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HomeMy WebLinkAboutItem 04 Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with DR Horton, Inc., for the Oak Trail Reserve Subdivision and the Clarke Road Extension oco e florid° AGENDA ITEM COVER SHEET Meeting Date: November 20, 2018 Item # Lf Reviewed By: Contact Name: Milen D. Womack, E.I. M Department Director: Development Engineer Contact Number: 407-554-7081 City Manager: Subject: Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with DR Horton, Inc. for the Oak Trail Reserve Subdivision and the Clarke Road Extension Commission District#4—George Oliver Ill Background Summary: The Oak Trail Reserve Subdivision is located at the northeast corner of Clarke and Clarcona Ocoee Rd. The overall development covers 33.94 acers with nearly 14 acers of the development being dedicated for open space. The Oak Trail Reserve Subdivision will contain 140 single family lots at final build-out. Clarke Road was required to be extended north of Clarcona Ocoee Road to serve this development. The developer, DR Horton, has completed construction of the infrastructure improvements for the Oak Trail Reserve Subdivision and the Clarke Road Extension and has requested a Certificate of Completion for both projects. The infrastructure improvements include certain streets, sewer, water and reuse systems, and drainage facilities. The Oak Trail Reserve development also constructed several amenities which includes an amenity center with pool, a mulched walking trail through their upland conservation area with fitness equipment, and access to the West Orange Trail at two locations. All identified punch list repairs are currently being completed, and the developer will be ready to start the two-year warranty period for the public infrastructure improvements once the punchlist items are inspected and approved by City Staff. As a requirement of the Land Development Code, the developer is required to furnish the City a Surety to cover any possible damages to the public improvements discovered during the next two years, should the developer not choose to make those repairs. DR Horton Inc. has provided the City with a Check in the amount of 10% of the constructed public improvements ($46,414.44 issued by JP Morgan Chase Bank). The attached Maintenance, Materials, and Workmanship Escrow Agreement acts as the executable document between the developer and the City. The check will first be deposited into the City of Ocoee bank account, and the amount is then recorded in the Oak Trail Reserve accounts receivable account. The surety will be kept with the signed Maintenance, Materials, and Workmanship Escrow Agreement, which will ensure that funds will be available should they be needed during the two-year warranty period. 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 DR Horton Inc. for the two-year warranty for the Oak Trail Reserve Subdivision and the Clark Road Extension and execute the Maintenance, Materials, and Workmanship Escrow Agreement with DR Horton Inc.? Recommendations: The Development Services Department recommends the acceptance of the Surety and the execution of the Maintenance, Materials, and Workmanship Escrow Agreement with DR Horton Inc. for the Oak Trail Reserve Subdivision and the Clark Road Extension Attachments: 1. Maintenance, Materials, and Workmanship Escrow Agreement with DR Horton Inc. 2. Certification of Maintenance Cost from the Engineer of Record Financial Impact: Type of Item: (please mark with an 50 Public Hearing For Clerk's Dept Use: Ordinance First Reading y 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. I r _*..Jac N/A Reviewed by 0 N/A There are no financial impacts to the City in accepting this two-year warranty Surety. 2 MAINTENANCE,MATERIALS,AND WORKMANSHIP ESCROW AGREEMENT This Agreement is entered into this day of , 20 , by Dr Horton, Inc. a Delaware 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 _Oak Trail Reserve (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 11 day of July ,20 17 , 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 $46,414.16 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: D. 12. Hor`toA, I he • , a-Plefida 1b. e IckGoo re W/(/(Y(/(i C.0 ceorechoiN By: `9 /� Print Name: jp� ► Va Gn�CkSIS Print Name _A \S S A � VS Its: S .Sec_r 40 (' Print Name 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 Ocoee Approved by the Ocoee City Commission at a only. Approved as to form and legality this meeting held on , 20_ day of ,20 under Agenda Item