1997-086 To Adopt a Standard Pre-Service Agreement Format
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
BY-LAW NO. 97-86
Being a By-Law to Adopt a Standard Pre-Service Agreement Format.
WHEREAS The Corporation of the Township of Oro-Medonte deems it
desirable to adopt a Standard Pre-Service Agreement Format;
NOW THEREFORE the Corporation of the Township of Oro-Medonte
hereby enacts as follows:
1. That the attached Standard Pre-service Agreement Format
titled Schedule "An attached hereto and forming part of this
By-law shall be the format used when entering into a Pre-
Service Agreement.
2. Any previous by-law or portion thereof inconsistent herewith
is hereby repealed.
3. This By-law shall come into force and take effect on the
final passing thereof.
By-law read a first and second time this 15th day of October,
1997.
By-law read a third time and finally passed this 15th day of
October, 1997.
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
f!--~7
Mayor, Ian
I
M~~
Beard
~~L /!~
Clerk, Lynda Aiken
.
PRE-SERVICING AGREEMENT
THIS AGREEMENT MADE BETWEEN:
.
(hereinafter called the "Township")
- and -
(hereinafter called the "Developer")
WHEREAS the Developer is the registered owner ofthe lands described in Schedule "A" attached (the
"Subdivision Lands");
AND WHEREAS the Developer desires to commence installing municipal services with the Subdivision Lands
prior to the registration of the Plan of Subdivision and the execution of the Subdivision Agreement with the
Township;
NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS:
I. ASSUMPTION OF RISK BY DEVELOPER
1.1 The Developer agrees to assume all risk in commencing instaJlation of Township services on the Subdivision
Lands, prior to the execution of a Subdivision Agreement with the Township, and the registration ofthe Plan
of Subdivision. The Developer hereby releases the Township, its agents, servants and employees ITom and
against all actions, suits, claims and demands whatsoever which may arise either directly or indirectly as a
result of the installation of Township services by the Developer.
1.2 The Developer acknowledges and agrees that, in the event that a Subdivision Agreement with the Township is
not finalized for any reason and the Plan of Subdivision is not registered as a result, pre-servicing of the
Subdivision Lands shall cease immediately.
1.3 The Developer acknowledges and agrees that engineering design plans and specification for the Township
services to be installed by the Developer, as submitted to the Township, in accordance with the terms of this
Agreement, may require further amendment as a result of requirements imposed by the Township under the
terms of the Subdivision Agreement to be entered into for the Subdivision Lands. The Developer covenants
and agrees to assume all risk and responsibility for the cost of required revisions to the engineering design
drawings and specifications for the Township services, together with the costs ofmodil)1ng, reconstructing,
removing and/or replacing the Township services installed by the Developer pursuant to the terms of this
Agreement, in order to satisry the requirements fmally imposed by the Township at the time that the
Subdivision Agreement is entered into.
1.4 The Developer acknowledges and agrees this approval relates only to the installation of the following
Township services:
1) Storm Drainage Works;
2) Roadway Excavation;
3) Placing of Granular "B" with the approval ITom the Township Engineer.
1.5
. 1.6
1.7
2.
2.1
The Developer acknowledges and agrees that no work shall be carried out on any existing Township right-of-
way, and that there shall be no connection to services on any Township right-of-way.
The Developer acknowledges and agrees that no work shall be carried out on lands not owned by the
Developer, without the written consent ofthe owner to be filed with and approved by the Township.
The Developer acknowledges and agrees that all Servicing Plans must comply with Federal, Provincial and
Township provisions.
REQUIREMENTS PRIOR TO THE COMMENCEMENT OF WORK
The Developer agrees to submit the following to the Township, in a form satisfactory to the Township, prior to
the commencement of the installation of Township services on the Subdivision Lands:
A) A Jetter ftom a quaUfied engineer experienced in the field of Township services confirming:
(I) Retainer - That their firm has been retained by the Developers to act as consulting
engineers for the (name of project);
(2) Terms of Retainer - The terms oftheir retainer with the Developer as follows:
.
