Joe McComb 7.0. Bos 16 May 24, 2022 Honorable Charles W. Zahn, Jr Chairman - Port of Corpus Christi Authority 400 Harbor Drive Corpus Christi, Texas 78401 Dear Chairman Zahn and Honorable Port Commissioners, I know each of you to some extent, however Chairman Zahn and I have known each other and been friends for over 40 years. I know it has been over 40 years, because when I first was elected to the City Council in 1983, I met a very nice person, Dorthy Zahn who was the Assistant City Secretary. One of the first questions I asked her was, are related to a fella ‘named Charlie Zahn? “Yes, | am” she said. It was during that term on the City Council that I began my educational journey into the water supply issue thatthe City of ‘Corpus Christi and the Coastal Bend were facing, with our sole source of water ‘being Lake Corpus Christi. After having to implement water rationing, the Council began to chart a path to secure additional water supply to make sure that would not ‘happen again. That term on the council was the most difficult for me in my 24 years of being an elected official. 'm here to address my concerns with the Port of Corpus Christi’s Resolution: which passed April 19,2022 followed by your White Paper ona 5-2 vote on May 2, 2022. I have concems about both. Mr. Strawbridge’s comments in the Caller Times on May 20, 2022, shatter the intent and purpose of your resolution. As to the White Paper, it does not identify the author and I DO ‘NOT want to know who wrote it. The Paper lacks historical knowledge and understanding of the City’s pursuit of obtaining additional water supply. I want to applaud Mayor Guajardo and the response resolution to the Port. Couneil for their continued support for the desalination project AND their But first the history that has led to this fiasco we now are experiencing, On September 6, 2018, POCC CEO, Mr. Sean Strawbridge sent a letter to Mr. Keith Selman, Interim City Manager which states: “Ar a special Commission meeting on September 5, 2018, the Commissioners instructed me to present the following alternatives to the City for consideration: (1) the Port transfer the TPDES permit applications to the City immediately for ‘the City to complete; (2) the Port assigns the TPDES permits to the City immediately upon receipt from the TCEQ; or (3) the Port withdraws the TPDES permit applications and cancels the Port's permitting efforts. We request written direction from the City on which of these alternatives the City prefers. “The Port Authority has no preference on the location of any future desalination plant. Our sole objective is a guaranteed uninterruptable supply of water for the Port's current and future industrial customers. Please let us know as soon as racticable whether the City wants the Port to withdraw or transfer the TPDES applications as described above,” Nine days later, September 14, 2018, Mr. Selman sent the City’s response to Mr. Strawbridge which states: “In our prior studies and meetings with our Industrial stakeholders and consultants, we considered building a desalination plant at Harbor Island but concluded that this was not the best location for our. ind that of Indi Therefore, the City of Corpus Christi is not interested in the Port pursuing a TPDES permit (discharge permit at Harbor Island for our needs.” “We believe it would be in the best interest of both parties 10 enter into a Memorandum of Understanding (MOU) as soon as possible in the event the Port’s La Quinta terminal site is determined to be the best location for the City’s needs. The City’s legal department will draft and forward a MOU for your review in the immediate future.” pg.dSo, Commissioners, the POC has spent $4 million to date continuing to pursue of a permit on Harbor Island AFTER Mr. Strawbridge received Mr. Selman’s very clear City response. Mr. Strawbridge failed to honor his offer as stated in option 3, in total disregard of what you, the Commissioners instructed” me to present”, as he stated in his letter. His decision has caused considerable damage to the relationships, trust, and integrity of the POCC with all those who deal with the POCC, ‘You have only begun to spend money for the necessary permits for desalination on Harbor Island which the city rejected four years ago. ‘The White Paper states: “Tie reason for this action was simply at that time the primary purveyor of water, the City of Corpus Christi, was not aligned in the thought that permitting for desalination was urgent.” ‘That statement has no basis in fact. Just during my last tenure on the City Council, substantial effort was taken. In April 2017 the City Council passed a resolution in support of a full SWIFT application with SWIRET bonds approved in August that year. Background work for permitting began in eamest in 2017 including site evaluation and selection. There were multiple City Council public meetings which were televised regarding the project beginning in 2017 and continuing since. In