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HomeMy WebLinkAboutResolution 2004-060 agreement for potable and non potable water facilities for san lucas developmentMARANA RESOLUTION NO. 2004-60 RELATING TO WATER SERVICE; APPROVING AND AUTHORIZING THE EXECUTION OF THE AGREEMENT BETWEEN THE TOWN OF MARANA AND BCIF GROUP FOR CONSTRUCTION OF POTABLE AND NON-POTABLE WATER FACILITIES AND PROVISION OF WATER UTILITY SERVICE FOR THE SAN LUCAS DEVELOPMENT. WHEREAS, BCIF Group intends to facilitate the development of property to be called San Lucas (the "Property"); and WHEREAS, BCIF Group desires to arrange for the provision of water service to and within the Property in connection with development; and WHEREAS, Marana is willing to provide water service to and within the Propertyin accordance with Chapter 14 of the Marana Town Code and in accordance with the terms of the Agreement; and WHEREAS, BCIF Group agrees to the construction of water facilities for the Property; 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, AS FOLLOWS: SECTION 1. The Agreement for Construction of Potable and Non-Potable Water Facilities and Provisions of Water Utility Sendce between the Town of Marana and BCIF Group, attached as Exhibit A to and incorporated here by this reference, for construction of water facilities, is hereby authorized and approved. SECTION 2. The Mayor is hereby authorized and directed to execute, and the Town Clerk in hereby authorized and directed to attest to, said Exhibit A for and 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 B Y THE MAYOR AND COUNCIL O F THE TOWN OF MARANA, ARIZONA, this 18th day of May, 2004. ATTEST: ocelyn ~Bronson, Town Clerk APPROVED AS TO FORM: F//~'~Frank Cassidy, Town Attorney ~x...) ~'''~ R~O 040518 San Lac~ RSO 2004-60 2 APM 05/12/2004 TOWN OF MARANA AGREEMENT FOR CONSTRUCTION OF POTABLE AND NON-POTABLE WATER FACILITIES AND PROVISION OF WATER UTILITY SERVICE THIS AGREEMENT FOR CONSTRUCTION OF POTABLE AND NON- POTABLE WATER FACILITIES, is entered into by and between the TOWN OF MARANA, ARIZ~(;~A, an A~zona Municipal Corporatio, n., ("Marana") and B C I F GROUP, LLC, ~in-~J~dzona Limit .e~l. Liability Company (the Developer'). Marana an(3 the Developer are sometimes collect,vely referred to as the "Parties". RECITAL WHEREAS, the construction of 'Water Facilities' necessary to provide water utility service to the Developer's Property, which is more specifically described .o..n Exhibit ,A" attached to and made a part of this agreement (hereinafter the "Property ); and WHEREAS, the Developer owns the Property which is the subject to this Agreement; and WHEREAS, the Developer is desirous of arranging for the provision of water service to and within the Property in connection with development; and WHEREAS, Marana owns and operates a municipal water system, and is experienced in the provision of water service; and WHEREAS, Marana i s willing t o supply w a, ter t o t he Developer i n accordance with the Municipal Code of Marana and the terms of this Agreement. COVENANTS NOW, THE.REFORE, the Developer warrants it is legally qualified to do business in the State of Arizona and in consideration of the Recitals set forth above and the mutual covenants, conditions, and agreements set forth below, the Parties agree as follows: San Lucas Water Sen, ice Ag~ment05/10/2004 DEFINITIONS 1.1 1.2 Water Facilities: The public water facilities and appurtenances to be constructed under this Agreement and located within public rights-of-way or dedicated easements, and which, upon completion by Developer and inspection and acceptance by Marana, are to be deeded to Marana for operation and maintenance. Water Facilities include but are not limited to water mains, valves, hydrants, pipelines, booster pumps, wells, reservoirs, telemetry, all electrical and other panels, and all other water facilities necessary for potable and non-potable water service to the Property and appurtenant to the municipal water supply system of Marana. Work: The design and construction of the Water Facilities as provided in this agreement. CONSTRUCTION OF WATER FACILITIES 2.1 Developer shall design and construct, at Developer's own expense, the *Water Facilities in accordance with approved Plans and Specifications. TheAIpproved Plans and Specifications shall (i) conform to the design sta~rds of the City of Tucson Water Department and the Marana Town Water Code, (ii) be sized to and capable of serving the water needs including fire protection for the maximum authorized development on the Property (including all commercial and noncommercial development to be served by Marana), and (iii) designate the point of interconnection referred to in Paragraph 2.6, and (/v) be prepared by a qualified registered. professional engineer. A copy of the approved On-Site Plans ano Specifications for the Water Facilities is attached as Exhibit "B." (a) The Plans and Specifications shall include, at a minimum: (i) Developer shall convey to Marana one (1.) or two (2) potable water well(s), per Phasing Outline Exhibit "C" attached, with each well having a production capacity of not I.ess than sev.en hundred 700 gallons per minute, which, Deve!op. er.w.a, rra~s, equals or exceeds the water production capacity Incluo,ng T, re protection requirements needed to serve the Property when fully developed. Developer will drill one (1) o[.two (2) ne..w well(s) to a depth mutually agreed upon in .~t!n.g (cu. rre.m~y estlm.ate~., at seven hunqred feet (700'), ana s~.een ,n. cn..es (16') ~n diameter within the sc, me_ned interval, as snown ~n me Construction Diagram attached as Exhibit 'F". In any event, the well(s) to be conveyed to Marana shall be capable of equaling or exceeding the production capacity specified above. The well(s) will be conn_ected with a twelve-inch (12") fill line to the on site storage tank. (ii) Developer shall design and construct at Developer's own expense a separate non-potable distribution system throughout the Property, in complete accordance with Non- Potable distribution Systems plan as submitted by the San Lucas Water Service Agreement~5/10/2004 Developer and approved by Marana. The non-potable system shall be constructed so as to clearly distinguish the non- potable system from the potable system and be capable of camjing untreated water from any source, such as CAP, ~roundwater, surfaco water, effluent or reclaimed water. eveloper shall design and construct at Developer's own expense an interconnecfion of their on site non-potable system to the Marana existing six inch (~6') main, from the Amole Wellsite at Adonis Road, using an eight inch (8") main, (iii) Developer shall design and construct at Developer's own expense a n interconnection of their on site twelve-inch (1.2") main to the Marana existing six inch ("6") ,pc{table. ma~ u.s. lng an eight inch ('8") main per Exhibit 'C Phas!n.g.u.u.a.m.e. ~ ~.' Appurtenant.facilities to interconnect the non-potable wa[er System to the Amole Wellsite water .system at location specified In Exhibit 'G'. Unless other~..se mutually ag. re.e.d and set forth on the Plans and Specifications the non-potable ~ interconnection will terminate at the Marana Amole Wellsite ..... ~'~water system. T here shall be no interconnection of potable and non-potable systems. (iv) Developer shall have at each phase, adequate storage for fire pro..tection needs of the Water System and at the Property's build-out which will be equal to or exceed the estimated water usage on the hottest day of the summer, together with two (2) hours of fire flow at one thousand seven hundred fifty (1750) gallons per minute. If Marana is to serve any commercial development on the Property, then three (3) hours of fire flow at one thousand fwe hundred (1500) gallons per minute is needed. A portable self-contained generator of sufficient size to operate the well and 1750 gpm booster station fire pump. shal/be installed to meet fire code requirements at the start o~ the final phase per Exhibit 'C' Phasing Outline, in the .event. that Marana is not in possession of one or more oT saia generators at the start of the final phase. (b) Developer shall comply with Article 10, Chapter 2, Title 45, Arizona Revised Statutes governing w~l drilling, such as securing, permits, use of liconsed well drillers, filing well Io~..s and meeting well standards. Developer shall p?f.o, rm ~vell testing conforming to the American Water Works Association .S. tanda.rds (AWWA) for pump tests and shall conduct water quality testing conforming to the standards of the Arizona Department of Environmental Quality (ADEQ) and Pima Coun..