Regional Water System
title
Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline; Project No. 101-0633-23 and No. 101-0642-24; Guaranteed Maximum Price; Work Authorization Nos. 1 and 2; Engineering Services During Construction; and Owner Advisor Services During Construction
end
SUBJECT
recommendation
Authorize execution of an amendment to a Construction Manager At-Risk (CMAR) agreement with Garney Companies, Inc for a Guaranteed Maximum Price (GMP) amount of $538,548,359.96 for the Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline; funding for Work Authorization No. 1 in the amount of $155,690,889.88; funding for Work Authorization No. 2 in the amount of $196,826,974.87; funding to Black & Veatch Corporation in the amount of $2,458,012.00 for Engineering Services During Construction; funding to Freese and Nichols, Inc. in the amount of $1,211,835.00 for Engineering Services During Construction; and funding to Plummer Associates, Inc. in the amount of $15,813,500.00 for Owner Advisor Services during Construction.
end
PURPOSE
The Texoma Raw Water Pipeline No. 2 will parallel the existing Texoma Raw Water Pipeline and provide additional capacity to NTMWD’s water transmission system from the Lake Texoma Pump Station to the water treatment facilities in Wylie and Leonard. The Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline will divert raw water from Lake Texoma to the Leonard WTP for blending with Bois d’Arc Lake water. The CMAR has submitted the GMP for the Texoma Raw Water Pipeline No. 2 and Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline projects.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize the Executive Director to execute an amendment to the CMAR agreement for a GMP and execute Work Authorization Nos. 1 and 2 to the CMAR, Engineering Services Agreements, and Owner Advisor Agreement as follows:
CMAR: Garney Companies, Inc.
|
Consultant: |
Black & Veatch Corporation Freese and Nichols, Inc. |
|
|
|
|
Owner Advisor: |
Plummer Associates, Inc. |
|
|
|
|
Scope: |
Guaranteed Maximum Price Work Authorization Nos. 1 and 2; Engineering Services During Construction; Owner Advisor Services During Construction |
|
|
|
|
Project: |
No. 101-0633-23, Texoma Raw Water Pipeline No. 2 No. 101-0642-24, Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline |
|
|
|
|
Amount: |
$538,548,359.96 for the Guaranteed Maximum Price $155,690,889.88 for Work Authorization No. 1 $196,826,974.87 for Work Authorization No. 2 $2,458,012.00 for Engineering Services During Construction for Project No. 101-0633-23 $1,211,835.00 for Engineering Services During Construction for Project No. 101-0642-24 $15,813,500.00 for Owner Advisor Services During Construction |
|
|
|
|
Committee: |
This will be an item on the August 26, 2026, Water Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
|
Strategic Objective: |
1.1 High Quality Services 1.4 Reliable and Resilient System Capacity |
|
☐ Regulatory Compliance |
☐ Asset Condition |
|
☒ Capacity |
☐ Redundancy/Resiliency |
|
☐ Relocation or External Requests |
☐ Operational Efficiency |
|
☐ Safety |
☐ Administrative |
|
☐ Policy |
☐ Other _____________ |
BACKGROUND
PROJECT PURPOSE
The Texoma Raw Water Pipeline No. 2 increases the capacity of raw water transfer from Lake Texoma to the NTMWD treatment facilities and to the Greater Texoma Utility Authority (GTUA) customer, the City of Sherman. To meet projected future demand, a new parallel 84-inch transmission line from Lake Texoma to the Howe Balancing Reservoir is needed by 2029.
With the existing 72-inch line, the proposed 84-inch parallel line, and a separate Texoma Pump Station Improvements project, the District will have the ability to deliver approximately 220 million gallons per day (MGD) of raw water from Lake Texoma, 120 MGD would be conveyed to the Wylie WTP complex and approximately 70 MGD of additional flow would be diverted to the Leonard WTP, and approximately 30 MGD delivered the City of Sherman.
