Councillors here are taking a page from development agreements in holding back payment for work not completed to the municipality’s satisfaction.
On May 21, council received an invoice update from B.M. Ross and Associates regarding the town’s Servicing and Settlement Master Plan (SSMP).
However, based on advice from director of finance Sharon Marshall, the consultants may have to wait some time to see further funds from the municipality.
Marshall recommended council “hold back” payments of B.M. Ross invoices up to a maximum amount of 10% of the total contract amount of $350,000 until the conditions of the terms of reference (September 2008) for the SSMP study process phases 1 and 2 are substantially completed.
As such, Marshall recommended payment of the recent invoice of $30,923 plus HST be withheld at this time.
She said concerns have been raised that phases 1 and 2 of the process did not meet the terms of reference included in the contract with B.M. Ross.
While she agreed she was not an expert in what needed to be accomplished, her comments resulted from a core management team meeting a week prior.
“This was part of the discussion at this time,” said Marshall.
She added Dale Murray of Triton Engineering believes there is information missing from the current draft report.
“And it is a normal process in construction contracts, to hold 10% back,” Marshall explained.
She said the town would continue to work with B.M. Ross to get some dates for that work to be completed.
Councillor John Brennan said he understood another municipal staff member had drafted comments about the terms of reference as well.
Marshall said water superintendent Frank Smedley undertook a detailed examination of the draft report compared to the terms of reference.
“There were specific areas in which he believed information was missing from the draft SSMP report,” said Marshall.
Acting CAO Kathryn Ironmonger added there will be a review of various staff comments to determine which ones are relevant.
Ironmonger suggested that after that point, Murray could make a presentation to council.
Marshall noted, “To date, from 2006 to April 2013, the cost of the SSMP process is $419,067 – including $334,017 plus net HST (at +1.76%) for the B.M. Ross contract.”
The 2013 approved budget provides $100,000 in funding for the SSMP expense. The 2013 budget amount has not been exceeded to date, Marshall said.
Council agreed to hold back payment of the invoice for now.
SSMP draft report review
In Murray’s report on the draft SSMP report, he stated the review of the document was not restricted to its content but also fulfillment of the study terms of reference.
He said, “The study results, as provided in the draft report are, in our opinion, more planning oriented and lacking technical support.”
Murray also strongly recommended a meeting with the core management team (CMT) to discuss the draft report content, findings and conclusions.
“It is our view that the CMT should have been more involved in such things as development of evaluation criteria of environmental impacts.”
Murray added council will be required to make significant, long-term decisions based on the recommendations of this study.
“We feel that the report needs to be more specific about what the preferred solutions include, as well as their impacts on the economic, social and natural environments,” said Murray.
He also noted the assimilative capacity study is crucial to the SSMP process and may change a number of the findings as well as potential solutions.
