Title: TCG Municipal Guideline on Contracted Management of TCG-Owned Property
Date: ( 2005-8-3 Amended )
Amendment: Revised and promulgated in accordance with TCG 94.8.3.(94) Fu-Fa-San-Tzu No.09415555800(Original Title: TCG Guideline on Contracted Management of TCG-Owned Property)
Article 1
Taipei City Government (hereinafter referred to as TCG) for intensifying management of
property owned by TCG (hereinafter referred to as TCG-owned property) and for enhancing
operational benefits of TCG-owned property formulated this Municipal Guideline.
Contracted management of TCG-owned property shall be in accordance with provisions of
this Municipal Guideline. In the event where no provision is found in this Municipal
Guideline, provisions of related rules and regulations shall apply.
Article 2
The term“contracted management”mentioned in this Municipal Guideline refers to the
situation where the TCG Contracting Agency (hereinafter referred to as the Contracting
Agency) contracts management of TCG-owned property as it is to the contractor. The
contractor shall be responsible for safekeeping and maintenance of the property and may
charge fees in accordance with the product or service provided.
The term“feedback payment”mentioned in this Municipal Guideline refers to the amount
allocated by the contractor out of the operation profit for furthering TCG development
as feedback to contract awarding.
Article 3
Governing agency of the TCG-owned property assigned for contracted management
shall be the Contracting Agency.
Article 4
TCG-owned properties eligible for contracted management include the following:
1 Education and culture: Kindergarten, children’s playground, museum, zoo, athletic
facility, social education institution.
2 Agricultural, forestry, fishery, husbandry products: Manufacturing, exhibition of
agricultural, forestry, fishery, husbandry products; wholesale outlets, recreational
farm.
3 Social welfare: Social welfare service facility, funeral facility.
4 Healthcare and medical facility.
5 Public hazard prevention/treatment: Waste recycling/treatment facility, sewage
treatment facility, garbage treatment facility, incinerator, and reuse of garbage
field after it is closed.
6 Public road transportation: Public road and downtown transportation right or related
facility (including bus dispatch station and workshop).
7 Recreation: Tourism night market, recreational facility, park and folk arts
exhibition/performance facility.
8 Other TCG-owned properties designated by TCG for specific purposes.
Article 5
Contractors shall establish independent accounting for the contracted operation and
shall be solely responsible for the profit/loss. The Contracting Agency shall not
provide any monetary subsidies. However, in the event where the contracted operation
is for public welfare or where the contractor is willing to finance improvement of the
original facility, the Contracting Agency may provide subsidies in accordance with the
nature of the operation or for a specific project after it verifies that the
improvement can indeed enhance quality of the services.
The amount of the subsidies above shall be determined by the City Council in accordance
with the budgetary procedures after the proposal prepared by the Contracting Agency and
approved by TCG is submitted to the City Council.
Article 6
The Contracting Agency shall prepare the deputation proposal or guideline for contracted
management of TCG-owned property for submission to the City Council by TCG. The
deputation proposal or guideline shall be implemented after it is approved by the City
Council. However, contracted management cases involving neither staff downsizing nor a
property value of more than NT$100,000,000, as well as contracted management cases
implemented before revision of this Municipal Guideline, shall be exempted from this
requirement.
Cases within the purview of the proviso of the preceding paragraph shall be filed with
the City Council for reference.
Article 7
The content of the deputation proposal or guideline shall include the following:
1 Purpose, goal, items and scope of the contracted management.
2 Method of the deputation.
3 Resources and budgetary subsidies that the Contracting Agency can provide.
4 Standard for computing the deposit, rent, use charge, feedback payment and licensing
fee floor price of contracted management (including abatement/exemption of feedback
payment and licensing fee floor price, and projected income percentage).
5 Contractor’s right and responsibility (including required amount of investment,
required expenses and other right and responsibility).
6 Duration of contracted management.
7 Items for which and standard by which contractor may collect fees.
8 Contractor’s qualification.
9 Supervision and incentive of contracted management.
10 Analysis of the effect (including economic, social and cost benefit, as well as
investment return) of contracted management.
11 Draft of deputation contract.
12 Other related matters.
Article 9
In the event where the contracted management case is defined as such that the items
for which and standard by which fees may be collected by the contractor shall be
established by TCG, fees shall be collected in accordance with the fee-collection
standard that exists before the contracted management. However, during the term of
the contracted management the contractor may pursuant to approval of TCG adjust the
fee-collection standard in accordance with that of public entities or with consumer
price index. In the event where the contractor due to investment in related facilities
proposes to add fee-collection items or establish fee-collection standard, the
investment calculation and proposed fee-collection standard shall be submitted to the
Contracting Agency for TCG approval.
Article 10
Contracted management of TCG-owned property shall be awarded through open procedures.
