HomeMy WebLinkAboutO-2009-3168 Tabled WSA/SSA - Two Zero One M Texas, LLC
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: AUl!:ust 24. 2009
Source of Funds: N/A
Requested By: Tim Tietiens
Account Number: N/A
Department: Planninl!:
Amount Budgeted: N/A
Report: _Resolution: _Ordinance: ...K...-
Amount Requested: N/A
Exhibits:
A. Ord. for Water & Sewer Service Agreements
B. Water Service Agreement
C. Sanitary Sewer Service Agreement
D. Area Map
Budgeted Item: _YES ..L..NO
SUMMARY & RECOMMENDATION
Heller Industrial Parks, Inc. has approached the City for water and sanitary sewer service to its existing
facility, "Two Zero One M Texas, LLC" located at 11931 SH 225 in the City's Battleground Industrial District
(see Exhibit "D" - 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 a current Industrial District Agreement with the City. Council has previously approved an IDA
with Heller Industrial Parks, Inc. for Two Zero One M Texas (IDA-2007-111) and the company desires to
obtain water and sanitary sewer service under the terms of this policy.
Based on the company's stated demand for domestic uses, the average daily demand for domestic water
and sewer usage is 2,500 gpd which is within the policy's limit of 30,000 gallons per day. The applicant,
under the terms of the policy, will pay one and one-half (1-Yz) times the City's current utility rate.
Additionally, Two Zero One M Texas, LLC is subject to a one-time connection fee associated with its water
and sewer agreements in the amount of $5,000 each ($10,000 total), for which payment has been received.
The terms of the company's Water Service Agreement and Sanitary Sewer Service Agreement will 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 termination.
App ve an ordinance authorizing the City to enter into a Water Service Agreement and a Sanitary Sewer
Servi e Agreement with Two Zero One M Texas, LLC.
ORDINANCE NO. 2009- 31(E ~
AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT
AND A SANITARY SEWER SERVICE AGREEMENT BETWEEN THE CITY OF LA
PORTE AND TWO ZERO ONE M TEXAS, 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 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 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.
ORDINANCE NO. 2009-
PASSED AND APPROVED, this
ATTEST:
Martha A. Gillett
City Secretary
APPROVED:
~tJ
Knox W. Askins
City Attorney
By:
day of
CITY OF LA PORTE
PAGE 2
, 2009.
Barry Beasley
Mayor
1
STATE OF TEXAS ~
COUNTY OF HARRIS ~
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
Two Zero One M Texas, L.L.C. hereinafter called
"COMPANY".
I.
COMPANY is the owner of certain real property, which is situated in CITY'S
Battleground 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. 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, as
of the date of this agreement, upon which representations CITY has relied in entering into this
Agreement.
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2
Upon review of these representations, the City has determined the following:
Number of Company Employees on site
23
Number of Contract Employees on site
27
Total on-site Employees
50
Potable Water Approved for Domestic Use
Total on-site Employees times 50 gpd per employee)
2500
Total Amount of Potable Water Approved for
Company (Average Daily Demand, gpd)
2500
IV.
CITY has determined that adequate facilities are available for 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
$ 5 ,000.00
(B) 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.
(C) The total amount of potable water approved (average daily demand) is established at
Two thousand fi ve hundred ( 2500 ) gallons per day. This number is
based on an average of fifty (50) gallons per employee per day established by CITY.
(D) The average monthly demand of Seventy six thousand two fifty (76,250)
gallons is established by multiplying the average daily demand by a factor of 30.5, which
shall be used to facilitate service billings.
}
3
(E) The cost of water up to the average monthly demand of
Seventy six thousand two fifty ( 76.250 ) 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.
(F) 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.
(G) Nothing contained in this Agreement shall obligate CITY to furnish more than the average
monthly demand of Seventy _six thousand two fifty (76.250 ) gallons per
month. Repeated consumption greater than the established average monthly demand may result
in termination of service.
(H) 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.
(I) CITY reserves the right to enforce its drought contingency plan on all water customers at
CITY'S sole discretion.
(1) 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.
(K) 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.
(L) 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
}
4
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.
(M) A reduced pressure zone backflow preventer shall be installed and maintained by
COMPANY to protect CITY from any possible cross-connections.
(N) The potable water supply system will be segregated from any existing and future COMPANY
fire protection system.
(0) There shall be no resale of the water provided by CITY, nor any extension of service lines by
COMPANY to serve other parties.
(P) 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.
(Q) CITY does not guarantee its water system will provide specific water pressure and/or water
volume requirements of COMPANY.
(R) COMPANY is responsible for design of adequate and appropriate systems for fire suppression
systems to its facilities.
