04-12-2010 CC agenda packet item_Water Service Agreements

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RF,0UESTJJR CM COUNCIL AGENDA F1'EP 16. Agenda Date Requested: Requested By: John Joems Department: Administration XXX Report _ tion _ Ordinance Exhibits: I I s l l VI a At the February 1" Council Workshop staff discussed several water and sewer service requests from owners/developers of property outside the city limits but within the extraterritorial jurisdiction (ETJ). These requests, for various reasons, did not fit Council's established policy for water service outside the city limits. At the workshop, Council provided general direction and asked that staff return with proposed amendments to the existing policy for providing utilities outside the city limits. Attached are three draft documents that staff believes are responsive to direction received by Council 1. Policy Document tided: Requests for Potable Water Service and /or Sanitary Sewer Service Outside the City of La Porte For Companies With an Industrial District Agreement 2. Water Service Agreement 3. Sanitary Sewer Service Agreement (this is anew document) To assist Council in reviewing the documents we have 8,4.0"scud, new language and lined then deleted language except for the sanitary sewer service agreement, which is a new document. The Sanitary Sewer Service Agreement is a new document. Its construction is essentially the same as the water service agreement except that it deals with furnishing of sanitary sewer. Some of the issues discussed at the February 1" Council workshop are addressed as follows. • AdministrativelConnection Fee (for both water and sewer) • The existing policy establishes a fee of $100 per employee with a minimum of S5,000 and maximum of $15,000. Between the minimum and maximum, the 50 gal/employee/day results in a administrativr/connection fee of $2.00/gal. • This same S2.00/gal and same minimum and maximum fee was established for companies that requested service greater than 50 gallemployee/dey. • Maximum Water and Sewer demand to be considered by this policy. • 30,000 gaBas jday • Terms of Agreement • The current and proposed policy calls for a term of 5 years together with any renewals or extensions. It further states that the Agreement shall automatically expire at such time as there is no effective Industrial District Agreement Therefore, we will be in a position to negotiate both the IDA and the term of the utility service agreement Note: Staff would like to promote a