Customer Service Guide
Disposal of Improved Real Property
April
2008
Department of Public Works and Services
Customer Service Guide
Disposal of Improved Real Property
Plain Language
The Department of Public Works and Services supports plain language communications. This guide was reviewed by the PWS Literacy Team for use of plain language.
Customer Service Guide
Disposal of Improved Real Property
Contents
Contents
Welcome ... 1
Disposal Policy ... 2
Priority Interests ... 2
Notice of Surplus ... 2
How do I identify properties as surplus? ... 2
How do I tell PWS that I need to dispose of surplus property? ... 3
Once I know I have surplus property, how soon do I have to report it to PWS? ... 3
Can I report property surplus if it’s contaminated? ... 3
Where can I get help to complete an environmental site assessment? ... 4
Does my agency always have to remediate a contaminated property? ... 4
Do I need to check whether the property is subject to transfer under a land claim or self-government agreement before sending a Notice of Surplus? ... 4
What happens after I submit a Notice of Surplus to PWS? ... 4
Does my agency remain responsible for surplus property until PWS disposes of it? ... 5
Is my agency responsible for the disposal costs? ... 5
Can I recommend who the property should be sold or transferred to? ... 5
What if my agency decides that the property is not surplus, after we’ve already reported it?... 5
Reallocation to Another GNWT Agency ... 6
How do I acquire surplus property? ... 6
Who can approve the property reallocation? ... 6
What happens when more than one agency expresses an interest in a property? ... 6
Disposal of Property Surplus to GNWT Requirements ... 7
Appraisal Report ... 7
When is a property appraisal required and what does it usually cost? ... 7
Report of Surplus ... 7
When does PWS begin disposing of a property that the GNWT no longer requires? .... 7
Sale to NWT Corporation ... 7
How are surplus properties sold to NWT Corporations? ... 7
Sale to Community Government ... 7
How does my agency have a surplus property sold to a community government?... 7
Who approves sale of surplus property to community governments? ... 8
Sale to Non-Profit Organization ... 8
How does my agency have a surplus property sold to a non-profit organization? ... 8
Who approves sale of surplus property to non-profit organizations? ... 8
Sale to General Public ... 8
Can GNWT employees purchase surplus property offered for sale to the public? ... 8
Demolition ... 8
Customer Service Guide
Disposal of Improved Real Property
Contents
Financial Administration ... 9
Notice of Surplus ... 9
What accounting is required when my agency decides a property is surplus? ... 9
Reallocation to Another GNWT Department ... 9
What value is used when reallocating a property between GNWT departments? ... 9
How does my agency account for the transfer of our surplus property to another GNWT department? ... 9
How does my agency account for the addition of a property that is being reallocated from another GNWT department? ... 9
Sale to NWT Corporation ... 10
What value is used when a property is sold to a NWT public corporation? ... 10
How is GST on the sale handled? ... 10
Sale to Community Government ... 10
What value is used when a property is sold to a community government? ... 10
What if the sale price is less than the fair market value? ... 10
How is GST on the sale handled? ... 10
Sale to Non-Profit Organization ... 11
What value is used when a property is sold to a non-profit organization? ... 11
What if the sale price is less than the fair market value? ... 11
How is GST on the sale handled? ... 11
Sale to General Public ... 11
What value is used when a property is sold to the general public? ... 11
How is GST on the sale handled? ... 12
Demolition ... 12
If a property is demolished, are the salvageable building materials and equipment sold? ... 12
Does my agency pay for the cost of demolishing a surplus property? ... 12
Disposal Process Responsibilities Table ... 12
References ... 13
Appendix A – List of PWS Property Disposal Contacts ... 13
Appendix B – Notice of Surplus Form ... 14
Appendix C – Protection and Maintenance of Surplus Property ... 16
Customer Service Guide
Disposal of Improved Real Property
1
Welcome
Welcome to the Department of Public Works and Services (PWS) Customer Service Guide to Disposal of Improved Real Property. Improved real property means buildings, structures and, in some cases, the land on which they are located, owned by the GNWT. It does not include mobile trailers, equipment, materials or other goods. Disposal of surplus goods guidelines are provided on the PWS webpage at
http://www.pws.gov.nt.ca/procurement/warehouse.htm
This guide is written in plain language. We use a question and answer format. It also includes pronouns that represent the following people or agencies, unless we state otherwise: “We”, “Us”, and “Our” refer to the PWS Property Management Team. A list of PWS property management team contacts is provided in Appendix A – PWS Property
Disposal Contacts.
