Title
Happy Valley Road and I-17 Park-and-Ride Facility Lease (Ordinance S-46533)
Description
Request to amend Ordinance S-45689 to authorize the City Manager, or his designee, to execute a new lease for the Happy Valley Road and I-17 Park-and-Ride. Further request to grant an exception pursuant to Phoenix City Code 42-20 to authorize the inclusion of indemnification and assumption-of-liability provisions in the new lease documents that otherwise would be prohibited by Phoenix City Code 42-18, as Arizona State Land Department (ASLD) requires such provisions.
Report
Summary
In 2009, the City entered into a 10-year contract with ASLD to occupy and operate the park-and-ride facility at Happy Valley Road and I-17. In 2019, City Council adopted Ordinance S-45689 to extend the term of that contract for one additional 10-year period. However, ASLD has not approved that extension and instead requires the execution of a new 10-year contract which contains indemnification and assumption-of-liability provisions for the continued use and operation of the park-and-ride. All other terms and conditions of the contract will remain the same.
Contract Term
The contract term is for a 10-year period, beginning in April 2019.
Financial Impact
The amounts authorized under Ordinance S-45689 will remain the same. Base rent is $22,000 per year, plus applicable taxes. In addition, a payment of $1,000 was made to ASLD for the usual and customary processing fees for the lease renewal. The City is responsible for paying for all utilities, repairs, taxes, assessments, insurance, and maintenance to the premises. Funds are available in the Public Transit Department operating budget T2050 Fund.
Concurrence/Previous Council Action
- Ordinance S-36436, adopted July 1, 2009, authorized City Contract 125944.
- Ordinance S-45689, adopted June 5, 2019, authorized extending City Contract 125944 for a 10-year period.
Location
24725 N. 29th Ave.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.