Item 05 Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Agreement with SM Construction LLC for the Oaks Commerce Center Ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: May 7, 2019
Item # _ 5
Reviewed By:
Contact Name: Milen D. Womack, Department Director: MIL
Development Engineer
Contact Number: 407-554-7313 City Manager: /(41-#4
Subject: Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship
Escrow Agreement with SM Construction LLC for the Oaks Commerce Center
Commission District 2— Rosemary Wilsen
BACKGROUND:
The Oaks Commerce Center is located at 1104 South Clarke Road, immediately south of Matthew Paris Blvd. The
lot is identified as Parcel Number 22-22-28-3093-01-000. The total area of the parcel amounts to approximately
1.812 acres. The Oaks Commerce Center consists of a 16,8000 sq. ft. retail building with nine (9) leasable units.
The developer has completed construction of the infrastructure improvements necessary for the Oaks Commerce
Center and is requesting a Certificate of Completion for the overall development. The infrastructure improvements
include connections to the public sewer, potable water, reclaimed water systems, connection to the retention pond,
the addition of a turn lane on Clarke Road, and stripping changes on Matthew Paris Blvd. All identified punchlist
repairs are completed, and the developer is ready to start the two-year warranty period for the public infrastructure
improvements.
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 choose not to make those
repairs. SM Construction LLC has provided the City with a check in the amount of 10% of the constructed public
improvements ($13,977.13). 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 Oaks Commerce Center accounts receivable account.
The surety will be kept with the signed Maintenance, Materials, and Workmanship 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 SM Construction LLC for the two-year warranty for the Oaks
Commerce Center and execute the Maintenance, Materials, and Workmanship Escrow Agreement?
RECOMMENDATION:
The Development Services Department recommends the acceptance of the Surety and the execution of the
Maintenance, Materials, and Workmanship Agreement with Letter of Credit with SM Construction LLC for the Oaks
Commerce Center.
ATTACHMENTS:
Maintenance, Materials, and Workmanship Escrow Agreement.
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 0 N/A
2
MAINTENANCE,MATERIALS,AND WORKMANSHIP
ESCROW AGREEMENT
Oak Commerce Center
This Agreement is entered into this 29th day of April; 2019, by SM Construction LLC.,
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 Oaks Commerce Center (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$13,997.13 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:
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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 of Real Property Constituting the Subdivision)
Legal Description
•
LOT 1,GOODMAN CENTRE,according to the Nat thereof,as recorded in
Plat Book 64,Pages 7 and 8,of the.Public Records of Orange County,Florida,
less and cxcept road right of way for Clarke Road. (the"Land').
Parcel ID#21-22-28-3093-01-000.
-5-
ORLA 1688244.1