No. SHUFFIELD, LOWMAN& WILSON, P.A. By: City Attorney EXHIBIT"A" LEGAL DESCRIPTION: A tract of land lying in Section 33, Township 21 South, Range 28 East, and Section 04, Township 22 South, Range 28 East, Orange County, Florida, . being more particularly described as follows: Commence at the Southwest corner of the Southeast 1 /4 of Section 33, Township 21 South, Range 28 East, Orange County, Florida and run North 00°05'11 " East along the West line of the Southeast 1/4 of said Section 33 for a distance of 594.20 feet; thence North 67°40'37" East, a distance of 32.46 feet to the POINT OF BEGINNING; thence North 00°05'11" East, a distance of 787.49 feet; thence South 89°39'15" East, a distance of 1,296.90 feet; thence South 00°10'58" West, a distance of 182.76 feet to a point on a non—tangent curve concave southeasterly having a tangent bearing of South 44°52'59" West and a radius of 1,303.24 feet; thence run southwesterly along the arc of said curve through a central angle of 23°45'14" for a distance of 540.30 feet; thence South 21'07'45" West, a distance of 175.70 feet to a Point of Curvature of a curve concave northwesterly having a radius of 2,834.79 feet; thence run southwesterly along the arc of said curve through a central angle of 0912'52" for a distance of 455.90 feet; thence South 59°39'23" East, a distance of 5.00 feet to a point on a non—tangent curve concave northwesterly having a tangent bearing of South 30°20'37" West and a radius of 2,839.79 feet; thence run southwesterly along the arc of said curve through a central angle of 0412'08" for a distance of 208.28 feet; thence South 34°32'45" West, a distance of 290.02 feet to the Point of Curvature of a curve concave northwesterly having a radius of 1,612.02 feet; thence run southwesterly along- the arc of said curve through a central angle of 0121'53" for a distance of 38.40 feet; thence departing said curve and run South 55°53'39" West, a distance of 209.54 feet; thence North 22°56'36" West, a distance of 507.34 feet to a Point of Curvature of a . curve concave._ easterly having a radius of 1 ,000.00 feet; thence run northerly along the arc of said curve through a central angle of 23°01'47" for a distance of 401.94 feet; thence North 00°05'11" East, a distance of 134.54 feet to the POINT OF BEGINNING. Containing 33.939 Acres, more or less. , . . LAND DEVELOPMENT& ENGINEERING SERVICES September 5, 2018 Ralph E Smith, Jr. Orlando Division D.R. Horton, Inc. 6200 Lee Vista Blvd., Ste. 400 Orlando, FL 32822 Re: Certification of Maintenance Cost City of Ocoee Engineer's Project 2017-003 Dear Ralph Smith, I, Richard C.Wohlfarth, P.E. Florida Registration 20044 herby certify that the re-use, base& paving, and storm for Oak Trail Reserve Project Maintenance Guarantee for City of Ocoee is $46,414.44. Sincerely, Richard C.Wohlfarth, P.E. q+++++++++I+p�� Registered Engineer 20044 `�,.��`�CHAR��g �i,� ti Yowtl • O .. iri •' . �'o ., 'RIpA • .• 4,"4 AL e• .- 0� !Hist+►++ 246 N.Westmonte Drive I Altamonte Springs,Florida 32714 1407-750-3123(0) 1407-350-9090(C) 1 RWohlfarth©WCGroup.co C' of Ocoee Oak Trail Reserve-Ent ineer's Pro'ect 2017-003 Reuse, Construction of Clarke Road DESCRIPTION OF WORK QTY Ea PRICE SCHEDULED VALUE Tie Into Re-Use 1 EA $500.00 $ 500.00 0•en Cut& Re•air 2 •laces 190 Brii $55.00 $ 10,450.00 MOT 2 •laces 1 ® $2 500.00 $ 2,500.00 12" GV 1 EA $2 254.00 $ 2,254.00 6" GV 12 EA $882.00 $ 10,584.00 6x2 B/O 1 EA $564.00 $ 564.00 12x2 B/O 1 EA $564.00 $ 564.00 16" St) Casin• 20 ® $80.00 $ 1,600.00 12" PVC 318 ® $27.60 $ 8,776.80 6" PVC Em® $11.50 $ 47,460.50 Re-use Sin!le Ser 141 EA $509.00 $ 71,769.00 Misc Fittins & Test 1 [ffl $28,250,00 $ 28,250.00 :777i Clarke Rd. Im•rovements ®® $ - 12" LBR 40 Sub.rade miguilmaigg $ 17,741.25 8" Limerock/Pr 3 790® $12.80 $ 48,512.00 1" SP 9.5 As•halt 3 790® $7.25 $ 27,477.50 1" FC 9.5 As•halt 3 790® $8.10 $ 30,699.00 F-Curb 1 680 I $13.55 $ 22,764.00 2' R/W Sod 880 ®-1 $ 1,980.00 MOT 1 I $1 500.00 $ 1,500.00 Stri•in! & Si•na•e 1 ® $8,000.00 $ 8,000.00 Roadwa Demo 780 ® $5.00 $ 3,900.00 Im•ort'&Place Fill IMEIm 8.65 $ 62,643.30 if Clarke Rd. Im•rovements NI $ - P-5 Cl`0-6 5 EA $2 581.00 $ 12,905.00 P-5 CI 6-8 ® EA $3,125.00 $ 6,250.00 60" MH 6-8 2 EA $2 305.00 $ 4,610.00 C Inlets 0-6 1 EA $1 546.00 $ 1,546.00 18" RCP 0-6 795 ® $31.50 $ 25,042.50 (24" R P 6-8 75 ® $42.70 $ 3,202.50 11'IC tloJu,�� • Pio • 1 EA 1 $99.00 $ 99.00 11111 .ottituittu o Total Construction Cost $464,144.35 O G s • Maintenance 2 Years 10%MI $ 46,414.44 � '•,��' •0 �c 73 :*ti I. •P +� S � • 'IDA.•''4�6/�```a: