{"MatterTextId":1992,"MatterTextGuid":"E92BB45E-2AA7-4160-81CE-15D7AC77FC33","MatterTextLastModifiedUtc":"2026-10-12T21:09:45.857","MatterTextRowVersion":"AAAAAABRJKQ=","MatterTextMatterId":1963,"MatterTextVersion":"1","MatterTextPlain":"Regional Water System\n\n..title\nAuthorization of the Execution of the Potable Water Supply Contract with Copeville Special Utility District, a current Customer of NTMWD\n\n..end\nSUBJECT\n\n..recommendation\nAuthorize the execution of a new Potable Water Supply Contract with Copeville Special Utility District (Customer), a current Customer of NTMWD.\n\n..end\nPURPOSE\n\nNTMWD and Copeville SUD wish to restate and enter into a new Potable Water Supply Contract. Copeville Special Utility District requests an additional Point of Delivery and requires additional time to construct facilities to receive water from NTMWD.\n\nRECOMMENDATION\n\nThe Executive Director, NTMWD staff, and Lloyd, Gosselink, Rochelle & Townsend, P. C., recommend the Board of Directors authorize execution of a potable water supply contract with Customer.\n\n\nContracting Party:\tCopeville Special Utility District, Texas\t\t\t\t\tPurpose:\tPotable Water Supply Contract\t\t\t\t\tProject:\n\tN/A\t\t\t\t\tAmount:\n\tN/A\t\t\t\t\tCommittee:\n\tThis will be an item on the October 21, 2026, Water Committee meeting agenda\t\n\t\n\n\n\n\n\n\nDRIVER(S) FOR THIS PROJECT\n\nStrategic Objective:\tHigh Quality Services\n                                                                                             3.2 Engaged Members, Customers and Stakeholders\n\t\t\n☐ Regulatory Compliance\t☐ Asset Condition\t\t☐ Capacity\t☐ Redundancy/Resiliency\t\t☒ Relocation or External Requests\t☐ Operational Efficiency\t\t☐ Safety\t☒ Administrative\t\t☐ Policy\t☐ Other _____________\t\n\t\nBACKGROUND\n\nPURPOSE\nNTMWD and Customer previously entered into the Potable Water Supply Contract in August 1998.\nCustomer requested a new Point of Delivery No. 2 to connect to the NTMWD 24-inch conveyance line and additional time to construct facilities necessary to receive water from NTMWD and to renew their Potable Water Contract.  \n\n\nCOMPONENTS OF THE CONTRACT WITH COPEVILLE SPECIAL UTILITY DISTRICT\nContract term of 20 years.\nPoint of Delivery No. 1: Operating\nPoint of Delivery No. 2: Generally located at County Road (CR) 558 curve near CR 605, Farmersville, Texas connecting to the 24-inch Wylie-Rockwall-Farmersville pipeline\nSection 30. Special Condition: Contract allows Customer an additional 36 months to construct facilities to receive water from NTMWD.\nSection 8-A. Additional Point of Delivery Project Costs and Payment: NTMWD has calculated the project costs for the addition of Point of Delivery No. 2 in accordance with NTMWD Operations Policy Manual Section 2.3. The lump sum project cost amount is $7,850,000.00. The Customer has two options to reimburse NTMWD for the project cost: (1) through a lump sum payment or (2) through equal annual installment payments over a 10year period, plus interest, as invoiced by NTMWD. The project cost includes the capacity replacement cost components to ensure the Customer does not double pay for conveyance line capacity.\nExhibit E. Additional Point of Delivery Project Costs and Payment: Table E1 provides the annual payment schedule calculated using the U.S. 10Year Treasury Par Yield Curve Rate, as required by NTMWD Operations Policy Manual Section 2.3. Interest for the 10year annual payment plan was calculated using the applicable Treasury rate as of September 25, 2026 (5.17% as shown in Exhibit E).  The interest rate is fixed and not subject to change.\nCustomer rate shall be equal to the rate set by the NTMWD Board of Directors for Member Cities (“Member City Rate”) plus $0.05. \nCommencing FY 2029, the customer rate shall be made up of two tiers and a cap that includes the Legacy Premium Component, Growth Premium Component, and Effective Premium Cap, as follows: \nLegacy Premium Component:  For that portion of the Customer’s annual minimum equal to its Fiscal Year (FY) 2028 annual minimum plus 5% (“Legacy Volume”) the Customer Rate applied shall be the Member City Rate plus 5-cents (“Legacy Charge”);\nGrowth Premium Component:  For that portion of the Customer’s annual minimum greater than the Legacy Volume (“Growth Volume”), the Customer Rate applied shall be the Member City Rate plus 10% (“Growth Charge”); and\nEffective Premium Cap: For the purposes of this calculation, “Effective Rate” means the amount to be paid by Customer per 1,000 gallons resulting from the calculation of the Legacy Premium Component and the Growth Premium Component.  