HomeMy WebLinkAboutResolution 2024-080 Approving and Authorizing the Mayor to Sign a Utility Relocation Reimbursement Agreement with TEP MARANA RESOLUTION NO. 2024-080
RELATING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE MAYOR
TO SIGN A UTILITY RELOCATION REIMBURSEMENT AGREEMENT WITH
TUCSON ELECTRIC POWER COMPANY FOR THE RELOCATION OF CERTAIN TEP
FACILITIES AS PART OF THE TANGERINE ROAD WIDENING PHASE 2A ROAD
PROJECT
WHEREAS the Town has entered into a design contract with Psomas, Inc.
("Psomas") for the design of the Tangerine Road widening project Phase 2A, Town of
Marana Project No. ST098 (the "Road Project"); and
WHEREAS based on Psomas' design of the Road Project, the Town notified
Tucson Electric Power Company ("TEP") that certain TEP facilities require relocation to
avoid conflicts with the Road Project and requested that TEP begin the process of design
and relocation of the facilities identified as being in conflict (the "TEP Facilities"); and
WHEREAS TEP advised the Town that it is asserting a claim to prior rights within
the project area for the Road Project, based on various land rights; and
WHEREAS the Town has researched TEP' s prior rights claim and has accepted
portions of the prior rights claim for reimbursement by Marana with regard to removal
and relocation of the TEP facilities; 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 Utility Relocation Reimbursement
Agreement to facilitate TEP's removal and relocation of the accepted TEP Facilities with
reimbursement for the work by the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF MARANA, that the Utility Relocation Reimbursement Agreement with
Tucson Electric Power Company,in the form provided in the agenda materials associated
with this Council agenda item, is hereby approved, and the Mayor is authorized to sign
it for and on behalf of the Town of Marana.
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.
00079621.DOCX/1
Resolution No.2024-080 - 1 -
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 20th day of August, 2024.
Mayor Ed Honea
ATTEST: APPROVED AS TO FORM:
„:X „Sk. Ct*Y'
David Udall, Town Clerk Jane airall, own Attorney
.41OA.
MARANA AZ
ESTABLISHED 1977
00079621.DOCX/1
Resolution No.2024-080 -2 -
UTILITY RELOCATION REIMBURSEMENT AGREEMENT
TOWN OF MARANA, ARIZONA
This Utility Relocation Reimbursement Agreement (this "Agreement") is made and
entered into by and between TUCSON ELECTRIC POWER COMPANY, an Arizona corporation
("TEP"), and the TOWN OF MARANA, an Arizona municipal corporation ("Marana"). TEP 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 Phase 2A, Town of Marana Project No. ST098 (the "Road
Project").
B. In December 2022, based on Psomas' design of the Road Project, Marana notified TEP
that certain TEP facilities require relocation to avoid conflicts with the Road Project and requested
that TEP begin the process of design and relocation of impacted facilities as being in conflict (the
uTEP Facilities").
C. On November 8, 2023, TEP acknowledged to Marana that it will pursue relocation of the
TEP Facilities. TEP also advised Marana that it is asserting a claim to prior rights within the project
area for the Road Project, based on various land rights.
D. Marana has researched TEP' s prior rights claim and has accepted portions of the prior
rights claim for reimbursement by Marana with regard to removal and relocation (the "Payment
Eligible TEP Facilities"), as documented on Marana' s review and response letter, dated December
19, 2023, attached to and incorporated in this Agreement as Exhibit A.
E. TEP has provided Marana with an estimate for the removal and relocation of the Payment
Eligible TEP Facilities of $288,400.00 (the "Relocation Cost"). A true and correct copy of TEP' s
estimate is attached to and incorporated in this Agreement as Exhibit B.
F. The purpose of this Agreement is to facilitate TEP's removal and relocation of the TEP
Facilities with reimbursement by Marana for the Payment Eligible TEP Facilities .
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:
1. Depiction of the TEP Facilities. The depiction attached as Exhibit C shows the TEP
Facilities to be removed and relocated pursuant to this Agreement.
