HomeMy WebLinkAboutWD-74-81 i✓
TOWN OF NEWCASTLE PUBLIC WORKS DEPARTMENT
Director's Report to Public Works Committee of June 9, 1981.
Item: WD-74-81
Date: May 20, 1981.
Subject: Administrative Approvals to Municipalities for the
Purchase of Materials, Construction or Maintenance
Work and Equipment (where applicable) .
Recommendation:
THAT WHEREAS, in the past, tendering and/or quotations has been
carried out in accordance with Ministry of Transportation and
Communications' Policy, therefore it is recommended that this
practice be continued.
Report:
Attached is an informative directive received from the Ministry of
Transportation & Communications which relates to Ministry Approvals
of all tenders and/or quotations, prior to the commencement of same.
Currently, upon Council's adoption of a Committee recommendation to
accept a tender or quotation, the appropriate information is submit-
ted to the Ministry for approval.
The Ministry advises that it proposes to keep Approvals to a minimum,
and would apply any adjustments (determined from the final reconcil-
iation) in the year the Contract is completed.
If Contracts, quotations, etc. , are in accordance with Ministry
Policy, administrative Approval is not required, except for such
items as Urban Transportation Assistance Programs, Connecting Links,
Development Roads, and any project handled under an Agreement. It
is noted that traffic signals require legal Approval, and confirmation
that all warrants have been met.
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Ministry of
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JL]P?oSrkE.S TO 1XIT.,101PAT,11.ei�1�S
OF C011STRUCTION 0--R
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Y) OR
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T:le f,tttcl-ed DIrective 1-1 indic*_vtes a c'a:�;e v,,ith re;;['.rd to
c7tato: C!'ts lv`iich indicate elieiblltty of 1` nicj-
pc,q
for purpo_:!Zes.
Present policy reSardinn the ell;ibility of
in effect Sand YJL11 be applied 1?pon reviev., of a-nni, renains
,r�Li return claims
ky the D:Istrict "Iricipa'l Office and the 17ini-StrY' s 0,-CrationaL
I'Llo"t Cffice- As 2`0•C-ed under Polio;) item 2, this office is pro-
PlrOd to Provide a statement on eliLibijit.., for nny contract.
It V.-ill be neces-sm%, that projects involving t'--e Urban Tra2lc:portation
A.-
pro rom continue to be vubmitteNin order to
clearly indicate at an early the cost and Sub,� Uv
fv_nds involveO Similarily, proper", purolnE-cs involvin'(; lands.
'Un)l'As to road needs till be candidptcs f01- S-Jb-nit.sion in order
to determine eliSibilit-j prior to year end.
Connecting I_,ir!:) Development Road and anv otlier project dealt ivith
on an aL;reenent basis v,,ill continue -to recuire v;pprovels as at
prevent.
Traffic Signals will require lo'- q 1
.'1,
e.pp:rov,1
c0n:Cix-natuion t'-iat WRTrant!�- have been riot.
and for subsidy pulljosesi
The contents of Directive A--1 r:i not cj�a n�o or eliIiinate the
P1-01-illciv-1 policy w7iich gives' to percent Cnnadiu_n preference.
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Attach. Dist--let I-Alnicipll
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j, Dit I,Ct ivp: A-1
Issuing AL)th0,jty:_, Deptity
Date of Issue: 80-12-15 Effective f 81-01-01
TO: Assistant Deputy Ministers, Executive Directors, Regional Directors, Directors, District Engineers,
Regional Managers Drivers and Vehicles,Office Managers
SUBJECT: ADMINISTRATIVE APPROVALS TO MUNICIPALITIES FOR PURCHASES OF
MATERIAL, CONSTRUCTION OR MAINTENANCE WORK, OR EQUIPMENT WHERE
APPLICABLE
ALTERNATIVE INDEX LISTING(S):
Approvals - Municipal Subsidy
Subsidy Approvals
PURPOSE To define the Ministry's policy and administrative approval.
practices on purchases by municipalities in connection with their road
improvement and maintenance activities.
BACKGROUND
The principal concern of the Ministry with municipal road expenditures tinder
its program of road grants is that they contribute to maintaining or
improving the service level of the municipal road system. Formal administrative
approvals of municipal purchases of material, equipment where applicable, or
construction and maintenance work do little to address this concern and should
be kept to a minimum. The means of keeping such approvals to a minimum is to
issue them only where exceptions to established policy have been identified.
Following the policy and practice described below will. result in a significant
reduction in the number of administrative approvals issued by the Ministry to
municipal road authorities. It should be noted that long established Ministry
policy continues on such things as items eligible for subsidy, the eligible
amount of storm sewers, or property.
The measures outlined in this directive have been taken as an interim response
to the recommendations made to the Ministry by The Spec*ial Advisory Committee
on Administrative Procedures for Road Grants. The Ministry will continue its
efforts to further reduce its administrative approval requirements for municipal
road expenditures.
POLICY
1. The policy and administrative approval practice of the Ministry on
municipal purchasing in connection with road improvement and maintenance
activities are:
(a) To allow as properly chargeable to road improvement the
low tender which meets non-restrictive, adequate
specifications and which is in response to:
A�M•5 402 80-02
a tender call that has been conspicuously
advertized in newspapers of aPpropr1at:()
circulation for the proposed purchase,
or,
an invitation to specific suppliers to
.submit tenders where the value of the
proposed purchase is estimated to be
$25,000 or less, or within such amount
as the municipality has specified in its
purchasing and tendering policy for
invitation bids.
(b) Not to require formal. administrative approval where a
Municipality:
(i) accepts the low tender meeting adequate and
non-restrictive specifications in accordance
with paragraph (a) above)
or,
(ii) makes a purchase of material, equipment, or
work of $5,000 or less in value.
(c) To require formal administrative approval before any
part of a purchase of material, equipment, or work
is properly chargeable to road improvement where
municipality:
(i) accepts other than the low tender,
or,
(ii) uses restrictive specifications,
or,
(iii) fails to follow the tendering practices
outlined above.
2. The Ministry will issue the appropriate administrative approval when
so requested by a municipality although the purpose of such requests.
Would ordinarily be to clarify the items of a contract that may be
properly chargeable to road improvement in whole or in part.
3. The Ministry w!ll ordinarily accept the interim distribution of
expenditures made on a contract involving road improvements and will
apply any adjustments determined from the final reconciliation in the
year the contract has been completed.
--0-
DISTRIBUTION: Ministry Internal,
All Municipalities Directive MTR A-1