a) Plans and Specifications - Prepare plans and specifications for the construction of
Township services;
b) Cost Estimates - Prepare cost estimates for the Township services to be constructed
ITom the drawings;
c) Approvals - Obtain all necessary approvals to construct;
d) Co-ordination - Co-ordinate the installation of Township services to avoid conflicts
with regard to telephone, cable T. V. and Township services;
e) On-Site Inspections - Insure that all on-site inspections of Township service
installations are conducted by the Developer's Consulting Engineers at all times
during construction;
f) As Constructed Drawings - Submit certified "as-constructed" drawings after
acceptance of the Township services;
g) Change in Retainer - If, at any time during the project:
i) the terms oftheir retainer are changed by the Developer, or
ii) if they become aware that they will not be able to provide "as-constructed"
drawings, they will notify the Township within twenty-four (24) hours.
h) Erosion and Siltation Control- Insure all necessary precautions are taken to prevent
erosion and sedimentation of sewers, ditches, culverts, slopes, etc. Both within the
subdivision and downstream, prior to and during construction.
B) Confirmation letters are to be filed with the Township Clerk, confirming the following:
(I) The Township Engineer has no objection to the pre-servicing;
(2) The Planning Department has no objection to the pre-servicing;
(3) The Township Solicitors have no legal objections to the pre-servicing.
C) Payment of cash or certified cheque required to cover the cost ofthe Township's Lawyer and Planner,
for all costs involved in processing the Pre-Servicing Agreement, and for all the Township's
Engineers for checking of plans, specifications and inspection on behalf of the Township for the sum
of............ ...... Dollars ($ ,000.00). As accounts are received ftom the Township Planner,
Lawyer, and Engineer, they will be paid by the Township and then submitted to the developer for
reimbursement within thirty (30) days. In the event that the deposit is drawn down to a IeveJ of
$................. Thousand Dollars ($ ,000.00) or less, and the Developer does not pay the accounts
within thirty (30) days, it is hereby understood and agreed that the Developer is in default of this
agreement and all work must cease.
D) A Letter of Credit, as per Schedule "C", in the amount set out in Schedule "B", attached, as security
to ensure the due complction of the Township services to be constructed by the Developer, and as
security to be held by the Township for the warranty periods to be more particularly described in the
Subdivision Agreement for the Subdivision Lands. The said Letter of Credit shall provide that if in
the sole opinion of the Township default under the terms of this agreement has taken place, the said
Letter of Credit may thereupon be drawn upon in whole or in part.
E) A certified copy of an insurance poUcy, or a certificate of insurance, confirming comprehensive
general liability in the amount of Five Million Dollars, ($5,000,000.00), naming the Township as co-
insured, and containing the following additional provisions or endorsements:
.
I) Products/Completed Operations provisions;
2) Cross-liability clause;
3) Blasting included, only if done by independent contractor;
4) Notice of Cancellation - a provision that the insurance company agrees to notify
the Township within fifteen (15) days in advance of any cancellation or expiry of the said
Insurance Policy.
F) All servicing plans shall be submitted to and accepted by the Township Engineer.
G) The Ministry of the Environment and Energy have given technical approval to the servicing plans.
2
3. INSPECTION BY THE TOWNSHIP
.
3.1 The Developer agrees to permit unrestricted access to the Subdivision Lands to the Township and its agents
for the purpose of inspection of the Township services to be installed by the Developer. Notwithstanding that
inspections may be conducted by the Township or its agents, the Developer shall bear sole responsibility for
the soundness of the engineering design of the Township services, and for ensuring that the Township services
to be installed will function as intended and will be compatible with the final Plan of Subdivision when and if
such Plan of Subdivision is approved.
3.2 If, in the opinion of the Township, there is an emergency situation as a result of any work undertaken by the
Developer or its servants, or agents, which requires immediate attention to avoid damage to private or public
property or services owned by the Township or to eliminate a potential hazard to persons, such work may be
done immediately by the Township at the expense of the Developer, but notice shall be given to the Developer
at the earliest possible time.
4. APPLICATION OF SECURITY
4.1 In the event of default by the Developer under the terms of this Agreement, or if the Township is required to
enter onto the Subdivision Lands or the abutting Township lands to conduct any work on the Township
services or the connection of the Township services to facilities due to an emergency, the Township shall be
entitled to draw upon the security posted by the Developer pursuant to the terms of this Agreement, in whole
or in part, to cover the costs incurred by the Township in remedying the default on the part of the Developer,
or in addressing the emergency situation.
