Item #03 Approval of a One-Year Warranty Surety and Maintenance, Materials, and Workmanship Agreement with Cash Bond with Mattamy Orlando LLC, for the Spring Lake Reserve Subdivision OCOPP
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AGENDA ITEM COVER SHEET
Meeting Date: May 16, 2017
Item # 3
'r{-L'J Reviewed By:
Contact Name: (407)len Womack Departmenty Director:
Contact Number: (407) 554-7081, ext. 1506 City Manager:
Subject: Approval of a One-Year Warranty Surety and Maintenance, Materials, and Workmanship
Agreement with Cash Bond with Mattamy Orlando LLC., for the Spring Lake Reserve
Subdivision.
(District 2—Commissioner Wilson)
Background Summary:
The Spring Lake Reserve subdivision is located on A.D. Mims Road directly across the street from the Jim
Beech Recreation Complex. The overall site includes 79 single family residential lots. This subdivision was
approved for construction August of 2014 and all 79 lots should be completely finished by the years end.
As part of the platting process the developer is to furnish the City a surety in the amount of 115% of the
unconstructed improvements at the time of platting; therefore, Mattamy Homes Orlando furnished the City with
a check to cover the outstanding improvements in August of 2015. Typically, the surety provided at the time of
platting is returned to the developer once the site work is completed and the site is given a Certificate of
Completion. A two-year Maintenance, Materials, and Workmanship Agreement (MM&W Agreement) with a
Letter of Credit or Cash Escrow is provided to the City prior to issuance of the Certificate of Completion. The
Certificate of Completion then allows the developer to move ahead and begin construction of the single family
residences.
In the case of the Spring Lake Reserve subdivision, the developer reached a point in the site development
where the site was substantially complete—all of the proposed improvements were in place minus some of the
street lighting. The City agreed to allow the developer to proceed to construct homes while the City retained the
surety until the street lighting situation could be resolved. The street lighting situation was resolved eventually;
however, the Spring Lake Reserve subdivision was never issued an official Certificate of Completion nor has
the developer provided the City with a Maintenance, Materials, and Workmanship Agreement as of this date.
In order to rectify this situation, Mattamy Homes Orlando has provided the City with a Maintenance, Materials,
and Workmanship Agreement for the public improvements in the Spring Lake Reserve subdivision. The
improvements covered are for water, sewer, and reclaimed infrastructure (see attached Registered Engineer
Estimate). Mattamy Homes Orlando has requested that the City reduce the cash bond provided at the time of
platting ($494,738.34)to the amount agreed upon in the MM&W Agreement ($56,629) and return the remainder
back to Mattamy Homes Orlando. The City's Development Engineer and Utilities Director have reviewed and
approved the estimate. The MM&W Agreement will be in effect for one year rather than the usual two since the
subdivision has been substantially complete for over a year already.
Issue:
Should the City reduce the Performance Cash Bond as provided by Mattamy Orlando LLC at the time of platting
($494,738.34) and retain the agreed amount ($56,629) as Surety for the one-year warranty for Spring Lake
Reserve and execute the Maintenance, Materials, and Workmanship Agreement with Cash Bond with Mattamy
Orlando LLC?
Recommendations
The Development Services Department recommends the City reduce the Performance Cash Bond as provided
by Mattamy Orlando LLC at the time of platting ($494,738.34) and retain the agreed amount ($56,629) as
Surety for the one-year warranty for Spring Lake Reserve and execute the Maintenance, Materials, and
Workmanship Agreement with Cash Bond with Mattamy Orlando LLC.
Attachments:
1. Maintenance, Materials, and Workmanship Agreement with Cash Bond with Mattamy Orlando LLC.
2. Registered Engineer's Estimate
3. Copy of Original Check Provided for the Performance Cash Bond due at the time of platting the Spring
Lake Reserve Subdivision. (Wells Fargo Check No. 18986)
Financial Impact:
There are no financial impacts to the City in accepting this one-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 AGREEMENT WITH CASH BOND
SPRING LAKE RESERVE
THIS MAINTENANCE, MATERIALS, AND WORKMANSHIP AGREEMENT
(this"Agreement") is entered into this day of , 2017,by MATTAMY
ORLANDO LLC, a Delaware limited liability company (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 SPRING LAKE RESERVE (the
"Subdivision") and in connection therewith has installed with the approval of the City certain
sewer, water and reuse systems, 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 July 01, 2014: LS-2014-001, SPRING LAKE RESERVE PUD
—PRELIMINARY/FINAL SUBDIVISION PLAN; 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 Occupancy for residential
homes, parks and amenities within the Property that are served by the Improvements, the
Developer provided a performance guaranty in the form of a Cash Bond deposited with the City
in the amount of FOUR HUNDRED NINETY FOUR THOUSAND SEVEN HUNDRED
THIRTY EIGHT DOLLARS AND THIRTY FOUR CENTS ($494,738.34) ("Cash Performance
Bond").
