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RESOLUTION NO. 5440 AUTHORIZING A DEACTIVATION AGREEMENT BETWEEN THE CITY OF CHANDLER AND SALT RIVER VALLEY WATER USERS’ ASSOCIATION, AN ARIZONA CORPORATION, FOR THE REMOVAL OF AN IRRIGATION DELIVERY STRUCTURE TO ACCOMMODATE ROADWAY AND TRAFFIC IMPROVEMENTS AT THE INTERSECTION OF NORTH 56TH STREET AND WEST GALVESTON STREET. WHEREAS, Valley Christian Schools is developing a K-12 private school campus in the area of North 56th Street and West Galveston Street in the City of Chandler, Arizona; and WHEREAS, City requires Valley Christian Schools to install roadway and traffic improvements at the intersection of North 56th Street and West Galveston Street in connection with Valley Christian Schools’ planned development; and WHEREAS, to complete the required roadway and traffic improvements, Valley Christian Schools must remove an irrigation delivery structure owned by Salt River Valley Water Users’ Association (“SRP”) located at the intersection of North 56th Street and West Galveston Street (the “Facility”); and WHEREAS, SRP is willing to abandon its use of the Facility and permit Valley Christian Schools to remove the Facility if City enters into a deactivation agreement with SRP under which City agrees to be responsible for design and construction of a replacement facility should it become necessary to serve an SRP shareholder entitled to receive delivery of irrigation water through the Facility; and WHEREAS, City is willing to enter into a deactivation agreement with SRP under the terms and conditions set forth in a Development Agreement between City and Valley Christian Schools approved by a separate resolution of the Chandler City Council adopted concurrently with this Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chandler, Arizona, as follows: Section 1. The City of Chandler is authorized to enter into a Deactivation Agreement with SRP in substantially the form attached hereto as Exhibit “A”. Section 2. The Mayor is authorized to execute the Deactivation Agreement and _ this Resolution on behalf of the City of Chandler. Resolution No. 5440 Page 2 PASSED AND ADOPTED by the City Council of Chandler, Arizona, this 25th day of February, 2021. ATTEST: CITY CLERK MAYOR CERTIFICATION I HEREBY CERTIFY that the above and foregoing Resolution No. 5440 was duly passed and adopted by the Chandler City Council at a regular meeting held on the 25th day of February, 2021, at which a quorum was present. CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY ) Exhibit “A” Deactivation Agreement DEACTIVATION AGREEMENT THIS DEACTIVATION AGREEMENT (“Agreement”) is made and entered into by and between the CITY OF CHANDLER, an Arizona municipal corporation (“City”) and the SALT RIVER VALLEY WATER USERS’ ASSOCIATION, an Arizona corporation (“SRP”) effective on the last date on which the Parties complete execution of this Agreement. City and SRP each may be referred to separately in this Agreement as a “Party” or collectively as the “Parties”. WHEREAS, Valley Christian School proposes to improve the intersection of North 56th Street and West Galveston Street in the City of Chandler (the “Project”); and WHEREAS, as part of the Project it is necessary to remove SRP irrigation delivery structure 7-2.7-40 (the “Facility”) located within the intersection of North 56th Street and West Galveston Street in Section 28, Township 1 South, Range 4 East and; WHEREAS, Valley Christian School will remove the Facility at its sole expense as a condition of CITY entering into this Agreement; and WHEREAS, the Facility is not presently in service. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the Parties agree as follows: 1. SRP shall abandon its use of the Facility. 2. CITY shall cause the removal of the Facility at Valley Christian School’s sole expense. 3. If at any time, any shareholder entitled to irrigation delivery to the Facility demonstrates adequate capability to deliver irrigation water to the Facility at the shareholder’s property, as reasonably determined by SRP, CITY shall, upon written request by SRP, provide an easement for and pay all costs associated with the design and construction of a replacement facility. 4. SRP shall design and construct the replacement facility, shall own and control the replacement facility, shall operate and maintain the facility at SRP’s expense, and shall at all times hold CITY harmless for any loss or damage arising out of the design, construction, maintenance, or use of the replacement facility. 5. SRP agrees to comply with, and to require its employees and contractors to comply with, City Code requirements for work in City-owned right-of-way. SRP agrees to submit to City for review and comment SRP plans for design and construction related to replacement of the Facility, though SRP shall not require City approval or permit associated with facility construction. 6. All notices, demands or requests upon any Party to this Agreement shall be in writing delivered or sent by mail to the following: To City: With a copy to: To SRP: Development Services Director City of Chandler 215 E. Buffalo Street Chandler, Arizona 85225 Chandler City Attorney 175 S. Arizona Avenue, Second Floor Chandler, Arizona 85225 Salt River Project Water Engineering Mail Station: SSW303 P.O. Box 52025 Phoenix, Arizona 85072-2025 [Signatures on following page.] IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in its name and on its behalf by its Mayor and its seal to be duly affixed and attested by its City Clerk, and SRP has signed the same on the day and year as stated below. ATTEST: City Clerk APPROVED AS TO FORM: (hw ) Assistant City Attorney CITY OF CHANDLER, an Arizona municipal corporation By Mayor Kevin Hartke Date SALT RIVER VALLEY WATER USERS’ ASSOCIATION, an Arizona corporation By Kyle Tilghman Kyle J. Tilghman Director Water Engineering & Transmission Date February 6, 2021