HomeMy WebLinkAboutResolution 98-072 agreement for construction of water facilities on cortaro ranch propertyMARANA RESOLUTION NO. 98-72
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA,
ACCEPTING AND AUTHORIZING THE APPROVAL OF AN AGREEMENT BETWEEN THE
TOWN OF MARANA AND KAUFMAN AND BROAD OF ARIZONA, INC., AN ARIZONA
CORPORATION, FOR CONSTRUCTION OF WATER FACILITIES AND PROVISIONS FOR
WATER UTILITY SERVICE.
WHEREAS, the Town of Marana and Kaufman and Broad of gMzona, Inc., agree to the
construction of water facilities and provisions of water utility service for Cortaro Ranch property
which has recently been pta-chased by Estes Homes; and
WHEREAS, acceptance of the Agreement between the Town of Marana and Kaufinan and
Broad of Arizona, Inc., will benefit the citizens of the Town of Marana and will be in the Town's
best interest.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Marana, Arizona, accepting and authorizing the approval of the Agreement between the Town of
Marana and Kaufman and Broad of Arizona, Inc., an Arizona corporation, attached hereto as Exhibit
"A" and incorporated herein by this reference, for construction of water facilities and provisions for
water utility service.
BE IT FURTHER RESOLVED that the Mayor is authorized to execute said Agreement on
behalf of the Town of Marana.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this
16th day of June, 1998.
Mayor ORA Mb~E H-A1Qq
Marana, Arizona Resolution No. 98-72 Page 1 of 1
SMARA
TOWN OF MARANA
ATTN: TOWN CLERK
13251 N LON ADAMS RD
MARANA AZ 85653
_ DOCKET: 10846
. PAGE: 558
NO. OF PAGES: 21
SEQUENCE: 19981230283
07/27/98
AG 11:47
F. ANN RODRIGUP- RECORDER
RECORDED BY: RL_
DEPUTY RECORDER
2234 ROOC
MAIL
AMOUNT PAID
$
16.00
TOWN OF MARANA
AGREEMENT FOR CONSTRUCTION
OF WATER FACILITIES
AND PROVISION OF WATER UTILITY SERVICE
THIS AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES, entered into as
of the It, day of TUNE , 1998, by and between the TOWN OF MARANA, ARIZONA, an
Arizona municipal corporation, (hereinafter referred to as "Marana" or "Town"), and KAUFMAN
AND BROAD OF ARIZONA, INC., an Arizona Corporation, (hereinafter referred to as the
"Developer"), is for the construction of Water Facilities necessary to provide water utility service
to its Property, which is more specifically described on Exhibit "A" attached hereto and made a part
hereof, (hereinafter the "Property"), on the following terms and conditions:
RECITALS
WHEREAS, the Developer is desirous of securing water to the area more particularly
described in Exhibit "A" attached hereto and made a part hereof, and will construct certain water
facilities and transfer the ownership thereof to Marana for such purposes; and
WHEREAS, Marana is willing to supply water to Developer in accordance with the
Municipal Code of the Town of Maran a, and in accordance with the terms of this Agreement.
COVENANTS
NOW, THEREFORE, in consideration ofthe mutual covenants, conditions, and agreements
set forth below, the parties agree as follows:
1. DEFINITIONS
1.1 Developer: KAUFMAN AND BROAD OF ARIZONA, INC., and its successors and
aSSIgns.
1.2 Property: That certain property or real estate development as shown on Exhibit "A"
attached hereto and made a part hereof.
1.3 Water Facilities: Public water facilities which are to be constructed under this
Agreement which are located within public rights-of-way or dedicated easements,
Page 1 of 16
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J
and which upon completion by Developer and inspection and acceptance by Marana,
are deeded to Marana for operation and maintenance, including water mains, valves,
pipelines, booster pumps, wells, reservoirs and all other water facilities necessary for
service to the Property and appurtenant to the municipal water supply system ofthe
Town of Marana.
