Exhibit B - Agreement for Temporary Assignment of Declared Firm Lease Capacity

City of Chandler — Regular Meeting (2023-05-11)

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EXHIBIT “B”

When recorded, return to: 
 
City Clerk 
City of Chandler 
P. O. Box 4008, Mail Stop 606 
Chandler, AZ  85244-4008 
 
 
 
 
 
 
 
 
 
 AGREEMENT FOR THE TEMPORARY ASSIGNMENT  
OF DECLARED FIRM LEASE CAPACITY IN THE 
NEW RIVER AND AGUA FRIA RIVER UNDERGROUND STORAGE PROJECT 
This Agreement for the Temporary Assignment of Declared Firm Lease Capacity in the 
New River and Agua Fria River Underground Storage Project (“Lease”) is entered into this _____ 
day of __________, 2023 (“Effective Date”), by and between the City of Chandler, an Arizona 
municipal corporation (“Chandler”), and the City of Avondale, an Arizona municipal corporation 
(“Avondale”).  Chandler and Avondale are referred to collectively in this Lease as “Parties” and 
each may be referred to individually as a “Party.” 
RECITALS 
A. 
Chandler and Avondale are parties to and Participants in that certain New River 
and Agua Fria River Underground Storage Project Intergovernmental Agreement dated August 4, 
2004, as amended July 23, 2008 (“NAUSP Agreement”), together with the City of Glendale, the 
City of Peoria, the Salt River Valley Water Users’ Association, and the Salt River Project 
Agricultural Improvement and Power District.   
B. 
Any capitalized term used in this Agreement and not otherwise defined shall have 
the meaning given in the NAUSP Agreement.  
C. 
To the extent any provision of this Agreement conflicts with the provisions of the 
NAUSP Agreement, the NAUSP Agreement shall control. 
D. 
The NAUSP Agreement sets forth the terms for the construction, maintenance, 
operation, and leasing of rights in the New River and Agua Fria River Underground Storage Project 
(“NAUSP”) located generally at the northeast corner of Ball Park Boulevard and the alignment for 
Bethany Home Road in Glendale, Arizona. 
E. 
Effective __________, 2023, Chandler and Avondale entered into an 
Intergovernmental Agreement for the Conveyance of Rights in the NAUSP (“Conveyance IGA”)

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under which Chandler conveyed to Avondale Chandler’s Storage Entitlement equal to 18.0% of 
the Storage Capacity of the NAUSP. 
F. 
Chandler retains a Storage Entitlement of 4.8% of the Storage Capacity of the 
NAUSP. 
G. 
The Conveyance IGA requires Avondale to lease back to Chandler a Storage 
Entitlement equal to 8.0% of the Storage Capacity of the NAUSP. 
NOW, THEREFORE, in consideration of the mutual promises and representations set forth 
in this Lease and in the Conveyance IGA, including without limitation the Recitals, Chandler and 
Avondale agree as follows. 
AGREEMENT 
1. 
Incorporation of Recitals.  The Recitals set forth above are incorporated as binding 
terms of this Agreement. 
2. 
Term.  The term of this Lease shall commence on July 1, 2023, and end on 
December 31, 2026. 
3. 
Retention of Rights.  Chandler shall retain all rights and privileges associated with 
water stored in the NAUSP by Chandler as of the termination of this Lease. 
4. 
Temporary Assignment of Declared Firm Lease Capacity.  Avondale agrees to 
assign to Chandler a Storage Entitlement equal to 8.0% of the Storage Capacity of the NAUSP 
through calendar year 2026, under the terms and conditions provided in Sections 4.8, 7.4, and 15.3 
of the NAUSP Agreement for the temporary assignment of Declared Firm Lease Capacity by one 
Participant to another.  During the term of this Lease, Chandler’s total Storage Entitlement shall 
be 12.8%. 
5. 
Option to Extend.  Chandler shall have the option to extend the Term of this Lease 
for an additional 12 months until December 31, 2027, by providing written notice to Avondale no 
later than October 2, 2026, of its intent to exercise the option. 
6. 
Price. Chandler shall pay Avondale a percentage of its annual Operating Costs as 
determined under Section 12 of the NAUSP Agreement that is proportional to the share of 
Avondale’s Firm Lease Capacity assigned to Chandler annually under this Lease.  Such price shall 
be prorated monthly for any period of less than 12 months. 
7. 
Notices.  Unless otherwise specifically provided in this Agreement, or unless 
written notice of a change of address has been previously given under this Section, all notices, 
demands or other communication given hereunder shall be in writing and shall be deemed to have 
been duly delivered upon (A) personal delivery, (B) delivery by a recognized overnight courier 
(e.g., Federal Express, United Parcel Service) for next business day delivery, or (C) as of the fifth 
business day after mailing by United States certified mail, postage prepaid, addressed as follows: 
 
 
 
To Chandler:  
Public Works & Utilities Director

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City of Chandler 
 
 
 
 
 
 
P. O. Box 4008 
 
 
 
 
 
 
Mail Stop 905 
 
 
 
 
 
 
Chandler, AZ  85244-4008 
 
 
 
With a copy to:  
Chandler City Attorney 
 
 
 
 
 
P.O. Box 4008 
 
 
 
 
 
Mail Stop 602 
 
 
 
 
 
Chandler, AZ  85244-4008 
 
 
 
 
To Avondale:  
City of Avondale, Arizona 
 
 
 
 
 
 
11465 West Civic Center Drive 
 
 
 
 
 
 
Avondale, Arizona 85323 
 
 
 
 
 
 
Attention: City Manager 
8. 
Additional Matters. 
8.1 
This Agreement shall be governed by and construed under the laws of the 
State of Arizona.  This Agreement is subject to the provisions of A.R.S. § 38-511. This Agreement 
shall be deemed made and entered into in Maricopa County, Arizona. 
 
