HomeMy WebLinkAboutResolution 2009-127 water service agreement for continental crossingMARANA RESOLUTION N0.2009-127
RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
AN AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE
CONTRACT FOR THE CONTINENTAL CROSSING PROJECT
WHEREAS DAZ7-SOMBRERO PEAK, LLC desires to install onsite and offsite water
facilities to provide water service to the Continental Crossing residential development; and
WHEREAS the Town of Marana is willing to provide water service to and within
Continental Crossing project in accordance with Title 14 of the Marana Town Code and in
accordance with the terms of the Agreement for Construction of Water Facilities Under Private
Contract between the Town of Marana and DAZ7-SOMBRERO PEAK, LLC for the Continental
Crossing development project; and
WHEREAS the Mayor and Council find that the terms and conditions of the agreement are in
the best interest of the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, that the Agreement for Construction of Water Facilities Under
Private Contract for the Continental Crossing development project, attached to and incorporated by
this reference in this resolution as Exhibit A, is hereby approved, and the Mayor is hereby authorized
to execute it for and on behalf of the Town of Marana.
BE IT FURTHER RESOLVED that the Town's Manager and staff are hereby directed and
authorized to undertake all other and further tasks required or beneficial to carry out the terms,
obligations, and objectives of the aforementioned agreement.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 18~' day of August, 2009.
ATTEST:
``®!~1 i
~~® OF
~~~~a~u~
r !~~ GOR«(
SSE,
~~'~eiiwi
ce yn C. onson, Town Clerk
~- -
Mayor' Ed Honea
APPROVED AS TO FORM:
~ ~ /,,..
/ ^~ C''
Pr Cassidy, Town Att ey
~~
{00015633.DOC /}
F. ANN RODRIGUEZ, RECORDER DOCKET:
RECORDED BY: MRB PAGE:
DEPUTY RECORDER
1562 PE-1 °F ~I~
~~~~04 NO. OF PAGES:
SEQUENCE:
sMARA w ~x
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TOWN OF MARANA 1 AG
ATTN: TOWN CLERK `9$~Ol`Z¢`
11555 W CIVIC CENTER DR MAIL.
MARANA AZ 85653 AMOUNT PAID
TOWN OF MARANA
AGREEMENT FOR CONSTRUCTION OF WATER
FACILITIES UNDER PRIVATE CONTRACT
(Continental Crossing Project)
13680
721
11
20092150203
11/06/2009
14:49
$ 11.00
Txis AGREEMENT (this "Agreement") is entered into by and between the Towty of MARANA,
an Arizona municipal corporation (the "Town"), and DAZ7-SOMBRERO PEAK, L.L.C., a Missouri
limited liability company (the "Applicant"). The Town and the Applicant are sometimes collec-
tively referred to as the "Parties," each of which is sometimes individually referred to as a "Parry."
RECITALS
A. This Agreement is entered into and authorized pursuant to Title 14 of the Marana
Town Code as it may be amended from time to time (the "Marana Municipal Water Code").
B. The Applicant desires for the Town to provide water service to the land described and
depicted on Exhibit A attached to this Agreement (the "Subject Property").
C. The development project currently proposed to be constructed on the Subject Property,
which project is commonly referred to as the "Continental Crossing Project," consists of a com-
mercial phase and a residential phase.
D. The Applicant has submitted design plans for the water infrastructure improvements
needed to serve the commercial phase of the Continental Crossing Project, and anticipates sub-
mitting design plans for the water infrastructure improvements needed to serve the residential
phase of the Continental Crossing Project at a later date.
E. This Water Service Agreement is intended to cover and include the required water in-
frastructure improvements and fees needed for the Subject Property, including both the initial
commercial phase and the later residential phase of the Continental Crossing Project.
F. To secure water service from the Town for the Subject Property, the Applicant pro-
poses to install those certain water infrastructure improvements referred to in this Agreement as
the "Applicant-Installed Facility."
G. The required plans, specifications, and materials for the Applicant-Installed Facility
have been approved by the Town.
H. The Applicant desires that the Town take ownership of, operate, and service the Appli-
cant-Installed Facility
~,.
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Continental Crossing Condos WSA - 1 - 4/9/2009 8:54 AM FJC/kc
I. The Town is willing to accept the Applicant-Installed Facility and permit it to be con-
nected to the Town water system provided it meets Town standards and the work is done in accor-
dance with Town requirements.
