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Home My WebLink AboutResolution 2020-088 Approving a Protected Facility Agreement for the Artesiano Water Main MARANA RESOLUTION NO. 2020-088 RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO SIGN A PROTECTED FACILITY AGREEMENT FOR THE ARTESIANO WATER MAIN WHEREAS in 2018, George F. Garcia and Graciela Z. Garcia (the "Garcias") paid for the Town to construct certain water infrastructure improvements along Artesiano Road to serve the land described in Exhibit A to the Warranty Deed recorded in the office of the Recorder of Pima County, Arizona, on February 7, 2018 at Sequence 20180380264 (the "Garcia Parcel"); and WHEREAS those water infrastructure improvements have the capacity to serve other new water customers in the same water pressure zone; and WHEREAS Town staff has negotiated a Protected Facility Agreement with the Garcias in order to provide them with fair-share reimbursement for their construction costs from other new water customers in the same water pressure zone; 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, that the Protected Facility Agreement attached to and incorporated by this reference in this resolution as Exhibit A is hereby approved and the Mayor is hereby authorized and directed to execute it for and on behalf of the Town of Marana, and the Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the agreement. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 18th day of August, 2020. i Mayor Ed I onea • ATTE. APPRO M AS TO FORM: /1"-- Cherry 1 -Cherry L. La son, own Clerk Fr.fassidy, Town Attorney A16& AZ 0007lsas.Docx/1 MARANA ESTABLISHED 1977 Marana Resolution No.2020-088 7/31/2020 10:02 AM DU EXHIBIT A TOWN OF MARANA ARTISIANO PROTECTED FACILITY AGREEMENT George F. and Graciela Z.Garcia THIS AGREEMENT(this"Agreement")is entered into by and between the TowN OF MARANA, an Arizona municipal corporation(the"Town"), and GEORGE F.GARCIA and GRACIELA Z.GARCIA, husband and wife(the"Applicant").The Town and the Applicant are sometimes collectively referred to as the"Parties,"each of which is sometimes individually 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("Marana Town Code Title 14"). B. The Applicant desires for the Town to provide water service to the land described in Exhibit A to the Warranty Deed recorded in the office of the Recorder of Pima County, Arizona, on February 7, 2018,at Sequence 20180380264(the"Garcia Parcel"). C. The Garcia Parcel is an approximately 4.7-acre parcel of land whose address is 7310 North Artesiano Road, located about 470 feet north of Ina Road and approximately 370 feet east of Artesiano Road and is outside town limits of the Town but within the Marana Water Depart- ment's Picture Rocks water service area. D. On April 4, 2018,the Applicant paid the Town$21,175.00 for the Town to install cer- tain water infrastructure improvements(the"Facility")in accordance with the required plans,spec- ifications, and materials as outlined and depicted in the Artesiano Rd. 6" Extension water plan, drafted by Tricon Contracting Inc. on March 14,2018 and approved by the Marana Water Depart- ment at the time the Applicant submitted payment on April 4,2020(the"Facility Plan"),which is on file with the Marana Water Department. E. The Town procured construction through City of Tucson Job Order Contract No. 171701, wherein construction costs were pre-determined. Tricon Contracting Inc. was the sole bidder and was therefore awarded the construction contract for installing the Facility. F. Upon completion,the Facility was connected to the Town water system. G. As constructed,the Facility includes elements and capacity sufficient to serve other new Town customers, and to that extent the Parties wish to provide for partial reimbursement to the Applicant in accordance with Marana Town Code section 14-4-3 (capacity requirements). H. The Marana Water Department presented the Applicant with a reimbursement plan that recognizes 17 parcels within the Z zone that could reasonably be served by the Facility,with a total reimbursement potential of$19,929.36 for the connection of 24 equivalent demand units, as de- fined in subparagraph 1.4.4 of this Agreement(EDUs),within the zone to the Facility at an over- sizing recovery charge rate of$830.39 per EDU(the"Reimbursement Plan"). 00070241,DOCX/3 - 1 6/18/2020 1:31 PM 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.The Facility 1.1.Installation of the Facility. The Town has installed the Facility depicted in the Facility Plan. 1.2.Payment of connection fees. Before any service connections are made to the Facility,the person or entity seeking the service connection shall pay to the Town the connection fees and any other fees required by Marana Town Code Title 14. 