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~ST FOR CITY C~UN€n. AGE&ITEM -'\ Annronriation Agenda Date Requested: Janua Source of Fonds: N/A ' Account Number: N/A Department: Plannine Amount Budgeted: N/A Report: _Resolution: _Ordinance:....K..- Amount Requested: N/A Exhibits: 1. Ordinance for Industrial District Agreement 2. Industrial District Agreement 3. Ordinance for Water Service & Utility Extension Agreements 4. Water Service Agreement 5. Utility Extension Agreement 6. Area Map 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. In order to receive service, these companies are required to maintain a current Industrial District Agreement (IDA) with the City,. Houston Polymers Tenninal, located at 10925 S.H. 225, desires to pursue water service under the tenns of the policy. Based on the company's stated demand for domestic and industrial process uses, the average daily demand for water is 30,000 gallons per day (5,000 gpd for domestic + 25,000 gpd for industrial processes). This demand includes utilization of water for the building's on-site fire suppression tank, landscape inigation, make-up water and wash water for silo cleaning. The applicant will pay one and one- half (1-%) times the City's current utility rate for water service. Houston Polymers Tenninal is subject to a connection fee in the amount of $15,000 for its Water Service Agreement (WSA) with the City of which payment has subsequently been received. The tenn of the WSA expires on December 31,2007, plus any renewals and extensions thereof. The agreements shall automatically expire at such time as there is no effective IDA between the parties or if the city exercises the right of tennination. No existing water1ine is directly available to the site; therefore, a separate Utility Extension Agreement (UEA) between the Company and the City is required. Houston Polymers Tenninal has submitted plans for the extension of an 8D water1ine to and through their site to procure water service from the City. . Please note that Exhibit .CD of the IDA requires a 50' strip for landscape or screening purposes. Houston Polymers Tenninal's site was developed with concrete pavement encroaching into this 50' strip. In such cases, the IDA allows for the Company to meet with the City to arrive at a .suitable landscaping altemativeD. The company has met w~h the City and has submitted a landscaping plan calling for utilization of the adjacent TXDOT Right-of-Way to install a cO"1bination of palm trees and oleanders in order to meet the requirements of their agre~ments. Staff hat reviewed lhe Company's plan and feels that the plan compensates for the encro~ct1ment into the ~~O' strip. E>,Chibit .AD of the company's WSA requires the company to maintain this land$CS!ping as acol),dition of continued water service. ., Staff recommends approval of the Industrial District Agreement (IDA), Water S~rvi~ Agreement (WSA) and Utility Extension Agreement (UEA), as submitted herein. Action Required bv Council: Consider approval of an ordinance authorizing the City to enter into an Industrial District Agreement (IDA) and an ordinance authorizing the City to execute a Water Service Agreement (WSA) and Utility Extension Agreement (UEA) with Houston Polymers Tenni~al, L.P. J I~) /e,;s / Date(