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| Historically, the GNWT was responsible for determining what infrastructure would be built in NWT communities, including setting priorities and deciding on the scope of projects. Over time, this situation evolved to where municipalities were better able to decide and meet their infrastructure needs without direct GNWT involvement. As a result, the GNWT transferred the capital funding and the responsibility that accompanied it to the municipal governments. | Historically, the GNWT was responsible for determining what infrastructure would be built in NWT communities, including setting priorities and deciding on the scope of projects. Over time, this situation evolved to where municipalities were better able to decide and meet their infrastructure needs without direct GNWT involvement. As a result, the GNWT transferred the capital funding and the responsibility that accompanied it to the municipal governments. | ||
| - | On April 1, 2007, the GNWT began providing capital funding for infrastructure development directly to the municipal governments under the terms of the “[[http://www.maca.gov.nt.ca/toolkit/newdeal/index.html|New Deal for NWT Community Governments]]." | + | On April 1, 2007, the GNWT began providing capital funding for infrastructure development directly to the municipal governments under the terms of the “[[http://www.maca.gov.nt.ca/?page_id=577|New Deal for NWT Community Governments]]." |
| In exchange for this funding, municipal governments assumed responsibility for the ownership, and management of community public infrastructure, including: | In exchange for this funding, municipal governments assumed responsibility for the ownership, and management of community public infrastructure, including: | ||
| - | * Establishing capital investment plans; | + | * establishing capital investment plans, |
| - | * Making decisions about priority projects; | + | * making decisions about priority projects, |
| - | * Determining the scope and timing of projects; | + | * determining the scope and timing of projects, |
| - | * Determining how to finance them; and, | + | * determining how to finance them and |
| - | * Managing the construction of new community infrastructure. | + | * managing the construction of new community infrastructure. |
| This new approach represents a major change in how communities do business and requires that Councils and their staff learn new skills. | This new approach represents a major change in how communities do business and requires that Councils and their staff learn new skills. | ||
| - | |||
| ==== 7.2 Capital Assets ==== | ==== 7.2 Capital Assets ==== | ||
| Before discussing capital planning, it is helpful to first consider what is meant by a “capital asset”. Typically, a municipal government manages four types of assets, including land, infrastructure, buildings and equipment. Each type is considered a “capital” asset which means that it has the following characteristics: | Before discussing capital planning, it is helpful to first consider what is meant by a “capital asset”. Typically, a municipal government manages four types of assets, including land, infrastructure, buildings and equipment. Each type is considered a “capital” asset which means that it has the following characteristics: | ||
| - | * Is held for the purposes of delivering a program or service or to produce something; | + | * It is held for the purposes of delivering a program or service or to produce something. |
| - | * Is to be used on a continuing basis and is not intended for sale; | + | * It is to be used on a continuing basis and is not intended for sale. |
| - | * Has a life expectancy of greater than one year; and, | + | * It has a life expectancy of greater than one year. |
| - | * Has a value greater than a certain minimum threshold (as established in a capitalization policy) | + | * It has as a value greater than a certain minimum threshold (as established in a capitalization policy) |
| Common examples, such as buildings, land and mobile equipment, all meet these criteria and are considered capital assets from a planning and financial perspective. | Common examples, such as buildings, land and mobile equipment, all meet these criteria and are considered capital assets from a planning and financial perspective. | ||
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| Other types of expenses, such as salaries, purchased services (e.g. janitorial), consumable items (coffee, office supplies etc) or regular maintenance, do not meet these criteria and are categorized as expenses. These types of expenditures are paid for from operations budgets and must not be confused with capital spending. | Other types of expenses, such as salaries, purchased services (e.g. janitorial), consumable items (coffee, office supplies etc) or regular maintenance, do not meet these criteria and are categorized as expenses. These types of expenditures are paid for from operations budgets and must not be confused with capital spending. | ||
| - | Additional information on how a community can use its [[http://www.maca.gov.nt.ca/toolkit/infrastructure_plan/CPI%20Funding%20Policy%20QAs_Final.pdf|capital funding]] is available on the MACA web site. | + | Additional information on how a community can use its [[http://www.maca.gov.nt.ca//wp-content/uploads/2011/09/MACA_SCG_Capital-Funding-QAs_2007.pdf|capital funding]] is available on the MACA web site. |
