Supporting Document (d3bea31e...)

CmCMNCH
REPORT
Item 9
i-
Meeting Date;
General Plan Element: 
General Plan Goal:
ACTION
January 27, 2026
Public Services and Facilities
Provide city service facilities to meet the needs of the
community
Adopt Resolution No. 13588 to approve Contract No. 2026-018-COS - Sewer Development 
Agreement with RA2 -Townhomes at Legacy, LLC (the "Deveioper"), to accept a single lump sum 
payment to the city to fund a capacity increase of downstream sewer infrastructure.
BACKGROUND
RA2 - Townhomes at Legacy, LLC (the "Developer") is conducting land development at the 
northwest corner of Legacy Boulevard and N. 76**' Street, which is known as "The Legacy North 
Development". The project encompasses approximately 18.52 net acres and is divided into two 
parcels. The north parcel, known as Legacy North Townhomes, is approximately 5.78 net acres and 
contains multiple townhomes totaling 108 dwelling units. The south parcel, known as Legacy North 
Apartments, is approximately 12.73 net acres and contains various multifamily residential buildings 
totaling 325 dwelling units as well as 10,959 square feet of leasing and amenity space. The approved 
plans for the south parcel (Legacy North Apartments) included a single 82,000-gallon pool, however, 
the north parcel (Legacy North Townhomes) did not include any pool in the approved plans.
Developer has requested to revise approved plans for north parcel (Legacy North Townhomes) and 
include a new 408 square foot pool building and pool within the previously approved landscape 
area. The addition of the pool building and pool will create an additional 100 gallons per minute 
(gpm) of sewer flow (pool backwash) to existing Crossroads Sewer Lift Station.
The City has adopted an Infrastructure Improvements Plan (IIP) which includes project WWIIP-031 
(IIP-031"), Crossroads Sewer Lift Station, to increase the existing capacity from 1 million gallons per 
day (mgd) to 5.4 mgd to accommodate flows from future growth in the area based on the 2022 
Integrated Water Resources Masterplan. Construction is scheduled to begin in 2027.
The Crossroads lift station capacity included in project IIP-031 is not sufficient to handle the 
additional sewer flows contemplated by the Developer's revised plan. To ensure that the Crossroads 
lift station can accommodate the sewer flows from subject Legacy development. Developer desires 
to make a single lump sum payment to the City for the estimated total costs of increasing the 
capacity of the IIP-031 lift station (the "Improvement Costs").
Action Taken _
Blueink Bundle ID; SFBWaeGSKg
Resolution No. 13588 approved on consent

City Council Report | Request for Authority to Enter into Reimbursement Agreement with Private 
Developer
ANALYSIS & ASSESSMENT
Recent Staff Action
City has worked with the Developer regarding the limitations of the existing sewer system, and the 
requirements for development of sewer infrastructure to serve the revised planned Legacy North 
Townhomes development. City will deposit Developer's payment in an account to be used to 
increase the capacity of the IIP-031 lift station.
RESOURCE IMPACTS
Available funding
No funding is required for the execution of this Sewer Development Agreement.
Staffing, Workload Impact
No additional resources are required. Existing staff are available to complete efforts identified in 
this report.
Future Budget Implications
No future expenditure of City funds is required for the execution of this Sewer Development 
Agreement. Funds will be deposited into a sewer/reclamation "security deposits payable" account.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution No. 13588 to approve Contract No. 2026-018-COS - Sewer Development 
Agreement allowing RA2 - Townhomes at Legacy, LLC (the "Developer") to accept a single lump 
sum payment to fund a capacity increase of downstream sewer infrastructure.
RESPONSIBLE DEPARTMENT(S)
Water Resources Division in coordination with City Attorney's Office.
STAFF CONTACT (S)
Rezaur Rahman, Water Resources Principal Engineer 
(480) 312-5636, RRahman(5)Scottsdaleaz.gov
APPROVED BY
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Blueink Bundle ID: SFBWaeGSKg

