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HomeMy WebLinkAboutO-2008-3072 WSA/SSA with Kelley Fairmont, Inc B REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 14. 2008 Source of Funds: NtA Requested By: John Joerns Account Number: NtA Department: Planninl! Amount Budgeted: Nt A Report: _Resolution: _Ordinance:....K- Amount Requested: Nt A Exhibits: A. Ord. for Water & Sewer Service Agreements B. Water Service Agreement C. Sanitary Sewer Service Agreement D. Area Map Budgeted Item: _YES -X-NO SUMMARY & RECOMMENDATION Kelley Fainnont, Inc. has approached the City for water and sanitary sewer service to its development at the southwest comer of Fainnont Parkway and Bay Area Boulevard in the Bayport Industrial District. The site (see Exhibit "F" - Area Map). Council has approved a policy to provide water and sanitary sewer service to companies located outside the city limits and within the City's industrial districts. These companies are required by the policy to execute and maintain an Industrial District Agreement with the City. The company desires to obtain water and sanitary sewer service under the tenns of this policy. Council has previously approved an Industrial District Agreement with Kelley Fainnont, Inc. (IDA-2007-002). Based on the company's stated demand for domestic and industrial process uses, the average daily demand for water is 8,270 gpd which is well within the policy's limit of 30,000 gallons per day. This demand indudes water for the company's fire suppression system and its landscape irrigation. The applicant, under the tenns of the policy, will pay one and one-half (1-%) times the City's current utility rate. Additionally, Kelley Fainnont, Inc. is subject to a one-time connection fee associated with each of its water and sewer agreements in the amount of $15,000 each ($30,000 total), for which payment has subsequently been received. Additionally, Kelley Fainnont, Inc.'s site development plans have been reviewed by the City for adherence to the rules and regulations stipulated in Exhibit "CD of its Industrial District Agreement with the City (i.e. signs, landscaping, driveways). The company has also dedicated the requisite easement for the City's future hikelbike trail along Fainnont Parkway. The tenns of the company's IDA, WSA and SSSA expire on December 31, 2019, plus any renewals and extensions thereof. However, the agreements shall automatically expire at such time as there is no effective IDA between the parties or, if the city exercises the right of tennination. Staff recommends approval of a Water Service Agreement and Sanitary Sewer Service Agreement for Ke . ont, Inc. as submitted herein. 4. (0, ()f Date ORDINANCE NO. 2008- sont AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT AND A SANITARY SEWER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND KELLEY FAIRMONT, INC.; 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 Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. The City Manager is hereby authorized to execute said contact, agreement, or other undertaking described in the title of this ordinance. 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 subj ect 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. z!5W;filr /(#"" ORDINANCE NO. 2008- 1.301?-- PAGE 2 PASSED AND APPROVED, this 14TH day of APRIL, 2008. CITY OF LA PORTE By: ~?~ Alton E. Porter Mayor ATTEST: ~t1JJl/J Martha A. Gillett City Secretary APPROVED: O~;?J Knox W. Askins City Attorney 1 STATE OF TEXAS S COUNTY OF HARRIS S WATER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and KELLEY FAIRMONT, INC. (Block 1, Restricted Reserve "B", Goodyear Bayport 2003 Partial Replat), 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. II. 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: III. 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. 25<t'//8/r /:;5// 2 Upon review of these representations, the City has determined the following: Number of Company Employees on site 165 Number of Contract Employees on site 0 Total on-site Employees 165 Potable Water Approved for Domestic Use Total on-site Employees times 50 gpd per employee) 8,250 *Potable Water Approved for Industrial Processes (gpd) 20 Total Amount of Potable Water Approved for Company (Average Daily Demand, gpd) 8,270 IV. CITY has determined that adequate facilities are available for CITY to furnish potable water to CaMP ANY based on the following terms and conditions, to-wit: (A) Company shall pay to CITY a one-time administrative connection charge of $15,000. (B) Potable water used for Industrial Processes shall be limited to the following use(s): Landscape Irrigation & Fire Suppression Systems. (C) COMPANY shall file an application for water service with CITY'S 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) The total amount of potable water approved (average daily demand) is established at Eight Thousand Two Hundred Seventy (8,270) 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. 3 (E) The average monthly demand of Two Hundred Fifty Two Thousand Two Hundred Thirty Five (252,235) gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used to facilitate service billings. (F) The cost of water up to the average monthly demand of Two Hundred Fifty Two Thousand Two Hundred Thirty Five (252,235) gallons shall be one hundred fifty percent (150%) ofthe CITY'S rate as established from time to time for commercial customers inside its corporate limits. (G) 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. (H) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of Two Hundred Fifty Two Thousand Two Hundred Thirty Five (252,235) gallons per month. Repeated consumption greater than the established average monthly demand may result in termination of service. (I) CITY shall have the right to interrupt 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. (J) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (K) 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. (L) COMPANY 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. 