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HomeMy WebLinkAboutResolution 2003-057 water development agreement with flowing wells irrigation district F. ANN RODRIGUEZ, RECORDER RECORDED BY: PSG DEPUTY RECORDER 9394 PE2 SMARA TOWN OF MARANA ATTN.' TOWN CLERK 13251 N LON ADAMS RD MARANA AZ 85653 DOCKET: 12066 PAGE: 3348 NO. OF PAGES: 11 SEQUENCE: 20031090892 06/06/2003 RES 16:02 MAIL AMOUNT PAID $ 11.00 MARANA RESOLUTION NO. 2003-57 A RESOLUTION OF THE MAYOR AND TOWN COUNCIl., OF THE TOWN OF MARANA, ARIZONA, AUTHORIZING THE TOWN TO ENTER INTO A DEVELOPMENT AGREEMENT WITH FLOWING WELLS IRRIGATION DISTRICT FOR THE DEVELOPMENT OF ADDITIONAL INFRASTRUCTURE FACILITIES TO BENEFIT BOTH ENTITIES. WHEREAS, the Flowing Wells Irrigation District ("FWID") possesses an excess supply of renewable water; and WHEREAS, the Mayor and Council of the Town of Marana have determined that obtaining additional water from the FWID would benefit the Town and its residents, by increasing the Town's renewable water supply; and WHEREAS, the Mayor and Council have determined that, in order to gain access to excess water provided by the FWlD, certain infi'astructure must be developed; and WHEREAS, the FWID wishes to assist the Town in developing such infi-astrucmre; and WHEREAS, the Mayor and Council have determined that cooperating with the FWID in developing infrastructure to supply additional renewable water to the Town is in the best interest of the Town and its residents; and WHEREAS, the staff of the Town and the staff of the FWID have developed a Water Development Agreement, attached hereto as Exhibit "A" and incorporated herein by this reference, which will permit Town and the FWID to participate in irrfi:astmcture planning efforts and allow the Town to purchase the excess Central Arizona Project water from FWID. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, that the Mayor is authorized to execute the Water Development Agreement, attached hereto as Exhibit "A" and incorporated herein by this reference. Marana, Arizona Resolution No. 2003-57 Page 1 of 1 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this day of June, 2003. May~ ATTEST: APPROVED AS TO FORM: As Town Attorney and not personally Maraaa, Arizona R~oiu~ion No. 2003-57 Page 2 of 1 F. ANN RODRIGUEZ, RECORDER - RECORDED BY: GPL DEPU'.L ~ RECORDER 1008 PE2 SMARA TOWN OF MARANA ATTN: TOWN CLERK 13251 N LON ADAMS RD MARANA AZ 85653 DOCKET: 12081 - PAGE: 8280 NO. Ob PAGES: 10 SEQUENCE: 20031241256 06/27/2003 AG 16:59 MAIL AMOUNT PAID $ 10.50 WATER DEVELOPMENT AGREEMENT BETWEEN TOWN OF MARANA AND FLOWING WELLS IRRIGATION DISTRICT 1 , ~ :1.-: .....,. B Original 1 of 2 \() WATER DEVELOPMENT AGREEMENT BETWEEN TOWN OF MARANA and FLOWING WELLS IRRIGATION DISTRICT This Agreement is between the Town of Marana, an Arizona municipal corporation ("Town"), and Flowing Wells rrigation District, an Arizona municipal corporation ("FWID"), / effective this .27 day of ,2003. @) RECITALS A. The purpose of this Agreement is to provide for cooperation between the Town and FWID for the purpose of providing renewable water supplies to the parties' customers and to provide for cooperation in the development of infrastructure, including transmission mains, treatment plants, recharge facilities and other facilities which will mutually benefit the Town and FWID. B. The Town serves a service area which includes a rapidly growing area of the northwestern metropolitan Tucson area. The Town is in need of additional renewable water sources and anticipates construction of substantial additional infrastructure facilities in the near future to serve its customers. C. FWID serves a relatively small geographic area in northwest Tucson, which service area is substantially built out and which is not anticipated to experience any significant additional growth. D. FWID has excess renewable water supply capacity through a subcontract among o , , o the Central Arizona Water Conservation District ("CA WCD") and the United States. li-= -1- Therefore, the parties agree as follows: 1. Incoq>oration of Recitals. The foregoing recitals are incorporated into this Agreement. 2. DefInitions. 2.1 "Infrastructure": The physical plant and facilities including pipelines, treatment plants, pump stations and other physical facilities. 2.2 "Planned activities": The activities described conducted by the parties related to water and recharge. 2.3 "Recharge Program": A plan for putting water into the ground for subsequent recovery by physical means and/or to obtain credits authorized by law. 3. Infrastructure Planning. FWID and Marana will participate in infrastructure planning efforts for the delivery of Central Arizona Project ("CAP") water into the northwest portion of the Tucson Active Management Area, which planning efforts may also include the Metropolitan Water District ("Metro"), the Town ofOro Valley ("Oro Valley"), the U.S. Bureau of Reclamation ("USBR"), the Town and FWID. The planning may include proposed pipeline and pump station construction for the purposes of ultimate delivery of CAP water. In the future, planning may include a CAP treatment plant to be constructed in the northwest region and planning for possible terminal storage, which would be part of a separate process. This Agreement is limited to the planning, design and construction of pipeline and pumping ~ : .:. facilities anticipated to be required to deliver CAP water to Marana and FWID customers. :'"1: :::..: w 4. Infrastructure Construction and Operation. The Town's and FWID's fmancial participation in the planned activities within the Town is to be determined, but shall be based upon -2- ---~-,,~".,'-'''~~.