| ==== 7.3 Capital Planning ==== | ==== 7.3 Capital Planning ==== | ||
| For a municipal government to meet current and future needs in a community, it is very important that: | For a municipal government to meet current and future needs in a community, it is very important that: | ||
| - | * existing infrastructure be maintained in good working order: | + | * existing infrastructure be maintained in good working order, |
| - | * future community needs are identified and prioritized; and, | + | * future community needs are identified and prioritized and |
| * sufficient capital funding is available to service existing infrastructure and build new infrastructure. | * sufficient capital funding is available to service existing infrastructure and build new infrastructure. | ||
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| === 7.3.1 Capital Planning Process === | === 7.3.1 Capital Planning Process === | ||
| - | There are several basic steps in the [[http://www.maca.gov.nt.ca/toolkit/infrastructure_plan//Capital%20Planning%20Confrence.ppt|capital planning process]]: | + | There are several basic steps in the [[http://www.maca.gov.nt.ca/?page_id=573|capital planning process]]: |
| **1. Identifying Services and Evaluating Community Needs** \\ | **1. Identifying Services and Evaluating Community Needs** \\ | ||
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| Any proposed capital project is a response to an identified need. A big challenge that municipal governments face is figuring out what the priority projects should be as there is never enough money to satisfy all needs and wants. Things to think about when setting capital planning priorities include: | Any proposed capital project is a response to an identified need. A big challenge that municipal governments face is figuring out what the priority projects should be as there is never enough money to satisfy all needs and wants. Things to think about when setting capital planning priorities include: | ||
| - | * Focusing on essential programs and services. Clearly, essential items such as water delivery or road maintenance or building houses should receive priority over other choices such recreational or cultural facilities. | + | * **Focusing on essential programs and services.** Clearly, essential items such as water delivery or road maintenance or building houses should receive priority over other choices such recreational or cultural facilities. |
| - | * Legislative requirements or standards. Some projects must be done by a certain deadline to keep the community in compliance with applicable health or safety legislation, regulation or standards. | + | * **Legislative requirements or standards.** Some projects must be done by a certain deadline to keep the community in compliance with applicable health or safety legislation, regulation or standards. |
| - | * Maximum benefits received. One way to set priorities is to consider the benefits that the community will receive for the amount of capital funding it will spend. Projects that yield the biggest “bang for the buck” should be considered first. | + | * **Maximum benefits received.** One way to set priorities is to consider the benefits that the community will receive for the amount of capital funding it will spend. Projects that yield the biggest “bang for the buck” should be considered first. |
| - | * Operating and maintenance expenses. One area that is often overlooked is the impact of new infrastructure on a municipal government’s current operating budget. Once a new facility is built, it usually requires additional operational spending also. Common examples include staff and other costs to deliver programs and basic operating expenses such as heat, power and general upkeep. | + | * **Operating and maintenance expenses.** One area that is often overlooked is the impact of new infrastructure on a municipal government’s current operating budget. Once a new facility is built, it usually requires additional operational spending also. Common examples include staff and other costs to deliver programs and basic operating expenses such as heat, power and general upkeep. |
| - | * Public support. To the extent possible, a Council should be focused on projects for which there is strong support from the public. | + | * **Public support.** To the extent possible, a Council should be focused on projects for which there is strong support from the public. |
| **4. Developing Cost Estimates** \\ | **4. Developing Cost Estimates** \\ | ||
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| The basic idea is to estimate as accurately as possible all related costs so that there are no surprises later once the project is done. Similar to the project substantiation stage, cost estimates may range from very preliminary to very advanced depending on the level of information available. Most project cost estimates are described as follows: | The basic idea is to estimate as accurately as possible all related costs so that there are no surprises later once the project is done. Similar to the project substantiation stage, cost estimates may range from very preliminary to very advanced depending on the level of information available. Most project cost estimates are described as follows: | ||
