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FOR CITY COUNCIL AGENDA ITEM <br />REQUEST <br /> Appropriation <br />Agenda Date Requested: September 14, 2015 <br />Source of Funds: ______N/A___________ <br />Requested By: Tim Tietjens <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 X NO <br />Exhibits: <br />1.Water Service Agreement <br />2.Sanitary Sewer Service Agreement <br />3.Area Map <br />SUMMARY & RECOMMENDATION <br />Hydro-Fairmont Real Estate, LLC has approached the City for water and sanitary sewer service to its <br />development at 11802 Fairmont Parkway in the Bayport Industrial District (see Area Map). The company <br />plans to construct a new facility at this site which will employ up to 30 full-time positions. <br />Council has approved a policy to provide water and sanitary 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 maintain a current Industrial District Agreement (IDA) with the City. Hydro-Fairmont Real Estate, <br />LLC has an IDA for the site (2007-IDA-137), which was considered by the Council earlier this evening. <br />Administrative fees in the amount of $5,000 for each agreement have been subsequently received from <br />the company. <br />Based on Hydro-Fairmont Real Estate, LLC’s stated demand for domestic uses, the average daily volume <br />for potable water and sanitary sewer is 1,500 gallons. Under the terms of the policy, the company will <br />pay one and one-half (1-1/2) times the City’s current utility rate for service. <br />The terms of the Water Service Agreement and Sanitary Sewer Service Agreement will expire on <br />December 31, 2019, plus any renewals or extensions thereof. However, these agreements will <br />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 />_____________________________________________________________________________________ <br />Action Required by Council: <br />Consider approval or other action, authorizing the City Manager to execute a Water Service Agreement <br />and a Sanitary Sewer Service Agreement with Hydro-Fairmont Real Estate, LLC for its development at <br />11802 Fairmont Parkway in the Bayport Industrial District. <br />_____________________________________________________________________________________ <br />Approved for City Council Agenda <br />____________________________________ _______________________ <br />Corby D. Alexander, City Manager Date <br /> <br />