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HomeMy WebLinkAboutADMIN 15-81CORPORATION OF THE TOWN OF NEWCASTLE REPORT TO COUNCIL ADMIN. 15-81 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO Ll C 3A6 REPORT #5 #.'?./,2 TELEPHONE 623-3379 MEETING OF SEPTEMBER 21st, 1981 RE: Contract with M.C.C. Powers Ltd. for servicing of building heating and air-conditioning systems, Town Buildings ----------------------------------------------------------------- RECOMMENDATIONS: 1. That this report be received; and 2. That the M.C.C. Powers Co. Ltd. be advised that the Town of Newcastle terminates the "agreement" in respect of the servicing of Town Building heating and air-conditioning systems as of December 1st, 1981 on the basis that the "agreement" was not properly authorized by the Corporation of the Town of Newcastle and on the basis that the Town is not satisfied with the service provided; and 3. That Council authorize the Administrator to call for proposals from interested firms for the servicing of Town Buildings, whereby one firm w would be engaged by the Town on the basis of a one-year contract, to service municipal buildings. BACKGROUND AND COMMENT: At the Special Council Meeting of August 21st, 1981, the following resolution #C-921-81 was adopted: "That Council .give consideration to the following matters: 1. The report of the Community Services Committee Meeting held on August 21st 1981, 2. The letter received from D. Hamre, Campaign Chairman for the Orono District Arthritic Society requesting that Council declare the month of September to be "Arthritis Month" in the Town of Newcastle, 3. The motion moved by Councillor Hamre and seconded by Councillor Hubbard: WHEREAS it has been the practice of the Town of Newcastle to use the services of local businessmen who are; taxpayers in the community for the servicing and 13:i�¢ /2 I hf REPORT TO COUNCIL -2- MEETING OF SEPTEMBER 21st, 1981 ADMIN. 15 -81 maintenart,ceof heating units in the Town owned. facilities; and WHEREAS it has generally been the practice of the Town of Newcastle to tender for services and supplies; THEREFORE be it resolved that the C.A.O. give a full report at the next regular scheduled Council meeting on the staus of any contract that has been awarded for the servicing and maintenance of heating units in Town owned facilities, and further: That the C.A.O. report on at whose direction and by whom was said contract awarded, and further; That the C.A.O. report on whether tenders were called for said contact, and further; That the Town's legal advisor be asked to comment on the legality of said contract and the extent of the Town's committment to said contract." In respect of Part 3 of the above noted resolution, the Administrator has reviewed the status of the "agreement" with M.C.C. Powers Ltd., in conjunction with the Town's solicitor. The "agreement", a copy of which is attached, was signed by a former signing officer of the Town of Newcastle, but does not appear to have been executed on the basis of a by-law specifically for such purpose. It appears (and it should be noted that there is not a full record of actions in respect of this matter), that the "agreement"was negotiated by the former Treasurer on his own initiative, in the absence of a Chief Administrative Officer, and that the former Treasurer agreed to undertake to obtain the necessary Council approvals. No proposal or tender call was made. M.C.C. Powers Co. Ltd.. has operated on the assumption that the necessary approvals were obtained. In view of the fact that the "agreement" was not "executed" in accordance with a by-law for such purpose, nor is authorized according to established practice, the agreement may be considered as "not binding". The Administrator has advised M.C.C. Powers to this effect (correspondence attached). The Administrator has also reviewed the service given by M.C.C. Powers Ltd. with the concerned Department Heads, and has been advised that the service is not always satisfactory. ......./3 REPORT TO COUNCIL -3- MEETING OF SEPTEMBER 21st, 1981 ADMIN. 15 -81 In view of the above, it is recommended that the "agreement" with M.C.C. Powers Ltd., be terminated on the basis of an extended notice period and that the Town proceed with a proposal call for undertaking such work. Respectfully submitted, D. N. SMITH, M.C.I.P. Administrator DNS/mr CORPORATION OF THE TOWN OF NEWCASTLE/ 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 September 4th, 1981 M9 C.C. Power Ltd. 1.50 Skyway Avenue Remdale, Ontario N9V 4Y9 Attention: Mr. K. Ditchburn EnegFy Manareuent Specialist Deer Sire Further to our conversation of yesterday's date, please be advised that the agreement with the Town of Newcastle, signed by Mr. K. negroot, has not been authorized by the Council of the Town of Newcastle and therefore, cannot be considered binding. I will be corresponding with you furLher on this matter, after 'Foran Council has considered the agreements for the servicing of the Town':; huilding.s on September 21st, 1981. Please do not hesitate to cont_nt up if I can provide you with any further information. Yours truly, D. N. SMITH, M.C,I.L, Administrator DNSdmr