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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 COMPANY.
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.
VIT.
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
COMPANY'S facility.
Vill.
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 water supply is threatened.
}
6
IX.
Upon receipt of written notice of termination, COMPANY shall 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 terminate water service at its sole discretion.
x.
In the event of any conflict between the terms and provisions of this Water Service
Agreement and the terms and provisions of the Industrial District Agreement between the parties,
the terms and provisions of the Water 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 and effective the
day of
,2009
')J:rc., (f1~j~
'lSV" t-\e1\
Signature:
Name:
Title: \=>re S-I ~eft-\-
Address: ;).ot;; vYli'( l eJ
~SO", rV-S- fY6't37
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CITY OF LA PORTE
.' .~~Q
::::::. ~."
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. . . . . . '. . .. . .
.:: ~.~:.: ~ ~.~X\~:.
. : : : . By:
ATTEST:
Martha A. Gillett
City Secretary
APPROVED: ell
j?Y/J i~
~ (jJ. .~
Knox W. Askins
City Attorney
By:
City Attorney
PO Box 1218
La Porte, TX 77572-1218
Phone: (281) 471-1886
Fax: (281) 471-2047
7
CITY OF LA PORTE
AllonE. PUller '13:arr:j l$'eed (€!:j
Mayor
Ron Bottoms
City Manager
City of La Porte
604 West Fairmont Parkway
La Porte, TX 77571
Phone: (281) 471-5020
Fax: (281) 471-7168
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8
This is EXHIBIT A, consisting of I page,
referred to in and part of the Water Service
Agreement and/or Sanitary Sewer Service
Agreement between CITY and COMPANY
Dated
Initial:
CITY
ADDITIONAL REQillREMENTS
COMPANYr
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 andlor 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 andlor 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 andlor 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 9
COUNTY OF HARRIS 9
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
Two Zero One M Texas, L.L.C. hereinafter called "COMPANY".
I.
CaMP ANY IS the owner of certain real property, which is situated in CITY'S
Sa tt 1 eg rou nd Industrial District and not within the corporate limits of the CITY.
CITY and COMPANY are parties to a current Industrial District Agreement.
II.
CaMP ANY 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:
ill.
CaMP ANY has made certain representations to CITY as to its number of employees, as of
the date of this agreement, upon which representations CITY has relied in entering into this
Agreement.
}
2
Upon review of these representations, the City has determined the following.
Number of Employees on-site
23
Number of Contract Employees
-1L
Total on-site Employees
~
Sanitary Sewer Desired for Domestic Use
(Total on-site times 50 gpd per employee)
2500
Total Amount of Sanitary Sewer Approved
by Company (Average Daily Demand, gpd)
251lO...
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 $ 5,000.00 .
(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
Two thousand fi ve hundred ( 2500 ) gallons per day. 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 monthly demand of
Seventy six thousand two fifty ( 76,250
) 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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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 Sev_entv six thousand two fi fty (76,250 ). Repeated
sanitary sewer delivery greater than the established average monthly demand may result in
termination of service.
(R). 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.
(1). COMPANY agrees that it shall be bound by CITY'S Industrial Waste Ordinance (Chapter 74,
Article IT 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
}
4
inspectors shall have the right to inspect any and all work related to the furnishing of sanitary
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 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.
VIT.
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.
VITI.
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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5
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
day of
,2009.
1Sy~
Two Zero One M Texas, L.L.C.
. Company...
H-elkr DcWs=\rI~\ Pb ~)--+Acj t11llchf1jfj
Name:
Title:_p r(s~Jc/r+-
Address: ~l.) rv;(- {I {J,
~J(s.o(\, (0) O~g})7
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CITY OF LA PORTE
ATTEST:
Martha A. Gillett
City Secretary
AP~1J ~
Knox W. Askins
City Attorney
By:
By:
CITY OF LA PORTE
Alton E. r 6!'t@t.. "IS a r-r ~ 8 e cd le::J
Mayor
Ron Bottoms
City Manager
6
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7
This is EXIllBIT A, consisting of 1 page,
referred to in and part of the Water Senrice
Agreement and/or Sanitary Sewer Senrice
Agreement between CITY and COMPANY
Dated
Initial:
CITY
COMPANY!=-
ADDITIONAL REQUIREMENTS
The Agreement is amended and supplemented to include the following agreement of the parties.
COMP ANY shall provide additional improvements as specifically set forth below. These
agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell
water andlor sanitary sewer to COMPANY pursuant to the terms of the Water Service
Agreement andlor Sanitary Sewer Service Agreement and this addendum. Said additional
improvements undertaken by COMP ANY 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 andlor
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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