~ of Department of Environmental Quality (PCDEQ) for quality certification of new source wells. Water quality tests shall be sampled during the end of the longest continuing pumping period. San Lucas Water Se~,tce Agreement05/10/2004 3 2.2 2.3 2.4 2.5 2.6 2.7 (c) Developer and Marana recognize that not all Water Facilities may be necessary to service the initial phase or phases of the development proposed for the Property. The phasing is attached to this Agreement as Exhibit "C." The Plans and Specifications for the Water Facilities shall be reviewed and approved in writing by Marana, ADEQ and PCDEQ before issuance of any Water Facilities construction permits by Marana. No work shall commence un~JI Marana has issued a Water Facilities construction permit. The water production and storage facilities as specified in the Plans and Specifications shall be (i) constructed, (ii) issued a cerfifi.cat, e. to operate, by ADEQ or PCDEQ, and (iii) accepted by Marana prior to Marana issul.ng. Developer a Certificate. of Occupancy for any residential or. c?.mmemla~ unit, subject to the phasing as provided for in Paragraph 2.1(c} a~ove The Water Facilities shall be constructed by a contractor properly licensed by the state of Arizona and in accordance with the Plans and · Specifications. The location in the ground and manner of installation shall comply with the requirements of all public agencies having authority to prescribe regulations with respect to the location and manner of ir~st{~ation. Applicant shall obtain all necessary permits and licenses, pay all fees and comply with all laws, ordinances and regulations related to the public health, safety, welfare and construction of the Water System. All materials shall be new and both the workmanship and mate.rials shall be of good quality and shall meet the combined s..pecifi..cafi.o.ns .and. standards of (a) AWWA, (b) ADEQ, (c) PCDEQ, (d) al~,..appli.caDm, lo. ca,! regulatory agencies, and (e) the plans and specifications ueveloper- snaIl repair, or remove and replace, at Developer's own expense and at Marana's convenience, workmanship or materials which do not meet the described criteria or which prove fo be defective at any time within one year from the date of the final acceptance of Applicant's work by Marana. Upon completion by Developer and acceptance by Marana, of the Water Facilities, Developer shall dedicate the Water Facilities and Water System to Marana, without cost to Marana, and Marana shall thereafter operate and maintain the Water Facilities as an integral part of its municipal water utility. The W. ater Facilitie.s. constructed pursuant to this Agreement shall provide a point of connection fo Marana's existi.ng water facilities at the point directed by Marena for Service Area requirements. Alter Marana begins Drovidin(J water service to the Property, the Developer shall comply wit~ all'require~ents and obligations mposed on water customers by the Marana Town Cede, including without liroitation the requirements and obligations set forth in Town Cede Articles 14-6 and 14-7 as they may be amended from time to time. Developer shall comply with the inspection and testing requirements of ADEQ, PCDEQ, and Marana for the facilities to be constructed hereunder, PROVIDED HOWEVER, said requirements shall be reasonable and shall San Lucas Water Sen, ice AgreemenIO5/10/2004 4 2.8 not cause Developer unwarranted delays in the ordinary course of construction. Developer shall pmmptiy notify Marana when the Water Facilities under construction ara ready for inspection and testing; and upon 24 hours written notice to Marana, Marana shall theraafter inspect the sam.e promptly after being so notified. For the purpose of inspection and testingof everything covered by this ^greement, or performance of the Work, Developer shall give Marana and any inspectors ap. pointed by it free access to the co.n. struction site and facilitate the proper ,nspection of such m ateriais, i nciud,ng p rocurament d ara, a nd s hall furnish them with full information about the work whenever requested. The approval of the Work by an inspector shall not relieve Developer from its .o. bligaflon to comply m ell respects and complete the work in compliance with the plans and specifications and in accordance with the best practices. Developer agraes that no inspection by or on behalf of Marana shall relieve Developer from its obligation to do and complete the Work in accordance with this Agreement. .At any time befora the final completion and acceptance of the Work, if any part of the Work is found to be defective in any way or in any way .fails fo conform to this Agreement, Marana is 'heraby exprassly authorized to raject or ravoke acceptance of such def~ive or deficient Work and require Developer to repair, replace, or rn~a~k'~ ~ on such defective Work. Marana. spe~.'