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Home My WebLink AboutWD-69-92 if THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: SEPTEMBER 8, 1992 Res. #CCU 6e() va. Report#: File #: _CA 02 .26 . 002 By-Law# Subject: CHALLENGER PARK ESTATES SUBDIVISION, PI-AN 1OM-827, 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-69-92 be received; 2 . THAT the Director of Public Works be authorized FORTHWITH to issue a 'Final Notification Letter' to 772503 Ontario Ltd. , and their surety, stating a completion deadline of September 28, 1992, 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 Town of Newcastle in accordance with the Subdivision Agreement between 772503 Ontario Ltd. and the Corporation of the Town of Newcastle; and 5. THAT 772503 Ontario Ltd. and the Canadian Imperial Bank of Commerce be advised of Council's decision and be provided with a copy of Report WD-69-92 . /2 REPORT NO. : WD-69-92 PAGE 2 REPORT 1.0 ATTACHMENTS No. l: 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 Town of Newcastle entered into a Subdivision Agreement, registered May 26, 1989, with 772503 Ontario Ltd. to develop lands by plan of subdivision, located in Newcastle Village and described as Plan 1OM-827 (Attachment No. l) . The agreement 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, noise attentuation and board fencing, hereinafter referred to as the 'Works' . 2 .2 The initial works were completed by the developer in the fall of 1989 . Since that time, there have been unreasonable delays in completing all of the remaining works and various complaints have been received from residents in that regard. The developer has not been directly available to discuss matters with the Town and despite advising his representative and their engineering consultants of the urgency in completing all outstanding items, very little action has occurred. 2 . 3 The outstanding works include, but are not necessarily limited to: storm sewer repairs; base asphalt repairs; surface asphalt paving; driveway approach paving; street trees; sound barrier fencing; and roadworks on Arthur Street. i 2 .4 In addition, the Town has received notice from the general contractor's solicitor that payment in the amount of $143, 823 . 02 is outstanding. Although this is not a 'Notice . . . /3 10 REPORT NO. : WD-69-92 PAGE 3 of Lien' under the Construction Liens Act, the Town may be subject to financial obligations should the matter go to court. 2 .5 There is presently a Letter of Credit from the developer, valued at $767,959 . 02, in favour of the Corporation of the Town of Newcastle. Staff have estimated the costs of completing all outstanding works (including contingencies, engineering and management fees) in accordance with the provisions of Section 5 . 17 of the Subdivision Agreement, in addition to satisfying the financial claim, should it prove valid, to be approximately $750,000 . 2 . 6 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 . 7 In the event the developer does not complete all outstanding requirements by September 28, 19 9 2, the Town will proceed with these works at the full expense of the developer. In order to protect the Town'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, Recommended for presentation to the Committee, ---------------- ---�--- �'� ------------- r Walter A. Evans, P.Eng. , Lawrence E. o seff, Director of Public Works Chief Adn►in',st,ative Officer NC*WAE*ph August 27 , 1992 Attachment REPORT NO. : WD-69-92 PAGE 4 pc: 772503 Ontario Ltd. 21 Coventry Road, Brampton, Ontario L6T 4VT Canadian Imperial Bank of Commerce, International Banking Centre, Commerce Court, Toronto, Ontario M5L 1H1 I I I I 011CHALLENCER PARK ESTATES I OM-827 ................ :::::: .................................. .................................... .... ... .........::CgNgp/q� ............ ST. pq C/FI R ct� .. h�q :;:z:: : ......:: T:.::::::::::: :1 Q : . RCHARD S ': ::::: :::::::' '':::::::::::: ::::::....:::::::::..: : ::::::::::::::::::::: .. .EIGHTS : :::::: � RIVE :::� L�tl:�A lJ:L.; : 5 :: ... 4...... :::::: .. :i C°#A ttE : : :i:: ::: :... : •::.::.:::::••••.••••••::: .. _: ::: : . . ........... . K l . GT AI.. . k : ........................................::::: ..... ....................................................0......................... ..... .. ............................................................................ KING ST. 6 4 �Q. ),A--v - L ea. N6 67. JF-1 SUBJECT ' DRAN RY: JM DATE: AUG. 1992 PFATTACHMENT N0. I E KEY SAP - WD-69-92 � 1U1 C"111. VL VILV • VL .. ✓ u.r..� wi✓ �.✓..✓...L UV -�.v ........ �...`.._....�.�`..... .`__ ..__.J�__.__.___ _.. Drawings as approved by the Director. No variation from the Engineering Drawings shall be permitted unless such variation is authorized in writing by the Director. All construction on the said Lands shall be carried out in accordance with the regulations for construction as set out in Schedule "L" hereto. 5.14 SEQUENCE OF CONSTRUCTION AND INSTALLATION The Owner shall, upon the issuance of an Authorization to Commence Works, proceed to construct and install all of the Works continuously and as required by the approved Schedule of Works. 5.15 COMPLETION TIME FOR CONSTRUCTION AND INSTALLATION The Owner shall, within two (2) years of the date of the issuance of an Authorization to Commence Works, 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 an( tree planting. 5.16 ADDITIONAL FACILITIES OR WORK REQUIRED If, in the opinion of the Director, any minor or incidental additional work is required to provide for the adequate operation and functioning of the Works, the Owner shall, until the conclusion of the maintenance guarantee period, construct or instal] such additional facilities and perform such additional work as the town may request from time to time. 5.17 INCOMPLETE OR FAULTY WORK (1) If, in the opinion of the Director, the Owner is not executing or causing to be executed the Work required by this Agreement, in such a manner that it will be completed within the time specified for such completion, or if the said Work is being improperly done, or if the Owner neglects or abandons the said Work, or any part of it, before completion, or unreasonably delays the execution of the same, or if in any other manner the said Work is not being done properly and promptly in full compliance with the provisions of this Agreement, or in the event that the Owner neglects or refuses to do over again any Work which may be rejected by the Director as defective or unsuitable, or if the