Regional Wastewater System
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Sister Grove Regional Water Resource Recovery Facility; 301-0426-16; Resolution No. 25-49; Conveyance of Property
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SUBJECT
recommendation
Adopt Resolution No. 25-49 authorizing the Executive Director to execute documents necessary to convey property to Rayburn County Electric Cooperative, Inc. abutting its New Hope Substation facility.
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PURPOSE
Rayburn County Electric Cooperative, Inc. (Rayburn) owns the New Hope Substation (NHS), which powers NTMWD facilities at Sister Grove Regional Water Resource Recovery Facility (Sister Grove). Grayson Collin Electric Cooperative (GCEC) owns the facilities that transmit power from NHS to Sister Grove. Rayburn desires to buy land abutting NHS to be used as a regional equipment yard for GCEC. NTMWD would benefit from proximity when GCEC must maintain and repair facilities at Sister Grove.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 25-49, “A Resolution for Conveyance of Fee Simple Property to Rayburn County Electric Cooperative, Inc. at Sister Grove Regional Water Resource Recovery Facility, Project 301-0426-16.”
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Contracting Party: |
Rayburn County Electric Cooperative, Inc. |
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Scope: |
Conveyance of Fee Simple Property |
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Project: |
No. 301-0426-16: Sister Grove Regional Water Resource Recovery Facility |
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Amount: |
$42,000 |
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Committee: |
This will be a Champion Update at the October 22, 2025, Real Estate Committee meeting |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
3.3: durable Strategic Partnerships |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☒ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☐ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
PROJECT PURPOSE
• The purpose of this consent agenda item is to authorize the Executive Director to execute documents for the conveyance of fee simple property to Rayburn Country Electric Cooperative, Inc. (Rayburn).
• NTMWD previously conveyed a 6-acre tract of land at Sister Grove to Rayburn to construct the New Hope Substation (NHS) to power Sister Grove facilities
o Declaration of 6 acres surplus to the District’s needs: March 2018, Administrative Memorandum No. 5179, Resolution 18-32.
• Rayburn required an additional 3.28 acres for stormwater conveyance & detention, and erosion control around the eastern and northern substation boundaries
o Authorized July 2022, Consent Agenda Item No. 22-07-06, Resolution No. 22-33.
• Grayson Collin Electrical Cooperative (GCEC) transmits power from Rayburn’s NHS to NTMWD facilities.
• GCEC entered into a Laydown Yard (LY) Lease Agreement with NTMWD from December 2022 through July 2024 for the storage of equipment necessary to construct its facilities at Sister Grove.
• Rayburn desires to purchase the LY area to provide GCEC with a regional equipment yard.
• The LY site abuts the northern boundary of the NHS property and is encumbered by:
o Electrical easements for overhead power:
§ Rayburn, 100’ width - authorized: May 2022, Consent Agenda Item No. 22-05-07, Resolution No. 22-22
§ GCEC, variable width - authorized: October 2023, Consent Agenda Item No. TMP-23-26, Resolution No. 23-37
o GCEC 15’ width electric easement along Sister Grove property line at CR 336 - authorized: October 2023, Consent Agenda Item No. TMP-23-26, Resolution No. 23-37
o 300’ width buffer zone to be dedicated by plat
• These encumbrances reduce the utility of the laydown yard area to others.
• The 5.33-acre LY was appraised & these encumbrances were accounted for in the valuation.
• Rayburn agrees to pay market value for the land as determined by the appraisal.
• Rayburn shall pay all accrued expenses associated with the transaction.
• NTMWD pipeline and site operations and maintenance will not be impeded by the conveyance.
• This land is surplus to the needs of the District.
FUNDING
Funding in the amount of $42,000 is to be made available from the Regional Wastewater System Capital Improvement Fund.