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Josephine approves transfer of service area to Nevada Special Utility District; swap tied to future service limitations
Summary
The council approved an agreement transferring a portion of the city's certificate of convenience and necessity (CCN) to Nevada Special Utility District and accepting other acreage in exchange; staff said Nevada SUD has applied to TCEQ and that the swap reflects practical service limitations.
The City of Josephine Council on May 12 approved an agreement with Nevada Special Utility District to transfer part of the city’s certificate of convenience and necessity (CCN) for water service to Nevada SUD and to accept roughly equivalent service area acreage in exchange.
Why it matters: City staff said the swap reflects the practical ability to serve parts of the area now: Josephine cannot provide service to certain tracts in the near term, and Nevada SUD is positioned to serve them. In exchange, Josephine will gain other areas the city expects to be able to serve in the future. Staff noted the acres are not an exact one-for-one match and that floodplain areas influence acreage comparisons.
Staff told the council that Greenwood MUD has filed an application with the Texas Commission on Environmental Quality (TCEQ) to become a municipal utility district (MUD). The CCN swap requires TCEQ oversight; staff said notice of Nevada SUD’s application was received and that the matter will be posted on the city website. The city noted that members of the public may submit comments during TCEQ’s review period.
Council voted to approve the transfer agreement 3-0. Staff said they would publish the mapping and the TCEQ notice and that the swap had been negotiated over several months.
Next steps: City staff will publish the maps and notices, and TCEQ will process the application and any public comments as part of its standard review.
