrato stated that STWA customers were told that they
needed it and that water was too precious to take chances. She said that the timing and
tradeoffs are critical and opportunities that exist today must be considered as a regional
approach. Mrs. Serrato stated that it should be a regional approach in the true sense,
and not just the City of Corpus Christi saying this is what's good for everybody and for
everybody to say "okay." Mr.-Roach stated that they had never argued the good of the
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acquiring Lake Texana or Garwood water rights. Mr. Roach stated that they are looking
to the future. Mr. Garana stated that the complaint he is getting is that the cost of raw
water is going up and he doesn't know how to reduce costs. Mr. Dodson stated that
fixed costs that went into acquiring assets can now be put into play to generate
additional customers. Mr. Dodson stated that through our merging to take that
discussion to the Council at a level that says we have been looking at this and this, but
maybe now we can try to put things together to make sure that everybody is achieving
the same goals which is a reliable and affordable water supply. He stated that the City
was in the best position to benefit at the affordability. Mr. Castaneda stated that is why
the City was working with SAWS, LCRA, etc. Mr. Garana stated that we are always
trying to protect the region. Mr. Castaneda stated that one of the questions was how
are we acting regionally. Mr. Garana stated that we fully supported Senate Bill 1 and
we pay in to the regional planning group. Mrs. Serrato stated that everyone pays. Mrs.
Serrato stated that she was hoping everyone would understand that conjunctive use is
a thing of the future, to effectively manage, supply, demand and affordability. Mr.
Garana stated that conjunctive use has always been a concept, but it was just not the
right time. Mr. Garana stated that it had been offered to the City in the past. Mr.
Dodson stated that previously, the City went out and acquired leases with individual
property owners, but the change is now that we can present a united package of
services and be on the other side of the partnership. Mr. Garana stated that everyone
needed to be aware that such a partnership came with a cost. Mrs. Serrato stated that
she hoped everyone was open-minded and that the region should not miss out on-the
opportunity. Mr. Roach agreed that it did come with a cost, but believed that it would be
a reduced cost. Mr. Garana stated that we are already looking at ASR to defer capital
costs. By using other techniques, we can defer a huge capital investment by expanding
the existing 0. N. Stevens Water Treatment Plant, which is among the state's largest
water treatment plant. Mr. Roach stated that if their consultant deems the use of
groundwater to be feasible, they would consider such an agreement. SPMWD
industrial base customers pay a higher cost than Corpus Christi. If SPMWD goes
forward with the agreement, that figure would go from $2.19 to $1.75 per 1,000 gallons.
Mr. Garana stated that they purchase water at $0.95 per thousand from the Mary
Rhodes Pipeline and the Nueces River. Mr. Roach stated that SPMWD cannot tell
their customers that they will not consider finding affordable water resources. Mr.
Garana asked if he was still going to be buying water from the City. Mr. Roach stated
that they would still be buying water from the City at a higher rate. Mr. Castaneda
asked if a study had been done on the price elasticity. Mr. Roach stated that the
informationisavailable and it was shared with all theircustomers. Mr. Roach stated
that-the City of Rockport-and--many otherareasare sitting on top of ground water.-
There is nothing to stop them from seeking to acquire groundwater on their own
especially-if they can-get-reduced water rates.
At this time, it was noted that time to adjourn was approaching. Mrs. Serrato stated that
Best Management Practices has a June 30 deadline and could still be presented at the
next meeting. The Consumer Confidence Report had a July 1 deadline and could also
be handled at the next meeting.
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Mrs. Marruffo stated that the re-appointments had been done at the last Council
meeting. A new membership list was distributed.
New or Old Business
Next meeting was set for June 17, 2004
Adjourn
Meeting adjourned at 1:35 p.m.
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