Regional Water System
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Cost Share Agreement Between North Texas Municipal Water District and Greater Texoma Utility Authority for City of Sherman Project No. SHM23287, Lake Texoma Pump Station Improvements, and NTMWD Project No. 101-0633-23, Texoma Raw Water Pipeline No. 2; Resolution No. 26-24
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SUBJECT
recommendation
Adopt Resolution No. 26-24 authorizing the execution of a Cost Share Agreement between North Texas Municipal Water District (NTMWD) and Greater Texoma Utility Authority (GTUA) for the Lake Texoma Pump Station Improvements and Texoma Raw Water Pipeline No. 2 Projects (Projects).
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PURPOSE
This is a cost share agreement that outlines the financial responsibilities between NTMWD and GTUA for engineering design, procurement of necessary real estate, easements and right-of-way, construction, providing construction management and inspection services, of the Projects.
RECOMMENDATION
The Executive Director, NTMWD staff, and Saunders | Walsh recommend the Board of Directors authorize the Executive Director to execute an agreement as follows:
1. Authorize the Executive Director to execute a Cost Share Agreement with Greater Texoma Utility Authority.
2. Adopt Resolution No. 26-24, “A Resolution Authorizing the Executive Director to execute a Cost Share Agreement between the North Texas Municipal Water District and the Greater Texoma Utility Authority Regarding City of Sheman Project No. SHM23287, Lake Texoma Pump Station Improvements, and NTMWD Project No. 101-0633-23, Texoma Raw Water Pipeline No. 2.”
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Contracting Parties: |
North Texas Municipal Water District (NTMWD) and Greater Texoma Utility Authority (GTUA) |
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Purpose: |
Cost share responsibility between NTMWD and GTUA for Shared Facilities of Texoma System |
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Committee: |
This will be an item on the May 27, 2026, Water Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
1.1 High Quality Services 3.2 Engaged Members, Customers and Stakeholders |
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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
PURPOSE
• Lake Texoma Pump Station Improvements project, constructed by the City of Sherman, consists of designing and construction of 114 linear feet of the 54-inch pipeline and associated appurtenances.
• GTUA has funded the costs for the Lake Texoma Pump Station project. NTMWD is to contribute 75% of the cost of pump station improvements of the shared facilities.
• Texoma Raw Water Pipeline No. 2 project consists of designing and constructing approximately 25 miles of 84-inch pipeline from Lake Texoma to the Texoma Balancing Reservoir in Howe, Texas.
• GTUA is to contribute 25% of the actual cost of the shared pipeline section from the Lake Texoma Pump Station to the Sherman Water Treatment Plant (10.4 miles). GTUA is to contribute 2% of the actual cost of the shared pipeline section from the Sherman Water Treatment Plant to the Rayburn Energy Station (11.2 miles).
• These shared facilities benefit both NTMWD’s Regional Water System (RWS) and GTUA as our partner in this Agreement, providing additional raw water services to their system.
COMPONENTS OF THE AGREEMENT WITH NTMWD AND GTUA
• This agreement establishes a cost allocation of 75/25 between NTMWD and GTUA, based on volume distribution.
• City of Sherman has completed the design and construction of improvements to the City’s designated pumps and associated infrastructure in association with the Lake Texoma Pump Station Improvements project. NTMWD has use of the proposed 54-inch pipeline header from any side of the pump station and associated appurtenances.
• NTMWD will design and build an 84-inch poly-coated, mortar-lined steel pipeline with associated valves and appurtenances from the existing Lake Texoma Pump Station to the Texoma Balancing Reservoir in association with the Texoma Raw Water Pipeline No. 2 project.
• Rather than have NTMWD pay its 75% share of the costs associated with the Lake Texoma Pump Station Improvements project, NTMWD shall provide this to GTUA in the form of a credit against GTUA’s obligations to contribute to the Texoma Raw Water Pipeline No. 2 project.
• GTUA shall pay NTMWD an amount equal to 25% of the GTUA share of the Texoma Raw Water Pipeline No. 2 project minus the amount of the credit from the Lake Texoma Pump Station Improvements project, no later than August 1, 2026. This will allow NTMWD to procure pipe materials.
• GTUA shall pay to NTMWD the remaining 75% of the GTUA share of the Texoma Raw Water Pipeline No. 2 project no later than March 1, 2027. This will allow NTMWD to award a construction contract for the Texoma Raw Water Pipeline No. 2 sections shared with GTUA.
• NTMWD shall deposit and maintain all funds paid by GTUA pursuant to this agreement in a separate, interest-bearing account. All interest or investment earnings accrued on the deposited funds shall be the sole property of GTUA.
GTUA approved this Agreement at its May 18, 2026, Board Meeting.
FUNDING
Provided by GTUA