HomeMy WebLinkAboutWD-23-01
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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Date:
REPORT
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File tJJ_J!/!I~_lJf-l93 /
MAY7,2001 Res.~1
Meeting:
Report No.: WD-23-0l
By-Law #
Subject:
ROBINSON RIDGE SUBDIVISION, PHASE 1, COURTICE
PLAN 40M-1931,
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-23-01 be received;
2. THAT the Director of Public Works be authorized to issue a 'Final Notification Letter' to
Robinson Ridge Developments Inc., and their surety (Bank of Montreal), stating a
completion deadline ofJune 30, 2001, 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 ofClarington in
accordance with the Subdivision Agreement between Robinson Ridge Developments Inc.
and the Corporation of the Municipality of Clarington; and
5. THAT Robinson Ridge Developments Inc. and the Bank of Montreal be advised of
Council's decision and be provided with a copy of Report WD-23-0l.
684
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REPORT NO.: WD-23-01
PAGE 2
REPORT
1.0 ATTACHMENTS
No.1: KeyMap
No.2: Copy of Pertinent Excerpts from the Subdivision Agreement
No.3: Copy of Previous Correspondence to Developer
No.4: Copy of 'Final Notification Letter' to Developer
2.0 BACKGROUND
2.1 The Corporation of the Municipality of Clarington entered into a Subdivision Agreement on
June 9, 1998, with Robinson Ridge Developments Inc. to develop a parcel ofland by plan of
subdivision, located in Courtice and described as Plan 40M-1931 (Attachment No.1). 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, and fencing, hereinafter referred to as the
'Works'.
2.2 The developer completed the "Initial Works" in the fall of 1998. Since then, the majority of
the lots have been built on, but the "Final Works" remain unfinished. Various complaints
and inquiries have been received from residents regarding the completion of the Works, and
the general condition of the site.
2.3 The outstanding Works include, but are not necessarily limited to: storm sewer cleaning;
general site cleanup; base asphalt repairs; surface asphalt paving; driveway approach
paving; boulevard sodding; curbs; sidewalks and street trees.
2.4 Staff attempted to have these Works completed by the developer (Attachment No.3).
Despite written commitments from the developer and their consulting engineer, the Works
remain incomplete.
685
REPORT NO.: WD-23-01
PAGE 3
3.0 REVIEW AND COMMENT
3.1 Staff estimates 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 $700,000.00.
3.2 There is presently a Letter of Credit from the developer, valued at $1,269,633.60, in favour
of the Corporation of the Municipality of Clarington (IMDCrrOR/S/293l93 Bank of
Montreal).
3.3 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 (Attachment No.4).
4.0 CONCLUSION
4.1 In the event the developer does not complete all outstanding reqnirements by June 30, 2001,
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.,
Director of Public Works
O~~c9k
Franklin Wu,
Chief Administrative Officer
AHC*SA V*ce
01/05/01
Attachments
686
REPORT NO.: WD-23-01
PAGE 4
Pc: Robinson Ridge Developments Inc.
C/o Cove Consultants Corporation
7 Brookdale Crescent
Whitby, ON
UP IJ4
Bank of Montreal
International Operations, Central
234 Simcoe Street, 3rd Floor
Toronto, ON
M5T lT4
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.1 REPORT WD-23-o1
, ATTACHMENT NO.1
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DATE: MAY 1, 2001
~.Ol.350()1
ROBINSON RIDGE DEVELOPMENTS INC.
SUBDIVISION AGREEMENT WITH
THE CORPORA 110N OF
THE MUNICIPALITY OF CLARlNGTON
ORAFT PLAN OF SUBDIVISION NO. 18T-89037
NOW
PLAN OF SUBDMSION 4OM.1931
Prepared by
DENNIS C. HEFFERON
BARRISTER & SOLICITOR
2500-130 ADELAIDE ST. W.
TORONTO, ONTARIO
M5H 2M2
689
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ATTACHMENT NO.: 2
REPORT NO.: WD-23-0l
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Subdivision Agreement
Page 57
Agreement has been issued as provided for by this Agreement. If the Owner has not
performed its obligations under this paragraph 5.13(2), the Municipality may do so
and deduct the reasonable cost thereof from the Performance Guarantee. The
Owner shall restore the Performance Guarantee to the amount otherwise required
by this Agreement, fonhwith after the Director gives the Owner written notice of the
amount of the deduction in question.
5.14 Seouence of Construction of Works
Following the issuance of an Authorization to Commence Works, the Owner shall
proceed in good faith to construct and install all of the Works referred to in the
Authorization to Commence Works continuously and in accordance with the timing and
sequence therefor set out in the Schedule of Works.