“You” and “Your” refer to a territorial government department, board or agency (for brevity, this guide will refer to these customers as “agencies”) for which we provide improved real property disposal services. The definition includes an agency’s senior executive and financial officers, managers and employees. In questions, “I”, “Me” or “My” also refers to you because we assume you are asking the questions.
In addition to heading hyperlinksin the Table of Contents, the guide contains hyperlinks throughout, to assist you in using the document. When you click on a hyperlink, the linked text will appear. To return from the linked text to the hyperlink, click on the “Previous View” command icon ( ), that appears on the Adobe Acrobat Reader toolbar.
We hope you find this guide helpful. Should you have any questions or suggestions on how to improve the guide, please contact:
Chris Morgan
Policy and Procedures Officer Facility Management
Asset Management Division
Department of Public Works and Services Phone: (867) 873-7931
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Disposal Policy
The PWS Property Management Team is guided by GNWT Policy 32.05 Disposal of Improved Real Propertywhen disposing of most improved real property that a GNWT agency no longer requires.
Priority Interests
Under the Disposal Policy, we offer surplus property to certain priority interests in the following order:
First, we offer “surplus” property to other GNWT agencies. These agencies include departments, boards and the NWT Housing Corporation. Properties are transferred at no cost, however, there may be tangible capital asset accounting considerations (see the section on Financial Administration in this guide).
If no GNWT agency wants the property, we offer it for sale to NWT public corporations
through a competitive bidding process.
If no GNWT public corporation decides to purchase the property, we offer it for sale to the local community government at the appraised fair market value. However, a lower price may be negotiated to take into account the proposed use of the property.
If the community government does not purchase the property, we offer it for sale to local
non-profit organizations at the appraised fair market value, through a competitive purchase proposal process.
If the property is not sold to a non-profit organization, we offer it for sale to the general public through a competitive bidding process. The property is sold to the offerer who submits the highest acceptable bid.
Notice of Surplus
How do I identify properties as surplus?
Properties which may be identified as surplus to your needs include: Property being replaced or displaced by new construction
Property no longer efficient to operate or repair
Property which is no longer suitable for its intended use Property which is no longer needed
Property which has been repossessed by the GNWT from businesses for any reason Property which has been condemned by authorities for health or safety reasons
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How do I tell PWS that I need to dispose of surplus property?
Fill out and send a Notice of Surplus Improved Real Property form to our regional office for the location of the property. See Appendix A – List of PWS Property Disposal
Contacts.
The Notice of Surplus form contains: A description of the property
Information about the present and past use of the property - i.e. occupants, environmental contaminants, remediation that has taken place or is planned Reason(s) the property is surplus
Personal property (goods) on-site and disposal instructions
Disposal guidance such as, as-is-where-is, removal from site, land title, recommended disposition, other instructions
Agreement to accept disposal costs and authorization to proceed with disposal A sample of this form is provided in Appendix B – Notice of Surplusof this guide. However, you can also download a form template (MS Word format) from the PWS
Warehousing and Disposals web page.
A member of our Property Management Team can help you complete the form. If some information we need isn’t available, we may still conditionally accept your form and work with you to get that information.
Once I know I have surplus property, how soon do I have to report it to PWS?
Typically, you should report property at least 90 calendar days before the date you expect the property to be vacated and ready for disposal. If 90 calendar days is not possible, then as far in advance as you can.
Can I report property surplus if it’s contaminated?
Yes, but your Notice of Surplus Improved Real Property must tell us the extent of the contamination, your plans for remediation, and the extent the property can still be used in its current contaminated condition.
If there has been hazardous substance activity on the property, you must Tell us whether or not, during the time the GNWT owned the property, any hazardous substance activity took place on the property.
