Item - 2013.AU11.9
Tracking Status
- City Council adopted this item on June 11, 2013 with amendments.
- This item was considered by the Audit Committee on May 29, 2013 and adopted without amendment. It will be considered by City Council on June 11, 2013.
AU11.9 - Toronto Water - Review of Construction Contracts
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on June 11, 12 and 13, 2013, adopted the following:
1. City Council request the General Manager, Toronto Water to ensure that revised purchasing documents, where required, are put in place on a timely basis.
2. City Council request the General Manager, Toronto Water to formalize and document the procedure for calculating estimates provided in tender documents for general repairs.
3. City Council request the General Manager, Toronto Water to develop criteria and implement procedures to determine when necessary repairs should be the subject of a project specific procurement process.
4. City Council request the General Manager, Toronto Water to consider incorporating a centralized warranty register in conjunction with any major system changes.
5. City Council request the General Manager, Toronto Water to ensure payments are made in accordance with contract terms, invoices are only paid after a thorough review to ensure goods and services have been received and appropriate documentation is retained to support all payments.
6. City Council request the General Manager, Toronto Water to consider the risk of additional errors in areas identified in the Auditor Generals review of invoices and take steps to recover any overpayments identified, including return of any unused material for credit.
7. City Council request the General Manager, Toronto Water to ensure compliance with the City Change Orders policy and procedures including the retention of appropriate supporting documentation.
8. City Council request the General Manager, Toronto Water to ensure contractors maintain the minimum levels of insurance coverage as required in their contracts with the City.
9. City Council request the General Manager, Toronto Water to implement the practice of comparing actual project costs to an established standard and investigate significant differences to the extent appropriate in the circumstances.
10. City Council request the General Manager, Toronto Water to ensure the District Contract Services Unit complies with Toronto Water documentation requirements.
11. City Council request the General Manager, Toronto Water, to ensure contractor performance is monitored, documented and, where necessary, reported as required by the Capital Works Projects Procurement and Administration Manual.
12. City Council request the General Manager, Toronto Water, in consultation with the Deputy City Manager, to consider including the frequency of reviews, time of final evaluation, opportunities for feedback and required action as part of his current review of contractor performance management practices.
13. City Council request the Deputy City Manager, Cluster B and the Director, Purchasing and Materials Management to report to the Public Works and Infrastructure Committee meeting on October 21, 2013 on the proposed Contractor Evaluation Procedure, and how it is being implemented for Toronto Water and Transportation Services Projects.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-58417.pdf
Motions (City Council)
That City Council request the Deputy City Manager, Cluster B and the Director, Purchasing and Materials Management to report to the Public Works and Infrastructure Committee meeting on October 21, 2013 on the proposed Contractor Evaluation Procedure, and how it is being implemented for Toronto Water and Transportation Services Projects.
Vote (Amend Item (Additional)) Jun-13-2013 10:01 AM
| Result: Carried | Majority Required - AU11.9 - Davis - motion 1 |
|---|---|
| Total members that voted Yes: 33 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 12 | Members that were absent are Mike Del Grande, John Filion, Doug Ford, Rob Ford, Mark Grimes, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Ron Moeser, Cesar Palacio, John Parker, Anthony Perruzza |
Vote (Adopt Item as Amended) Jun-13-2013 10:02 AM
| Result: Carried | Majority Required - AU11.9 - Adopt the item as amended |
|---|---|
| Total members that voted Yes: 33 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 12 | Members that were absent are Mike Del Grande, John Filion, Doug Ford, Rob Ford, Mark Grimes, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Ron Moeser, Cesar Palacio, John Parker, Anthony Perruzza |
AU11.9 - Toronto Water - Review of Construction Contracts
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the General Manager, Toronto Water to ensure that revised purchasing documents, where required, are put in place on a timely basis.
2. City Council request the General Manager, Toronto Water to formalize and document the procedure for calculating estimates provided in tender documents for general repairs.
3. City Council request the General Manager, Toronto Water to develop criteria and implement procedures to determine when necessary repairs should be the subject of a project specific procurement process.
4. City Council request the General Manager, Toronto Water to consider incorporating a centralized warranty register in conjunction with any major system changes.
5. City Council request the General Manager, Toronto Water to ensure payments are made in accordance with contract terms, invoices are only paid after a thorough review to ensure goods and services have been received and appropriate documentation is retained to support all payments.
6. City Council request the General Manager, Toronto Water to consider the risk of additional errors in areas identified in the Auditor Generals review of invoices and take steps to recover any overpayments identified, including return of any unused material for credit.
7. City Council request the General Manager, Toronto Water to ensure compliance with the City Change Orders policy and procedures including the retention of appropriate supporting documentation.
8. City Council request the General Manager, Toronto Water to ensure contractors maintain the minimum levels of insurance coverage as required in their contracts with the City.
9. City Council request the General Manager, Toronto Water to implement the practice of comparing actual project costs to an established standard and investigate significant differences to the extent appropriate in the circumstances.
10. City Council request the General Manager, Toronto Water to ensure the District Contract Services Unit complies with Toronto Water documentation requirements.
11. City Council request the General Manager, Toronto Water, to ensure contractor performance is monitored, documented and, where necessary, reported as required by the Capital Works Projects Procurement and Administration Manual.
12. City Council request the General Manager, Toronto Water, in consultation with the Deputy City Manager, to consider including the frequency of reviews, time of final evaluation, opportunities for feedback and required action as part of his current review of contractor performance management practices.
Origin
Summary
The Auditor General’s 2013Work Plan included a review of construction contracts managed by Toronto Water. Toronto Water oversees work performed by contractors engaged to install, repair and rehabilitate the City’s water and wastewater systems. The objective of this review was to assess the extent to which management and administrative controls ensure the City’s interest is protected, payments are accurate and contract terms are enforced.
This report contains 12 recommendations along with a management response to each of the recommendations. The implementation of these recommendations will strengthen controls, and improve the overall effectiveness of contract management and payment processes.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-58417.pdf