To increase the utilization of raw water rights, water from Lake Texoma will be blended with raw water from Bois d’Arc Lake at the Leonard Water Treatment Plant Facility. This additional supply will fully utilize the planned future water treatment plant capacity of 280 MGD. Texoma to Leonard Raw Water Pipeline will also be an 84-inch gravity line connecting to the existing Texoma Raw Water Pipeline south of Howe Reservoir to convey water to Leonard Terminal Storage Reservoirs.
PROJECT COMPONENTS
• 27 miles of 84-inch raw water pipeline from Lake Texoma Pump Station to the Texoma Balancing Reservoir in Howe and associated connections and appurtenances.
• 9 miles of 84-inch raw water pipeline from the existing 96-inch Texoma Raw Water pipeline south of the Howe Balancing Reservoir to the existing Bois d’Arc Raw Water Pipeline upstream of the Terminal Storage Reservoirs at the Leonard WTP site.
• OPCC - $592M
WORK AUTHORIZATION NO. 1 Associated Bid Packages (BP)
• BP 1.10 - Steel Pipe Supply (Texoma)
• BP 1.20 - Steel Pipe Supply (Leonard)
• BP 1.30 - Large Diameter Valves
• BP 1.40 - Flow Control Valves
• BP 1.50 - Small Diameter Valves
• BP 1.60 - Combination Air Valves
• BP 1.70 - Magnetic Flow Meter
WORK AUTHORIZATION NO. 2 Associated Bid Packages
• BP 2.00 - Pipe Installation (Leonard)
• BP 2.20 - Pipe Installation (Texoma Segment 2)
• BP 2.30 - Pipe Installation (Texoma Segment 3)
Included in the GMP are funds allocated to both the Owner Contingency Allowance and the Contractor Contingency Allowance. These allowances are established, listed and priced on the submitted Risk Register log to address anticipated project uncertainties. The Owner Contingency Allowance is controlled by the Owner and is used for Owner-directed changes or unforeseen project needs, while the Contractor Contingency Allowance is controlled by the CMAR and is used to address construction-related uncertainties within the approved project scope. At the completion of the project, all unused allowances are returned to NTMWD.
The following tables detail the costs of the GMP and Work Authorization Nos. 1 and 2:
Guaranteed Maximum Price PN 633 PN 642 Total
Cost of Work $333,286,219.03 $98,182,695.17 $431,468,914.20
CMAR Fixed Construction
Support Costs $12,314,925.79 $3,627,850.59 $15,942,776.38
CMAR Time Sensitive
Construction Support Costs $14,547,934.46 $4,285,674.64 $18,883,618.10
CMAR Fee $4,392,513.00 $1,540,719.58 $5,933,232.58
(Pipe Supply Only) (5.00%)
CMAR Fee $18,407,696.93 $5,052,622.77 $23,460,319.70
(Excluding Pipe Supply) (7.50%)
Owner Contingency $21,234,840.00 $11,617,572.00 $32,852,412.00
(based on Risk Register)
CMAR Contingency
(based on Risk Register) $7,741,065.00 $2,316,022.00 $10,057,087.00
Totals $411,925,203.21 $126,623,156.75 $538,548,359.96
Work Authorization No. 1 PN 633 PN 642 Total
(WA No.1)
Cost of Work $96,354,085.23 $40,940,399.17 $137,294,484.40
CMAR Fixed Construction
Support Costs $3,560,283.45 $1,512,747.75 $5,073,031.20
CMAR Time Sensitive
Construction Support Costs $4,205,855.82 $1,787,048.42 $5,992,904.24
CMAR Fee
(Pipe Supply Only) (5.00%) $4,392,513.00 $1,540,719.58 $5,933,232.58
CMAR Fee
(Excluding Pipe Supply) (7.50%) $1,397,237.46 $637,786.89 $759,450.57
Totals $109,150,524.39 $46,540,365.49 $155,690,889.88
Work Authorization No. 2 PN 633 PN 642 Total
(WA No. 2)
Cost of Work $115,351,589.00 $54,972,896.00 $170,324,485.00
CMAR Fixed Construction
Support Cost $4,262,241.21 $2,031,248.51 $6,293,489.72
CMAR Time Sensitive
Construction Support Cost $5,035,096.86 $2,399,566.91 $7,434,663.77
CMAR Fee N/A N/A N/A
(Pipe Supply Only) (5.00%)
CMAR Fee
(Excluding Pipe Supply) (7.50%) $8,651,369.18 $4,122,967.20 $12,774,336.38
Totals $133,300,296.25 $63,526,678.62 $196,826,974.87
Total Funding to be Awarded $242,450,820.64 $110,067,044.11 $352,517,864.75
WA No.1 and WA No. 2
Work Authorizations Nos. 1 and 2 represent only a portion of the Guaranteed Maximum Price (GMP); the remaining balance will be incorporated into future work authorizations for future Board action.
