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FOR CITY COUNCIL AGENDA ITEM <br />REQUEST <br />Appropriation <br />Agenda Date Requested: March25, 2013 <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 />Budgeted Item: YES XNO <br />Exhibits: <br />Ordinance <br />Water Service Agreement <br />Area Map <br />SUMMARY & RECOMMENDATION <br />Kuraray, Inc.has approached theCity forwater service to its 81 acre site located at 13100Bay <br />Area Blvd.(see Area Map). The company will employ 69full-time positions, which will require <br />a total of 3,450 gallons per day of domestic water use. <br />Council has approved a policy forwater service to companies outside the city limits andwithin <br />the City’s industrial districts.Per the policy, the company isrequired to execute and maintain an <br />Industrial District Agreement (IDA) with the City.Kuraray, Inc. desires to obtain its water <br />service under the terms of this policy and has a current IDA with the City (2007-IDA-122). <br />Per the policy’s terms,Kuraray, Inc.will pay one and one-half (1-1/2) times the City’s current <br />utility ratefor water serviceandis subject to a one-time administrative fee associated withits <br />Water Service Agreement (WSA) in the amount of $6,900for which payment hasbeen received. <br />The terms of the company’sIDAand WSA will expire on December 31, 2019, plus any renewals <br />and extensions thereof. However, the company’s WSAwill automatically expire at such time as <br />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 of an ordinance authorizing the City Manager to execute a <br />Water Service Agreementwith Kuraray, Inc. for its proposed facility at 13100 Bay Area Blvd. <br />_____________________________________________________________________________________ <br />Approved for City Council Agenda <br />___________________________________________________________ <br />Corby D. Alexander, City Manager Date <br /> <br />