City Council Report | Request for Authority to Enter into Reimbursement Agreement with Private 
Developer
r^.
David Walby, Water Resource^ssistant Senior Director
(480) 312-7931, DWalbv(5)Scottsdaleaz.gov
Date
Qcit&fV
Greg Caton, City Manager
(480) 312-7759, GCaton@Scottsdaleaz.gov
1/12/26 14:32 MST
Date
ATTACHMENTS
1. Resolution No. 13588
2. Sewer Development Agreement 2026-018-COS
Page 3 of 3
Blueink Bundle ID: SFBWaeGSKg

RESOLUTION NO. 13588
A RESOLUTION OF THE CITY OF SGOTTSDALE, ARIZONA, 
AUTHORIZING THE MAYOR TO EXEGUTE SEWER DEVELOPMENT 
AGREEMENT NO. 2026-018-GOS WITH RA2 - TOWNHOMES AT 
LEGAGY, LLG.
WHEREAS, A.R.S. § 9^500.05 authorizes the City to enter into deveioprnent agreements 
with persons having an interest in real property located in the Gity; and
WHEREASi RA2 - Towhhomes at Legacy, LLG ("Developer”) is developing land at'the 
northwest corner of Legacy Boulevard and N. 76"' Street, which is known as "The Legacy North 
Developrhent" and has requested to revise its approved plans to include a new 408 square foot 
pool building and pool; and
WHEREAS, the addition of the pool building and pool Will create an additional 100 
galloris per minute (gpm) of sewer flow (pool backwash) to Grossroads Sewer Lift Station; and
WHEREAS, the Gity is scheduled to begin construction of the approved WW IIP-031 
(“IIP-d3i"), Grossroads Sewer Lift Station in 2027; and
WHEREAS, the lift station capacity included ih llP-031 is not sufficient to handle the 
additional sewer flows contemplated by the Developer’s revised plan; and
WHEREAS, in order to ensure timely modification of IIP-031 to ensure that the lift Station 
can accommodate the flows from Developer’s revised plah. Developer desires to make a single 
lump suit! payment to the Gity of the estimated total costs of increasing the capacity of the IIP- 
031 lift station; and
WHEREAS, it is in the best interest of the Gity and owner to enter into Sewer 
Development Agreement No. 2026-018-GdS to accept Developer’s payment to allow the Gity to 
increase the capacity of the IIP-031 lift station; and
WHEREAS, the Gity shall deposit Developer’s payment in sewer/reclarha'tidn account to 
be used to help fund increased capacity of the IIP-031 lift station.
NOW, THEREFORE, LET IT BE RESOLVED, by the Gbuncil of the Gity of Scottsdale; 
as follows:
Section 1. That Mayor is authorized and directed to execute Sewer Development 
Agreerherit No. 2026-018-GOS to accept payment by Developer to fund increased capacity of 
the IIP-031 lift station.
Section 2. The Gity Gouncil hereby authorizes the Gity Manager or his designee to 
execute any other documents and take such other actions as are necessary to carry out the 
intent of this resolution.
Section 3. That the Gity Glerk is hereby directed to record Development Agreement 
No. 2026-018-GOS with the Maricopa Gounty Recorder within ten (10) days of its execution by 
all parties.
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18779663
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Attachment 1

