Title
Request to Enter into Development Agreement with Multiple Developers to Construct Relief Sewer Main (Ordinance S-46623)
Description
Request authorization for the City Manager, or his designee, to enter into a Development Agreement (DA) with Creation RE, LLC, LOFTIN Equipment Company, an Arizona Corporation, TUDO Capital, LLC, a Delaware Limited Liability Company, and Villa Fifty 2, LP, a Delaware Limited Partnership (or their related entities, collectively, referred to herein as the “Developers”), for the design and construction of a relief sewer main. Further request to authorize the City Controller to disburse the necessary funds related to this item. The fee for services will not exceed $210,000.
Report
Summary
The Developers own certain real estate properties located within City limits and are in the process of developing or redeveloping their respective properties. The sewer of all those properties flow to the same downstream 10-inch sewer line located north of Van Buren Street, between 48th Street to 50th Street. The additional flow from the Developers’ developments will exceed the maximum capacity of the existing 10-inch sewer line. The Developers have agreed to work jointly to enter into a Development Agreement (DA) with the City to address this sewer capacity issue.
Through the DA the Developers agree to fund, design and construct a new relief sewer main. There are three options being proposed by the Developers to address this sewer capacity issue. The new relief sewer line is estimated to cost between $100,000 and $330,000, depending on which option the Developers decide to pursue. After the new relief sewer line is completed and accepted by the City, the City will reimburse the Developers its share of the total project cost based on capacity calculation, but not to exceed $210,000. The Developers will dedicate the new relief sewer main to the City after it is accepted by the City. The Developers will provide financial guarantees adequate to ensure the construction of the project.
Contract Term
The contract term will not exceed five years.
Financial Impact
The City will contribute its share of the new relief sewer main cost, calculated by the capacity, towards the design and construction of the new relief sewer main project. The fee for services will not exceed $210,000.
Funding for this project is available in the Water Services Department's 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.