Title
Authorization to Enter Into Lease Agreement with Honeywell International, Inc. for Groundwater Monitoring Well Site Within Cave Creek Park - Sandlilly (Ordinance S-45049)
Description
Request to authorize the City Manager, or his designee, to enter into a lease agreement with Honeywell International, Inc., a Delaware Corporation (Honeywell), for a groundwater monitoring well site within Cave Creek Park - Sandlilly, for a 20-year term with two 10-year options to extend. Honeywell will pay a consideration fee of $2,080 per year, plus applicable taxes. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
The lease agreement is for access, construction, installation, maintenance and ongoing monitoring of the groundwater monitoring well (Well). The leased well site is approximately 1,000 square feet. Honeywell will have temporary rights to use approximately 8,000 square feet of additional space during construction of the Well.
Remediation at the site is conducted under the Arizona Voluntary Remediation Program. The site is associated with a manufacturing facility originally owned by General Electric and later purchased by Honeywell. Disposal practices at the site resulted in a narrow plume of contaminated groundwater approximately three-quarters of a mile long. Honeywell no longer owns the facility; however, it continues to remediate and monitor groundwater quality at the site. The impacted groundwater is extracted from the subsurface and sent directly to the City of Phoenix sanitary sewer in accordance with Class A wastewater discharge permits for industrial users.
Contract Term
The term of the lease is 20 years with two 10-year options to extend. The lease may be terminated by Honeywell upon receipt of a 30-day written notice.
Financial Impact
The annual consideration fee of $2,080 is within range of market rates as determined by the Finance Department's Real Estate Division, with $41,600 expected over the 20-year term.
Concurrence/Previous Council Action
This item was approved by the Parks and Recreation Board on Sept. 27, 2018.
Location
2520 W. Cholla Ave., within the west portion of the property identified by Assessor Parcel Number (APN) 149-06-002C.
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Parks and Recreation and Finance departments.