IGA with City of Phoenix

City of Glendale — Regular Meeting (2024-10-22)

Extracted text (via pymupdf) 19399 characters

1
INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF PHOENIX AND THE
CITY OF GLENDALE FOR SEWER
TRANSPORTATION AND TREATMENT
SERVICE IN THE VICINITY OF 67TH AVENUE
AND PINNACLE PEAK ROAD
This Intergovernmental Agreement ("Agreement") is entered into as of _____________,
2024 ("Effective Date"), by and between the City of Phoenix ("Phoenix"), an Arizona
municipal corporation, and the City of Glendale ("Glendale"), an Arizona municipal
corporation. Phoenix and Glendale are sometimes referred to collectively as "Parties" and
individually as a "Party."
RECITALS
A.
Arizona Revised Statutes ("A.R.S.") § 11-952(A) provides that cities may enter into
intergovernmental agreements for the provision of services or for joint/cooperative actions.
B.
Phoenix will provide retail sewer service, as defined below, to the commercial parcel located
at 67th Avenue and Pinnacle Peak Road in Phoenix as identified in Exhibit A (the "Phoenix
Sewer Service Area").
C.
Glendale has agreed to transport and treat sewer flow, as defined below, from the Phoenix
Sewer Service Area delivered to Glendale at the location identified in Exhibit B (the "Point
of Discharge").
D.
Glendale and Phoenix desire to set forth herein the terms and conditions by which Glendale
will provide sewer transportation and treatment service in its sewer system for the Phoenix
Sewer Service Area and Phoenix will pay for that service.
E.
On October 2, 2024, the Phoenix City Council approved Ordinance S-51313, as required by
ARIZ. REV. STAT. § 11-952(F), which authorizes Phoenix’s City Manager to enter into this
Agreement. On ___________, 2024, Glendale similarly acted to authorize execution of this
Agreement by enacting _________________.
Now, therefore, for good and valuable consideration, the Parties agree as follows:
AGREEMENT
1.
RECITALS/CAPTIONS. The Parties acknowledge that recitals set forth above are true and
correct and are incorporated into this Agreement by reference. The captions in this Agreement
are merely for reference and not to construe or limit the text.
2.
AGREEMENT TERM. The term of this Agreement is 20 years from the Effective Date.
Upon mutual agreement and formal written amendment, the Parties may extend this
Agreement for one additional 10-year term provided the initial term has not yet expired.
3.
DEFINITIONS.
3.1.
"Point of Discharge" means that physical point at which sewer flow from the

Phoenix Sewer Service Area is discharged into Glendale's sewer system by virtue of
a lateral tap from the Phoenix Sewer Service Area. The planned Point of Discharge
is located at a manhole generally located at the northeast corner of 67th Avenue
and Pinnacle Peak Road as identified in Exhibit B.

3.2.
"Sewer Service" means administration, including the administration and
enforcement of all applicable pretreatment provisions of Phoenix's City Code and
pretreatment program, and billing of sewer accounts in the Phoenix Sewer Service
Area by Phoenix.

3.3.
"Sewer Transportation and Treatment Service" means the transportation and
treatment of sewer flow from the Phoenix Sewer Service Area by Glendale in
accordance with federal, state, and local law and regulations and in accordance with
this Agreement.

4.
SEWER SERVICE - PHOENIX.

4.1.
Sewer Service. Phoenix will provide Sewer Service to commercial sewer customers
in the Phoenix Sewer Service Area in accordance with the terms and conditions of
this Agreement.

4.2.
Transport to Point of Discharge. Sewer flow from the Phoenix Sewer Service
Area will discharge into the Glendale sewer system at the Point of Discharge.

4.3.
Code and Pretreatment Program Enforcement. Phoenix will enforce Phoenix's
City Code provisions applicable to sewer service customers in the Phoenix Sewer
Service Area, including, but not limited to, all applicable pretreatment provisions of
Phoenix's City Code and pretreatment program. Glendale will cooperate and
coordinate with Phoenix’s enforcement of applicable wastewater quality standards.

4.3.1. Phoenix will promptly notify Glendale of any violation of the Phoenix City
Code relevant to sewer flow quality, including, but not limited to, all applicable
pretreatment provisions of Phoenix's City Code and pretreatment program.

4.3.2. When Phoenix identifies a Significant Industrial user within the Phoenix
Sewer Service Area, Phoenix will notify Glendale within 30 days.