Owner in any other manner in the opinion of the Director may default in performance under this Agreement, then in any such case the Director on the authority of the council of the Town may notify the Owner and his surety in writing of such default or neglect and within ten (10) clear days after the giving of such notice or within such further period of time as may be specified in the notice, the Town Council shall thereupon have full authority and power immediately at its option to employ a contractor or such workmen as in the opinion of the Director shall be required for the proper completion of such work at the cost and expense of the Owner or his surety, or both. In cases of emergency, in the opinion of the Director, such work may be done without prior notice, but the Owner shall forthwith be notified. The cost of such work shall be calculated by the Director, whose decision shall be final. It is understood and agreed that the total costs shall include a management fee of thirty (30%) percent of a contractor's charges to the Town (including any charges for overhead and profit) or, if such work is undertaken by the Town, thirty (300) percent of all charges incurred to complete the work, it being hereby declared and agreed that the assuming by the Owner of the obligations imposed by this clause is one of the considerations without which the Municipality would not have executed this Agreement. ATTACHMENT NO. 2 1 �4, WD-69-92 In the event thaL'' any liens are filed under Thy Construction Lien Act such filings shall constitute a default in performance under this agreement, then in any such case the Director may notify the Owner and his surety in writing of such default and if the Owner fails to satisfy claims of the lien claimant within ten (10) clear days after the giving of such notice or within such further period of time as may be specified in the notice, then the Municipal Council shall thereupon have full authority and power immediately at its option, to pay the full amount of the claim and costs into an appropriate court having jurisdiction and the Municipality shall be authorized to use all or part of any performance or maintenance guarantee to do so. In the event that the Municipality draws upon the performance or maintenance guarantee to satisfy the claims and costs of any lien claimant, the Owner shall forthwith upon notice from the Director reinstate the performance or maintenance guarantee to the full value required under the terms of the agreement. 5.18 ENTRY FOR EMERGENCY REPAIRS The Owner agrees that, at any time and from time to time, employees or agents or the Town may enter the said Lands for the purpose of making emergency repairs to any of the Works. Such entry and repairing shall not be deemed an acceptance of any of the Works by the Town, nor an assumption by the Town of any liability in connection therewith, nor a release of the Owner from any of its obligations under this Agreement. 5.19 DAMAGES OR RELOCATION OF EXISTING SERVICES OR NEIGHBOURING WELLS (1) The Owner agrees to pay the cost of repairing any damage to any services which, without limiting the generality of the foregoing, shall include road, water, electrical, gas, telephone, cable television or sewer systems, and the cost of relocating any existing services, caused by the development of the Lands or the construction or installation of the Works on the Lands which are required by this Agreement, provided all work is to be done to the satisfaction of the Director and/or authorities responsible for such services. The Owner . further agrees. to pay the cost of moving any of the Works constructed or installed under this Agreement in driveways or so close thereto as in the opinion of the Director will interfere with the use of the driveway. 5.20 USE OF WORKS BY TOWN The Owner agrees that any of the Works may be used by the Town or other authorized persons, for the purposes for which the Works are designed. Such use of any of the works shall not be deemed an acceptance of any of the Works by the Town nor an assumption by the Town of any liability in connection therewith, nor a release of the Owner from any of his obligations under this Agreement. 5.21 MAINTENANCE OF ROADS AFTER COMPLETION (1) Notwithstanding any other requirement in this Agreement to maintain the Works, if any building on the said Lands is occupied, the Owner shall maintain all of the roads, which are required to be constructed and which provide access to such building, until a Certificate of Acceptance has been issued for such road. The Owner shall: (a) maintain the roads at all times in a well drained, dust and mud free condition, fit for all normal vehicular traffic, to the approval of the Director; and (b) during the course of installation of the Works and Utilities provide and maintain safe and adequate access to all occupied buildings. (c) erect a sign to indicate the "Unassumed Road" to the satisfaction of the Director of Public Works. i THE TOWN Of- eweast(e ONTARIO September 9, 1992 772503 Ontario Ltd. 21 Coventry Road, Brampton, Ontario L6T 4VT Dear Sirs: RE: CHALLENGER PARK ESTATES SUBDIVISION TOWN OF NEWCASTLE, PLAN 1OM-827 --FINAL NOTIFICATION LETTER-- This letter will serve as notice, as stipulated under Section 5.17 of the Subdivision Agreement between the Corporation of the Town of Newcastle and 772503 Ontario Ltd. , 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 September 28, 1992, 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; 5. Completing all noise attenuation and chain link fencing; 6. Completing surface asphalt; and 7. Completing Arthur Street roadworks. All works are to be completed to the satisfaction of the Town of Newcastle and require the full time supervision of your consulting engineers, G. M. Sernas and Associates Ltd. Public Works' staff will review the status of these works with your consultant just prior to the September 28 deadline. Any works not completed to our satisfaction will then be carried out by the Town, at your full expense, in accordance with the terms and conditions of the Subdivision Agreement. Yours truly, W. A. Evans, P. Eng. Director of Public Works NAC:ph PC: Marie Marano, Treasurer Pattie Barrie, Clerk A. S. Cannella, Manager of Engineering Canadian Imperial Bank of Commerce, ATTACHMENT NO. 3 International Banking Centre, � � 6 WD-69-92 Commerce Court, Toronto, Ontario M5L 1H1 � CORPORATION OF THE TOWN OF NEWCASTLE 4U TEMPERANCE STREET • BOWMANVIL LE • ONTARIO • L 1 C 3A6 • (4 16) 623.3379 • FAX 623-4169 RECYCLED RMER