5. NO REDUCTION OF SECURITY
5.1 The Developer acknowledges and agrees that no reduction in the amount of security filed by the Developer
with the Township, in accordance with the terms of this Agreement shall be permitted until such time as the
Developer has entered into the Subdivision Agreement for the Subdivision Lands with the Township.
Thereafter, any reductions in the security posted by the Developer shall be completed in accordance with the
terms of the said Subdivision Agreement.
6. NO ASSUMPTION OF TOWNSHIP SERVICES
6.1 The Developer acknowledges and agrees that the Township shall not be required to assume the Township
services to be constructed by the Developer pursuant to the terms of this Agreement, until such time as the
Developer has entered into a Subdivision Agreement with the Township for the Subdivision Lands, and the
Township services have been comp1etcd, inspected, and approved.
7. NOTICE
7.1 Any notice required to be given pursuant to this Agreement may be given by prepaid registered post to the
Developer at the following address:
and such noticc shall be deemed to have been given and received on the third day after mailing.
8. NO ASSIGNMENT
8.1 The Developer shall not assign or otherwise transfer the benefit of this Agreement without the written consent
of the Township, which may be unreasonably withheld.
IN WITNESS WHEREOF the Developer has hereunto set its hands and seals this
199 .
day of
Per:
DEVELOPER
.
IN WITNESS WHEREOF the Township has hereunto sets its hands and seals this
199 .
day of
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
Per:
MAYOR
Per:
CLERK
3
.
.
SCHEDULE "A"
DESCRIPTION OF LANDS:
4
.
.
SCHEDULE "B"
CASH DEPOSITS TO BE FILED WITH THE TOWNSHIP
I. $
2.
TOTAL CASH DEPOSITS TO THE TOWNSHIP $
SECURITY TO BE DEPOSITED WITH THE TOWNSHIP
5
$
.
.
SCHEDULE "C"
SUBDIVISION AGREEMENT - STANDARD TOWNSHIP
"STANDBY" LETTER OF CREDIT
IRREVOCABLE LETTER OF CREDIT
DATE OF ISSUE:
NAME OF BANK:
ADDRESS OF BANK:
LETTER OF CREDIT NO.:
AMOUNT: $
Except as otherwise expressly stated, this Letter of Credit is issued subject to the Uniform Customs and Practices
for Documentary Credits (I993 Revision), being ICC Publication No. UCP 500.
TO:
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
P.O. Box 100, Oro Ontario, LOL 2XO
We hereby authorize you to draw on the Bank of
Ontario, , for the account of
, up to an aggregate amorrnt of
which IS available on demand.
, ($$$$$$$$)
Pursuant to the request of our said customer, , we, the Bank of
, , Ontario, , hereby establish and give to you
an Irrevocable Letter of Credit in your tavour, m the above amount, which may be drawn on by you at any time and
ITom time to time, upon written demand for payment made upon us by you which demand we shall honorrr without
enquiring whether you have the right as between yourself and our said customer to make such demand and without
recognizing any claim of orrr said customer or objection by them to payment by us.
Demand shall be by way of a letter signed by an authorized signing officer of the Corporation of the Township of
Oro-Medonte. The original Letter of Credit must be presented to us at : Bank of
, . Ontario, . The Letter of Credit, we understand, relates
to a subdivision agreement between our said customer and the Corporation of the Township ofOro-Medonte, with
Mortgage Company. as a third party, regarding subdivision of
(property description)
The arnorrnt ofthis Letter of Credit may be reduced ITom time to time, as advised by notice in writing, given to us
by an authorized signing officer of the Corporation of the Township of Oro-Medonte.
Partial drawings shall be permitted. We hereby agree that partial drawings under this Letter of Credit will be duly
honorrred upon demand.
This Letter of Credit will continue in force for a period of one year, but shall be subject to the condition hereinafter
set forth. It is a condition of this Letter of Credit that it shall be deemed to be automatically extended without
amendment ftom year to year, ftom the present or any future expiration date hereof, unless at least thirty (30) days
prior to the present, or any future expiration date, we notiJ'y you in writing by registered mail that we elect not to
consider this Letter of Credit to be renewable for any additional period.
Dated at
, Ontario, this
day of
19
authorized signature
Bank of
authorized signature
6