AGREEMENT
Now, TxExEFOxE, in consideration of the foregoing premises and the mutual covenants set
forth in this Agreement, the Parties hereby agree as follows:
1. General
1.1. Applicant installation of the Applicant-Installed Facility. The Applicant has designed
and shall install, at Applicant's own expense, the water infrastructure improvements as depicted
in Plan No. ENG-0705-007 as approved by the Town and on file in the office of the Town of
Marana Water Utility as needed to provide water service to the commercial portion of the Conti-
nental Crossing Project, and the Applicant will design and shall install, at Applicant's own ex-
pense, the water infrastructure improvements which will be depicted in a future plan for the con-
dominium phase of the Continental Crossing Project. The water infrastructure improvement
plans for both the commercial phase and the residential phase, together, are collectively referred
to in this Agreement as the "Facility Plan". The water infrastructure improvements depicted and
to be depicted on the Facility Plan are referred to in this Agreement as the "Applicant-Installed
Facility," and shall conform to the design standards of the City of Tucson Water Department and
the Town of Marana Municipal Water Code and special specifications and details as approved by
the Town and by this reference made a part of this Agreement. The Facility Plan shall include a
plan note identifying the Applicant-Installed Facility as a new water facility and shall show any
and all alterations to the existing water system. Construction and installation of the Applicant-
Installed Facility in accordance with the Facility Plan, including without limitation all labor, ma-
terials, equipment, supplies, and tools required for the construction and installation, is referred to
in this Agreement as the "Work."
1.2. Work by licensed contractor. The Work shall be performed by a contractor properly li-
censed by the State of Arizona as determined by the Arizona Registrar of Contractors. In addi-
tion to any other contractor's license classifications required by the Arizona Registrar of Con-
tractors, the contractor shall hold contractor's license classifications A, A-12 and A-16.
1.3. Payment of connection fees. Before any service connections are made from the Town's
water system to the Applicant-Installed Facility, the Applicant shall pay to the Town the connec-
tion fees and any other fees required by the Marana Municipal Water Code.
1.4. Fair-share water delivery infrastructure contribution. The Applicant shall pay $300,000 ~.~
to the Town upon issuance of the first building permit for the Subject Property, for the Appli-
cant's fair share of the costs of water projects that directly serve the Property; specifically, half
of the estimated cost of equipping Continental Reserve Well 2 and the pipeline improvements
required to connect to the Continental Reserve Water Plant. Any Applicant costs required to loop
the waterline as required for the commercial portion of the Continental Crossing project are in
addition to, and not included within, this $300,000 payment.
{00012138.DOC / 3}
Continental Crossing Condos WSA 2 4/9/2009 8:54 AM FJC/Icc
1.5. Anticipated cost per meter. The Applicant shall pay all fees for water connection and
service in the amounts established and amended by the Town from time to time. The total charge
for each 11/2" water meter to be installed on the Subject Property is currently $8,255.00, includ-
ing the meter fee and gravity storage and renewable water resource fee. This project is entitled
to a credit of $4,320.00 for each 1 %2" meter against the infrastructure impact fee for the fair-share
water delivery infrastructure contribution.
1.6. Applicant-Installed Facility acceptance by Town. No service connections shall be made
from the Town's water system to the Applicant-Installed Facility until the Applicant-Installed
Facility has been accepted by the Town in accordance with the Marana Municipal Water Code.
1.7. Frontage requirement. Any property connecting onto a water main shall have a mini-
mum of fifteen feet of frontage on that main. A water easement or other utility easement shall not
constitute frontage for purposes of this paragraph.
1.8. Meter application requirements. A meter application will be accepted only if the prop-
erty to be served fronts the waterline. Only one water meter application will be allowed per legal
description unless the property owner can provide the Town with plans indicating the type of
improvement or development taking place on the land that justifies more than one meter. If any
portion of the property served by the water meter is sold, the owner of the portion of land that
fronts the water main shall have all rights associated with the water meter unless other arrange-
ments are made with and approved by the Town of Marana Water Utility prior to the sale.
1.9. Applicant's certification. Execution of this Agreement certifies that the Applicant has
reviewed the Facility Plan and all other specifications applicable to the Work and has approved
and agrees with the location of all service lines.