Tell us the type and quantity of hazardous substance, the time of storage, release, or disposal.
Tell us whether or not your agency took all remedial action necessary to protect human health and the environment and indicate if there is any remaining hazardous substance.
If remedial action has not been taken, you must tell us when you will complete any remedial actions. If no hazardous substance activity occurred on the property, state that in the Notice of Surplus.
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Where can I get help to complete an environmental site assessment?
PWS, in consultation with the Department of Environment and Natural Resources (ENR), can help you with a preliminary environmental assessment of the property. If this assessment shows there is contamination, normally you will need to hire a consultant to perform more detailed assessments. ENR administers the Environmental Protection Act and administrative guidelines concerning site contamination and remediation. Go to the ENR environmental protection services webpage for further information.
Does my agency always have to remediate a contaminated property?
No, it depends on the degree of contamination and the existing threat to public health and safety. If immediate remediation is not considered necessary, it can be made a condition of the property sale. This means, that the purchaser is informed of the extent of contamination and is made responsible for its remediation by a certain time.
Do I need to check whether the property is subject to transfer under a land claim or self-government agreement before sending a Notice of Surplus?
Yes. Before sending a Notice of Surplus to PWS, you should check with the Director of Negotiations at the Department of Aboriginal Affairs and Intergovernmental Relations (AAIR) and the Department of Municipal of Community Affairs (MACA) to find out if the property is subject to transfer under a self-government or land claim agreement. If the property is subject to transfer under an agreement, do not send a Notice of Surplus to PWS. Your agency should coordinate the property transfer with MACA and continues to be responsible for the property until the transfer is complete.
If the property is not subject to transfer under an agreement, you must state this when you complete the Notice Surplus.
What happens after I submit a Notice of Surplus to PWS?
A PWS property management specialist will promptly acknowledge receipt of the report of surplus in writing. Your Notice of Surplus is reviewed to ensure that it contains all required information. Within 15 calendar days, we will notify you if acceptable and we are able to proceed with disposal actions. However, if we need more information, you must be prepared to give us that information as soon as possible.
If your report is lacking so much information that we are unable to begin disposal action, we will return it to you along with an explanation as to why we cannot
proceed.
Generally, PWS will review your Notice of Surplus and physically inspect your property. Viewing the property helps us identify appropriate uses, understand the site’s nature and location, and spot any potential barriers to disposal.
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Does my agency remain responsible for surplus property until PWS disposes of it?
Yes, you are responsible for its custody and are accountable until it is transferred. We act as your broker or agent to dispose of the property quickly and our goal is to keep expenses and liability low.
If you, rather than PWS, is responsible for operations and maintenance of the property, you should ensure its protection and continue with a minimal operations and
maintenance, until the property is disposed. Appendix C – Surplus Property
Protection and Maintenance of this guide contains suggestions for the protection and maintenance of your surplus property pending its disposal.
Is my agency responsible for the disposal costs?
Yes, with the exception of PWS regular salary costs, you will be responsible for the disposal costs incurred. These may include travel costs, appraisal costs, survey costs, environmental site assessments, site remediation, tender advertising costs and
demolition costs. However, we will notify you of these costs before the disposal action. In addition, you will be responsible for the property net book value write-off, if applicable.
Can I recommend who the property should be sold or transferred to?
Yes, you may make a recommendation when you send in the Notice of Surplus. However, if your recommendation involves bypassing priority interests in the order specified by the Disposal Policy, you will need to obtain Cabinet approval through a Decision Paper jointly submitted with PWS.
What if my agency decides that the property is not surplus, after we’ve already reported it?
Generally speaking, PWS must approve withdrawal requests. However, usually as long as the property has not been transferred to another GNWT agency or is not encumbered by a legally binding agreement for disposal as surplus property, your agency may at any time, completely or partially, withdraw a Notice of Surplus.
You must request withdrawal of the Notice of Surplus in writing to the PWS regional office where you submitted the report. Also, the person (or designate) who signed the original Notice of Surplus, should be the one to request a withdrawal.