1.4 Water System: Water facilities, including water mains, valves, pipelines, booster
pumps, wells, reservoirs and all other water facilities necessary for service to the
Property and appurtenant to the municipal water supply system of the Town of
Marana.
2. CONSTRUCTION OF WATER FACILITIES
2.1 Plans and Specifications. Developer shall design and construct, at Developer's own
expense, the Water Facilities in accordance with approved Plans and Specifications.
The approved Plans and Specifications shall conform to the design standards of, at
the option of Marana, (i) the City of Tucson water department, or (ii) the Town of
Marana water department, capable of serving the water needs of all commercial and
non-commercial development, sized to serve the maximum authorized development
of the Property. A copy of said approved Plans and Specifications for the Water
Facilities is attached as Exhibit "B," and incorporated herein by this reference.
2.2 Plans and Specifications. Approval. The Plans and Specifications for the Water
Facilities shall be reviewed and approved in writing by Marana and the Arizona
Department of Environmental Quality (ADEQ) or the Pima County Department of
Environmental Quality (PCDEQ) prior to issuance of any water facilities
construction permits by Marana. No work shall commence until Marana has issued
a Water Facilities construction permit.
2.3 Contractor. The Water Facilities shall be constructed by a contractor properly
licensed by the State of Arizona and in accordance with Plans and Specifications
prepared by a qualified registered professional engineer. The location in the ground
and manner of installation shall comply with the requirements of all public agencies
having authority to prescribe regulations with respect to the location and manner of
installation.
2.4 Permits and Licenses. Developer shall obtain all necessary permits and licenses, pay
all fees and comply with all laws, ordinances and regulations related to the public
health, safety, welfare and construction of the Water System.
Page 2 of 16
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2.5 Materials. Workmanship. Equipment and Machinery. All materials shall be new and
both workmanship and materials shall be of good quality and meet the specifications
and standards of all of the following: (a) the American Water Works Association,
(b) ADEQ, (c) PCDEQ, (d) all local regulatory agencies and (e) the Plans and
Specifications incorporated herein by reference in Exhibit "B." Developer shall
repair, or remove and replace, at Developer's own expense and at Marana's
convenience, workmanship or materials which prove to be defective at any time
within one year from the date of the final acceptance of Developer's work by
Marana.
2.6 Connecting New Facilities. Upon completion ofthe Water Facilities, the Developer
shall dedicate the Water Facilities and Water System to the Town, without cost, and
the Town shall thereafter operate the Water Facilities as an integral part of its
municipal water utility. The Water Facilities constructed pursuant to this Agreement
shall be connected to Marana's existing water facilities at the point or points directed
by Marana for Service Area requirements.
2.7 Inspection. Testing and Correction of Defects. Developer shall comply with the
inspection and testing requirements of ADEQ, PCDEQ, and Marana for the facilities
to be constructed hereunder, PROVIDED HOWEVER, said requirements shall be
reasonable and shall not cause the Developer unwarranted delays in the ordinary
course of construction. Developer shall promptly notify Marana when the Water
Facilities under construction are ready for inspection and testing, and Marana shall
inspect the same promptly after being so notified. For the purpose of inspection and
testing of everything covered by this Agreement, or the work thereon, Developer
shall give Marana and any inspectors appointed by it, free access to the construction
site and facilitate the proper inspection of materials and work and shall furnish it with
full information whenever requested as to the progress of the work in its various
stages. The approval of work by any such inspector shall not relieve Developer from
its obligation to comply in all respects with the instructions and specifications to
make the work a finished job of its kind, completed in accordance with the best
practices. Developer agrees that no inspection by or on behalf of Marana shall
relieve Developer from its obligation to prosecute and complete the work in
accordance with this Agreement. If at any time before the final completion and
acceptance ofthe work, any part of the work is found to be defective in any way, or
in any way fails to conform to this Agreement, Marana is hereby expressly
authorized to reject or revoke acceptance of such defective or deficient work and
require Developer to repair, replace or make good on such defective work. Marana
specifically reserves the right to withhold approval and to forbid connection of the
Water Facilities constructed pursuant to this Agreement to Marana's water utility
Page 3 of 16
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560
system unless such Water Facilities have been constructed in accordance with the
Plans and Specifications approved by Marana and are satisfactory to Marana upon
inspection and testing. Developer agrees that it will promptly correct all defects and
deficiencies in construction, materials and workmanship upon request by Marana
made subsequent to inspections by Marana.