~.,,-~. the following provisions: 4.1 For construction projects, in which FWID agrees to participate, FWID's costs of such Infrastructure shall be the cost of any facilities constructed specifically and solely for FWID's use, plus the increased costs for the upsizing of any shared facilities which are up sized to meet the needs and capacity requirements of FWID, including CAP related treatment and storage facilities. 4.2 FWID shall pay its proportionate costs of pumping, routine maintenance and operation of Infrastructure which are utilized to deliver water to FWID and reasonable administrative costs based upon the percentage of FWID's water delivered as it bears to the total amount of water delivered through said Infrastructure. 4.3 FWID shall pay its proportionate cost of repair, replacement of components and reconstruction of infrastructure which are utilized to deliver water to FWID and reasonable administrative costs based upon the percentage of FWID's capacity as it bears to the total capacity of the infrastructure. 5. Lease of CAP Water. FWID agrees to lease to the Town up to 4,354 acre feet of its CAP allocation for fiscal year 2002-2003. The amount of water delivered to the Town shall be determined at the Town's sole discretion, subject only to its availability for delivery as determined by CA WCD. 6. CAP Lease Price. The lease price for the FWID CAP leased water shall be the 1 total costs charged calculated on a per acre-foot basis to FWID by the Central Arizona Water o Conservation District in the year of delivery. The lease price shall include the cost of water and capital charges calculated on a per acre-foot basis attributable to the delivered leased water subject o , , L -3- _..._--.._---""""'"'-~~.--..~._..~~_.,.._.~.._,.,~.._,,_.,.._---_._- to the lease for the year in which the lease delivery occurs. 7. CAP Lease Duration. It is the intention of this Agreement to allow the Town to continue to lease FWID's CAP allocated water on a year-to-year basis, subject to approval of the Town Council and the FWID Governing Board. 8. CAP Water Allocation Transfer. FWID will cooperate and assist Town in securing a permanent transfer of a portion of FWID CAP water allocation as hereinafter described. FWID agrees to make available for permanent transfer to the Town until June 30, 2007, up to an aggregate of 1,500 acre feet of CAP water and to cooperate to allow the Town to apply within said time to CA WCD and the Arizona Department of Water Resources ("ADWR") for jurisdictional and required approval by these entities to permanently transfer up to an aggregate of 1 ,500 acre feet of FWID's CAP allocation to the Town. If the Town makes an application for transfer of up to 1,500 acre feet of CAP from FWID as provided in this Paragraph 7, the Town shall be entitled to pursue approval, total or incrementally, of such transfer so long as the Town pursues all necessary approvals with reasonable diligence. 9. Reimbursement. At such time as CA WCD, USBR and ADWR approvals of FWID CAP allocation transfers are received, the Town shall thereafter reimburse FWID's capital investment in the transferred CAP allocation, together with CAP associated interest, administrative, engineering and legal costs actually incurred to the extent payment of such costs are approved by CA WCD for reimbursement. .- "'- 10. Recharge. FWID intends to apply to ADWR for an Assured Water Supply (as defmed by Arizona law) at such time as FWID determines such action to be in its best interest. Within one year after receiving regulatory designation of an Assured Water Supply, FWID will w -4- begin a Recharge Program. 11. Recharge Program Cost. The Town agrees to assist FWID in establishing its Recharge Program, as well as future water recovery programs, at the lowest possible cost to FWID consistent with allocated cost principles. 12. Use of Water Transmission Facilities. The Town agrees to allow FWID to transport CAP water through future CAP transmission facilities constructed pursuant to this Agreement, including facilities jointly owned and operated by the Town and third parties to the extent of Town's control over such facilities, for the purpose of delivery of CAP water to FWID's service area. The Town shall retain control over all of its facilities, including those facilities to which FWID has contributed to the construction costs so long as Marana provides delivery of FWID water as provided herein. 12.1 Scheduling of Deliveries to FWID. The Town shall have the right to determine and operate the schedule of delivery of CAP and recharge water to FWID so long as such deliveries are made on a daily basis. CAP and recharge water deliveries may be made during off hours for purposes of obtaining favorable power costs or to minimize required facilities capacity. The Town agrees to charge FWID only the actual prorated cost of power, maintenance, administration and operation based upon the relationship of the quantity of FWID CAP and recharge water as it bears to the total quantity transported through the facilities. 13. Recharge Recovery Cooperation with CMID. The Town will assist FWID to work 1 2 n with CMID and the Marana/CMID Trust to establish a program for recharge recovery. 14. Execution of Documents. FWID agrees to cooperate fully and execute such documentation as may be necessary to complete the annual lease of CAP water and one or more 8 -5- ._--'---.....,--""""---."~.,._,<,,.".."..,.~,~~..,. .".,~". applications by the Town for approval of the permanent transfer of a portion up to 1,500 acre feet of FWID's total CAP allocation to the Town. 15. Cooperation. The parties agree to cooperate to the extent that such cooperation is not inconsistent with the best interests of the parties' customers to carry out provisions of this Agreement. FWID agrees to support, cooperate and take all reasonable actions required to facilitate the Town's annual lease of CAP water and its application(s) for permanent transfer of a portion of its total allocated CAP water. If, through no fault of FWID, all or any part of the Town's application(s) for transfer is denied by any authority having jurisdiction, such denial shall not constitute a breach by FWID nor excuse Marana from any of its obligations hereunder. 16. Amendments. This Agreement may be modified only by written amendment signed by the Town and FWID. Amendments shall be executed in duplicate with the same formalities as this Agreement. Executed duplicate copies of any amendment shall be provided to both parties. 17. Requirements of Law. Each provision of law and any terms required by law to be in this Agreement are part of this Agreement as if fully stated herein. 18. Termination for Cause. The Town or FWID may terminate this Agreement at any time with cause after giving forty-five (45) days written notice of termination, unless such cause is cured by the other party within such forty-five (45) day period from notice. The notice shall be in writing delivered to the authorized representatives of the Parties and shall specify the alleged breach and state the effective date of termination. 19. Assignment. Neither party may assign or delegate any right or obligation under this (} Agreement without the express written prior consent of the other party. ~ . 2 . = -6- --"--_..._-_.,~..~-- ~ 20. Term. This Agreement shall become effective on the date signed by the parties and shall remain in effect for fifty (50) years or until terminated under paragraph 18 or by mutual agreement of the parties. 21. No Indemnity. Neither party to this Agreement agrees to indemnify the other party or hold harmless the other party from liability hereunder. 22. Party Representatives. Each party to this Agreement shall designate a representative. Either party to this Agreement may designate a new representative by filing a notice with the other party without amending this Agreement. Notices, correspondence, invoices, payments and reports from the Town shall be sent to: Superintendent Flowing Wells Irrigation District Attn: W. David Crockett 3901 N. Fairview Avenue Tucson, AZ 85705-2699 Notices, correspondence, invoices and payments from FWID shall be sent to: Manager Utilities Department Town of Marana Attn: Brad DeSpain 12775 N. Sanders Road Marana, AZ 85653 23. No Relationship. The parties agree that there is no partnership, joint venture, business enterprise, agency or similar relationship between the Town and FWID, and this Agreement creates no such relationship. f': ::.i..F 24. Severability. The provisions of this Agreement are severable to the extent that any ;::j ~ ... provision or application held to be invalid shall not affect any other provision or application of the -7- Agreement, which shall remain in effect without the invalid provision or application. 25. Audit of Records. Each party shall retain and shall contractually require each contractor employed by a party to retain all data, books and other records supporting any costs incurred, where reasonable and necessary ("Records"), for a period of five (5) years after completion of the Agreement. All Records shall be subject to inspection and audit at reasonable times upon written request. 26. Cancellation for Conflict of Interest. Pursuant to A.R.S. ~ 38-511, the State of Arizona, its political subdivisions or any department or agency of either, may, within three (3) years after its execution, cancel this Agreement without penalty or further obligation if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the State of Arizona, its political subdivisions or any of the departments or agencies of either is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of or an agent to any party to this Agreement in any capacity or a consultant to any party of this Agreement with respect to the subject matter of this Agreement. A cancellation made pursuant to this provision shall be effective when the other party receives written notice of the cancellation, unless the notice specifies a later time. 27 Non-Discrimination. Both parties shall comply with Executive Order 99-4, which mandates that all persons, regardless of race, color, religion, sex, age, national origin or political affiliation, shall have equal access to employment opportunities and all other acceptable State and :2 Federal employment laws, rules and regulations, including the Americans with Disabilities Act. Both parties shall take affirmative action to ensure that applicants for employment and employees are not discriminated against due to race, creed, color, religion, sex, national origin or disability. -8- 28. Applicable Law. This Agreement shall be governed and interpreted by the laws of the State of Arizona. TOWN OF MARANA FLOWING WELLS IRRIGA TION DISTRICT :;: ~J)ir /~/ ~~/. 4-'".., ..~/ By: t."-' , ,~ " .... _ Its: S;uf/"''Z' JCj ~.-.;J ,,~..,....-- APPROVE. f!?: C--D~ A:.~o Marana /~~Iff,Ct/)d~tJ\ ForB(owing Wells/Irrigation District 1:\filesldocs\FLOW01\780371\DOClC85036.WPO 8 -9- 9