Title
Request to Amend an Intergovernmental Agreement with City of Glendale to Provide Treated Water (Ordinance S-51628) - District 5
Description
Request authorization for the City Manager, or his designee, to amend an existing Intergovernmental Agreement with the City of Glendale (referred to herein as the "Glendale"), to allow Glendale to continue providing treated water to the Camelback Ranch service area within the City, through an established inter-connect location. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
City of Phoenix (Phoenix) entered into an Intergovernmental Agreement (IGA) (Agreement Number 123273) with Glendale on March 31, 2008 to establish a water-delivery location allowing Glendale to provide treated water to Phoenix, to serve the spring training sports complex facility near Phoenix’s Camelback Ranch area.
The IGA initial contract term was 10 years with an additional five-years of renewal option that automatically renewed and expired on March 30, 2023. The IGA also had a clause stating that “the agreement will remain in effect so long as treated water is necessary for customers located within the (Sports Facility Development) area, unless Phoenix or Glendale, or both, decide to terminate the agreement."
This request is to reinstate and extend the original contract term for an additional 20 years through an IGA amendment, starting from the effective date of the amendment. All other original agreement terms remain the same.
Under this IGA, Glendale will provide treated water through an established “Point of Delivery” to Phoenix, utilizing Phoenix’s Salt River Project's (SRP) water allocation. Phoenix will provide retail water services to the customers in the Camelback Ranch service area and collect the City’s standard retail water services fees. Phoenix will pay Glendale for the delivered treated water at Glendale’s commercial retail customer rate, based on the metered amount at the Point of Delivery minus two percent as a credit for Phoenix supplying SRP's water. If Glendale establishes a wholesale water delivery rate, the treated water delivered to Phoenix may be charged at Glendale’s wholesale rate as long as the wholesale rate is less than Glendale’s commercial retail customer rate.
Contract Term
The contract term will be for 20 years starting from the effective date of the IGA amendment.
Financial Impact
There is no additional financial impact to the City. The City is currently paying Glendale for the treated water in the Camelback Ranch area and recovers the cost through collecting retail water services fees from the customers in this area.
Location
Camelback Ranch service area
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.