Title
Intergovernmental Agreement for Water Service Infrastructure Between the City of Phoenix and Town of Cave Creek (Ordinance S-45329)
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 water service infrastructure within Phoenix's water service area that is also within Cave Creek's town limits (Phoenix's Cave Creek Service Area). Cave Creek may pay up to $600,000 towards infrastructure costs to Phoenix and will transfer ownership of some of its infrastructure to Phoenix. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
In 1987, Phoenix purchased the water service area between Carefree Highway and Peak View Road, from 40th Street to 56th Street. This area was in an unincorporated area of Maricopa County. Since 1987, Cave Creek has annexed several land parcels within this area between Carefree Highway to just south of Tapekim Road. Cave Creek temporarily provides domestic water service and/or fire flow water service to selected commercial businesses within Phoenix's Cave Creek Service Area until necessary infrastructure improvements can be completed. Cave Creek will pay up to $600,000 towards infrastructure improvements. These costs may be offset by credits provided by Phoenix to Cave Creek equal to in-lieu development fees received by Phoenix from new development within Phoenix's Cave Creek Service Area during the first five years of the IGA. Cave Creek will transfer ownership of some of its existing infrastructure to Phoenix that currently provides temporary water service. Customers receiving temporary water service from Cave Creek will be transferred to Phoenix upon completion of the improvements.
Contract Term
This IGA contract term is for a period of five years, with an option to extend the term an additional two years, which may be exercised by the City Manager or his designee.
Financial Impact
Cave Creek will pay Phoenix an amount up to $600,000.
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.