06-11-18 Regular Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: June 11, 2018 Source of Funds: N/A Requested By: Don Pennell Account Number: N/A Department: Public Works Amount Budgeted: N/A Report: ___ Resolution: _____ Ordinance: _______ Amount Requested: N/A Exhibits: Budgeted Item: YES NO Approved IDA Ordinance No. 2007-IDA-47 Area Map Water-Sewer Service Application Water Service Agreement Sewer Service Agreement 25% Payment Receipt SUMMARY & RECOMMENDATION Clark Dietrich Building Systems has approached the City for water and sanitary sewer service to its facility at 9700 New Decade Drive in the Bayport Industrial District (see Area Map). The company is constructing a 94,950 square foot industrial building and estimates employing up to 45 full-time positions at this site. Council has approved a policy to provide water and sanitary sewer service to companies located outside the city limits and districts (ETJ). These companies are required by the policy to maintain a current Industrial District Agreement (IDA) with the City. There is an existing IDA with the City for the subject site (2007-IDA-47). Additionally, the applicant is subject to an administrative fee of $5,000 per agreement, for a total combined fee of $10,000. As required, a non-refundable payment of twenty-five percent (25%) of the total administrative fees has been received, with the remaining balance ($7,500) to be paid upon approval of the water/sewer service agreements. Based on the stated demand for domestic uses, the average daily monthly volume for potable water is 68,625 gallons. Under the terms of the policy, the company will pay one and one-half (1-1/2) times the CiThe 68,625 gallons. Based on the stated demand for domestic uses, the average monthly volume for potable water is 58,332 gallons. Under the terms of the policy, the company will pay one and one-half (1-The monthly usage beyond 58,332 gallons. The terms of Water Service Agreement and Sanitary Sewer Service Agreement will expire on December 31, 2019, plus any renewals or extensions thereof. However, these agreements will 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: