I. RECOMMENDATION:
Authorize City Manager to enter into an Agreement with Turk Station Pistachio, LLC to Provide Out-Of-City Water Services.
II. BACKGROUND:
William Gleason, representing Turk Station Pistachio, LLC is applying for an additional domestic water service to support a proposed pistachio processing facility on Phelps Ave adjacent to Turk Station (APN: 073-040-32S) west of El Dorado and East of Calaveras. Due to the length of time Turk Station has been provided water from the City, there is no current out-of-city water service agreement in place which establishes criteria for its use and associated costs. This action by the City Council will clean up the agreement between Turk Station Pistachio, LLC to include the eight (8) long standing existing services as well as authorizing a new connection to support the domestic needs of the proposed pistachio processing facility.
III. DISCUSSION:
There are currently eight (8) residential uses being supplied treated water by the City of Coalinga through a 1.5" water meter approximately 1.9 miles from the service point. Staff has provided an exhibit identifying the meter location and existing services.
The applicant is requesting an additional 1.5" water connection within their existing water service to support the domestic uses of their proposed pistachio processing facility currently under review with the County of Fresno.
The water being requested will be used to support its 22 year-round employees (domestic uses such as restrooms and break rooms). All production water will be obtained from other sources. According to the applicant the estimated water use will be approximately 550 gallons per day which is approximately equivalent to two (2) households.
The City's full allocation of water fluctuates from year to year, however, this additional service connection is not expected to effect the water availability to other City water commitments to the residents, businesses, and related wholesale water transfers in a typical year. Also, providing this service supports surrounding economic activity through the creation of jobs.
IV. ALTERNATIVES:
Do not authorize the agreement.
V. FISCAL IMPACT:
This will have a positive economic impact as we will generate revenue for the Water Enterprise Fund.
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