1995-27
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ciTRUS FRUIT GROWING
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WINTER GARDEN, FLORIDA 34777-0338
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476 ¡¡; HIGHWAY 50
P. 0 BOX 770338
R. D K¡¡;¡;;NE IBBS-le73
R. D. KEENE TRUST
MARY G KEENE TRUST
LAKE BUTLER GROVES. INC
WINDERMERE GROVES, INC.
CLERMONT GROVES. INC
KEENE'S HARVESTING CO.
BETTY K THOMAS TRUST
DO¡::¡OTHY K. McPHERSON TRUST
..JOHN R MCPHERSON
REX V McPHERSON II
TELEPHONE
(407) 656-2291
TELECOPIER
(407) 656'1433
June 2, 1995
via facsimile 682-1977 & (904)i394-1452
Mr. Marshall Ames
110 Douglas Avenue
Altamonte Springs, Fl. 32714
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Mr. Wayne Saunders
City Manager
City of Clennont
Post Office Box 120219
Clermont, FI. 34712-0219
Re: Clermont Hills
Gentlemen:
As you are aware, Clermont Groves, Inc. ("CGr') recently executed an Omnibus
Amendment to Impact Fee and Sewer Effluent Agreement, Mortgage Deed and Security
Agreement, and Promissory Not~ (the "Agreement") in connection with various matters
relating to Clermont Hills. It is the purpose of this letter to clarify Paragraph 2 of the
Agreement, which modifies Paragraph 2 of the Mortgage, as well as to clarify the
intention and obligation of CGI concerning designation of the parties to receive sewer
capacity under Paragraph 4 ofth~ Impact Fee and Sewer Effluent Agreement.
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As evidenced by prior correspondence exchanged between the City and our attorneys,
please accept this letter as co~ation that the prohibition on treatment of funds in any
manner by the City which would result in any delay in receipt of funds under the Mortgage
by CGI is not intended to apply tQ the approximately $380,000.00 which Lennar Homes,
Inc. is to pay to the City for 175 water taps and 175 sewer taps. CGI understands and
agrees that the Funds are to be utilized by the City in aid of construction of its utility
facilities.
As also evidenced by prior corresþondence exchanged between the City and our attorneys,
please accept this letter as confirmation that CGI is obligated to designate Lennar Homes,
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Mr. Marshall .Ames
Mr. Wayne Saunders
June 2, 1995
Page 2
Inc. as the party to receive the e~cess sewer capacity referred to in Paragraph 4 of the
Impact Fee and Sewer Effiuent Agreement upon acquisition by Lennar Homes, Inc. of a
portion of the property compris~g Clennont Hills currently owned by CGI.
Should you require further confirination of this matter, or wish to discuss it with me,
please do not hesitate to call. Thank you for your continuing cooperation in connection
with this project
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Rex V. McPherson, IT
President
RVMII.cjk
c: James E. L. Seay, Esquire
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AGREEMENT
BETWEEN
CITY OF CLERMONT AND LENNAR HOMES. INe.
This document constitutes an agreement between the City of Clermont, a municipality of the State of
Florida, hereinafter referred to as "Clermont" and Lennar Homes, Inc., a Florida corporation, hereinafter
referred to as "Lennar".
