HomeMy WebLinkAboutWD-53-98 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMFNISTRATION COMMITTEE File## �
Date: October 19, 1998 Res. #C PA "5(,19-7
WD-53-98 By-Law#
Report : File :
Subject: DALE PARK SUBDIVISION, COURTICE
PLANS 40M-1798 AND 40M-1799
COMPLETION OF ALL OUTSTANDING WORKS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report WD-53-98 be received for information;
2. THAT the Director of Public Works be authorized to issue a `Final Notification Letter' to
Reward Building and Development Inc., and their surety, stating a completion deadline of
November 15, 1998, for all outstanding works;
3. THAT upon expiration of the aforementioned deadline, the developer's Letter of Credit be
drawn down, in the full amount;
4. THAT the Director be authorized to expend said monies pursuant to all obligations incurred
or to be incurred by the Corporation of the Municipality of Clarington in accordance with
the Subdivision Agreement between Reward Building and Development Inc. and the
Corporation of the Municipality of Clarington; and
5. THAT Reward Building and Development Inc. and Royal Bank of Canada be advised of
Council's decision and be provided with a copy of Report WD-53-98.
RECYCLED RECYCLE -
THI515 PRIMEDO RECYCLED FADER
REPORT NO.: WD-53-98 PAGE 2
REPORT
1.0 ATTACHMENTS
No. 1: Key Map
No. 2: Copy of Pertinent Excerpts from the Subdivision Agreement
No. 3: Copy of`Final Notification Letter' to Developer
2.0 BACKGROUND
2.1 The Corporation of the Municipality of Clarington entered into two (2) Subdivision
Agreements on May 6, 1994 with Reward Building and Development Inc. to
develop two adjacent parcels of land by plans of subdivision, located in Courtice
and described as Plans 40M-1798 and 40M-1799 (Attachment No. 1). The
agreements required the developer to construct a storm sewer system and all
roadworks, including hot-mix paving, curbs, sidewalks, topsoil and sodding of
boulevards,paving of driveway entrances, street lighting and street trees,hereinafter
referred to as the `Works.'
2.2 The initial works were completed by the developer in the fall of 1994. Since then,
all of the homes have been completed,but the final works remain unfinished.
2.3 Various complaints and inquiries have been received from residents regarding the
completion of the works. Staff has tried to contact the developer on numerous
occasions,but all attempts have been unsuccessful.
2.4 The outstanding works include, but are not necessarily limited to storm sewer
repairs; base asphalt repairs; surface asphalt paving; driveway approach paving;
1 `167
REPORT NO.: WD-53-98 PAGE 3
boulevard sodding; curbs; sidewalks and street trees.
2.5 There is presently a Letter of Credit from the developer, valued at $91,069.66, in
favour of the Corporation of the Municipality of Clarington (P72314T06176 Royal
Bank).
2.6 Staff has estimated the costs of completing all outstanding works (including legal
costs, contingencies, engineering and management fees) in accordance with the
provisions of Section 5.17 of the Subdivision Agreement, to be approximately
$90,000.00.
2.7 Under Section 5.17 of the Subdivision Agreement (Attachment No. 2), the Director
of Public Works has the authority to order the work completed at the expense of the
developer, subject to the approval of Council and upon written `Notice being given
to the developer and his surety(refer to Attachment No. 3).
2.8 In the event the developer does not complete all outstanding requirements by
November 15, 1998, the Municipality will proceed with these works at the full
expense of the developer. In order to protect the Municipality's interests and ensure
there are no delays in accessing the developer's funds, it is recommended that the
Letter of Credit be drawn down for its full value.
Respectfully submitted, Reviewed by
Stephen A.Vokes,P. Eng., W. H. Stockwell,
Director of Public Works Chief Administrative Officer
REPORT NO.: WD-53-98 PAGE 4
SAV/ASC/wc
attachments
13/10/98
PC: Reward Building and Development Inc.