2.8 Change Orders. In the event that any applicable governmental agency, Marana or the
Developer makes (or is desirous of making) any material changes to the design of the
Water Facilities which are to be constructed in accordance with the Water Plans
referred to in Exhibit "B" to this Agreement, the Developer shall (a) obtain Marana's
prior consent to such material changes or modifications, (b) pay to Marana a
reasonable fee for its time in reviewing such material changes or modifications and
(c) pay the additional cost of construction associated with the same, if any.
2.9 Invoices. Developer agrees to furnish Marana, within thirty (30) days after
completion of construction, copies of all Developer, subcontractor and vendor
invoices for all engineering and other services, materials installed, construction
performed, equipment provided, materials purchased and all else done directly or
indirectly in connection with construction pursuant to this Agreement at the actual
cost thereof.
2.10 Liens. Developer acknowledges its duty to obtain lien waivers from all third parties
providing labor, materials or services hereunder. Developer hereby irrevocably
waives any rights it may now have or which it may acquire during the course ofthis
Agreement to record liens against Marana or its property. Developer shall also pay,
satisfy and discharge all mechanics', material men's and other liens, and all claims,
obligations and liabilities which may be asserted against Marana or its property by
reason of, or as a result of, any acts or omissions of Developer, its employees, agents,
servants, suppliers, or subcontractors, or the employees, agents, servants or suppliers
of its subcontractors, in connection with or relating to the performance of this
Agreement.
2.11 As-Built Plans. Developer agrees to furnish Marana, within thirty (30) days after
completion of construction, "as-built" drawings certified as to correctness by an
engineer registered in the State of Arizona showing the locations of all water mains,
hydrants, valves, and service connections to all structures served from facilities
constructed pursuant to this Agreement. Marana shall have the right to withhold
water service to Developer pursuant to this Agreement until this condition is
satisfied.
2.12 Risk. Developer shall carry on all work required hereunder at its own risk until the
same is fully completed and accepted by Marana and will, in case of accident,
Page 4 of 16
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561.
,.--...---~--<-_._-~.>
destruction or injury to the work or material before such final completion and
acceptance, replace or repair forthwith the work or materials so injured, damaged or
destroyed, to the satisfaction of Marana and at Developer's own expense.
2.13 Insurance. Developer shall obtain insurance pursuant to Exhibit "E" incorporated
herein by this reference.
2.14 Easements. Developer shall provide to Marana recordable easements and required
surveying, over, under, and across all portions ofthe main and pipeline routes as may
be necessary to serve each parcel or lot within Developer's development. If
Developer's development involves road construction, all roads and drainage ways
will be brought to grade by Developer prior to the commencement ofthe installation
ofthe Water Facilities. No pavement or curbs shall be installed prior to completion
of the Water Facilities.
2.15 Meter Service. Developer shall install, to Marana' s specifications, automated meters,
sensors, and the other necessary equipment for automated meter reading for all water
services on the Property. Provided that Developer is in compliance with this
subparagraph, Marana agrees to waive any water connection or meter installation
fees for new connections within the Property.
2.16 No Permanent Structures on Easements. No permanent structures (i.e., masonry
walls, fences, etc.) shall be constructed on or through a water easement without the
express written consent of Marana.