WITNESSETH
WHEREAS, Lennar has a purchase and sale and option agreement for the approved development called
Clermont Hills Planned Unit Development (PUD) which is owned by Clermont Groves, Inc. of Winter Garden,
Florida, and which is located in the unincorporated portion of Lake County, Florida; and,
WHEREAS, the Clermont Hills project was approved by the Lake County Board of County
Commissioners on August 25, 1993, pursuant to Planned Unit Development (PUD) Ordinance #34-93, as a
mixed-use residential development; and,
WHEREAS, Lennar has filed an Amendment to Planned Unit Development (PUD) Ordinance #34-93,
to modify same to meet its specific marketing needs and allow the development of an Active Adult Community;
and, said amendment was approved by the Lake County Commissioners on September 27, 1994, by Ordinance
#72-94; and,
WHEREAS, as part of the approved PUD Ordinance #34-93 and #72-94 specific sites within the
development were designated for acquisition by Clermont for the future location of water and wastewater plants
to be owned and operated by Clermont for the use and benefit of the residents of Clermont Hills, as well as for
surrounding development; and,
WHEREAS, The City of Clermont desires to develop a utility system to serve an area east of the
existing City limits including Leonar Homes Adult Community and to that end has entered into a contract and
has purchased the sites designated for use as water and wastewater plants in the Clermont Hills PUD from the
Owners, Clermont Groves, Inc., and further contracted to purchase Lake Hills Utilities potable water system
and whereas Lennar wishes to utilize the planned water and wastewater facilities to be constructed on those
sites; and,
WHEREAS, it is the desire ofthe City of Clermont to annex the Clermont Hills project when conditions
allow,
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NOW THEREFORE, IN CONSIDERA nON of the mutual promIses and covenants hereinafter
contained, the parties do hereby agree as follows:
SECTION L RECITALS
The above recitals are true and correct and incorporated herein.
SECTION n. SEWER SERVICE
A. Clermont desires to construct on property contained in the Clermont Hills PUD a temporary, 99,000 gpd
wastewater plant to serve the needs ofLennar, as well as other existing or proposed developments. The City of
Clermont commits to have available for use by Lennar 41,162 gpd (175 adult ERU's as described in Section IT,
B.) on or before Sept. 8, 1995 and the completion of a 1.5 MGD permanent sewage treatment facility by
September 30, 1996. Lennar shall prepay for the 41.162 gpd as outlined in Section ill par. E. The City of
Clermont shall apply for modifications to the permit of the temporary sewer facility in the following sequence,
two modifications of 50,000 GPD each for a total capacity of 199,000 GPD to allow for rapid expansion by
Lennar, if needed. As of April 10, 1995, Clermont has received the construction permit for the initial 99,000
GPD facility and is currently under construction with an anticipated completion date of Sept. 8, 1995.
B. Lennar intends to develop an age restricted adult community on some or all of its property. Studies
conducted on similar age restricted adult communities show a significant reduction from normal usage in the
amount of potable water used and wastewater generated for treatment. Upon the basis of said studies it is
agreed that City of Clermont establish within the City's Impact Fee Ordinance a rate schedule to reflect the
reduction of flow from said communities. The standard ERU for sewer in the City of Clermont is set at 350
GPD and the Sewer Fee for said 350 GPD is set initially at $2,374. The agreed upon number of gallons
representing an ERU for said age restricted adult communities shall be 67% of a standard ERU of 350 GPD, (or
235 Gallons per day) and the initial charge shall be set at 67% of the standard fee or $1,590.58. This does not
restrict the city from adjusting the fees in the future if necessary. Clermont and Lennar shall jointly apply to The
Florida Department of Environmental Protection for approval of this arrangement. Lennar shall supply the
historical data justifying the request.
C. Clermont agrees to commence to expand the wastewater plant capacity at the point in time that will
provide for uninterrupted capacity for the Lennar development and to continue expeditiously to complete said
expansion. Lennar will be copied by Clermont on all Florida Department of Environmental Protection (FDEP)
permits processed by Clermont for the wastewater plant or on any other permits or approvals obtained by the
City related to the construction and operation of the wastewater plant. ~
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D.' . Lennar shall have the riAut not the obligation, to expand the ~ewater plant if Clermont does not
or cannot start to expand the wastewater plant within sixty (60) days notice of Lennar's intent to complete the
expansion. Any capacity created by Lennar's expansion of the wastewater plant shall be reserved for Leonar
and shall be considered totally prepaid. There will be no additional ERU charges to Lennar for the use of the
additional capacity created by Lennar. Clermont will have the right of approval of the plans for any capacity
expansion, but such plans and design shall be of generally accepted engineering practices and Clermont's
approval shall not be unreasonably withheld. Said expansion shall be under the direction of the City of
Clermont.
