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Josephine council approves swap of water service territory with Nevada SUD

2896894 · February 10, 2025
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Summary

Council approved an agreement to swap retail water service areas between the City of Josephine and Nevada Special Utility District, allowing contiguous parcels to be served consistently; the developer will pay petition costs to file the CCN change.

The City of Josephine council voted to approve an agreement to swap portions of retail water service territory with Nevada Special Utility District (Nevada SUD) after a presentation from the developer's attorney.

Developer attorney Victor Cristalas of the law firm Coats Rose said the swap would move a roughly 50-acre tract into Nevada SUD's Certificate of Convenience and Necessity (CCN) and move an approximately 47-acre tract into the Josephine CCN so that the larger development tract would be served consistently. "All we're asking for is just a swap of those service areas," Cristalas said. He added that the developer would bear the petition costs associated with filing for the CCN exchange.

The change was requested because the 50-acre tract is part of a larger property that the developer intends to include in a municipal utility district; making the service areas contiguous under Nevada SUD will simplify utility service and permitting for that development. Cristalas told the council that Nevada SUD staff had prepared the item for a February 6 meeting but could not act because they lacked a quorum and expect to consider it at their February 20 meeting.

City staff confirmed wastewater service would remain separate (a package plant will serve wastewater) and that this swap concerns retail water only. The council approved the agreement and directed staff to proceed with the steps needed to file the petition to the Texas Commission on Environmental Quality (TCEQ) or other required agencies.

The developer will pay any costs related to the CCN petition; no dollar amounts for filing fees were specified at the meeting. Council discussion did not identify any legal objections; staff and representatives of Nevada SUD were reported to have been consulted prior to the council action.

The approval was taken as part of the consent agenda and recorded as approved by the council.