| - | * **Class A** – this is the most precise type of estimate and is usually based on unit price estimates which require full specifications and working drawings. The accuracy expected is plus or minus 5-10% | + | * **Class A** – this is the most precise type of estimate and is usually based on unit price estimates which require full specifications and working drawings. The accuracy expected is plus or minus 5-10%. |
| - | * **Class B** – this is usually based on a systems approach that reflects how a facility is constructed. The expected accuracy is plus or minus 10-15% | + | * **Class B** – this is usually based on a systems approach that reflects how a facility is constructed. The expected accuracy is plus or minus 10-15%. |
| * **Class C** – this is based on limited site knowledge and probable conditions such as costs per square foot. This type of estimate is accurate within plus or minus 15-20% and is often used for preliminary planning purposes. | * **Class C** – this is based on limited site knowledge and probable conditions such as costs per square foot. This type of estimate is accurate within plus or minus 15-20% and is often used for preliminary planning purposes. | ||
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| Under the terms of the New Deal, municipal governments have several potential sources of funding for capital projects: | Under the terms of the New Deal, municipal governments have several potential sources of funding for capital projects: | ||
| - | [[http://www.maca.gov.nt.ca/resources/policies/Community%20Public%20Infrastructure.pdf|Community Public Infrastructure Funding]] – capital funding provided annually by MACA to support municipal governments with the provision of community public infrastructure required to deliver community programs and services. The following expenditures are considered eligible: | + | [[http://www.maca.gov.nt.ca/?attachment_id=3844|Community Public Infrastructure Funding]] – capital funding provided annually by MACA to support municipal governments with the provision of community public infrastructure required to deliver community programs and services. The following expenditures are considered eligible: |
| * Direct costs (materials, equipment and construction) | * Direct costs (materials, equipment and construction) | ||
| - | * Project management costs that are directly relevant to the project; | + | * Project management costs that are directly relevant to the project |
| - | * Crushing and stockpiling gravel materials for road maintenance (subject to some rules); | + | * Crushing and stockpiling gravel materials for road maintenance (subject to some rules) |
| - | * Capital leases; | + | * Capital leases |
| - | * Community land use planning; | + | * Community land use planning |
| - | * Feasibility, engineering or planning studies for community public infrastructure; | + | * Feasibility, engineering or planning studies for community public infrastructure |
| - | * Purchase costs for water and sewer vehicles (subject to some rules); and, | + | * Purchase costs for water and sewer vehicles (subject to some rules) |
| * Land development projects. | * Land development projects. | ||
| [[http://www.maca.gov.nt.ca/resources/GTF_Control_Management_Framework.pdf|Federal Gas Tax Funding]] – capital funding provided by the Government of Canada which must be used for environmentally sustainable community infrastructure, including: | [[http://www.maca.gov.nt.ca/resources/GTF_Control_Management_Framework.pdf|Federal Gas Tax Funding]] – capital funding provided by the Government of Canada which must be used for environmentally sustainable community infrastructure, including: | ||
| - | * Water and wastewater treatment and distribution; | + | * water and wastewater treatment and distribution, |
| - | * Solid waste sites; | + | * solid waste sites, |
| - | * Active transportation infrastructure, including trails and sidewalks; | + | * active transportation infrastructure, including trails and sidewalks, |
| - | * Dust control; | + | * dust control, |
| - | * Community energy systems; and, | + | * community energy systems and |
| - | * Capacity building | + | * capacity building. |
| **Borrowing** – with the legislative changes that were made when the New Deal was introduced, most municipal governments have the ability to borrow money to help finance capital projects. This ability to borrow and the fact that the CPI and Gas Tax funding is predictable provides a municipal government with the flexibility to pay for a capital project by using a combination of available funding and loans, thus spreading out the costs over a period of years. | **Borrowing** – with the legislative changes that were made when the New Deal was introduced, most municipal governments have the ability to borrow money to help finance capital projects. This ability to borrow and the fact that the CPI and Gas Tax funding is predictable provides a municipal government with the flexibility to pay for a capital project by using a combination of available funding and loans, thus spreading out the costs over a period of years. | ||