PASSED AND ADOPTED by the Council of the City of Scottsdale, Arizona, this 
day of January, 2026.
ATTEST:
CITY OF SCOTTSDALE, an Arizona 
municipal corporation
By:.
Ben Lane, City Clerk
By:.
Lisa Borowsky, Mayor
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
1^______
Luis E Santaella, mterim City Attorney
By: Karen Tyler, Principal Assistant City Attorney
l
18779663
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WHEN RECORDED RETURN TO:
CITY OF SCOTTSDALE 
ONE STOP SHOP RECORDS 
7447 East Indian School Road, Suite 
100 Scottsdale, AZ 85251
City Contract No. 2026-018-COS 
Resolution No.: 13588
SEWER DEVELOPMENT 
AGREEMENT
This Development Agreement (“Agreement”) is entered into as of January___ , 2026 (the “Effective
Date”), by and betvkreen RA2 - Townhomes at Legacy LLC, a Delaware limited liability company, having 
its principal place of business at 3337 Susan Street, Suite 250, Costa Mesa, CA 92626 (which, together vwlh 
its permitted successors and assigns, is hereinafter referred to as “Developer”) and the City of Scottsdale, 
Arizona, a municipal corporation (which, together with any successor, public body, or officer designated by 
or pursuant to law, is hereinafter referred to as the “City”). Developer and the City are each referred to herein 
as a “Party” and collectively as the “Parties.”
RECITALS
A. 
Developer represents and warrants that it is the owner in fee of real property described on 
Exhibit A (the “Property”), attached hereto and incorporated by this reference.
B. 
Arizona Revised Statutes (“A.R.S.”) § 9-500.05 authorizes the City to enter into a 
development agreement with a landowner or any other person having an interest in real property located in 
the City.
C. 
Chapter 49 of the Scottsdale City Code requires new developments to pay their 
proportionate share of the costs incurred by the City for providing necessary public services to new 
developments.
D. 
Developer is conducting land development at the northwest comer of Legacy Boulevard 
and N. 76* Street, which is known as “The Legacy North Development”. The project encompasses 
approximately 18.52 net acres and is divided into two parcels. The north parcel, known as Legacy North 
Townhomes, is approximately 5.78 net acres and contains multiple townhomes totaling 108 dwelling units. 
The south parcel, known as Legacy North Apartments, is approximately 12.73 net acres and contains 
various multifamily residential buildings totaling 325 dwelling units as well as 10,959 square feet of leasing 
and amenity space. The approved plans for the south parcel (Legacy North Apartments) included a single 
82,000-gallon pool, however, the north parcel (Legacy North Townhomes) did not include any pool in the 
approved plans.
E. 
Developer has requested to revise approved plans for north parcel (Legacy North 
Townhomes) and include a new 408 square foot pool building and pool within the previously approved 
landscape area. The addition of the pool building and pool will create an additional 100 gallons per minute 
(gpm) of sewer flow (pool backwash) to Crossroads Sewer Lift Station.
F. 
The City approved WW UP-OS 1 (“IIP-031 ”), Crossroads Sewer Lift Station, to up size the 
capacity fi-om 1 million gallons per day (mgd) to 5.4 mgd and add dual 18-inch diameter force mains to 
accommodate flows ft'om future growth in the area based on the 2022 Masterplan. Constmction is 
scheduled to begin in 2027.
»
G.
18765198
The added lift station capacity included in IIP-031 is not sufficient to handle the additional
Page 1 of 5
Contract No. 2026-018-COS
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Attachment 2
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sewer flows contemplated by the Developer’s revised plan.
H. 
In order to ensure timely modification of IIP-031 to ensure that the lift station can 
accommodate the flows from Developer’s revised plan, Developer desires to make a single lump sum 
payment to the City of the estimated total costs of increasing the capacity of the IIP-031 lift station (the 
“Improvement Costs”).
I. 
The City is willing to accept such a lump sum payment and amend IIP-031 to increase the 
capacity to 5.5 mgd.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals, representations, mutual covenants, 
promises and undertakings in this agreement, the Parties agree as follows:
SECTION 1. PAYMENT REQUIREMENTS
1. 
Recitals. The recitals set forth above are hereby incorporated by this reference.
2. 
Improvement Cost Determination. The Improvement Costs are One Hundred Seven 
Thousand, Four Hundred Thirty-Six Dollars and Zero Cents ($107,436.00). The total payment, which 
includes a 5% administrative fee, is One Hundred Twelve Thousand, Eight Hundred Seven Dollars and 
Eighty Cents ($112,807.80). This amount has been determined by the City’s Water Resources Planning & 
Engineering Director, or designee, based upon estimates more fully itemized in Exhibit B, attached hereto 
and incorporated by this reference, and is accepted by Developer.
3. 
Payment Due Date. Having determined the Improvement Costs, the single lump sum 
payment must be paid to the City within ten (10) days after the recordation of this agreement. Any payments 
due on a Saturday, Sunday, or an Arizona legal holiday shall be due on the next succeeding business day.
4. 
Money Management. The monies received by the City shall be placed in a separate fund 
and accounted for separately and, shall only be used by the City for the purpose of completing IIP-031, 
Crossroads Lift Station, at a future date as determined by the City.
SECTION 2. COMPLIANCE WITH LAW
5. 
Laws. Regulations, and Rules. Developer shall perform all obligations under this 
Agreement in accordance with all federal, state, county, and local laws, ordinances, regulations, or other 
rules or policies as are now in effect or may hereafter be adopted or amended.
6. 
Choice of Law. This Agreement shall be construed in accordance with the laws of the State 
of Arizona. The parties agree that venue for any action commenced in connection with this Agreement shall 
be proper only in a court of competent jurisdiction located in Maricopa County Arizona and that parties 
hereby waive any right to object to such venue.
7. 
Limited Severability. If any court of competent jurisdiction declares any portion or portions 
of this Agreement invalid, the remaining provisions hereof shall remain in full force and effect provided 
that the purpose and intent of the parties in entering into this Agreement is met.
8. 
Action or Suit. This Agreement may be enforced by either party in a court of law or equity 
and the prevailing party may be entitled to recover any costs and expenses including reasonable attorneys' 
fees. Nothing herein shall prevent or prohibit the City from enforcing this Agreement through such other 
non-judicial means as may be permitted by law, including, but not limited to, the withholding of building 
permits.
SECTION 3. GENERAL PROVISIONS
9. 
Time of Essence. Time is of the essence in this Agreement.
18765198
Page 2 of 5
Contract No. 2026-018-COS

10. 
Construction. In this Agreement, whenever the context so requires, the masculine gender 
includes the feminine and neuter, and the singular number includes the plural.
11. 
Runs with the Land. This Agreement shall run with the land and inures to the benefit of, 
and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, personal 
representatives, successors and assigns.
12. 
Amendments. Any amendment to this Agreement shall be in writing.
13. 
No Third-Party Beneficiaries. There are no third-party beneficiaries to this Agreement and 
no person nor entity not a party hereto shall have any right or cause of action hereunder.
14. 
No Partnership. Nothing contained in this Agreement shall create any partnership, joint 
venture, or agency relationship between the parties.
15. 
Modification or Termination. This Agreement and any amendment or cancellation of this 
Agreement must be recorded in its entirety in official records of the Maricopa County Arizona Recorder’s 
Office no later than ten (10) days after ^e City and Developer execute such Agreement amendment or 
cancellation.
16. 
Assignment. The rights and obligations of Developer may be transferred or assigned in 
whole or in part by a written instrument to any subsequent owner or person having an interest in all or any 
portion of toe property pursuant to which the transferee expressly accepts and assumes the rights and 
obligations of Developer.
17. 
Notices. All notices, filings, consents approvals and other communications provided or 
herein or given in connection herewith shall be made in writing and delivered personally or sent by 
registered certified United States Postal Service mail to:
City of Scottsdale
Attention: Water Resources Planning & Engineering Director 
9379 E San Salvador Drive 
Scottsdale, AZ 85258
Copy to:
Scottsdale City Attorney’s Office 
3939N.DrinkwaterBlvd.
Scottsdale, AZ 85251
RA2 -Townhomes at Legacy LLC 
Attention: Timothy J. O’Brien 
3337 Susan Street, Suite 250 
Costa Mesa, CA 92626
Copy to:
Schultz 8l Wright, LLP 
Attention: Anne Keeler Wright 
525 Middlefield Rd., Suite 150 
Menlo Park, CA 94025
18. 
Counterparts. This Agreement may be executed in duplicate originals, each of which is 
deemed to be an original. This Agreement, including toe Exhibits listed in Section 2 which are incorporated 
herein by this reference, constitutes toe entire understanding and Agreement of toe Parties.
18765198
Page 3 of 5
Contract No. 2026-018-COS

