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HomeMy WebLinkAbout06/20/2006 Blue Sheet Release from Water Service Agreement TOWN COUNCIL MEETING INFORMATION TOWN OF MARANA MEETING DATE: June 20, 2006 AGENDA ITEM: 1.3 TO: MAYOR AND COUNCIL FROM: Frank Cassidy, Town Attorney SUBJECT: Resolution No. 2006-88: Relating to Water Service; releasing H. Lawrence Serra, the H. Lawrence Serra Family Revocable Trust dated 8/30/05, and Frank Serra from indemnity obligations contained in a water service agreement relating to water facilities in and near Ina Road. DISCUSSION On December 20, 2005, the Town Council approved Marana Resolution No. 2005-154, approv- ing and authorizing the Mayor to execute a water service agreement with several individuals for the construction of a six inch water main in and near Ina Road in the vicinity of Artesiano. Among other things, the water service agreement obligated each of the applicants (who are prop- erty owners receiving the benefit of the water line construction) to indemnify the Town for a pe- riod of two years for any problems or failures relating to the water main. The water main con- struction was completed in late 2005 and has been accepted by the Town. H. Lawrence Serra and Frank A. Serra, who are two ofthe signers of the water service agreement and owners of 40 acres at the end of Ina Road, have asked to be removed from any further obli- gations under the water service agreement, including any indemnity obligations. Although their property benefits from the water main (in fact, they have since hooked through a water line ex- tension to the six inch water main), the water main itself is located about 800 feet east of their property. The Serras are in the process of obtaining new title insurance, and have been informed by the title company that the water service agreement and the indemnity obligation under it will be a title exception under their policy unless the Town agrees to waive the obligation. The Water Department has reviewed the Serras' request for elimination of the obligations and has no objec- tion to it. RECOMMENDATION Staff recommends adoption of Resolution No. 2006-88, waiving the Serras' obligations under the water service agreement, including their indemnity obligation. SUGGESTED MOTION I move to adopt Resolution No. 2006-88. {00002/85.DOC I} FJClcds 5/30/06 MARANA RESOLUTION NO. 2006-88 RELATING TO WATER SERVICE; RELEASING H. LAWRENCE SERRA, THE H. LAWRENCE SERRA F AMIL Y REVOCABLE TRUST DATED 8/30/05, AND FRANK SERRA FROM INDEMNITY OBLIGATIONS CONTAINED IN A WATER SERVICE AGREEMENT RELATING TO WATER FACILITIES IN AND NEAR INA ROAD. WHEREAS, the Town Council adopted Marana Resolution No. 2005-154 on December 20,2005, approving and authorizing the execution of a Town of Marana agreement for construction of water facilities under private contract, which has been recorded at Docket 12711, Page 180, Pima County Recorder's Office ("the Water Service Agreement"); and WHEREAS, several individuals and entities are parties to the Water Service Agreement, all of whom are obligated under the Water Service Agreement to indemnify the Town of Marana for a period of two years for any defects relating to the water line installed pursuant to the Water Service Agreement; and WHEREAS, H. Lawrence Serra, an individual and as Trustee of the H. Lawrence Serra Family Revocable Trust dated 8/30/05, and Frank A. Serra, a married man, as his sole and separate property (the "Serras") are parties to the Water Service Agreement and own approximately 40 acres at 7602 W. Ina Road; and WHEREAS, the Serras have requested to be removed from the indemnity obligations so that it does not show up as a title exception on their property; and WHEREAS, the six inch water main constructed pursuant to the Water Service Agreement was completed in October, 2005, and has since been inspected and its dedication accepted by the Marana Water Department; and WHEREAS, no portion of the six inch water main constructed pursuant to the Water Service Agreement was constructed on the Serras' property; and WHEREAS, other parties, including the original contractor who installed the line, remain obligated to indemnify the Town for the water main; and WHEREAS, Town staff has reviewed the Serras' request and has no objection to it. {00002184.DOC /} FJC/cds 6/9/06 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the Serras and the Serras' property located at 7602 W. Ina Road (Pima County Assessor's Parcel No. 221-28-008B) are hereby released from any obligation under the Water Service Agreement including, without limitation, the indemnity provision contained in paragraph 6.1 of the Water Service Agreement. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 20th day of June, 2006. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney {00002I 84.DOC I} - 2 -