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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: Julv 11, 2011 <br />Requested By: Tim Tietiens <br />Department: Planning <br />Report: Resolution: Ordinance: X <br />Exhibits: <br />1) Ordinance <br />2) Water Service Agreement <br />3) Sanitary Sewer Service Agreement <br />4) 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 />X NO <br />SUMMARY & RECOMMENDATION <br />FR/CAL INTERPORT, LLC, has requested water and sanitary sewer service to Reserve B, Block <br />1, a 42 -acre tract located at 13301 Bay Area Blvd. in the Bayport Industrial District (See Exhibit 4 <br />- Area Map). Council has approved a policy to provide utility service to companies located outside <br />its city limits and within its industrial districts. These companies are required to maintain a current <br />Industrial District Agreement (IDA) with the City. FR/CAL INTERPORT, LLC, has a current <br />IDA with the City and desires to pursue water and sanitary sewer service under the terms of this <br />policy. <br />Based on the company's stated demand for domestic uses, the average daily demand for water and <br />sanitary sewer service is 17,400 gallons per day, respectively. The company will pay one and one - <br />half (1 - '/ 2) times the City's current utility rate for its utility services. FR/CAL INTERPORT, LLC, <br />has paid total administrative fees to the City in the amount of $30,000 ($15,000 per each <br />agreement). FR/CAL INTERPORT, LLC will fund the installation of utility lines required for <br />water and sanitary sewer service to its facility. <br />The term of FR/CAL INTERPORT, LLC's Phase 11 Water Service Agreement expires on <br />December 31, 2019, plus any renewals and extensions thereof. However, these agreements shall <br />automatically expire at such time as there is no effective Industrial District Agreement between the <br />parties or if the City exercises the right of termination. <br />Staff recommends approval of Water and Sanitary Sewer Service Agreements with FR/CAL <br />INTERPORT, LLC as submitted herein. <br />Action Required by Council: <br />Approve an ordinance authorizing the City Manager to execute a Water Service Agreement and a <br />Sanitary Sewer Service Agreement with FR/CAL INTERPORT, LLC for its facility at 13301 Bay <br />Area Blvd. in the City's Bayport Industrial District. <br />Approved for City Council Agenda <br />Ron Bottoms, City Manager Date <br />