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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: November 14 2005 <br />Requested By: Wayne J. Sal) <br />Department: Planning <br />Report: Resolution: Ordinance: X <br />Exhibits: <br />A. Ordinance for Industrial District Agreement <br />B. Industrial District Agreement <br />C. Ordinance for Water Service Agreement <br />D. Water Service Agreement <br />E. Area Map <br />Appropriation <br />Source of Funds: <br />N/A <br />Account Number: <br />N/A <br />Amount Budgeted: <br />N/A <br />Amount Requested: <br />N/A <br />Budgeted Item: _YES <br />_2L_NO <br />SUMMARY & RECOMMENDATION <br />Council has approved a policy to provide utility services to companies located outside city limits and within <br />the City's industrial districts. These companies are required to maintain a current Industrial District <br />Agreement with the City. <br />Matheson Tri-Gas, Inc., located in the Bayport Industrial District, has been notified by the City of its need to <br />execute an Industrial District Agreement and an updated Water Service Agreement to continue City water <br />service to its site. <br />Currently, Matheson receives water service under a previous agreement executed several years ago <br />between the City and "Airco", a company that formerly occupied the site. Execution of an IDA and WSA will <br />bring the company into compliance with current City policy. <br />Matheson desires to execute the necessary agreements for water service under the terms of the current <br />policy. Based on the company's needs for domestic and industrial process water, an average daily demand <br />has been established at 350 gallons per day and is within the City's guidelines. The company will pay one <br />and one-half (1-%) times the City's current utility rate. <br />Coinciding with the City's realignment, the terms of the Industrial District Agreement and Water Service <br />Agreement expire on December 31, 2007, plus any renewals and extensions thereof. The agreements shall <br />automatically expire if there are no renewals or if the city exercises the right of termination. <br />Staff recommends approval of the Industrial District Agreement and Water Service Agreement as submitted <br />herein. <br />Action Required by Council: <br />Consider approval of an ordinance authorizing the City to enter into an Industrial District Agreement and an <br />ordinance authorizing the City to execute a Water Service Agreement with Matheson Tri-Gas, Inc. <br />Approved for City Council Agenda <br />Debra B. Feazell , i Man er Date <br />