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 having the Cash Performance Bond deposited with the City reduced to 10% of
the value of the Improvements ("Cash Maintenance Bond").
NOW THEREFORE, the parties agree as follows:
ORLA_1668244.1
SECTION ONE: Establishment of Cash Maintenance Bond.
Developer does hereby agree to establish the Cash Maintenance Bond in favor of the City
in the amount of FIFTY SIX THOUSAND SIX HUNDRED TWENTY NINE DOLLARS AND
FIFTY EIGHT CENTS ($56,629.58) to guaranty the maintenance, materials, workmanship, and
structural integrity of the Improvements and the other obligations of the Developer under this
Agreement. The Cash Maintenance Bond shall be established and drawn upon only in
accordance with the terms this Agreement.
The City does hereby agree to reduce Cash Performance Bond to the amount of the Cash
Maintenance Bond, and to return the remaining portion of the Cash Performance Bond to the
Developer in the amount of FOUR HUNDRED THIRTY EIGHT THOSAND ONE HUNDRED
EIGHT DOLLARS AND SEVENTY SIX CENTS ($438,108.76).
SECTION TWO: 1-Year Warranty Period.
For a period of one (1) year from the date of approval of this agreement by the Ocoee
City Commission (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 in Section 3
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: City's Right to Draw on Cash Maintenance Bond.
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 Maintenance Bond without further notice to Developer in order to establish
a cash escrow for the performance of the Developer's obligations under this Agreement (the
"Cash Escrow").
Additionally, the City may draw on the Cash Maintenance Bond in order to establish a
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 Maintenance Bond.
The Cash Maintenance Bond shall be for a term of no less than one (1) year and one (1)
month from the date of approval of this agreement by the Ocoee City Commission.
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
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ORLA_1688244.1
the term of the Cash Maintenance Bond shall be extended until such Deficiency is corrected. If
the City has provided a notice of Deficiency which has not been repaired, corrected and/or cured
within thirty (30) days from the date the Cash Maintenance Bond (or any extension or
replacement thereof) is scheduled to expire, then the City may draw on the Cash Maintenance
Bond and establish a Cash Escrow for the performance of the Developer's obligations under this
Agreement.
SECTION FIVE: City's Use of Funds Drawn on Cash Maintenance Bond.
Unless otherwise mutually agreed to by City and Developer, the funds available through
the Cash Maintenance Bond and any 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 Maintenance
Bond and any 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 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.
In the event that the City draws on the Cash Maintenance Bond and establishes the Cash
Escrow, then any excess funds shall be returned to the Developer 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.
-3-
ORLA_1688244.1
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.
MATTAMY ORLANDO LLC,a Delaware
limited liability company
By
Print Name: Jnkie" 4 h
Title: /' /J✓f
CITY:
ATTEST:
CITY OF OCOEE, FLORIDA, a Florida
municipal corporation
By:
Melanie Sibbitt, City Clerk By:
Rusty Johnson, 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 .
By:
City Attorney
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ORLA_1688244.1
EXHIBIT"A"
SPRING LAKE RESERVE
LEGAL DESCRIPTION:
A PARCEL OF LAND IN THE SOUTH 1/2 OF SECTION 9, TOWNSHIP 22 SOUTH, RANGE 28 EAST,
ORANGE COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGIN AT 7HE SOUTHWEST CORNER OF THE SOUTHEAST 1/4 OF THE SOUTHWEST 1/4 OF SAID
SECTION 9; THENCE RUN N8956'35"E ALONG THE SOUTH LINE OF SAID SECTION 9, A
DISTANCE OF 48231 FEET. THENCE RUN N4045'48"E, 1322.09 FEET TO A PONT ON THE
EAST LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 9; THENCE RUN NO17530"W ALONG
SAID EAST LINE A DISTANCE OF 880.33 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF THE A.D.