If the withdrawal is for part of the property, a legal description (of the part to be withdrawn) should be sent with the withdrawal request.
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Reallocation to Another GNWT Agency
How do I acquire surplus property?
We screen surplus property for 30 days with GNWT agencies. Your agency will receive a written notice (usually by e-mail) describing the property. If you are interested in possibly acquiring a surplus property, you must send an Expression of Interest to the applicable PWS Regional Office. We will then assist you to evaluate the feasibility of reallocating the property to you.
Who can approve the property reallocation?
If the property is to be left in its current location and no new funding (for renovation, upgrading, site remediation or operations and maintenance) is required, the Deputy Minister of PWS, or a designate, may approve the reallocation.
FMB approval is required when:
The property is being replaced by new construction and operations and maintenance funding is required
Funding is required to either relocate, upgrade or renovate the property Funding is required for remediation of the property
What happens when more than one agency expresses an interest in a property?
If more than one Expression of Interest is received, the Deputy Minister of PWS makes the reallocation decision based on feasibility studies and according to the principle of “highest and best use” of the property – i.e. the possible use of a property that would produce the greatest benefit. However, the Deputy Minister of PWS may also
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Disposal of Property Surplus to GNWT Requirements
Appraisal Report
When is a property appraisal required and what does it usually cost?
All property that is surplus to the GNWT needs will require a real estate appraisal to set a “fair market value”. PWS will perform a preliminary appraisal in-house and other than possible travel expenses to inspect the property, there are no additional costs. If the preliminary appraisal indicates the property value is greater than $50,000, an accredited real estate appraiser will be contracted to carry out an independent appraisal of the property. Depending on the type of property, fee appraisals are usually between $250 and $500 plus expenses.
Report of Surplus
When does PWS begin disposing of a property that the GNWT no longer requires?
Once the value and marketability of a property has been determined, we complete a
Report of Surplus. This provides authority for PWS to dispose of the property, either through offer for sale or demolition, depending on the marketability of the property.
Sale to NWT Corporation
How are surplus properties sold to NWT Corporations?
We invite NWT Corporations to submit bids and sell the property to the Corporation that submits the highest acceptable bid.
Sale to Community Government
How does my agency have a surplus property sold to a community government?
You should provide the community government with a letter supporting the sale of the property at less than the appraised value. Sponsoring the sale at a value less than appraised value will have a financial impact on your department. See the section on Financial Administration for more information.
What is “Fair Market Value”?
Fair market value is the amount that would be agreed upon in an open and unrestricted market by informed parties dealing at arms length and under no duress. We estimate fair market value by these appraisal methods:
Comparable sales (prices paid recently for comparable properties), and/or
Depreciated replacement cost approach (current cost to replace, depreciated for age, function and condition)
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Who approves sale of surplus property to community governments?
It depends on whether the community government is tax-based or non-tax-based, the grant-in-kind created and the appraised value of the property. See the section on Financial Administration for more information.
Sale to Non-Profit Organization
How does my agency have a surplus property sold to a non-profit organization?
You should provide the non-profit organization with a letter supporting the sale of the property at less than the appraised value. Sponsoring the sale at a value less than appraised value will have a financial impact on your department. See the section on Financial Administration for more information.
Who approves sale of surplus property to non-profit organizations?
It depends on whether a grant-in-kind is created and the appraised value of the property.
See the section on Financial Administration for more information.
Sale to General Public
Can GNWT employees purchase surplus property offered for sale to the public?
Yes, a GNWT employee can submit an offer to purchase with the following exception: GNWT employees who are directly involved in the disposal of surplus property and their immediate family or agents are excluded from bidding on or acquiring surplus property offered for sale.
All sales of surplus property to GNWT employees are subject to the approval of the Commissioner of the NWT.
Demolition
When does PWS decide to demolish a surplus property?
We demolish surplus property when the property cannot be sold or the site is required for construction of a new building and the surplus property cannot be moved.
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What happens to materials and equipment from the demolished property?
