Regional Water System
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Authorization of Execution of Interlocal Agreement Between North Texas Municipal Water District and Greater Texoma Utility Authority for the South Transmission Pipeline Project; Resolution No. 25-55
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SUBJECT
recommendation
Authorize execution of Interlocal Agreement (ILA) between North Texas Municipal Water District (NTMWD) and Greater Texoma Utility Authority (GTUA) for the South Transmission Pipeline Project (Project).
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PURPOSE
This agreement outlines the responsibility for NTMWD to provide engineering design, procure necessary real estate, easements, and right-of-way, provide construction management and inspection services, and perform maintenance and operation of the Project. GTUA funds the entirety of the Project, including construction. Participating Customers are Gastonia Scurry Special Utility District, College Mound Special Utility District, Becker-Jiba Special Utility District, and North Kaufman Water Supply Corporation.
RECOMMENDATION
The Executive Director, NTMWD staff and Lloyd, Gosselink, Rochelle & Townsend, P. C., recommend the Board of Directors adopt Resolution No. 24-52, “A Resolution Authorizing an Interlocal Cooperation Agreement Between North Texas Municipal Water District and Greater Texoma Utility Authority for the South Transmission Pipeline Project.”
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Contracting Party: |
Greater Texoma Utility Authority (GTUA) |
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Purpose: |
Transmission Pipeline Project |
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Project: |
South Transmission Pipeline Project |
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Amount: |
NA |
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Committee: |
This will be an item on the October 22, 2025, 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
• Participating Customers requested additional capacity in the South Transmission Pipeline.
• Project consists of designing and constructing approximately 37,000 linear feet of 42-inch pipeline from the Tawakoni 42-inch line to the Kaufman 20-inch line.
• GTUA funds the entirety of the Project, including construction. NTMWD provides engineering design, procures necessary real estate, easements, and right-of-way, provides construction management and inspection services, and performs maintenance and operation for the Participating Customers.
• ILA, between NTMWD and GTUA, benefits NTMWD’s Regional Water System (RWS) and Participating Customers.
COMPONENTS OF THE AGREEMENT WITH NTMWD AND GTUA
• NTMWD agrees to provide services related to the Project’s design, real estate acquisition, construction management, and maintenance and operation. GTUA agrees to fund all aspects of the Project and enter into such contracts as are necessary for the same.
• More specifically, GTUA and NTMWD agree that:
o NTMWD provides reasonable assistance to GTUA toward the goal of satisfying all of GTUA’s requirements for funding through the Texas Water Development Board;
o NTMWD selects and contracts with an engineering services firm (or firms) for tasks that may include, but are not limited to, real estate, easement and right-of-way acquisition, project design and the preparation of plans, specifications and bidding documents, as well as contract administration services. GTUA pays all costs associated with same within 30 days of NTMWD presenting a request for payment to GTUA;
o Project final plans and specifications for the Project are subject to approval of NTMWD, GTUA, and Participating Customers;
o NTMWD provides services for the acquisition of all real estate required for the construction and operation of the Project. All real estate rights acquired are in the name of NTMWD. GTUA pays for all real estate acquired in connection with the Project;
o NTMWD provides construction management and inspection services during the construction phase of the Project. GTUA shall pay for all construction management and inspection services incurred by NTMWD in connection with the Project within 30 days of NTMWD presenting a request for payment to GTUA;
o Operation and maintenance of the pipeline will be in accordance with the Operations and Maintenance Agreement between the NTMWD and the Participating Customers;
o NTMWD assists in the solicitation of bidders/proposers for the construction contract for the Project. All such solicitations are in the name of GTUA and are contracting with the construction company awarded the contract. NTMWD and Participating Customers must approve all construction contracts. GTUA is responsible for the prompt payment of all costs of construction;
o GTUA deposits all proceeds from the sale of its Bonds, as well as any grant funds received for the purpose of providing all or part of the Project, into a segregated, special Construction Fund for the Project to be created and established by the Bond Resolution(s). GTUA draws on and uses the Construction Fund to pay all costs of the Project;
o During the life of the Bonds, GTUA maintains sole ownership of the pipeline until the Bonds are paid in full. Within 60 days of the Bonds being paid in full, GTUA transfers the ownership to NTMWD at no cost.
GTUA approved this Agreement at their October 20, 2025, Board Meeting.
FUNDING
Provided by GTUA and Participating Customers