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

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: August 27, 2012 Requested By: Tim Tietiens Department: Planning Report: Resolution: Ordinance: X Exhibits: • Ordinance • Water Service Agreement • Sanitary Sewer Service Agreement • Area Map Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: _YES X NO SUMMARY & RECOMMENDATION Altom Transport, Inc. has approached the City for water and sanitary sewer service to its recently - acquired site at 4700 New West Drive in Bayport North Industrial Park I, located in the Bayport Industrial District (see Area Map). Altom is a specialized bulk carrier that handles a diverse range of petroleum and chemical products and 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 the city 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 92007-IDA-12 and administrative fees associated with its Water & Sanitary Sewer Service Agreements were previously paid by the initial developer of the site, DTMT One, LLC. Based on the company's stated demand for domestic uses, the average daily volume for potable water and sanitary sewer is 7,500 gallons. Under the terms of the policy, the applicant will pay one and one-half (1- 1/2) times the City's current utility rate for service. The terms of the company's Water Service Agreement and Sanitary Sewer Service Agreement will expire on December 31, 2019, plus any renewals and extensions thereof. However, these agreements will automatically expire at such time as there is no effective Industrial District Agreement between the parties or, if the City exercises its right of termination. Action Required by Council: Approve an ordinance authorizing the City Manager to execute a Water Service Agreement and a Sanitary Sewer Service 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 Manager Date