2.17 Title. All materials installed, Water Facilities constructed and equipment provided
by Developer in connection with construction of the Water Facilities under this
Agreement and the completed facilities as installed shall, upon Marana's acceptance
of the same, become the sole property of Marana, and full legal and equitable title
thereto shall be then vested in Marana, free and clear of any liens, without the
requirement of any written document oftransfer to Marana or further acceptance by
Marana. Developer agrees to execute or cause to be executed promptly such
documents as legal counsel for Marana may request to evidence such conveyance of
good and merchantable title to the Water Facilities free and clear of all liens.
3. COSTS OF CONSTRUCTION OF WATER FACILITIES
3.1 Developer shall, at Developer's sole cost and expense, install all the Water Facilities
shown on the approved plans and specifications, and shall hold Marana free and
harmless from any claim for the construction costs or any defects in such Water
Facilities.e
Page 5 of 16
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562
3.2 Developer shall, at Developer's sole cost and expense, make any and all alterations
to any existing water distribution system, either on-site or off-site, necessitated by
paving, drainage, or other improvements caused by the construction of the
Developer's development.
3.3 The Water Facilities shall be transferred to the ownership of Marana upon their
completion, and no refunds from revenues shall be provided.
4. SECURITY REQUIREMENTS
4.1 In accordance with Arizona Revised Statutes and the Marana Municipal Code, this
Agreement is contingent upon Developer furnishing Marana with such security as
may be appropriate and necessary, as determined by the Town Manager, to assure
Marana that Developer will perform all the Water Facilities and Water System
construction described above, together with all other obligations now existing or
accruing under this Agreement.
5. WATER SERVICE; WATER RIGHTS
5.1 Marana shall be under no obligation to provide water utility service to Developer
until each and every condition ofthis Agreement has been met and satisfied. Marana
agrees that upon satisfaction of each and every condition provided in this Agreement,
that it will then provide water utility service to the Developer's Property.
5.2 Developer hereby assigns to Marana, as a condition of Maran a providing water utility
service, all of its Type 1 and Type 2 water rights as may exist on the Property to be
served by Marana. Developer agrees to execute all forms necessary to effect the
transfer of these water rights to Marana.
5.3 Marana will provide the Designation of Assured Water Supply status for the Property
upon acceptance of the Property into Marana's service area by the Central Arizona
Groundwater Replenishment District (CAGRD). Developer understands and agrees
that a groundwater replenishment fee will be added to the water bills for customers
living within the Property to fund the replenishment of groundwater. The amount of
the replenishment fee may be reduced as a consequence ofthe transfer of Type 1 or
Type 2 water rights to Marana.
Page 6 of 16
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563
6. TERMINATION OF AGREEMENT
6.1 In the event Developer does not complete all of the Water Facilities and Water
System construction described in Article 2, within three (3) years from the date of
this Agreement, this Agreement shall be null and void, canceled and of no further
force and effect.
6.2 Pursuant to A.R.S. 938-501 et seq., Marana may cancel this Agreement within three
years after its execution, without penalty or further obligation if any person
significantly involved in initiating, securing, drafting or creating this Agreement on
behalf of Marana is, at any time while this Agreement or any extension of this
Agreement is in effect, an employee or agent of Developer in any capacity or a
consultant with respect to the subject matter ofthis Agreement. Cancellation under
this section by Marana shall be effective when written notice from Marana is
received by Developer unless the notice specifies a later time. In addition to the right
to cancel as provided herein, Marana may recoup any fee or commission paid or due
to any person significantly involved in initiating, negotiating, securing, drafting or
creating this Agreement on behalf of Maran a from Developer arising as the result of
this Agreement.
7. INDEMNIFICATION
7.1 To the fullest extent permitted by law, the Developer shall defend, indemnify and
hold harmless the Town of Marana, its agents, officers, officials, elected officials,
and employees from and against all tortuous claims, damages, losses and expenses
(including but not limited to attorney fees, court costs, and the cost of appellate
proceedings), relating to, arising out of, or alleged to have resulted from the acts,
errors, mistakes, omissions, work or services ofthe Developer, its agents, employees,
or any tier of Developer's subcontractors in the performance of this Agreement.