If the Customer’s calculated Effective Rate exceeds the Member City Rate plus 2.8%; the Customer Rate shall be adjusted to result in payment by the Customer that equals the Member City Rate plus 2.8% (Effective Premium Rate”).  After a Customer reaches the Effective Premium Rate, the Customer Rate cannot fall below the Effective Premium Rate.\nThis phase-in will only be available to Customers executing the new Customer contract template prior to July 31, 2028.\nThe new Customer rate methodology and Customer contract are of benefit to Customers and the region in that it:\nProvides certainty on the Customer rate for years to come;\nIncentivizes conservation; and \nAllows a reasonable phase-in for Customers through recognition of the Legacy Premium Component and Effective Premium Cap.\nAn Annual Minimum of 219,018,000 gallons per year.\nAn Annual Maximum of 647,800,000 gallons per year. \nCost of potable water is set at the Customer Rate. \nAny water delivered in excess of the annual minimum will also be purchased at the water rate established by the Board of Directors.\nIf Customer exceeds the maximum rate of delivery of 2.2 times the daily average, the Customer shall pay three times the Customer entity water rate for such quantity. There is a provision for emergency conditions extending up to 48 hours during which NTMWD may, at its sole discretion, waive the additional cost.\nNTMWD, in its sole discretion and at any time, may deliver water to Customer at a delivery rate greater than 2.2 times the daily average for the purpose of (i) minimizing or managing energy costs (4CP); or (ii) managing hydraulic constraints in NTMWD’s system. If NTMWD exercises either of these options, Customer shall only pay the contract water rate for water received.  \nIf NTMWD does not have infrastructure installed with the capability of limiting the delivery rate of water to 2.2 times the daily average, or such infrastructure is currently inoperable, Customer shall pay the contract water rate for water received from NTMWD.\n\n\n\n\nA provision that allows NTMWD to charge three times the water rate for such quantity of water used by the Customer that is above the authorized amount or authorized rate of delivery as allowed by NTMWD’s Water Conservation and Drought Contingency Plan, as such plan may be amended from time to time\n\nCopeville SUD approved this contract at its October 8, 2026, Board meeting and signed the contract on October 12, 2026. A copy of the contract is attached.\n\nFUNDING \n\nNo funding is requested.\n\n","MatterTextRtf":"{\\rtf1\\fbidis\\ansi\\ansicpg1252\\deff0\\deflang1033\\deflangfe1033{\\fonttbl{\\f0\\fswiss\\fprq2\\fcharset0 Arial;}{\\f1\\fmodern\\fprq1\\fcharset128 MS Gothic;}{\\f2\\froman\\fprq2\\fcharset2 Symbol;}{\\f3\\fmodern\\fprq1\\fcharset0 Courier New;}}\n{\\colortbl ;\\red255\\green255\\blue255;\\red255\\green0\\blue0;}\n\\viewkind4\\uc1\\pard\\ltrpar\\b\\f0\\fs24 Regional Water System\\par\n\\b0\\par\n\\cf1\\fs2 ..title\\par\n\\pard\\ltrpar\\ri-40\\cf0\\b\\fs24 Authorization of the Execution of the Potable Water Supply Contract with Copeville Special Utility District, a current Customer of NTMWD\\par\n\\pard\\ltrpar\\b0\\par\n\\cf1\\fs2 ..end\\par\n\\cf0\\ul\\b\\fs24 SUBJECT\\par\n\\i\\par\n\\cf1\\ulnone\\b0\\i0\\fs2 ..recommendation\\par\n\\pard\\ltrpar\\ri-40\\cf0\\fs24 Authorize the execution of a new Potable Water Supply Contract with Copeville Special Utility District (Customer), a current Customer of NTMWD.\\par\n\\pard\\ltrpar\\qj\\par\n\\cf1\\fs2 ..end\\par\n\\pard\\ltrpar\\cf0\\ul\\b\\fs24 PURPOSE\\i\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\i0\\par\n\\pard\\ltrpar\\fi11\\ri-40\\qj NTMWD and Copeville SUD wish to restate and enter into a new Potable Water Supply Contract. Copeville Special Utility District requests an additional Point of Delivery and requires additional time to construct facilities to receive water from NTMWD.\\par\n\\pard\\ltrpar\\qj\\par\n\\pard\\ltrpar\\ul\\b RECOMMENDATION\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\par\n\\pard\\ltrpar The Executive Director, NTMWD staff, and Lloyd, Gosselink, Rochelle & Townsend, P. C., recommend the Board of Directors authorize execution of a potable water supply contract with Customer.