| - | **Private/Public Partnerships** ([[http://lgant.ca/Resources/Section%207%20Resources/An%20Introduction%20to%20P3%20-June03.pdf |Introduction to P3]]) – known as a P3 arrangement, this is a partnership between a municipal government and a private sector business that is established for the purposes of completing a capital project. P3s can take a variety of forms but the basic goal is to combine the strengths of both partners and share risks. Usually, the municipal government remains in control as the decision-maker on a project but relies on the private company to handle the commercial functions such as project design, construction, finance and operations. In return, the municipal government makes monthly payments to the company to enable it cover all capital and operating costs for the facility and earn a profit. | + | **Private/Public Partnerships** – known as a P3 arrangement, this is a partnership between a municipal government and a private sector business that is established for the purposes of completing a capital project. P3s can take a variety of forms but the basic goal is to combine the strengths of both partners and share risks. Usually, the municipal government remains in control as the decision-maker on a project but relies on the private company to handle the commercial functions such as project design, construction, finance and operations. In return, the municipal government makes monthly payments to the company to enable it cover all capital and operating costs for the facility and earn a profit. |
| | | ||
| **6. Preparing the Capital Plan** \\ | **6. Preparing the Capital Plan** \\ | ||
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| The basic purpose in assembling the plan is to make sure that the municipal government has the resources (money, staff, capacity) required to complete the amount of work involved. If not, some projects may need to be deferred or reduced in scope or even cancelled. Once the plan is done, it needs to be updated each year to reflect new information and new project ideas. | The basic purpose in assembling the plan is to make sure that the municipal government has the resources (money, staff, capacity) required to complete the amount of work involved. If not, some projects may need to be deferred or reduced in scope or even cancelled. Once the plan is done, it needs to be updated each year to reflect new information and new project ideas. | ||
| - | |||
| ==== 7.4 Project Management ==== | ==== 7.4 Project Management ==== | ||
| Once a Capital Plan is approved and in place, the municipal government needs to implement the projects in the plan. On occasion, a municipal government may also decide to proceed with a capital project that is not already included in the Capital Plan. | Once a Capital Plan is approved and in place, the municipal government needs to implement the projects in the plan. On occasion, a municipal government may also decide to proceed with a capital project that is not already included in the Capital Plan. | ||
| - | Completion of a specific capital project usually involves several stages including planning and design, tendering and contracting, managing construction and ensuring project completion. This overall process is referred to as [[http://www.maca.gov.nt.ca/toolkit/project_management/index.html|project management]] & ([[http://lgant.ca/Resources/Section%207%20Resources/Case%20Study%20For%20Ft%20Liard%20%20%282007%29.pdf |Case Study for Fort Liard]]). | + | Completion of a specific capital project usually involves several stages including planning and design, tendering and contracting, managing construction and ensuring project completion. This overall process is referred to as [[http://www.maca.gov.nt.ca/?page_id=574|project management]]. |
| In essence, project management involves directing and coordinating people and resources (materials and equipment) throughout the life of a project. Key skills involved in project management include: | In essence, project management involves directing and coordinating people and resources (materials and equipment) throughout the life of a project. Key skills involved in project management include: | ||
| - | * Planning and scheduling | + | * planning and scheduling, |
| - | * Directing and managing people | + | * directing and managing people, |
| - | * Having knowledge of the technical aspects of the project | + | * having knowledge of the technical aspects of the project, |
| - | * Being a good communicator | + | * being a good communicator and |
| - | * Managing money | + | * managing money. |
| Larger municipal governments often have internal staff that can manage capital projects. In smaller communities, a project manager or consultant is often hired to complete a capital project. | Larger municipal governments often have internal staff that can manage capital projects. In smaller communities, a project manager or consultant is often hired to complete a capital project. | ||
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| * **Pre-construction meeting** – the LGA should organize a meeting before construction starts to establish the ground rules that will be followed in administering the project. Items for discussion may include: | * **Pre-construction meeting** – the LGA should organize a meeting before construction starts to establish the ground rules that will be followed in administering the project. Items for discussion may include: | ||
