Title
Request to Enter into a Development Agreement with M Brothers 67th Avenue, LLC, and to Repeal Ordinance S-50722 (Ordinance S-51314)
Description
Request authorization for the City Manager, or his designee, to enter into a Development Agreement with M Brothers 67th Avenue, LLC, referred to herein as the “Developer”, to allow the Developer to receive the City’s wastewater services by discharging wastewater into City of Glendale’s collection system. Further Request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Further request to repeal Ordinance S-50722.
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 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 they could instead, gravity flow its sewer flows into 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. Thus, Ordinance S-50722, authorizing execution of the original Development Agreement, will be repealed.
According to the revised Development Agreement (DA), 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. In addition to monthly wastewater service fees, the City may invoice and collect from Developer or any successor-in-interest any amounts that Phoenix has paid to Glendale for the Sewer Transportation and Treatment Service for wastewater flows from the Development that exceed the amounts collected by Phoenix for wastewater service on the Development during the preceding twelve months. The Development must also make a one-time development impact fee payment to Glendale through the City.
Contract Term
The contract term will be no more than 50 years starting from the effective date of the DA.
Financial Impact
There is no negative financial impact to the City. This DA allows the City 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.