..cel~ .mse_wes.,..t. he right to withhold approval and to forbid connection or me water ~-ac, mes constructed pursuant to this Agreement to Marana's w..a. ter utility system unless they have been constructed in accordance with the Plans and Specifications and ara satisfactory to Marana upon inspection and testing. Developer agrees that it will promptly co..r[ect all defects.and, deficiencies in construction, materials, and workmansnip upon request oy Marana. If Developer makes (or .d...esiras to make) any material changes to the design of the Water Facilities as shown on the Plans and Specifications, Developer shall obtain Marana's prior written consent, raview material changes or modifications, pay Marana a raasonable fee, and pay the additional cost of construction associated with the material changes or modifications. 2.9 2.10 Within thirty (30) days after completion of construction, Developer agrees to furnish Marana, copies of all Developer, subcontractor, vendor and all others invoices for all engineering and other services, materials purchased, materials installed, construction performed, equipment provided and all else done direclJy in connection with construction pursuant to this Agreement at the actual cost_thereof. Developer shall obtain to the satisfaction of Marsna lien waivers and releases from all third parties providing labor, materials or services hereunder. Developer h era.by i rrevocably.waives a ny r i.ght.s it m ay n.o.w have or which it may acqu~ra during the course of th~s Agreement to record liens against Marana or its property. Dev. elope.r s..hall ..also pay; satisfy and discha~e all mechanics', material men's ana o~ne.r i!ens, .an~. all claims, obligations and liabilities which may be as.series ag. ams[ Marana or its property by reason of, or as a rasult oT, any ,acts or omissions of Developer, its employees, agents, servants, suppliers, or San Lucas Water Service 2.11 2.12 2.13 2.14 subcontractors, or the employees, agents, servants or suppliers of its subcontractors, in connection with or relating to the performance of this Agreement. Within thirty (30) days after completion of construction, Develo.per shall fumish Marana, 'as-built' drawings in both written and ele~[~umc format certified as to correctness by an engineer registered in the State of Arizona showin.g, the locations of a II water mains, hydrants, valves, a nd service connections to all structures served from the water facilities constructed pursuant to this Agreement. All activities associated with or comprising the Work required under this agreement shall be undertaken by the Developer at its own risk until the Water Facilities are fully completed and accepted by Marana. In case of accident, desbuction or injury to the Water Facilities before final completion and acceptance of the Water Facilities, the Developer shall own expense replace or. ' promptly and at ils . . repar the Water Facilities . injured~ damaged or destroyed to the satisfaction of Marana. Dev~ipper hereby assumes all of the responsibility and liability for injury or de~at~ of any perso.n, or loss for damage to any property .contribute~. to or caused by the negl~ence of Developer, its agents, servants or employees in the execution of and performance of the activities and Work contemplated or in connection with this agreemenL Accordingly, Developer shall indemnify, appear, defend and hold Marana and its elected officials, employees, agents and consultants (the "Town") harmless from and against claims (except and to the extent that the same are caused or contributed to by the Town) or expenses, including which penalties and assessments, to they or any of them may be subject to by reason of such injury, death, loss, ciai.m., penalty, assessment or damage, and in case any suit or other proceeding which shall be_brough.t on account thereof, Developer shall assume the defense of the/own at Developer's expense and shall pay all judgments rendered therein. (a) Marana hereby assumes all of the responsibility and liability for injury or death of any person, or loss for damage to any property contributed to or caused by the negligence of the Town caused by Marana's interconnection of the Water Facilities to any off-site water facilities, and, in that event, Marana will indemnify, appear and defend and hold Developer harmless from and against claims, (except and to the extent that the sam_e is caused or contributed to by Developer, ils employees, agents and consultants) or expenses, including penalties and assessments, fo which they or any of them may be subject to by reason of such injury, death, loss, claim, penalty, assessment