HomeMy WebLinkAboutWD-32-93 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File#
in
Date: JULY 19, 1993 Res. # c41l- e 93
By-Law#
Report#:___WD_-_32_-3_3_ File#: B.02 . 1Q 001
Subject: SCHICKEDANZ SUBDIVISION, PHASES 1 AND 2,
PLANS 1OM-829 AND 1OM-830,
COMPLETION OF ALL OUTSTANDING WORKS,
INCLUDING STORMWATER MANAGEMENT WORKS
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report WD-93 be received;
2 . THAT the Director of Public Works be authorized FORTHWITH to
issue a 'Final Notification Letter' to Schickedanz Bros.
Limited, and their surety, stating a completion deadline of
August 13, 1993, for all outstanding works;
3 . THAT should the Works not be completed to the satisfaction of
the Director of Public Works by the aforementioned deadline,
the developer's Letters 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 Schickedanz Bros.
Limited and The Corporation of the Town of Newcastle; and
3 4
REPORT NO. : WD-32-93 PAGE 2
5 . THAT Schickedanz Bros . Limited and the Royal Bank of Canada be
advised of Council 's decision and be provided with a copy of
Report WD-32-93 .
REPORT
1.0 ATTACHMENTS
No. l: Key Map
No.2 : Letter from Developer's Solicitor
No. 3: Copy of Pertinent Excerpts from the Subdivision
Agreement
No. 4 : Copy of proposed 'Final Notification Letter' to
Developer
2.0 BACKGROUND
2 . 1 The Corporation of the Town of Newcastle entered into a
Subdivision Agreement, registered July 24, 1989, with
Schickedanz Bros . Limited to develop lands by plan of
subdivision, located in Bowmanville and described as Plans
1OM-829 and 1OM-830 (Attachment No. l) . The agreement required
the developer to construct a storm sewer system, stormwater
management works 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 1989, however the Stormwater Management Works could not be
constructed until approvals were obtained from government
agencies (Ministry of Natural Resources, Ministry of the
Environment, Central Lake Ontario Conservation Authority) . It
was agreed that the Works would commence immediately upon
receiving all necessary approvals. Since that time, the
developer and his consulting engineers have been dealing with
the various government agencies in obtaining approvals for the
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REPORT NO. : WD-32-93 PAGE 3
2 . 3 Upon receiving approvals, the developer committed to the
construction of the Stormwater Management Works during the
summer of 1993 . As a result, a public information meeting
was held on March 24, 1993, notifying the public of the scope
of the work and the scheduled construction for the summer- of
1993 (June 15 to September 15) . This meeting was co-ordinated
by the developer's consulting engineers with the full
knowledge and support of the developer, and was attended by
both the developer's engineer and Public Works Staff.
Subsequent to the comments arising from the public information
meeting, previously documented in report WD-21-93, the
engineering drawings were revised and approved by the Town of
Newcastle June 3, 1993.
2 .4 Despite having full knowledge of the importance to the
Municipality and The Northumberland and Clarington Board of
Education of having the works completed this summer and
despite having full knowledge of the extensive efforts and
commitments relating to approvals, easement procurements,
design, scheduling and public information, the developer has
now advised that he has decided not to complete the works at
this time (Attachment No. 2) . It is important to note that
until receipt of this letter, the developer had at all times
assured Town staff that the Works would be constructed
according to schedule. Due to past dealings with this
developer, Town staff accepted these assurances in good faith.
2 .5 In addition to the Stormwater Management Works, the
outstanding works include, but are not necessarily limited to:
base asphalt repairs, curbs, sidewalks, surface asphalt
paving, driveway approach paving, boulevard sodding, channel
works, street trees, street lighting and fencing.
2 . 6 The performance guarantee for these works is secured by the
Town in the form of three (3) Letters of Credit from the
i o36'
REPORT NO. : WD-32-93 PAGE 4
developer, valued at $3,865,000, $50,000 and $30,000 for a
total of $3,945, 000 . Staff estimates the cost of completing
all outstanding works to be approximately $3,860,000.
2 . 7 Under Section 5 . 17 of the Subdivision Agreement (Attachment
No. 3) , 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 (Attachment No.5) .
2 . 8 Due to the magnitude of the Works involved and the limited
construction envelope of June 15 to September 15 for the
Stormwater Management Works, the Works cannot be completed by
the Municipality this year. However, some works will be
carried out this year, such as channelization improvements to
address the floodproofing at the Galbraith walkway. 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 Letters of Credit be drawn down for their
full value.
