Regional Water System
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Leonard Water Treatment Plant; Project No. 101-0600-21; Resolution No. 26-38; Conveyance of Property
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SUBJECT
recommendation
Adopt Resolution No. 26-38 authorizing the Executive Director to execute documents necessary to convey property to Rayburn Country Electric Cooperative, Inc. at the Leonard Water Treatment Plant site.
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PURPOSE
Rayburn Country Electric Cooperative, Inc. (Rayburn) operates the Leonard Substation (Substation) on land it owns within the Leonard Water Treatment Plant (LWTP) property boundary. The Substation supplies power to the LWTP. Rayburn desires to buy land abutting the Substation site to construct a new substation, which will allow for a redundant feed for LWTP.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 26-38, “A Resolution for Conveyance of Fee Simple Property to Rayburn Country Electric Cooperative, Inc. at Leonard Water Treatment Plant.”
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Consultant: |
Rayburn Country Electric Cooperative, Inc. |
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Scope: |
Conveyance of Fee Simple Property |
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Project: |
No. 101-0600-21 Leonard Water Treatment Plant, Ph. II |
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Amount: |
$218,236 |
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Committee: |
This was a Champion Update at the August 26, 2026, Real Estate Committee |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
3.3 Durable Strategic Partnerships 2.4 Systematic Risk Management |
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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
PROJECT PURPOSE
• The purpose of this consent agenda item is to authorize the Executive Director to execute documents for the conveyance of fee simple property to Rayburn Country Electric Cooperative, Inc. (Rayburn).
• NTMWD Board of Directors previously authorized the conveyance of a 4.31-acre tract of land at the Leonard Water Treatment Plant (LWTP) site to Rayburn to construct the Leonard Substation (LS) needed to power LWTP facilities: Administrative Memorandum No. 5331, Resolution 19-02.
• Rayburn plans to construct an additional substation and provide redundancy to LTWP.
• NTMWD owns an unimproved tract of land consisting of approximately 5.007 acres (Property) abutting the LS site.
• The Property is partially encumbered by overhead power lines within a utility easement granted to Rayburn: Consent Agenda Item No. 19-11-08, Resolution 19-57.
• Rayburn seeks to purchase the approximately 5.007-acre tract for the additional station.
• Rayburn agrees to pay market value for the land as determined by the appraisal.
• NTMWD pipelines and site operations and maintenance will not be impeded by the conveyance of the property.
FUNDING
Funding in the amount of $218,236 will be credited back to the Regional Water System Construction Funds.