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HomeMy WebLinkAboutItem #07 Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Pulte Home Corporation for Crown Pointe Cove ocoee florida AGENDA ITEM COVER SHEET Meeting Date: June 21, 2016 Item # 7 Reviewed By: Contact Name: Milen D. Womack Department Director: Contact Number: 407-554-7081 Ext. 1506 City Manager: Subject: Two-Year Warranty Surety and Maintenance, Materials, an Workmanship Escrow Agreement with Pulte Home Corporation for Crown Pointe Cove (District 1 —Commissioner Grogan) Background Summary: Crown Pointe Cove is a 44 lot single family residential subdivision located on Ocoee Crown Point Parkway. The developer has completed construction of the infrastructure improvements and has requested a Certificate of Completion. The infrastructure improvements include the reuse utilities, the streets and stormwater collection system, and the perimeter wall. 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. The Pulte Home Corporation has provided the City with a Letter of Credit 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 Pulte Home Corporation for the two-year warranty for Crown Pointe Cove and execute the Maintenance, Materials, and Workmanship Escrow Agreement with the Pulte Home Corporation? Recommendations The Development Services 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 the Pulte Home Corporation. Attachments: Maintenance, Materials, and Workmanship Escrow Agreement with the Pulte Home Corporation. Financial 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 Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X 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 () N/A 2 MAINTENANCE, MATERIALS, AND WORKMANSHIP ESCROW AGREEMENT This Agreement is entered into this _ day of , 20 , by Pulte Home Corporation ., 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 Crown Pointe Cove (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 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 establish an escrow fund in order to 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 $46, 001.50 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. 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 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. SIGNATURES TO FOLLOW IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed as of the date and year first above written. Signed,sealed and delivered DEVELOPER: in the presence of: RI / J i. 1-7Lic Print Name: Doug Hoffman Print Name Cliff Tnrrps Its: Director of Land Print Name Neil Klaproth CITY: ATTEST: CITY OF OCOEE, FLORIDA, a Florida municipal corporation By: By: City Clerk Mayor (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 SHUFFIELD, LOWMAN &WILSON, P.A. By: City Attorney EXHIBIT "A" Lot 5, Westyn Bay Commercial, according to the plat thereof, as recorded in Plat Book 88, Pages 149 through 150,public records of Orange County, Florida, lying in Section 6, Township 22 South, Range 28 East, Orange County, Florida, described as follows: Commence at a 4"X4" concrete monument at the Southeast corner of the Northwest 1/4 of said Section 6, as a point of reference; thence run S86°38'39"W, along the South line thereof, 649.91 feet to a point on the West right of way line of County Road 437; thence continue S86°38'39"W along said South line of the Northwest 1/4 of Section 6, a distance of 317.15 feet to the Point of Beginning; thence run S28°17'18"W, a distance of 424.48 feet; thence run N62°13'45"W, a distance of 23.37 feet to the beginning of a curve concave to the South, having a radius of 180.00 feet; thence run Northwesterly along the arc of said curve through a central angle of 16°04'40", an arc distance of 50.51 feet to a point of reverse curvature of a curve concave to the North, having a radius of 720.00 feet; thence run Northwesterly along the arc of said curve through a central angle of 40°05'19", an arc distance of 503.77 feet; thence run N38°13'06"W, a distance of 188.46 feet to a point on the Southeasterly right of way line of Ocoee Crown Point Parkway; thence run N51°46'54"E along said Southeasterly right of way line, a distance of 342.38 feet to the beginning of a curve concave to the South, having a radius of 640.00 feet; thence continue along said Southeasterly right of way line and the arc of said curve through a central angle of 47°18'09", an arc distance of 528.37 feet; thence departing said Southeasterly right of way line, run Si 1°16'42"W, a distance of 14.36 feet to the beginning of a curve, concave to the East, having a radius of 86.50 feet; thence run Southeasterly along the arc of said curve through a central angle of 72°59'24", an arc distance of 110.19 feet; thence run S61°42'42"E, a distance of 101.31 feet to the beginning of a curve, concave to the West, having a radius of 37.50 feet; thence run Southeasterly along the arc of said curve through a central angle of 90°00'00", an arc distance of 58.90 feet; thence run S28°17'18"W, a distance of 223.46 feet to the Point of Beginning. Containing 9.884 Acres, more or less.