Title
Intergovernmental Agreement for Diverting, Treating, Storing, Recovering, and Transporting the Town of Cave Creek’s Water and for Supplying Water to the Town Under Emergency Conditions (Ordinance S-45862)
Description
Request to authorize the City Manager, or his designee, to execute an Intergovernmental Agreement (IGA) between the City of Phoenix (Phoenix) and the Town of Cave Creek (Cave Creek) for Phoenix to: divert, treat, and transport Cave Creek’s water through Phoenix’s water infrastructure; store and recover Cave Creek’s water in groundwater aquifers via Phoenix’s groundwater recharge wells; and supply Cave Creek with water under emergency conditions. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Under a separate IGA with Cave Creek, City Contract 149354, Phoenix is constructing capital improvements and accepting funds/infrastructure from Cave Creek to provide all domestic water and fire flow service for Phoenix’s service area within Cave Creek. That IGA required Phoenix and Cave Creek to negotiate this new IGA now before the City Council. After Phoenix’s construction of the necessary improvements and Cave Creek’s completion of the required connections, Phoenix will have the necessary infrastructure to assist Cave Creek with water delivery.
This second IGA with Cave Creek will allow Phoenix to divert, treat, store, recover, and transport Cave Creek’s water and, if/when needed, supply water to Cave Creek under emergency conditions. Cave Creek will pay Phoenix for the cost of service to divert, treat, store, recover, and transport Cave Creek’s water. Under emergency water supply conditions, Cave Creek will pay the standard outside City rates established by Code. Cave Creek will be responsible for all costs associated with construction and operation of an interconnection with Phoenix's existing water distribution system.
Contract Term
The term is for 10 years, with an option to extend the term for another 10 years.
Financial Impact
There is no net financial impact to the City.
Concurrence/Previous Council Action
The City Council approved Water Service Infrastructure IGA Contract 149354 (Ordinance S-45329) on Jan. 23, 2019.
Location
In the area between Carefree Highway to south of Tapekim Road, from 40th to 56th streets.
Council District: Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.