HomeMy WebLinkAboutPR13063:GREENWAY POINTE ESTATES MEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO:
FROM:
DATE:
SUBJECT:
Steve Fitzgibbons. City Manager
Kelly Eldridge. Director of Utility Operations //.~_,~&
March 11, 2005
Proposed Resolution No. 13063
COMMENTS
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No. 13063, which accepts a Certificate of
Completion, Certificate of Guarantee, and Contractor's Certificate and Release from ICON Builders, LLC
for the completion of public improvements (road, storm sewer, water system, and sanitary sewer) in the
Greenway Pointe Estates subdivision. This proposed resolution also releases the lien on certain residential
lots within this development to allow for the construction of homes and their sale upon completion.
BACKGROUND
The City entered into a Developer Participation Contract with ICON Builders, LLC pursuant to Ordinance
No. 02-54, and Ordinance No. 04-16, and Ordinance No. 05-11. ICON Builders, LLC has subsequently
developed a tract of land adjacent to 9t~ Ave. for residential development of up to 67 lots. The required public
improvements have been completed in substantial accordance with City Standards and are ready for
acceptance by the City. Once accepted, ICON Builders, LLC can proceed with construction of homes required
trader the Developer Participation Contract and will receive the f'mal installment of $41,429 of the $160,000
incentive.
BUDGET/FISCAL EFFECT
ICON Builders, LLC will be paid $ 41,429.
STAFF, EMPLOYEE EFFECT
City sta~ will assume operation and maintenance of this infrastructure upon acceptance. There is a one-year
guarantee period as to defects in the construction from the contractom.
SUMMARY
Approval of Proposed Resolution No. 13063 is recommended. However, although we do not currently have
all the Exhibits, we expect their delivery on Monday, March 14, 2005. If not, we will have to table this
Proposed Resolution.
/aw
P.R. No. 13063
03/11/05 legal
RESOLUTION NO.
A RESOLUTION AUTHORIZING ACCEPTANCE OF TEE CERTIFICATE OF
COMPLETION, CONTRACTORS' CERTIFICATE AND RELEASE, AND
CONTRACTORS' CERTIFICATE OF GUARANTEE FOR THE COMPLETION OF
THE PUBLIC IMPROVEMENTS (ROADS, STORM SEWERS, WATER SYSTEM,
AND SANITARY SEWERS) TO SERVE GREENWAY POINTE ESTATES
SUBDIVISION, AND AUTHORIZING THE CITY MANAGER TO SIGN THE
CERTIFICATE OF ACCEPTANCE AND AUTHORIZING THE RELEASE OF LIENS
ON CERTAIN RESIDENTIAL LOTS WITHIN THIS SUBDIVISION ON BEHALF
OF THE CITY OF PORT ARTHUR, TEXAS AND AUTHORIZING AN EXTENSION
IN THE INCENTIVE AGBRF/qENTWITH ICON BUILDERS, LLC AND PAYMENT
OF $41,429
WHEREAS,
Participation
Ordinance No.
WHEREAS,
the City of Port Arthur entered into a Developer
Contract with ICON Builders, LLC, pursuant to
02-54 signed on October 15, 2002; and,
this incentive agreement provided for an incentive
package of $t60,000; and,
WHEREAS, ICON Builders, LLC planned to develop a tract of land
adjacent to 9th Avenue as to provide up to sixty-seven (67) single
lots wherein single family residences will be built; and,
WHEREAS, the agreement was signed on December 9, 2002; and
WHEREAS, the projected timetable was for ICON to have at least
56 single family residential units built within eight years and to
have up to sixty-seven (67) single family residential units in the
subdivision upon full build-out; and,.
WHEREAS, On October 1, 2004, ICON
Development received the
Builders and Golf Breeze
first installment of $118,571 of the total
incentive package from the City; and,
WHEREAS, on February 21, 2005, Golf Breeze Development
received final plat approval for thirty (30) lots and seven
reserves as to a subdivision called Greenway ?ointe Estates;
WHEREAS, ICON Builders and Golf Breeze Development
purchased the 17.091 acres adjacent 5o 9tn Avenue and
constructed water lines, sanitary sewer lines, s~orm sewers,
road within the subdivision; and,
has
(7)
and,
have
have
and a
WHEREAS, the City Council adopted Ordinance No. 05-11 which
authorized the City Manager and the Direcnor of Finance ~o disburse
an additional $41,429 to ICON Builders LLC once the following are
completed:
(a) The items in the punch list described in Exhibit "A" are
complete.
