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Council backs proceeding with CCN sale to National Utility Infrastructure and authorizing May election
Summary
Council heard staff's recommendation to transfer portions of Georgetown's out‑of‑city water CCN to National Utility Infrastructure (owned by Bernard Capital Partners). Staff recommended NUI based on operational and regulatory experience; council supported authorizing the May 2 election required by state law to approve the transfer.
City staff recommended that Georgetown proceed with a negotiated sale of portions of its water Certificate of Convenience and Necessity (CCN) that lie outside the city limits to National Utility Infrastructure (NUI), an acquisition target of Bernard Capital Partners, and asked council to authorize a voter election in May.
Caroline Stewart, Strategic Projects Manager, told council the city's service territory grew substantially after the Chisholm Veal acquisition and now includes customers in multiple counties. Staff said the increased out‑of‑city customer base creates legislative and financial risks and that staff sought proposals from neighboring cities and utilities before selecting NUI as the recommended proposer following interviews.
Stewart summarized evaluation criteria: the proposers' experience acquiring and operating utilities, regulatory experience to secure required voter approval and PUC sign‑off, readiness to provide day‑one operations and short‑ and long‑term rate stabilization plans, and access to capital to build required infrastructure. Staff said NUI proposed a purchase price of $60,000,000 subject to due diligence; municipal consent language must show a legal minimum (the agenda caption referenced $20,000,000 to cover minimum debt only), which Stewart clarified did not reflect the negotiated price.
Under Texas law, Stewart said, Georgetown voters must approve a CCN transfer in the same manner as a bond election; that constrains the city's ability to advocate for the transaction, so staff will provide factual information and educational materials. Council members expressed strong support for advancing the transfer to the election stage and noted public outreach and clear explanation to voters will be critical. Staff announced plans for a press conference and coordinated public fact sheets.
What happens next: if council places the proposition on the ballot and voters approve it, staff and NUI will still need to complete detailed due diligence and negotiate purchase and service agreements, coordinate PUC approvals and implement operational transfers. The council did not take a final sale vote at the workshop; the item was on the consent agenda for later action.
