HomeMy WebLinkAboutResolution 2020-113 Authorizing Reconciliation Agreement for Water Facilities for the Preserve at Twin Peaks MARANA RESOLUTION NO. 2020-113
RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO SIGN A
RECONCILIATION AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES
UNDER PRIVATE CONTRACT FOR THE PRESERVE AT TWIN PEAKS SUBDIVISION
BETWEEN THE TOWN OF MARANA AND LENNAR ARIZONA, INC.
WHEREAS the Town of Marana adopted Resolution No. 2020-025 on March 3, 2020,
approving and authorizing the Mayor to sign an agreement entitled "Town of Marana Agreement
for Construction of Water Facilities under Private Contract—The Preserve at Twin Peaks
Subdivision" (the "Preserve at Twin Peaks WSA"), which was recorded in the office of the
Recorder of Pima County, Arizona, on March 6, 2020, at Sequence 20200660162; and
WHEREAS the Town anticipates accepting the water infrastructure construction work in
the near future. The developer is now satisfied with the actual cost of the work and does not
anticipate the cost will change even though the work has not yet been fully accepted by the Town;
and
WHEREAS the actual cost of the work constructed pursuant to the Preserve at Twin Peaks
WSA was higher than contemplated when the Preserve at Twin Peaks WSA was entered into; and
WHEREAS Town staff has negotiated a Reconciliation Agreement for Construction of
Water Facilities under Private Contract for The Preserve at Twin Peaks Subdivision to increase
the"oversizing recovery charge"payable pursuant to the terms of the Preserve at Twin Peaks WSA
to reflect the actual cost of the Work; and
WHEREAS the Mayor and Council find that the terms and conditions of the Reconciliation
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 Reconciliation Agreement for Construction of Water
Facilities under Private Contract for The Preserve at Twin Peaks Subdivision 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 sign 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.
00072390.DOCX/1
Resolution No.2020-113 - 1 - 9/17/2020 10:22 AM DU
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA,this 6th day of October, 2020.
14/ 1=t141,, .../c,1/4._,
Mayor Ed Honea
ATT: APPROVE AS TO FORM:
Cherry La son, own Clerk Cass'•; Town Atto
A1P6&
MARANA AZ
ESTABLISHED 1977
00072390.DOCX/1
Resolution No.2020-113 - 2 - 9/17/2020 10:22 AM DU
EXHIBIT A
TOWN OF MARANA
RECONCILIATION AGREEMENT FOR CONSTRUCTION
OF WATER FACILITIES UNDER PRIVATE CONTRACT
The Preserve at Twin Peaks Subdivision
THIS RECONCILIATION AGREEMENT(this "Reconciliation Agreement") is entered into by and
between the TowN OF MARANA,an Arizona municipal corporation (the "Town"), and LENNAR ARI-
ZONA,INC.,an Arizona corporation (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. The Parties entered into an agreement entitled "Town of Marana Agreement for Con-
struction of Water Facilities under Private Contract—The Preserve at Twin Peaks Subdivision"
recorded in the office of the Recorder of Pima County, Arizona, on March 6, 2020, at Sequence
20200660162 (the"Preserve at Twin Peaks WSA").
B. Among other things,pursuant to Marana Town Code section 14-4-3 (C),paragraph 1.10
of the Preserve at Twin Peaks WSA established an "oversizing recovery charge" of$442.45 per
equivalent demand unit ("EDU") based on the Applicant's then-anticipated costs of the "Work,"
as defined in paragraph 1.1 of the Preserve at Twin Peaks WSA.
C. The anticipated cost of the Work at that time was $186,269.50, as set forth in Recital G
of the Preserve at Twin Peaks WSA.
D. The Town anticipates accepting the Work in the near future. The Applicant is now sat-
isfied with the actual cost of the Work and does not anticipate the actual cost of the Work will
change even though the Work has not yet been fully accepted by the Town.
E. The Parties now desire to reconcile the"oversizing recovery charge"payable to the Ap-
plicant pursuant to the terms of the Preserve at Twin Peaks WSA to reflect the actual cost of the
Work.
AGREEMENT
Now,THEREFORE, in consideration of the foregoing premises and the mutual covenants set
forth in the Preserve at Twin Peaks WSA and in this Reconciliation Agreement, the Parties hereby
agree as follows:
1. Amendment of oversizing recovery charge. The Parties agree and acknowledge that the
Applicant's actual cost of completing the Work was $270,609.37. Accordingly, pursuant to Ma-
rana Town Code section 14-4-3 (C),the"oversizing recovery charge"established under paragraph
1.10 of the Preserve at Twin Peaks WSA is hereby modified and increased to $642.78 per EDU
for connections within the B zone service area whose capacity is made possible as a result of the
Work.
00071510.DOCX/4 - 1 - 9/22/2020 10:23 AM
2. No further amendments to the actual cost. In light of Recital D, the Parties hereby agree
that that no further amendments to the Preserve at Twin Peaks WSA shall be made that are related
to the actual cost of the Work or to the oversizing recovery charge amount.
3. Confirmation of remaining terms of the Preserve at Twin Peaks WSA. Except as ex-
pressly modified by this Reconciliation Agreement, all other provisions and limitations set forth
in the Preserve at Twin Peaks WSA,including without limitation those pertaining to the oversizing
recovery charge, remain in place and are unchanged by this Reconciliation Agreement.
4. Cancellation for conflict of interest. This Reconciliation Agreement is subject to A.R.S.
§ 38-511, which provides for cancellation in certain instances involving conflict of interest.
IN WITNESS WHEREOF,the Parties have executed this Reconciliation Agreement as of the last
date set forth below their respective signatures.
THE"TOWN":
THE TOWN OF MARANA, an Arizona municipal ATTE
corporation /
Cherry Laws.nCl-rk
By:
Ed Honea, Mayor APPROVED • 0 Fo
Date: MITA/ /�
Are
Gbit �
Cassidy, Fe Attorne
THE"APPLICANT":
LENN• ' ARIZONA,INC.,an Arizona corporation
By: - ( �7
Its: 1-.
Date: 10 ( ( ( 2-0
STATE OF ARIZONA )
SS
County of Pima )
The foregoing instrument was acknowledged before me on O 17)tw (, )02)by
66lJ I L) I l-`-07 , as V0 (" 4�ll /K Of LENNAR ARIZONA,
INC.,an Arizona corporation, on behalf of the corporation.
(Seal) (�
'curt NICOLE CANTALICIO Notary Public
•e
7,:„ Notary Public
A A•State COUNTYAnzona
•`�- , Commission#574572
+�►cted► Expires January 18,2024
00071510.DOCX/4 -2- 9/22/2020 10:23 AM