HomeMy WebLinkAboutO-2011-3367 WSA/SSA with FR/CAL INTERPORT, LLC B
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: July 11, 2011
Source of Funds: N/A
Requested By: Tim Tietiens
Account Number: N/A
Department: Planning
Amount Budgeted: N/A
Report: Resolution: Ordinance: X
Amount Requested: N/A
Exhibits: Budgeted Item: _YES _X,_NO
1) Ordinance
2) Water Service Agreement
3) Sanitary Sewer Service Agreement
4) Area Map
SUMMARY & RECOMMENDATION
FR/CAL INTERPORT, LLC, has requested water and sanitary sewer service to Reserve B, Block
1, a 42 -acre tract located at 13301 Bay Area Blvd. in the Bayport Industrial District (See Exhibit 4
- Area Map). Council has approved a policy to provide utility service to companies located outside
its city limits and within its industrial districts. These companies are required to maintain a current
Industrial District Agreement (IDA) with the City. FR/CAL INTERPORT, LLC, has a current
IDA with the City and desires to pursue 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 water and
sanitary sewer service is 17,400 gallons per day, respectively. The company will pay one and one-
half (1 -'Y2) times the City's current utility rate for its utility services. FR/CAL INTERPORT, LLC,
has paid total administrative fees to the City in the amount of $30,000 ($15,000 per each
agreement). FR/CAL INTERPORT, LLC will fund the installation of utility lines required for
water and sanitary sewer service to its facility.
The term of FR/CAL INTERPORT, LLC's Phase II Water Service Agreement expires on
December 31, 2019, plus any renewals and extensions thereof. However, these agreements shall
automatically expire at such time as there is no effective Industrial District Agreement between the
parties or if the City exercises the right of termination.
Staff recommends approval of Water and Sanitary Sewer Service Agreements with FR/CAL
INTERPORT, LLC as submitted herein.
Action Required by Council:
Approve an ordinance authorizing the City Manager to execute a Water Service Agreement and a
Sanitary Sewer Service Agreement with FR/CAL INTERPORT, LLC for its facility at 13301 Bay
Area Blvd. in the City's Bayport Industrial District.
A ed fo RSA' un, A • enda
Rl City Manager Date
ORDINANCE NO. 2011- 1p�
AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT
AND 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 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. 2011- n PAGE 2
PASSED AND APPROVED, this 11 day of \TA , 2011.
CITY •. A PORTE
BY: �� �
Coui'. R. Ri• •
.r
ATTEST:
-
Patrice Fogar
City Secretary
APPROVED:
Ai 7
Knox W. Askins
City Attorney
1
STATE OF TEXAS §
COUNTY OF HARRIS §
CITY OF LA PORTE
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 FR/CAL
INTERPORT, LLC, hereinafter called "COMPANY ".
I.
COMPANY is the owner of certain real property which is situated within the CITY'S
Battleground or 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 potable water from CITY for usual human domestic
uses. Previous planning considerations for the long -range potable water supply of CITY did not
include the needs of properties located outside the corporate 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 the number of employees that
will be located at the COMPANY'S property as of the date of this agreement, upon which
representations CITY has relied in entering into this Agreement.
Upon review of these representations, the City has determined the following:
Number of Full -Time Employees on site 348
+ Number of Full -Time Contract Employees on site 0
= Total On -Site Full -Time Employees 348
Potable Water Approved for Domestic Use
(Total on -site Employees times 50 gpd per employee) 17,400
Total Amount of Potable Water Approved for
COMPANY (Average Daily Volume, gpd) 17,400
2
Iv.
CITY has determined that adequate resources are available to 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 fee of $15,000.
(B) The total amount of potable water approved to COMPANY is established at
Seventeen Thousand Four Hundred (17,400) gallons per day. This number is based on an
average of fifty (50) gallons per employee per day as established by CITY.
(C) The average monthly volume of Five Hundred Thirty Thousand Seven Hundred (530,700)
gallons is established by multiplying the average daily volume by a factor of 30.5, which shall
be used to facilitate CITY'S utility service billings.
(D) Nothing contained in this Agreement shall obligate CITY to furnish more than the average
monthly volume of Five Hundred Thirty Thousand Seven Hundred (530,700) gallons.