Developer's duty to defend, hold harmless and indemnify the Town of Maran a, its
agents, officers, officials and employees shall arise in connection with any tortuous
claim, damage, loss or expense that is attributable to bodily injury, sickness, disease,
death, or injury to, impairment, or destruction of property including loss of use
resulting therefrom, caused by any of Developer' s acts, errors, mistakes, omissions,
work or services in the performance of this Agreement including any employee of
the Developer, any tier of Developer' s subcontractors or any other person for whose
acts, errors, mistakes, omissions, work or services the Developer may be legally
liable. Further, Developer shall indemnify Marana against all claims that may be
asserted against Marana for inadequate fire protection capacity arising from thee
Page 7 of 16
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5.64
design and construction ofthe Water Facility and Water System by Developer or its
employees or agents.
8. NOTICE
8.1 Communications hereunder shall be sent to the parties at the following addresses or
to such other addresses as the parties may advise in writing:
To Marana: Town Manager
Town of Marana
13251 N. Lon Adams Road
Marana, Arizona 85653-9723
With copy to: Daniel J. Hochuli
Daniel J. Hochuli & Associates
220 E. Wetmore Road; Suite 110
Tucson, AZ 85705-1748
To Developer: Kaufman and Broad of Arizona, Inc.
~7RO NorTh S~~n Ro~n
P. O. Box 17360
Tucson, Arizona 85731
Attn: Wi 11 i am A. Est e s, I I I
With copy to: N / A
9. SEVERABILITY
9.1 In the event any portion of this Agreement shall be determined to be invalid, such
invalidity shall not render void any remaining portions ofthis Agreement which can
be given effect, and they shall remain in full force and effect.
Page 8 of 16
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565
10. ASSIGNMENT
10.1 This Agreement shall be binding upon and for the benefit ofthe heirs, administrators,
executors, successors and assigns of Marana and Developer.
11. MISCELLANEOUS
11.1 This instrument contains the sole and only agreement of the parties relating to this
Agreement and correctly sets forth the rights, duties and obligations of each to the
other as of its date. Any prior agreements, promises, negotiations or representations
not expressly set forth in this Agreement are of no force and effect. This Agreement
contains the entire agreement between the parties, and it shall not be amended,
altered or changed, except by written instrument signed by the parties.
11.2 This Agreement shall remain on file at Marana Town Hall and shall be made
available for public review upon request.
11.3 This Agreement is entered into under and shall be governed by the laws ofthe State
of Arizona.
11.4 This Agreement has been arrived at by negotiation and shall not be construed against
any party to it or against the party who prepared the last draft.
11.5 Captions and headings are for index purposes only and shall not be used in
construing this Agreement.
11.6 BEFORE THIS AGREEMENT SHALL BECOME EFFECTIVE AND BINDING
UPON EITHER MARANA OR DEVELOPER, IT MUST BE APPROVED BY
THE MAYOR AND COUNCIL OF THE TOWN OF MARANA. In the event that
it is not so approved, this Agreement shall be null and void and of no force or effect
whatsoever. The remedies provided in this Agreement in favor of Marana shall not
be deemed its exclusive remedies but shall be in addition to all other remedies
available at law or in equity. No waiver by Marana of any breach by Developer of
any provision of this Agreement nor any failure by Marana to insist on strict
performance by Developer of any provision of this Agreement shall in any way be
construed to be a waiver of any future or subsequent breach by Developer or bar the
right of Maran a to insist on strict performance by Developer ofthe provisions of this
Agreement in the future. Developer is an independent contractor and not an agent
or employee of Marana.
