Title
Authorize Validation of Phoenix Contract No. 132409-003 and Affirming its Execution (Ordinance S-51808) - District 1
Description
Request to authorize the City Attorney to file a petition in Maricopa County Superior Court to certify the validity of Phoenix Contract No. 132409-003 (Amendment) in accordance with Arizona Revised Statutes (A.R.S) §§ 48-3731 et seq., and affirming and authorizing the City Manager's, or his designee's, execution of all agreements, amendments, and documents and taking all actions necessary to ensure enforceability of the Amendment within the expenditure authority previously authorized by Ordinance S-46899.
Report
Summary
On August 26, 2020, Council authorized execution of an Intergovernmental Agreement (IGA) with the Arizona State Land Department (ASLD) to facilitate the development of then-State Trust Lands in the Biscuit Flat area of Phoenix (Ordinance S-46880). The Biscuit Flat area is in the vicinity of Interstate-17 and the Carefree Highway/State Route 74 and is now being developed primarily by TSMC Arizona Corporation.
Through the IGA, Council authorized executions of amendments of the Phoenix subcontract for the delivery of Central Arizona Project water, Phoenix Contract No. 132409 ("Phoenix CAP Subcontract"). The authorized amendments are to accept assignments of Central Arizona Project (CAP) water from ASLD to Phoenix to facilitate the development of the Biscuit Flat area.
An assignment of 3900 acre feet of CAP water from ASLD to Phoenix has now been executed. The Amendment effectuates that assignment by amending the Phoenix CAP Subcontract and adding 3900 acre-feet of CAP water to Phoenix's CAP Subcontract annual entitlement.
Under the terms of the Amendment, the Amendment must be certified by the superior court in accordance with A.R.S §§ 48-3731 et seq.
Contract Term
The Amendment amends the Phoenix CAP Subcontract, the provisions of which govern the permanent service of CAP water for a period of 100 years. The Amendment does not alter the term of the Phoenix CAP Subcontract.
Financial Impact
Ordinance S-46889 authorized total spending authority not exceeding $27 million, and no additional spending authority is requested.
Location
Twelve thousand acres of former ASLD trust land within the City, located within an area generally bounded by Interstate-17 on the east, the Central Arizona Project Canal on the south, the City of Phoenix boundary on the west, and Carefree Highway/State Route 74 on the north.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.