Regional Water System
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Interlocal Agreement between the North Texas Municipal Water District (NTMWD), Upper Trinity Regional Water District (UTRWD) and the Greater Texoma Utility Authority (GTUA) for a Regional Water System Study
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SUBJECT
recommendation
Approve Interlocal Agreement (ILA) between the North Texas Municipal Water District, Upper Trinity Regional Water District, and the Greater Texoma Utility Authority for a New Regional Water System Study.
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PURPOSE
NTMWD, UTRWD, and GTUA wish to support a study exploring the development of a new regional water system to provide service to parts of Grayson, Cooke, and Collin Counties including the City of Celina and the Mustang Special Utility District.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize the Executive Director to execute an Interlocal Agreement with UTRWD and GTUA.
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Scope: |
Execution of an Interlocal Agreement |
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Project: |
Study Exploring a New Regional Water System |
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Amount: |
$269,238.33 |
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Strategic Objective: |
3.3 Durable Strategic Partnerships. |
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Committee: |
This will be an item on the April 24, 2024, Water Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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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
• The Greater Texoma Utility Authority, Upper Trinity Regional Water District, and North Texas Municipal Water District signed a Memorandum of Agreement in February 2024 regarding a new GTUA Regional Water System Study referred to as “The Study” here forward.
• GTUA, UTRWD, and NTMWD are Region C Water Plan Water Providers (Water Providers) who provide water to individual Water User Groups in Collin, Denton, and Grayson Counties.
• GTUA is currently a customer of NTMWD and this Study will not expand that defined service area.
• GTUA, UTRWD, and NTMWD supply existing members and customers who are experiencing aggressive population growth resulting in rapidly growing water demands.
• Water User Groups in Collin, Denton, Cooke, and Grayson Counties are experiencing surging populations and are making inquiries related to obtaining additional water supplies.
• GTUA has planned to become a regional water supplier and may be best positioned to address growing water supply desires of Water User Groups not currently served by a Water Provider and to supply other Water User Groups in proximity to GTUA’s service area. This creates an opportunity for GTUA to explore the development of a new water system to serve a portion of this area.
• GTUA, UTRWD, and NTMWD desire to jointly participate in the Study and to share in the costs to explore the possibility of developing a new regional water treatment and transmission system to enable GTUA to serve parts of Collin, Cooke, Denton, Grayson Counties, including the City of Celina and the Mustang Special Utility District.
• GTUA, as manager for the Study, shall be responsible for: (1) identifying the current water demands that GTUA can address in Collin, Cooke, Denton, and Grayson Counties to include the City of Celina and the Mustang Special Utility District; (2) identifying GTUA’s available water supply to meet current water demands of the Service Area; (3) identifying the quantity of additional water supply needed to address future water demands (or a portion of that demand) of the Service Area; (4) identifying feasible water supply alternatives to address future water demands of the Service Area; and (5) determining the feasibility of implementing a new regional water treatment and transmission system for the Service Area.
• The new Study will build upon a 2020 study by GTUA exploring an expanded system and allow the GTUA to fulfill its mission to provide treated water and be a wholesale provider to more communities in this region along with Collin-Grayson Municipal Alliance (CGMA) and/ or other entities.
• GTUA, UTRWD, and NTMWD mutually agree that Freese and Nichols, Inc. shall be the contractor for the Study.
• The ILA and Scope for the Study is attached.
• GTUA will consider approval of the ILA at their April 19, 2024, Board meeting. UTRWD will consider approval of the ILA at their May 2, 2024, Board meeting.
• Total cost for the Study is $807,715.00 which we be split equally between the parties as shown below:
NTMWD: $ 269,238.33 (33 %)
UTRWD: $ 269,238.33 (33 %)
GTUA: $ 269,238.33 (33 %)
FUNDING
Funding in the amount of $269,238.33 for NTMWD’s proportion of funding is to be made available from the 2023-24 Annual Operating Budget (Account #: 100-5714-531490 Raw Water Development).