Title
Consider a memorandum/resolution authorizing a retail water certificate of convenience and necessity service area transfer agreement with the City of Georgetown, in the amount of $5,804.67.
Body
DATE: May 19, 2026
TO: Kent Cagle, City Manager
FROM: Andrew Zagars, City Engineer
SUBJECT: Retail Water Certificate of Convenience and Necessity Service Area Transfer Agreement with the City of Georgetown
BACKGROUND AND FINDINGS:
On December 15, 2020, the City Council directed staff to review transferring a portion of the Georgetown retail water certificate of convenience and necessity (CCN) service area within the City of Killeen Extraterritorial Jurisdiction. Since August 2021, the City has been working with Freese and Nichols, Inc. to evaluate water infrastructure needs to extend the City's water service area south into Georgetown's CCN. On March 21, 2023, city staff briefed Council on the results of this evaluation and Council gave a Motion of Direction to move forward on a future CCN transfer.
On August 20, 2025, Georgetown briefed Killeen's staff on their CCN transfer project. Georgetown proposed selling to Killeen a large portion of their northern CCN that includes 27.4 miles of pipe and 256 customers. Killeen offered to enter discussions for a smaller area of Georgetown's CCN that is identical to Killeen's proposed 2023 CCN transfer area which includes approximately 8,669 acres. Georgetown hired NewGen Strategies and Solutions to perform a statutory compensation analysis of Killeen's proposed CCN transfer area. NewGen's analysis found that no additional consideration is due for the decertification of the CCN transfer area other than payment by Killeen of Georgetown's direct costs of $5,804.67. Georgetown has submitted a retail water certificate of convenience and necessity service area transfer agreement for Council's consideration and approval.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORM...
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