HomeMy WebLinkAbout2011 05 23 Informational 105 Jesups Reserve Bond Settlement
COMMISSION AGENDA
CONSENT
INFORMATIONAL X
ITEM 105
PUBLIC HEARING
REGULAR
MGR /DEPT
May 23, 2011
Meeting
Authorization
REQUEST: Public Works Department providing information to the City Commission
regarding the status of bond settlement activities and funding at Jesup’s
Reserve.
SYNOPSIS:
This agenda item summarizes the activities performed to date and remaining
funding from the City’s settlement of maintenance and performance bond claims
at Jesup’s Reserve.
CONSIDERATIONS:
In October 2007, Levitt & Sons of Seminole County, LLC closed construction on Jesup’s
Reserve and soon thereafter filed for bankruptcy, leaving portions of the site
infrastructure incomplete and/or damaged.
The City filed a claim against National Union Fire Insurance Company in 2007 on the
maintenance bond for Jesup’s Reserve for the repair of defects to the water, sewer, and
roadway infrastructure.
The maintenance bond claim was settled in July 2009 for a cash payment to the City in
the amount of $85,000. The maintenance bond settlement funds were utilized to fund or
reimburse previous expenditures for the following items:
Repair damaged and cracked concrete work on the public streets within the
o
developed portion of the subdivision (complete)
Repair damages to the first lift of asphalt within the developed portion of the
o
subdivision (the entire asphalt surface has been milled and resurfaced to City
standards) (complete)
Repair a stormwater inlet (complete)
o
Reimburse legal and administrative fees (complete)
o
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In addition to the above-listed items funded by the maintenance bond settlement, City
Staff completed the following work that would normally have been required by the
developer:
Clean out the entire sanitary sewer system
o
Repair broken utility boxes and valve box covers
o
Replace missing or damaged sanitary sewer cleanout caps
o
All activities related to the maintenance bond claim are complete and all funds have been
expended.
The City filed a claim against Lexon Insurance Surety in 2007 on the performance bond
at Jesup’s Reserve for the completion of site infrastructure work that was shown on the
approved final engineering plans but not installed.
The performance bond claim was settled in September 2010, consisting of a cash
payment to the City in the amount of $193,668 plus an agreement for the bonding
company to complete several construction items onsite.
To date, performance bond settlement funds in the amount of $64,047 have been utilized
to fund or reimburse previous expenditures for the following items:
Place final lift of asphalt within the developed portion of the subdivision
o
Install final striping in the developed portion of the subdivision
o
Install traffic signal loops in McLeod’s Way
o
Modify screen wall along the western boundary to comply with the approved
o
plans
Reimburse legal fees
o
The bonding company has completed the following items per the bond settlement
agreement:
Install fire line valve box covers at all completed residential units
o
Reconstruct the curb return at the southwest corner of McLeod’s Way and Old
o
Farm Lane per the approved plans
Install brick pavers in the parallel parking spaces where missing
o
Complete trellis construction
o
The bonding company was also responsible for the installation of the decorative street
signs per the approved plans, and the signs were installed in November 2010. Within the
first several months of installation, three of the approximately 35 signs fell down due to a
failure at the base of the poles. It appeared that the poles were structurally deficient by
not being capable of withstanding the minimal wind loads they were subjected to. In
April 2011, at least nine decorative signs went down during a storm with a similar break
at the pole base. Staff contacted the vendor and the vendor repaired the bases of all
damaged signs and installed reinforcement sleeves at the bases of all signs, at no expense
to the City. However, various parts and pieces of the signs were damaged when they fell
down, and the vendor requested payment in the amount of $1,696 to purchase these
items. Staff forwarded this request to the bonding company and has requested that the
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bonding company cover all costs associated with the installation and repair of the
decorative signs. As of May 13, 2011, the bonding company has not responded to the
City’s request on this item.
Decorative street signs in subdivisions are normally turned over to the HOA for
ownership and maintenance. Due to ongoing concerns about the quality and long-term
durability of the installed decorative signs at Jesup’s Reserve, Staff is not asking the
Jesup’s Reserve HOA to accept the street signs at this time. Staff intends to pursue the
bonding company to fulfill their obligation to install decorative street signs to the City’s
satisfaction.
At this time the City holds performance bond settlement funds in the amount of
$129,621. These funds are in an escrow reserve account specifically designated for
Jesup’s Reserve. The intent of these funds is to utilize them as needed to complete the
subdivision infrastructure per the approved plans. Items incomplete at this time include
several alleys, sidewalks, landscaping, and hardscaping. The current homebuilder
performing work in Jesup’s Reserve, D.R. Horton, is expected to complete the majority
of this work as required by City Code in conjunction with the completion of construction
at each townhome building.
Staff Communications with the Jesup’s Reserve HOA:
Staff has attended two meetings with representatives of the Jesup’s Reserve HOA Board,
most recently on February 22, 2011 at City Hall. Staff has had additional correspondence
by telephone and e-mail with the property manager and several residents.
Staff will continue to work closely with the HOA regarding the expenditure of the
remaining bond settlement funds. The goal is for the subdivision to be complete as
designed and the HOA to not be burdened with any unnecessary construction and/or
maintenance expenses.
In the near future, Staff is planning to proceed with a small scale landscaping project in
the clubhouse area using bond settlement funds. The landscaping in this area was poorly
installed and maintained in this area and an upgrade would be a welcome enhancement
for the current residents.
FISCAL IMPACT:
This agenda item is for information only and has no fiscal impact.
COMMUNICATION EFFORTS:
This Agenda Item Has Been Electronically Forwarded To The Mayor And City
Commission, City Manager, City Attorney/Staff, And All eAlert/eCitizen Recipients, And Is
Available On The City’s Website, LaserFiche, And The City’s Server. Additionally, Portions Of
This Agenda Item Are Typed Verbatim On The Respective Meeting Agenda Which Has Also
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Been Electronically Forwarded To The Individuals Noted Above; And Which Is Also Available
On The City’s Website, LaserFiche, And The City’s Server; Has Been Sent To City Staff,
Media/Press Representatives On File With The City, And All Individuals Who Have Requested
Such Information; And Has Been Posted Outside City Hall; Posted Inside City Hall With
Additional Copies Available For The General Public; And Posted At Five (5) Different
Locations Around The City. This Agenda Item Is Also Available To Any New Individual
Requestors. City Staff Is Always Willing To Discuss This Or Any Agenda Item With Any
Interested Individuals.
In addition to the Communications listed above, this agenda item has been forwarded to
the Jesup’s Reserve HOA Board and the property manager.
RECOMMENDATION:
Staff recommends that the City Commission review and accept the information in this
agenda item.
ATTACHMENTS:
None