Repeated consumption greater than the established average monthly volume may result in
termination of service.
(E) COMPANY shall pay the standard water tap /meter fee based on CITY'S current tap /meter
fee schedule. Upon final approval of COMPANY'S on -site and/or off -sitc utility
construction by CITY, COMPANY shall pay the CITY'S standard water deposit fee through
CITY'S Utility Billing Division prior to receiving water service from CITY.
(F) The cost of water up to the average monthly volume of Five Hundred Thirty Thousand Seven
Hundred (530,700) gallons shall be billed at one hundred fifty percent (150 %) of the CITY'S
rate as established from time to time for commercial customers inside its corporate limits.
(G) The cost of water for amounts used in excess of the established average monthly volume shall
be billed at two hundred percent (200 %) of the CITY'S rate as established from time to time for
commercial customers inside its corporate limits.
(II) COMPANY shall submit a preliminary 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.
These requirements shall be shown on the final site plan and approved by City.
(I) COMPANY'S site design and site development will, in certain cases, be subject to specific
"Rules and Regulations" as defined in Exhibit "C" of COMPANY'S Industrial District
Agreement with CITY.
(J) 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.
(K) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY
to protect CITY from any possible cross - connections.
3
(L) COMPANY'S potable water supply system will be segregated from any existing and future fire
protection system.
(M) 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.
(N) COMPANY agrees to be bound by all applicable ordinances of CITY, relative to the furnishing
of potable water to customers within the corporate limits of CITY.
(0) There shall be no resale of water provided by CITY, nor any extension of service lines by
COMPANY to serve other parties.
(P) CITY'S personnel shall have the right of prior review and approval of COMPANY'S plans and
specifications for the plumbing system(s). CITY shall have the right to inspect any and all work
related to the furnishing of potable water to COMPANY.
(Q) 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.
(R) CITY reserves the right to enforce its drought contingency plan on all water customers at
CITY'S sole discretion.
(S) CITY does not guarantee its water system to provide specific water pressure and/or water
volume requirements of COMPANY.
Y.
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.
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 entry at all reasonable times for the purpose of inspection of
COMPANY'S water facilities, reading its water meter(s) 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.
4
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) calendar days from date of written notice by CITY 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 expire on December 31, 2019, 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 day of
SEE PAGE 4 -A (ATTACHED)
Signature of Company's Authorized Representative
Printed Name:
Company Representative's Title:
Company's Address:
4 -A
FR/Cal Interport, LLC
a Delaware limited liability company
By: FirstCal Industrial, LLC,
a Delaware limited liability company,
its sole member
By: California State Teachers' Retirement System,
a public entity, its manager
By: Principal Real Estate Investors, LLC,
a Delaware Limited liability company,
its authorized agent
By: I ze - 1b Ltl6G*
Name: William G. Williams III
Title: Investment Director — Asset Management
Company's Address:
FR/Cal Interport, LLC
c/o Sealy & Company, LLC
7020 Porhvest Drive, Suite 100
Houston, TX 77024
5
ATTEST: CITY 01 ' ' ■RTE
‘-i&b _ 10.0
OF Ai 4 4 A
Patrice Fogarty Lou,. Rigby lig
City Secretary Mayor
APPROVED: 0 9 , /
`'� G'!� GL' B ill , • FCtX—
MO
Knox W. Askins Ron Bottoms
City Attorney City Manager
6
EXHIBIT "A"
to Water Service Agreement
The Water Service Agreement is hereby amended and supplemented to include the following
additional requirements agreed to by CITY and COMPANY. These requirements represent
contractual obligations of COMPANY to receive water service from CITY per the terms of the
Water Service Agreement and this addendum. COMPANY shall fulfill each of the following
additional requirements as set forth below.
Additional Requirements of COMPANY:
I. COMPANY shall pay to CITY $ N/A as a pro -rata reimbursement for construction of the
water main serving its property by other parties.
Initial for Approval:
CITY APPROVAL:
COMPANY APPROVAL.W1
1
STATE OF 'I`E,XAS §
COUNTY OF HARRIS §
CITY OF LA PORTE
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 FRJCAL
INTERPORT, LLC, hereinafter called "COMPANY ".