11.7 This Agreement, and all rights and obligations hereunder, including those regarding
water service to the Developer, shall be subject to all provisions of the Municipal
Page 9 of 16
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56Q
Code ofthe Town of Maran a and all applicable rates, fees, charges and tariffs ofthe
Marana Water Utility as approved by the Mayor and Council ofthe Town of Maran a
now or as they may be changed and approved by the Mayor and Council ofthe Town
of Marana in the future.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first
above written.
TOWN OF MARANA
, f
~l:J(k~)
Mayor ORA M H~
ATTEST: .......,.
... l.;~'/1//)
>~~..
__,-,..--" I i
, .
I i
APP~~ AS TO FORM:
k~~:gz .~/:x".
. Daniel J. Hochuli ..) /
T own Attorney
DEVELOPER:
V;(~~
William A. Estes, III
Authorized Agent for
Kaufman and Broad of Arizona,
Inc.
Page 10 of 16
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567
STATE OF ARIZONA )
) ss.
COUNTY OF PIMA )
ACKNOWLEDGMENT
This instrument was acknowledged before me this 9 t h day of J un e
William A. Estes. ~ Authorized Agent
III
of
Arizona,
as Developer.
Inc.
My Commission Expires:
Ortohf>r CJ, lCJCJCJ
OFFICIAL SEAL
JANET L, METHOT
N01ARY PUBUC ~ ARIZONA
"IMA OOUNTY
~y f;.,,;p~, tlpires Oel . 9 J 1999
10846
Page 11 of 16
568
, 1998, by
of Kaufman and Broad
~,~
U,( p ~.
N ary Public
EXHIBIT "A"
LOCATION MAP OF THE DEVELOPMENT
WITH LEGAL DESCRIPTION
LOT NUMBERS 3 - 6, 71 -78, 97, AND 107 -144
OF CORTARO RANCH RECORDED IN PIMA COUNTY,
ARIZONA IN BOOK 51 OF MAPS AT PAGE 6.
Page 12 of 16
10846
569.
-
EXHIBIT "A"
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LDCA TIDN MAP
A PORTION ex: THE NORTH HALF (NH) (Y
SECnON 26, 1-12-5, R-12-E, G. ct 5.R.M.,
TOMV OF UARANA, PIMA COUNTY, ARIZONA
CERTIFICA TION
I HEREBY CERnFY THA T THIS PLAT REPRESENTS A SURVEY MADE BY ME OR
UNDER MY SUPERVISION AND THA T ALL BOUNDARY MONUMENTS INDICA TED
AS FOUND HEREON ACTUALL Y EXIST, AND TH[fR LOCA TION, SIZE AND MA TERIAL
ARE CORRECTL Y SHOMV. ALL RECORDED EASE}JENTS AND RIGHTS-OF - WA Y
L1STEDIN THE STEWART TITLE k TRUST OF TUCSON, NUMBER 95210272 DATED
FEBRUARY 16, 1995, ARE SHOWN OR NOTED AS TO THEIR EFFECT.
10846 570
.An~D~'^-
EXHIBIT "B"
INCORPORATION BY REFERENCE OF THE
PLANS AND SPECIFICATIONS OF THE
WATER UTILITY FACILITIES TO BE CONSTRUCTED HEREUNDER
Reference is hereby made to those certain 24" x 36" engineering drawings of the Water
Facilities Plans. Copies of such engineering drawings may be reviewed at Marana's offices.
Such engineering drawings may be more specifically described as follows:
[Please provide a detailed description of the Plans and Specifications
including the date and the code-number of the Plans and the name of the
Engineering firm which prepared the same.]
Page 13 of 16
r08l~6 571
,0 _.~_. '''~ ...
EXHIBIT" C"
ITEMIZED BREAK-DOWN OF THE ESTIMATED COST OF THE
WATER UTILITY FACILITIES TO BE CONSTRUCTED HEREUNDER
[Please slip a line-by-line itemized break-down of the Estimated
Cost of the Water Utility Facilities to be installed in accordance with
this Agreement behind this cover sheet.]
