Regional Water System
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Settlement Agreement Between North Texas Municipal Water District, New West Developers LLC and New West Land LLC
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SUBJECT
recommendation
Authorize Executive Director to execute settlement agreement in the amount of $246,067 with New West Developers LLC and New West Land LLC to address impacts on NTMWD property adjacent to Bois d’Arc Lake caused by unauthorized vegetation clearing along the Bois d’Arc Lake Shoreline.
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PURPOSE
This settlement agreement will require New West Developers LLC and New West Land LLC (collectively “New West”) to continue restoration activities and provide payment to NTMWD for past restoration costs and long-term impacts to NTMWD property and Bois d’Arc Lake caused by their trespass and unauthorized clearing activities.
RECOMMENDATION
The Executive Director, NTMWD staff and Saunders, Walsh, and Beard recommend the Board of Directors authorize the Executive Director to execute a settlement agreement with New West Developers LLC and New West Land LLC, as follows:
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Entity: |
New West Developers LLC and New West Land LLC |
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Scope: |
Settlement Agreement (Reimbursement for remedial actions by NTMWD and one-time payment to NTMWD) |
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Payment Amount: |
$246,067 |
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Committee: |
This will be an item on the December 17, 2025, Real Estate Committee agenda. |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
1.1 High Quality Services 1.4 Reliable and Resilient Systems |
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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
• Bois d’Arc Lake (the Lake) is a water supply reservoir developed to meet the needs of the NTMWD’s Member Cities and Customers.
• Given the importance of the Lake as a significant public water supply source for the NTMWD, the NTMWD Board of Directors adopted Resolution 20-53 Authorizing the Adoption, Implementation and Enforcement of the Bois d’Arc Lake Shoreline Management Plan (the “Plan”) to protect and manage the Lake shoreline, protect and maintain water quality within the Lake, promote the safe use of the shoreline and waters by the general public, and allow for some recreational uses to support the economy of Fannin County.
• The Plan establishes guidelines and standards for public and private uses and improvements on NTMWD-owned property along the Bois d’Arc Lake shoreline
• In December 2023, Administrative Memorandum 23-5974 authorized amendments to the Plan to reflect current administrative systems and processes, update agreement templates, and provide additional guidance to future applicants seeking approval for certain shoreline uses and improvements
• NTMWD owns all lands around the perimeter of the Lake below elevation 541’ mean sea level (MSL) in fee simple (i.e., the Lake shoreline)
• New West Land LLC owns approximately 100 acres adjacent to the Lake shoreline, which is being developed by its affiliate, New West Developers LLC, for residential use. These entities are referred to collectively as “New West”.
• In June 2024, individuals working on behalf of New West cleared trees and other vegetation on approximately 3.1 acres of NTMWD property without authorization.
• Upon discovery by NTMWD staff of the unauthorized vegetation modification, a cease and desist letter was sent to New West by NTMWD legal counsel directing them to halt all activities on the NTMWD property and to submit a plan to restore the NTMWD property.
• In January 2025, NTMWD filed a complaint with the Texas Commission of Environmental Quality (TCEQ) that New West failed to implement their Stormwater Pollution Prevention Plan (SWPPP), stormwater controls, and the controls installed had not been maintained.
• After multiple requests by NTMWD, New West did not provide a restoration plan. Consequently, NTMWD employed its own consultants and contractors to develop and implement a restoration plan.
• The purpose of the restoration plan was to restore damaged NTMWD property and to protect the water quality of the Lake.
• In February of 2025, contractors working on behalf of NTMWD began to implement the restoration plan to restore NTMWD property and install measures to protect water quality.
• In addition to the cost of the activities provided by NTMWD to restore the land and protect water quality, New West has agreed to provide a one-time payment to NTMWD in consideration of the long-term impacts to wildlife habitat and water quality caused by their unauthorized activities, as well as the staff time and resources incurred by NTMWD in dealing with this matter.
• In order to memorialize these actions, NTMWD staff and New West have discussed the execution of a settlement agreement.
SETTLEMENT AGREEMENT PROVISIONS
New West shall pay NTMWD the total sum of $246,067 for restoration activities and ecological impacts, including:
• Reimbursement in the amount of $176,067 for actions taken by NTMWD to restore its property and to protect the water quality of the Lake, including costs for development of a restoration plan, construction activities to restore damaged areas, installing storm water prevention measures to protect water quality and legal fees incurred by NTMWD to address this matter.
• Payment in the amount of $70,000 in consideration of the long-term impacts to wildlife habitat and water quality.
• New West agrees to remedy all TCEQ SWPPP violations that directly or indirectly affected NTMWD Property and the Lake.
• New West assumes obligation for all further restoration and monitoring activities on NTMWD property needed to protect the Lake that shall survive this settlement.
• New West will have completed its obligations under the Settlement Agreement when NTMWD authorizes written approval of acceptance of permanent conditions on New West’s adjacent property that protect against future damages.
• NTMWD shall provide New West right of entry to NTMWD property to accomplish additional maintenance activities as needed to protect NTMWD property and the Lake when authorized by NTMWD.
• New West shall grant NTMWD right of entry to their property so as to allow for easier access by NTMWD to monitor activities.
• New West shall release, indemnify, and hold harmless NTMWD.
• The settlement agreement will substantially conform to the attached draft, with certain exhibits to be included prior to execution.
FUNDING
Proceeds from the Settlement Agreement will be credited to the Regional Water System 2025-26 Annual Operating Budget.