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HomeMy WebLinkAboutVII (E) Discussion/ Action re: Development Agreement - Hackney-Prarie Rd Agenda 11-17-98 Ocoee Item VII E o o f.yP�°of Goon �� JAMES W. SHIRA,P.E. CITY ENGINEER/UTILITIES DIRECTOR 150 N.LAKESHORE DRIVE•OCOEE,FLORIDA 34761 PHONE(407)656-2322 EXT. 142•FAX(407)656-7835 MEMORANDUM DATE: November 13, 1998 TO: The Honorable Mayor and Board of City Commissioners FROM: James W. Shira, P.E., City Engineer/Utilities Director SUBJECT: Development Agreement-Hackney Prairie Road The developers of the Prairie Lake Phase III project, Prairie Lake Joint Venture, (Prairie), and the developers of the Remington Oaks project, Imperial Partnership, (Imperial) both had work within the right-of-way of either the existing Hackney-Prairie Road, or the proposed Hackney-Prairie as part of their respective projects. At the time both of these project's original designs were begun, the water master plan was not complete,the reclaimed water plan was just beginning. Prairie's plans called for widening of a portion of Hackney-Prairie in the area leading to their entrance, and Imperial's plans called for the extension of Hackney-Prairie to their east property line from its current terminus. The Hackney-Prairie extension consisted of both two lane and three lane sections. In discussions with Imperial,they agreed to give a parcel of land to the city for use as a neighborhood park on the south side of Hackney-Prairie Road. This proposed park site • was originally designed to be a retention pond for part of the Remington Oaks project. Imperial's donation of the land was conditioned on our paying for the cost of moving the stormwater flow from this pond to another pond on the north side of Hackney-Prairie. The entrance to this park will lie roughly midway between the entrances to the Prairie and Imperial projects. It became obvious that Hackney-Prairie Rd. should be widened to three lanes throughout, so that the future park entrance would have the required left turn lane. It also seemed obvious that this widening should be done concurrent with the work on the road required by the subdivisions. This widening required changes to the stormwater system in the right-of-way, such as adding inlets and extending pipes. We also needed to revise the storm water system in a portion of Remington Oaks, in order to redirect the stormwater flow. ®1- THE PRIDE OF WEST ORANGE There were also several utility issues that needed to be addressed concurrent with the construction of the Hackney-Prairie extension. We needed to install the reuse lines that would serve the two projects, we wanted to increase the size of the water main the developer was required to install,to make that size consistent with the water master plan, and we wanted to revise the proposed sanitary sewer design to eliminate the need to construct a lift station. We realized that there could be a significant amount of redundant effort and cost if Imperial, Prairie and the city all attempted to do their own portions of the work. In order to eliminate duplication of effort and the potential for overlapping and conflicting construction projects, it appeared that the best way to approach the work would be to have one contractor do all the work. This is the same approach used when the city and Silvestri entered into an agreement to construct the existing portion of Hackney-Prairie Road. That agreement allowed the city to use the services and contract of Silvestri's contractor, and pay to Silvestri an administrative fee for the additional work required. In this case, with two developers involved, we decided that it would be most efficient to reach an agreement with Imperial, who had the majority of the work to do on Hackney- Prairie. We checked their contractor's prices against those of the contractor Prairie is using for their on-site work, and determined that Imperial's prices were in line with Prairie's, and were also in line with prices we have been seeing for similar work in Ocoee. We then developed a plan by which Imperial's contractor would do the work required for their project, (referred to in the attached Agreement as Imperial Improvements) as well as the work required by the Prairie project(related to Hackney-Prairie Road, and referred to in the attached Agreement as Prairie Improvements), and also the work required by the city's desire to have utility and park issues addressed concurrent with the road work. The basic premise was that Prairie would pay to the city,the construction cost that they avoided by having Imperial construct certain improvements within Hackney-Prairie Road for them. This amount is $72,373.90, and these improvements are referred to in the attached Agreement as the Prairie Improvements. Imperial would credit to the city,the cost they would have paid for their originally approved lift station and force main. This amount is $70,498.20, and these improvements are referred to in the attached Agreement as the Prairie Improvements. The city would pay to Imperial, or provide credits, for the costs related to the improvements requested by the city. These improvements are referred to in the attached Agreement as the City Improvements, and are listed in more detail below. For administering these various changes to their original project, and the increased scope of work, we agreed that Imperial should be entitled to an administrative fee of 10% of the costs for the extra work within their project limits. This is the same administrative fee percentage that was paid by the city to Silvestri for their role in the construction of the existing portion of Hackney-Prairie Road. On this project,the majority of the extra administrative work was due to the water and reclaimed water issues, and the administrative fee is thus split between those two items. The costs for the "additional work" are as follows, with a brief description of each. Roadway - $112,065.18 This work provided a third lane which will be used as a turn lane into the proposed park, added several drainage structures and pipe associated with the additional lane, and provides for a complete overlay of the road from Clarke Road to the east end of Remington Oaks. New striping and reflectors will also be installed. The overlay was required in order to give the road surface a uniform appearance and riding surface, since much of the widening was done in half-lane-width strips on both sides of the existing road. Storm Sewer- $30,586.60 To provide the city with a parcel of land for the park, a planned retention pond had to be reduced in size, and the water that would have been directed to it had to be directed instead to another pond. This required that several pipes be increased in size to accommodate the increased flow. Sanitary Sewer- $43,951.00 The revised sanitary sewer is a deep line that runs along the north side of Hackney-Prairie Road. This allowed us to delete the proposed Remington Oaks lift station, and its associated annual operating cost. This will also make it easier to serve the property east of Remington Oaks if it is developed in the future. This cost is a net amount due to Imperial, having taken the $72,373.90 contribution from Prairie and the $70,498.20 contribution from Imperial into account. Water- $33,140.14 This is the cost to oversize the water main on Hackney-Prairie Road to a 16 inch diameter line, in accordance with the water master plan. The original developer agreement for Remington Oaks called for the developer to install a 12 inch diameter line. Reclaimed Water- $56,150.00 This is the cost to install a reclaimed water main in the Hackney-Prairie Road right-of- way. The city normally pays for the installation of the transmission facilities such as this, and the developer pays to install smaller distribution lines within the development. Both Remington Oaks and Prairie Lake Phase III have installed these distribution lines in their projects, at their expense. Administrative Fee - $11,972.00 The cost for the various items of work within Imperial's project limits is $119,720.94, and the 10% administrative fee is therefore $11,972.00. The total amount due to Imperial is therefore $287,864.92. In the proposed Agreement, this amount is broken out for payment as follows: • $112,065.18 for the road improvements to be paid from the Transportation Impact Fee fund. • $30,586.60 for the stormwater system to be paid from the General Fund Streets Budget. This amount was set aside for this purpose in the FY 98/99 budget. • $43,951.00 for sewer system improvements to be paid from the Water/Wastewater Construction Fund. • $33,140.14 for the water system improvements, as well as an additional $5,986.00 as a share of the administrative fee, for a total of$39,126.14 be paid from the 1997 utility bond issue funds. • $56,150.00 for the reuse system improvements, as well as an additional $5,986.00 as a share of the administrative fee, for a total of$62,136.00 be paid from the 1997 utility bond issue. I recommend the City Commission authorize the Mayor and City Clerk, upon delivery to the City of the referenced Development Agreement executed by both Prairie and Imperial, to execute the proposed Developer Agreement on behalf of the City of Ocoee, and authorize payment of funds as shown above. DEVELOPMENT AGREEMENT This Development Agreement(the"Agreement") is made and entered into this day of , 1998, by and between IMPERIAL PARTNERSHIP, a Florida general partnership (hereinafter referred to as "Imperial"), whose address is P.O. Box 607307, Orlando, Florida, 32860-7307, and PRAIRIE LAKE JOINT VENTURE, a Florida general partnership (hereinafter referred to as "Prairie"), whose address is 1241 Semoran Boulevard, Suite 185, Casselberry, Florida 32707, and the CITY OF OCOEE, a Florida municipal corporation(hereinafter referred to as the "City"), whose address is 150 North Lakeshore Drive, Ocoee,Florida 34761. WITNESSETH: WHEREAS, Imperial has heretofore obtained from Professional Design Associates, Inc. ("PDA") certain plans for Remington Oaks Subdivision(the"Project") consisting of Sheets 1 through 24 as prepared by PDA under Project No. 92-17 and sealed by PDA on February 5, 1998, and approved by the City on May 5, 1998(the"Plans"); and WHEREAS, the Plans depict water, sanitary sewer, storm sewer, reclaimed water, roadway and grading improvements on Imperials's property, as well as similar improvements within the Hackney-Prairie Road right-of-way, all required in order to develop the Project("Imperial's Improvements"); and WHEREAS, the Plans also depict certain sanitary sewer, roadway and grading improvements required by Prairie for the development of Prairie's property which are independent of the improvements required for Imperial's Project ("Prairie's Improvements"); and WHEREAS, the Plans depict certain sanitary sewer improvements within the Hackney- Prairie Road right-of-way(the Revised Sewer System)which take the place of sanitary sewer facilities depicted on Prairie's plans, (the Prairie Sewer System); and WHEREAS, Prairie agrees that the Revised Sewer System adequately serves their project, and therefore agrees to contribute to the cost of the overall project, the amount that would have been required to construct the Prairie Sewer System; and WHEREAS, the Plans also depict certain water, sanitary sewer, storm sewer, reclaimed water,roadway and grading improvements requested by the City which are above and beyond both Prairie's improvements and Imperial's Improvements required to develop the Project (the"City's Improvements"), (further,Prairie's Improvements and the City's Improvements are together referred to herein as the"Additional Improvements"); and WHEREAS, Imperial is currently constructing the Project, said construction being in accordance with the Plans and pursuant to a written proposal, cost estimate and construction contract with F.E. Development Recycling, Inc. (Imperial's Contractor"); and WHEREAS, construction of the Additional Improvements by Imperial instead of by Prairie and the City would (1) allow Imperial to utilize the construction contract with Imperial's Contractor and thereby promptly begin construction of the Additional Improvements; and(2) eliminate potential scheduling and coordination conflicts involving the construction of the Project and the Additional Improvements; and WHEREAS, Prairie, the City and Imperial agree that it is in the best interests of all parties for Imperial, instead of Prairie and the City to construct the Additional Improvements in accordance with the terms and conditions set forth below. NOW, THEREFORE, in consideration of the mutual premises contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Section 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. Section 2. Additional Improvements. A. Instead of Prairie and the City constructing the Prairie Improvements and the City Improvements respectively, Imperial hereby agrees to construct the Additional Improvements in accordance with the Plans. B. Imperial has provided Prairie and the City with a copy of the contract between Imperial and Imperial's Contractor(the"Construction Contract"), and agrees that upon review and approval of the Contract by Prairie and the City, Imperial intends to construct the Additional Improvements at a total fixed price of Two Hundred Seventy-Five Thousand, Eight Hundred Ninety-Two and 92/100 Dollars ($275,892.92) (the"Contract Price"). C. In consideration of Imperial's construction of the Revised Sewer System (which is included in the Additional Improvements), instead of the Prairie Sewer System, in accordance with the Plans, Prairie hereby agrees to pay to the City the sum of Seventy-Two Thousand, Three Hundred Seventy-Three and 90/100 Dollars ($72,373.90). Imperial shall at all times fully comply with the terms and requirements of the State of Florida Construction Lien Law and shall not allow any liens to attach to the Prairie Improvements in connection therewith. D. In consideration of Imperial's construction of the Additional Improvements in accordance with the Plans, the City hereby agrees to reimburse Imperial the Contract Price. In lieu of a total cash payment, the City may grant Imperial up to One Hundred Twelve Thousand Sixty-Five and 18/100 Dollars ($112,065.18) road impact fee credits for use only in connection with the development of the Project (the"Road Impact Fee Credits"). The Road Impact Fee Credits granted by the City to Imperial will reduce on a dollar-for-dollar basis the obligation of the City to pay the Contract Price. E. Any cost overruns for the Additional Improvements under said Contract shall be reimbursed by City only upon the prior written approval of City, which approval will not unreasonably be withheld. All reimbursements shall be made only in accordance with a construction draw schedule consistent with the draw schedule of Imperial's Contractor, said draw schedule to be mutually agreed upon by City and Imperial. In order to obtain a draw, Imperial shall submit to City a draw request in a form reasonably acceptable to City, which draw request will include,but not be limited to, lien waivers from Imperial's Contractor and all subcontractors, and affidavits of Imperial's Contractor evidencing payment in full of the amount of the draw request. Imperial shall at all times fully comply with the terms and requirements of the State of Florida Construction Lien Law and shall not allow any liens to attach to the City Improvements in connection therewith. F. In consideration of Imperial's agreement to construct the Additional Improvements and administer the construction thereof and other valuable considerations, the receipt and sufficiency of which is hereby acknowledged, the City agrees to pay Imperial the sum of Eleven Thousand Nine Hundred Seventy-Two and No/100 Dollars ($11,972.00) (the"Administrative Fee"). Said payment of the Administrative Fee shall be made by the City to Imperial only upon satisfactory completion of construction of the Additional Improvements as set forth herein, and acceptance of said improvements by the City. G. Imperial shall obtain a written statement from Imperial's Contractor acknowledging that: (1) The Prairie Improvements and the City's Improvements are being constructed for the benefit of Prairie and City, respectively, (2) Prairie and City are third party beneficiaries to the Construction Contract with respect to the Prairie Improvements and the City's Improvements, respectively; and (3) all warranties, lands and other guarantees to be provided by the Contractor under the Construction Contract shall extend to Prairie and the City with respect to the Prairie Improvements and City's Improvements, respectively. Section 3. Applicable Law. This Agreement and the provisions contained herein shall be construed, controlled and interpreted according to the laws of the State of Florida. Section 4. Enforcement. This Agreement shall be enforceable by an action for specific performance. Section 5. Effective Date. The Effective Date of this Agreement shall be the date that the last of the parties to this Agreement has executed the same and such date shall be inserted on the first page of this Agreement. IN WITNESS WHEREOF, Imperial, Prairie and the City have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. IMPERIAL PARTNERSHIP, PRAIRIE LAKE JOINT VENTURE, a Florida general partnership a Florida general partnership By: By: Name: Name: Title: Title: Executed On: Executed on: CITY OF OCOEE, FLORIDA By: S. Scott Vandergrift,Mayor Executed On: ATTEST: Jean Grafton, City Clerk (SEAL) FOR USE AND RELIANCE ONLY BY APPROVED BY THE OCOEE CITY THE CITY OF OCOEE, FLORIDA; COMMISSION AT A MEETING HELD APPROVED AS TO FORM AND ON , 1998 LEGALITY this day of UNDER AGENDA ITEM NO. , 1998 FOLEY&LARDNER By: City Attorney