Title
Request to Enter into an Inter-Governmental Agreement with City of Glendale to Provide Wastewater Services (Ordinance S-51313)
Description
Request authorization for the City Manager, or his designee, to enter into an Inter-governmental Agreement with City of Glendale to allow City of Glendale to transport and treat wastewater flow from a Phoenix sewer service area. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
A developer is planning to develop a property at the northeast corner of 67th Avenue and Pinnacle Peak Road in Phoenix, Arizona (referred to herein as the “Development”). Due to the site's topographic constraint, the Development could not gravity flow sewer into the City’s collection system. The Development does not generate enough wastewater flow to warrant a public lift station and force mains.
The Development was initially allowed to design and construct a private lift station with public force mains to convey wastewater to the City’s sewer main north of the Development along 67th Avenue, through a Development Agreement with the City, that the Development will cover all the maintenance cost of the public force mains in perpetuity. This Development Agreement was approved by the City Council under Ordinance S-50722.
Since then the Developer asked the City if the Developer could instead gravity flow its sewer flows into the City of Glendale’s (Glendale) collection system which is located along 67th Avenue south of the Development. After discussion with Glendale, the City decided to approve the Developer’s request and enter into an Inter-Governmental Agreement (IGA) with Glendale.
According to the IGA, the Development will construct a private sewer tap and a public sewer main that belongs to Glendale that will convey the wastewater from the Development into an existing Glendale sewer main. The City will provide retail sewer services to the Development and collect associated water and sewer service fees. Glendale will provide “Sewer Transportation and Treatment Service” to the City, transporting and treating the sewer flow from the Development. The City will pay a monthly fee to Glendale for the sewer service for the Development. Glendale and Phoenix will conduct an annual true-up of the sewer service fees, applying Glendale’s commercial out-of-city sewer rate to all potable water Phoenix serves to the Development. The City will pay an in lieu fee to Glendale to cover the development impact fee that Glendale would normally apply to customers within its service area, for which the City will be reimbursed by the Developer.
Contract Term
The contract term will be for 20 years starting from the effective date of the IGA.
Financial Impact
There is no negative financial impact to the City. The City will enter into a separate Development Agreement (DA) with the Developer to allow the City be able to collect additional fees from the Development to reimburse Glendale for any additional sewer service cost. The City will pay a one-time fee to Glendale in lieu of the development impact fee Glendale would collect from this Development, if it was located in Glendale. The DA also allows the City being reimbursed for this in lieu fee by the Developer.
Location
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.