We promote “green demolition” practices so that the amount of waste taken to the landfill is minimized and any hazardous materials are disposed of properly. Depending on the time available, the size, type, condition and location of the property, we do this by:
Requiring demolition contractors to complete deconstruction plans
Giving salvage and recycling rights to demolition contractors (this also lowers demolition contract costs)
Selling or donating salvageable and recyclable materials and equipment
Financial Administration
Notice of Surplus
What accounting is required when my agency decides a property is surplus?
No fixed asset accounting is required until PWS notifies you that the property has been disposed. Until then, the property is considered to be in-service and continues to be amortized in your fixed asset records.
Reallocation to Another GNWT Department
What value is used when reallocating a property between GNWT departments?
Transfers of tangible capital assets from one department to another must occur at net book value to ensure gains/losses are not recorded.
How does my agency account for the transfer of our surplus property to another GNWT department?
Transfer the property acquisition cost and accumulated amortization from your fixed asset records to the other department.
How does my agency account for the addition of a property that is being reallocated from another GNWT department?
Record the asset acquisition cost and accumulated amortization in your fixed asset records.
What is deconstruction?
Deconstruction involves removing hazardous materials, salvaging reusable structural and/or non-structural building materials and recycling demolition materials. As a result, only a small percentage of demolition waste typically ends up in the landfill.
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Sale to NWT Corporation
What value is used when a property is sold to a NWT public corporation?
Use fair market value of the property when there is: An independent appraisal of the property; and A genuine business reason for the transfer; and
An intended, productive use of the property; i.e. not just holding for resale The disposing GNWT department must record any gains/losses on the sale. Use net book value of the property if the sale does not meet the above conditions.
How is GST on the sale handled?
GST applies on the sale or donation of all property, except residential property (such as staff housing and group homes). The amount of GST payable is based on the fair market value of the property. If GST applies to the sale, it must be paid by the NWT
Corporation.
Sale to Community Government
What value is used when a property is sold to a community government?
Use fair market value, as determined by a real estate appraisal, to account for sales to community governments.
What if the sale price is less than the fair market value?
If the fair market value is $5,000 or more than the sale price, the sponsor department must record a grant-in-kind.
If the fair market value is $50,000 or more than the sale price or you require funding for the grant-in-kind, you must obtain Financial Management Board approval to sell the property.
As the sponsor department, once the property is transferred, you will need to record the gain/loss on the sale.
How is GST on the sale handled?
GST applies on the sale or donation of all property, except residential property (such as staff housing and group homes). The amount of GST payable is based on the fair market value of the property. Either the community government or the sponsor department must pay the GST. In most cases, the GST payable is included in the grant-in-kind recorded by the sponsor department.
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Sale to Non-Profit Organization
What value is used when a property is sold to a non-profit organization?
Fair market value, as determined by a real estate appraisal, is the value used to account for sales to non-profit organizations.
What if the sale price is less than the fair market value?
If the fair market value is $5,000 or more than the sale price, the sponsor department must record a grant-in-kind.
If the fair market value is $50,000 or more than the sale price or you require funding for the grant-in-kind, you must obtain Financial Management Board approval to sell the property.
As the sponsor department, once the property is transferred, you will need to record the gain/loss on the sale.
How is GST on the sale handled?
GST applies on the sale or donation of all property, except residential property (such as staff housing and group homes). The amount of GST payable is based on the fair market value of the property. Either the non-profit organization or the sponsor department must pay the GST. In most cases, the GST payable is included in the grant-in-kind recorded by the sponsor department.
Sale to General Public
What value is used when a property is sold to the general public?
Fair market value, as determined by the highest acceptable bid offered, is used to account for sales to the public. Depending on the appraised value and marketability of the property, PWS may apply a minimum reserve bid to promote reasonable offers.
Any gains/losses on the sale are recorded in the owning department’s fixed asset records. PWS will notify you of the final sale price and other details for your asset accounting.
What is a minimum reserve bid?
A “minimum reserve bid” is the lowest acceptable bid amount. We set this amount before we offer the property for sale. To be considered, bids must be greater than the reserve bid. If no acceptable bids are received, we may consider lowering the reserve bid and re-offering the property for sale.
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How is GST on the sale handled?
