Armidale Regional Council passes the power over half a million dollar tenders to the chief executive

MORE POWER: Armidale Regional Council chief executive officer Peter Dennis can now decide to accept tenders up to half a million dollars.

MORE POWER: Armidale Regional Council chief executive officer Peter Dennis can now decide to accept tenders up to half a million dollars.

CHIEF executive Peter Dennis can accept $500,000 dollar tenders without council’s nod of approval.

Uralla Shire Council and Tamworth Regional Council have limits of $150,000.

The rule was first brought in by former-administrator Ian Tiley and was voted on by the new council in November.

Mayor Simon Murray said the decision makes good business sense, given the budget exceeds $110 million.

“The delegated authority of $500,000 has reduced the amount of tendering reports that are required to go to council for a resolution,” Cr Murray said.

“It has also resulted in a faster and more efficient procurement process.

“This is then reflected in better and more timely services for our community, and more affordable rates.”

The Express asked Glen Innes Severn Council for their limit, it remains at $150,000, as does Tenterfield Shire Council.

It’s the same amount that triggers the need for a project to go to public tender.

With a considerably higher delegation of authority than other councils in the region, there are checks and balances on the process.

Executive leadership team members Mark Piorkowski and Lindsay Woodland must minute the CEO determinations.

These decisions are then reported to council quarterly.

Every tender approval has to meet the requirements of the Local Government Act and Local Government Regulation, as well as council’s own procurement policies.

Cr Murray said $500,000 is conservative given the $110 million annual spend.

“Some councils have adopted a higher delegation of $1 million, which is reflective of their size and budget,” he said.

“Tenders approved under delegated authority [$500,000 and under] tend to be more operationally focused.

“Tenders above the $500,000 threshold that need to be approved by council are usually for major infrastructure projects, for example, Armidale Regional Airport and the new landfill.”

The state government allowed new limits for tender delegations of authority in 2016.

This story Half million dollar man, chief executive wields new purse strings | poll first appeared on The Armidale Express.

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