08-22-11 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: August 22, 2010 Requested By: Tim Tietiens Department: Planning Report: Resolution: Ordinance: X Exhibits: • Ordinance for IDA • Industrial District Agreement • Ordinance for Water & Sewer Agreements • 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 DTMT Two, LLC has approached the City for water and sanitaiv sewer service to its recentIN-- constructed facility at 9602 Nev, Decade Drive in Bas -port North Industrial Park I, located in the Bas -port Industrial District (see Area Map). Hyduke Energy, a Canadian -based provider of equipment for the oil and gas industiv will occupy the facility and bring approximately 40 new jobs into our area from Canada. Council has approved a policy to provide water and sanitaiv 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 execute and maintain a current Industrial District Agreement (IDA) with the City. DTMT Two, LLC desires to obtain water and sanitaiv sewer service from the City under the terms of this policy. As part of this request, the company has executed a new IDA for the subject property, which has been divided from a larger parent tract under an existing IDA. Based on the company's stated demand for domestic uses, the average daily volume for potable water and sanitaiv sewer is 2,500 gallons per day. 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. Additionally, DTMT Two, LLC is subject to a one -time administrative fee of $5,000 associated with each of its agreements, for which payment in the amount of $10,000 has been received. The terms of the company's Industrial District Agreement, Water Service Agreement and Sanitaiv Sewer Service Agreement will expire on December 31, 2019, plus any renewals and extensions thereof. However, the Water Service & Sanitaiv Sewer Service Agreements shall 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 enter into an Industrial District Agreement, a Water Service Agreement, and a Sanitaiv Sewer Service Agreement with DTMT Two, LLC. Approved for City Council Agenda Ron Bottoms, City Manager Date