I.
COMPANY is the COMPANY of certain real property, which is situated in CITY'S
Battleground or Bayport Industrial District and not within the corporate limits of the CITY. CITY
and COMPANY are parties to a current Industrial District Agreement.
11.
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 the number of employees, as of
the date of this agreement, upon which representations CITY has relied in entering into this
Agreement.
Upon review of these representations, the City has determined the following:
Number of Employees on -site 348
Number of Contract Employees 0
Total on -site Employees 348
Sanitary Sewer Desired for Domestic Use
(Total on -site times 50 gpd per employee) 17,400
Total Amount of Sanitary Sewer Approved
For COMPANY (Average Daily Volume, gpd) 17,400
2
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 pay the standard sewer tap fee based on CITY'S current sewer tap fee
schedule. Upon final approval of COMPANY'S on -site and/or of site utility construction by
CITY, COMPANY shall pay the CITY'S standard sewer deposit fee through CITY'S Utility
Billing Division prior to receiving sewer service from CITY.
(C). The average daily volume is established at Seventeen Thousand Four Hundred (17,400)
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 volume is calculated to be eighty -five percent (85 %) of the average daily
volume 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 volume of Four Hundred Fifty
One Thousand Ninety Five (451,095) 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 sanitary sewer service for amounts in excess of the established average monthly
volume shall be two hundred percent (200 %) of the CITY'S rate as established from time to
time for conunercial customers inside its corporate limits.
(0). Nothing contained in this Agreement shall obligate CITY to furnish more than the average
monthly volume of Four Hundred Fifty One Thousand Ninety Five (451,095) gallons.
Repeated sanitary sewer delivery greater than the established average monthly volume 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 shall file application with CITY for an Industrial Waste Permit and hereby agrees
to be bound by CITY'S Industrial Waste Ordinance (Chapter 74, Article II of the Code of
Ordinances) and any subsequent amendments or revisions.
(K). Owner shall install a sanitary sewer sampling well in accordance with CITY'S standards to
ensure no sewer waste, other than domestic waste enters its sanitary sewer system.
3
(L). 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.
(M). 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.
(N). COMPANY shall install a sanitary sewer sampling well in accordance with CITY's standards.
(0). 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
sewer service to COMPANY.
(P). 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.
(Q). COMPANY shall subunit 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 tines
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 teens 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 tennination of Agreement. CITY shall have the right to
4
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 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. Flowever, 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
SEE PAGE 4 (ATTACHED)
Signature of Company's Authorized Representative
Printed Name:
Company Representative's Title:
Company's Address:
4 -A
FRICaI Interport, LLC
a Delaware limited liability company
By: FirstCal Industrial, LLC,
a Delaware limited liability company,
its sole member
By: California State Teachers' Retirement System,
a public entity, its manager
By: Principal Real Estate Investors, LLC,
a Delaware limited liability cOmpariy,
its authorized agent
By:
Name: William G. Williams III
Title: Investment Director — Asset Management
Company's Address:
FRICaI Interport, LLC
c/o Sealy & Company, LLC
7020 Pomvest Drive, Suite 100
Houston, TX 77024
5
ATTEST: CITY OF Li
P,
W. all 4 A
Patrice Fogarty Louis ' R Eby
City Secretary Mayor
APPROV D� ,
7 / � Ey' � �
Knox W. Askins ottoms
City Attorney City Manager
6
EXHIBIT "A"
to Sanitary Sewer Service Agreement
The Sanitary Service Agreement is hereby amended and supplemented to include the following
additional requirements agreed to by CITY and COMPANY, These requirements represent
contractual obligations of COMPANY to receive sewer service from CITY per the terms of the
Sanitary Service Agreement and this addendum. COMPANY shall fulfill each of the following
additional requirements as set forth below.
Additional Requirements of COMPANY:
I. COMPANY shall pay to CITY S N/A as a pro -rata reimbursement for construction of the
sanitary sewer main serving its property by other parties.
Initial for Anproval:
CITY APPROVAL:
COMPANY APPROVAL
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