1.3.Anticipated cost per meter. The person or entity seeking installation of a meter from the Town shall pay all applicable fees and charges in effect at the time of the meter installation request. As of the effective date of this Agreement, the Town's fees and charges to install a three-fourths- inch water meter on the Garcia Parcel are: 1.3.1.Meter Install Fee: $400 1.3.2. Water Infrastructure Impact Fee: $4,110 1.3.3. Water Resource Development Fee: $4,575 1.4. Oversizing Recovery Charge. The Applicant hereby accepts the Reimbursement Plan. As a result,the Parties have determined that the service area for the Z zone will have sufficient capac- ity to reasonably serve an additional 17 parcels,constituting 24 EDUs, as a result of the Facility and after connection of the Garcia Parcel. Consequently,pursuant to Marana Town Code section 14-4-3 (C),the Town hereby establishes an"oversizing recovery charge"of$830.39 per EDU for connections within the service area for the Z zone whose capacity is made possible as a result of the Facility. For purposes of this paragraph, and in accordance with the Reimbursement Plan, all of the following apply: 1.4.1. The oversizing recovery charge shall be payable only for the first 24 EDUs in the service area for the Z zone or until the fifteenth anniversary of this Agreement, whichever occurs first.Based on the oversizing recovery charge of$830.39 per EDU,the Parties' current estimate of the Applicant's total potential reimbursement from the Town is$19,929.36. 1.4.2. The Town will reimburse the Applicant twice annually for constructed EDUs bene- fitted by the Facility. 1.4.3. The Applicant shall have a beneficial ownership interest in the service area for the Z zone for the period set forth in subparagraph 1.4.1 above sufficient to prohibit connection in that area unless and until the oversizing recovery charge is paid. 1.4.4. One EDU is a typical single family residence served by a five-eighths inch meter. EDU equivalencies for other uses and meter sizes shall be based on standard Town equivalency tables and calculations. 1.4.5. The number of EDUs subject to the oversizing recovery charge has been calculated assuming that the Z zone parcels will be served by three-fourths inch meters. If the parcels are served by larger or smaller meters,the number of EDUs required to pay the oversizing recovery 00070241.DOCX/3 -2- 6.'18/2020 131 PM charge shall be adjusted accordingly,based on standard Town equivalency tables and calcula- tions,and the"oversizing recovery charge"set forth in this paragraph 1,4 shall be re-calculated accordingly. 1.4.6. The Town makes no guarantee that the Applicant will receive the full amount of the potential reimbursement set forth in this Agreement. 2. Miscellaneous 2.1.Binding effect. This agreement shall be binding upon and inure to the benefit of the heirs, executors,administrators,successors and assigns of the Parties. 2.2. Consent required for assignment.The Applicant may not assign this Agreement without the prior written consent of the Town. 2.3. Cancellation for conflict of interest. This agreement is subject to A.R.S. § 38-511,which provides for cancellation in certain instances involving conflict of interest. [Signature page follows.] 00070241.DOCX/3 -3 - 6/18/2020 1:31 PM IN WITNESS WHEREOF,the Parties have executed this Agreement as of the last date set forth be- low their respective signatures. THE"TOWN": THE TOWN OF MARANA, an Arizona municipal corporation ATTEST: By: Ed Honea, Mayor Cherry Lawson, Clerk Date: APPROVED ..S TO FORM: /Cr Fra•Ifaassidy, Town Attorney THE"APPLICANT": By: t0.ta------- BY f�',1�'ltieez+ 4L dtA-/ George . Garcia Graciela Z. Garci Date: 7/(3 /. O61Date: 7-/3 ' 20 20 STATE OF ARIZONA ) SS County of Pima ) The foregoing instrument was acknowledged before me oJere t3, 2020, by G ge F. Garcia, husband of Graciela Z. Garcia, on behalf of the marital com nity. (Seal) d1 ._..,* LILLIAN AVENENTE a1`� I. NOTARY PUBLIC-ARIZONA COUNT( Nota itry Public MyCommii spy o21x°""$ STATE OFARIZOI�A')' — " ' — ' � �- - SS County of Pima ) The foregoing instrument was acknowledged before me on,1.a!Ir1t 13,2020,by Graciela Z. Garcia, wife of George F. Garcia, on behalf of the marital community (Seal) CA„3 LILLIANAVENENTENOTARY PUBLIC-ARIZNotary Public PIMA COUNTY My Commission Expires 12/10/2021 00070241.DOCX/3 -4 - 6/18/2020 1:31 PM