or damage, a_nd in case any suit or other proceeding which shall be brought on account thereof, will pay all judgments rendered therein. Developer shall procure and maintain all of the insurance policies described below and shall cause Marana to be endorsed as an "additional insured" thereon, including insurance covering the obligations assumed by San Luces Water Service Agreement05/10/2004 Developer under subparagraphs (a), (b) and (c) of this paragraph. Coverages shall be in amounts .adequate to cover the risk commensurate with the Work. Certificates evidencing the insurance and coverage of Marana as 'additional insured' shall be provided to Marana prior to the start of the work. (a) (b) Worker's compensation and occupational disease and disability compensation in the benefit amounts as required by the laws and regulations of the State of Arizona; Comprehensive general liability insurance, including operations and protective liability coverages. When the work to be performed requires blasting, Developer's insurance shall specifically cover that risk; and 2.15 2.16 (c) ~Comprehensive automobile liability insurance covedng all owned and'non-owned automobiles and trucks used by or on behalf of Developer, in connection with the work. For.me purposes of this paragraph, the provisions of Marana Code §14-3- 7~ any successor or amendatory provisions are incorporated as though set forth in full hero and Developer, is the Customer. Developer shall provide to Marana recordable easements and required surveying over, under, and across all portions of the main and pipeline routes as may be. necessary to serve each parcel or lot within the Propa,rty. If, development of the Property involves road construction, all roaos ano drainage ways will be brought to grade by Deveiopar pdor to the commencement of the Work. No pavement or curbs shall be installed prior to completion of the Work. Developer shall install, to Marana specifications, automated meters, sensors, and the other necessary equipment for automated meter roading for all water services on the Property. For the purposes of this paragraph, the provisions of Marana Code §14-3-6 and any successor or amendatory provisions are incorporated as though set fortl? in. full hem.. and De.v..elo..p .er is the Customer. Provided that Developer ms Jn compmmance w~[n ires subparagraph, Marana agrees .to wa'.w.e any water .connection or meter installation fees for new connections within the Property. 2.17 No permanent structuros (i.e., masonry walls, fences, etc.) shall be constructed on or through a water easement without the expross written consent of Marana. For the purposes of thi~ paragraph, the provisions of Marana Code §14-3-7 and any successor or amendatory pm. visions .a. ro incorporated heroin as though set forth in full here and Devemoper ms [ne Customer. 2.18 All materials installed, Water Facilities constructed and equipment arOVided by Developer in connection with ?re Work .and.th? completed c ifie.s, as installed shall, become the some propany oT Mam..na u.p..o.n Marana s written acceptance of the same, and full legal and equitable title thereto shall then be vested in Marana, free and clear of any liens, without San Lucas Water Service Agreemenl05/10/2004 7 the requirement of any written document of transfer to Marana or further acceptance by Marana. Developer shall execute or cause to be executed promptly such documents as Marana may request to, evidence such conveyance of good and m emhantable title to said Wa[er ~- acilities Tree and clear of all liens. 2.19 Upon request by or direction from Marana, Developer shall, at Developer's sole cost and expense, make an~. and all alterations to any existing water distribution system, either on-site or off-site, necessitated by paving, drainage, or other improvements caused by the development of the Property. 2.20 Developer shall pay for all ....c~.sts of operating, repairing, replacing and maintaining the Water Facilities that exceed the revenues generated throu.clh M arana's provision o f water service t o the Property, until a rate analysis methodology ha.s been adopted,_ m....u~u, ally accepted~, .and performed by Marana showing that the Water ~-acllifies .and W,a~.er ~ .ys.[em are financially self-sustaining. Marana shall perform sucn analysis no[ less than annuall~ and inform Developer regarding the results thereof. 