HomeMy WebLinkAboutItem #07 Two-Year Warranty Surety and Maintenance, Materials and Workmanship Escrow Agreement with Rock Venture LLC for the West Road Commerical Subdivision SNoe .enter of Good Lip
AGENDA ITEM COVER SHEET
Meeting Date: November 15, 2011
Item # 7
Reviewed By: j
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 Rock Ventures LLC for the West Road Commercial Subdivision (District 1 -
Commissioner Hood)
Background Summary:
West Road Commercial Subdivision is a three lot commercial development located at the southeast corner of
the intersection of Ocoee - Apopka and West Roads. The Rock Ventures LLC, the developer has completed
construction of the overall site infrastructure improvements and has requested a Certificate of Completion. The
infrastructure improvements that are being dedicated to the City are an extension of the reuse distribution
system. 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. Rock Ventures 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 Rock Ventures, LLC for the West Road Commercial
Subdivision for the two -year warranty and execute the Maintenance, Materials, and Workmanship Escrow
Agreement with Rock Ventures, LLC.
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 Rock Ventures,
LLC for the West Road Commercial Subdivision.
Attachments:
Maintenance, Materials, and Workmanship Escrow Agreement with Rock Ventures, LLC for the West Road
Commercial Subdivision
Financial Impact:
There are no financial impacts to the City in accepting this two -year warranty surety.
Type of Item: (please mails with an "x")
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
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
2
MAINTENANCE, MATERIALS, AND
WORKMANSHIP AGREEMENT WITH CASH ESCROW
(SUBDIVISION NAME / PHASE: WEST ROAD COMMERCIAL SUBDVISION )
THIS MAINTENANCE, MATERIALS, AND WORKMANSHIP AGREEMENT
(this "Agreement ") is entered into this day of November, 2011 by _Rock Ventures, LLC,
a Florida limited liability company, whose address is 111 E. Fairbanks Avenue, Suite 100,
Winter Park, Florida, 32789 (the "Developer ") and the CITY OF OCOEE, a Florida municipal
corporation, whose address is 150 North Lakeshore Drive, Ocoee, Florida 34761 (the "City").
WITNESSETH:
WHEREAS, Developer, or its predecessor -in- interest or its predecessor -in title, has
developed and /or constructed a subdivision known as WEST ROAD COMMERCIAL
SUBDIVISION (the "Subdivision ") and in connection therewith has installed with the approval
of the City certain roads, streets, sewer, water and reuse systems, drainage facilities (including
retention and detention ponds), and/or other improvements (collectively, the "Improvements ")
under the provisions, conditions, and requirements of the City's Subdivision Regulations and the
following Final Subdivision Plan (or Preliminary/Final Subdivision Plan) approval by granted
the Ocoee City Commission on , 20 [Insert Description of FSP or P /FSP,
as applicable]
; and
WHEREAS, the Subdivision is located within certain real property located in the City of
Ocoee, Orange County, Florida, as more fully described in the attached Exhibit "A" which
exhibit is incorporated herein by this reference (the "Property "); and
WHEREAS, under Section 4 -4, Subdivision Review Process, of the City's Land
Development Code, Developer is required to guaranty the maintenance, materials, and
workmanship of the Improvements within the Subdivision; and
WHEREAS, in order to obtain the issuance of a Certificate of Completion with respect
to the Improvements, the Developer desires to guaranty such maintenance, materials, and
workmanship by providing the City with a cash escrow.
NOW THEREFORE, the parties agree as follows:
SECTION ONE: Establishment of Cash Escrow.
Developer does hereby establish a cash escrow fund with the City in the amount of Three
Thousand Seven Hundred and Ninety Eight Dollars and Fifty Cents ($3,798.50) to guaranty
the maintenance, materials, workmanship, and structural integrity of the Improvements and other
obligations of the Developer under this Agreement (the "Cash Escrow "). The Cash Escrow 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. The Cash Escrow may be co- mingled with other funds
4835 - 3176 - 1677.1 UPDATED LDC FORM 8 (10/2011)
of the City. The Cash Escrow may only be drawn upon in accordance with the terms of this
Agreement.
