The Agua Special Utility District and the city of Peñitas are moving forward with the opening stages of possibly selling back water rights to the city of Peñitas.
On Tuesday’s meeting with the Agua SUD directors, the board approved creating a committee to have these talks with the city. The committee will be made up of Peñitas Director Lloyd Loya, Agua President Rogelio Hernandez and Vice President Cesar Rodriguez Jr.
These talks are a follow-up to a 2014 interlocal agreement signed by both entities where Peñitas would receive a Water Certificate of Convenience and Necessity, meaning Peñitas would have the ability to have exclusive rights to provide water and sewer services to area residents.
Last February, the Peñitas city council discussed the possibility of having a water plant in their city but agreed to table the item until after the CCN discussions, which are set to begin by next month.
“We’ll create a committee by our October city council meeting, this is just to begin the conversation of receiving a CCN,” Peñitas City Manager Omar Romero said after the meeting.
Both committees will determine the cost of the CCN, Romero added.
“It fluctuates due to value of assets in place, depreciated assets and how much money has to go into approving the infrastructure,” Romero said. “It’s a lot of complicated questions.”