5.15 Comoletion 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, fmal coat of asphalt, fIDallot 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 lncomolete or Faulty Works and Liens
(I) 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
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Subdivision Agreement
Page 58
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, 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 worlanen, and purchase such services,
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 aU 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 fonhwith 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 undenaken 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 shaU pay the Municipality an amount equal to the cost
of all Works and components thereof, and the cost of correcting or remedying aU
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
691
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Subdivision Agreement
Page 59
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, fonhwith 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 fonhwith pay the Municipality an amount equal to
the difference between them. If the actual costs are less than the estimated costs,
the Municipality shall fonhwith 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 Uen Act, such registration, filing or notice shall constitute a default
in performance by the Owner of this Agreement. In any such case, the Director may
notify the Owner in writing of such default If the Owner fails to discharge the lien
or the claim as the case may be within ten (10) business days, excluding Saturdays,
Sundays and statutory holidays, after the giving of such notice plus any further period
of time as may be specified in the notice, then the Municipality in its absolute
discretion may (1) pay the full amount of the claim and security for costs into a
Coun of competent jurisdiction in order to obtain an order vacating such claim for
lien, (2) discharge the claim in full by paying the amount claimed or in part by
paying a ponion thereof or (3) draw the full amount of the claim in cash from a
letter of credit deposited with the Municipality as the security for the Performance
Guarantee and hold the cash in a deposit account of the Municipality as the security
for the Performance Guarantee in respect of the claim in question. The Municipality
may draw on and appropriate the whole or any portiones) of the Performance
Guarantee and the Security for the Maintenance Guarantee for the purpose of
making payment under this paragraph 5.17(2). The Owner shall indemnify the
Municipality against the costs and expense incurred by the Municipality in making
a payment pursuant to this paragraph 5.17(2) forthwith after the Director gives the
Owner written notice requiring him to do so. In the event that the Municipality
draws on and appropriates any ponion of the Performance Guarantee or the Security
for the Maintenance Guarantee for any of the aforesaid purposes, fonhwith after the
Director gives written notice to the Owner requiring it to do so, the Owner shall
reinstate the Performance Guarantee and/or the Security for the Maintenance
Guarantee, as the case may be, to the full amount( s) required under the provisions
of this Agreement.
692
November 17,2000
_e/a;r;'gl';;n
ONTARIO
Robinson Ridge Developments Inc.
C/o Cove Road Consultants Corporation
7 Brookdale Crescent
Whitby Ontario
UP IJ4
ATTN: MR. STEVEN FLEURY
Dear Mr. Fleury:
RE: ROBINSON RIDGE SUBDIVISION PHASE 1, PLAN 40M-1931
COMPLETION OF WORKS
In accordance with Section 5.17 ofthe development agreement between the Corporation of the
Municipality of Clarington and Robinson Ridge Developments Inc., this is to notify you that the
Director of Public Works has deemed that an unreasonable delay has occurred in the construction
and completion ofthe "Works".
TheMl.\Ilicipality has received various complaints and enquiries from residents to have the works
completeli however the works remains outstanding.
You are, therefore, hereby advised that the securities presently held by the Municipality will be
drawn in accordance with the terms and conditions of the Agreement, and that the agreement is
presently considered to be "not in good standing". The funds will be immediately used to
complete all outstanding works deemed urgent by the Director.
By copy of!his correspondence, G.M. Semas and Associates Limited are requested to
immediately aFl'ange for completion of these urgent works on behalf of the Municipality.
Furthermore, a report will be presented to Municipal Council recommending the Municipality
use the remaining securities to complete all outstanding works, as provided for in the
Development Agreement, in addition to taking any additional action to protect the interests of the
re~identsand the Municipality.
Yours truly,
~
A.S, Cannella,C.E.T.
Manager of Engineering
ASC/ce
Pc:
N.. Clark, Engineering Services Supervisor
L. Taylor, Manager, Development Review Branch
A. Coolen, Construction Co-ordinator
N. Mensink,.G.M. Semas and Associates Ltd.
ATTACHMENT NO.: 3
REPORT NO.: WD-2~
CORPORATION OF THE MUNICIPALITY OF CLARINGTON W
40 TEMPERANCE STREET. BOWMANVILLE. ONTARIO, L1C 3A6' (905) 623-3379' FAX 623-4169
WEBSITE: www.municipality.claringlon.on.ca
693
RECYCUDPAPER
,
_e/a;r:'gl';;n
ONTARIO
Apri127,200l
Robinson Ridge Developments Inc.
C/O Cove Consultants Corporation
7 Brookdale Crescent
Whitby, ON
LIP IJ4
Dear Sirs:
RE: ROBINSON RIDGE SUBDIVISION PHASE I, COURTICE
MUNICIPALITY OF CLARlNGTON, PLAN 40M-1931
--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 Robinson Ridge Developments 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 June
30,2001, to complete all outstanding works, which include but are not limited to:
1. Cleaning all storm sewers;
2. General site cleanup;
3. Carrying out base asphalt repairs;
4. Completing all curbs, sidewalks and driveway aprons;
5. Completing all boulevards, including sod and street trees;
6. Completing surface asphalt; and
7. Completing fencing;
All works are to be completed to the satisfaction of the Municipality of Clarington and require the full time
supervision of your consulting engineers, G.M Semas & Associates Limited.
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 conditims of the Subdivision Agreement.
6q4
ATTACHMENT NO.: 4
REPORT NO.: WD~
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET' BOWMANVILLE. ONT,t..RIO' L1C 3A5. 1905) 623-3379' FAX 623-4169
WEBSITE wwwmL;nlcipalty_c'<lci1gtor on ca
IIECYClEOPAPER
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-2 -
Yours truly,
Stephen A. Vokes, P. Eng.,
Director of Public Works
AHC/SAV/ce
pc: Marie Marano, Treasurer
Patti Barrie, Clerk
A.S. Cannella, Manager of Engineering
L. Taylor, Manager of Development Review, Planning
Bank of Montreal
695