HomeMy WebLinkAbout110 - 08/15/1995 - AUTHORIZING A WATER SERVICES AGREEMENT WITH SYMBIOS LOGIC INC ORDINANCE NO. 110, 1995
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE MAYOR TO ENTER INTO A WATER
SERVICES AGREEMENT WITH SYMBIOS LOGIC INC.
WHEREAS,the City's Water Utility("the Utility")currently provides potable water services
to Symbios Logic Inc. ("SLI") in connection with SLI's operation of its semi-conductor
manufacturing plant located at 2001 Danfield Court,Fort Collins,Colorado, 80526("the Plant") and
charges SLI for those services based on the rates scheduled for non-residential customers who have
a three inch (Y) water meter as established in Sec. 26-27 of the Code of the City of Fort Collins; and
WHEREAS, the Utility has performed an analysis of SLI's potable water usage at the Plant
in order to estimate maximum daily and maximum hourly water usage; and
WHEREAS,based on such analysis,SLI exhibits significantly lower than average maximum
daily and maximum hourly service requirements at the Plant as compared with other non-residential
customers with three inch (3") water meters; and
WHEREAS, lower maximum daily and maximum hourly service requirements translate into
a lower unit cost for water in accordance with the Utility's 1995 Cost of Service Study; and
WHEREAS, SLI has requested the City of Fort Collins to provide potable water services to
the Plant under an agreement that reflects the cost of such services in accordance with documented
water usage patterns established by the Utility; and
WHEREAS, under such agreement the Utility would provide potable water service to the
Plant for an initial term beginning from the date of the agreement to January 1, 1996, at a minimum
monthly charge ofa11450 forthe 51st-two thousand(21000) gallons used per month plus a charge
of 780 per thousand gallons of water used by SLI each month in excess of the first two thousand
gallons used; and
WHEREAS, the agreement would continue after the initial term for annual terms (January
I through December 31) on a year to year basis unless written notice of termination of the agreement
is given by either party to the other party at least thirty (30) days prior to the end of the initial term
or any subsequent annual term; and
WHEREAS,the agreement would also provide that during each annual term of the agreement
that SLI, at its sole expense, would monitor on a quarterly basis usage at the Plant and provide to the
City the data obtained in such monitoring; and
WHEREAS, the agreement would also provide that for each subsequent annual term of the
agreement that SLI's user charges payable to the City for potable water supplied to the Plant would
increase by the same percentage as user charges for non-residential customers based on a meter size
of three inches (3") increase pursuant to the Code of the City of Fort Collins for that year; and
WHEREAS, Section 6 of Article XII of the City Charter provides, in part, that the Council
shall, by ordinance, fix and establish from time to time such rates, fees, or charges for water
furnished by the City as will produce revenues sufficient to pay the cost of the Utility to provide such
services; and
WHEREAS, the Utility's staff has determined that the user charges to be charged under the
proposed agreement with SLI would produce revenues sufficient to pay the Utility's costs of
providing potable water services to SLI under the proposed agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
OQI_LINS-that_the-Mayor be, and-hereby-is, authorized-on-behalf of the City of Fort Collins to enter
into a water services agreement with SLI to provide potable water services to the Plant upon the
terms and conditions set forth above.
Introduced, considered favorable on first reading, and ordered published this 1st day of
August, A.D. 1995, and to be presented for final passage on the I y of August, . . 1995.
or
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of Aug 1995.
Mayor
ATTEST:
City Clerk