ENGINEERING SERVICES AGREEMENTS (ESA)
The ESA with Black & Veatch Corporation is for engineering services for two years of construction related to the Texoma Raw Water Pipeline No. 2.
The ESA with Freese and Nichols, Inc. is for engineering services during the estimated two years of construction for work related to the Texoma Raw Water Pipeline to Leonard Water Treatment Plant (WTP) Pipeline.
The services will consist of:
• Monthly project management, coordination, and start-up/commissioning support
• Participation in pre-construction and construction progress meetings, including site visits.
• Review of shop drawing submittals, requests for information, proposed change orders, payment applications, and operation and maintenance (O&M) manuals.
• Review and evaluation of project closeout documentation and development of record drawings.
• Environmental monitoring for special conditions associated with Texas Water Development Board (TWDB) funding.
Description Amount
Texoma Raw Water Pipeline No. 2 $2,458,012
(Project No. 101-0633-23 - B&V)
Construction Basic Services $1,886,680
Construction Special Services $571,332
Texoma Raw Water Pipeline to Leonard WTP Pipeline $1,211,835
(Project No. 101-0642-24 - FNI)
Construction Basic Services $1,211,835
Requested Total Amount $3,669,847
OWNER ADVISOR AGREEMENT
The additional services with Plummer Associates, Inc. are for owner advisor services for two years of construction related to the Texoma Raw Water Pipeline No. 2 and the Texoma Raw Water Pipeline to Leonard WTP Pipeline.
The services will consist of:
• Overall responsibility of establishing and managing the Construction Management Team.
• Develop and maintain a Construction Management Plan.
• Quality Assurance and Quality Control
• Cost Management
• Schedule Management
• Issue Management
• Change Management
• Project Status Reports and Invoicing
Description Amount
Texoma Raw Water Pipeline No. 2 $11,295,250
(Project No. 101-0633-23)
Texoma Raw Water Pipeline to Leonard WTP Pipeline $ 4,518,250
(Project No. 101-0642-24)
Requested Total Amount $15,813,500
FUNDING
This project will be funded in accordance with the Cost Share Agreement between NTMWD and GTUA executed on May 28, 2026. GTUA will be invoiced $2,901,498.10.
Funding to Garney Companies Inc for Work Authorizations No. 1 and 2 for Project No. 101-0633-23 in the amount of $228,423,483.59 (minus GTUA share) is to be made from the Regional Water System SWIFT Construction Funds, contingent upon the Texas Water Development Board (TWDB) approval of the contract and release of funding. $11,125,838.95 is to be made available in the Regional Water System Construction Funds.
Funding to Garney Companies Inc for Work Authorizations No. 1 and 2 for Project No. 101-0642-24 in the amount of $110,067,044.11 is to be made from the Regional Water System SWIFT Construction Funds contingent upon TWDB approval of the contract and release of funding.
Funding for engineering services in the amount of $3,669,847 ($2,458,012 to Black & Veatch Corporation- Project No. 101-0633-23 and $1,211,835 to Freese & Nichols, Inc. - Project No. 101-0642-24) is to be made available in the Regional Water System Capital Improvement Fund.
Funding for additional Owner Advisor services in the amount of $15,813,500 ($11,295,250 - Project No. 101-0633-23 and $4,518,250 - Project No. 101-0642-24) to Plummer Associates, Inc. is to be made available in the Regional Water System SWIFT Construction Funds contingent upon TWDB approval of the contract and release of funding.