12-12-11 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 12, 2011 Requested By: Tim Tietiens Department: Planning Report: Resolution: Ordinance: X Exhibits: • Ordinance: IDA • Industrial District Agreement • Ordinance: WSA & SSSA • Water Service Agreement (WSA) • San. Sewer Service Agreement (SSSA) • 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 Bayport Associates I, LLC, has approached the City for water and sanitary sewer service to its proposed site at 4210 Malone Drive in Bayport North Industrial Park 11, located in the Bayport Industrial District (see Area Map). Total Safety, will occupy the facility, which will maintain 60 full -time employees. Council has approved a policy to provide water and sanitary 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. Bayport Associates I, LLC, desires to obtain water and sanitary sewer service from the City under the terms of this policy. As part of this request, the company has executed a new IDA for its property (2007 -IDA -127), 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 sanitary sewer is 3,000 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, Bayport Associates I, LLC is subject to a one -time administrative fee of $6,000 for each of its service agreements. The company has made payment to the City in the amount of $12,000 for both agreements. The terms of the company's Industrial District Agreement, Water Service Agreement and Sanitary Sewer Service Agreement will expire on December 31, 2019, plus any renewals and extensions thereof. However, the Water Service & Sanitary 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.