HomeMy WebLinkAboutResolution 97-054 approving escrow instructions for purchase of CMID water systemMARANA RESOLUTION NO. 9%54
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF MARANA, ARIZONA,
AUTHORITING AND APPROVING ESCROW INSTRUCTIONS FOR THE PURCHASE OF
THE CORTARO-MARANA IRRIGATION DISTRICT MUNICIPAL WATER SYSTEM; AND
DECLARING AN EMERGENCY.
WI-IF~REAS, The Town of Marana and the Cortaro-Marana Irrigation District ("CMID") and
the Cottaro Water Users Association ("CWUA") have previously adopted a Memorandum of
Understanding regarding the Town's purchase of the CMID CWUA municipal water system; and
WHEREAS, the parties desire to open up an escrow account into which the Town will
deposit the funds for the purchase price, in an amount of $600,000; and
WHEREAS, closing of the purchase of the CMID CWUA municipal water system requires
an additional, separate Intergovernmental Agreement between the parties.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Mararia, Arizona, as follows:
Section 1.
That the Mayor and Council hereby authorize the Mayor to execute the Escrow
Instructions attached hereto and made a part hereof as Exhibit "A."
Section 2.
The Finance Director of the Town is hereby directed to deposk the amount of
$600,000 into the escrow account to be established at First American Title Insurance
Company in furtherance of the Escrow Instructions.
Section 3.
The Mayor and Town of Marana staff are further directed to take all necessary and
reasonable steps in furtherance of said Escrow Instructions.
Section 4.
An emergency is hereby declared to exist affecting the health, safety, and welfare of
the people of Marana, and this Resolution shall be exempt from the provision of
Referendum as provided by law.
Maram, Arizona R¢*olution No. 97-54 Page 1 of 2
PASSED AND ADOPTED by the Mayor and Council of the Town of Mararia, Arizona,
this 17th day of June, 1997.
Mayor ORA HA~.N "/
Mataria, Arizona Ra~olution No. 97-54 Page 2 of 2
ESCROW INSTRUCTIONS
This Agreement is by and among the Town of Marana, a municipal corporation of the State
of Arizona ('Town"), the Cottaro Water Users' Association, an Arizona corporation, and the Cortaro~
Mararia Irrigation Dislrict, an Irrigation District of the State of Arizona (collectively ~District"), and First
American Title Insurance Company CEscmw Agent").
The Town and the District have executed a Memorandum of Understanding on
, 199__, which provides, among other things, for the Town to purchase from the
District domestic water customers, domestic water distribution systems, and related items for the sum of
six hundred thousand dollars ($600,000). The Memorandum also provides for the Town and the District
to provide for further details of and fmali?e this transaction in an Intergovernmental Agreement CIGA")
to be executed by both parties on or before September 1, 1997, unless extended by mutual written
agreement of the parties hereto.
The Town and the District hereby designate the Escrow Agent to be First American Title
Insurance Company, 1880 East River Road, Tucson, Arizona.
Upon execution of this Agreement by the Town, District, and Escrow Agent, the Escrow
Agent shall open escrow for this transaction as it is set forth in the Memorandum of Understanding. The
Town shall, upon opening of escrow, provide a check to the Escrow Agent in the amount of six hundred
thousand dollars ($600,000) made payable to the Escrow Agent. The Escrow Agent shall immediately
deposit said amount into an FDIC insured interest bearing account.
Should the Town and the District timely execute and deliver the IGA to Escrow Agent, the
Escrow Agent shall apply the principal amount of six hundred thousand dollars ($600,000) to the
transaction, with all accrued interest to be returned to the Town.
Should the Town and the District fail to timely execute and deliver the IGA to the Escrow
Agent for any reason, the Escrow Agent shall immediately return to the Town an amount equal to the
principal plus accruing interest, but less all charges by the Escrow Agent for opening and administering
the escrow.
Dated: /~//?/¢7' , 1997.
Town of Mararia
Dated:
Dated:
Dated:
,1997.
, 1997.
, 1997.
Cortaro Water Users' Association
By:
Its:
Attest:
Secretary
Cortaro-Marana Irrigation District
Pima County, Arizona
By:
Its:
Attest:
Secretary
Approved As To Form:
District Attorney
First American Title Insurance
Company
By:
Its:
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