4 (M) 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. (N)A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (0) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (P) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (Q) COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. COMPANY'S development may be subject to certain additional requirements as described in Exhibit "A", attached. These requirements shall be shown on the site plan and approved by CITY. (R) CITY does not guarantee its water system will provide specific water pressure and/or water volume requirements of COMPANY. (S) COMPANY is responsible for design of adequate and appropriate systems for fire suppression systems to its facilities. 5 V. All expenses associated with 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 caMP ANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. CITY shall retain ownership and maintenance responsibility for its water meter(s). In the event a State or Harris County license, permit, 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. VII. CITY reserves the right of ingress and egress at all reasonable times for the purpose of reading, maintenance, installation, removal and/or relocation of its water meter(s) and for inspection of COMPANY'S water facilities in order 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 CaMP ANY'S facility. VIII. 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 termination of Agreement. CITY shall have the right to summarily correct, at CaMP ANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. 6 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 terrm and provisions of this Water Service Agreement and the terrm and provisions of the Industrial District Agreement between the parties, the terrm and provisions of the Water Service Agreement shall control, to the extent of such conflict. The tenn of this Agreement shall tenninate on December 31,2019. 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 tennination. ENTERED INTO and effective the /4 tA day of J?fr::'A'!:/L. ,20<8 /4:I/l:'1 - F'H~f;t(JV( I 1jjC. CO ANY P I;V"JJ !4:lIL-Y Title: ~, L ? tU => I,)CNf Address: 1-J, 1'1 rA1fl. ~~~ jj{u) 61l-J.1S ~ fl,ltM '"AhIIJ C/.J ,/s,'f '>5 7 CITY OF LA PORTE ATTEST: Martha A. Gillett CitySecretary APPR~ 1t/ ~ Knox W. Askins City Attorney Ron Bottom; City Manager City Attorney POBox 1218 LaPorte, TX 77572-1218 City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 Phone: (281) 471-1886 Fax: (281) 471-2047 Phone: (281) 471-5020 Fax: (281) 471-7168 8 This is EXHIBIT A, consisting of 1 page, referred to in and part of the Water Service Agreement and/or Sanitary Sewer Service Agreement between CITY and COMPANY Dated COMPANY @ ADDITIONAL REQUIREMENTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional improvements as specifically set forth below. These agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell water to COMPANY pursuant to the terms of the Water Service Agreement and/or Sanitary Sewer Service Agreement and this addendum. Said additional improvements undertaken by COMPANY are an integral part of the consideration by COMPANY for obtaining the provision of water and/or sanitary sewer service from CITY. 1) STORM WATER PLAN: For new development COMPANY shall provide a Storm Water Management Plan that is approved by Harris County Flood Control District and CITY. COMPANY shall construct and maintain any storm water system as a condition of continued water and/or sewer service. 2) BEAUTIFICATION EFFORTS: COMPANY shall submit a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage as per approved Landscaping Plan as a condition of continued water service. 1 STATE OF TEXAS S COUNTY OF HARRIS S SANITARY SEWER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and KELLEY FAIRMONT, INC. (Block 1, Restricted Reserve "B", Goodyear Bayport 2003 Partial Replat), 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. II. COMPANY is desirous of purchasing sanitary sewer service from CITY for usual human domestic uses. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited sanitary sewer service. CITY agrees, however, to provide limited sanitary sewer service to COMPANY. For and in consideration of furnishing sanitary sewer service by CITY, the parties hereto agree as follows, to-wit: III. COMPANY has made certain representations to CITY as to its number of employees, and/or its desired amount of sanitary sewer from limited industrial processes, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. c)l///8/-r /C // 2 Upon review of these representations, the City has determined the following. Number of Employees on-site 165 Number of Contract Employees o Total on-site Employees 165 Sanitary Sewer Desired for Domestic Use (Total on-site times 50 gpd per employee) 8,250 San. Sewer Approved for Industrial Processes (gpd) 0 Total Amount of Sanitary Sewer Approved by Company (Average Daily Demand, gpd) 8,250 IV. CITY has determined that adequate facilities are available to allow CITY to furnish sanitary sewer to COMPANY based on the following terms and conditions, to-wit: (A). Company shall pay to CITY a one-time administrative connection charge of $15.000. (B). COMPANY shall file an application for sanitary sewer service with CITY'S Utility Billing Division and pay appropriate deposit. (C). The average daily demand is established at Eight Thousand Two Hundred Fifty (8,250). This number is based on an average of fifty (50) gallons per employee per day established by CITY. (D). The average monthly demand is calculated to be eighty-five percent (85%) of the average daily demand multiplied by a factor of 30.5, which shall be used to facilitate service billings. (E). The cost of sanitary sewer service up to the average montWy demand of Two Hundred Fifty One Thousand Six Hundred Twenty Five (251, 625) gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. 