Title
Amend Ordinance S-42269 for License with Salt River Project for Use of "Dutch Ditch" in Phoenix Sky Harbor Center (Ordinance S-43890)
Description
Request to amend Ordinance S-42269, which authorized the City Manager, or his designee, as licensee, to enter into a new revocable license with Salt River Project (SRP), as licensor, for use of "Dutch Ditch" in the Phoenix Sky Harbor Center. The amendment will authorize the City Manager, or his designee, to include provisions by which the City will indemnify SRP and the United States of America for the City's use of Dutch Ditch. The amendment may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City Council adopted Ordinance S-42269 on Jan. 20, 2016. The Ordinance authorized the City Manager, or his designee, to enter into a new 25-year revocable license with SRP for the City's use of Dutch Ditch, which is located in Phoenix Sky Harbor Center. While finalizing the license, SRP requested that the City grant it and the USA an exemption from Phoenix City Code Sections 42-18(A) and (B), concerning indemnification and assumption of liability by the City. In accordance with Phoenix City Code Section 42-20(B), which requires City Council approval, the City will agree to indemnify, release, and hold harmless SRP and the USA for (1) acts and omissions of the City and its agents, officers, directors, or employees, (2) the City's use or occupancy of Dutch Ditch for purposes contemplated by the license, including claims by third parties who are invited or permitted onto the licensed property, expressed or implied, by the City or by the nature of the City's improvement or other use of the licensed property, and (3) the City's failure to comply with or fulfill its obligations provided by the license or the law. All other terms and conditions of the license authorized by Ordinance S-42269 will remain the same.
Contract Term
The term is 25 years starting on Jan. 1, 2017.
Financial Impact
The City will pay SRP $3,400 annually, subject to annual consumer price index adjustments over the term of the license.
Location
Dutch Ditch lies under a portion of Honeywell's leasehold in Phoenix Sky Harbor Center at 1944 E. Sky Harbor Circle N., Honeywell's east parking lot is located on top of the licensed property.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.