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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: January 9, 2012 <br />Requested By: Tim Tietiens <br />Department: Planning <br />Report: Resolution: Ordinance: X <br />Exhibits: <br />• Ordinance: IDA <br />• Industrial District Agreement <br />• Ordinance: Water Service Agreement <br />• Water Service Agreement <br />• 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 />KTN Gulf Coast has approached the City for water service to its proposed 253028 acre site at in the <br />Battleground Industrial District (see Area Map). The company will occupy the facility and will employ <br />95 full -time employees. <br />Council has approved a policy to provide water and sanitaiv sewer service to companies located outside <br />the city limits and within the City's industrial districts (ETJ). These companies are required by the policy <br />to execute and maintain a current Industrial District Agreement (IDA) with the City. KTN Gulf Coast <br />desires to obtain water service from the City under the terms of this policy. As part of this request, the <br />company has transferred the property's previous IDA (2007 - IDA -70) to a new IDA under its name (2007- <br />IDA-70-A). <br />Based on the company's stated demand for domestic uses, the average daily volume for potable water and <br />sanitaiv sewer is 4,750 gallons per day. Under the terms of the policy, the applicant will pay one and <br />one -half (1 -1/2) times the City's current utility rate for service. Additionally, KTN Gulf Coast is subject <br />to a one -time administrative fee of $9,500 for its Water Service Agreement for which the company has <br />subsequently made payment to the City. <br />The terms of the company's Industrial District Agreement and Water Service Agreement will expire on <br />December 31, 2019, plus any renewals and extensions thereof. However, the Water Service Agreement <br />will automatically expire at such time as there is no effective Industrial District Agreement between the <br />parties or, if the City exercises its right of termination. <br />Action Required by Council: <br />Approve ordinances authorizing the City to enter into an Industrial District Agreement and a Water <br />Service Agreement with KTN Gulf Coast. <br />Approved for City Council Agenda <br />Steve Gillett, Interim City Manager <br />Date <br />