Applicants for contracted management of TCG-owned property shall submit the operational
proposal, financial proposal and related documents to the Contracting Agency for review
in conjunction with concerned TCG agencies. Following the initial qualification, the
Contracting Agency in accordance with the nature of the operation and the feedback
payment or licensing fee floor price may follow any of the ensuing procedures:
1 Open bidding: Qualified applicants participate in open bidding. The one with the
highest feedback payment or licensing fee floor price or profit sharing percentage shall
be awarded contract. However, in the event where the feedback payment or licensing fee
of the winning bid is lower than the floor price prescribed in Article 8 by less than
10%, detailed reason must be given for submission to TCG for finalizing whether the
bidder shall be awarded the contract. In the event where the feedback payment or
licensing fee of the winning bid is lower than the floor price prescribed in Article 8
by more than 10%, the tender shall be submitted to the City Council for review.
2 Open selection: The Contracting Agency on case-by-case basis invite concerned staffs
and experts to select the winning bid. The number of staffs and experts each shall not
be less than one-third of the total number of reviewers. In the event where the
contractor is approved to establish all the items for which and standard by which fees
may be collected, the open bidding method must be followed, the open selection method
is not allowed.
In the event where proposals and related materials submitted for contracted management
of agricultural wholesale market reach the same standard or receive the rating in the
review, preference shall be given to farmer’s associations or corporations formed out
of investment of farmer’s associations.
Article 11
For contracted management of TCG-owned property, the Contracting Agency and the
contractor shall enter into an agreement, which is subject to the approval of TCG
and shall be notarized by the court.
Article 12
The agreement for contracted management of TCG-owned property shall specify the
following matters:
1 Name of the deputation case.
2 Full name of the Contracting Agency and the contractor.
3 List of objects and facilities under contracted management, and requirements on
maintenance management, insurance, taxation and damage compensation.
4 Operations, items, scope and principle of contracted management.
5 Duration of contracted management.
6 Items for which and standard by which fees may be collected by the contractor.
7 Rent, use charge, feedback payment, licensing fee and deposit required of the
contractor.
8 Rights and responsibilities of both parties (including the amount of investment
required of the contractor, expenses the contractor is responsible for and other rights
and responsibilities).
9 Guarantee of the third party’s rights and public safety.
10 That the contractor may be refuse annual periodical or intermittent audit conducted
by the Contracting Agency.
11 That the contractor’s annual financial statements for the contracted operation such
as the loss/profit table and asset/liability table shall be certified by the accountant
and filed with the City Council for reference after it is verified by TCG. In the event
where the contractor is a non-profit corporation or organization, the annual financial
statements may be exempted from accountant’s certification.
12 Liability or penalty of contract violation.
13 Provisions on change of the content of the deputation.
14 Conditions of termination, cancellation, continuation of the contract.
15 Terms that both parties are to abide by.
16 That following mutual negotiation and adjustment the operational proposal submitted
by the contractor and attached to the contract shall be of the force as the contract.
17 Other stipulated matters.
Article 13
In the event where any of the following occurs in contracted management of TCG-owned
property, the Contracting Agency may terminate or cancel the contract:
1 In conjunction with policy requirement, the project is to be recalled.
2 The purpose of the TCG-owned property is changed.
3 The cause for contracted management disappears.
4 Change of urban planning.
5 In the event where after being notified by the Contracting Agency of the area that
requires improvement, the contractor refuses to improve by the deadline or fails to
make improvement that meets the Contracting Agency’s requirement.
6 The contractor is found in violation of the rules or regulations that govern the
industry.
7 The contractor is found in violation of the autonomous guidelines.
Article 14
Operations of TCG-owned property under contracted management shall be limited to
the defined scope of operations. The contractor shall function as a faithful maneger.
Proposals for contract transfer (limited to subsidiary operation), addition of
facilities or change of original facilities shall be submitted by the Contracting
Agency to TCG for approval.
Article 15
In the event where the contractor desires to renew the contract upon its expiration,
the contractor shall within three months before the contract expires submit the work
performance report to the Contracting Agency for review. In the event where the
contractor’s work performance is approved by the Contracting Agency, the renewal
request shall be submitted to TCG for approval. The total period of contracted
management shall be no more than nine years.
Article 16
In the event where the contractor decides not to renew the contract upon its
expiration, or in the case of contract termination or cancellation, the contractor
shall return the deputed property, all properties and materials added during the
period of contracted management, and the entire management right to the Contracting
Agency and may not request for any compensation. However, this requirement does
not apply to objects that the Contracting Agency agreed to return to the contractor
during the approved reconstruction or procurement.
In the event where after being notified by the Contracting Agency of the deadline for
returning government properties mentioned in the preceding section the fails to comply,
the Contracting Agency may in accordance with provisions of the Administrative
Implementation Act enforce the requirement.
Article 17
The Contracting Agency may establish incentives for encouraging contractors of
outstanding contract performance.
Article 18
Within three months after TCG-owned property under the care of TCG agencies is deputed
to contracted management, concerned organization and staff lists shall be submitted to
the City Council for revision, cancellation or suspension.
Article 19
This Municipal Guideline shall be in effect on the date it is promulgated.