SECTION TWO: 2 -Year Warranty Period.
For a period of two (2) years from the date of issuance of the Certificate of Completion
(the "Warranty Period "), the Developer shall maintain the Improvements in a first class condition
and shall repair, correct and/or cure any Deficiency (as defined below) within thirty (30) days of
receipt of written notice of a Deficiency from the City. The Developer shall pay any and all
costs or expenses incidental to the performance of any such work. The City may provide notices
of a Deficiency from time to time during the Warranty Period.
SECTION THREE: Deficiency; City's Right to Draw on Cash Escrow.
If at any time during the Warranty Period, the City notifies Developer in writing (i) that
the Improvements have not been maintained in a first class condition, (ii) that paving or other
structures within the Subdivision have been found by the City to not be in compliance with the
Subdivision approval, and/or (iii) that there is a deficiency or fault in the materials,
workmanship, or structural integrity of the Improvements which has been found by the City to
not be in compliance with the Subdivision approval (collectively, a "Deficiency ") and Developer
fails to repair, correct and/or cure such Deficiency to the satisfaction of the City within thirty
(30) days from receipt of the notice thereof as set forth in Section 2 above, then the City may
draw upon the Cash Escrow as set forth herein without further notice to Developer.
Additionally, the City may draw on the Cash Escrow in such amounts as the City deems
necessary or appropriate in the event of a default by Developer under this Agreement.
SECTION FOUR: Term of Cash Escrow.
The Cash Escrow shall be held by the City for a term of two (2) years from the date of
issuance of the Certificate of Completion. Notwithstanding anything contained in Section 3
above, in the event the City has notified Developer of a Deficiency as provided above, then the
term of this Agreement shall continue and the term of the Cash Escrow shall be extended until
such Deficiency is corrected.
SECTION FIVE: City's Use of Cash Escrow.
Unless otherwise mutually agreed to by City and Developer, the Cash Escrow established
under this Agreement shall be used by the City only (a) to repair, correct and/or cure any
Deficiency, (b) to cure a breach by Developer of its obligations under this Agreement, and/or (c)
to pay for reasonable administrative expenses and attorneys' fees and costs incurred by the City
in exercising or otherwise enforcing its rights under this Agreement.
If the Developer fails or refuses to undertake the repair, correction and/or cure of any
Deficiency, then the City may, but shall not be obligated to, undertake such repair, correction
and/or cure any Deficiency, the cost of which shall be paid for out of the Cash Escrow
established pursuant to this Agreement. In the event the City undertakes any such repair,
correction and/or cure, then the City shall be entitled to retain an administrative fee in the
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4835- 3176 - 1677.1
amount of two percent (2 %) of the cost thereof and shall also be entitled to reimbursement of all
costs and expenses incurred by the City in undertaking such action, including but not limited to
its legal fees and costs. The City may use third party contractors to perform any such corrective
actions.
SECTION SIX: Right of Entry for Corrective Activities.
In the event the City undertakes to repair, correct and/or cure any Deficiency, then in
such event the Developer hereby grants to the City and its employees, contractors and
representatives, the right to enter upon the Property and the Improvements for the purpose of
performing any such repair, correction, and /or cure.
SECTION SEVEN: No Obligation of City to Undertake Repairs or Advance
Funds.
Nothing contained herein shall be construed to in any way obligate the City to (i) advance
City funds for any purpose on behalf of the Developer, or (ii) to undertake the repair, correction
and/or cure of any Deficiency. Further, the City shall have no liability to the Developer or any
third parties with respect to any corrective actions undertaken by the City.
SECTION EIGHT: Excess Funds.
Any excess funds held as the Cash Escrow shall be returned to the Developer (i) after any
and all of the Deficiencies have been repaired, corrected and cured to the satisfaction of the City
and after the payment from the Cash Escrow of all obligations of the Developer under this
Agreement, or (ii) if no notice of Deficiency is provided to the Developer, the Cash Escrow shall
be returned to the Developer within thirty (30) days following the end of the term of this
Agreement.