October 2018 large water customers begin voluntarily contributing 25 cents per/1000 gallons per month on their bill, to a designated future water supply fund with the City. In January 2019, at a Council goal setting workshop one of our top three goals was securing a non-interruptible water supply. In 2020, the city moved forward with a SWIFT 2 application and received another loan for design and construction of the plant, along with securing all the actual permits required. Ie further states: “Te Port of Corpus Christ submited its NPDES permit application in May 2018.” This was done with the Port's full knowledge that the city was moving forward with the desalination project which accelerated in early 2017. And, given the City’s subsequent definitive actions, the Port certainly could have withdrawn their Harbor Island permit application. It also has: several other statements that are inaccurate and demand comment. FIRST: “A qualified seawater desalination operator could operate the faciliy under the Port of Corpus Christi’s NPDES permit, ensuring oversight by the local governments, including the Port Authority and the City of Corpus Christi, while ensuring a competitive wholesale rate structure for the City of Corpus Christi to enjoy « healthy margin for its own costs and profitability.” ‘This confirms the POCC views the pursuit of an additional water supply as a “profitability” operation. The City of Corpus Christi strives for and “enjoys” being able to provide its customers with a superior water supply at the most economical ates. Profit is not and should not be part of the calculations for rate setting for water as a vital public resource! SECOND: Bluff” he facility would have a direct connection from Harbor Island to the City’s closest reament facility (Flour This statement is an absolute impossibility for this simple reason: the City of Corpus Christi DOES NOT HAVE a water treatment facility in Flour Bluff. In addition, it is very doubtful that the pipeline systems that would be used could carry any major volume of water. Furthermore, the existing pipelines are critical to supplying TREATED water to Port Aransas and Padre Istand. You can’t use them to carry untreated desalinated water and maintain their use as an important part of the treated water supply system. I see this statement as a demonstration of a lack of understanding of water operations in general and the overall system specifically. ‘THIRD: it goes on to say: “or via Nueces Water Authority No. 4 (Mustang Island.” ‘There is no Nueces Water Authority No. 4. I assume you meant Nueces County Water Control and Improvement District NO.4. Just think about that statement, Do any of you really believe the Nueces County Water Control and Improvement District pg. 2NO. 4 Board of Directors would enter a contract with the POCC and subject their water supply and customers to possible extortion, after what they recently witnessed and experienced given the actions the POCC used related to the City of Port ‘Aransas and its marina? Thank you for your time. I trust you will address the information presented, may be the first time for some of you, and take whatever steps necessary you deem wise to rectify this unfortunate, costly situation and the damage it has done, not only to the POCC but for all of us, Sincerely, cc. Honorable Catherine Tobin Hilord - Port Commissioner / Secretary Honorable Rajan Ahuja -Port Commissioner Honorable David P. Engel - Port Commissioner Honorable Gabe Guerra - Pert Commissioner Honorable Bryan Gulley - Port Commissioner Honoreble Wes Hoskins - Pert Commissioner Mr. Sean Strawbridge ~ Por of Corpus Chist/CEO +400 Harbor Drive Corpus Christ, Texas 78401 Honorable Paulette M. Gusjardo — MayorfCty of Corpus Christ Honorable Michael T. Hunter ~ Counciimember At-Large Honorable John Marinz - Councimember At-Large Honorable Mike Pusley ~ Councimember At-Large Honorable Billy A. Lerma ~ Councimember District 1 Honorable Bon Molina ~ Counelmember Distiet 2 Honorable Roland Barrera ~ Councimember District 3 Honorable Greg Smith Councilmember Disct 4 Honorable Gi Hemandez ~ Councimember District ‘Mr. Peter Zanoni~ Corpus Chis Cty Manager P.O, Box 6277, (Corpus Christ, Texas 76469 ENOL: Letter to Port of Corpus Christi Authority Commissioners on May 24, 2022 ATTACHMENTS: 1) White Paper: Harbor Island Seawater Desalination Project. 2) Letter from Sean Straworidge 9/6/2018 to Keith Selman 3) Response from Keith Selman 9/14/2018 (9 days Iater) to Sean Strawbridge 4) DRAFT Memorandum of Understanding (MOU) between POCCA and City of Corpus Charis Email #1 from Dan Grimsbow, 2/6/2019 at 1:32PM (5 months later) to Sara Garza Response to email #1 from Sara Garza, 2/6/2019 @ 1:47PM (16 minutes lator) to Dan Grimsbow Email #2 from Dan Grimsbow 1/29/2020 @ 9:21AM (11 months later) to Sara Garza Response email #2 from Sara Garza 2/11/2020 @ 7:36AM (13 days later) to Dan Grimsbo Me letter comments for POGCA 5 14 2022.dox pe. 3