Title
Request to Enter Into the Maintenance Agreement with Richmond American Homes of Arizona, Inc. and Seasons at Vista Del Sur Development (Ordinance S-51024)
Description
Request authorization for the City Manager, or his designee, to enter into the Maintenance Agreement with Richmond American Homes of Arizona, Inc. a Delaware Corporation, the developer, and owner of Seasons at Vista Del Sur Development to reimburse the City for maintenance of force main facilities.
Report
Summary
Developer or successor-in-interest (collectively, "Developer") is constructing a 153-lot subdivision located on the northeast corner of 99th and Southern avenues in Phoenix, Arizona.
The property requires force main facilities to provide wastewater service to the development. The force main facilities consist of two three-inch sewer force mains for connection to city sewer infrastructure in and along Mobile Lane, through 99th Avenue, in a Maricopa County Right of Way. Because the county will not allow privately owned force main sewers in its right of way, the Developer will dedicate the force main facilities to the city.
The City is willing to accept the force main facilities subject to the Developer agreeing to pay for the maintenance and replacement costs.
Contract Term
The Agreement extends in perpetuity provided Developer makes all payments in accordance with the agreement or until cancelled by written agreement of the parties.
The revenue will go into the operational funds cost center for Lift Stations.
Financial Impact
The Developer shall pay an annual payment maintenance payment of $3,000 on or before May 30, of each year and continuing for the term of the Agreement.
In addition, Developer shall reimburse the city for the replacement costs if the city determines all or part of the force main facilities require replacement.
The Developer shall reimburse the city for maintenance and replacement costs within 30 days after the receipt of the City's invoice or interest will accrue at the rate prescribed by Arizona Revised Statutes 44-1201.
Location
In and along Mobile Lane through 99th Avenue
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.