2. Marana' s obligation to pay Relocation Costs. Marana shall pay TEP all costs associated
with the removal and relocation of the Payment Eligible TEP Facilities . Marana and TEP agree that
the Relocation Costs are anticipated to be $288,400.00, as itemized and attached to this Agreement
TEP /MARANA UTILITY RELOCATION REIMBURSEMENT AGREEMENT
-1 -
as Exhibit B. Marana and TEP anticipate that the removal and relocation of the TEP Facilities will
be completed at approximately the same time that the Town's contractor for the Road Project
completes work on joint utility trenching.
3. Cash deposit to secure Marana' s obligations under this Agreement. Marana' s
obligations under this Agreement, including without limitation Marana' s obligations under
paragraph 2 above, shall be secured by a cash deposit to TEP in the amount of $288,400.00, referred
to in this Agreement as uMarana' s Cash Deposit." Marana shall provide Marana' s Cash Deposit to
TEP within 30 calendar days after the Effective Date of this Agreement.
4. Reconciliation and final payment. During design and relocation, TEP will provide
Marana with timely (within 5 business days of receipt by TEP) written notice of any change orders,
updated cost estimates, updated project schedules, or other documentation of changes in cost or
schedule. No later than 60 days after substantial completion of the removal and relocation of the
Payment Eligible TEP Facilities, TEP shall provide to Marana an itemized statement of TEP' s costs
for the removal and relocation of the Payment Eligible TEP Facilities (along with such reasonable
documentation of such costs as may be requested by Marana) and a check or invoice representing
the difference between TEP' s costs and Marana' s Cash Deposit. If Marana' s Cash Deposit was
insufficient to cover Marana' s obligations under this Agreement, Marana shall pay TEP the balance
of the costs for removal and relocation of the Payment Eligible TEP Facilities, as set forth in the
invoice within 30 days after the itemized statement and invoice are provided to Marana.
5. Recording. This Agreement shall not be recorded.
6. 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:
TEP: TUCSON ELECTRIC POWER COMPANY
c / o Miranda Jackson, Public Improvement Project Manager
4350 East Irvington Road, Mailstop OH204
Tucson, AZ 85714
Copy to: MJackson@tep.com
Marana: TOWN OF MARANA
c/ o Marana Legal Department
11555 West Civic Center Drive
Marana, AZ 85653
7. 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.
8. 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.RS. § 12-341.01 .
TEP/ MARANA UTILITY RELOCATION REIMBURSEMENT AGREEMENT
-2-
9. 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.
10. Cancellation for conflicts. This Agreement is subject to A.RS. § 38-511, which provides
for cancellation of contracts in certain instances involving conflicts of interest.
11. 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.
12. 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.
TEP:
TUCSON ELECTRIC POWER COMPANY, an
:
Marana:
TOWN OF MARANA, an Arizona municipal
corporation
y;/ ~
By: ___________ _
Ed Honea, Mayor
As: P/A,l,?{~l !rne~v,llr/,t,fl:( p~ «,1Mut~ C -2:.-Z.--z, ~
Date: _________ -/--+-------
Date: 7 / '3/ /zl{ ,,, • ~ I
STA TE OF ARIZONA )
) ss.
County of Pima )
David L. Udall, Town Clerk
APPROVED AS TO FORM:
The foregoing instrument was acknowledged before me this 3 { s+ day of J tJJc . 2024,
by M iY~ L,,clc.~~ as fr-ol ed::: M_a,.,,,_~ of T ~CSON ELECTRIC
POWER COMPANY, an~il\a~ corporation, on behalfof ~~rporation.
,,"'" C'I EL~,,,~ q
(Seal) .i''' "~,~ION ~.f~',,11,. C n
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,,,_"" IC • P\\A._ "",..,..., .......... "''''' TEP /MARANA UTILITY RELOCATION REIMBURSEMENT AGREEMENT
-3-
Exhibit A
FR
MARANA AZ
DEVELOPMENT SERVICES
December 19, 2023
Tucson Electric Power Company
Attn: Laura Marshall, Sr. Right of Way Agent
Land Resources -Mailstop OH131
P.O. Box 711, Tucson, AZ 85702
Projects: Tangerine Road Widening Phase 2A Project (ST098)
Subject: Responses to TEP's Prior Rights Summary, Dated Nov. 8, 2023
Dear Ms. Marshall:
The Town of Marana (Town) has reviewed Tucson Electric Power's (TEP) Prior Rights
Summary, dated November 8, 2023, and offers the following responses:
T12S-R12E-5-2
Pole NO. (Install date) Land
Right (year)
Pole 1 & 9 (1963) 1 O" TEP
easement ( 1973) Bk 4664-873
Pole 2-8 (1963) AT&T easement
(1946) Bk 103-225
Poles 5-8 (1963) MST& T
Easement (1950) Bk 233-540
E/2 of the NW /4 section 5
Marana Response
Split Decision. Pole 1 is located within the
existing R/W, conveyed to Pima County per Dkt
4 781-268 ( conveyance was signed/notarized in
1956, and recorded in 197 4 ). Pole 9 is located
outside the R/W and has a valid prior right if
impacted.
Claim Denied. The 1946 easement granted rights
to AT&T for underground communication systems,
and was subsequently released per Dkt. 10957-
843. Poles 2-8 are located within the existing R/W
conveyed to Pima County per Dkt 4 781-268
( conveyance was signed/notarized in 1956, and
recorded in 1974).
Claim Accepted.
1
Exhibit A continued
MARANA AZ
DEVELOPMENT SERVICES
T12S-R12E-5-1
Pole NO. (Install date) Land
Right (year)
Pole 1-6 ( 1963) AT & T easement Claim Denied. The 1946 easement granted rights
(1946) Bk 103-225 to AT&T for underground communication systems,
and was subsequently released per 0kt. 10957-
843. Poles 1-6 are located within the existing R/W
conveyed to Pima County per Dkt 4 781-248, and
0kt. 4 781-269 ( conveyances were signed/
notarized in 1955-1956, and recorded in 197 4 ).
T12S-R12E-4-2
Pole NO. (Install date) Land
Right (year)
Poles 1-4 (1963) Claim Denied. Poles 1-4 are located within the
existing R/W conveyed to Pima County per Dkt
4 781-24 7 ( conveyance was signed/notarized in
1955, and recorded in 1974).
Poles 5-8 ( 1963) Concur No Claim. Poles 5-8 are located within
ASLD Road R/W 09-1507, granted to Pima
County in 1956.
Pole 9 (1963) 200' ASLD 16-Claim Denied. Pole 9 is located within ASLD
003830 (1966) Road R/W 09-1507, granted to Pima County in
1956.
T12S-R12E-4-1
Pole NO. (Install date) Land
Right (year)
Pole 1 ( 1963) 200' ASLD 16-Phase 2B -To be reviewed at a later date
003830 (1966)
Pole 32 ( 1964) 160' ASLD Phase 2B -To be reviewed at a later date
Judgement Bk 6259-966 (1980)
2
Exhibit A continued
F?
MARANA AZ
DEVELOPMENT SERVICES
The Town acknowledges TEP's right to claim any additional prior rights and to provide
any additional prior right documentation for reimbursement if there are any additional prior
rights discovered, design changes and/or changes occur during construction.
Additionally, the Town agrees to maintain all legal and physical access to TEP facilities
both during and post construction.
If you have any questions, please contact me at 11155 W. Civic Center Drive, Marana,
AZ 85653, or call me at 520-382-2611, or you may send me an email at:
GCardieri@maranaaz.gov.
Sincerely,
Lrz~ {~-·
George Cardieri, SR/WA
Real Property Manager
3
Miranda Jackson, PM
Resource Management Team
Tucson Electric Power
Tom Houle
Public Works Department
Town of Marana
11555 West Civic Center Drive
Marana, AZ 85653
t:.Xhlblt l:::S
TEP
Tu nc o
4350 East Irvington Road, Mailstop OH204
Tucson, AZ 85714
June 6 , 2024
SUBJECT: Tangerine Public Improvement Cost Estimate
Dear Mr. Houle:
Mobile : (520) 449-4309
The purpose of this letter is to confinn the understanding between TEP and the Town of Marana regarding the Tangerine Public Improvement project. The
relocation of TEP facilities influences the existing 46kv transmission line that runs along Tangerine Road. Due to the public improvement project, 26 poles are
to be relocated. Per the Town of Marana Prior Rights Response letter dated December 19 , 2023 , 4 of the 26 poles (Pole 9 and Poles 5-8) have been accepted as
prior right claims . Below are the estimated billable costs for this relocation project:
Cost of existing pole removals: $10,000
Cost of Installation of Tangents (includes conductor, hardware , insulators, poles, etc) for Poles 5-8 : $147 ,000
Cost of Installation Priority 2 pole due to waterline installation and prior right claim (Pole 27 is TEP GIS map): $81 ,500
WO: T91657
Cost of Re-framing Pole 1 (Pole 27 in TEP GIS map): $8 ,000
Cost of Design and Engineering: $13 ,500
Cost of Land Services (Prior Right Investigations , permitting, etc .): $2 ,200
I 0% contingency: $26,200
Total estimated cost for project: $288,400
The Town of Marana has agreed to pay to TEP the costs of such work which are estimated to be a total of$288,400. The cost represented is an estimate only
and is based upon the information available at the time . Actual project costs may be higher or lower and are dependent upon many attributes some of which
may be unknown. Construction billable will be based on actual costs .
For any relocation/removals of additional TEP facilities to accommodate the Project, The Town of Marana will assume any costs associated with said
relocation/removals.
The Town of Marana and or its contractor will continue to be responsible for any overhead protection costs as per standard protocol.
Please evidence The Town of Marana's agreement to these terms by signing below and returning a copy to me at your earliest convenience.
If you have any questions , please contact me at 520-449-4309 .
Sincerely,
Miranda Jackson
Public Improvement Project Manager
Resource Management Team
Town of Marana
B :
Title:
Its :
Date:
From:
To:
Cc:
Jackson Miranda
Tom Houle; George Cardieri
Shaw, Adam
Exhibit B continued
Subject:
Date:
RE : [EXTERNAL E-Mail] FW: Tucson Electric Power Cost Estimate Tangerine PI Project Fall 2024
Friday, June 28, 2024 3:06:25 PM
Attachments: image001.png
Work Order Sketch WRT91657.pdf
Tangerine Rd PI Prior Rights 10022023.pdf
PLEASE BE CAUTIOUS
THIS MESSAGE AND SENDER COME FROM OUTSIDE THE TOWN OF MARANA. IF YOU DID NOT
EXPECT THIS MESSAGE, PROCEED WITH CAUTION. VERIFY THE SENDER'S IDENTITY BEFORE
PERFORMING ANY ACTION, SUCH AS CLICKING ON A LINK OR OPENING AN ATTACHMENT.
Good afternoon Tom and George,
Below is an itemized list that equates to the $81,500 cost. If you need the individual line
items broken one, I can share.
$7,269.17 Labor Costs
$25,695.88 Loading & Overhead Costs (engineering, transportation costs,
administrative costs)
$45,411.25 Material Costs (wire, crossarms, poles, insulators, washers, bolts, anchors,
deadends, connectors, clamps, etc.)
$3,000 Crane & Contractor Cost
$81,376.30 Total Cost
The pole (12120529) that replaces Pole 9 on the prior rights package was the P2 for the
waterline installation. Due to the timeline to get the waterline installed, we needed to install
the pole last year to accommodate the construction schedule. The pole is sized for the
future turning angle/alignment, but the pole line is still energized in its existing alignment, so
there is a need to reframe once the new line is installed.
Attached is the work order sketch for Pole 9 that addresses the scope.
I believe the prior rights letter states that Pole 9 has a valid claim and Pole 1 is in the ROW.
We are replacing Pole 9 to accommodate the Pl design.
Thank you,
Miranda Jackson, MBA
Public Improvement Project Manager
Resource Management Team
Tucson Electric Power
520-884-3989 desk
520-449-4309 cell
mjackson@tep.com
From: Tom Houle <thoule@MARANAAZ.GOV>
Sent: Tuesday, June 25, 2024 11:45 AM
To: Jackson , Miranda <MJackson@tep .com>
Cc: George Cardieri <gcardieri@MARANAAZ .GOV>
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