2.21 Ma~a shall collect connection .c. harges and installation charges for each potable and non-potable connection made on the Property in accordance with Marana Town Code, Paragraph 14-7-2, as amended from time to time. In consideration of Developer's construction of the Water Facilities and Water S)~stem necessary for Marana to p..rovide water service to the aha Property, if developer is not the home broider, Marana will reimburse Developer a portion of the connection charges actually collected by Marana for each initial potable connection made within the Properbj as follows: (a) (b) (c) Five Hundred Dollars ($500~) for each 5/8" x 3/4" meter and larger size meters up to and including two-inch (2") meters; The connection charge actu,a, lly collected by Marana for each met.er larger than two in..ches (2), less costs incurred by. M.a. rana. making the connection (such as meter cost, labor, ma[enals, etc.), but not included within a separate installation charge actually collected by Marana for the installation of the connection. In no event shall this reimbu, mement obligation (i) app!y ,to .a.n,y installation and connection .fe~. collect_ed during any penoo wn!cn Developer is. in breach of this Agreement, (ii)..e_x__c,e_e~!_..a ..c~..,mulafive, amount of Fwe Hundred Thousand Dollars [~t)uu,uuu) [iii) exceeo the amount actually paid to Marana as conney-'t, ion charges, less any cost actually expended by Maran. a for materials and labor (e.g., the cost of the meter, labor, materials, etc.) above installation charges collected by Marena as a condition to Marana making potable water service available for the first time to the property line of each parcel for which the c~.nnecfion charge_ was .paid or (iv) apply to any non-potable meters installed on the ~ropeny. San Lucas Water Service Agreement05/10/2(X)4 (d) Marana shall make reimbursement payments due to Developer pursuant to this Subparagraph 3.4 on or before January 31 and July 31 of each year for the period ending December 31 and June 30 respectively. The obligation to makl~ reimbursements will automatically terminate on the tenth (10"') anniversary of this Agreement, subject to the continuing obliDation to pay to. Developer any reimbursements accrued, but unpaid, as of the [enth (10) anniversary. SECURITY REQUIREMENT 3.1 In accordance with Arizona Revised Statutes and the Marana Municipal Code, this Agreement is contingent upon Developer fumishi .ng. Mar. ana. with such security as may be appropriate ano necessary, as aeterm,nso by the Marana Utility Director, ~ assure Mara.n.a. that Developer will perform the work and all other obl~jalions now e~3sfing or accruing under this Agreement. WATER SERVICE; WATER RIGHT 4.1 Fdi~'~e purposes of this paragraph, the provisions .of Marana Cede §14-5 and any successor or amendatory provisions are ,ncorporated herein as though set forth in full here and Developer is the Customer. Marana shall be under no obligation to provide water utility serwca to Developer or the Prope .r~/until each and every condition of this Agreement has been met and satisfied. Marena agrees that upon receipt of all applicable approvals and satisfaction of all of Developar's obligations under this Agreement that it will then provide water utility service as requested to and within the Prope.r.ty in accordance with its rules, regulations and ordinances govermng such water service, as such rules, regulations and o.rdinances may, from time to time, be amended. Commencement of serv~.e to the Property by Marena shall not waive any obligation of Developer under this Agreement nor preclude Marana from withholding., or t..ermin.afing...wa.t, er service to Developer, the Property or any pomon mereor un[,~ me Developer is in full compliance, with this Agreement. 4.2 Developer shall assign to Marana, as a condition of Marana providing water utility service, every portion of its I.rriga~. n and TYl~e..1 N.o,nim.'gation Grandfathered Groundwater Rights, as mose terms are am,nea o.y law, as may be appurtenant to lands cony. eyed and dedicated to Marana in connection with the devel0~nent of the P_roparty. Developer shall to execute and deliver all forms necessary to affect the transfer of these water rights to Marana concurrently with such dedication, pursuant to the projects phasing. 