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NL Cypress-CS120720 July 19, 2012 Jody Puckett P.E., Director of Dallas Water Utilities Dallas Water Utilities 1500 Marilla Street, Room 4A North Dallas, TX 75201 RE: Raw Water from the Elm Fork of the Trinity River Dear Mrs. Puckett: We are writing to seek an agreement with Dallas Water Utilities to obtain water rights for a minimum of 1,475 acres feet of raw water from the Elm Fork of the Trinity River. We base this request as provided in this letter request. The City of Coppell purchased, from Billingsley Development, Northlake and associated land on the North and East side of Northlake. As part of that purchase, obligations were undertaken which require permission of Dallas Water Utilities to acquire water to maintain lake levels for future development. The City of Coppell, as owner of the lake, desires to maintain a somewhat constant lake level. In order to accomplish that objective and meet the City’s future utilization of the surrounding land, water will be taken from the Elm Fork of the Trinity River near Sandy Lake Road and transported to Northlake via an existing 42” water line that was constructed by Dallas Power and Light Company in the 1950’s as part of the Northlake power generation station. Through the years, Dallas Power and Light Company has transitioned into ownership of the existing water rights which are currently held by Luminant. As part of the power plant, decommissioning by Luminant, it has sold its land to the Billingsleys. The Billingsleys in turn sold the lake and some land to the City of Coppell. The City of Coppell desires to acquire the remaining tracts of the power plant reservation known as the North and East Tracts from Luminant. In June of 2012, Luminant provided information to the City of Coppell concerning what water rights it would take to maintain a 360 acre lake, which Northlake will become when lake edges are modified, as a difference between the drought chase rainfall and evaporation rates. Luminant calculated that it would take approximately 1,260 acre feet to maintain the lake at our desired level, again during a drought type year, as was experienced in Dallas County in 1956 baseline. At a meeting held in July 12, 2012, Luminant, Billingsley and the City of Coppell, the parties discussed and outlined their respective needs for future water rights with representatives of your 2 department. All parties agreed to set forth their respective requirements. Hence, we are submitting this formal request. After acquiring the remaining tracts, the City of Coppell will undertake its long term plans concerning use. At this time, the actual development or utilization of that land is uncertain; however, if it were to remain and be irrigated in the future as open space, the City requires an additional 430 acre feet per year to maintain the lake level and irrigation needs. It is likely the land will be developed and therefore assuming a hard surface develop rate of approximately 50 percent. The City would need approximately 200, plus or minus, additional acre feet of water per year for such irrigation levels. We therefore, seek to acquire raw water rights for the lake level and development purposes. This letter is a formal request to Dallas Water Utilities to begin the process of acquiring rights to approximately 1475 acre feet per year of raw water from the Elm Fork of the Trinity River. As I understand, this would be a separate contract and not a supplemental to the existing treated water contract with the City of Dallas. If you should need any additional information or this request needs to be provided in a different format, please feel free to contact me at your convenience. Respectfully submitted, Clay Phillips, City Manager City of Coppell 972-304-3618 cphillips@coppelltx.gov