| - | * Roles and responsibilities for all key players such as community government staff, contractor, consultant etc. | + | * roles and responsibilities for all key players such as community government staff, contractor, consultant etc., |
| - | * Lines of communication | + | * lines of communication, |
| - | * Authorities for progress payments, change orders and extra work | + | * authorities for progress payments, change orders and extra work, |
| - | * Schedules and cash flow requirements | + | * schedules and cash flow requirements, |
| - | * Payment procedures and timing | + | * payment procedures and timing, |
| - | * Safety procedures, site security, on-site requirements etc | + | * safety procedures, site security, on-site requirements etc. |
| * **Communications** – the LGA needs to communicate regularly with the contractor or project manager to track progress. The LGA should keep a correspondence file with plans, sketches, notes to the project manager, copies of letters sent etc. The LGA should also provide Council with regular updates as the project is built. | * **Communications** – the LGA needs to communicate regularly with the contractor or project manager to track progress. The LGA should keep a correspondence file with plans, sketches, notes to the project manager, copies of letters sent etc. The LGA should also provide Council with regular updates as the project is built. | ||
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| In addition, the municipal government should evaluate how well the project went during the design and construction process and identify any areas where improvements could be made, particularly if difficulties were experienced with the contractor or the project was not delivered on time or on budget. | In addition, the municipal government should evaluate how well the project went during the design and construction process and identify any areas where improvements could be made, particularly if difficulties were experienced with the contractor or the project was not delivered on time or on budget. | ||
| - | |||
| ==== 7.5 Procurement and Contracting ==== | ==== 7.5 Procurement and Contracting ==== | ||
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| With the implementation of the New Deal in 2007, municipal governments are responsible for managing the construction of community public infrastructure. This means that a Council and municipal staff, including the LGA, finance people and the Works Foreman all need to learn new skills related to procurement and contracting. | With the implementation of the New Deal in 2007, municipal governments are responsible for managing the construction of community public infrastructure. This means that a Council and municipal staff, including the LGA, finance people and the Works Foreman all need to learn new skills related to procurement and contracting. | ||
| - | Good procurement and [[http://www.maca.gov.nt.ca/toolkit/project_management/Proj%20Con%20Man%20Course%20-%202006.doc|contracting practices]] are essential to managing capital projects. | + | Good procurement and [[http://www.maca.gov.nt.ca//wp-content/uploads/2011/09/MACA_SCG_Project-Contract-Management-Course_2006.doc|contracting practices]] are essential to managing capital projects. |
| === 7.5.1 Procurement === | === 7.5.1 Procurement === | ||
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| A competitive process involves seeking written bids in the form of tenders or proposals. This can be done in two different ways: | A competitive process involves seeking written bids in the form of tenders or proposals. This can be done in two different ways: | ||
| - | * Giving public notice of the opportunity to bid. This is an open process, any company or individual may bid. Different means of advertising that can be used include newspaper ads, public notices or the Internet. | + | * **Giving public notice of the opportunity to bid.** This is an open process, any company or individual may bid. Different means of advertising that can be used include newspaper ads, public notices or the Internet. |
| - | * Inviting bids from certain firms. Using this approach, certain qualified proponents are contacted directly and invited to bid, and there is no public notice or advertisement. When this process is used, it is customary to seek at least three different bids. | + | * **Inviting bids from certain firms.** Using this approach, certain qualified proponents are contacted directly and invited to bid, and there is no public notice or advertisement. When this process is used, it is customary to seek at least three different bids. |
| Bids can be obtained in the form of a proposal or tender, depending on the nature of the project. | Bids can be obtained in the form of a proposal or tender, depending on the nature of the project. | ||
| A Request for Proposals (RFP) is used when the purchaser is looking for the best value solution to resolve a problem or acquire goods and services but isn’t sure how to achieve it. Examples of when the RFP method should be used include: | A Request for Proposals (RFP) is used when the purchaser is looking for the best value solution to resolve a problem or acquire goods and services but isn’t sure how to achieve it. Examples of when the RFP method should be used include: | ||