4.3 Marana will provide the State ofArizona I~esignafion of Assumd Water Supply status for the Property upon acceptance of the Property into Marana's service area by the Central Arizona Groundwater Replenishment District (CAGRD). Developer shall execute any agreements and file such covenants and restrictions, as Marana may deem appropriate to include the Property in Marsna's CAGRD service 9 San Lucas Water Se;vice Agreement05/10/2004 Sm area. Without limiting in any manner Marana's right to specify the terms and conditions governing future water service to ~e property, but, as a condition precedent to the property's right to mcerve water service, fm.m Marana, the owner(s) of the Property shall pay all grounowa[er replenishment fees and costs incurred in providing water service to the Property. Marana, in its sole discretion, may d.et?.rmme the method of recovering such replenishment fees and costs, including, without limitation, through the prop.erty tax b. ill, the water bills, and/or the impact fees of those customem Iwing with,n the Property. TERMINATION OF AGREEMENT 5.1 5.2 If Developer does not complete all of the work within two (2) yearn, f.m..m the start of each phase, as agreed on in Exhibit 'C' he.reo~, A.clreement shall be null and void, canceled and of no further Torce ano erect: except to the extent Marana in its sole discretion either (!) e~en.ds this fi.me period in writing or (ii) accepts a. ll. or a p?rti.on .of....me water Facilities, in which case this Agreement snail remain ,n tu, mrce an(3 'effect for the extension period or as to the Water Facilities accepted by th .'y~wn; provided, however, no reimbursements will be paid pursuant to Sal~l~ragraph 3.4 hereof. This agreement is subject to A.R.S. § 38-511, which provides for cancellation of agreements in certain instances involving conflicts of interest. Cancellation under this Paragraph by Marana shall be effective when written notice from Marana is received by Developer unless the notice specifies a later time. In addition to the right to cancel as provided herein, Marana may recoup any fee or commission paid .or du.e .to any person significantly involved in initiating, negoti.aflng,_secu, nng, ma.?.mg or creating this Agreement on behalf of Marana nora ueve~oper ans[ng as the result of this Agreement. INDEMNIFICATION 6.1 With respect to the Water Facilities and Water System constructed pursuant to this Agreement, for a .period of one (1) year following Marana's acceptance of the facilities to be dadicated to Marana hereunder, Developer shall indemnify, appear, defend and hold harmless Marana and ils employees from and against any an.d all c!.aims, o.r ca..uses of action which may be asserted against Mam, n.a m.r.n.ag~,gen.[ aes,gn, or, con.struction of the Water Facilities, and from_ c,a~ms m..at ma.y. De .esse~.ea aga,nst Marana for inadequate fire protection capacmj ans,ng ;rem ;ne negligence of Developer or its employees or agents. San Lucas Water Sewice Agreement05/10/2004 10 NOTICE 7.1 Communications hereunder shall be sent to the parties at thefollowing addresses or to such other addresses as the parties may advise in writing: To Marana: With copy to: and copy to: To Applicant: C. Brad DeSpain Utilities Director 5100 N. Ina Rd. Tucson, AZ 85743-9746 Mr. Frank Cassidy, Esq. ~Town Attorney 13251 N Lon Adams Rd ~ Marana, AZ. 85653 Martinez & Curtis, P.C. Attn: William P. Sullivan 2712 N. 7th Street Phoenix, Arizona 85006-1090 With a copy to: Se SEVERABIMTY 8.1 If any portion of this Agreement is determined to be invalid, such invalidity shall not render void any remaining portions of this Agreement, which can be given effect, and they shall remain in force and effect. 10. ASSIGNMENT _ 9.1 This Agreement shall be binding upon and beneffi the administrators, executors, successors and assigns of the parties. heirs, MISCELLANEOUS 10.1 This instrument (i)implementSanPdaraBgra(~h 12.~ of the Development Agreement between Marena Group, LLC dated , (the "Development Agree.me.n.t"), (iD c~.ntain, s the. sole a nd only agreement of the parties relating [o me subject matter oT 11 San Lucas Water Service Agreement0~10/2004 10.2 10,3 10.4 10.5 10.6 10.7 10.8 10.9 this Agreement, and (iii) correctly sets forth the rights, duties and obligations of each to the other as of its date. Any prior agreements, promises, negotiations or representations relating to the subject matter of this Agreement not expressly set forth in this Agreement are of no force and effect. This instrument contains the entire agreement between the parties, and it shall not be amended, altered or changed, except by written agreement signed by the parties. All executed agreements shall remain on file in Marana offices and shall be made available for public review upon request. This Agreement is entered into under and shall be governed by the laws of the State of Adzona. This