GST applies on the sale or donation of all property except residential property (such as staff housing and group homes). The amount of GST payable is based on the price paid for the property. The purchaser must pay the GST.
Demolition
If a property is demolished, are the salvageable building materials and equipment sold?
Yes, if there is marketable salvage from the demolition, it may be offered for sale or used to offset the demolition contract cost. You will be notified of the salvage value, if any, for your asset accounting.
Does my agency pay for the cost of demolishing a surplus property?
Yes. However, we will attempt to minimize your costs by tendering the demolition contract and giving salvage rights to the successful contractor to offset the demolition cost.
Disposal Process Responsibilities Table
An overview of the information described in this guide is provided in Appendix D –
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References
For more information, you can read these documents:
GNWT Policy 32.05 – Disposal of Improved Real Property The Policy is available on the GNWT Policies web page at:
http://www.gov.nt.ca/publications/policies/index.htm
FAM Directive 401-5 – Grants-in-Kind
FAM Directive 602-4 – Tangible Capital Assets Control and Disposal FAM Directive 602-6 – Tangible Capital Assets – Sales and Transfers FAM Directive 704-3 – Accounting for Assets – Disposal of Public Property FAM Directive 704-4 – Deletion or Write-Off
The FAM directives are available on the FMBS document library at:
http://www.gov.nt.ca/FMBS/documents/FAMWeb/index.html
Environmental Protection Act and Guidelines
The Department of Environment and Natural Resources administers the
Environmental Protection Act and administrative guidelines. These are available at:
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Appendix A – List of PWS Property Disposal Contacts
Region/Area
North Slave Region Fort Smith Region Deh Cho Area Inuvik Region
Communities Served Dettah Edzo Gameti Ndilo Rae Snare Lake Wha Ti Yellowknife Enterprise Fort Providence Fort Resolution Fort Smith Hay River
Hay River Reserve Kakisa
Lutsel K’e
Fort Liard Fort Simpson Jean Marie River Nahanni Butte Trout Lake Wrigley Aklavik Colville Lake Deline
Fort Good Hope Fort McPherson Holman Inuvik Norman Wells Paulatuk Sachs Harbour Tsiigehtchic Tuktoyaktuk Tulita Contacts Jim Pagonis Property Officer Yellowknife (867) 920-6944 Glenn Bourke Property Officer Fort Smith (867) 872-7403 Ron McCagg Area Manager Fort Simpson (867) 695-7285 Todd Moran Project & Property Officer
Inuvik
(867) 777-7211
PWS Headquarters Technical Support Contacts:
SERVICE: General disposal advice and assistance
Mike Oram
Sr. Property Manager Facility Management
Asset Management Division (867) 873-7507
SERVICE: Disposal policy and procedures advice and assistance
Chris Morgan
Policy and Procedures Officer Facility Management
Asset Management Division (867) 873-7931
SERVICE: Asset accounting advice and assistance
Ranald Matheson Financial Analyst
Corporate Services Division (867) 873-7077
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Appendix C - Protection and Maintenance of Surplus
Property
Surplus improved real property protection and maintenance (P&M) objectives are: To keep the cost of managing the property economical.
To provide the minimum property management services needed to protect the property and the public and to preserve the Government’s equity in the property. To make safe any property that is dangerous to public health or the environment. To limit the costs of improvements or alterations, except when not doing so will adversely affect the disposal of the property.
To make or keep the property productive by allowing interim or temporary use of the property as long as it doesn’t interfere with disposal.
The principle of "calculated risk" should be applied when determining the extent to which excess or surplus property will be protected and maintained. Calculated risk simply means that the value of expected loss and/or deterioration is anticipated to be less than the costs of taking steps to minimize loss and/or deterioration.
The following standards (criteria) should be used as guidelines to determine the extent of P&M that should be applied.
Procedures
Periodic inspections should be conducted to determine whether or not certain services should be reduced or eliminated. PWS will recommend any changes that appear necessary or are desirable.
