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HomeMy WebLinkAbout10/03/2006 Blue Sheet Tangerine Farms Road Improvement District TOWN COUNCIL MEETING INFORMATION TOWN OF MARANA MEETING DATE: October 3, 2006 AGENDA ITEM: J. 3 TO: MAYOR AND COUNCIL FROM: James DeGrood, Assistant Town Manager SUBJECT: 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; approving the assessment diagram and the method of assessment for such improvement district; and declaring, 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. DISCUSSION On September 19, 2006, the Town opened bids for the Tangerine Farms Road Improvement District. Three bidders submitted bids ranging from $23,459,459.00 to $24,458,557.70. Hunter Contracting was low bidder. The improvements proposed for the district include a four-lane divided roadway with curbs, a storm drain, bike lanes, a multi-use path and median landscaping. The project will also include both potable and non-potable water mains, a pedestrian underpass at the new Gladden Farms Park and a traffic signal at Lon Adams Drive. This project, including design, construction, construction surveillance, district formation and administration costs, and capitalized interest was estimated to cost $29,630,000 at the adoption of the Resolution of Intention to form the improvement district June 3, 2006. The project cost, based upon the low bid is now $29,830,563.85. The difference between the estimated project cost and the bid project cost is $200,563.85 or less than 1 % of the project cost. The attached draft resolution accepts the plans and specifications for the project, awards the work to Hunter Contracting, authorizes a Town Contribution towards the project for the project costs over that allowed by Resolution 2006-75 and the Development Agreement with Vistoso Overland LLC., and approves the Assessment Diagram and Assessment Methodology. The project consultant team will be present to answer any questions. ATTACHMENT Resolution No. 2006-158 (Tangerine Farms Road Resolution of Intention) Page 1 of2 JRD '--""~-"-'~'-'-----'---""'-"'''''''''~-~'''''''''''~'''''~'''''''''"'--.~''''.,.~'.. Draft resolution. An updated copy of the resolution will be provided to the Council prior to the Council Meeting. This updated resolution will contain all final assessment amounts, as calculated by our consultants. RECOMMENDATION Staff recommends adoption of Resolution No. 2006-158, approving the A ward of Work for the Tangerine Farms Road Improvement District. SUGGESTED MOTION I move to approve Resolution No. 2006-158. Resolution No. 2006-i58 (Tangerine Farms Road Resolution of intention) Page 2 of2 JRD DRAFT 09/26/06 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 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 of Intention). 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. 2 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. 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 '~_'_"'~".,~.'_<O~.~_ '.'-'""''''''~'~-""""",,,,",,,-~''~,,,,,,,,"...,~,,",,,,,~,,,__,..._,_~.,.~.~,,c~,,,_~ PASSED, ADOPTED AND APPROVED by the Mayor and Council of the Town of Marana, Arizona, this 3rd day of October, 2006. ATTEST: Ed Honea, Mayor Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney ATTACHMENTS: Exhibit A - Methodology Summary Exhibit B - Notice 327628591.1 7/24/2006 4 _-...,.".......,.._'"~..,.'-,~.,-_,.~',_""......"""""'".~....,"'N<<,',,_,..~,~""..,".~.,"'""""..._,"', 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. Jocelyn C. Bronson, Town Clerk 5 EXHIBIT A TOWN OF MARANA, ARIZONA TANGERINE FARMS ROAD IMPROVEMENT DISTRICT METHODOLOGY SUMMARY Assessment Methodolof!v Summarv for Town of Marana. Arizona Tanf!erine 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 plat(s) 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-l EXHIBIT B TOWN OF MARANA, ARIZONA TANGERINE FARMS ROAD IMPROVEMENT DISTRICT FORM OF NOTICE OF A WARD 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. (~~.! !?~~! ~. ~'. .~~?J?:~!?~.. Marana Town Clerk PUBLISH: Twice in the Daily Territorial. MAIL: One copy to the winning bidder. B-2