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ITEM 27
City Council Memorandum Public Works & Utilities Memo No.
UA22-051
Date:
October 14, 2021
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Debra Stapleton, Assistant City Manager
John Knudson, Public Works and Utilities Director
From:
Subject:
Resolution No. 5526, Approving a Sustainable Water Service Agreement Between Stryker Sustainability Solutions, Inc. a Delaware Corporation, and the City of Chandler
Proposed Motion:
Move City Council pass and adopt Resolution No. 5526, approving a Sustainable Water Service Agreement between Stryker Sustainability Solutions, Inc., a Delaware Corporation, and the City of Chandler allocating Tier II Water for a medical device reprocessing facility located at 6635 West Frye Road.
Background:
Stryker Sustainability Solutions, Inc. (Stryker), is a medical technology company that specializes in medical supplies that are typically sold directly to doctors, hospitals, and other healthcare facilities. The company was founded in 1941 and is headquartered in Michigan. Stryker’s products are shipped to over 100 countries across the globe, and the corporation accrued $14 billion in revenue in 2020.
Stryker is in negotiations to lease an industrial building, located at 6635 West Frye Road, which totals 104,742 square feet. This facility will be relocated from Lakeland, Florida, and will bring 288 new jobs to Chandler with a capital investment of $22 million. The activities within the building primarily include remanufacturing and cleaning medical devices that were previously used in surgery. These previously used products will come from throughout the United States, Canada, Israel, and Japan.
In May 2015, City Council adopted Ordinance No. 4634 to assist the City with managing its remaining water supplies. The ordinance allocates potable water resources on a three-tier basis to non-residential users. Tier I water is the base allotment that will meet the majority of new water user needs. If additional water is needed beyond the Tier I water allotment, the City could allocate Tier II or Tier III water. Tier II water allocation is reserved to meet Chandler’s Water Resource Management Strategy, which includes projects that support economic development, redevelopment, or neighborhoods. If a development needs more water than allocated by Tier I and II, Tier III water can be purchased by the end user.
Stryker is requesting to use 12,000 gallons per day of Tier I water allotment and 52,000 gallons per day of Tier II water allotment. The volume of Tier II water requested equates to less than 1% of Chandler projected Tier II water supply. Staff has reviewed the application and is recommending the allocation of 52,000 gallons per day of Tier II water, based on meeting the Economic Development category identified in Chandler’s Water Resource Management Strategy.
Attachments
Resolution No. 5526
Sustainability Water Service Agreement - Stryker
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