Protection Standards
For all protected properties:
Arrangements should be made with the local authorities to provide police and fire protection to the property
Security checks of the property should be performed
If a property is fenced, only keep open a minimum number of gates
Fire protection or security personnel are not needed at:
Properties that have no buildings, structures or related personal property.
Properties where the value of the improvements and/or related personal property (or realizable recovery of their value) is less than the cost to protect and maintain the property for one year.
Properties with little value, which can be locked or boarded up and are located within public police and fire department service areas.
Properties where major buildings do not contain large quantities of easily removable personal property and also are equipped with automatic sprinklers supervised by a monitoring service.
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Operating Requirements of Protection Units
Security personnel or maintenance staff should periodically patrol facilities requiring protection. The frequency of the patrols will be determined by the location and size of the facility, type of structures and physical barriers, and the amount and type of activity at the facility. In some instances, a centralized monitoring service provider is enough.
Protection Alarm Equipment
Automatic fire detection devices and related equipment and services can substantially reduce protection costs. However, use of these devices is primarily for obtaining fire and police protection in an emergency. Such devices can supplement or in some cases, eliminate the need for security patrols.
Maintenance Standards
The following standards or criteria should be used as a guide for the upkeep of surplus improved real property:
Don’t paint the interior. Only spot paint exterior wood or metal surfaces to prevent serious deterioration.
Limit carpentry and glazing to only that which is necessary to close openings to prevent weather damage and theft.
Repair damage to floors, roofs, and sidewalls to prevent further damage, use shoring and bracing to prevent structural damage.
Patch damage to roofing and sheet metal as necessary.
Perform masonry repairs, such as brick, tile, and concrete work only to prevent leakage or disintegration or to protect against imminent structural damage. Don’t heat buildings for maintenance purposes except in unusual circumstances.
Mechanical and Electrical Installations
These include plumbing, heating, ventilating, air conditioning, sprinkler systems, fire alarm systems, electrical equipment, elevators, and other similar systems.
For unoccupied properties:
Maintain mechanical and electrical systems only when necessary to stop or prevent serious deterioration.
Employ personnel for this work temporarily, at periodic intervals when an inspection indicates that this work is necessary.
De-energize electrical systems, drain water from all fixtures, turn off heat, and secure the building against unauthorized entry.
Drain sprinkler systems during freezing weather and reactivate when there is no danger of freezing.
Note: Before disabling any fire protection systems, seek advice from local fire protection services or the Office of the Fire Marshall.
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For occupied properties:
Keep equipment in reasonable operating condition.
Conduct checks on building equipment as required by applicable codes or regulations. Inspections should be made by qualified persons to protect against injury or death to personnel and damage to property.
Grounds, Roads, and Fencing
Limit grounds maintenance to the removal of vegetation in order to avoid fire hazards Plow fire lanes where needed.
Remove snow from roads and other areas to the extent necessary for access for maintenance, fire protection, and other similar activities.
Clear ditches and drainage facilities to allow surface water run-off.
Fencing and other physical barriers should be sufficient to protect against unauthorized entry. Fencing should be maintained.
Utilities
For unoccupied properties:
Maintain water systems, sewage disposal systems, electrical distribution systems, etc., to the extent necessary to provide minimum service.
De-energize electrical systems and turn off the water in buildings or areas that don’t require these services. Lighting systems should be maintained.
Don’t maintain utilities not in use or that service dismantled or abandoned buildings/structures.
For occupied properties:
Operation rates for water supply, electrical power, and sewage disposal facilities should be far below normal capacities.
Use engineering studies to determine structural and operating changes necessary for maximum economy.
Turn off and drain, rather than repair, leaky water lines unless they are necessary for fire protection or other purposes.
Properties Disposed of as Salvage
Do not spend money to maintain property whose highest and best use is demolition and salvage.
Repairs
Limit repairs to additions or changes necessary for preservation and maintenance of the property to:
Deter or prevent excessive, rapid, or dangerous deterioration.
Restore property damaged by storm, flood, fire, or accident when restoration is required.
Improvements
Don’t spend money to improve a property to increase its sales value or otherwise make it more disposable without consulting with PWS first.
