Title
(CONTINUED FROM JAN. 10, 2018) - Request Authorization to Amend Non-Potable Water Service Agreement with Moon Valley Country Club and Pointe Tapatio Lookout Mountain Golf Courses (Ordinance S-44201)
Description
Request to authorize the City Manager, or his designee, to enter into Amendment 1 to Development Agreement 139299 to construct a non-potable water supply pipeline and associated infrastructure for the privately-owned Moon Valley Country Club Golf Course (Moon Valley) and Pointe Tapatio Lookout Mountain Golf Course (Lookout Mountain) and a backup non-potable supply for the City-owned Cave Creek Golf Course (Cave Creek). Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Development Agreement currently allows for a water payment plan where Moon Valley and/or Lookout Mountain may elect to pay a flat amount not less than $50,000 per month for water usage during the design and construction phases, for a period not to exceed two years. The actual water bill may be higher or lower than the flat amount. Any amount deferred will bear interest and will be paid, or partially paid, upon construction completion from credits due to Moon Valley and/or Lookout Mountain for advancing capital costs allocated to Cave Creek for infrastructure. Any remaining deferred payments will be paid over five years in pro rata monthly payments commencing one month after water delivery commences. Payment of the deferral will be guaranteed by a letter of credit or other security acceptable to the City. The deferral is subject to Moon Valley and/or Lookout Mountain making design and construction payments, including the advance of funds on behalf of Cave Creek.
Amendment 1 of the Development Agreement will include extension of the payment plan for an additional timeframe to commence at the time the party funds the construction phase and will end once construction is completed, but for a period not to exceed 18 months. Any party that participates in the deferral plan will need to provide monetary security sufficient to the City. In addition, the City has elected to fund the Cave Creek portion of the construction funds so no credit will be provided to any party on the payment plan. All other terms of the payment plan will remain.
Financial Impact
This action has the impact of deferring required payments with interest to be paid on the deferred amounts.
Location
Moon Valley Country Club Golf Course at 151 W. Moon Valley Drive
Pointe Tapatio Lookout Mountain Golf Course at 11111 N. 7th St.
Cave Creek Golf Course at 15202 N. 19th Ave.
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.