PILLAR: Sustainable
AGENDA DATE: October 8, 2025
COUNCIL DISTRICT(S): Outside
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: N/A
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SUBJECT
Title
Authorize (1) the first of two permitted ten year renewals with the North Texas Municipal Water District to transport North Texas Municipal Water District owned water supply from Lake Fork to Lake Tawakoni for the period October 14, 2025 through October 13, 2035; and (2) an amendment to reflect the terms of the Sabine River Authority Contract with the North Texas Municipal Water District - Estimated Annual Revenue: $3,462,101.65 (at current untreated water transportation rate)
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BACKGROUND
The North Texas Municipal Water District (NTMWD) is a regional wholesale treated water provider to 2.3 million residents in its North Texas service area. NTMWD has an established water supply and holds water rights for raw water supplies from Lavon Lake, Lake Texoma, Jim Chapman Lake, Lake Bonham, Lake Tawakoni, Lake Fork and reuse water along the East Fork of the Trinity River.
NTMWD has a contract with the Sabine River Authority (SRA) for the purchase of 17.9 MGD (20,000 acre-feet per year) of Lake Fork water. However, neither NTMWD nor SRA have diversion facilities or infrastructure for transporting their water supply from Lake Fork to Lake Tawakoni. Therefore, NTMWD has requested that the Dallas Water Utilities Department (DWU) transport the water via Dallas’ Lake Fork Pump Station and Lake Fork to Lake Tawakoni pipeline. NTMWD will pay to Dallas a “Water Transport Fee” per 1,000 gallons of untreated water which is based on DWU’s Untreated Water Cost of Service Study.
On November 14, 2018, the City Council authorized a contract with NTMWD to transport NTMWD owned water supply from Lake Fork to Lake Tawakoni for the period November 14, 2018 through October 13, 2025. The Water Transmission Contract also allows for two additional 10-year extensions that coincide with the extensions of NTMWD’s current contract with SRA for Lake Fork water. NTMWD exercised the first ten-year option to extend their water supply contract with SRA by executing an amended and restated water supply contract with SRA on April 10, 2025. DWU and NTMWD now desire to execute the first of two permitted 10 year renewals to transport NTMWD owned water supply from Lake Fork to Lake Tawakoni.
This item will authorize the first of two permitted 10 year renewals with the NTMWD to transport NTMWD owned water supply from Lake Fork to Lake Tawakoni for the period October 14, 2025 through October 13, 2035, and amend the Contract to reflect the terms of the SRA Contract with NTMWD. The Contract amendments include the updated definition of Adjusted Contract Quantity to reflect the amount of water SRA agrees to provide to NTMWD and the amount of water NTMWD agrees to accept on an annual adjusted basis each calendar year. The amendments also include revised dates in which NTMWD agrees to provide Dallas with a Transport Schedule for the subsequent calendar year, the updated rate NTMWD shall pay Dallas for the transport of NTMWD water from Lake Fork to Lake Tawakoni that may be adjusted annually by Dallas based on a cost of service methodology, and the revised term of the contract to October 13, 2035.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 8, 2010, the City Council authorized a contract with the North Texas Municipal Water District to purchase a short-term, interim untreated water supply by Resolution No. 10-3075.
On April 24, 2013, the City Council authorized a three-year contract with the North Texas Municipal Water District to purchase Dallas owned untreated water supply; and transport North Texas Municipal Water District owned water supply from Lake Fork to Lake Tawakoni from April 24, 2013 through April 23, 2016 by Resolution No. 13-0720.
On November 14, 2018, the City Council authorized a contract with the North Texas Municipal Water District to transport North Texas Municipal Water District owned water supply from Lake Fork to Lake Tawakoni from November 14, 2018 through October 13, 2025 by Resolution No. 18-1627
FISCAL INFORMATION
Estimated Annual Revenue: $3,462,101.65 (at current untreated water transportation rate)
OWNER/EXECUTIVE
North Texas Municipal Water District
Jenna Covington, PE, NTWD Executive Director and General Manager
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