19. 
Headings. The description headings of the Sections of this Agreement are inserted for 
convenience only and shall not control or affect the meaning or construction of any of the provisions of this 
Agreement.
20. 
Due Authority. Each Party acknowledges and warrants that (i) it is fully authorized and 
empowered to execute this Agreement by and through the individuals executing below, and (ii) this 
Agreement (and each undertaking of such Party contained herein) constitutes a valid, binding and enforceable 
agreement of such Party, enforceable according to its terms, except to the extent limited by bankruptcy, 
insolvency and other laws of general application affecting creditors’ rights and by equitable principles, 
whether considered at law or in equity.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
RA2 - TOWNHOMES AT LEGACY LLC, 
a Delaware lirnttBid/fiability company
Its:
A Notary Public or other officer completing this certificate verifies only the identity of the individual who 
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity 
of that document.
STATE OF CALIFORNIA
COUNTY OF
)
)
)
before me,^^^) 
\) I 
, a notary public, personally
appeared '*M 
Ol>C _________, who proved to me on the basis of satisfactory evidence
osi
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that 
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) 
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph 
is true and correct.
WITNESS my hand and official seal.
AJu
ature of
S
O'
(Seal)
DINORAH VIDAL ^
COMM. # 2519830 ^
NOTARY PUBLiemiFORNIA 
ORANGE COUNTY
} , 
MAY 21,202j ^
a.
18765198
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Contract No. 2026-018-COS

ATTEST:
Ben Lane, City Clerk
CITY OF SCOTTSDALE, an Arizona 
municipal corporation
Lisa Borpwsky, Mayor
APPROVED AS TO FORM:
,uis E Santaella, mtei
Luis E Santaella, Interim City Attorney
By: Karen Tyler, Principal Assistant City Attorney
18765198
Page 5 of 5
Contract No. 2026-018-COS

Exhibit A
LEGAL DESCRIPTION
All that certain real property in the County of Maricopa, State of Arizona, described as follows:
THAT PORTION OF SECTION 26, TOWNSHIP 4 NORTH, RANGE 4 EAST OF THE GILA AND 
SALT RIVER BASE AND MERIDIAN, MARICOPA COUNTY, ARIZONA, MORE 
PARTICULARLY DESCRIBED AS FOLLOWS:
LOT 1, FINAL PLAT NWC MILLER ROAD & LEGACY BOULEVARD, RECORDED APRIL 23, 
2025, AT INSTRUMENT NO. 20250228810, BOOK 1855, PAGE 42, OFFICIAL RECORDS 
MARICOPA COUNTY.
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Exhibit B
Estimate of Sewer Improvement Costs
The City approved WWIIP-031 (“IIP-OS1”), Crossroads Sewer Lift Station is scheduled to begin in 2027. 
City has not started the design of the Crossroads East Lift Station (LS) expansion and therefore, information 
on “to be designed projected peak pumping capacity” is unavailable. City will use the original 2020 design 
parameters of the Crossroads LS for peak pumping capacity calculations. This peaking factor will be used for 
sewer improvement cost calculation for the pool addition.
• 
Original 2020 Desism Parameter of Crossroads LS:
■ 
Average flow = 1 mgd (= 694 gpm) with peak pumping capacity = 1,922 gpm
■ 
Peaking factor for diurnal flow = 1,922/694 = 2.77
■ 
City will use a peaking factor of 2.77 for improvement cost estimation
• 
Future Expanded Lift Station Design per nP-031:
■ 
Average flow = 5.4 mgd
■ 
Future pumping capacity = 5.4 X 694 X 2.77 = 10,381 gpm
■ 
Expansion of LS from 2020 design = 10,381 - 1,922 = 8,459 gpm
■ 
Additional sewer flow (pool back wash) to LS due to addition of the pool = 100 gpm
■ 
Revised pumping capacity expansion due to addition of the pool = 8,459 + 100 = 8,559 gpm
• 
Improvement Cost Calculation:
Projected IIP-031 cost = $18,176,000 for 8,459 gpm expansion 
Expansion cost per gpm = $18,176,000/8,459 = $2,148.72 /gpm 
Total cost for 100 gpm expansion = $2,148.72 X 100 = $214,872
City of Scottsdale Water Division has granted one time 50% waiver on the fee for the sewer
■
improvements cost incurred by the pool addition*.
• 
* Cost for expansion with 50% waiver = $214.872 X50% = $107.436
■ 
City of Scottsdale Water Division will add 5% administrative fee for this sewer improvement
cost*.
• 
* Administrative fee f5%) = $107.436X5% = S5.371.80
■ 
Total Payment for Pool Addition = $107,436 + $ 5,371.80 = $112.807.80
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