| - | * If the good or service needed is not well defined; | + | * if the good or service needed is not well defined, |
| - | * If there is no detailed material or performance specification; | + | * if there is no detailed material or performance specification, |
| - | * A general solution to a problem is sought; or, | + | * a general solution to a problem is sought or |
| - | * The bidders’ solutions are likely to be varied or difficult to evaluate. | + | * the bidders’ solutions are likely to be varied or difficult to evaluate. |
| An RFP is usually used to hire professionals such as an architect, engineer, lawyer or consultant. | An RFP is usually used to hire professionals such as an architect, engineer, lawyer or consultant. | ||
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| A tender is used when the purchaser knows exactly what good or service they want and is looking to acquire it for the best price. Tenders should be used when: | A tender is used when the purchaser knows exactly what good or service they want and is looking to acquire it for the best price. Tenders should be used when: | ||
| - | * The good or service required is clearly defined (e.g. equipment); or, | + | * the good or service required is clearly defined (e.g. equipment) or |
| - | * There is a detailed methodology, procedure or material and performance specification available. | + | * there is a detailed methodology, procedure or material and performance specification available. |
| It is important to note that there are legal obligations on a municipal government when it uses a tendering process. Once tenders come in, contracts are formed between the municipal government and the bidders. As a result, care must be taken by the municipal government to follow due process. An overview of the main steps in a typical tendering process is as follows: | It is important to note that there are legal obligations on a municipal government when it uses a tendering process. Once tenders come in, contracts are formed between the municipal government and the bidders. As a result, care must be taken by the municipal government to follow due process. An overview of the main steps in a typical tendering process is as follows: | ||
| - | * Preparing tender documents that contain detailed information regarding design and specifications; | + | * Preparing tender documents that contain detailed information regarding design and specifications. |
| - | * Placing ads and notices to solicit responses from contractors; | + | * Placing ads and notices to solicit responses from contractors. |
| - | * Designating one official spokesperson to field bidders’ questions and ensure all relevant information is communicated to all bidders; | + | * Designating one official spokesperson to field bidders’ questions and ensure all relevant information is communicated to all bidders. |
| - | * Receiving tenders up to the closing date; | + | * Receiving tenders up to the closing date. |
| * Opening and reviewing the tenders. This should be done as soon as possible after the closing date. | * Opening and reviewing the tenders. This should be done as soon as possible after the closing date. | ||
| In reviewing the tenders, the review committee should: | In reviewing the tenders, the review committee should: | ||
| - | * Make sure each tender contains all information requested | + | * make sure each tender contains all information requested, |
| - | * Ensure that a bidder is qualified to provide the good or service | + | * ensure that a bidder is qualified to provide the good or service, |
| - | * Make sure the bids meet the specifications requested | + | * make sure the bids meet the specifications requested and |
| - | * Evaluate the tenders to determine the lowest price quote that is responsive to the tender requirements | + | * evaluate the tenders to determine the lowest price quote that is responsive to the tender requirements. |
| * Award the contract to the lowest price bidder that was responsive to all tender specifications and requirements. | * Award the contract to the lowest price bidder that was responsive to all tender specifications and requirements. | ||
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| **Sole Sourcing** \\ | **Sole Sourcing** \\ | ||
| Sole sourcing involves the direct awarding of a contract to one firm or individual without using a competitive bidding process. There are several instances where sole sourcing is considered acceptable: | Sole sourcing involves the direct awarding of a contract to one firm or individual without using a competitive bidding process. There are several instances where sole sourcing is considered acceptable: | ||
| - | * When a contract is worth less than $1,000; | + | * When a contract is worth less than $1,000. |
| - | * When the work is an emergency and there is no time to run a competitive bidding process; and, | + | * When the work is an emergency and there is no time to run a competitive bidding process. |
| * There is clearly only one qualified firm available. | * There is clearly only one qualified firm available. | ||
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| Several items for the LGA to note regarding contract administration include: | Several items for the LGA to note regarding contract administration include: | ||