1.10. Termination for lack of Work. Approval of the Facility Plan shall lapse and this Agree-
ment shall terminate if more than two (2) years has passed since the date Applicant receives final
approval of the Development Plan for the Subject Property and the Work has not begun, or if the
Work is discontinued for a continuous period of one year.
2. Engineering and Inspection
2.1. Registered civil engineer. When the cost of the Work exceeds $12,500.00, the Applicant
shall employ a registered Civil Engineer to design, lay out, establish control lines for and certify
the layout of the Work according to the Facility Plan.
2.2. Town inspector's authority. Any inspector authorized by the Town shall have full in-
spection authority over the Work.
2.3. Inspection provisions. The Applicant shall furnish the Town's inspector with all facilities
reasonably necessary to inspect the Work. The Work shall be subject to Town inspection at all
times. Defective work shall be corrected in a manner satisfactory to the Town's inspector. In-
spection by the Town is for the purpose of ensuring compliance with plans and specifications
only. The Town makes no guarantee as to the safety or engineering soundness of plans prepared
by Applicant or any contractor.
{00012138.DOC / 3}
Continental Crossing Condos WSA - 3 - 4/9/2009 8:54 AM FJC/kc
2.4. Payment of Town inspector's overtime cost. If scheduling by Applicant's contractor rea-
sonably requires the Town's inspector to work overtime, the Applicant or Applicant's contractor
shall pay the Town for any additional salaries, expenses or employee benefits relating to the
overtime. For purposes of this paragraph, overtime is any time over 40 hours worked in a seven-
day work period, any time over eight hours worked Monday through Friday, and any time
worked on weekends and legal holidays observed by the Town.
3. Preconstruction Procedure
3.1. Request to begin construction. The Applicant shall submit a written request to begin con-
struction to the Town five working days before the Work is to commence.
3.2. Construction permit. This Agreement shall be completed, signed and notarized, and re-
turned to the Town prior to issuance of a construction permit for the Work.
3.3. Start and completion of the Work. No portion of the Work shall begin until the Town has
issued a construction permit specifying the starting date and a reasonable time for completion.
3.4. Progress of the Work. The work shall be commenced and carried on at such points and
in such order as may be directed by the Town.
3.5. Materials sampling and testing. Materials shall be available for sampling and testing by
the Town prior to being used in the Work. Materials that fail to meet Town specification shall be
removed from the site.
3.6. Permits and approvals. The Applicant shall, at Applicant's expense, obtain all necessary
permits and licenses for the Work, pay all fees and comply with all laws, ordinances and regula-
tions relating to the Work.
4. Construction
4.1. Applicant's presence on site. The Applicant, or Applicant's designated agent, shall be
present at all times during performance of the Work. The name of the Applicant's designated
agent and the contractor performing the Work shall be furnished to the Town before the Work
begins. Instructions given by the Town to the designated agent shall be deemed to have been
given to the Applicant.
~„
4.2. Competence and diligence. The Applicant shall employ only competent and efficient la-
borers, mechanics or artisans on the work, and the Applicant agrees to perform the work dili-
gently to complete the work on or before the completion date given in the notice to proceed, sub-
ject at all times to delays caused by Force Majeure. ~"~
4.3. Paving. The Applicant shall identify and locate all water valves prior to paving and set "°
valve boxes to final grade after paving. "'~
4.4. Alterations to the existing Town water system. The Applicant shall, at Applicant's ex-
pense, make any and all alterations to the existing water system either on-site or off-site necessi-
tated by paving, drainage, or other improvements caused by the development of the Subject
Property.
{00012138.DOC / 3}
Continental Crossing Condos WSA - 4 - 4/9/2009 8:54 AM FJC/kc
4.5. Worksite safety. The Applicant shall require all contractors and subcontractors perform-
ing any portion of the Work to comply. with all safety requirements of the Occupational Safety
and Hazards Act as set forth by the Federal Government and as implemented by the State of Ari-
zona. The Applicant or its contractors shall be solely responsible for all fines or other penalties
provided for by law for any violations of the Occupational Safety Hazards Act.
5. Dedication
5.1. Transfer of the Applicant-Installed Facility to the Town. Upon the Town's final accep-
tance of the Work, the Applicant shall at no cost grant, bargain, sell, convey, transfer and deliver
to the Town the Applicant-Installed Facility free and clear of all liens, claims, charges or encum-
brances.
5.2. Two year warranty. The Applicant guarantees the Work to be free from all failures due
to poor workmanship or materials for a period of two years from the date of the Town's final ac-
ceptance of the Work.