SECTION m. WATER SERVICE
A. The City of Clermont has committed to Lennar that capacity will be available and reserved for the
exclusive use of Lennar's Adult Community by September 8, 1995 in the amount of 175 adult ERU's (41,162
gallons per day) as prepaid by Lennar. (See paragraph "C" and "E" below).
B. Lennar intends to develop an age restricted adult community on some or all of its property. Studies
conducted on similar age restricted adult communities show a significant reduction from normal usage in the
amount of potable water used and wastewater generated for treatment. Upon the basis of said studies, the City
of Clermont agrees to establish a new category of user within the City; s Impact Fee Ordinance and establish a
rate schedule to reflect the reduction of flow from said communities. The standard ERU for water in the City of
Clermont is 350 GPD and the initial water fee is set at $864 for said 350 GPD. The agreed upon number of
gallons representing an ERU for said age restricted adult communities shall be 67% of a standard ERU of 350
GPD, (or 235 Gallons per day) and the initial charge shall be set at 6']O!cI of the standard fee or $578.88. This
does not restrict the city from adjusting the fees in the future if necessary. Clermont and Leonar shall jointly
apply to The Florida Department of Environmental Protection for approval of this arrangement. Leonar shall
supply the historical data justifying this request.
C. In order to provide the additional water capacity in a time frame required by Lennar, Clermont will
require a cash payment in aid of construction. The City of Clermont and Lennar have agreed that Lennar shall
prepay to Clermont $380,000 as an aid in construction or acquisition as Clermont sees fit. Payment shall be
made as detailed below.
D. Lennar's prepayment shall be reimbursed as follows. The per gallon charge for water and sewer service
to Lennar by Clermont shall not exceed the charges which are uniformly imposed in the areas which are already
annexed into Clermont and served by the system being constructed and acquired by the City and referred to as
the Clermont East system. The total cash prepayment made by Leonar to the City of Clermont shall constitute a
credit for prepaid water and sewer tap fees and shall be applied in a manner that will insure Lennar will
continue to have an equal number of prepaid water and prepaid sewer credits regardless of how the city expends
the funds. This application of funds shall be utilized on all future prepayments or any other cash contributions
made by Leonar to Clermont unless mutually approved in writing by both parties. ~ Š
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'E. '," ~he $380,000 cash prepa& Lennar to the City of Clermont Shal.paid in the following increments:
1. 10% at the time this agreement is approved and signed by both parties.
2.45% at the time the 99,000 GPD sewage treatment package plant is approved for
operation by The Florida Department of Environmental Protection.
3.45% when the City ofClennont completes the work necessary in order to deliver to Lennar
the 41,162 gpd of potable water prepaid by Lennar.
F. Lennar shall have the right, but not the obligation, to expand the potable water facility if Clermont does
not or cannot start to expand the water facility within sixty (60) days notice ofLennar's intent to complete the
expansion. Any capacity created by Lennar's expansion of the water facilities shall be reserved for Lennar and
shall be considered totally prepaid There will be no additional ERU charges to Lennar for the use of the
additional capacity created by Lennar. Clermont will have the right of approval of the plans for any capacity
expansion, but such plans and design shall be of generally accepted engineering practices and Clermont's
approval shall not be unreasonably withheld. Said expansion shall be under the direction of the City of
Clermont.
SECTION IV. GENERAL PROVISIONS REGARDING WATER Al\'D SEWER SERVICES.
A. It is the intent of the parties that Lennar Homes will have available ongoing water and sewer services so
that Lennar may build homes starting Sept. 8, 1995. If water and sewer service are not available by SEPT. 8,
1995 for any reason, then all funds paid by Lennar towards prepaid Water and Sewer tap fees shall be refunded
to Lennar.
