Title
Request to Enter into Development Agreement with APEL Extrusions Limited to Construct New Sewer Line (Ordinance S-46385)
Description
Request authorization for the City Manager, or his designee, to enter into a Development Agreement (DA) with APEL Extrusions Limited (APEL) for design and construction of a new sewer line. Further request to authorize the City Controller to disburse the necessary funds related to this item. The total fee for this agreement will not exceed $4.8 million.
Report
Summary
After a search involving multiple states and regions, APEL expressed its desire to expand its presence in Phoenix. APEL has been a leader in aluminum extrusion and finishing for over 40 years and has a presence in Alberta and Oregon. This proposed expansion into Phoenix will bring significant economic impacts including an approximately $70 million capital investment and 200 advanced manufacturing jobs with an average salary of $47,000 annually.
APEL is currently in planning and design on a site at the southeast corner of 59th Avenue and Lower Buckeye Road. APEL was stipulated to install an 18” public sewer line in 59th Avenue from Lower Buckeye to Broadway roads in order to meet its proposed sewer flow. The new sewer line is estimated to cost between $4.4 million to $4.8 million and is eligible for impact fee reimbursement. Upon completion of the project and the City's acceptance, the City will reimburse APEL for the actual design and construction costs, but not to exceed $4.8 million. To successfully receive reimbursement APEL agrees to select an engineer and contractor in compliance with Arizona Revised Statute Title 34 requirements. This public sewer line is being planned in the next five-year Capital Improvement Program by the Water Services Department, and this agreement will accelerate the construction of the project not only to meet the timeline of APEL, but in providing additional capacity to the surrounding area, which includes the South Mountain Technology Corridor.
Contract Term
The contract term will not exceed a five-year period.
Financial Impact
The City will reimburse the actual sewer line improvement cost, but not to exceed $4.8 million. Funding for this agreement is available in the Water Services Department’s Impact Fee Fund budget in FY 2022-23.
Location
59th Avenue between Lower Buckeye and Broadway roads.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Managers Karen Peters and Mario Paniagua, and the Water Services, Planning and Development, and Community and Economic Development departments.