Royal Bank of Canada
9
DALE PARK SUBDIVISION
40M-1799
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a REPORT WD-53-98
D KEY MAP ATTACHMENT NO.1
Subdivision Agreement
Page 46
5.15 completion Time for onstrnc+� n of Works
Within two (2)Years of the date of the issuance of an Authorization to Commence
Works, the Owner shall complete the construction and installation of all of the Works
authorized in such Authorization to Commence Works with the exception of the curbs,
sidewalks, final coat of asphalt, final lot grading, driveway approaches, sodding and tree
planting which may be completed later if done so in accordance with the provisions of the
Schedule of Works.
5.16 Additional Work
Until the conclusion of the Maintenance Guarantee Period referable thereto, if in
the opinion of the Director, any incidental additional work is required to provide for the
adequate operation, functioning and maintenance of any of the Works, the Owner, at its
cost, shall construct and install such additional facilities and perform such additional work
as the Director may request from time to time by written notice given to the Owner.
5.17 Incomplete or Faulty Works and Liens
(1) Without derogating from the other provisions of this Agreement, if, in the opinion
of the Director, (1) the Owner is not constructing and installing or causing to be
constructed or installed any of the Works required by this Agreement so that it or
they will be completed within the time specified for such completion in the Schedule
of Works, or (2) the Works or any component(s) thereof are being improperly
constructed or installed, or (3) the Owner neglects or abandons the said Works or
any part of them before completion, or (4) unreasonable delay occurs in the
construction or installation of the Works, or(5)for any other reason the Works are
not being constructed or installed properly and promptly and in full compliance with
the provisions of this Agreement,or(6)the Owner neglects or refuses to reconstruct
or reinstall any of the Works or component(s) thereof which may be rejected by the
Director'as being defective, deficient or unsuitable, or (7) the Owner otherwise
defaults in performance of this Agreement,then in any such case after first receiving
authorization to do so by the Municipality Council,the Director may give the Owner
notice in writing of his opinion respecting any such matter. Following the later to
occur of the expiry of ten(10) business days, excluding Saturdays and Sundays and
statutory,holidays following the giving of such notice plus the expiry of any additional
period as may be specified in the notice given to the Owner by the Director, the
MnnI('11)IIII(y, nl Ilie (IoHl find axpomo nl' Ilin 1►wlial, witty 0110001, q �ainli��li�t,
Supplier or services of itlgietials and such workmen, and purchase such services,
ATTACM9ENT NO.: 2
p REPORT WD-53-98
Subdivision Agreement
Page 47
supplies and/or services as in the opinion of the Director are required for the
completion of the construction and installation of the Works and all components
thereof and the performance of all covenants of the Owner relating to the Works as
provided by this Agreement. In cases of an emergency or urgency, or in order to
preserve the integrity of the Works or any component thereof as determined by the
Director in his absolute discretion, any deficiency(s) or-defect(s) in the Works, and
any failure to complete the Works and all components thereof in accordance with
this Agreement may be corrected, remedied or completed by the Municipality its
contractors, suppliers and employees at the cost of the Owner without prior notice
to the Owner, provided that forthwith after the Municipality so acts, the Director
shall give written notice to the Owner of his determination as aforesaid, describing
the action taken by the Director, and the cost of correcting or remedying the
deficiency or default in question or the cost of completing the Works and the
components thereof,as the'case may be. For the purposes of this paragraph 5.17(1)
the cost of any work which the Municipality undertakes under this paragraph 5.17(1)
shall be determined by the Director in his absolute discretion. It is understood and
agreed by the Parties that the costs for which the Owner is responsible under this
paragraph 5.17(1)shall include a management'fee payable to the Municipality either
of thirty(30%)percent of the contractor's charges to the Municipality(including any
charges for overhead and profit)or,if such work is undertaken by the Municipality,
thirty (30%) percent of all costs incurred by the Municipality to correct or remedy
the deficiencies or defect or to complete the Works and all components thereof as
the case may be. The Owner shall pay the Municipality an amount equal to the cost
of all Works and components thereof; and the cost of correcting or remedying all
deficiencies and defects referred to in'this paragraph 5.17(1) which have been
incurred by the Municipality or are estimated in the Director's absolute discretion
to be likely to be incurred by the Municipality forthwith after the Director gives the
Owner written demand for payment of such cost. If the amount paid is based on the
Director's estimate as aforesaid,forthwith after actual costs are known the Director
shall give the Owner written notice thereof. If the actual costs are more than the
estimated costs, the Owner shall forthwith pay the Municipality an amount equal to
the difference between them. If the actual costs.are less than the estimated costs,
the Municipality shall forthwith refund the difference between them to the Owner.