\\par\n\\pard\\ltrpar\\qj\\par\n\\pard\\ltrpar\\cf2\\par\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\pard\\intbl\\ltrpar\\cf0 Contracting Party:\\cell Copeville Special Utility District, Texas\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Purpose:\\cell Potable Water Supply Contract\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Project:\\cell N/A\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Amount:\\cell N/A\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Committee:\\cell This will be an item on the October 21, 2026, Water Committee meeting agenda\\cell\\row\n\\pard\\ltrpar\\ul\\b\\par\n\\par\n\\par\n\\par\n\\par\n\\par\n\\par\nDRIVER(S) FOR THIS PROJECT\\par\n\\par\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx2610\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\ulnone\\b0 Strategic Objective:\\ul\\b\\cell\\ulnone\\b0 1.1 High Quality Services                                                                                              3.2 Engaged Members, Customers and Stakeholders \\cell\\row\n\\pard\\ltrpar\\ul\\b\\par\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrt\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\ulnone\\b0\\f1\\u9744?\\f0  Regulatory Compliance\\cell\\f1\\u9744?\\f0  Asset Condition\\cell\\row\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\f1\\u9744?\\f0  Capacity\\cell\\f1\\u9744?\\f0  Redundancy/Resiliency\\cell\\row\n\\f1\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\intbl\\u9746?\\f0  Relocation or External Requests\\cell\\f1\\u9744?\\f0  Operational Efficiency\\cell\\row\n\\f1\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\intbl\\u9744?\\f0  Safety\\cell\\f1\\u9746?\\f0  Administrative\\cell\\row\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs \\cellx5329\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\f1\\u9744?\\f0  Policy\\cell\\f1\\u9744?\\f0  Other _____________\\cell\\row\n\\pard\\ltrpar\\par\n\\ul\\b BACKGROUND\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\par\n\\pard\\ltrpar\\qj PURPOSE\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 NTMWD and Customer previously entered into the Potable Water Supply Contract in August 1998.\\par\n\\f2\\'b7\\tab\\f0 Customer requested a new Point of Delivery No. 2 to connect to the NTMWD 24-inch conveyance line and additional time to construct facilities necessary to receive water from NTMWD and to renew their Potable Water Contract.  \\par\n\\pard\\ltrpar\\li360\\qj\\par\n\\pard\\ltrpar\\qj\\par\nCOMPONENTS OF THE CONTRACT WITH COPEVILLE SPECIAL UTILITY DISTRICT\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 Contract term of 20 years.\\par\n\\f2\\'b7\\tab\\f0 Point of Delivery No. 1: Operating\\par\n\\f2\\'b7\\tab\\f0 Point of Delivery No. 2: Generally located at County Road (CR) 558 curve near CR 605, Farmersville, Texas connecting to the 24-inch Wylie-Rockwall-Farmersville pipeline\\par\n\\f2\\'b7\\tab\\f0 Section 30. Special Condition: Contract allows Customer an additional 36 months to construct facilities to receive water from NTMWD.\\par\n\\pard\\ltrpar\\fi-360\\li720\\sa160\\f2\\'b7\\tab\\f0 Section 8-A. Additional Point of Delivery Project Costs and Payment: NTMWD has calculated the project costs for the addition of Point of Delivery No.\\u8239?2 in accordance with NTMWD Operations Policy Manual Section\\u8239?2.3. The lump sum project cost amount is $7,850,000.00. The Customer has two options to reimburse NTMWD for the project cost: (1) through a lump sum payment or (2) through equal annual installment payments over a 10-year period, plus interest, as invoiced by NTMWD. The project cost includes the capacity replacement cost components to ensure the Customer does not double pay for conveyance line capacity.\\par\n\\f2\\'b7\\tab\\f0 Exhibit E. Additional Point of Delivery Project Costs and Payment: Table E1 provides the annual payment schedule calculated using the U.S. 10-Year Treasury Par Yield Curve Rate, as required by NTMWD Operations Policy Manual Section\\u8239?2.3. Interest for the 10-year annual payment plan was calculated using the applicable Treasury rate as of September 25, 2026 (5.17% as shown in Exhibit\\u8239?E).  The interest rate is fixed and not subject to change.