(b) ICON and Golf Breeze Development has deeded (or dedicated)
the road, sewer lines, waLer lines and ssorm sewers.
(c) ICON and Golf Breeze has delivered an affidavit that all
suppliers and subQontracncrs have been paid.
(d) ICON and Golf Breeze has delivered a one-year warranny as
to all of the public imprcvemenms.
(e) ICON has signed an additional note and deed of trusn as to
the $41,429.
(f) Confirmation has been received that $11,697 and such
additional funds have been deposited with the City as no
ensure that street lights will be insnalled.
WHEREAS, ICON has paid a total of $13,646 (check for $11,697,
plus check for $1,949) for the installation of street lighting; and,
WHEREAS, the CitY has
Completion, dated March
Consulting Engineers, Inc.,
received an Engineer's Certification of
1t, 2005, from Arceneaux and Gates
a copy attached hereto and made a part
hereof as Exhibit "B", together with a Contractors' Certificate of
Release attached as Exhibit "C", and a Contractors' Certificate of
Guarantee attached as Exhibit "D", certifying that the road, water
lines, sewer lines, and storm sewer lines have been completed,
together with an affidavit that suppliers and subcontractors have
been paid attached as Exhibit "E"; and,
WHEREAS, ICON Builders, LLC has requested an extension of the
building schedule of two (2) years due to the two (2) year delay in
the commencement of the project and the two (2) year delay in
receiving city funds; and,
WHEREAS, ICON proposes to build, or have built by a third
parties (purchasers of lots who agree to build homes on the lots),
fifty-six (56) single family residences in the Greenway Pointe
subdivision by December 31, 2013, and if he defaults thereon, he
will repay the City a pro-rata portion (number of homes not
completed/56) of $160,000 on January 1, 2014, with accrued interest
of 2% per annum from the dates that he received said funds; and,
WHEREAS, as an example, if only 40 homes are built by December
31, 2013, then ICON will owe the City $45,714 (16/56 X $160,000 =
$45,714), plus accrued interest, which will be due and payable on
January 2014; and,
WHEREAS, if ICON defaults in the payment of the notes, he shall
pay interest at the maturity rate of 10% per annum plus attorneys
fees and the costs of collection; and,
WHEREAS, ICON will also receive the incentives for service
connections if they comply with Sections 110-61 and 110-168 of the
Code of Ordinances, subject to the maximum incentive of 30% of the
total cost of all the public improvements, as delineated in Sections
212.071 to 212.074 of the Local Government Code.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the facts in the preamble are true and
correct.
Section 2. That the City Manager of the City of Port Arthur
is hereby authorized to execute, on behalf of the City of Port
Arthur, a Certificate of Acceptance as delineated in Exhibit "F" for
the completion of the road,
water lines,
sewer lines, and drainage
facilities.
Section 3. That the City Manager and City Attorney are
herein authorized to deliver $41,429 to ICON Builders LLC, as
denoted in Ordinance No. 05-11, upon the receipt of a signed note
and deed of trust.
Section 4.
That ICON will have an extension as to build 56
homes until December 31, 2013.
defaults in building,
Section 5. That if ICON
by a third party prospective home buyers, fifty-six (56)
residences in Greenway Pointe Subdivison by December 31,
or have built
single family
2013, he will
repay the City a pro-rata portion
of $160,000 on January 1, 2014, with accrued interest
from the date that he received said funds.
Section 6. That if
prorata portion of $160,000,
2014,
(number of homes not completed/56)
of 2% per annum
ICON defaults in the
plus
he shall pay principal plus
payment of the
accrued interest, by January 1,
interest at the maturity rate of
10% per annum plus attorneys fees and the costs of collection which
the City can accelerate and seek collection of all the principal and
interest at its discretion.'