SECTION NINE: 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.
SECTION TEN: Construction.
This Agreement shall be construed in accordance with the laws of the State of Florida.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed as
of the date and year first above written.
DEVELOPER: ROCK VENTURES, LLC
By: A.m.,
Print Name: Greg V ckerman
Title: Manager
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4635- 3176- 1677.1
CITY:
ATTEST:
CITY OF OCOEE, FLORIDA, a Florida
municipal corporation
By:
Beth Eikenberry, City Clerk By:
S. Scott Vandergrift, Mayor
(SEAL)
FOR THE USE AND RELIANCE BY THE APPROVED BY THE OCOEE CITY
CITY OF OCOEE ONLY. APPROVED COMMISSION AT A MEETING
AS TO FORM AND LEGALITY HELD ON , 20_
this day of UNDER AGENDA ITEM NO.
, 20 .
FOLEY & LARDNER LLP
By:
City Attorney
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4835- 3176 - 1677.1
EXHIBIT "A"
(Legal Description of Real Property Constituting the Subdivision)
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4835- 3176 - 1677.1
LEGAL DESCRIPTION
LOT 1
BEGIN AT THE CENTER OF SECTION 6, TOWNSHIP 22 SOUTH, RANGE 28 EAST, ORANGE COUNTY, FLORIDA AND
RUN S00 °48'40 "W ALONG THE NORTH / SOUTH CENTER SECTION LINE OF SAID SECTION 6 A DISTANCE OF 5.79
FEET; THENCE LEAVING SAID NORTH / SOUTH CENTER SECTION LINE RUN N88 °29'02 "W 142.93 FEET; THENCE
S28 °17'59 "W 194.77 FEET; THENCE N61 °29'41 "W 288.24 FEET TO A NORTHERLY PROJECTION OF THE EASTERLY
RIGHT OF WAY LINE OF OCOEE - APOPKA ROAD AS SHOWN ON ORLANDO - ORANGE COUNTY EXPRESSWAY
AUTHORITY RIGHT OF WAY MAP, PROJECT NUMBER 75320 -6460- 602 -603; THENCE RUN N28 °17'59 "E 8.53 FEET TO
THE EAST / WEST CENTER SECTION LINE OF SAID SECTION 6; THENCE RUN S86 °38'32 "W ALONG SAID EAST / WEST
CENTER SECTION LINE A DISTANCE OF 23.50 FEET TO A SOUTHERLY PROJECTION OF THE EASTERLY RIGHT OF
WAY LINE OF SAID OCOEE - APOPKA ROAD; THENCE RUN N28 °17'59 "E ALONG SAID PROJECTION AND THE
EASTERLY RIGHT OF WAY LINE OF OCOEE - APOPKA ROAD A DISTANCE OF 198.42 FEET TO THE SOUTH RIGHT OF
WAY LINE OF WEST ROAD AS SHOWN IN OFFICIAL RECORDS BOOK 9467, PAGE 3804, AND OFFICIAL RECORDS
BOOK 9222, PAGE 730, BOTH OF THE PUBLIC RECORDS OF ORANGE COUNTY FLORIDA; THENCE LEAVING SAID
EASTERLY RIGHT OF WAY LINE, RUN EASTERLY ALONG SAID SOUTH RIGHT OF WAY LINE OF WEST ROAD THE
FOLLOWING FIVE COURSES: N66 °47'07 "E 58.56 FEET; THENCE S74 °43'06 "E 252.14 FEET TO THE POINT OF
CURVATURE OF A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 2033.50 FEET AND A CENTRAL
ANGLE OF 02°59'29"; THENCE RUN EASTERLY ALONG THE ARC OF SAID CURVE 106.17 FEET TO A POINT; THENCE
RUN S07 °26'06 "W 18.12 FEET; THENCE N80 °14'05 "E 17.26 FEET TO THE AFOREMENTIONED NORTH / SOUTH CENTER
SECTION LINE OF SECTION 6; THENCE RUN S00 °48'40 "W ALONG SAID NORTH / SOUTH CENTER SECTION LINE A
DISTANCE OF 61.19 FEET TO THE POINT OF BEGINNING.
