Item #03 Approval of Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Concept Construction, LLC for Ocoee Commercial Retail Store1 4 kI I Y Z/�
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AGENDA ITEM COVER SHEET
Meeting Date: June 17, 2014
Item #
Reviewed By:
Contact Name: David A. Wheeler, P.E. Department Director:
Contact Number: 407 - 905 -3100, ext. 1504 City Manager:
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Subject: Two -Year Warranty Surety and Maintenance, Materials, and Wo kmanship Escrow
Agreement with Concept Construction, LLC for Ocoee Commercial Retail Store (District 2 —
Commissioner Wilsen)
Background Summary:
Concept Construction, LLC constructed the Ocoee Commercial Retail Store, also known as Dollar General
Store # 14015 on the eastern portion of Tract B of Unit 1 of the Silver Bend Subdivision The developer has
completed construction of the infrastructure improvements and the building and has requested a Certificate of
Completion. The site infrastructure includes water and sanitary sewer improvements to be dedicated to the City
as well as the stormwater collection system, access driveways, parking lot, and perimeter wall for the single lot
commercial development. All identified punch list items 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. Concept Construction, LLC has provided the City with a check in the amount of 10% of the constructed
improvements that are being dedicated to the City by Bill of Sales. The attached Maintenance, Materials, and
Workmanship Escrow Agreement (Form 8 from the Land Development Code) will act 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 Concept Construction, LLC for the two -year warranty for the
water and sanitary sewer facilities construction with the Dollar General Store # 14015 and execute the
Maintenance, Materials, and Workmanship Escrow Agreement with Concept Construction, 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 Concept
Construction LLC.
Attachments:
Maintenance, Materials, and Workmanship Escrow Agreement with Concept Construction LLC.
Financial Impact:
There are no financial impacts to the City in accepting this two -year warranty surety.
Type of Item: (please mark with an 'V)
Public Hearing
Ordinance First Reading
Ordinance Second Reading
Resolution
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
Reviewed by Finance Dept.
Reviewed by Q
N/A
N/A
N/A
For Cleric's Dept Use:
Consent Agenda
Public Hearing
Regular Agenda
2
MAINTENANCE, MATERIALS, AND
WORKMANSHIP AGREEMENT WITH CASH ESCROW
(SUBDIVISION NAME / PHASE: SILVER BEND UNIT 1)
THIS MAINTENANCE, MATERIALS, AND WORKMANSHIP AGREEMENT
(this "Agreement ") is entered into this 22 day of April 2014, by Concept Development, a
Florida limited liability company, whose address is 3917 NW 97 Boulevard, Gainesville, FL
32606 (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
(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 November 27, 2012: Ocoee Commercial Retail Store; Small Scale Site Plan
SS2012 -006; 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 NINE
THOUSAND FIVE HUNDRED FOURTY FIVE DOLLARS ($9,545.00) 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
of the City. The Cash Escrow may only be drawn upon in accordance with the terms of this
Agreement.
4835 - 3176 - 1677.1 UPDATED LDC FORM 8 (10/2011)
SECTION TWO: 2 -Year Warrantv 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 Rijjht 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: Citv'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
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
4835- 3176- 1677.1
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 Oblilzation of City to Undertake Repairs or Advan
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:
By:
Print
Title
-3-
4835- 3176 - 1677.1
ATTEST:
Beth Eikenberry, City Clerk
(SEAL)
FOR THE USE AND RELIANCE BY THE
CITY OF OCOEE ONLY. APPROVED
AS TO FORM AND LEGALITY
this day of
20
SHUFFIELD LOWMAN AND WILSON
C
City Attorney
CITY:
CITY OF OCOEE, FLORIDA, a Florida
municipal corporation
S. Scott Vandergrift, Mayor
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING
HELD ON , 20
UNDER AGENDA ITEM NO.
-4-
4835- 3176 - 1677.1
FNI41FRIT "A"
(Leal Description of Real Property Consfitufin$! the Subdivision)
Tract B, LESS and EXCEPT the Westerly 355 feet thereof conveyed in Off Records Book 8655, Page 1292,
SILVER BEND UNIT' 1, according to the plat thereof as recorded in Plat Book 30, Pages 4 and 5, of the Public
Records of Orange County, Florida, LESS and EXCEPT Road right-of-way of Silver Star Road as recorded ill
Official Records Book 4448, Page 3494 of the Public Records of Orange County, Florida, TOGI�THER WITH rights
C,
granted in Cross Access Agreement and Grant of Non-Exclusive Easement recorded May 22,2006 in Official Records
Book 8655, Page 12-96, Public Records of Orange County, Florida.
Parcel Mentification Number: 16-21-28-8049- 00402
4835-3176-1677.1