B. Lennar shall connect to the City's Water and Sewer services along the extension of Hancock Road and
west of the respective Water and Sewer facilities or such other location as may be mutualy agreed upon by both
parties. Any requirement by Clermont to oversize any facilities, i.e. pipes, lift stations, infrastructure, etc., shall
be paid for by the entity receiving the benefit or by Clermont, but will not be paid for by Lennar. Lennar will
allow the oversizing of any facility and will provide necessary easements for line placements, within reason.
Once the water and sewer connections and internal distribution and collection system are constructed by Lennar
and accepted mto the City system, the system shall be transferred without cost to the City. Lennar will provide
necessary easements for operation and maintenance of the system as well as easements for ingress and egress
across all streets.
C. Within the area bemg developed by Lennar in the Clermont Hills PUD, Lennar plans but is not obligated
to build a golf course. Clermont intends to have reuse water available from its wastewater treatment plant for
irrigation purposes and wishes to have Lennar use reuse water in the Clermont Hills PUD. Reuse water shall be
of a quality that win not need additional treatment prior to use. All reuse programs shall meet the requirements
of all government agencies having jurisdictional control. The amount of irrigation applied to the Golf Course
from either well water or reuse water shall be at the determination of Lermar's Golf Course Management and
shall be based on the needs of the golf course, at said Golf Course Management's sole discretion. The need to
dispose of reuse water shall not be a factor in determining the amounts of reuse utilized Lennar shall have the
right to supply its own irrigation water whenever adequate reuse water is not available. The cost to be charged
Lennar by Clermont for reuse water on the golf course shan be based on a wholesale price structure not to
exceed $0.13 per thousand gallons. This price shall remain in effect for a period of 5 years from the date
of opening the Golf Course for play or six years from the date of this agreement, whichever occurs first.
Thereafter, the price may be increased to reflect actual increases in the cost of delivering the reuse water to the
golf course. In the event of a disagreement between Clermont and Lennar regarding the amount of an increase,
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. th~ ~a.tter shall be submitted to ~ing arbitration and both parties agree ae bound by the outcome. The cost
of the arbitration shall be paid by the losing party. If neither party wins, the arbitrators shall decide what portion
of the cost shall be borne by each party. The arbitration shall be conducted under applicable rules of the
American Arbitration Association.
D. Until such time as Clermont can supply adequate amounts of reuse water, Lennar shall be allowed to use
its own water well for irrigation. The water well shall continue to be available as a supplemental source to meet
Lennar's needs. Clermont shall install a supply line to the irrigation quality reuse water reservoir located on the
golf course on or before Sept. 30, 1996. Said reservoir shall be located adjacent to proposed Golf Hole Number
Seven as shown on the Master Preliminary Plan depicted on attached Exhibit "A". The irrigation quality reuse
water reservoir (reuse pond) at a minimum shall have a capacity of 1.5 million gallons. Leonar shall commit to
the disposal of 500,000 gpd of reuse water within Lennar's community. Clermont recognizes that this
commitment by Lennar requires a large investment and as the community grows the need for treated effluent
shall become greater. As a result, Clermont shall grant to Lennar a right of first refusal on the purchase of
additional reuse water as it becomes available under the same terms and conditions applied to the first 500,000
gpd. The wholesale price described in Par. C shall be applicable to golf course use only. The sale of re-use
water for residential areas shall be at a rate established by the City and consistent with other similarly situated
users within the City.
E. All Potable Water and Sewage Treatment Capacity created by and or Water and Sewer Tap Fees prepaid
for by Lennar shall be owned by Lennar and shall be fully and freely assignable and salable by Lennar.
F. The City of Clermont is required to provide for the storage of a three day supply of effluent in order to
be permitted to construct the 1,500,000 gpd permanent sewage treatment plant. (4,500,000 gallons storage).
