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FOR CITY COUNCIL AGENDA ITEM <br />REQUEST <br />Appropriation <br />Agenda Date Requested: June 25, 2012 <br />______N/A___________ <br />Source of Funds: <br />Tim Tietjens <br />Requested By: <br />Account Number:______N/A__________ <br />Department: Planning <br />Amount Budgeted: _____N/A___________ <br />Report: _ __Resolution: ____Ordinance: _X__ <br />Amount Requested: ____N/A__________ <br />Exhibits: <br />Budgeted Item: YES XNO <br />Ordinance for IDA <br />Industrial District Agreement <br />Ordinance for Water & SewerService <br />Agreements <br />Water Service Agreement <br />Sanitary Sewer Service Agreement <br />Area Map <br />SUMMARY & RECOMMENDATION <br />North Bayport Industrial Park II, Ltd.has approached the City for water and sanitary sewer service to its <br />proposed siteat10200New Decade Drivein the Bayport Industrial District (see Area Map).The <br />proposed facility is a spec development which will be leased by the owner. <br />Council has approved a policy to provide water and sanitary sewer service to companies located outside <br />the city limits and within the City’s industrial districts (ETJ). These companies are required by the policy <br />to execute and maintain a current Industrial District Agreement (IDA) with the City. North Bayport <br />Industrial Park II, Ltd. desires to obtain water and sanitary sewer servicefrom the City under the terms of <br />this policy. As part of this request, the company has executed a new IDA (2007-IDA-128) for itssite <br />which has been divided froma larger parent tract under an existing IDA (2007-IDA-17). <br />Based on the company’s stated demand for domesticuses, the average daily volumefor potable water and <br />sanitary sewer is 3,250 gallons per day. Under the terms of the policy, the applicant will pay one and <br />one-half (1-1/2) times the City’s current utility ratefor service. Additionally, North Bayport Industrial <br />Park II, Ltd.is subject to a one-time administrative fee of $6,500 associated with each of its agreements <br />for which payment in the amount of $13,000 has been received. <br />The terms of the company’sIndustrial District Agreement, Water Service Agreement and Sanitary Sewer <br />Service Agreement will expire on December 31, 2019, plus any renewals and extensions thereof. <br />However, the Water Service & Sanitary Sewer Service Agreements shall automatically expire at such <br />time as there is no effective Industrial District Agreement between the parties or, if the City exercises its <br />right of termination. <br />_____________________________________________________________________________________ <br />Action Required by Council: <br />Consider approval or other action ofan ordinance authorizing the City Manager to enter into an Industrial <br />District Agreement, aWater Service Agreement,and a Sanitary SewerService Agreement with North <br />Bayport Industrial Park II, Ltd. for its facility located at 10200 New Decade Dr. <br />_____________________________________________________________________________________ <br />Approved for City Council Agenda <br />___________________________________________________________ <br />Steve Gillett,Interim City Manager Date <br /> <br />