HomeMy WebLinkAboutResolution 2006-158 tangerine farms road improvement district final plans
RESOLUTION NO. 2006-158
RELATING TO THE TANGERINE FARMS ROAD IMPROVEMENT DISTRICT;
CONSIDERATION AND POSSIBLE ADOPTION OF A RESOLUTION ACCEPTING
FINAL PLANS AND SPECIFICATIONS FOR AWARDING THE CONSTRUCTION
CONTRACT FOR, THE WORK DESCRIBED IN RESOLUTION NO. 2006-75 WITH
RESPECT TO TOWN OF MARANA, ARIZONA, TANGERINE FARMS ROAD
IMPROVEMENT DISTRICT; AUTHORIZING A CONTRIBUTION BY THE TOWN
FOR SUCH WORK; AND APPROVING THE ASSESSMENT DIAGRAM AND THE
METHOD OF ASSESSMENT FOR SUCH IMPROVEMENT DISTRICT; AND DE-
CLARING, FOR PURPOSES OF SECTION 1.150-2 OF THE FEDERAL TREASURY
REGULATIONS, OFFICIAL INTENT TO BE REIMBURSED FROM THE PROCEEDS
OF THE SALE OF BONDS WITH RESPECT TO SUCH DISTRICT IN CONNECTION
WITH CERTAIN EXPENDITURES FOR SUCH WORK.
WHEREAS, the furnishing of all labor, materials, transportation, services and equipment
for the "Work" defined in Resolution No. 2006-75, adopted by the Mayor and Common Council of
the Town of Marana, Arizona, on June 6, 2006 (the "Resolution of Intention"), has been ordered;
and
WHEREAS, at the time of adoption of the Resolution of Intention preliminary plans and
specifications that showed the location and type and character of the Work and the engineer's
estimates of the cost and expenses thereof were prepared and filed with the Clerk of the Town of
Marana, Arizona (the "Town"); and
WHEREAS, upon completion of final plans and specifications for the Work (including any
addendums with respect thereto, the "Final Plans and Specifications") and the filing thereof with
the Clerk of the Town, sealed proposals were received pursuant to an "Advertisement for Bids and
Notice of the Passage of the Resolution Ordering the Improvement and Inviting Sealed Proposals
for the Improvement For Town of Marana, Arizona Tangerine Farms Road Improvement District"
(the "Notice"), which was duly published as provided by law, for the Work; and
WHEREAS, the proposal of Hunter Contracting Co. (the "Contractor") has been
determined to be the lowest and best bid of a responsible bidder for the kind of material and
specifications set forth in the Final Plans and Specifications at the unit prices named for the Work
in such proposal on file in the Office of the Clerk of the Town, and such proposal in all respects
complies with the terms of the Notice; and
WHEREAS, the Mayor and Council of the Town have determined it is necessary to
indicate intent to certain reimbursement in connection with another portion of the Work to be done
in advance and paid for by the Town for federal income tax purposes; and
WHEREAS, MMLA Psomas, the engineers for Town of Marana, Arizona,
Tangerine Farms Road Improvement District (the "District"), have prepared and presented to the
Mayor and Common Council of the Town (1) duplicate diagrams of the property contained within
the District (the "Diagram") and (2) a written summary of the method of assessment to be applied
with respect to the Diagram and the assessment of the benefit to be received by the Work in the
form attached hereto as Exhibit "A" (the "Methodology Summary");
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF MARANA, ARIZONA, THAT:
Section 1. The Final Plans and Specifications are hereby accepted and approved.
Section 2. The proposal of the Contractor for furnishing of certain labor, material,
transportation, services and equipment for the Work is hereby accepted, and the construction
contract for the Work (the "Construction Contract") is hereby awarded to the Contractor.
Section 3. In accordance with the terms of the proposal submitted by the
Contractor, the Construction Contract shall be in the amount of $23,459,459.00. (Such amount
exceeds the amount established in the Estimate (as such term is defined in the Resolution of
Intention) and, as such, the Town shall contribute not more than $748,357.26 to the costs of the
Work. )
Section 4. All actions and proceedings heretofore taken relating to the District and
the awarding of the Construction Contract to the Contractor are hereby ratified and affirmed.
Section 5. The Clerk of the Town is hereby authorized and directed to prepare and
execute the "Notice of Award of Construction Contract for the Construction of the Work For Town
of Marana, Arizona Tangerine Farms Road Improvement District" in substantially the form
attached hereto as Exhibit "B" and to cause such notice to be published as provided by law.
