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Attachment 1 |
Draft Proposal URM Buildings Fund |
Draft Proposal for
the operation of the unreinforced masonry (URM) buildings fund
BETWEEN
Ministry of Business, Innovation & Employment
15 Stout Street
Wellington
AND
The [insert name of Council] Council
Dated this [insert date] day of [insert month] 2017
1. Parties
1.1 This Agreement is between the Ministry of Business, Innovation and Employment (“MBIE”) and the [insert name of Council] Council (“Council”) (together, ‘the Parties’).
2. Definitions and Interpretations
2.1 In this Agreement, the following terms have the following meanings:
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Term |
Meaning |
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URM buildings fund |
The fund established to support building owners carry out the required URM buildings securing work, comprising of both Government and Council contributions. |
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Heritage EQUIP fund |
The Heritage Earthquake Upgrade Incentive Programme administered by the Ministry for Culture and Heritage |
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Section 124 notice |
The notice issued by the Council under section 124 of the Building Act requiring the securing work to be completed in accordance with specified technical guidance and timeframes. |
3. Background
The Project
3.1 Due to the heightened risk of earthquakes following the Kaikōura earthquake of 14 November 2016, the Government requires building owners in certain areas to secure URM parapets and façades within 12 months. Adequately securing the vulnerable features of URM buildings will significantly reduce the life safety risks posed by these buildings.
3.2 An Order in Council under the Hurunui/Kaikōura Earthquakes Recovery Act 2016 modifies the Building Act 2004 to create a regulatory requirement for a certain class of buildings under section 121 to 122 of that Act. The class of buildings are URM buildings with street facing URM parapets and façades in certain areas and specified locations. These building will have notices issued to them by the Council under section 124 of the Building Act.
3.3 The URM buildings fund has been established comprising both Government and the Council contributions to support building owners carry out this work.
3.4 The purpose of this Agreement is to set-out the roles of MBIE and the Council for the operation of the URM buildings fund.
Parties’ roles
3.5 MBIE will administer the URM buildings fund on behalf of the Government and each contributing Council.
3.6 Both the Government and the Council will contribute to the URM buildings fund. The URM buildings fund will provide half the costs of securing street facing URM features, up to a maximum of $15,000 for a URM façade and/or $10,000 for a URM parapet.
3.7 The URM buildings fund includes both Government and Council contributions on a 2:1 ratio. The Government contribution of up to $3 million is conditional on the Council contribution. This means for a building owner receiving the maximum amount of $15,000 from the URM buildings fund for a façade, will receive a $10,000 contribution from Government and a $5,000 contribution from the Council.
3.8 Government and Council contributions have been estimated based on the maximum anticipated funding required.
3.9 The basis of the fund is that every building owner who is required to secure URM features and does so in accordance with the requirements is eligible for funding. The likelihood of oversubscription has been minimised by the selection of streets specified in the Order in Council. Further contributions from the Government are conditional on the approval of an additional appropriation.
3.10 MBIE will monitor the number of façades and parapets required and provide early warning to Councils if there is a prospect that additional funding is required.
3.11 The Council will be the main point of contact for building owners until the section 124 notice has been removed from the building.
3.12 MBIE will be the main point of contact for building owners from the time the building owner submits their URM buildings fund application until receipt of their URM buildings fund payment.
4. Purpose and Scope
4.1 The Parties wish to enter into this Agreement and work closely together during the URM buildings securing project to ensure the effective and timely operation of the URM buildings fund to support building owners carrying out the required securing work.
4.2 This Agreement establishes the way in which MBIE and the Council intend to work together during the URM buildings securing project and sets out a framework within which MBIE and the Council will perform their roles and responsibilities under this Agreement.
5. General Principles of the Agreement
5.1 The following outlines the general principles that underpin the nature of the working relationship between the Council and MBIE:
· The Parties will work together to establish and maintain a relationship based on co-operation and partnership;
· Any issues concerning the other Party’s performance will be discussed with that Party in the first instance;
· The Parties will communicate with each other openly and freely.
6. Agreement on responsibilities and required:
MBIE required actions
6.1 MBIE will provide centralised administrative processing of URM buildings fund applications on behalf of all contributing Councils.
6.2 MBIE will provide each contributing Council the URM buildings fund information pack and application form for provision to building owners on each issue of a section 124 notice, consisting of Technical Guidance on securing URM building elements and a basic process diagram outlining the steps involved in applying to the URM buildings fund.
6.3 MBIE will liaise with the Ministry for Culture and Heritage (MCH) to ensure the URM buildings fund applicants are not receiving Heritage EQUIP funding, or have an application lodged with MCH for consideration.
6.4 MBIE will review the URM buildings fund applications and determine the amount due to the building owner based on evidence of costs incurred by the building owner.
6.5 MBIE will manage the government contribution to the URM buildings fund, make payments to building owners on behalf of Government and the Council, report to the Council on the payments made and keep records for auditing purposes.
6.6 MBIE will direct debit the Council’s nominated bank account the Council contribution for each funding application.
Council required actions
6.7 Council will provide the URM buildings fund information pack to each building owner that receives a section 124 notice requiring URM features to be secured. Council will communicate with building owners that the URM buildings fund is not available to building owners currently receiving Heritage EQUIP funding.
6.8 Council agrees to delegate to MBIE the role of determining the amount due to a building owner based on works completed, and taking into account government and Council contributions.
