HomeMy WebLinkAboutO-2004-2793
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ORDINANCE NO. 2004 - r!JJl '1 ~
AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT
BETWEEN THE CITY OF LA PORTE AND REVAK TURBO MACHINERY SERVICES;
MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1.
The
City
Council
hereby
approves
and
authorizes the contract,
agreement,
or other undertaking
described in the title of this ordinance, in substantially the
form as shown in the document which is attached hereto and
incorporated herein by the reference.
The City manager is
hereby authorized to attest to all such signatures and to affix
the seal of the City to all such documents.
Section 2.
The
City
Council
officially
finds,
determines, recites, and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of
the City Council was posted at a place convenient to the public
at the City Hall of the City for the time required by law
preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; and that this meeting has
been open to the public as required by law at all times during
which this ordinance and the subject matter thereof has been
discussed, considered and formally acted upon. The City Council
further ratifies, approves and confirms such written notice and
the contents and posting thereof.
Section 3.
This ordinance shall be effective from and
after its passage and approval, and it is so ordered.
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ORDINANCE NO. 2004- ~'7q3
PASSED AND APPROVED, thi s Cj1-
ATTEST:
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'aJJ;h~ Ct. ;<!pdt/
MartHa A. Glllett
City Secretary
AP~~~
Knox W. Askins
City Attorney
By:
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day of NI)\JElhfje(, 2004.
CITY OF LA PORTE
~y~
Alton E. Porter
Mayor
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STATE OF TEXAS ~
COUNTY OF HARRIS ~
WATER SERVICE AGREEMENT
This AGREEMENT made and entered into by and between the CITY OF LA PORlE, lEXAS, a
municipal corporation of Harris County, Texas, hereinafter called "CITYII, and REVAK TURBO
hereinafter called "COMPANY",
I.
COMPANY is the owner of certain real property which is situated in CITY'S Bayport
Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties
to a current Industrial District Agreement.
n.
COMPANY is desirous of purchasing potable water from CITY for usual human domestic
consumption and uses, and for limited industrial processes as hereinafter stated. Previous planning
considerations for the long-range potable water supply of CITY did not include the needs of property
located outside the city limits of CITY. COMPANY recognizes that CITY cannot at this time provide
permanent and unlimited water service. CITY agrees, however, to provide limited potable water
service to COMPANY. For and in consideration of furnishing domestic potable water by CITY, the
parties hereto agree as follows, to-wit:
m.
COMPANY has made certain representations to CITY as to its number of employees, and/or
its desired amount of potable water for limited industrial processes, as of the date of this agreement,
upon which representations CITY has relied in entering into this Agreement.
Upon review of these representations, the City has detennined the following:
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Number of Company Employees on site
100
Number of Contract Employees on site
o
Total on-site Employees
100
Potable Water Approved for Domestic Use
(Total on-site Employees x 50 gpd per employee)
5000
.Potable Water Approved for Industrial Processes (gpd)
200
Total Amount of Potable Water Approved for
Company (Average Daily Demand, gpd)
5200
IV.
CITY has detennined that adequate facilities are available to CITY to furnish potable water to
COMPANY based on the following terms and conditions, to-wit:
(A) Company shall pay to CITY a one-time administrative connection charge of NtA .
(B) Potable water used for Industrial Processes shall be limited to the following:
Steam Cleaning & Washing of Industrial Equipment.
(C) COMPANY shall file an application for water service with CITYS Utility Billing Division and pay
appropriate deposit and water meter charge. CITY shall be responsible for furnishing and installing
meter at Company's expense. COMPANY shall be responsible for installing, appropriate meter box
to be approved by City.
(D) Where applicable, COMPANY shall also pay to CITY $ Nt A as a pro-rata reimbursement
for installation of utility mains funded by other parties.
(E) The total amount of potable water approved (average daily demand) is established at FIVE
THOUSAND TWO HUNDRED (5,200) gallons per day. This number is based on an average of
fifty (50) gallons per employee per day established by CITY, plus any amount approved for
industrial processes.
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(F) The average monthly demand of ONE HUNDRED FlFTY-EIGHT THOUSDAND SIX
HUNDRED (158.600) gallons is established by multiplying the average daily demand by a factor of
30.5, which shall be used to facilitate service billings.
