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The Mayor and Council shall hear and discuss authorizing the City Manager to execute a “238 Water Line Main Extension Agreement” with Private Motorsports Group, LLC, an Arizona limited liability company, with the significant deal points outlined in this Staff Report, and as approved by the City Attorney. Discussion and Action.
AGENDA ITEM DESCRIPTION
As you are aware, Global Water’s main line does not currently extend that far west of John Wayne Parkway on SR 238 / Smith Enke Road. To facilitate further development in the western portion of the City, the City believes it would be best to work with Global Water (“GWR”) and Private Motorsports Group, LLC (“APEX”) to extend the water line main approximately 4 miles west of its current location. The construction of this water line extension will benefit the City in trying to encourage development in the western portion of the City. And it will benefit APEX and other landowners in the area by enabling development in the area.
GWR agreed, at their sole cost, to extend their existing 16-inch water main from their closest current point of connection west along SR 238 approximately 4,000 feet. GWR also agreed, at their sole cost, to extend the 12-inch water main along the West Edison Road alignment approximately 1,400 feet north to the intersection of Smith Enke and Edison Road. This will create a looped system that provides better system utility operation for the Estrella Gin Business Park.
APEX will enter into a Line Extension Agreement (Agreement) with Global Water to extend a 16-inch line (upsized from the required 12-inch line) an additional 17,700 feet to its property. This Agreement will require APEX to design and build the line and dedicate the improvements to Global Water upon acceptance. The Agreement will 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 ...
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