Page 14 of 16
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572
~d -.,' ~.. . = --
lo0eOl5.667cs16.67H
Contractor
CORTARO RANCH
Wa t el- F ac i 1 i t y
llJ01-k
EXHIBIT "e"
-------------------------------------------------------------~----------
Cost
CRANE Machine and Pump
Service, Inc.
110 E. Lester Dr.
Tucson, AZ 85705
SMYTH Steel
3415 E. Kleindale
Tucson, AZ 85716
COMET Electric
P.O. Box 573
Vail, AZ 85614
Arizona Hydrojetting &
Plumb i ng, I nc .
&351 E. Beverly Dr.
Tucson, AZ 85710
ROYCE Corporation
Pumps, Mechanical and
above ground piping
Sales ta>~ @ 3.25X
CRANE Total
150,000g storage Tank
5,000g Pressure Tank
Sales tax @ 3.25Y.
SI'1YTH Tota 1
Electric & Controls
Sales Tax @ 3.25Y.
COMET Total
Underground Piping
Sales Tax @ 3.25X
AH&P Total
llla 11
Sales Tax @ 3.25
F:OYCE Tot a 1
$'33 ,235 .00
$3,030.14
$'36,265.14
$68,750.00
$11,800.00
$2,234.3?
83167.88
$6'3,432.55
$2,256.56
$71 ,689.11
$5,'300.00
$191.75
$6 ,091 .75
$21,041 .2E.
$683.84
$21 , 725 . 10
WATER FACILITY Total $278,938.98
.oOeOl5.667cs16.67H
10846
MARANA Permit @ IX = $2,789.39
573
EXHIBIT "0"
ACTUAL COST OF
WATER FACILITIES
To be attached at the completion of project
per John Siath and Sandy Groseclose
Page 15 of 16
10846 574
EXHIBIT "E"
INSURANCE REOUIREMENTS
[To be Attached Forthwith.]
Page 16 of 16
10846 575
EXHIBIT E
INSURANCE REQUIREMENTS
The amount and type of insurance coverage requirements set forth herein shall in no way be construed
to limit the scope of the indemnity contained in the Agreement.
The Developer, at its own expense, shall purchase and maintain the herein stipulated minimum
insurance with companies duly licensed, possessing a current A.M. Best, Inc., Rating ofB++6, or an
approved company unlicensed in the State of Arizona with policies and forms satisfactory to the
Town of Marana.
All insurance required herein shall be maintained in full force and effect until all work or service
required to be performed under the Agreement is satisfactorily completed and formally accepted by
the Town; failure to do so may, at the sole discretion ofthe Town, constitute a material breach ofthe
Agreement.
The Developer's insurance shall be primary insurance as it relates to the Town, and any insurance or
self-insurance maintained by the Town shall not contribute to any claims.
Any failure to comply with the claim reporting provisions of the insurance policies or any breach of
an insurance policy warranty shall not affect coverage afforded under the insurance policies to protect
the Town.
The insurance policies, except Workers' Compensation, shall contain a waiver of transfer rights of
recovery (subrogation) against the Town, its agents, officers, officials, elected officials, and
employees for any claims arising out of the Developer's acts, errors, mistakes, omissions, work or
servIce.
The insurance policies may provide coverage which contains deductibles or self-insured retentions.
Such deductibles and/or self-insured retentions shall not be applicable with respect to the coverage
provided to the Town under such policies. The Developer shall be solely responsible for the
deductibles and/or self-insured retentions and the Town, at its option, may require the Developer to
secure payment of such deductibles or self-insured retentions by a Surety Bond or an irrevocable and
unconditional letter of credit.
The Town reserves the right to request and to receive, within ten (10) working days, certified copies
of any or all of the herein required insurance policies and/or endorsements. The Town shall not be
obligated, however, to review same or to advise Developer of any deficiencies in such policies and
endorsements, and such receipt shall not relieve Developer from, or be deemed a waiver of, the
Town's right to insist on strict fulfilment of Developer's obligations under this Agreement.
