08-27-12 Regular Meeting of La Porte City Council

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FOR CITY COUNCIL AGENDA ITEM REQUEST Appropriation Agenda Date Requested: August 27, 2012 ______N/A___________ Source of Funds: Tim Tietjens Requested By: Account Number:______N/A__________ Department: Planning Amount Budgeted: _____N/A___________ Report: _ __Resolution: ____Ordinance: _X__ Amount Requested: ____N/A__________ Exhibits: Budgeted Item: YES XNO Ordinance Water Service Agreement Sanitary Sewer Service Agreement Area Map SUMMARY & RECOMMENDATION Altom Transport, Inc.has approached the City for water and sanitary sewer service to its recently- acquired siteat4700New WestDrivein Bayport North Industrial ParkI, located in the Bayport Industrial District (see Area Map).Altom is a specialized bulk carrier that handles a diverse range of petroleum and chemical productsand will maintain a workforce of approximately 150 full time employees. Council has approved a policy to provide water and sanitary sewer service to companies located outside thecity limits and within the City’s industrial districts (ETJ). These companies are required by the policy to maintain a current Industrial District Agreement (IDA) with the City.The property in question is currently covered under IDA #2007-IDA-12 and administrative fees associated with its Water & Sanitary Sewer Service Agreements werepreviously paid by the initialdeveloper of the site, DTMT Onc, LLC. Based on the company’s stated demand for domestic uses, the average daily volumefor potable water and sanitary sewer is7,500gallons.Under the terms of the policy, the applicant will pay one and one-half (1- 1/2) times the City’s current utility ratefor service. The terms of the company’s Water Service Agreement and Sanitary Sewer Service Agreementwill expire on December 31, 2019, plus any renewals and extensions thereof. However, theseagreements will automatically expire at such time as there is no effective Industrial District Agreement between the parties or, if the City exercises its right oftermination. _____________________________________________________________________________________ Action Required by Council: Approve an ordinance authorizing the City Manager to execute aWater Service Agreement and a Sanitary SewerService Agreement with Altom Transport, Inc.at 4700 New West Drive, Bayport North Industrial Park 1, in the Bayport Industrial District. _____________________________________________________________________________________ Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander,City ManagerDate