(G)The cost of water up to the average monthly demand of ONE HUNDRED FIFTY-EIGHT
THOUSDAND SIX HUNDRED (158.600) gallons shall be one hundred fifty percent (1500,/0) of
the CITY'S rate as established from time to time for commercial customers inside its corporate
limits.
(H) The cost of water for amounts used in excess of the established average monthly demand shall be
two hundred percent (200%) of the CITY'S rate as established from time to time for commercial
customers inside its corporate limits.
(I) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly
demand of ONE HUNDRED FIFTY-EIGHT THOUSDAND SIX HUNDRED (158.600)
gallons. Repeated consumption greater than the established average monthly demand may result
in tennination of service.
(1) CITY shall have the right to intenupt or temporarily suspend said water service to COMPANY if
an emergency arises and there is not an adequate water supply to meet the needs of the citizens of
La Porte.
(K) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S
sole discretion
(L) The total cost for the engineering design and construction of any potable water main, service line,
back flow preventer, meter or other required appurtenances will be the responsibility of
COMPANY.
(M)COMP ANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the
furnishing of potable water to customers within the corporate limits of CITY.
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(N) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet
all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and
code enforcement personnel shall have the right of prior review and approval of COMPANY'S
plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right
to inspect any and all work related to the furnishing of potable water to COMPANY.
(0) A reduced pressure zone bacldlow preventer shall be installed and maintained by COMPANY to
protect CITY from any possible cross-connections.
(P) The potable water supply system will be segregated from any existing and future COMPANY fire
protection system.
(Q) There shall be no resale of the water provided by CITY, nor any extension of service lines by
COMPANY to serve other parties.
V.
All expenses of the installation of the meter; service lines from the main to the meter; and from
the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall
own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter.
VI.
CITY will have ownership and maintenance responsibility for its water mains, and service lines
up to and including CITY'S water meter. In the event a State' 01' Harris County license, pennit, or
permission to install the water main is revoked, or relocation or adjustment is required, CITY will not
be responsible for the expense of such relocation, adjustment, or replacement.
W.
CITY reserves the right of entry at all reasonable times for the purpose of inspection of
COMPANY'S water facilities, and to observe compliance with the terms and conditions of this
Agreement. When exercising its right of entry, CITY shall notifY COMPANY in advance. CITY also
agrees to follow established health and safety policies in effect at COMPANY'S facility.
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vm.
CITY reserves the right to terminate this agreement in the event of violation of the terms and
provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects
and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten
(10) days may result in tennination of Agreement. CITY shall have the right to summarily correct, at
COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water
supply is threatened.
IX.
Upon receipt of written notice of termination, COMPANY sh~ have up to six (6) months to
prepare for transition to another water supply. If the transition is not complete within said six-month
period, CITY shall have the right to tenninate water service at its sole discretion.
X.
In the event of any conflict between the tenns and provisions of this Water Service Agreement
and the tenns and provisions of the Industrial District Agreement between the parties, the tenns and
provisions of the Water Service Agreement shall contro~ to the extent of such conflict. The term of
this Agreement shall terminate on December 31, 2007. However, this Agreement shall automatically
expire at such time as there is no effective Industrial District Agreement between the parties or if CITY
exercises its right of termination.
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ENTERED INTO effective the ~ day Of~, 2004.
Re>>ak 1U.rbo~'Il,\~(\Iice5
Company
By: N~: ~e~
Title: R l'I 0.11I. (..1 d I .<)e. Y VILes ~,ge......
Address:----.Rl ~ I~S'
- .. La ~)rtf' IX. ('lS7~-1"4~
CITY OF LA PORTE
ATTEST:
vr;~/iI
Martha A ett
City Secretary
f..ITY OF LA POPf5
By: ~~,{~
Alton E. Porter
Mayor
By: ~WwI)(:j~JdL
Debra B. Feazelle
City Manager
City Attorney
POBox 1218
La Porte, TX 77572-1218
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
Phone: (281) 471-1886
Fax: (281) 471-2047
Phone: (281) 471-5020
Fax: (281) 842-1868
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City of'La Porte
Established 1892
July 24,2001
Mr. Russell Coleman
Revak Turbo
P.O. Box 1645
La Porte, Texas 77572-1645
Re: Update Water Service Agreement
Dear Mr. Coleman:
While auditing our "Water Service Agreements for Industry Outside the City Limits", we noticed that the Water
Service Agreement servicing your property (12204 Fairmont Parkway) has two issues that need to be resolved.
