HomeMy WebLinkAbout03/21/2006 Blue Sheet Water Agreement Payson Farms
TOWN COUNCIL
MEETING
INFORMATION
TOWN OF MARAN A
MEETING DATE: March 21, 2006
AGENDA ITEM: I. 2
TO: MAYOR AND COUNCIL
FROM: C. Brad DeSpain, Utilities Director
SUBJECT: Resolution No. 2006-43: Relating to Water Service; approving
and authorizing the execution of the agreement for construction of
water facilities under private contract between the Town of
Marana and Title Security Agency of Arizona, as Trustee for #910,
for water service to property commonly known as Payson Farms.
DISCUSSION
Title Security Agency of Arizona, as Trustee for #910, desires to install on-site and pay for off-
site water facilities to provide water service to their property known as Payson Farms. Pursuant
to an agreement between the Town of Marana and Title Security Agency of Arizona, as Trustee
for #910, the developer will construct the on-site water facilities and will pass ownership of these
facilities to the Town; the Town will then provide water service to Payson Farms.
A TT ACHMENT(S)
Agreement.
RECOMMENDATION
The Water Utility Advisory Committee and Staff recommend approval of the execution of the
agreement between the Town of Marana and Title Security Agency of Arizona, as Trustee for
#910, for construction of water facilities under private contract for water service to Payson
Farms.
SUGGESTED MOTION
I move to approve Resolution No. 2006-43.
BLU Payson Farms
03/15/20061:48 PM APM
MARANA RESOLUTION NO. 2006-43
RELATING TO WATER SERVICE; APPROVING AND AUTHORIZING THE EXECUTION OF
THE AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE
CONTRACT BETWEEN THE TOWN OF MARANA AND TITLE SECURITY AGENCY OF
ARIZONA, AS TRUSTEE FOR #910, FOR WATER SERVICE TO PROPERTY COMMONLY
KNOWN AS PAYSON FARMS.
WHEREAS, Title Security Agency of Arizona, as Trustee for #910, desires to install on-site and
pay for off-site water facilities to provide water service to and within Payson Farms; and
WHEREAS, the Town of Maran a is willing to provide water service to and within Payson Farms
in accordance with Title 14 of the Marana Town Code and in accordance with the terms of the agreement;
and
WHEREAS, Title Security Agency of Arizona, as Trustee for #910, agrees to the construction of
water facilities for Payson Farms; and
WHEREAS, the Mayor and Council find that the terms and conditions of the agreement are in the
best interests of the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MA YORAND COUNCIL OF THE TOWN
OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Agreement for Construction of Water Facilities Under Private Contract
between the Town of Marana and Title Security Agency of Arizona, as Trustee for #910, attached as
Exhibit A, is hereby authorized and approved.
SECTION 2. The Mayor is hereby authorized and directed to execute, and the Town Clerk is
hereby authorized and directed to attest to said Exhibit A on behalf of the Town of Marana.
SECTION 3. The various Town officers and employees are authorized and directed to perform
all acts necessary or desirable to give effect to this resolution.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 21 st day of March 2006.
Ed Honea, Mayor
ATTEST:
APPROVED AS TO FORM
Jocelyn Bronson, Town Clerk
Frank Cassidy, Town Attorney
TOWN OF MARANA
AGREEMENT FOR CONSTRUCTION OF WATER
FACILITIES UNDER PRIVATE CONTRACT
THIS AGREEMENT (this "Agreement") is entered into by and between the TOWN OF MARANA,
an Arizona municipal corporation (the "Town"), and TITLE SECURITY AGENCY OF ARIzONA AS
TRUSTEE FOR #910, an Arizona corporation referred to as (the "Applicant"). The Town and the Ap-
plicant are sometimes collectively referred to as the "Parties," each of which is sometimes individu-
ally referred to as a "Party."
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. 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."
D. The required plans, specifications, and materials for the Applicant-Installed Facility
have been approved by the Town.
E. The Applicant desires that the Town take ownership of, operate, and service the Appli-
cant-Installed Facility
F. 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, THEREFORE, 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-0508-006 as approved by the Town and on file in the office of the Town of
Marana Water Utility (the "Facility Plan"). The water infrastructure improvements depicted on
the Facility Plan are referred to in this Agreement as the "Applicant-Installed Facility," and shall
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conform to the design standards of the City of Tucson Water Department and the Town of Ma-
rana 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 iden-
tifying the Applicant-Installed Facility as a new water facility and shall show any and all altera-
tions to the existing water system. Construction and installation of the Applicant-Installed Facil-
ity in accordance with the Facility Plan, including without limitation all labor, materials, equip-
ment, 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 a lump sum
fee of $317,088 for the Applicants fair-share infrastructure connection fees (calculated based on
367 lots at $864.00 per lot) and any other fees required by the Marana Municipal Water Code.
1.4. Fair-share water delivery infrastructure contribution. The Applicant shall pay its fair
share of the costs of water projects that directly serve the Property, currently estimated to total
$277,730, determined as follows:
1.4.1 23.33% of the total cost of the Civic Center Loop water main project.
1.4.2 23.33% of the total cost of the Ora Mae Ham Park to Lon Adams water main project.
1.4.3 23.33% of the total cost of the sixteen-inch water main from Civic Center Loop to
Clark Farms Boulevard to Sandario Road.
1.4.4 35.04% of the total cost of the sixteen-inch water main in Clark Farms Boulevard from
Sandario Road to the eastern boundary of the west half of Section 28, Township 11 South, Range
11 East, Gila and Salt River Base and Meridian.
1.5. Anticipated cost per meter. The total charge for each five-eighths-inch water meter to be
installed on the Subject Property is currently anticipated to be $360.00. This fee is in addition to
connection fees. The Applicant agrees to waive any reimbursements by the Town.
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
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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 Maran a 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 one year has passed since the date of this Agreement and the
Work has not begun, or if the Work is discontinued for a 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, layout, 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.
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.
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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.
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.
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.
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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.
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.
6.3. Consent required for assignment. Applicant may not assign this Agreement without the
prior written consent of the Town.
6.4. Cancellation for conflict of interest. This agreement is subject to A.R.S. 938-511, which
provides for cancellation in certain instances involving conflict of interest.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth
below their respective signatures.
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TOWN:
THE TOWN OF MARANA, an Arizona municipal corporation
By:
Ed Honea, Mayor
Date:
ATTEST:
Jocelyn C. Bronson, Clerk
ApPROVED AS TO FORM:
Frank Cassidy, Town Attorney
ApPLICANT:
Title Security Agency of Arizona as trustee for Trust # 910, an
Arizona corporation
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By: ~ \-S"~~~,, \:j-~ '''~''_\ ~', " . ~"'~,,~
Diane Davis, Trust Officer -. . ,
Date:
STA TE OF ARIZONA )
ss
County of Pima )
The foregoing instrument was acknowledged before me on 'ftb. 23 I 2lDLt by Diane
Davis, Trust Officer of Title Security Agency of Arizona, an Arizona corporation, on behalf of
the corporation.
My com .
Official eat
pir~TARY PUBLIC
STATE OF ARIZONA
ounty of Pima
REBECCA l MENUEY
~~~
Notary Public
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