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HomeMy WebLinkAboutO-2009-3202 WSA with ELE Holdings La Porte, Ltd. D / REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: December 14. 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. Ordinance B. Water Service Agreement C. Area Map Budgeted Item: _YES ..LNO SUMMARY & RECOMMENDATION ELE Holdings La Porte, Ltd. has approached the City for water service to its existing facility at 11345 SH 225 in the City's Battleground Industrial District (see Exhibit "C" for area map). The company had an existing Water Service Agreement with the City for its entire 35 acre tract. However, the owner has recently subdivided the acreage into two individual parcels of 28 acres (located on the west side) and 7 acres (located on the east side). The owner has recently sold the 28 acre tract to another company and has relocated an existing fire suppression tank from the 28 acre tract to the 7 acre tract he has developed with an office/warehouse facility. As a result, the owner must execute a new Water Service Agreement for his 7 acre tract. A separate Water Service Agreement will be required when development occurs on the 28 acre tract. 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 ELE Holdings La Porte, Ltd. (2007-IDA-71) and the company desires to obtain water service under the terms of this policy. Based on the company's stated demand for domestic uses, the average daily demand for domestic water usage is 1,100 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-Y2) times the City's current utility rate. An administrative fee of $5,000 associated with the company's Water Service Agreement has been received by the City. The terms of the company's Water 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. Action Required bv Council: Approve an ordinance authorizing the City Manager to execute a Water Service Agreement with ELE .ngs La Porte, Ltd. for water service to its facility at 11345 SH 225. /A.(;. A~ ate ORDINANCE NO. 2009- ,3 d.- (),2 AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND ELE HOLDINGS LA PORTE, LTD; 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. Em/err' 'W" ORDINANCE NO. 2009-~'~ (\-1_ PASSED AND APPROVED, this I~ ATTEST: lJ!J !lAd.", f1~ Mart a A. Gillett City Secretary APPROVED: ~T-4~ C arK T. Askins City Attorney day of f).f C . . CITY OF LA PORTE By: 1~'9 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 ELE HOLDING LA PORTE, LTD. 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. 2 Upon review ofthese representations, the City has determined the following: Number of Company Employees on site 12 Number of Contract Employees on site 10 Total on-site Employees 22 Potable Water Approved for Domestic Use (Total on-site Employees times 50 gpd per employee) 1100 Total Amount of Potable Water Approved for Company (Average Daily Demand, gpd) 1100 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$ N/A. (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 One Thousand One Hundred (1, I 00) 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 Thirty Three Thousand Five Hundred Fifty (33,550) 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 Thirty Three Thousand Five Hundred Fifty (33,550) 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. (0) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of Thirty Three Thousand Five Hundred Fifty (33,550) 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 COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors 4 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. 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 (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. 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 6 parties or if CITY exercises its right of termination. ENTERED INTO and effective the J!I/!:. day of f).t (, - , 2009 Signature: Name: 0'aAJ;V.fIt IV It- Title: 1v',~.'d~ IJent.Y(t1t,...ut~ ,:) &(EChMe,-;J PaN' U4 ~ }k. Address; 2..3>45 -~~ b~ ~sk IX. {100~ J - CITY OF LA PORTE CITY OF LA PORTE ATTEST: YJlI1~ .6fA4J Martha A. Gillett City Secretary APtz' ~T /I-~ Clark T. Askins City Attorney 7 By: Ron Bottoms City Manager 8 referred to in and part of the Water Service Agreement and/or Sanitary Sewer Service Agreement between CITY and COMPANY Dated \ -Z L1/'lQO? ' Initial: CITY /!L:- ADDITIONAL REOUIREMENTS COMPANY ~ 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 CITY for providing water service to COMPANY. 1) BEAUTIFICATION EFFORTS: COMPANY shall submit a Landscaping Plan subject to review and 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. 2) METERING OF ON-SITE WATER STORAGE TANK: COMPANY shall provide metering of its on-site water storage tank. Said metering shall be to City specifications and will be subject to inspection and approval by City. 3) TESTING OF PREVIOUSLY-INSTALLED ON-SITE WATER LINElS): COMPANY shall provide for testing of previously-installed on-site waterline(s). Said testing will be conducted under the supervision of appropriate City personnel present.