Section 6. The Superintendent of Streets of the Town is hereby authorized and
directed to execute and deliver the Construction Contract for and on behalf of the Town.
Section 7. This Resolution is a declaration of intent of the Town to reimburse
expenditures for a government purpose that will be originally paid from a source other than the
Bonds (as such term is defined in the Resolution of Intention) with proceeds of the Bonds. The
expenditures will be for prepayment of utility relocation costs necessary with respect to the Work
made by the Town after October 3, 2006, in an amount not to exceed $139,600, which are capital
expenditures (being any cost of a type that is properly chargeable to a capital account (or would be
so chargeable with a proper election) under general federal income tax principles). The maximum
principal amount of the Bonds (including the reimbursement bonds for such purposes) is described
in the Estimate (as such term is defined in the Resolution oflntention).
On the date of this Resolution, the Mayor and Council of the Town have a
reasonable expectation (being that a prudent person in the same circumstances would have based
on all the objective facts and circumstances) that it will reimburse such original expenditures with
proceeds of the Bonds. (Official intents have not been declared by the Town as a matter of course
or in amounts substantially in excess of the amounts expected to be necessary. Moreover, the
Town does not have a pattern (other than in extraordinary circumstances) of failure to reimburse
actual original expenditures covered by official intents.)
This Resolution shall be included as of the date hereof in the publicly available
official records of the Mayor and Council of the Town, such records being maintained and
supervised by the Clerk of the Town, being the main administrative office of the Town, and shall
remain available for public inspection on a reasonable basis.
Section 8. The Diagram and the method of assessment as summarized in the
Methodology Summary, as prepared and presented to the Mayor and Council, are hereby
approved.
2
Section 9. The Clerk of the Town is hereby authorized and directed to certify that
the Diagram was approved by the Mayor and Council of the Town on the date of this Resolution,
and after such certification, the Clerk of the Town is hereby authorized and directed to deliver the
Diagram to the Superintendent of Streets of the Town.
Section 10. Any resolutions or parts of resolutions in conflict with the provisions of
this Resolution are hereby repealed.
3
PASSED, ADOPTED AND APPROVED by the Mayor and Council of the Town
of Maran a, Arizona, this 3rd day of October, 2006.
Ed{{
ATTEST:
APPROVED AS TO FORM:
........(71.:<..... ...
dy, Town Atto
Exhibit A - Methodology Summary
Exhibit B - Notice
327628591.1 7/24/2006
4
CERTIFICATION
I hereby certify that the foregoing Resolution No. 2006-158 was duly passed and
adopted by the Mayor and Council of the Town of Marana, at a regular meeting held on October
3,2006, and that a quorum was present.
5
EXHIBIT A
TOWN OF MARANA, ARIZONA
TANGERINE FARMS ROAD IMPROVEMENT DISTRICT
METHODOLOGY SUMMARY
Assessment Methodolo2V Summary
for
Town of Marina. Arizona
Tangerine Farms Road Improvement District
The improvement district consists of approximately 1,500 contiguous acres adjacent to the
proposed improvements. The acreage is composed of vacant real property and one commercial
operation. Vacant land both north and south of the proposed improvement and adjacent to
interstate 10 are intended for commercial development. Vacant land in the western and north
central portions of the improvement district and referred to as Gladden Farms has zoning
entitlement for development as a master planned community of residential and commercial
properties. The south central portion of the district is a sand and gravel operation. The property
within the district is controlled by five property owners.
In apportioning benefit for the roadway improvements to the district properties, a two step process
is followed. First, the cost of improvements that benefit a specific property, not the district in
general, will be assessed to the benefiting property. Second, the cost of general roadway
improvements will be distributed to district properties based upon their respective frontages
adjacent to the proposed Tangerine Road and Tangerine Farms Road.
As an entitled, mixed-used master planned development, the frontage based assessment to those
portions of Gladden Farms within the improvement district is divided among their residential and
commercial parcels. A cost per lot charge is established using the number of lots shown on the
final plates) or if a final plat has not been recorded based upon four lots per acre. Total frontage
cost is then divided by the estimated total number of lots to determine a per lot unit cost.
Residential lots being similar in size are judged to benefit to a similar extent and are to be
assessed a similar amount. This amount, estimated at $6,000 - $7,000 per lot, compares favorably
to the Town's Northwest Transportation Impact Fee. The district assessment, except that portion
associated with utility upgrades, is creditable against the residential development fee liability for
the project. In the commercial portion of the project the cost per lot charge will be converted to
an equivalent per acre assessment which is estimated at $24,000 - $28,000 per acre.