8.2 
Chandler and Avondale each believe that the execution, delivery, and 
performance of this Agreement comply with all applicable laws.  However, in the unlikely event 
that any provision of this Agreement is declared void or unenforceable (or is construed as requiring 
the Parties to do any act in violation of any applicable constitutional provision, law, regulation,  
code, or  charter), such provision shall be deemed severed from this Agreement and this Agreement 
shall otherwise remain in full force and effect; provided that this Agreement shall retroactively be 
deemed reformed to the extent reasonably possible in such a manner so that the reformed 
Agreement (and any related agreements effective as of the same date) provide essentially the same 
rights and benefits (economic and otherwise) to the Parties as if such severance and reformation 
were not required.  The Parties further agree, in such circumstances, to perform all such acts as 
reasonably requested by the other Party from time to time and to execute all amendments, 
instruments, and consents necessary to accomplish and to give effect to the purposes of this 
Agreement, as reformed. 
 
8.3 
The failure of any Party to exercise any right, power, or remedy given to it 
under this Agreement, or to insist upon strict compliance with it, shall not constitute a waiver of 
the terms and conditions of this Agreement with respect to any other or subsequent breach, nor a 
waiver by either Party of its rights at any time to require exact and strict compliance with all of the 
terms of this Agreement. 
 
8.4 
This Agreement constitutes the entire Agreement between Chandler and 
Avondale with respect to its subject matter, and all agreements, oral or written, entered into prior 
to this Agreement are revoked and superseded by this Agreement.  This Agreement may not be 
changed, modified, or amended, except in writing, signed by all Parties, and any attempt at oral 
modification of this Agreement shall be void and of no effect.  This Agreement may be executed

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in any number of counterparts, each of which shall be deemed an original, and all of which, when 
taken together, shall constitute one and the same instrument. 
 
8.5 
In the event of any dispute between the Parties in connection with this 
Agreement, the Party prevailing in such action or proceeding (excluding mediation) shall be 
entitled to recover from the other Party all of its costs and fees, including reasonable attorneys' 
fees; provided, however, that no such awarded amount shall be payable until (A) the court in 
question has made a finding that one or the other Party is the “prevailing party” in such proceeding, 
and (B) a final order of judgment is entered by a court of competent jurisdiction for which any 
time for appeal has expired without appeal, or where applicable, the mandate of an appellate court 
of competent jurisdiction shall issue. 
 
8.6 
Any action brought to interpret, enforce, or construe any provision of this 
Agreement shall be commenced and maintained in the Superior Court of the State of Arizona in 
and for the County of Maricopa (or as may be appropriate, in the Justice Courts of Maricopa 
County, Arizona, or in the United States District Court for the District of Arizona, if, but only if, 
the Superior Court lacks or declines jurisdiction over such action).  The Parties irrevocably consent 
to jurisdiction and venue in such courts for such purposes and agree not to seek transfer or removal 
of any action except in accordance with the terms of this Section. 
 
8.7 
It is not intended by this Agreement to, and nothing contained in this 
Agreement shall, create any partnership, joint venture or other arrangement between Chandler and 
Avondale.  No term or provision of this Agreement is intended to, or shall, be for the benefit of 
any person, firm, organization, or corporation not a Party hereto, and no such other person, firm, 
organization, or corporation shall have any right or cause of action hereunder. 
 
8.8 
Attached to this Agreement and incorporated by reference is the written 
determination of each Party’s legal counsel that each Party is authorized under the laws of the State 
of Arizona to enter into this Agreement and that the Agreement is in proper form. 
 
8.9 
Each Party agrees to execute and carry out all such further documents, 
instruments, or acts as reasonably may be necessary to give full effect to this Agreement. 
 
[Signatures on following page.]

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IN WITNESS WHEREOF, the Parties have executed this Lease on this ____ day of 
_____________, 2023. 
CITY OF CHANDLER, an Arizona 
municipal corporation 
By ______________________________ 
    Mayor Kevin Hartke 
CITY OF AVONDALE, an Arizona 
municipal corporation 
By ______________________________ 
      Mayor Kenneth Weise 
ATTEST: 
By ______________________________ 
       City Clerk 
ATTEST: 
By _______________________________ 
 City Clerk 
APPROVED AS TO FORM: 
By ______________________________ 
      City Attorney  
APPROVED AS TO FORM: 
By _______________________________ 
       City Attorney