The insurance policies, except Workers' Compensation, required by the Agreement, shall name the
Town, its agents, officers, officials, elected officials, and employees as Additional Insureds.
Page 1 of 3
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576
REQUIRED COVERAGE
Commercial General Liability
The Developer shall maintain Commercial General Liability insurance with a policy limit of not less
than $5,000,000.00 for each occurrence with a $10,000,000.00 Products/Completed Operations
Aggregate and a $10,000,000.00 General Aggregate Limit. The policy shall include coverage for
bodily injury, broad form property damage, personal injury, products and completed operations and
blanket contractual coverage including, but not limited to, the liability assumed under the
indemnification provisions ofthis Agreement which coverage will be at least as broad as the coverage
under Insurance Service Office, Inc., Policy Form CG 00011093 or any replacements thereof. The
coverage shall not exclude X, C, and U.
Such General Liability policy shall contain a severability of interest provision, and shall not contain
a sunset provision nor commutation clause, nor any provision which would serve to limit third party
actions over claims.
The Commercial General Liability additional insured endorsement shall be at least as broad as the
coverage under Insurance Service Office, Inc., Additional Insured, Form B, CG 20101085, and shall
include coverage for the Developer's operations and products and completed operations.
If required by the Agreement, the contractor subletting any part of the work, services or operations
awarded to the Developer shall purchase and maintain, at all times during prosecution of the work,
services or operations under the Agreement, an Owner's and Contractor's Protective Liability
insurance policy for bodily injury and property damage, including death, which may arise in the
prosecution of the Developer's work, service or operations under the Agreement. Coverage shall be
on an occurrence basis with a limit not less than $5,000,000.00 per occurrence, and the policy shall
be issued by the same insurance company that issues the Developer's Commercial General Liability
msurance.
Automobile Insurance
The Developer shall maintain comprehensive automobile liability insurance covering all owned and
non-owned automobiles and trucks used by or on behalf ofthe Developer in connection with the work
and services provided under the Agreement. Policy limits shall be not less than $5,000,000.00 per
occurrence and $10,000,000.00 aggregate.
Workers' Compensation
The Developer shall carry Workers' Compensation insurance to cover obligations imposed by federal
and state statutes having jurisdiction over the Developer's employees engaged in the performance of
the work or services and Employer's Liability insurance of not less than $1,000,000.00 for each
accident, $1,000,000.00 disease coverage for each employee, and $5,000,000.00 disease policy limit.
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In case any work is subcontracted, the Developer will require the subcontractor to provide Workers'
Compensation and Employer's Liability insurance to at least the same extent required of the
Developer.
Professional Liability
The Developer shall maintain Professional Liability insurance covering acts, errors, mistakes, and
omissions arising out of the work or services performed by the Developer, or any person employed
by the Developer, with a limit of not less than $5,000,000.00 per claim.
CERTIFICATES OF INSURANCE
Prior to commencing work or services under this Agreement, the Developer shall furnish the Town
with Certificates of Insurance, issued by the Developer's insurer(s), as evidence that policies
providing the required coverages, conditions and limits required herein are in full force and effect.
In the event that any insurance policy(ies) required by this Agreement is(are) written on a "claims
made" basis, coverage shall extend for two years past completion and acceptance ofthe Developer's
work or services and be evidenced by annual Certificates ofInsurance.
If a policy does expire during the life of the Agreement, a renewal certificate must be sent to the
Town fifteen (15) days prior to the expiration date.
All Certificates of Insurance shall be identified with bid serial number and title. A $25.00
administrative fee will be assessed for all certificates received without the appropriate bid serial
number and title.
CANCELLATION AND EXPIRATION NOTICE
Insurance required herein shall not be canceled nor materially changed without thirty (30) days prior
written notice to the Town.
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