Lennar's need for irrigation quality reuse water to the adult community and golf course appears to be less than
the amount required to be stored. Lennar agrees to provide the additional area needed to store the additional
irrigation quality reuse water for a total of 4,500,000 gallons somewhere within the adult community on or
before September 30, 1996. The City of Clermont agrees to pay for the construction of the additional reuse
pond to the standards and specifications used by Lennar's engineer in constructing the first reuse pond . The
construction of the second re-use storage pond shall be at the sole discretion of the City of Clermont, however,
the City shall either commit to the construction or relinquish their right for the use of the site to be provided by
Lennar on or before September 30, 1996.
G. Lennar shall install the irrigation distribution system throughout the community and deed same to
Clermont along with required easements. Clermont shall be responsible for the maintenance of the distribution
system. The golf course irrigation system ownership shall be retained by Lennar. The irrigation supply reuse
pond(s) shall be part of the golf course and owned by Leonar but shall be maintained by Clermont in a manner
insuring its aesthetic value and benefits to the golf course and community. This in no way requires the City to
be responsible for landscaping or other aesthetic additions made by Lennar. Pond maintenance is limited to the
condition of water and the pond's function as an irrigation reservoir. Reuse water pumped to irrigate the golf
course shall be metered as it is pumped from the reuse pond and said meter readings shall form the basis of
charges to the golf course at the rates outlined in paragraph "C" above. Reuse water pumped to the balance of
the community shall be charged at a flat rate per home per month and shall be included in Clermont's utility
invoices to the individual homeowners. There will be no additional charge for irrigation of roadways, common
areas or other areas which are the responsibility of the Community Associations.
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SECTIONV. ANNEXATIO~
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A. Lennar agrees to allow annexation of the community when the Clermont Hills PUD becomes eligible for
annexation. As a result of this Agreement. the Lennar community shall be charged water and sewer rates
consistent with c.harges inside the City limits for customers served by the same system referred to as the
Clermont East system. both prior to and after annexation subject only to the stated 235 GPD per ERU for adult
communities as described in Section II paragraph B and Section ill paragraph B above.
B. The City acknowledges that Lennar intends to develop a multi-phased community consisting of an
Active Adult Community and standard non age restricted homes under the terms and conditions of the rules and
regulations which currently exist in the unincorporated area of Lake County. Clermont acknowledges and
confIrms that the Lake County Comprehensive Plan and the Future Land Use Map contained therein provide
that the entire Clermont Hills PUD and the Lennar portion thereof can be developed at a gross density of four
(4) dwelling units per acre. If annexation occurs. Clermont agrees to allow Lennar to develop in accordance
with the Lake County Comprehensive Plan at a density of four (4) dwelling units per gross acre and pursuant to
the provisions of the Lake County Land Development Regulations pertaining to the Clermont Hills PUD in
effect at the time of annexation. Construction of water and sewer facilities shall be in conformance with
Clermont's standards.
C. Lennar's Document Books for this community will include notice that each home purchaser will be
required to sign, at closing, a petition to the City of Clermont requesting annexation and a statement
acknowledging that the City of Clermont shall not be requested to accept the private road network for operation
and maintenance.
SECTION VI.
MUTUAL INTENT
This Agreement is a binding contract and outlines the terms to be included in drafting a formal Annexation
Ordinance.
IN WITNESS WHEREOF. the parties hereto have made and executed this Agreement on the respective
dates under each signature. Clermont through its City Council. signing by and through its Mayor, authorized to
execute same by City Council action on the 9#. day of '-1h.~ ' 1995, and Marshall Ames,
Regional President Lennar Homes, Inc., duly authorized to execute e.
CITY OF CLERMONT
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LENNAR HOMES, INC.
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STATE OF FWRlDA
COUNTY OF LAKE
The furegoing instrument was aclmowIedged before me this 6 &- day of ~-<- . 1995,
by MARSHALL AMES, REGIONAL PRESIDENT, LENNAR HOMES, INC., a Flo (Ja corporation, on behalf
of the Corporation. He is pennnßt1y known to me or who has produced . as
identification and did (did not) take an oath.
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My Com
DlVONA K. JOHNSON
MY COMMISSION' ÇC 363828
EXPIRES: May 31, 1998
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