3 (F). The cost of sanitary sewer service for amounts 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. (G). Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of Two Hundred Fifty One Thousand Six Hundred Twenty Five (251, 625) gallons. Repeated sanitary sewer delivery greater than the established average monthly demand may result in termination of service. (H). COMPANY agrees that during periods when the CITY'S collection system is surcharged, the CITY may require the suspension of use of the sanitary sewer system for periods not to exceed thirty-six hours. (I). CITY shall have the right to interrupt or temporarily suspend said sanitary sewer service to COMPANY if an emergency arises and there is not an adequate sewer collection or treatment capacity to meet the needs of the citizens of La Porte. (J). COMPANY agrees that it shall be bound by CITY'S Industrial Waste Ordinance (Chapter 74, Article II of the Code of Ordinances) and any subsequent amendments or revisions. (K). The total cost for the engineering design and construction of any sanitary sewer main, service line, lift station, meter or other required appurtenances will be the responsibility of COMPANY. (L). COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of sanitary sewer service to customers within the corporate limits of CITY. (M). All plumbing installed by COMPANY connected to the sanitary sewer 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 sanitary 4 sewer service to COMPANY. (N). There shall be no resale of the sanitary sewer service provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (0). COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. Company's development project may be subject to certain additional requirements as described in Exhibit "A", attached. These requirements shall be shown on the site plan and approved by City. V. All expenses of the installation of service lines from the main to the CO MP ANY'S facilities shall be solely at the expense of COMP ANY. COMPANY shall own and maintain all service lines and plumbing facilities. VI. In the event a State or Harris County license, permit, or permission to install the sanitary sewer main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S sanitary sewer 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. VIII. 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 termination 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 sanitary sewer system is threatened. 5 IX. Upon receipt of written notice oftenninatioD, COMPANY shall have up to six (6) months to prepare for transition to another sanitary sewer service provider. If the transition is not complete within said six-month period, CITY shall have the right to tenninate sanitary sewer service at its sole discretion. X. In the event of any conflict between the t~ and provisions of this Sanitary Sewer Service Agreement and the t~ and provisions of the Industrial District Agreement between the parties, the t~ and provisions of the Sanitary Sewer Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall tenninate on December 31, 2019. 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 tennination. ENTERED lNTO effective the I ~.#- day of Q P'; ) , 2001. !411C,V ~lJ4aMtJIJI) CAlC. ~ Name: [)~Pl'/AJ ~/LY Title: t!reL ?USn)~ Address: 1-?- 1:1 rhl /l. / ;l-J&::) Clvt::> <:rL1-Cf'5 ~N:,ijIHtW~ Cv/ ~'f1;)5 6 CITY OF LA PORTE ATTEST: CITY OF LA PORTE APPROVED /J. ~~-~ Knox W. Askins City Attorney ~ !}.If/IJI M a A Gillett City Secretary 7 This is EXHIBIT A, consisting of 1 page, referred to in and part of the Water Service Agreement and/or Sanitary Sewer Service Agreement between CITY and COMPANY Dated i,;.Y tJ r ~l: CIT~ COMPANY~ ADDITIONAL REQUIREMENTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional improvements as specifically set forth below. These agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell water and/or sanitary sewer to COMPANY pursuant to the terms of the Water Service Agreement and/or Sanitary Sewer Service Agreement and this addendum. Said additional improvements undertaken by COMPANY are an integral part of the consideration by COMPANY for obtaining the provision of water and/or sanitary sewer service from CITY. 1) STORM WATER PLAN: For new development COMPANY shall provide a Storm Water Management Plan that is approved by Harris County Flood Control District and CITY. COMPANY shall construct and maintain any storm water system as a condition of continued water and/or sewer servIce. 2) BEAUTIFICATION EFFORTS: COMPANY shall submit a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage as per approved Landscaping Plan as a condition of continued water service. 3) SAMPLING WELL: COMPANY shall install a sanitary sewer sampling well in accordance with CITY's standards. 4) INDUSTRIAL WASTE PERMIT: COMPANY shall submit application to CITY for industrial waste permit. KELLEY FAIRMONT, INC, SITE LOCATION ~~""';:;;",. :" ~,: