HomeMy WebLinkAboutItem #09 Approval of Two-Year Warranty Surety and maintenance, Materials and Workmanship Escrow Agreement with Galvin and Company for McCormick Woods >>e center of Good Lip
AGENDA ITEM COVER SHEET
Meeting Date: September 6, 2011
Item #
Reviewed By: !' /
Contact Name: David A. Wheeler, P.E. Department Director: - ' ' 4
Contact Number: 407 - 905 -3100, 3xt. 1505 City Manager:
Subject: Two -Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow
Agreement with Galvin and Company for McCormick Woods — Phase 3 (District 1 — Commissioner
Hood)
Background Summary:
McCormick Woods is a 212 lot single family residential subdivision located on McCormick Road and Ingram
Road. The developer has completed construction of the phase 3 infrastructure improvements and has request
a Certificate of Completion. The infrastructure improvements include the water, sanitary sewer, and reuse
utilities, the streets and stormwater collection system, and the perimeter fence. All identified punchlist repairs
have been completed and the developer is ready to start the two -year warranty period.
As a requirement of the Land Development Code, the developer is required to furnish the City a surety to cover
,any possible damages discovered during the next two years, should the developer not choose to make those
repairs. Galvin and Company has provided the City with a check in the amount of 10% of the constructed
improvements. The attached Maintenance, Materials, and Workmanship Escrow Agreement (Form 8 from the
Land Development Code) acts as the executable document between the developer and the City in the event
that the surety is monetary. The surety will be returned to the developer upon completion of the two -year
warranty period and the repair of any damages caused over that two year period.
Issue:
Should the City accept the surety as provided by Galvin and Company for the two -year warranty for phase 3 of
McCormick Woods and execute the Maintenance, Materials, and Workmanship Escrow Agreement with Galvin
and Company.
Recommendations
The Engineering Department recommends the acceptance of the surety and the authorization of the Mayor and
City Clerk to execute the Maintenance, Materials, and Workmanship Escrow Agreement with Galvin and
Company.
Attachments:
Maintenance, Materials, and Workmanship Escrow Agreement with Galvin and Company
Impact:
There are no financial impacts to the City in accepting this two -year warranty surety.
Type of Item: (please mark with an "x")
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
Sire Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney �� N/A
Reviewed by Finance Dept. !' ) N/A
Reviewed by 0 N/A
*Ir..
2
Niror MAINTENANCE, MATERIALS, AND WORKMANSHIP
ESCROW AGREEMENT
This Agreement is entered into this Ty day of Sallyt mlook _ , 201_, by
N'tc.totiMqc K Woods INVe ;TM /Arm 1 0.A-hereinafter referred to as "Developer"
and the City of Ocoee, a Florida municipal corporation, hereinafter referred to as the
"City ".
WHEREAS, Developer is the owner of certain real property located in Orange
County, Florida more fully described in the attached Exhibit "A" which exhibit is
incorporated herein by this reference (the "Property "); and
WHEREAS, Developer has developed and constructed on the Property a
subdivision known as
mt.cos.miCK Wood( (the "Subdivision ") and in connection therewith has installed with the approval
of the City certain roads, streets, sewers, water systems, drainage works, and /or other
improvements (the "Improvements ") under the provisions, conditions, and requirements of
the City's Subdivision Regulations and the subdivision approval granted the day of
, 20 by the Board of City Commissioners; and
WHEREAS, under Section 4-4, Subdivision Review Process, of the City's Land
Development Code, Developer is required to warrant the maintenance, materials, and
workmanship of the Improvements constructed by Developer within the Subdivision; and
flasw
WHEREAS, Section 4 -4, Subdivision Review Process, of the City's Land
Development Code provide that Developer may guaranty such maintenance, materials,
and workmanship by placing a cash escrow with the City; and
WHEREAS, Developer wishes to place in escrow with the City the sum of
* 11 in order to so guaranty the maintenance,
materials, and workmanship of the Improvements within the Subdivision as required by
Section 4-4, Subdivision Review Process, of the Land Development Code.
NOW THEREFORE, the parties agree as follows:
SECTION 1. ESTABLISHMENT OF ESCROW FUND.
Developer does hereby establish an escrow fund with the City in the amount of
43 17, 113. AO to guaranty the maintenance, materials,
workmanship, and structural integrity of the Improvements. This escrow fund shall be
placed by the City in an account at a local financial institution and shall be disbursed only in
accord with the terms of this Agreement.
FORM -8 1
Maintenance, Materials, and Workmanship Escrow Agreement
SECTION 2. TERMS AND CONDITIONS FOR RETURN OF ESCROW FUND.
In the event Developer shall maintain the Improvements in a first class condition for
a period of two (2) years from the date of issuance of the Certificate of Completion for the
Improvements, and if Developer shall replace all paving or other structures which within
said two (2) year period shall be found by the City not to comply with said .subdivision
approval, and that if the Developer shall replace any other Improvements the materials,
workmanship, or structural integrity of which shall be found by the City not to comply with
said subdivision approval for a two (2) year period following issuance of the Certificate of
Completion by the City, and shall pay any and all costs or expenses incidental to the
performance of any work required to be performed hereunder, then the monies escrowed
hereunder less an administrative fee of two (2) percent which shall be retained by the City
and less all bank charges with respect to the maintenance of the escrow fund shall be
returned to the Developer.
SECTION 3. CITY'S RIGHT TO DRAW ON ESCROW FUND.
The funds escrowed hereunder shall be used by the City only to repair or replace
the Improvements deemed by the City to not comply with the subdivision approval except
as mutually agreed to by the parties. If at any time during the two (2) year period following,
the issuance of the Certificate of Completion for the Improvements the City notifies
Developer in writing of any deficiency or fault in the materials, workmanship, or structural
integrity of the Improvements, and Developer fails to correct such deficiency or fault to the
'Slow satisfaction of the City within thirty (30) days of such written notice, then the City may make
such corrections, the cost of which shall be paid for out of the escrow fund for this purpose
without further notice to Developer.
Notwithstanding anything contained in Section 2 above, in the event the City has
notified Developer of a deficiency or fault as provided above, the term of this Agreement
shall continue until such deficiency or fault is corrected.
SECTION 4. CONTINUED APPLICABILITY OF SUBDIVISION REGULATIONS.
This Agreement shall not be construed to relieve or release Developer from any of
its obligations under the City Subdivision Regulations with respect to the Improvements.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be
signed as of the date and year first above written.
FORM -8 2
Maintenance, Materials, and Workmanship Escrow Agreement
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DEVELOPER:
�l1c.CeRM:�K V,,1ooe< T,NVpSTfrie TS., L&c
By:
By:
CITY:
ATTEST: CITY OF OCOEE, FLORIDA,
a Florida municipal corporation
By: B
City Clerk Mayor
fir►
(SEAL)
For the use and reliance by the City of Approved by the Ocoee City Commission
Ocoee only. Approved as to form and at a meeting held on
legality this day of , 20__ under Agenda Item No.
20
Foley & Lardner
By:
City Attorney
FORM -8 3