Section 7. That ICON will also receive the incentives for
service connections if they comply with Sections 110-61 and 110-168
of the Code of Ordinances, subject to the maximum incentive of 30%
of the total cost of all the public improvements, as delineated in
Section 212.071 to 212.074 Of the Local Government Code.
Section 8. That the City Manager is herein authorized to
sign release of liens to purchasers of lots that plan to build homes
as delineated in Exhibit "G" on the condition that the purchaser
complies with Section 4.23 of the deed restrictions which requires
the purchaser to commence construction within three (3) years of the
date of purchase and to complete the construction within two (2)
years of the purchase.
Section 9.
by December 31, 2013, ICON Builders, LLC, will
either purchase back the lot and Complete the
prorata portion of the loan with interest as denoted in
Agreement and in this Resolution.
Section 10. That ICON Builders,
agreeing to the terms hereof.
Section 11. That a copy of
That if the home purchasers do not complete the homes
still be required to
construction or pay a
the Incentive
LLC will sign this Resolution
the caption of this Resolution be
spread upon the Minutes of the City Council
READ, ADOPTED AND APPROVED THIS the
at a Regular Meeting of the City Council
Texas, by the following vote: AYES: Mayor
day of , 2005
of the City of Port Arthur,
Councilmembers
NOES:
ATTEST:
Mayor
Evangeline Green
City Secretary
APPROVED FOR ADMINISTRATION:
S t'~ve Fit zgib~bons
City Manager
APROVED AS TO FORM:
Mark Sokolow
City Attorney
APPROVED FOR ADMINISTRATION:
Kelly Eldridge
Director of Utility Operations
Ross Blackketter /
Director of Public Works
APPROVED AS TO AVAILABILITY OF FUNDS:
Rebecca Underhill
Director of Finance
AGREED TO=
ICON BUILDERS, LLC.
BY:
EXHIBIT LIST
· Exhibit "A"
· Exhibit "B"
· Exhibit "C"
· Exhibit
· Exhibit ~E"
· Exhibit ~F"
· Exhibit "G"
Punch list
Engineer's Certificate of Completion
Contractors' Certificate of Release
Contractors' Certificate of Guarantee
Affidavit
Cer5ificane of Accepnance
Release of Lien
EXHIBIT "A"
PUNCH LIST
COMPLETION INSPECTION
PUNCH LIST
DATE:
Januaw 25,2005
PROJECT:
Water, Sewer, Paving ahd Drainage Facilities
Tc Serve
Greenway Pointe Estates
A&G Job No. 03-1CN-010 (Construction Phase 03-1CN-011 )
ATTENDEES:
Kelly Eldddge - City of Port Arthur (CPA)
Ross Blacketter - City of Port Arthur (CPA)
Mark Blackshear - City of Port Arthur (CPA)
.Charles Shajari - City of Port Arthur (CPA)
Todd Clark - Jerry Waliey Construction (JWC)
Bill Kemp - Jerry Walley Construction (JWC)
Rick Hutchings - U-Con Utilities & Construction (UUC)
Joe M. Wilson Jr., PE - Arceneaux & Gates (A&G)
The following items are to be corrected or corn pleted to comply with the Contract Documents:
GREENWAY .POINTE DRIVE
1. Handicap ramps along 9~h Ave. are not per plan see sheet 9 of 12.
2. Repair expansion joint sealant at approximate station 0+70.
3. Saw cut curb at control j0int at approximate station 6+50.
4. , Replace missing w(~od expansion joint at approximate station 10+50.
5. Repair grout at pipe penetration at storm inlet B6.1 repair damage to inlet top.
6. Tdm pipe flush with bench in sewer manhole at station13+32.86.
7. Raise fire hydrant at station 13+90 to correct elevation.
8. Raise fire hydrant at station 17+90 to correct elevation.
9. Grout or replace throat at inlet BI.
10. Raise rim on sanitary sewer manhole at station 18+81.02.
PLEASANT HILL COURT
11. Reset inlet C2 to correct alignroent.
12. Raise fire hydrant at station 2+05 to Correct elevation.
· ?age 1 of 2
WINDY HILL COURT
13. Repair gutter storm sewer inlet D lie remove concrete slag).
14. Repair grout at pipe penetration at storm sewer inlet D1
15. Clean out debris from sewer manhole at statton 1+89.52.
GENERAL ITEMS
1. Clean and seal all spa~ls In paving at expansion joints.
2. Replace all damaged and missing curb expansion joints.
3. Grout ~qterior of all sanitary sewer manholes at spacer dngs.
4. Operate all valves to ensure proper operation (this will be performed by City of Port Arthur
personnel).
5. Straighten and/or adjust all sanitary sewer service cleanouts.
6. Mark all water and sanitary services with stakes as called for on plans
7. Repeat water bacteriological test.
8. Core paving as required in technical specifications.
Miscellaneous
1, Submit As-Built (red-lined) drawings.
END OF PUNCH LIST
Pegc 2 o~'2
EXHIBIT "B"
ENGINEER' S CERTIFICATION OF COMPLETION
EXHIBIT "C"
CONTRACTORS' CERTIFICATE OF RELEASE
EXHIBIT "D"
CONTRACTORS' CERTIFICATE OF GUARANTEE
EXHIBIT "E"
AFFIDAVIT
EXHIBIT "F"
CERTIFICATE OF ACCEPTANCE
CERTIFICATE OF ACCEPTANCE
Waterlines,
FOR
sewer lines, public storm sewer lines,
Greenway Pointe Estates
IN THE
and roads for
CITY OF PORT ARTHUR
TO= ICON Builders, LLC
Gentlemen:
This is to certify that the City of Port Arthur, Texas, accepts the
completion of the waterlines, sewer lines, public storm sewer lines,
and roads for the Greenway Pointe Estates Subdivision on the basis of
the Contractors: Certificates of Guarantee and the Contractors'
Certificates and Release, executed by Jerry Walley, President, Jerry
Walley Construction, Inc. and Polly Flowers, President of UCON
Utilities and Cons5ruction, Inc., and by ICON Builders.
Steve Fitzgibbons
City Manager
ATTEST:
Evangeline Green, City Secretary
EXHIBIT "G"
RELEASE OF LIEN
RELEASE OF LIEN
STATE OF TEXAS
COUNTY OF JEFFERSON
WHEREAS, the City of Port Arthur, a Municipal Corporation duly
organized under the laws of the State of Texas, is the owner and holder
of a lien or liens upon and against the property described below; said
lien or liens being more particularly described as a deed of trust, File
No. 2003006920 as authorized by Ordinance No. 02-54 and Ordinance No. 04-
16
Pursuant to Resolution No. , the City hereby releases the
above-described liens heretofore existing against the following lot or
lots: to-wit:
This release is contingent on ICON Builders or his assignee
complying with Section 4.23 of the deed restrictions which requires
the owner of the lot to commence construction of a single family
residence to city Code within three years and to complete the
construction within two years, thereafter.
IN WITNESS W~ERETOFORE, the City of Port Arthur has caused by
these presents 5o be executed by the City Manager, Stephen
Fitzgibbons, duly authorized, and attested by its City Secretary,
Evangeline Green, this day of , A.D., 2005.
THE CITY OF PORT ARTHUR
ATTEST=
BY:
Stephen Fitzgibbons,
City Manager
Evangeline Green, City Secretary
APPROVED AS TO FORM=
Mark T. Sokolow, City Attorney
ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF JEFFERSON
BEFORE ME, the undersigned Notary Public, on this day personally
appeared Stephen Fitzgibbons, City Manager of the City of Port Arthur,
known to me to be the person whose name is subscribed to the foregoi~g
instrument, and acknowledged to me that he executed the same as the
act and deeds of the City of Port Arthur, for the purposes and
considerations therein expressed, and in the capacities therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __
, 2005.
day of
AGREED TO:
NOTARY PUBLIC IN AND FOR
THE STATE OF TEXAS
ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF JEFFERSON
BEFORE ME, the undersigned Notary Public, on this day personally
appeared , known uo me co be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the purposes and considerations therein
expressed, and in the capacities therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
, 2005.
Notary Public In And For
The State of Texas
AFTER RECORDING RETURN TO=
CITY OF PORT ART~o~
Legal Department
P. O. Box 1089
Port Arthur, Texas 77641-1089