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HomeMy WebLinkAboutO-2000-2455 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date R~~';:t~r t3; 2000 Requested By: _~ S G'lIett Department: Public Wotks Appropriation Source of Funds: N/A Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: N/A Exhibits: Ordinance No. 00- Amount Requested: N/A Exhibits: WatlOr Service Al!reement Extension Budgeted Item: YES NO Exhibits: nri~jnal Water Service Agreement SUMMARY & RECOMMENDATION On June 12, 1995, City Council approved a Water Service Agreement with Akzo-Nobel, Chemicals, Inc., with water service beginning October 27, 1995. The Agreement was for a five- year period, and was based on a total of 550 on-site employees and contract employees, for a total average daily demand of27,500 gallons, or an average monthly demand of 838,750. With the recent purchase of an additional 3.5 million gallons per day of treated surface water at the Southeast Water Purification Plant, the City is able to continue supplying potable water outside the city limits. It is recommended that the Water Service Agreement between the City of La Porte and Akzo-Nobel be renewed, with the expiration date tied to the expiration of the new Industrial District Agreements, from June 12,2000 to December 31,2007. As with the current Agreement, it shall automatically expire at such time as there is no effective Industrial District Agreement. Action Required bv Council: Consider approval of Ordinance No. 00-_ authorizing the City to renew a Water Service Agreement with Akzo-Nobel Chemicals, Inc. Approved for City Council Al!enda ~~ -r. ~~ Robert T. Herrera, City Manager \t-'l...J0 Date ORDINANCE NO. 2000- /P{.S-S" AN ORDINANCE APPROVING AND AUTHORIZING AN EXTENSION OF THE WATER SEWER AGREEMENT BETWEEN THE CITY OF LA PORTE AND AKZO NOBEL CHEMICALS INC., FOR A TERM BEGINNING JUNE 12, 2000, AND EXPIRING DECEMBER 31, 2007; 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 descr ibed in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary 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. PASSED AND APPROVED, this 13th day of November, 2000. By: CITY OF LA PORTE 4:~~. Mayor ATTEST: vfl~ dl/k (j .IU/tI. Mart a A. Gillett City Secretary AP~ 1t!ch Knox W. Askins, City Attorney 2 WATER SERVICE AGREEMENT STATE OF TEXAS { { COUNTY OF HARRIS { This agreement made and entered into by and between the City of La Porte, a municipal corporation of Harris County, Texas, herein called "City", and Akzo Nobel Chemicals Inc., a corporation, hereinafter called "Company". 1. That certain water service agreement between the parties, dated June 12, 1995, is hereby renewed and extended by agreement of the parties, for a term commencing on June 12, 2000, and expiring on December 31, 2007, upon the terms and provisions of the prior water service agreement between the parties. Entered into effective the 12th day of June, 2000. AKZO NOBEL CHEMICALS INC. By: ;2 /~g,_______ Narte ~*';~ ;.,;;~~~~ Pasadena site Manager 13000 Bay Park Road Pasadena, TX 77507 BY:~~:/p-- orman L. Malone Mayor ATTEST: vfJ1 a1;/J~ !l !tiLJ- Martha A. Gil!ett City Secretary ~~~ Knox W. Askins City Attorney 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 Akzo Nobe 1 Chern; ca 1 sIne. . a corporation, hereinafter called "COMPANY". 1 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. CITY and COMPANY have entered into a ''Utility Extension A(ITeement" of even date herewith. which provides for the extension of CITY'S potable water to COMPANY'S propertY. II. COMPANY is desirous of purchasing potable water from CITY for usual human domestic consumption and uses, and not for use for industrial processes of any kind. 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 nn limited water service as requested. 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: ill. CO:MP ANY has made the following representations to CITY as to its number of employees, as of ~e .~ate of this agreement, upon which representations CITY has relied in entering into this Agreement. Number of Employees on-site 3?5 Number of Contract Employees 225 Total on-site 550 IV. CITY has determined that adequate facilities are available to CITY to furnish potable water to CO:MP ANY based on the following terms and conditions, to~wit: (A) Payment to CITY of a one time anminil::trative connection charge of $15.000. (B) The average daily demand is established at 27.500 (_) gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY. (C) The average monthly demand of 838.750 () gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used . to facilitate service billings. (D) The cost of water up to the average monthly demand of 838.750 (--> gallons shall be one hundred fifty.percent (150%) of the CITY'S current rate as establisbed from time to time for commercial customers inside its corporate limits. (E) 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 current rate as established from time to time for commercial customers inside its corporate limits. (F) Nothing contained in this Ae,oreement shall obligate CITY to furnish more than the average monthly demand of 838,750 C-) gallons. Repeated consumptions greater than the established average monthly demand may result in teimination of service. (G) 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. (H) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (I) The total cost for the engineering design and construction of the potable water main will be the responsibility of COMPANY. (J) 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. (K) 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. (L) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (M) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (N) There shall be no resale of !he 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 shall have final authority over size, location, materials, and other engineering matters concerning the extension of water mains to COMPANY'S property. These matters are the subject of a Utility Extension Agreement between the parties, of even date herewith. CITY will have ownership and maintenance responsibility for its water mains, up to COMPANY'S water meter. In the event the 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 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. VIIT. 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 ~y defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right ~o summarily correct, at COMPANY's expense, any defect or deficiency, when in its opinion the integrity pf the public water supply is threatened. IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare. for..transition to another water supply. H 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 a Utilitv Extension A2reement of even date herewith. and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement and the Utilitv Extension Aereement shall control, to the extent of such conflict. The term of this Agreement shall be for five years plus any renewals and extensions thereof. 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 12 day of June . 1995. Akzo Nobel Chemicals Inc. Company By: fJuJhA~~ Name: Paul A. Gri ssom Title: Pasadena Site Manager Address: 13000 Bay Park Rd Pasadena. TX 77507 ~: (L~ ~ L~~~ru } i;; By. CITY OF LA PORTE !t~~~4 Norman . alone Mayor AP~VED~~ . Knox W. Askins City Attorney 'City of La Porte PO Box 1218 La Porte, TX 77572-1218 Phone: (713) 471-1886 Fax: (713) 471-2047 By: <3.~ -r. ~ Robert T. Herrera City Manager City of La Porte PO Box 1115 La Porte, TX 77572-1115 Phone: (713) 471-5020 Fax: (713) 471-7168