(2) In the event that (1) a claim for a Iien in respect of the Works or any component
thereof is registered against the title to any land vested or which should have been
vested in the Municipality or is filed with the Municipality, or (2) the Municipality
receives written notice of a claim 4-an all beneficiary of a statutory trust under
the Construction Lien Act,such registration,filing or notice shall constitute a default
u i o�
® ONTARIO
October 13, 1998
Reward Building and Development Inc.
40 Sylvan Valleyway
Suite 311
North York, ON M5M 4M3
Dear Sir:
RE: DALE PARK SUBDIVISION
MUNICIPALITY OF CLARINGTON
PLAN 40M-1798 AND 40M-1799
FINAL NOTIFICATION LETTER
This letter will serve as notice, as stipulated under Section 5.17 of the Subdivision
Agreement between the Corporation of the Municipality of Clarington and Reward
Building and Development Inc. that, in the opinion of the Director of Public Works, you
have defaulted in performance under the conditions of the agreement.
Due to a lack of progress on the above-noted subdivision,you are hereby notified that
you have until November 15, 1998, to complete all outstanding works,which include but
are not limited to:
1. Rectifying all storm sewer deficiencies;
2. Carrying out base asphalt repairs;
3. Completing all curbs, sidewalks, and driveway aprons;
4. Completing all boulevards, including sod and street trees; and
5. Completing surface asphalt
All works are to be completed to the satisfaction of the Municipality of Clarington and
require the full time supervision of your consulting engineers,D.G. Biddle and
Associates Ltd.
Public Works staff will review the status of these works with your consultant just prior to
the above-noted deadline. Any works not completed to our satisfaction will then be
carried out by the Municipality, at your full expense, in accordance with the terms and
conditions of the Subdivision Agreement.
ATTACFMENT NO.: 3
REPORT WD-53-98
3
CORPORATION F THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET- BOWMANVELLE -ONTARIO . LIC 3A6 • (905) 623-3379 • FAX 623-4569 RECYCL€DPAaER
Reward Building and Development Inc. -2- October 13, 1998
Yours truly,
Stephen A. Vokes,P.Eng.
Director of Public Works
SAV/wc
PC: M. Marano, Treasurer
P.Barrie, Town Clerk
A.S. Cannella,Manager of Engineering
L. Taylor,Development Review Branch
- ► .f 4
Subdivision Agreement
Page 46
5.15 Completion Time for Construction of Works
Within two (2) years of the date of the issuance of an Authorization to Commence
Works, the Owner shall complete the'construction and installation of all of the Works
authorized in such Authorization to Commence Works with the exception of the curbs,
sidewalks, final coat of asphalt, final lot grading, driveway approaches, sodding and tree
planting which may be completed later if done so in accordance with the provisions of the
Schedule of Works.
5.16 Additional Work
Until the conclusion of the Maintenance Guarantee Period referable thereto, if in
the opinion of the Director, any incidental additional work is required to provide for the
adequate operation, functioning and maintenance of any of the Works, the Owner, at its
cost, shall construct and install such additional facilities and perform such additional work
as the Director may request from time to time by written notice given to the Owner.