First, our utility billing has been incorrect. Records back to June 1998 show the City has been billing your company
for water service at our standard commercial rates. The contract for water service and the City's policy for water
users outside the city provide for payment of 150% of the city's current water rate. Also, in June 2000, the City
began billing you for sewer service. Our records do not indicate sewer service exists to your facility.
A review of your water usage back to June 1998 shows the correct billing to be $15,175.14. The actual amount
billed including the (improper) sewer charges since June 2000 reflect an actual billing of$12,893.93. Since this was
our error, the City has elected not to pursue the difference of $2281. We will immediately adjust our billing to
reflect the 150% rate fOf water and remove sewer charges. If you have any questions regarding billing, please
contact Cynthia Alexander, Director of Finance.. .
Secondly, the agreement does not provide for a change in ownership, it is specific to Liquid Air. The City's newer
form of agreement ties water service to a company's Industrial District Agreement (IDA) which is assignable and
has a term that is consistent with the IDA.
Attached is the City's current form of agreement for water service to industry outside the city limits. We would like
Revak Turbo to review the agreement and provide the appropriate information (in the highlighted areas) for
preparation of the formal agreement. The payment provisions for the administrative fee would not apply since the
original agreement with Liquid Air provided for a water connection fee.
If you have any information or documents that reflect a different arrangement, please advise.
After reviewing the documents please feel free to call me or Doug Kneupper, Director of Planning if you have any
questions.
:-'".........
c: Robert T. Herrera, City Manager
Cynthia Alexander, Director of Finance
Doug Kneupper, Director of Planning
Knox Askins, City Attorney
P.O. Box 1115 · La Porte, Texas 77572-1115 · (281) 471-5020
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Aooropriation
Agenda Date Requested:
Requested By:
Source of Funds: N/A
Account Number: N/A
Department: Plannine:
Report: _Resolution: _Ordinance:..x..
Amount Budgeted: N/A
Amount Requested:
Exhibits:
1. Ordinance
2. Water Service Agreement
3. Previous Letter to Revak
Budgeted Item: _YES ....x....NO
SUMMARY & RECOMMENDATION
Council has approved a policy to provide utility services to companies located outside city limits and within the City's
industrial districts. These companies are required to maintain a current Industrial District Agreement (IDA) with the
City.
Revak Turbo Machinery Service, located in the Bayport Industrial District, maintains a current IDA with the City.
However, the company receives city water service under the tenns of an agreement previously executed with Liquid
Air Corporation, a fonner occupant of the current Revak site. The previous agreement is specific to Liquid Air and
does not provide for a change in ownership to Revak. Additionally, the previous agreement's language does not reflect
the updated policy guidelines for utility service to industrial district companies. Staff has contacted officials of Revak
to alert the company to the need for an updated Water Service Agreement (WSA) in order to bring the company up-to-
date with our current policy. Revak has responded favorably to execution of a new WSA with the City.
Based on Revak's stated demand for domestic uses, the average daily demand for domestic water service is 5,000
gallons per day. The company has also requested an additional 200 gallons of water per day for industrial processes
which are limited to steam cleaning and washing of industrial equipment Total water demand by Revak equals 5,200
gallons per day (gpd) which is within the current policy limit of 30,000 gpd. Revak will pay one and one-half (1-1/2)
times the City's current utility rate for water service. Standard provisions for the payment of an administrative fee
associated with the WSA will not apply since the original agreement with Liquid Air provided for a water connection
fee.
The tenn of the new WSA expires on December 31, 2007, plus any renewals and extensions thereof However, the
agreement shall automatically expire at such time as there is no effective IDA between the parties or if the City
exercises the right of termination.
Recommendation:
Staff recommends approval of a new Water Service Agreement with Revak as submitted herein.
Action Required of Council:
Consider approval of an ordinance authorizing the City Manager to execute a Water Service Agreement with Revak
Turbo Machinery Services.
Approved for City Council Agenda
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1/ -3-04-
Date