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<br />. <br /> <br />e <br /> <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Requested By: <br /> <br />Do <br /> <br /> <br />Department: <br /> <br />Plannina <br /> <br />Agenda Date Requested: <br /> <br />x <br /> <br />Agreement <br /> <br />Resolution <br /> <br />Ordinance <br /> <br />Exhibits: <br />1. Ordinances: Industrial District Agreement, Water Service Agreement & Utility Extension Agreement <br />2, Industrial District Agreement <br />3. Water Service Agreement <br />4. Utility Extension Agreement <br />6. Area Map <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />United Rentals is expanding its operations in La Porte. As part of this expansion, the business is relocating from <br />its existing site on North 23rd Street to a larger 8.171-acre site located at 8221 S,H. 226. The company has <br />approached the City to provide water service to its new location. In response to this request, Staff has <br />researched and determined that the new United Rentals site is not under an Industrial District Agreement and <br />does not have access to adequate water service to the S.H. 226 site. <br /> <br />The City Attorney's office has prepared an Industrial District Agreement for the company's new site. The <br />Agreement has subsequently been presented to and executed by the company and awaits final approval by <br />Council (see Exhibit 21. <br /> <br />As previously stated, United Rentals desires to pursue water service under the terms and conditions offered by <br />the City. Based on 36 on-site employees, the average daily demand is estimated to be 1,750 gallons. The <br />applicant is also requesting 1 ,800 gallons per day for cleaning of rental equipment. The company will pay one <br />and one-half times the City's current rate. The term of the Water Service Agreement is for (5) years, plus any <br />renewals and extensions thereof. However, the Agreement shall automatically expire at such time as there is no <br />effective Industrial District Agreement between the parties or if the City exercises its right of termination. <br />Based on its total daily demand (domestic + industrial uses), the applicant is subject to an administrative <br />connection charge of $7,100 (1,750 gpd + 1,800 gpd = 3,550 gpd x $2.00 per gallon = $7,100). Staff has <br />prepared the Water Service Agreement for United Rentals and the company has subsequently executed its part <br />of this agreement for consideration by Council (see Exhibit 31, <br /> <br />Execution of a Utility Extension Agreement is necessary for the extension of a 12. waterline required to serve <br />United Rentals' new site. Staff has prepared and presented this document to United Rentals who in turn has <br />executed its part of this agreement to be presented to Council (see Exhibit 41. <br /> <br />Staff recommends approval by Council of an Industrial District Agreement, Water Service Agreement and Utility <br />Extension Agreement between the City of La Porte and United Rentals as submitted herein. <br /> <br />Action Reaulred by Council: <br /> <br />Consider approval of three individual ordinances. The first of which authorizes the City to execute an Industrial <br />District Agreement with United ,Rentals. The second ordinance authorizes the execution of a Water Service <br />Agreement between the City and United Rentals. The final ordinance authorizes the City Manager to execute a <br />Utility Extension Agreement with United Rentals for the extension of a 12. waterline. <br /> <br />Availability of Funds: N/A <br />ADDroved for City Council Aaenda <br /> <br />C=X~ ~ <br />Robert T. Herrera <br />City Manager <br /> <br />,. aO.Oc) <br /> <br />DATE <br />