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Appendix D – Disposal Process Responsibilities Table
Responsible Agency Surplus Pre-Disposal Reallocate to Other GNWT Agency & NWTHC Sell to NWT Public Corporation Sell to Community Government Sell to Non-Profit Organization Sell to General Public DemolishCustomer Agency Environmental site assessment (ESA) & remediation Property protection & maintenance (if PWS not responsible) Property shut-down FMB Submissions to obtain disposal funding, as required Notice of Surplus Remove property from Fixed Asset System records Transfer property acquisition cost and Accumulated Amortization to Other Department Notes: GNWT board properties are recorded in departmental Fixed Asset System inventories If property sold to NWTHC, dispose asset from FAS and FIS
Dispose of asset from Fixed Asset System and FIS
Dispose of asset from Fixed Asset System and FIS
Dispose of asset from Fixed Asset System and FIS
Dispose of asset from Fixed Asset System and FIS Record property disposal gain/loss Dispose of asset from Fixed Asset System and FIS Record property disposal gain/loss
Public Works and Services Assist with ESAs and remediation Provide (if responsible) or assist with property protection & maintenance Invite Expressions of Interest Evaluate reallocation proposals Co-sign FNB Submissions Conduct/contract property appraisals Prepare Report of Surplus Invite Offers to Purchase Invite Offer to Purchase Co-sign FMB Submissions Transfer property ownership Invite Purchase Proposals Evaluate purchase proposals Co-sign FMB Submissions Invite Offers to Purchase Evaluate Offers to Purchase Transfer owner Transfer property ownership Issue Demolition Contract Tenders Manage demolition contracts
Customer Service Guide
Improved Real Property Disposal
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Appendix D – Disposal Process Responsibilities Table
Responsible Agency Surplus Pre-Disposal Reallocate to Other GNWT Agency & NWTHC Sell to NWT Public Corporation Sell to Community Government Sell to Non-Profit Organization Sell to General Public DemolishPublic Works and
Services (continued) Provide (if responsible) or assist with property shut-down Notify Customer of reallocation decision Transfer property ownership Monitor purchaser compliance with terms and conditions of sale Notify Customer Agency of property disposal Monitor purchaser compliance with terms and conditions of sale Notify Customer Agency of property disposal Transfer property ownership Monitor purchaser compliance with terms and conditions of sale Notify Customer Agency of Disposal Monitor purchaser compliance with terms and conditions of sale Notify Customer Agency of Disposal Sell or donate salvageable and recyclable material Notify Customer Agency of property disposal Other GNWT Agencies Submit Expressions of Interest Prepare FMB Submission Record property acquisition cost and accumulated amortization
Sponsor Departments Consult with
MACA on proposed sale Complete FMB Submission, as required Record property disposal gain/loss Record grant-in-kind Complete FMB Submission, as required Record property disposal gain/loss Record grant-in-kind
Customer Service Guide
Improved Real Property Disposal
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Appendix D – Disposal Process Responsibilities Table
Responsible Agency Surplus Pre-Disposal Reallocate to Other GNWT Agency & NWTHC Sell to NWT Public Corporation Sell to Community Government Sell to Non-Profit Organization Sell to General Public Demolish Municipal and Community Affairs Provide direction to PWS on land disposal Consult with sponsor departments on proposed sales Note: See responsibilities for “Sponsor Departments” if MACA sponsoring sale Issue Land Leases Note: In some locations, land leases may be issued by the community government Issue Land Leases Note: In some locations, land leases may be issued by the community government Resources, Wildlife and Economic Development Provide advice on ESAs and site remediation Financial Management Board Secretariat Analyze FMB Submissions Provide accounting direction Analyze FMB Submissions Analyze FMB Submissions Financial Management Board Approve reallocation funding submissions Approve sales where appraised value is $50,000 or greater than sale price Approves grants-in-kind funding Approve sales where appraised value is $50,000 or greater than sale price Approves grants-in-kind fundingExecutive Council Approve waiving
priority interest screening in favour of direct sale to community government Approve waiving priority interest screening in favour of direct sale to non-profit organization Approve waiving priority interest screening in favour of direct sale to general public