Respectfully submitted, Recommended for presentation
to the Committee,
----------------------- 2- - -
Walter A. Evans, P.Eng. , Lawrence E. Kotsie,
Director of Public Works Chief Administrat Officer
NC*WAE*ph
July 13, 1993
Attachment
pc: Schickedanz Bros . Limited
3311 Bayview Avenue, Suite 105
Willowdale, Ontario
M2K 1G4
Fax: 223-0924
Attention: Mr. B. Schickedanz
I,
REPORT NO. : WD-32-93 PAGE 5
Royal Bank of Canada,
International Trade Centre-Ontario,
180 Wellington Street West,
Toronto, Ontario
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ATTACHMENT NO,
KEY MAP WD-32-93
3 9
SENT BY;3hlbley Righton ; 7-13-93 ; 14:04 ; 4163635339 416 623 57174 2/ 2
'; /11/U3 15:4b FAX 416 454 1676 DA'V1S,WEBb,SHLZ I�1(10�1CyD2
DAvis, WEBB & SCHUZE
BARR1S' ERE+ -SOLICITOR,5
a0NA4ult•WRNi,O.C.
Bt?iI.Ltt•RwCHRISTIAN
. i 4,N91L G,DAVIS,TO,,LL . $IURPTON
Eur[IT+YZ U
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DOU(ILM. W.A.,LL $NW-SON S'rxG1iT wn'1'
PAWHA NY,n,1L,Lc.0. iT1B 6110
BRgMNTGN,ONTARIO
t�URAT6 uLURICK, TAX 4.12
TucPHONE 016)45i-671d
NAIAN� &ilJ�LORICK,ILA.,l.i..U.
A,01't9IvVILi.R DAl'IS,y G.
FAX(416)4.54-1876
(291A-ly7Sl
V A FAX
June 11, 1993
Mr, 1Arry k0tsav, CAO
Town of Noweastla
40 Temperance street
)DOwmanville, Ontario
LIC 3A6
Deu Mr. Kotsav:
N�18L�StlO=,CM,ti., +nrt r Pror,r Z~ndingA i�'tII I1X
Bob Schickedariz has advised me that metnbers of staff, of the TGA-n of•.`gawoastic have indicated
to him that they Cxpected that work would he cOMMencing as the Stornl water management
works in the ittm Odiate future if it has not alria4dy commenced. We have advised Mr,
Schickedanz that It would be inapprapriaty to cornmence to do any work until after a f'rt)nt
,finding Agreement pursuanr to the D is in plac.a.
We would be pleased to discuss this with you at your convenience,
Youm very truly
DAVIS, WEBB & SCHULZE
k', A
Ronald K. Webb, O.C.
RKW.,cw
0c: Mr. Dennis Hafferon, Shibley, Rightan
Mx, Bob Schickad anz
ATTACHMENT N0, 2
WD-32-93
► 14
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
f-u1.1 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 (30%)
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 Agreenr>nt.
(2) In the event that any liens are filed under The 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 small forthwith upon notice from the Director reinstate the
performance or maintenance guarantee to the full value required under the terms of
the agreerrnnt.
ATTACHMENT N0. 3
WD-3293
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^ HAS' A[[M (;HAW(i[D T0)
8Vhickmdunz Bros. Limited \|liCOKPURA[ION OFTU[�UN!�|p�|(�Y�F�|�H!��T0�
8811 8myviawAvenua, Suite 105
WilInmdala, Ontario
MDK 1G4
Fax: 223-0924
Attention: Mr. B. Gchiokedanz
Dear Sir:
0E: SC0IChEDANZ PLANS IOM-829 AND IOM-830
MUNICIPALITY OF CLARINGlON
COMPLETION OF ALL OUTSTANDING WORKS
--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
Sohiohedanz Bros. Limited, that, in the opinion of the Director of Public Works,
you have defaulted in performance under the conditions of the agreement.
Due to m lack of progress on the above-noted subdivision works, you are hereby
notified that you have until August 18. 1993, to complete all outstanding umrho
to the satisfaction of the Director of Public Works, which include but are not
limited to:
1 . Completing initial roads and carrying out base asphalt repairs;
Q. Completing all appropriate curbs, sidewalks and driveway aprons;
8. Completing all boulevards, including sod and street treau;
4. Completing all fencing and atreetliQhting;
5. Completing appropriate surface asphalt, and;
G. Completing etormwuter management wmrho'
All works are to be completed to the satisfaction of the Town of Newcastle and
require the full time supervision of your consulting engineers, Marshall Macklin
Monaghan Limited.
Public Works staff will review the status of these works with your consultant
just prior -to the August 18 deadline. An k not completed 10 our
satisfaction will then be carried out by the , at your full expense, in
accordance with the terms and conditions of the Subdivision Agreement.
Yours truly, �
�
�
W. A. Evans, P En
g.
Director of Public Works
ATTACHMENT N0. 4
0AC:ph WD-32-93
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CORPORATION OF THE TOWN OF NEWCASTLE
^ors*psnxwcemrossr ' ooWwAwv/LLs ^ nwrxn/o ' L/oo*o ' (416) 623 onry ^ pxx623A169
PC: Marie Marano, Treasurer
Patti Barrie, Clerk
A. S. Cannella, Manager of Engineering
Royal Bank of Canada,
International Trade Centre-Ontario,
180 Wellington Street West,
Toronto, Ontario
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