5.3. Other conflicting construction prohibited. The Applicant shall not construct or allow the
construction of any utility, building, or other improvement that would interfere with the opera-
tion or maintenance of the Applicant-Installed Facility.
5.4. Applicant's obligation to maintain finished grade. The Applicant guarantees that all ser-
vice lines, meters, and meter boxes on the Subject Property will be to finished grade and that
Applicant will remain responsible for raising or lowering said services as required until the Sub-
ject Property is fully developed.
5.5. Acceptance by the Town. The Town shall accept title to and take possession of the Ap-
plicant-Installed Facility when the Work has been completed to the satisfaction of the Town.
Subject to the Applicant's continuing obligations under this Agreement, the Town shall operate
and service the Applicant-Installed Facility after taking over possession of it under this para-
graph.
6. Miscellaneous
6.1. Indemnity. Applicant shall indemnify, defend, and hold harmless the Town, its Mayor
and Council, officers and employees, boards, committees and commissions from and against any
loss, claim, suit, demand, cause of action, or liability of any nature, including but not limited to
damage to property and injuries to persons, including death, arising or alleged to have arisen, in
whole or in part, out of any negligent act or omission of Applicant or any contractor, subcontrac-
tor, or any person employed directly or indirectly by any of them in the performance of the Work
or in the operation of the Applicant-Installed Facility, provided, however, that Applicant's in-
demnity shall not extend to any loss, claim, suit, demand, cause of action, or liability arising
from the negligent act or omission of the Town.
6.2. Binding effect. This agreement shall be binding upon and inure to the benefit of the heirs,
executors, administrators, successors and assigns of the Parties.
{00012J38.DOC / 3}
Continental Crossing Condos WSA - $ - 4/9/2009 8:54 AM FJC/kc
6.3. Consent required for assignment. Applicant may not assign this Agreement without the
prior written consent of the Town, which consent shall not be unreasonably withheld, conditioned
or delayed.
6.4. Cancellation for conflict of interest. This agreement is subject to A.R.S. § 38-511, which
provides for cancellation in certain instances involving conflict of interest.
6.5. Force Majeure. "Force Majeure" shall mean Applicant's inability to obtain equipment or
building materials, acts of God, fire, earthquake, flood, rainfall or other weather-caused delays,
vandalism, acts of terrorism or lawlessness, acts or delays of public agencies or governmental
bodies, or the authority under the covenants, conditions and restrictions, any moratorium on the
issuance of governmental approvals or utility service connections or other similar government
actions, strikes, union labor disputes or other union work stoppages, freight embargoes or inabil-
ity to obtain basic materials, supplies or fuels, uncommon or unusual delays in the issuance of
governmental permits or approvals, or other events beyond the reasonable control of Applicant
or its contractors.
[Remainder of page intentionally left blank.]
,~
{ 00012138.DOC / 3 }
Continental Crossing Condos WSA - 6 - 4/9/2009 8:54 AM FJC/kc
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth
below their respective signatures.
TowN:
THE TOWN OF NIARANA, an Arizona municipal
corporation
By. ~.~
d Honea, Mayor
Date: J I _~ -~' ~ /
ATTEST:
Jo lyn C. B son, Clerk
APPROVED AS TO FORM:
Fra assy, Town A ey
/ti`1 ISS~r? 1
STATE OF e D~vn )
ss
APPLICANT:
DAZ7-SOMBRERO PEAK, L.L.C., a Missouri
limited liability company
By: THE DESCO GROUP, INC., a Missouri
corporation, its Manager
By:
Mark J. Schnuck, President
Date: ~ li')
County of )
~~ Li`~etS ~
The foregoing instrument was acknowledged before me on }c• ~ ~ t ~ ,~ ~ t/= i by Mark J.
Schnuck, President of THE DESCO GROUP, INC., a Misso i corporation, the Manager of DAZ7-
SOMBRERO PEAK, L.L.C., a Missouri limited liability comp~aiy.
~~`
My i o mi ion expires:
`~1 Notary Public
Kathleen Wildhaber -Notary Public
Notary Seat, State of
~ Missouri - St. Louis County
Commission #07416820
My Commission Expires 12/16/2011
{00012138.DOC / 3}
Continental Crossing Condos WSA - ~ - 4/9/2009 8:54 AM FJC/kc
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