\\par\n\\f2\\'b7\\tab\\f0 Customer rate shall be equal to the rate set by the NTMWD Board of Directors for Member Cities (\\ldblquote Member City Rate\\rdblquote ) plus $0.05. \\par\n\\f2\\'b7\\tab\\f0 Commencing FY 2029, the customer rate shall be made up of two tiers and a cap that includes the Legacy Premium Component, Growth Premium Component, and Effective Premium Cap, as follows: \\par\n\\pard\\ltrpar\\fi-360\\li1440\\f3 o\\tab\\f0 Legacy Premium Component:  For that portion of the Customer\\rquote s annual minimum equal to its Fiscal Year (FY) 2028 annual minimum plus 5% (\\ldblquote Legacy Volume\\rdblquote ) the Customer Rate applied shall be the Member City Rate plus 5-cents (\\ldblquote Legacy Charge\\rdblquote );\\par\n\\f3 o\\tab\\f0 Growth Premium Component:  For that portion of the Customer\\rquote s annual minimum greater than the Legacy Volume (\\ldblquote Growth Volume\\rdblquote ), the Customer Rate applied shall be the Member City Rate plus 10% (\\ldblquote Growth Charge\\rdblquote ); and\\par\n\\f3 o\\tab\\f0 Effective Premium Cap: For the purposes of this calculation, \\ldblquote Effective Rate\\rdblquote  means the amount to be paid by Customer per 1,000 gallons resulting from the calculation of the Legacy Premium Component and the Growth Premium Component.  If the Customer\\rquote s calculated Effective Rate exceeds the Member City Rate plus 2.8%; the Customer Rate shall be adjusted to result in payment by the Customer that equals the Member City Rate plus 2.8% (Effective Premium Rate\\rdblquote ).  After a Customer reaches the Effective Premium Rate, the Customer Rate cannot fall below the Effective Premium Rate.\\par\n\\f3 o\\tab\\f0 This phase-in will only be available to Customers executing the new Customer contract template prior to July 31, 2028.\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 The new Customer rate methodology and Customer contract are of benefit to Customers and the region in that it:\\par\n\\pard\\ltrpar\\fi-360\\li1440\\f3 o\\tab\\f0 Provides certainty on the Customer rate for years to come;\\par\n\\f3 o\\tab\\f0 Incentivizes conservation; and \\par\n\\f3 o\\tab\\f0 Allows a reasonable phase-in for Customers through recognition of the Legacy Premium Component and Effective Premium Cap.\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 An Annual Minimum of 219,018,000\\fs22  \\fs24 gallons per year\\fs22 .\\fs24\\par\n\\f2\\'b7\\tab\\f0 An Annual Maximum of 647,800,000 gallons per year. \\par\n\\f2\\'b7\\tab\\f0 Cost of potable water is set at the Customer Rate. \\par\n\\f2\\'b7\\tab\\f0 Any water delivered in excess of the annual minimum will also be purchased at the water rate established by the Board of Directors.\\par\n\\f2\\'b7\\tab\\f0 If Customer exceeds the maximum rate of delivery of 2.2 times the daily average, the Customer shall pay three times the Customer entity water rate for such quantity. There is a provision for emergency conditions extending up to 48 hours during which NTMWD may, at its sole discretion, waive the additional cost.\\par\n\\f2\\'b7\\tab\\f0 NTMWD, in its sole discretion and at any time, may deliver water to Customer at a delivery rate greater than 2.2 times the daily average for the purpose of (i) minimizing or managing energy costs (4CP); or (ii) managing hydraulic constraints in NTMWD\\rquote s system. If NTMWD exercises either of these options, Customer shall only pay the contract water rate for water received.  \\par\n\\f2\\'b7\\tab\\f0 If NTMWD does not have infrastructure installed with the capability of limiting the delivery rate of water to 2.2 times the daily average, or such infrastructure is currently inoperable, Customer shall pay the contract water rate for water received from NTMWD.\\par\n\\pard\\ltrpar\\li720\\par\n\\par\n\\par\n\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 A provision that allows NTMWD to charge three times the water rate for such quantity of water used by the Customer that is above the authorized amount or authorized rate of delivery as allowed by NTMWD\\rquote s Water Conservation and Drought Contingency Plan, as such plan may be amended from time to time\\fs22\\par\n\\fs24\\par\n\\pard\\ltrpar\\qj Copeville SUD approved this contract at its October 8, 2026, Board meeting and signed the contract on October 12, 2026. A copy of the contract is attached.\\par\n\\pard\\ltrpar\\par\n\\ul\\b FUNDING \\par\n\\i\\par\n\\ulnone\\b0\\i0 No funding is requested.\\par\n\\pard\\ltrpar\\qj\\par\n}\n"}