Title
Request to Enter into Development Agreement with Host Hotels & Resorts, L.P. to Construct Water Booster Pump Station (Ordinance S-46148)
Description
Request to authorize the City Manager, or his designee, to enter into a Development Agreement (DA) with Host Hotels & Resorts, L.P. for the design and construction of a new water booster pump station. Further request to authorize the City Controller to disburse the necessary funds related to this item.
Report
Summary
Host Hotels & Resorts, L.P. owns and operates the Phoenician Resort and Golf Course. Nine holes of the golf course are being redeveloped. The City’s existing water booster pump station will not accommodate the increased water quantity needed for the redevelopment. In addition, the Water Services Department plans to rehabilitate the existing water booster pump station within the next 10 years due to its age.
The DA will provide terms for Host Hotels & Resorts, L.P. to fund, design and construct the new booster pump station and upsize associated water lines. The new booster pump station is estimated to cost between $4.4 million to $4.8 million. After the new booster pump station and associated upsized water lines are completed and accepted by the City, the City will reimburse Host Hotels & Resorts, L.P. for half of the actual new booster pump station improvement costs, but not to exceed $2.4 million. The construction of upsized water lines are the sole responsibilities of Host Hotels & Resorts, L.P. and are not eligible for any reimbursement from the City. In addition to dedicating the new booster pump station and associated upsized water lines to the City, Host Hotels & Resorts, L.P. will donate a land easement at the Phoenician Resort to the City for the new booster pump station. Host Hotels & Resorts, L.P. will provide financial guarantees adequate to ensure the construction of the project.
Contract Term
The contract term will not exceed a five-year period.
Financial Impact
The City will contribute half of the actual booster pump station improvement costs, not to exceed $2.4 million, towards the design and construction of the new booster pump station. Funding for this project is available in the Water Services Department Capital Improvement Program budget.
Location
Council District: 6
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.