5.17 Incomplete or Faulty Works and Liens
(1) Without derogating from the other provisions of this Agreement, if, in the opinion
of the Director, (1) the Owner is not constructing and installing or causing to be
constructed or installed any of the Works required by this Agreement so that it or
they will be completed within the time specified for such completion in the Schedule
of Works, or (2) 'the Works or any component(s) thereof are being improperly
constructed or installed, or (3) the Owner neglects or abandons the said Works or
any part of them before completion, or (4) unreasonable delay occurs in the
construction or installation of the Works, or (5) for any other reason the Works are
not being constructed or installed properly and promptly and in full compliance with
the provisions of this Agreement, or (6) the Owner neglects or refuses to reconstruct
or reinstall any of the Works or component(s) thereof which may be rejected by the
Director 'as being defective, deficient or unsuitable, or (7) the Owner otherwise
defaults in performance of this Agreement, then in any such case after first receiving
authorization to do so by the Municipality Council, the Director may give the Owner
notice in writing of his opinion respecting any such matter. Following the later to
occur of the expiry of ten (10) business days, excluding Saturdays and Sundays and
statutory.holidays following the giving of such notice plus the expiry of any additional
period as may be specified in the notice given to the Owner by the Director, the
Municipality, at the cost and expense of the Owner, may engage a contractor,
supplier of services or materials and such workmen, and purchase such services,
ATTACHMENT NO.: 2
REPORT WD-53-98
Subdivision Agreement Page 47
supplies and/or services as in the opinion of the Director are required for the
completion of the construction and installation of the Works and all components
thereof and the performance of all covenants of the Owner relating to the Works as
provided by this Agreement. In cases of an emergency or urgency, or in order to
preserve the integrity of the Works or any component thereof as determined by the
Director in his absolute discretion, any deficiency(s) or-defect(s) in the Works, and
any failure to complete the Works and all components thereof in accordance with
this Agreement may be corrected, remedied or completed by the Municipality its
contractors, suppliers and employees at the cost of the Owner without prior notice
to the Owner, provided that forthwith after the Municipality so acts, the Director
shall give written notice to the Owner of his determination as aforesaid, describing
the action taken by the Director, and the cost of correcting or remedying the
deficiency or default in question or the cost of completing the Works and the
components thereof, as the case may be. For the purposes of this paragraph.5.17(1)
the cost of any work which the Municipality undertakes under this paragraph 5.17(1)
shall be determined by the Director in his absolute discretion. It is understood and
agreed by the Parties that the costs for which.the Owner is responsible under this
paragraph 5.17(1) shall include a management fee payable to the Municipality either
of thirty (30%)percent of the contractor's charges to the Municipality (including any
charges for overhead and profit) or, if such work is undertaken by the Municipality,
thirty (30%) percent of all costs incurred by the Municipality to correct or remedy
the deficiencies or defect or to complete the Works and all components thereof as
the case may be. The Owner shall pay the Municipality an amount equal to the cost
of all Works and components the and the cost of correcting or remedying all
deficiencies and defects referred to id this paragraph 5.17(1) which have been
incurred by the Municipality or are estimated in the Director's absolute discretion
to be likely to be incurred by the Municipality forthwith after the Director gives the
Owner written demand for payment of such cost. If the amount paid is based on the
Director's estimate as aforesaid, forthwith after actual costs are known the Director
shall give the Owner written notice thereof. If the actual costs are more than the
estimated costs, the Owner shall forthwith pay the Municipality an amount equal to
the difference between them. If the actual costs are less than the estimated costs,
the Municipality.shall forthwith refund the difference between them to the Owner.
(2) In the event that (1) a claim for a lien in respect of the Works or any component
thereof is registered against the title to any land vested or which should have been
vested in the Municipality or is filed with the Municipality, or (2) the Municipality
receives written notice of a claim of.an alleged beneficiary of a statutory trust under
the Construction Lien Act, such registration, filing or notice shall constitute a default