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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 0 L Dale Park Drive DALE PARK SUBDIVISION 40M-1798 C r� a m m j Nas Roa c Dale Pa Drive �r r� � N ig �ay No.2 � SU JE a o r DRAWN BY.J.R.M DATE. OCT. 1998 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