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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Appropriation <br /> <br />Agenda Date Requested: June 23, 2008 <br />Requested By: Tim Tietiens (l(j' <br /> <br />Department: PlanniDl! <br /> <br />Source of Funds: <br /> <br />N/A <br /> <br />Account Number: <br /> <br />N/A <br /> <br />Amount Budgeted: N/A <br /> <br />Report: _Resolution: _Ordinance: ~ <br /> <br />Amount Requested: N/A <br /> <br />Exhibits: <br />1. Ordinance for Sewer Service Agreement <br />2. Sanitary Service Agreement <br />3. Area Map <br /> <br />Budgeted Item: _YES -X-NO <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />FR/CAL INTERPORT, LLC, developer of the Interport Distribution Center (13301 Bay Area Blvd.) has <br />requested sanitary sewer service from the City for its recently-constructed facility in the Bayport Industrial <br />District (See Exhibit "C"). <br /> <br />Council has approved a policy to provide water and/or service to companies located within the City's <br />industrial districts. These companies must maintain a current Industrial District Agreement (IDA) with the <br />City. FR/CAL INTERPORT, LLC, maintains a current IDA with the City and desires to pursue sanitary <br />sewer service under the terms of this policy. <br /> <br />Based on the company's stated demand for sanitary sewer, the average daily demand is 22,450 gallons per <br />day (gpd) which is within the policy's limit of 30,000 gpd. The company will pay one and one-half (1-%) <br />times the City's current sewer rate and is also subject to Sanitary Sewer Service Agreement (SSSA) <br />administrative fees in the amount of $15,000. <br /> <br />To obtain sewer service from the City, FR/CAL INTERPORT, LLC will extend a 4" force main from Fairmont <br />Parkway along Bay Area Blvd. to its site. In negotiations, the Company has agreed to construct an <br />additional sanitary sewer lead across Bay Area Blvd. as part of the construction project. This sewer lead will <br />provide service to the City's 80 acre tract on Bay Area Blvd. which is currently being marketed for sale. <br />FR/CAL INTERPORT, LLC will also assume all maintenance responsibilities for the force main until such <br />time that a Sanitary Sewer Service Agreement is executed between the City and the owner of any <br />subsequent development on the City's 80 acre tract. <br /> <br />The term of FR/CAL INTERPORT, LLC's Sanitary Sewer Service Agreement will expire on December 31, <br />2019, plus any renewals and extensions thereof. However, its agreements automatically expire at such time <br />there is no effective Industrial District Agreement between the parties or if the city exercises the right of <br />termination. <br /> <br />Recommendation: <br />Staff recommends approval of a Sanitary Sewer Service Agreement with FR/CAL INTERPORT, LLC as <br />described herein. <br /> <br /> <br />Ron Bottoms, City Manager <br /> <br />~~/o8 <br /> <br />Date <br />