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ITEM 23

City Council Memorandum Public Works & Utilities Memo No. UA24-068

Date:

May 6, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director
Dan Haskins, Capital Projects Division Manager

From:

Josef Kennis, Wastewater Facilities Manager

Subject:

Resolution No. 5795 Approving Amendment No. 1 to the Amended Project Agreement Under the Public Infrastructure Master Agreement Between the City of Chandler and Intel Corporation

Proposed Motion:

Move City Council pass and adopt Resolution No. 5795 approving Amendment No. 1 to the Amended Project Agreement under the Public Infrastructure Master Agreement dated May 24, 2019, between the City of Chandler and Intel Corporation for improvements to the Ocotillo Brine Reduction Facility and related public infrastructure needed to serve Intel's campus at 4500 S. Dobson Road.

Background:

Intel Corporation currently operates two manufacturing sites within Chandler and employs over 11,000 people. The Ocotillo Brine Reduction Facility (OBRF), located at 3737 S. Old Price Road, is owned and operated by the city and supports Intel by treating and delivering reclaimed wastewater back to Intel for reuse in its facility. On May 23, 2019, City Council approved a Public Infrastructure Master Agreement between the City and Intel under A.R.S. § 42-5032.02, for funding and construction of public improvements necessary to support Intel’s capital investment. he Master Agreement contemplates that Intel and the city will enter into specific project agreements for funding and construction of public improvements.

Effective December 8, 2022, the city and Intel entered into an Amended Project Agreement to raise the allotted amount for the cost of design and construction for the Project 3 – OBRF Improvements to $5.75 million and authorize changes to the scope of the work. Since that time, the scope of work has again changed, and the city and Intel now wish to make further changes to the Amended Project Agreement and provide for an efficient method of addressing any future changes to the scope of work while maintaining the allotted amount for the cost of the project. The scope of this amendment will allow the city to provide quality water for Intel operations through adding capacity for new pumps, tanks, and software updates.

Financial Implications:

All improvements under this amendment will be paid through Arizona Revised Statutes Title 42 funding or by Intel Corporation. There is no city financial commitment.

Attachments

Resolution No. 5795

Intel Project 3 - Amendment No. 1