| - | * Have a pre-construction meeting (see section 7.4.3 above) | + | * Have a pre-construction meeting (see section 7.4.3 above.) |
| * Ensure that any required securities and insurance certificates are in place. | * Ensure that any required securities and insurance certificates are in place. | ||
| - | * Payments to the contractor or consultant are usually made on a monthly basis and are referred to as Progress Payments | + | * Payments to the contractor or consultant are usually made on a monthly basis and are referred to as Progress Payments. |
| * Changes in the scope of work for the project will result in change orders. A change order is a written agreement between the municipal government and the contractor to modify, add to or alter the work from that originally specified in the contract. When approved by both parties, a change order becomes part of the contract. | * Changes in the scope of work for the project will result in change orders. A change order is a written agreement between the municipal government and the contractor to modify, add to or alter the work from that originally specified in the contract. When approved by both parties, a change order becomes part of the contract. | ||
| * Holdback funds. In accordance with the //NWT Builder’s Lien Act//, 10% of all construction contract payment is held back by the project owner. The holdback is released to the contractor 45 days after substantial completion of the project unless someone files a claim (i.e. a lien) for money owed to them. | * Holdback funds. In accordance with the //NWT Builder’s Lien Act//, 10% of all construction contract payment is held back by the project owner. The holdback is released to the contractor 45 days after substantial completion of the project unless someone files a claim (i.e. a lien) for money owed to them. | ||
| - | * Completion certificates. Once the project is basically done, the contractor, an engineer and the LGA and Works Foreman typically conduct an inspection to note any uncompleted work or missing equipment. This is called an Interim Certificate of Completion. Once any deficiencies are corrected, the contractor will request that the municipal government do a final inspection which results in a final certificate of completion. After this is achieved, any holdback funds should be released to the contractor based on a final invoice and a statutory declaration that the contractor has paid all his obligations to sub-trades and suppliers | + | * Completion certificates. Once the project is basically done, the contractor, an engineer and the LGA and Works Foreman typically conduct an inspection to note any uncompleted work or missing equipment. This is called an Interim Certificate of Completion. Once any deficiencies are corrected, the contractor will request that the municipal government do a final inspection which results in a final certificate of completion. After this is achieved, any holdback funds should be released to the contractor based on a final invoice and a statutory declaration that the contractor has paid all his obligations to sub-trades and suppliers. |
| ==== 7.6 Infrastructure Maintenance ==== | ==== 7.6 Infrastructure Maintenance ==== | ||
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| The maintenance and upkeep of existing community infrastructure is vitally important. Without regular maintenance, municipal facilities, systems and equipment will not perform properly and will eventually need major repairs or replacement (at very high costs). | The maintenance and upkeep of existing community infrastructure is vitally important. Without regular maintenance, municipal facilities, systems and equipment will not perform properly and will eventually need major repairs or replacement (at very high costs). | ||
| To properly manage community infrastructure and assets, a municipal government should keep a working record of the following: | To properly manage community infrastructure and assets, a municipal government should keep a working record of the following: | ||
| - | * The assets owned by the community; | + | * the assets owned by the community, |
| - | * The location of each asset; | + | * the location of each asset, |
| - | * The services delivered with that asset; | + | * the services delivered with that asset, |
| - | * The current replacement value of the community’s assets; and, | + | * the current replacement value of the community’s assets and |
| - | * The condition of the existing assets. | + | * the condition of the existing assets. |
| A key asset management practice that all municipalities across Canada must now comply with (effective January 1, 2009) is to report the value of their “tangible capital assets” on their Financial Statements. This is required by the Public Sector Accounting Board (see PS 3150) and was introduced to help ensure municipal governments publically recognize the assets they have and the condition that those assets are in. | A key asset management practice that all municipalities across Canada must now comply with (effective January 1, 2009) is to report the value of their “tangible capital assets” on their Financial Statements. This is required by the Public Sector Accounting Board (see PS 3150) and was introduced to help ensure municipal governments publically recognize the assets they have and the condition that those assets are in. | ||
