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HomeMy WebLinkAboutO-2009-3200 WSA/SSA with Two Zero One M Texas, LLC B REQUEST FOR CITY COUNCIL AGENDA ITEM ADDroDriation Agenda Date Requested: December 14.2009 Source of Funds: N/A Requested By: Tim Tietiens Account Number: N/A Department: Plannin!! Amount Budgeted: N/A Report: _Resolution: _Ordinance: -L 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 -X-NO SUMMARY & RECOMMENDATION Heller Industrial Parks, Inc. has approached the City for water and sanitary sewer seNice 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 seNice 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 seNice under the terms of this policy and its Settlement Agreement with the City of La Porte of January 22, 2009. 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-~) 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 SeNice Agreement and Sanitary Sewer SeNice 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. Action ReQuired bv Council: pprove an ordinance authorizing the City to enter into a Water SeNice Agreement and a Sanitary Sewer S Nice Agreement with Two Zero One M Texas, LLC. (J,{tD 49 Date ORDINANCE NO. 2009- 3;100 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 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. ExH/.8/r '',9'~ ORDINANCE NO. 2009- 31C)() PASSED AND APPROVED, this /L{JI- ATTEST: ~d~ A.LtI/ Mart a A. Glllett City Secretary APPROVED: ~r~ Clark T. Askins City Attorney day of fJ L (./ CITY OF LA PORTE By: ~Q~ ~~y( Mayor PAGE 2 , 2009. 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 Battle!!round 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 offumishing 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. 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. (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 FIVE HUNDRED (2.500) 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 HUNDRED 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 HUNDRED 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 HUNDRED 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. (1) 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 personnel 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 COMP ANY 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. 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. 5 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 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 (l0) 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. 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 0, ~in,!,on. ENTERED INTO and effective the ~ . / day of /- y {~ , 2009 ILl '.1 L.. TWO ZERO ONE M TEXAS L. ~: ~ W .I:'W>'j{,c:J ~~/:p,c."} SIgnature: f1/EiJ eJ. ~,~Ol\ f\1") ~.s7 / CITY OF LA PORTE 6 ~ CITY OF LA PORTE ATTEST: ~MJr~J C/. /1$ Martha A. Gillett City Secretary AP~: ~ -rrt~ Clark T. Askins City Attorney 7 CITY OF LA PORTE Ron Bottoms City Manager 8 This is EXHmIT 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~ CITY ~: ADDITIONAL REOUIREMENTS COMPAN}-- The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional actions as specifically set forth below. These actions 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 CITY for obtaining water and/or sanitary sewer service from CITY. All actions listed below shall be completed by COMPANY prior to obtaining a utility service account from CITY. 1) CITY METER LOCATION: The location of the City water meter should be at or near the SH 225 Right-of- Way. This will be the meter read and billed by the City. 2) PROVIDE SUB-METER FOR WATER SERVICE TO 218 M TEXAS: A formal agreement between 201 M Texas and 218 M Texas to sub-meter the water service to 218 M Texas shall be provided to City. 3) DEDICATE PRIVATE JOINT-USE UTILITY EASEMENT Execute and record a "private" joint-use utility easement over the property of 201 M Texas extending to and benefitting the property of 218 M Texas for water and sanitary sewer service lines. A copy of the subject recorded easement shall be furnished to the City. 4) NO INSTALLATION OF FIRE HYDRANTS ON PRIVATE SERVICE LINE: No fire hydrants shall be installed on Company's private water service line. r 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. COMPANY is the owner of certain real property, which is situated in CITY'S Battlel!round 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 offumishing 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, 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 27 Total on-site Employees 50 Sanitary Sewer Desired for Domestic Use (Total on-site times 50 gpd per employee) 2500 Total Amount of Sanitary Sewer Approved by Company (Average DailyDemand, gpd) 2500 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. (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 FIVE HUNDRED (2.500) 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%) ofthe 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 SIXTY FOUR THOUSAND EIGHT HUNDRED THIRTEEN (64.813) 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 SIXTY FOUR THOUSAND EIGHT HUNDRED TIDRTEEN (64,813). 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 4 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 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. 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 (l0) days may result in termination of Agreement. CITY shall have the right to 5 summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the 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 ofthe 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 I LfIIday of ~ - ,2009. Name: Title: Vresl ~'\+ Address: .;)05" M;/ \ @-c:l, t1 ~^ I NY O'br;)7 CITY OF LA PORTE ATTEST: ~tlft/tit/ c?t:iI~ Martha A. Gillett City Secretary AP~,O,. V D: ./ -r~ Clark T. Askins City Attorney 6 CITY OF LA PORTE BY:\~ Ron Bottoms City Manager 7 This is EXlDBIT 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 /;< ~ It( ;JtJ () 7 ~ial: CI~ COMPANY r ADDITIONAL REOUIREMENTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional actions as specifically set forth below. These actions 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 CITY for obtaining water and/or sanitary sewer service from CITY. All actions listed below shall be completed by COMPANY prior to obtaining a utility service account from CITY. 1) SAMPLING WELL: COMPANY shall install a sanitary sewer sampling well in accordance with CITY's standards. ,2) INDUSTRIAL WASTE PERMIT: COMPANY shall submit application to CITY for industrial waste permit. r