O-2004-2793 - Laserfiche WebLink

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- -- . REQUEST FOR CITY COUNCIL AGENDA ITEM Aooropriation Agenda Date Requested: Requested By: Source of Funds: N/A Account Number: N/A Department: Plannine: Report: _Resolution: _Ordinance:..x.. Amount Budgeted: N/A Amount Requested: Exhibits: 1. Ordinance 2. Water Service Agreement 3. Previous Letter to Revak Budgeted Item: _YES ....x....NO SUMMARY & RECOMMENDATION Council has approved a policy to provide utility services to companies located outside city limits and within the City's industrial districts. These companies are required to maintain a current Industrial District Agreement (IDA) with the City. Revak Turbo Machinery Service, located in the Bayport Industrial District, maintains a current IDA with the City. However, the company receives city water service under the tenns of an agreement previously executed with Liquid Air Corporation, a fonner occupant of the current Revak site. The previous agreement is specific to Liquid Air and does not provide for a change in ownership to Revak. Additionally, the previous agreement's language does not reflect the updated policy guidelines for utility service to industrial district companies. Staff has contacted officials of Revak to alert the company to the need for an updated Water Service Agreement (WSA) in order to bring the company up-to- date with our current policy. Revak has responded favorably to execution of a new WSA with the City. Based on Revak's stated demand for domestic uses, the average daily demand for domestic water service is 5,000 gallons per day. The company has also requested an additional 200 gallons of water per day for industrial processes which are limited to steam cleaning and washing of industrial equipment Total water demand by Revak equals 5,200 gallons per day (gpd) which is within the current policy limit of 30,000 gpd. Revak will pay one and one-half (1-1/2) times the City's current utility rate for water service. Standard provisions for the payment of an administrative fee associated with the WSA will not apply since the original agreement with Liquid Air provided for a water connection fee. The tenn of the new WSA expires on December 31, 2007, plus any renewals and extensions thereof However, the agreement shall automatically expire at such time as there is no effective IDA between the parties or if the City exercises the right of termination. Recommendation: Staff recommends approval of a new Water Service Agreement with Revak as submitted herein. Action Required of Council: Consider approval of an ordinance authorizing the City Manager to execute a Water Service Agreement with Revak Turbo Machinery Services. Approved for City Council Agenda ~&~ 1/ -3-04- Date