TOGETHER WITH:
COMMENCE AT THE CENTER OF SECTION 6, TOWNSHIP 22 SOUTH, RANGE 28 EAST, ORANGE COUNTY, FLORIDA
AND RUN S00 °48'40 "W ALONG THE NORTH / SOUTH CENTER SECTION LINE OF SAID SECTION 6 A DISTANCE OF
5.79 FEET FOR A POINT OF BEGINNING; THENCE CONTINUE S00 °48'40 "W ALONG SAID NORTH / SOUTH CENTER
SECTION LINE A DISTANCE OF 382.38 FEET TO THE NORTHERLY LINE OF THAT CERTAIN LIMITED ACCESS RIGHT
OF WAY PARCEL DESCRIBED IN OFFICIAL RECORDS BOOK 5452, PAGE 2625, OF THE PUBLIC RECORDS OF
ORANGE COUNTY, FLORIDA; THENCE RUN WESTERLY, SOUTHERLY AND EASTERLY ALONG SAID LIMITED
ACCESS RIGHT OF WAY PARCEL THE FOLLOWING EIGHT COURSES: S86 °18'40 "W 228.75 FEET; THENCE S21 °31'35 "W
68.18 FEET; THENCE S20 °52'40 "E 47.14 FEET; THENCE SO4 °22'21 "E 70.63 FEET; THENCE S41 °23'15 "E 42.15 FEET;
THENCE 558 °38'25 "E 65.83 FEET; THENCE S60 °04'40 "E 72.63 FEET; THENCE S20 °56'43 "E 28.07 FEET TO THE
APPROXIMATE CENTER OF STATENS BRANCH; THENCE RUN WESTERLY ALONG THE CENTER OF STATENS
BRANCH DESCRIBED BY THE FOLLOWING MEANDER LINE; 582 °31'40 "W 145.23 FEET; THENCE N67 °54'05 "W 82.55
FEET; THENCE N41 °24'12 "W 66.41 FEET; THENCE N61 °27'23 "W 29.10 FEET; THENCE S82 °49'51 "W 93.06 FEET; THENCE
N55 °35'18 "W 68.17 FEET; THENCE N66 °07'11 "W 112.14 FEET; THENCE N75 °23'48 "W 85.47 FEET; THENCE S77 °40'09 "W
23.28 FEET; THENCE 557 °47'54 "W 45.92 FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF OCOEE -
APOPKA ROAD AS SHOWN ON ORLANDO - ORANGE COUNTY EXPRESSWAY AUTHORITY RIGHT OF WAY MAP,
PROJECT NUMBER 75320- 6460 - 602 -603; BEING A NON - TANGENT POINT ON A CURVE CONCAVE SOUTHEASTERLY
HAVING A RADIUS OF 2231.83 FEET AND A CENTRAL ANGLE OF 06°01'55"; THENCE FROM A RADIAL BEARING OF
N70 °59'41 "W RUN NORTHEASTERLY ALONG THE ARC OF SAID CURVE AND SAID EASTERLY RIGHT OF WAY LINE
A DISTANCE OF 234.96 FEET TO A POINT; THENCE RUN RADIALLY S64 °57'46 "E 20.00 FEET TO A POINT ON A CURVE
CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 2211.83 FEET AND A CENTRAL ANGLE OF 03°15'45"; THENCE
RUN NORTHEASTERLY ALONG THE ARC OF SAID CURVE AND SAID EASTERLY RIGHT OF WAY LINE 125.94 FEET
TO THE POINT OF TANGENCY; THENCE CONTINUE ALONG SAID EASTERLY RIGHT OF WAY LINE AND A
NORTHERLY PROJECTION THEREOF N28 °17'59 "E 239.68 FEET; THENCE LEAVING SAID EASTERLY RIGHT OF WAY
LINE RUN S61 °29'41 "E 288.24 FEET; THENCE N28 °17'59 "E 194.77 FEET; THENCE S88 °29'02 "E 142.93 FEET TO THE POINT
OF BEGINNING.