1999-02-01Special Called Workshop of City Council

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e _ . Company shan pay 1.5 times the current water rate in effect for customers within the city limits. For water usage in excess of the established average demand, the Company shall pay 2 times the current water rate in affect. . Company shall enter into a contract with the City outlining the provisions for potable water service. The tenn of the contract will be five (5) years plus any extensions. RECENT REOUESTS The City has received requests from potential customers for water service in our Battleground District and for water and sewer service in our Bayport District. However, these recent requests do not fall completely within the guidelines of our current policy. Following is a listing of these recent requests: . DSI I INITIAlL TRUCKING - New location on Baypark Road - Request for water up to 20,000 gpd for tank truck cleaning. . SUNBEL T COMMERCIAL BUILDERS - New location at southwest comer of Fairmont Parkway and Underwood - Request for water and sewer service for 156- acre Industrial Park, including water service for fire sprinkler systems. . JOHN FRANTZ (Developer) - New location at northeast comer of SH225 and Miller Cut-Off - Request for water service for II7-acre Industrial Development, including water service for fire sprinkler systems. . JOHN HENSLEY (Consultant for Tank Truck Cleaning Company) - New location on Baypark Road - Request water service similar to DSI, however, exact location, utility use amounts and other information have not been disclosed. The tank truck companies require consideration in the areas of water use for industrial purposes, average daily amount, and calculation of Administrative Fee. The water would be used primarily for the tank truck cleaning process with a small percentage of the water being used for sanitary purposes. DSI has stated that 20,000 gpd would meet their water use requirements for tank truck cleaning. Based on the number of employees estimated for this site (105), and using the methodology established under current policy, DSI would be eligible for only 5,250 gpd. This is where current policy would require amendment. A possible amendment would be to allow water use for limited processes up to an amount of30,000 gpd. Similarly, the calculation of the one-time Administrative Fee is based on the number of employees (current policy). In the DSI case, the City would collect $10,500 for a company that would use significantly more than 50 gaVemp/day. A possible policy amendment would be to collect a one-time fee based on the gallons of water committed to or the estimated effort to review requests, prepare and manage agreements. The proposed Industrial Park at the comer ofFainnont Parkway and Underwood has expressed interest in water and sewer service. The water service would be limited to sanitary use and likewise the sewage would be domestic in make-up. However, sewer service is not addressed by current policy and may require the development of a