HomeMy WebLinkAboutO-2008-3087 SSA with FR/CAL Interport, LLC
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: June 23, 2008
Requested By: Tim Tietiens (l(j'
Department: PlanniDl!
Source of Funds:
N/A
Account Number:
N/A
Amount Budgeted: N/A
Report: _Resolution: _Ordinance: ~
Amount Requested: N/A
Exhibits:
1. Ordinance for Sewer Service Agreement
2. Sanitary Service Agreement
3. Area Map
Budgeted Item: _YES -X-NO
SUMMARY & RECOMMENDATION
FR/CAL INTERPORT, LLC, developer of the Interport Distribution Center (13301 Bay Area Blvd.) has
requested sanitary sewer service from the City for its recently-constructed facility in the Bayport Industrial
District (See Exhibit "C").
Council has approved a policy to provide water and/or service to companies located within the City's
industrial districts. These companies must maintain a current Industrial District Agreement (IDA) with the
City. FR/CAL INTERPORT, LLC, maintains a current IDA with the City and desires to pursue sanitary
sewer service under the terms of this policy.
Based on the company's stated demand for sanitary sewer, the average daily demand is 22,450 gallons per
day (gpd) which is within the policy's limit of 30,000 gpd. The company will pay one and one-half (1-%)
times the City's current sewer rate and is also subject to Sanitary Sewer Service Agreement (SSSA)
administrative fees in the amount of $15,000.
To obtain sewer service from the City, FR/CAL INTERPORT, LLC will extend a 4" force main from Fairmont
Parkway along Bay Area Blvd. to its site. In negotiations, the Company has agreed to construct an
additional sanitary sewer lead across Bay Area Blvd. as part of the construction project. This sewer lead will
provide service to the City's 80 acre tract on Bay Area Blvd. which is currently being marketed for sale.
FR/CAL INTERPORT, LLC will also assume all maintenance responsibilities for the force main until such
time that a Sanitary Sewer Service Agreement is executed between the City and the owner of any
subsequent development on the City's 80 acre tract.
The term of FR/CAL INTERPORT, LLC's Sanitary Sewer Service Agreement will expire on December 31,
2019, plus any renewals and extensions thereof. However, its agreements automatically expire at such time
there is no effective Industrial District Agreement between the parties or if the city exercises the right of
termination.
Recommendation:
Staff recommends approval of a Sanitary Sewer Service Agreement with FR/CAL INTERPORT, LLC as
described herein.
Ron Bottoms, City Manager
~~/o8
Date
ORDINANCE NO. 2008- ~Og1
AN ORDINANCE APPROVING AND AUTHORIZING A SANITARY SEWER SERVICE
AGREEMENT BETWEEN THE CITY OF LA PORTE AND FR/CAL INTERPORT,
LLC; 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 titl~ 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.
ORDINANCE NO. 2008- 507;1
PAGE 2
PASSED AND APPROVED, this 231J day of p'{~€-J
, 2008.
CITY OF LA PORTE
By:
ATTEST:
~tldItL tl0ld
Martha A. Gillett
City Secretary
APPROVED:
~ r I4LA
Clark T. Askins
Assist. City Attorney
STATE OF TEXAS §
COUNTY OF HARRIS §
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 FR/CAL
INTERPORT, LLC, a Delaware Limited Liability Company, 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.
%',&/7
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Upon review of these representations, the City has determined the following.
Number of Employees on -site 299
Number of Contract Employees 0
Total on -site Employees 299
Sanitary Sewer Desired for Domestic Use
(Total on -site times 50 gpd per employee) 14,950
San. Sewer Approved for Industrial Processes (gpd) 7,500
Total Amount of Sanitary Sewer Approved
by Company (Average Daily Demand, gpd) 22.450
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 Twenty Two Thousand Four Hundred Fifty
(22,450) 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.
(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 monthly demand of Five Hundred
Eighty -Two Thousand Seventeen (582, 017) 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.
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(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 Five Hundred Eighty -Two Thousand Seventeen (582, 017) 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
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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" and Exhibit "B ", 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 COMPANY'S facilities
shall be solely at the expense of COMPANY. 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
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integrity of the public sanitary sewer system is threatened.
IX.
Upon receipt of written notice of termination, 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 terminate sanitary sewer service at its
sole discretion.
X.
In the event of any conflict between the terms and provisions of this Sanitary Sewer Service
Agreement and the terms and provisions of the Industrial District Agreement between the parties,
the terms and provisions of the Sanitary Sewer Service Agreement shall control, to the extent of
such conflict. The term of this Agreement shall terminate 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 termination.
ENTERED INTO effective the Ov-i h day of d kit , 2008.
FR/CAL INTERPORT, LLC
Company
vs. 40
Signature:
Name : I rO\ MOLM
Title: r 1 Cm t,( i')1 r e k? Y
Address: is 9a 5 Park -web D r I Cb
NCu 51 Clv \ iic —f
6
CITY OF LA PORTE
ATTEST: CITY OF LA PORTE
Al "III neAlk
By:
Martha A:Gillett A Iton E. orter
City Secretary Mayor
APPROVED:
By: r��►�
Knox W. Askins o
/' on Botto
City Attorney City M ger
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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 4' - 0Z.3 ( T ,
Initia •
CITY
NIAA 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.
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This is EXHIBIT B, 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
Initial:
CITY ��
COMPANY M14/1
SANITARY SEWER FORCE MAIN MAINTENANCE AGREEMENT
COMPANY agrees to construct a proposed 4" Force Main extension along Bay Area Boulevard,
at its own cost, per plans and specifications as prepared by Lin Engineering (dated June 2008) to
serve its facility located at 13301 Bay Area Boulevard and further identified by HCAD Account
Numbers 130- 090 - 001 -0001, 130- 090 -001 -0002 and 130 - 090 - 001 -0003.
Construction of said force main by COMPANY shall include provisions for the extension of an
additional sanitary sewer line crossing Bay Area Boulevard to facilitate sanitary sewer service to
an 80+ acre tract of land currently owned by CITY (Re: HCAD Account Number 100- 515 -000-
0486) hereinafter referred to as "CITY PROPERTY ".
COMPANY shall be solely responsible for maintenance associated with the said sanitary sewer
line until a Sanitary Sewer Service Agreement is executed between CITY and the owner of any
subsequent development on CITY PROPERTY. At such time, CITY shall automatically assume
future maintenance responsibilities of the aforementioned 4" Force Main originally extended by
COMPANY, and shall have the ability to operate the line in accordance with city policy
thereafter to effectuate the public purpose.
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