6.9 Council authorises MBIE to direct debit the Council’s nominated bank account the Council contribution for each funding application.
Information sharing
6.10 Council will advise MBIE the details of building owners issued with section 124 notices (building name, street address, details of building owner, URM building issues identified). This will be an important reference when processing URM buildings fund applications.
6.11 Council will advise MBIE when a section 124 notice is removed from a building.
Reporting
6.12 The Parties are to provide written (email) reports as soon as is reasonably possible on:
a. any risks or issues that MBIE or the Council need to be aware of (including any risks that will, or may have the effect of causing delay to the URM buildings securing project;
b. an assessment of the significance of any risks identified under 6.12 (a);and
c. any steps planned to resolve such risks and minimise disruption to the required actions at clause 6.1 (where such risks occur or are likely to occur); and
d. any other issues of which the Parties may need to be aware of sooner than the regular report under clause 6.5.
Address for Reporting
6.13 The Parties will provide reports required under this Agreement via email to the other Party’s Key Contact Person (clause 9) in the first instance, unless, in the circumstances, it is unreasonable to do so.
6.14 The Parties agree to meet or teleconference at least monthly, or as and when required.
7. Dispute Resolution
Principles
7.1 Each Party shall use all reasonable efforts to:
a. Give notice of any dispute between the Parties arising under or in connection with the Agreement (Dispute) promptly; and
b. Meet within five working days of notice of Dispute with the purpose of attempting to resolve the Dispute; and
c. Use all reasonable endeavours to resolve the Dispute as expeditiously as possible; and
d. Ensure that any Dispute that is reasonably foreseeable is dealt with at a sufficiently early stage to ensure that there is minimum impact on the ability of either Party to perform its obligations under this MOU; and
e. Continue performing responsibilities and required actions under this Agreement (as far as possible given the nature of the Agreement Dispute) despite any Dispute.
Escalation
7.2 Each Party shall use all reasonable efforts to:
a. Resolve any dispute between officials within five working days of first meeting;
b. Where unable to Resolve any dispute between officials within five working days at a less than General Manger Level, escalate to General Manager level;
c. Where unable to resolve any dispute at General Manager level within ten working days; escalate them to a DCE or CE level.
d. If the DCE or CE is unable to resolve the dispute they may escalate the Dispute to each Party’s responsible Minister of Crown.
Wherever a dispute arises, each Party agrees to liaise through the Party’s Key Contact Person (clause 9) in the first instance, unless, in the circumstances, it is unreasonable to do so.
8. Term of Agreement
8.1 The Agreement will commence from the date it is signed by the Parties and continue until 30 June 2018 or earlier if the Parties agree in writing.
9. Contact Person
9.1 A Key Contact Person is designated by each Party, to be kept informed of matters that arise relating this Agreement. The Key Contact Person will develop an effective working relationship with the other Party’s Key Contact Person. The Parties’ Key Contact Persons are:
· MBIE Key Contact Person: John Gardiner
· Council Key Contact Person: [insert name].
9.2 If the Key Contact Person changes, notification should be provided to the other Party in writing and there should be a handover process so that the new Key Contact Person can quickly settle into the role.
9.3 Any notices, reports or other communications under this Agreement should be directed to the Party’s Key Contact Person, unless, in the circumstances, it is unreasonable to do so. The email address for each party is:
· MBIE Key Contact Person: John Gardiner, john.gardiner@mbie.govt.nz
· Council Key Contact Person: [insert name, email].
10. Protocols for Publicity
10.1 As a courtesy and in the interest of clear communication, neither Party will comment publicly on any matters that relate directly or indirectly to policies, practices, procedures or actions of another Party in respect of this Agreement, without first advising and/or discussing the matter with the other Party.
10.2 Wherever appropriate and possible, both Parties will coordinate publicity and media activity.
11. Information Management
Confidentiality
11.1 With the exception of information that is already available in the public domain, and unless stated otherwise, the Parties agree that all information communicated to one Party by the other, in any manner in connection with the Agreement is Confidential Information and will be kept confidential at all times.
Permitted Disclosure of Confidential Information
11.2 The obligation of confidentiality at clause 11.1 does not apply to:
· any disclosure of Confidential Information required by law; or
· any disclosure of Confidential Information in a manner prescribed by government rules and or guidelines; or
· any disclosure of Confidential Information to a Party’s employees and contractors on a need-to-know-basis; or
· any disclosure of Confidential Information on a need-to-know-basis:
o a Minister; or
o any of that Party’s advisors; or
o any other government agency.
provided that any person to whom confidential information is disclosed is bound in writing by obligations no less onerous than those contained in clause 11, prior to disclosure.
11.3 In any Permitted Disclosure, the Parties must take reasonable steps to ensure that electronic and hard copies of the Confidential Information are not available for viewing by personnel who do not have a genuine need-to-know.
Disclosure
11.4 If one of the Parties is required, by law, to disclose any Confidential Information, that Party shall immediately give notice and inform the other Party in a manner and at a time reasonably sufficient for the other Party to express its view in relation to such disclosure (which view shall be taken into account by the Party required to disclose such information).
11.5 Subject to any legal requirements, each Party will give notice to the other Party if it receives a request for confidential information.
12. Variations to Agreement
12.1 This Agreement can be amended by written variation signed by both Parties.
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Signed for and on behalf of the [insert name of Council] Council: |
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Signed for and on behalf of MBIE: |
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