TITLE
The Mayor and Council shall discuss and take action on authorizing the City Manager to execute a “Water Facilities Extension Agreement” with Global Water - Santa Cruz Water Company, Inc., an Arizona corporation, in a form substantially similar to the attached draft, and as approved by the City Attorney. Discussion and Action.
AGENDA ITEM DESCRIPTION
As the City of Maricopa developed, Global Water grew, as well. Today, Maricopa and Global Water each serve tens of thousands of homes and businesses. As development has occurred, it has generally started along John Wayne Parkway and spread outward. The exception to this has been in certain areas around the railroad tracks, and south of the railroad tracks, which were difficult to develop prior to the construction of the overpass.
This area has seen recent interest, and property owners have determined it is time to invest further into their properties. Nonetheless, the city is faced with a dilemma, as Global Water does not currently have capacity to serve this portion of John Wayne Parkway with water or sewer service. To facilitate further development in this portion of the city, the City believes it would be best to work with Global Water (“GWR”) to extend the water transmission main approximately 1.5 miles, to provide service capacity and redundancy. This line will then run along John Wayne Parkway to service future projects along that road, as well as future developments along Bowlin Road. This will then connect to a Global Water well site on the east side of the Santa Rosa Wash.
Sewer service will be provided to the Maricopa Station area by means of an easement from the Santa Rosa Wash through the Santa Rosa Crossing development. A new lift station will be required at Maricopa Station to accommodate this growth.
The construction of these water and sewer line extensions will benefit the City in encouraging development in this infill portion of the city. It will benefit the Maricopa Station and other landowners in the area by enabling development in the area.
These Line Extension Agreements (LXAs) mirror the previous LXA that Council approved to extend service to APEX and other western Maricopa developments. The LXAs also provide that, beginning in the fourth calendar year after the line extension is accepted, GWR will reimburse an amount equal to 7% of the gross annual revenues received by GWR from the provision of water service to each customer who connects to the extended line for each succeeding year for a total of 22 years. The City would similarly receive a reimbursement equal to 2.5% of all sewer revenue from the associated parties for 22 years. In no ways shall the total amount paid to Company (under this agreement and the accompanying Wastewater Facilities Extension Agreement) exceed a combined total of $6,730,215.
It is the opinion of staff that the City should consider participating in this project for the following reasons:
• To enable development of this valuable infill portion of the city at a quicker pace.
• There remain huge tracts of land to be developed within the city limits along this corridor that cannot be developed without having access to water and sewer service.
• No one developer can handle the cost of this extension without the benefit of other projects sharing in the cost. This pipeline will open up approximately 125 acres for future development.
• The City should eventually be repaid its investment in these line extension.
In no way shall the total amount paid to Company (under this agreement and the accompanying Wastewater Facilities Extension Agreement) exceed a combined total of $6,730,215. This project is included in the FY24 budget as CIP Project #23501.
STAFF RECOMMENDATION
Staff recommends the Mayor and Council authorize the City Manager to execute a Water Facilities Extension Agreement with Global Water - Santa Cruz Water Company, Inc., an Arizona corporation, in a form substantially similar to the attached draft, and as approved by the City Attorney.