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e e REQUEST FOR CITY COUNCIL AGENDA ITEM Aoorooriation Agenda Date Requested: January D. 1006 Source of Funds: NI A Requested By: Wayne Sabo Account Number: N/A Department: PlanDine: Amount Budgeted: N/A Report: _Resolution: _Ordinance: -X- Amount Requested: N/A Exhibits: A. Ordinance for Industrial District Agreement B. Industrial District Agreement C. Ordinance for Water Service Agreement D. Water Service Agreement E. Area Map Budgeted Item: _YES ..L..NO SUMMARY & RECOMMENDATION Council has approved a policy to provide limited utility services to companies located outside the city limits but within the City's industrial district. These companies are required to maintain a current Industrial District Agreement (IDA) with the City in order to be eligible for water and/or sanitary sewer service. First Industrial Texas, L.P., recently purchased the former Jacobson Warehouse tract at 11505 State Highway 225 (see Exhibit -Ej and desires to expand current operations by constructing two new warehousing units to be located on the former Jacobson Warehouse tract in the Battleground Industrial District. First Industrial Texas, L.P. has approached the City to facilitate an increase in its allocated water demand for its new warehouses. Based on the company's stated demand for increased domestic uses, the average daily demand for water is estimated at 3,000 gallons per day, which is within council's approved policy limits. The applicant will pay one and one-half (1-%) times the City's current utility rate. The current Water Service Agreement (yVSA) with Jacobson Warehouse stipulates an average daily demand of 1,750 gallons - resulting in an increasing of 1,250 gallons per day for the new company. At the original time of construction, Jacobson Warehouse provided full reimbursement for its share of the public waterfine originally extended for the area by John Frantz. Therefore, no additional fees will be incurred by First Industrial Texas, L.P. The ordinances and aareements oresented this evenina orimarilv reflect a chanae in ownershiD of the oriainal tract and an increase of the COmDany'S averaae dailv demand for domestic water use. The term of the updated IDA and WSA expires on December 31,2007, plus any renewals and extensions thereof. However, the agreements shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if the City exercises the right of termination. Staff recommends approval of the Industrial District Agreement and Water Service Agreement as submitted herein. Action Reauired by Council: Consider approval of two ordinances: an ordinance authorizing the City Manager to execute an Industrial District Agreement with First Industrial Texas, L.P. and an ordinance authorizing the City Manager to execute a Water Service Agreement with First Industrial Texas, L.P. ADDroved for City Council Ae:enda I -{ ~ --J {L; Date