Agreement has been arrived at by negotiation and shall not be construed against any party to it or against the party who prepared the last 'draft. Ca~ns and headings are for index purposes only and shall not be used on construing this Agreement. THIS AGREEMENT SHALL BECOME EFFECTIVE AND BINDING UPON APPROVAL BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA. The remedies provided in this Agreement in favor of Marana shall not be deemed its exclusive remedies but shall be in addition to all other remedies available to the Parties at law or in equity. [No waiver by Marana of any breach by Developer of any provision of this Agreement n or a ny f allure b y M arana t o insist on strict performance by Developer of any provision of this Agreement shall in any way be construed to be a waiver of any future or subsequent breach by Developer or bar the right of Marana to insist on strict performance by Developer of the provisions of this Agreement in the future.] Developer is an independent contractor and not an agent or employee of Marana. This Agreement, and all rights and ob, ligaflons under this agreement, shall be subject to all provisions of the Municipal _Code of the Town of Marana and all applicable rates, fees, charges and tariffs of the Marana Water Utility as approved by the Mayor and Council of the Town of Marana now or as they may b? changed and approved by the Mayor and Council of the Town of Marana in the future. San Lucas Water Sen, ice Agreement~5/10/2004 12 IN WITNESS W HEREOF, t he p aries h ave hereunto s et t heir h ands t he d ay and year first above written. TOWN OF MARANA By: Bobby Sutton Jr. Its: Mayor APPROVED AS TO FORM By: - Town Att0mey DEVELOPER ATTEST: By: Town Clerk By: Its: ACKNOWLEDGMENT STATE OF ARIZONA ) ) SS. COUNTY OF ) of This instrument was acknowledged before me this day of ,2004, by as as Developer. day of My Commission Expires: Notary Public San Lucas Water Sewice Agreement05/lO/2004 EXHIBIT "A" LOCATION MAP OF THE DEVELOPMENT WITH LEGAL DESCRIPTION [Please attach the location map of the development behind this cover sheet.] San Lucas Water Sef~ce ,a~gree~05/tO/2004 14 EXHIBIT "'B" INCORPORATION BY REFERENCE OF THE PLANS AND SPECIFICATIONS OF THE WATER UTILITY FACILITIES TO BE CONSTRUCTED HEREUNDER - Reference is hereby made to those certain 24" X 36" engineering dm.wings, of. th.e Water Facilities Plans. Copies of such engineering drawing[ may .De re.vJe.weo.a.t. Maranas offices. Such engineering drawings may be more specirJcally oescriDeo as m,ows: [Please provide a detailed description of the Plans and Specifications including the date and the code number of the Plans and the name of the Engineering firm, which prepared the same.] 15 San Lucas Water Sen'ice Agreeme~O~lO/2004 EXHIBIT "C" PHASING ON-SITE WATER DISTRIBUTION SYSTEM Phase I Phase 1 shall consist of Blocks 1, 2, 3, 8, 9, and 10. The quantity of residential lots in phase 1 is estimated to be 456 units. Well #1 Booster Plant and fire ramp storage, as described heroin, shall adequately supply phase 1. Potable and non-.po, table water distribution systems shall be in place within the spine roads according to pla, n,s, a.cce, pted by M,a.ra,na. Interconnection per Exhibit G snail be comple[eo. Phase 2 Phase 2 sha)l consist of blocks. 4, 5, 6, and 7. The qua~of residential lots ,n phase 2 is estimated to be 248 units. Well #2 shall be required prior to occupancy of the flint unit in phase 2, unless Marana has possession m' a wall which satisfies all Marana mC!.luimments. Potable and non-potable water distribution systems shall be in place within the spine roads according to plans accepted by Marana Fire Protection. .Phase 3 2. 3. 4. Phase 3 shall consist of Blocks 11 and 12. The quantity of residential Io~ in phase 3 is estimated to be 135 units. No additional well or storage improvements required. Potable and non-potable water distribution systems s._h. all be in place within the spine roads according to plans accepted by Marana rim Protection. San Lucas Water Service Agreemenl05/tO/2004 16 EXHIBIT "D" ITEMIZED BREAKDOWN OF THE ESTIMATED COST OF THE WATER UTILITY FACILITIES TO BE CONSTRUCTED HEREUNDER [Please .attach a line-by-line itemized breakdown of The Estimated Cost of the Water Utility Facilities to be installed in accordance with this Agreement behind this cover sheet] 17 San Lucas Water Service AgmementO~dlO/2004 EXHIBIT "E" ACTUAL COST OF WATER FACILITIES [To be Attached Forthwith Upon Issuance of Same.] San Lucas Water Service Agreement05/10/2004 18