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HomeMy WebLinkAboutResolution 2022-074 Approving and Authorizing the Mayor to Sign a Public Improvement Participation Agreement with Mandarina South, LLC MARANA RESOLUTION NO. 2022-074 RELATING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE MAYOR TO SIGN A PUBLIC IMPROVEMENT PARTICIPATION AGREEMENT WITH MANDARINA SOUTH, LLC FOR THE CONSTRUCTION OF MANDARINA DRAINAGE UPSIZING IMPROVEMENTS AS PART OF THE TANGERINE ROAD WIDENING PROJECT WHEREAS the Town has entered into a design contract with Psomas, Inc. for the design of the Tangerine Road widening project between Interstate 10 and Dove Mountain Boulevard/Twin Peaks Road, Town of Marana Project No. ST098 (the "Road Project"); and WHEREAS Mandarina South, LLC ("Mandarina") owns approximately 49 acres of land located northeast of the Interstate 10 and Tangerine Road traffic interchange bearing Pima County Assessor's Parcel numbers 218-49-003C, 218-49-003D, 218-49-003E, 218-49-004A, 218-49-004B, 218-49-007E, and 218-49-007F (the "Subject Property"); and WHEREAS Mandarina soon plans to construct drainage channels on and around the Subject Property, and to accommodate Mandarina's drainage needs, Mandarina needs Marana's Road Project to include a wider drainage channel along Tangerine Road and two upsized concrete box culverts (the "Mandarina Drainage Upsizing"); and WHEREAS Town staff has negotiated an agreement with Mandarina to assure payment of all costs associated with the construction of the Mandarina Drainage Upsizing as part of the Road Project; and WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of the citizens of Marana to enter into the public improvement participation agreement for the construction of the Mandarina Drainage Upsizing as part of the Road Project. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the public improvement participation agreement with Mandarina South, LLC for the construction of the Mandarina Drainage Upsizing as part of the Road Project, in substantially the form attached to and incorporated by this reference in this resolution as Exhibit A,is hereby approved,and the Mayor is authorized to sign it for and on behalf of the Town of Marana. 00082078.DOCX/1 Resolution No.2022-074 - 1 - IT IS FURTHER RESOLVED that the Town Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, conditions and objectives of the agreement. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 12th day of July, 2022. vi Mayor Ed Honea ATTE,T: APPROVED AS TO FORM: 411 .' Cherry L. Lai o , Town Clerk Jane " rall, Town Attorney frasza MARANA AZ ESTABLISHED 1977 00082078.DOCX/1 Resolution No.2022-074 - 2- Exhibit A to Marana Resolution No. 2022-074 PUBLIC IMPROVEMENT PARTICIPATION AGREEMENT TOWN OF MARANA,ARIZONA This Public Improvement Participation Agreement (this "Agreement") is made and entered into by and between MANDARINA SOUTH, LLC ("Mandarina"), an Arizona limited liability company, and the TOWN OF MARANA ("Marana"), an Arizona municipal corporation. Mandarina and Marana are sometimes collectively referred to in this Agreement as the"Parties," either of which is sometimes referred to as a"Party." RECITALS A. Marana has entered into a design contract with PSOMAS,INC. ("Psomas") for the design of the Tangerine Road widening project between Interstate 10 and Dove Mountain Boulevard/Twin Peaks Road,Town of Marana Project No.ST098(the"Road Project"). B. Mandarina owns approximately 49 acres of land located northeast of the Interstate 10 and Tangerine Road traffic interchange bearing Pima County Assessor's Parcel numbers 218-49-003C, 218-49-003D,218-49-003E,218-49-004A,218-49-004B,218-49-007E,and 218-49-007F and referred to in this Agreement as the"Subject Property." C. Mandarina soon plans to construct drainage channels on and around the Subject Property, and to accommodate Mandarina's drainage needs, Mandarina needs Marana's Road Project to include a wider drainage channel along Tangerine Road and two upsized concrete box culverts(the"Mandarina Drainage Upsizing"). D. Design of the Road Project is currently underway. The Town anticipates procuring a construction manager at risk("CMAR")to construct the Road Project at the appropriate time. E.The Parties believe that the most economical and least disruptive way to accomplish the prompt construction of the Mandarina Drainage Upsizing is for the Parties to arrange to have its design done by Psomas in connection with the design of the Road Project, and its construction to be completed with construction of the Road Project by Marana's CMAR. F. Psomas has provided the Parties with a proposed price of$23,350.00 for the design of the Mandarina Drainage Upsizing.Additionally,Psomas has provided the Parties with an estimate for construction of the Mandarina Drainage Upsizing of approximately$73,120.00. A true and correct copy of Psomas'proposal/estimate is attached to and incorporated in this Agreement as Exhibit A. G.The purpose of this Agreement is to facilitate Marana's design and construction of the Mandarina Drainage Upsizing as part of the Road Project with design and construction funding provided by Mandarina. AGREEMENT Now, THEREFORE, based on the foregoing recitals, which are incorporated here as the intention of the Parties in entering into this Agreement,the Parties agree as follows: 00081920.DOCX/1 6/20/2022 MANDARINA/MARANA TANGERINE ROAD PIPA -1- Exhibit A to Marana Resolution No. 2022-074 1. Depiction of the Mandarina Drainage Upsizing. The Mandarina Drainage Upsizing depiction attached as Exhibit B shows the nature and extent of the work to be done by the CMAR pursuant to this Agreement, which Marana and Psomas shall incorporate into the Road Project design. 2. Grant of right of entry and temporary construction easement.Mandarina hereby grants Marana,Psomas and Marana's CMAR a right of entry and temporary construction easement over the Subject Property, to accommodate construction of those portions of the Mandarina Drainage Upsizing located on the Subject Property. 3. Mandarina's obligation to pay design and construction costs for the Mandarina Drainage Upsizing. Mandarina shall pay all design and construction costs associated with the construction of the Mandarina Drainage Upsizing. Marana and Psomas agree that the design costs for the design of the Mandarina Drainage Upsizing are anticipated to be$23,350.00,as itemized and attached to this Agreement as Exhibit A. Marana and Psomas agree that the construction costs for the construction and installation of the Mandarina Drainage Upsizing are anticipated to be $73,120.00,as itemized and attached to this Agreement as Exhibit A.Marana and Psomas anticipate that the construction and installation of the Mandarina Drainage Upsizing will be substantially completed by the date the Road Project is completed. 4. Cash deposits to secure Mandarina's obligations under this Agreement. Mandarina's obligations under this Agreement, including without limitation Mandarina's obligations under paragraph 3 above, shall be secured by two cash deposits to Marana. The first cash deposit in the amount of$23,350.00, referred to in this Agreement as "Mandarina's Design Cash Deposit" shall be due and payable to Marana within 7 days of the Effective Date of this Agreement. The second cash deposit in the amount of $73,120.00, referred to in this Agreement as "Mandarina's Construction Cash Deposit" shall be due and payable to Marana within 7 days after Mandarina's receipt of written notice from Marana that it has approved a Guaranteed Maximum Price (GMP) for roadway construction costs from the CMAR. Collectively, Mandarina's Design Cash Deposit and Mandarina's Construction Cash Deposit are referred to in this Agreement as "Mandarina's Cash Deposit." 5. Reconciliation and final payment.No later than 30 days after substantial completion of the Mandarina Drainage Upsizing, Marana shall provide to Mandarina an itemized statement of Marana's Mandarina Drainage Upsizing construction costs and a check or invoice representing the difference between Marana's Mandarina Drainage Upsizing construction costs and Mandarina's Cash Deposit.If Mandarina's Cash Deposit was insufficient to cover Mandarina's obligations under this Agreement, Mandarina shall pay Marana the balance of the Mandarina Drainage Upsizing construction costs as set forth in the invoice within 30 days after the itemized statement and invoice are provided to Mandarina. Any amounts unpaid after 30 days shall accrue simple interest at the rate of 10% per year until paid in full. 6. Recording.This Agreement shall not be recorded. 7. Notices. All notices shall be in writing and shall be sufficiently given and served upon the other Party by electronic mail, receipt of which has been acknowledged by the other Party, or by hand delivery,first class mail,registered or certified,return receipt requested,postage prepaid, or by reputable overnight courier service and addressed as follows: 00081920.DOCX/1 6/20/2022 MANDARINA/MARANA TANGERINE ROAD PIPA -2- Exhibit A to Marana Resolution No. 2022-074 Mandarina: MANDARINA SOUTH,LLC Attn: [Insert address] Marana: TOWN OF MARANA c/o Marana Legal Department 11555 West Civic Center Drive Marana,AZ 85653 8. Governing law.This Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona, and any lawsuit to enforce any provision of this Agreement or to obtain any remedy with respect to this Agreement shall be brought in the Pima County Superior Court, and for this purpose the Parties expressly and irrevocably consent to the jurisdiction of the Pima County Superior Court. 9. Court costs and reasonable attorneys'fees to prevailing Party in dispute.If a Party fails to perform any of its obligations under this Agreement, or if a dispute arises concerning the meaning or interpretation of any provision of this Agreement,the prevailing Party shall be entitled to its reasonable attorneys' fees and costs determined pursuant to A.R.S. §12-341.01. 10. Exhibits. Any exhibit attached to this Agreement shall be deemed to have been incorporated in this Agreement by reference with the same force and effect as if fully set forth in the body of this Agreement. 11. Cancellation for conflicts.This Agreement is subject to A.R.S. §38-511,which provides for cancellation of contracts in certain instances involving conflicts of interest. 12. Counterparts. This Agreement may be executed in any number of counterparts. Each counterpart shall be deemed an original,but all counterparts shall constitute but one agreement. 13. Effective Date of Agreement. The date of this Agreement (the "Effective Date") shall for all purposes be the date of the Mayor's signature on this Agreement. 00081920.DOCX/1 6/20/2022 MANDARINA/MARANA TANGERINE ROAD PIPA -3- Exhibit A to Marana Resolution No. 2022-074 Mandarina: Marana: MANDARINA SOUTH,LLC, an Arizona TOWN OF MARANA,an Arizona municipal limited liability company corporation By: KDL INVESTMENTS,LLC, an Arizona limited liability company,its sole Member By: Ed Honea,Mayor By: Date: Karl N.Huish,Manager ATTEST: Date: Cherry L. Lawson,Town Clerk APPROVED AS TO FORM: Jane Fairall,Town Attorney STATE OF ARIZONA ) ) ss. 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