[PE Seal]
District Engineer
A-I
EXHIBIT B
TOWN OF MARANA, ARIZONA
TANGERINE FARMS ROAD IMPROVEMENT DISTRICT
FORM OF NOTICE OF AWARD
NOTICE OF AWARD OF CONSTRUCTION CONTRACT
FOR CONSTRUCTION OF WORK FOR
TOWN OF MARANA, ARIZONA TANGERINE
FARMS ROAD IMPROVEMENT DISTRICT
Pursuant to the provisions of Sections 48-571 through 48-619, both inclusive,
Arizona Revised Statutes, as amended, NOTICE IS HEREBY GIVEN of the following: The
Mayor and Council of the Town of Marana, Arizona (hereinafter the "Town"), in public session
on October 3, 2006, opened, examined and publicly declared all bids offered for the furnishing of
all labor, material, transportation, services and equipment for the "Work" initiated by Resolution
No. 2006-75 (the "Resolution of Intention"). Thereafter on October 3, 2006, the Mayor and
Council of the Town awarded a contract for the construction of the Work (the "Construction
Contract") to Hunter Contracting Co. (the "Contractor"), who submitted the lowest and best bid of
a responsible bidder for the kind of material and specifications set forth in the plans and
specifications for the Construction Contract for the Work at the unit prices named for the Work in
such bid on file in the office of the Clerk of the Town. The aggregate amount bid by the
Contractor on the Construction Contract, when the amounts per unit are extended against the
quantities set forth in the engineers' estimate, is $23,459,459.00. The engineers' estimate for such
portion of the Work was $23,326,900.15. (An amount necessary to make up such difference shall
be contributed by the Town.)
The Mayor and Council of the Town reserve the right to rescind the award of the
Construction Contract if it is unable to provide funding for the Construction Contract or if, for any
reason, the amount available after the sale of the hereinafter described improvement bonds is less
than the amount necessary to pay the Construction Contract.
If, because of pending or threatened litigation concerning anyone or more parcels
subject to assessment with respect to the Work as hereinafter described, the Town and the
Contractor receive a written opinion of Bond Counsel stating that improvement bonds cannot be
issued against such parcel or parcels, the Town may then cause the Construction Contract to be
modified to exclude from the Construction Contract some or all of the Work which will benefit
the parcel or parcels in question. The filing of a certificate and request that bonds not be issued
against any parcel pursuant to Section 48-597, Arizona Revised Statutes, as amended, may be
deemed to be threatened litigation.
The Mayor and Council of the Town have determined that improvement bonds
will be issued and delivered to represent the construction cost and all of the incidental costs of the
Work, including engineering, printing, advertising and posting and preparation of proceedings.
Such improvement bonds shall be issued and delivered under the provisions of Title 48, Chapter
4, Article 2, Arizona Revised Statutes, as amended, by the Town, but payable only out of a
special fund collected by the Town from assessments levied and assessed against the property
included within the district described in the Resolution of Intention in not to exceed 25 annual
installments from the assessments of $25.00 or over remaining unpaid as of the date of said
improvement bonds. The improvement bonds payable out of the first installment collected shall
B-1
be payable on the first day of January next after the collection of the first installment of the
assessments can be made under the provisions of Title 48, Chapter 4, Article 2, Arizona Revised
Statutes, as amended, and on the first day of January of each year thereafter until all are paid.
Said improvement bonds shall bear interest at a rate of not to exceed eight percent (8%) per
annum. Interest will be payable on the first day of January and July of each year.
Any owner, or any other person having an interest in any lot, piece or parcel of
land situated within the above described district, who claims that any of the provisions, acts or
proceedings relating to the Work are irregular, defective, illegal, erroneous or faulty, may file
with the Town Clerk, 11555 West Civic Center Drive, Marana, Arizona 85653-7007, within 15
days from the date of the first publication of this Notice, a written notice specifying in what way
said acts or proceedings are irregular, defective, illegal, erroneous or faulty; if no such notices are
filed, the Superintendent of Streets will enter into the Construction Contract with the Contractor
to provide the Work at the unit prices specified in said bid.
DATED this 3rd day of October, 2006.
(~!} ~~~!y.~. ~:}~~?~~~~..
Marana Town Clerk
PUBLISH: Twice in the Daily Territorial.
MAIL: One copy to the winning bidder.
B-2