MIMS ROAD, SAID RIGHT-OF-WAY LINE BEING DESCRIBED IN OFFICIAL RECORDS BOOK 1204,
PAGE 172 OF THE PUBLIC RECORDS OF ORANGE COUNTY, FLORIDA; THENCE RUN S7528'32"W
ALONG SAID RIGHT-OF-WAY LINE A DISTANCE OF 7389.78 FEET TO THE NEST UNE OF THE
EAST 1/2 OF THE SOUTHWEST I/4 OF SAID SECTION 9; THENCE RUN 900'42'58E ALONG SAID
WEST LINE A DISTANCE OF 1536.90 FEET TO THE POINT OF BEGINNING.
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ORLA_1688244.1
GROUP
LAND DEVELOPMENT&
ENGINEERING SERVICES
May 10, 2017
Certification of Maintenance Cost
Spring Lake Reserve
This is to certify that the cost of the Water, Sewer and Reuse System for the
Spring Lake Project is as detailed on the attached table. The maintenance bond
for the project is based on 10% of the cost for the Water, Sewer and Reuse and
is included i the table.
FY ghlfa
- Engineer's Number 20044
State of Florida
SPRING LAKE RESERVE
UTILITY COST ESTIMATE
WATER DISTRIBUTION SYSTEM
8" DIP 2,884 LF 528.02 80,809.68
6"DIP 1,740 IF 523.21 40,385.40
8"GV 16 EA 51,499.00 23,984.00
6"GV 6 EA 51,049.00 6,294.00
2"Blow Off 1 EA $586.00 586.00
Connection 1 2 EA $5,355.00 10,710,00
Connection 2 1 EA $4,129.00 4,129.00
fire hydrant assembly 9 EA53,924.00 35,316.00
double services 25 EA $631.00 15,775.00
single services 30 EA $571.00 17,130.00
valves and fittings 1 LS $13,851.00 13,851.00
Sub Total $248,970.08
246 North Westmonte Drive, Altamonte Springs, FL 32714
Office: 407.750.31231 Cell407.35ff 9090 I Email: rwohlfarth@wcgroup.co I www.wcgroup.co
SPRING LAKE RESERVE
UTILITY COST ESTIMATE
WASTEWATER COLLECTION SYSTEM
manholes 0/6 10 EA $2,162.00 $ 21,620.00
manholes 6/8 3 EA $2,585.00 $ 7,755.00
manholes 8/10 6 EA $3,099.00 $ 18,594.00
manholes 10/12 2 EA $3,993.00 $ 7,986.00
manholes 14/16 1 EA $4,496.00 $ 4,496.00
manholes 16/18 1 EA $4,749.00 $ 4,749.00
8" PVC (SDR-35) 0/6 1,261 LF $21.04 $ 26,531.44
8"PVC (SDR-35) 6/8 577 LF $22.26 $ 12,844.02
8" PVC (SDR-35) 8/10 434 LF $24.85 $ 10,784.90
8" PVC (SDR-35) 10/12 440 LF $27.44 $ 12,073.60
8" PVC (SDR-35) 12/14 252 LF $31.33 $ 7,895.16
8" PVC (SDR-35) 14/16 117 LF $35.00 $ 4,095.00
8" PVC (SDR-35) 16/18 267 LF $41.00 $ 10,947.00
double laterals 20 EA $417.00 $ 8,340.00
single laterals 30 EA $502.00 $ 15,060.00
Drop Connection 1 EA $679.00 $ 679.00
Sub Total $174,450.12
REUSE SYSTEM
connect to existing 1 EA $5,355.00 $5,355.00
8" PVC(DR-18) 1,019 LF $15.54 $15,835.26
6" PVC (DR-18) 3,216 LF $11.64 $37,434.24
8"GV 4 EA $1,499.00 $5,996.00
6"GV 16 EA $1,049.00 $16,784.00
single services 80 EA $571.00 $45,680.00
Blow-off 1 EA $586.00 $586.00
valves and fittings 1 LS $12,914.00 $12,914.00
pressure testing 1 LS $2,291.09 $2,291.09
Sub Total $142,875.59
Total Water,Sewer and Reuse 566,295.79
Maintenance Bond Amount 10% $ 56,629.58
• 0624 CHECK NO.
MATTAMY HOMES ORLANDO . WELLS FARGO .1210 18986
1900 Summit Tower Blvd #500
Orlando,FL 32810 5127115
Operating
PAY—Four Hundred Ninety Four Thousand Seven Hundred Thirty Eight Dollars And 34 Cents'
*$494,738.34
To
The Order CRT of Ocoee MATTAMY HOMES 0RLANDO
ATTN: Wanda Horton
Of . 150 N Lakeshore Drive /
Ocoee, FL 34761-2258 ' 7 ,� i
• AUTHOR r',&cNPTU1E
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