4.3.3. Phoenix will provide wastewater quality data, inspection reports, and
enforcement records for wastewater flows, if available, to Glendale
annually. Phoenix will cooperate with Glendale in timely providing any
water quality data, reports, and records from the Phoenix Sewer Service
Area needed by Glendale to meet federal or state reporting requirements.

5.
SEWER TRANSPORTATION AND TREATMENT SERVICE - GLENDALE.

5.1.
Transportation and Treatment Service. Glendale will provide Sewer
Transportation and Treatment Service for the sewer flow from the Phoenix Sewer
Service Area delivered to Glendale at the Point of Discharge.

5.2.
Sewer Line Maintenance and Ownership. The 8-inch lateral and tap from the

3
Phoenix Sewer Service Area into Glendale’s sewer system will be private. Phoenix
and Glendale will work cooperatively to ensure that the private tap will be
constructed in accordance with all Glendale codes, specifications, and
requirements and to ensure that all plans and specifications are submitted to
Glendale for its review and approval prior to the beginning of construction.
Glendale has no responsibility under this Agreement for construction,
maintenance, or operation of the private lateral tap from the Phoenix Sewer
Service Area.
5.3.
Sewer Line Maintenance and Ownership. Glendale will be responsible for
maintenance and ownership of all Glendale sewer lines located within public right of
ways or easements within its corporate boundaries and service areas in accordance
with Glendale’s specifications, standards, and normal operating and maintenance
procedures.
6.
FINANCIAL TERMS
6.1.
Utility Development In Lieu Fee. Within 30 days after the date Phoenix issues
a Certificate of Occupancy for a structure in the Phoenix Sewer Service Area,
Phoenix will make a single payment to Glendale of $20,225 in lieu of a Utility
Development Fee that the developers in the Phoenix Sewer Service Area would
have been required to pay to Glendale, if development was located in Glendale’s
service area.
6.2.
Glendale Sewer Service Payment. Beginning the first month following the month
in which Phoenix issues a Certificate of Occupancy for a structure in the Phoenix
Sewer Service Area and during each month thereafter, Glendale will, by the 30th day
of each month, invoice Phoenix $500 for the Sewer Transportation and Treatment
Service provided by Glendale for the Phoenix Sewer Service Area. The invoice will be
delivered to the address specified in Section 13 by first-class U.S. mail. This monthly
amount will be increased annually commencing on the one-year anniversary of the
Effective Date by the increase in the Consumer Price Index for All Urban Consumers
from the preceding twelve months. Phoenix will remit payment to Glendale in the
amount of the invoice within 30 calendar days of the date of print on the invoice. If
Phoenix does not timely pay its monthly bill, Glendale will charge Phoenix interest
as calculated from the prime rate plus 2% per annum, prorated and compounded
daily until Phoenix makes payment to Glendale of the owed principal (plus interest)
in full.
6.3.
Annual True-Up/Reconciliation. Annually, in the month following the
anniversary of the Effective Date, Glendale will provide in writing to Phoenix the
commercial out-of-city sewer rates and monthly charges for a shopping center that
were in effect in accordance with the Glendale City Code for each month of the
preceding twelve-month period. In the same month, Phoenix will provide in writing
to Glendale the metered volume of all potable water delivered by Phoenix to the
Phoenix Sewer Service Area during each month of the preceding twelve-month
period. The parties will work cooperatively to calculate the actual cost of
Glendale’s Transportation and Treatment Service for the preceding twelve-month
period by applying the charges and rates provided by Glendale to 100% of the
non-landscape metered volume of potable water delivered by Phoenix to the

Phoenix Sewer Service Area during the preceding twelve-month period. For any
month in which metered potable water volume data is unavailable or incomplete,
the Parties will agree upon a volume to be assigned for that month based on the
aggregate average metered water volume delivered by Phoenix to the Phoenix
Sewer Service Area or on a comparable month and/or facility.

6.4.
True-Up Payment. The actual cost of Glendale’s Transportation and Treatment
Service for the twelve-month period calculated pursuant to Section 6.3 will be
compared to the total amount paid for the same period by Phoenix to Glendale
pursuant to Section 6.2. If the amount paid by Phoenix is greater than the amount
calculated pursuant to Section 6.3, Phoenix will invoice Glendale for that
difference within 60 days of the anniversary of the Effective Date. If the amount
paid by Phoenix is less than the amount calculated pursuant to Section 6.3,
Glendale will invoice Phoenix for that difference within 60 days of the anniversary
of the Effective Date. The invoiced Party will remit payment to the invoicing Party
in the amount of the invoice within 30 calendar days of the date of print on the
invoice. Invoices will be delivered to the addresses specified in Section 13 by first-
class U.S. mail. If the invoiced Party does not timely pay the invoice, the invoicing
Party will charge the invoiced Party interest as calculated from the prime rate plus
2% per annum, prorated and compounded daily until the invoiced Party makes
payment to the invoicing Party of the owed principal (plus interest) in full.

7.
ATTRIBUTION OF SEWER FLOW. Acceptance by Glendale of sewer flow from the
Phoenix Sewer Service Area pursuant to this Agreement will not result in Phoenix acquiring
any right or claim to any capacity ownership in Glendale's sewer lines nor will that volume of
sewer flow be attributed to Phoenix for any purpose in connection with the rights and
obligations of the Parties under the Multi-City SROG Agreement No. 22699, as amended.
Upon acceptance by Glendale at the Point of Discharge of the Phoenix Sewer Service Area
sewer flow, the entire volume of that sewer flow commingles with and becomes a part of
Glendale's sewer system flow for all purposes and Phoenix has no rights to or ownership
of that flow.

8.
SERVICE SUSPENSION.

8.1.
Delinquency or Breach. Glendale, in its sole discretion, may suspend Sewer
Transportation and Treatment Service if Phoenix fails to pay any delinquent bill
within 60 days of receiving written notice of the delinquency or is otherwise in
breach of this Agreement. Glendale will suspend such service to Phoenix so long
as the delinquent bill (plus interest) remains unpaid, or a breach remains uncured.
Glendale reserves the right to pursue all legal and equitable remedies available by law
to collect on delinquent amounts or to cure or seek damages for any breach.

8.2.
Water Quality Impacts. Glendale in its sole discretion may suspend Sewer
Transportation and Treatment Service if the discharge or quality of the wastewater
adversely impacts the operation, maintenance, and transportation of wastewater
flow from the Phoenix Sewer Service Area to the Glendale sewer service area.
Glendale will provide Phoenix one hundred twenty (120) days’ notice of such
service suspension for discharge or wastewater quality issues.

8.3.
Maintenance, Repair, and Emergency. Glendale may suspend Sewer

5
Transportation and Treatment Service for the purposes of routine maintenance
and repair of its sewer lines. Glendale will provide Phoenix with sixty (60) days’
notice of such service suspension for routine maintenance and repair. Glendale may
also suspend Sewer Transportation and Treatment Service to the Phoenix Sewer
Service Area in the event of an emergency. In an emergency, advance notice of such
service suspension will be provided by Glendale to Phoenix as soon as reasonably
practicable. Glendale, by virtue of this Agreement, will not be liable to Phoenix, any
Phoenix Sewer Service Area sewer customer, or to any other person, firm or
corporation for any claim, demand, loss or damage of any nature or character
whatsoever due to or arising out of, any failure, diminution or interruption of the
Sewer Transportation and Treatment Service provided hereunder due to routine
maintenance, repair, or emergency service suspensions.
9.
AGREEMENT TERMINATION.
9.1.
Termination-At-Will. Either Party may terminate this agreement upon 24 months
written notice to the other. Unless terminated as set forth in this Agreement, this
Agreement shall remain in effect for the period of years set forth in Section 2.
9.2.
Continued Service Suspension. If Glendale has suspended services under this
Agreement for at least 60 consecutive days for Phoenix's nonpayment of a delinquent
bill, or if Phoenix has not cured its breach of any other provision of this Agreement
(i.e., any breach except Phoenix's nonpayment of an amount due) for at least 60
consecutive days after receiving notice of that breach from Glendale, then Glendale
may (in addition to its other remedies under this Agreement, by law, or in equity)
terminate this Agreement upon 60 days' written notice to Phoenix.
10.
FORCE MAJEURE. Neither Party will be responsible or liable (or otherwise deemed in
breach) because of any delay in the performance of its obligations under this Agreement to
the extent caused by circumstances beyond that Party's control (i.e., without its fault or
negligence) and those circumstances could not have been prevented by the exercise of due
diligence, including but not limited to: fires; natural disasters; riots;
wars;
unavoidable/unexpected site conditions.
11.
REMEDIES. If either Party should default in the performance of its respective
obligations under this Agreement, the Party not in default shall be entitled to recover in any
suit or proceeding to enforce its rights under this Agreement, reasonable attorney fees and
costs associated with such action as ordered by the Court. The foregoing shall not in any
way limit or restrict any right or remedy at law or equity which would otherwise be available
to such Party not in default.
12.
PENDING RESOLUTION. Pending the resolution of any dispute, the Parties will make
payments and otherwise perform (to the extent legally permissible) in a manner consistent
with this Agreement. Payments remitted and Sewer Transportation and Treatment Service
provided during the pendency of a dispute are subject to refund and adjustment upon final
resolution of that dispute.
13.
NOTICES. The Parties must prepare all notices, claims, requests, and demands in writing
and serve them on the other party in person or by certified, postage, prepaid United States
Mail (return receipt requested), addressed as follows:

6
If to Phoenix:
If to Glendale:
City of Phoenix
Water Services Department
200 West Washington Street, 9th
Floor Phoenix, Arizona 85003
Attn: Water Services Director
City of Glendale
Water Services Department
7070 W. Northern Avenue
Glendale, Arizona 85301
Attn: Water Services Director
14.
MUTUAL DEFENSE AND INDEMNITY OBLIGATION. Each Party (as
"indemnitor") agrees to defend and indemnify the other Party (as "indemnitee") from and
against any and all claims, losses, liability, costs, or expenses (including reasonable attorney
fees) (hereinafter collectively referred to as "claims") arising out of bodily injury of any
person (including death) or property damage, but only to the extent that such claims which
result in vicarious/derivative liability to the indemnitee, are proximately caused by the act,
omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials,
agents, employees, or volunteers in the performance of its obligations under this
Agreement.
15.
SUCCESSORS/ASSIGNS. For this Agreement's covenants, the Parties bind themselves and
their respective partners, successors, assigns, and legal representatives to the other. The
Parties may not assign, sublet, or transfer their interest in this Agreement without the other's
written consent.
16.
ENTIRE AGREEMENT. The terms and covenants and conditions of this Agreement
constitute the entire agreement between the Parties and no understanding or obligation not
herein expressly set forth shall be binding upon them.
17.
MODIFICATION. No supplement, modification, or amendment of this Agreement's terms
are effective unless in writing and signed by the Parties.
18.
CONFLICT OF INTEREST. Either Party may cancel this Agreement within three years
under ARIZ. REV. STAT. § 38-511 (concerning officer/employee conflict-of interest).
19.
NO THIRD-PARTY BENEFICIARIES. Nothing in this Agreement gives any rights or
benefits to anyone but the Parties. All duties and responsibilities undertaken under this
Agreement are for the exclusive benefit of Parties and no other party. This Agreement does
not create a contractual relationship with any third party or otherwise establish any third-party
beneficiaries. No third party may enforce the terms and conditions of this Agreement.
20.
NON-SEVERABILITY. If any provision or application of this Agreement is invalid,
illegal, or unenforceable, then the Agreement's remainder remains unaffected and enforceable
to the fullest extent permitted by law, provided that the remainder of this Agreement,
absent the excised portion, can be reasonably interpreted to give effect to the intentions
of the Parties.
[Signatures on following pages.]

7
In witness whereof, the Parties have caused this Agreement to be executed by their duly
authorized officers and agents on the day and year written above.
CITY OF PHOENIX, ARIZONA,
a municipal corporation
ATTEST:
JEFFREY BARTON, City Manager
______________________________
By: ______________________________
City Clerk, City of Phoenix

Troy Hayes
Director, Water Services Department
This agreement is in proper legal form
and is within the powers and authorities
granted under the laws of this state to
those parties represented by the
undersigned legal counsel.
JULIE M. KRIEGH, City Attorney
By: ______________________________
Name: ____________________________
Title: _____________________________

8
CITY OF GLENDALE, ARIZONA,
a municipal corporation
By: ______________________________
Kevin R. Phelps
City Manager
ATTEST:
____________________________________
Julie K. Bower, City Clerk (SEAL)
This agreement is in proper legal form
and is within the powers and authorities
granted under the laws of this state to
those parties represented by the
undersigned legal counsel.
Michael D. Bailey, City Attorney
By: _________________________
Michael D. Bailey
City Attorney

Exhibit A
Phoenix Sewer Service Area

(In Substantially Final Form; For Illustrative Purposes Only)

Exhibit B
Point of Discharge