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Item 5 - Ordinance Regarding Procedure for Approval of Change Orders to Construction Contracts il lib AGENDA REPORT® OE c� E Wqr CITY OF POWAY CA A ) \C%ly OJT' /V TME O TO: Honorable Mayor and Members of .e City Council t FROM: James L. Baversox, City Manag• •'- nt INITIATED BY: Kay D. Jimno, Director of Administrative ices Douglas A. Milton, Purchasing Manager DATE: March 18, 1986 SUBTEXT: Ordinance Regarding Procedure for Approval of Change Orders to Construction Contracts ABSTRACT It is necessary for the City of Panay to adopt an ordinance giving authority to the City Manager under Chapter 2.08 of the Poway Municipal Code to approve certain Change Orders on capital improvement project contracts. 13N3KGROUND It is understood that in the course of work on a construction project, changes in the original contract may be necessary because of unforeseen circumstances. Most times when a change order is required against a CIP contract, time is of the essence, and following the required administrative procedure for getting change orders approved causes unwanted delays in progress. What is required is an alternative to bringing every change order before the Council for approval before proceeding with the added work. FINDINGS Staff has determined that while all change orders, where time is not a factor, should be channeled via the standard administrative procedure, it is felt that a provision should be included in the Panay Municipal Code, Chapter 2.08, giving authority to the City Manager to sign those change orders that require immediate attention and do not involve a sum in excess of $5,000. !‹/i ACTION: ����� for 3-25-86. p6 Seibert, Deputy City Clerk S. III MAR 18 1986 ITEM 5 410 410 Agenda Report - Approval of Change Orders March 18, 1986 Page 2 RECIDATION It is recamended that the City Council: a) introduce and hold first reading of the attached ordinance entitled, "An Ordinance of the City of Poway, California, Adding New Section 2.08.070(L) To the Poway Municipal Code, Providing Authority to the City Manager for Approving Capital Improvement Project Contract Change Orders, Renumbering Existing Section 2.08.070(L) , and Rescinding City Council Policy No. 3"; and b) continue public hearing and set second reading for March 25, 1986. JLB:KDJ:DAM:ml Attachment: 1) Ordinance • • 2 of 4 MAR 18 1986 ITEM 5 410 410 ORDINANCE NO. AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA ADDING Na SECTION 2.08.070(L) TO THE POWAY MUNICIPAL CODE PROVIDING AUTHORITY TO THE CITY MANAGER FOR APPROVING CAPITAL IMPROVEMENT PROTECT CONTRACT CHANGE ORDERS, RENUMBERING EXISTING SECtION 2.08.070(L): AND RESCINDING CITY COUNCIL POLICY NO. 3 WHEREAS, in order that Capital Improvement Projects proceed on schedule without delays resulting from the need' for changes in contracts caused by unforeseen circumstances, authority should be given to the City Manager to authorize such changes prior to bringing the change before the City Council. Section 1: SECTION 2.08.070 PARAGRAPH (L) OF THE POWAY MUNICIPAL CODE SHALL BE AMENDED TO READ AS FOLLOWS: Section 2.08.070(L) . The City Manager shall be authorized to sign contract change orders without prior City Council approval if time is of the essence and the change order does not exceed 25 (twenty-five) percent of the contract amount or $5,000.00, whichever is less. The City Council shall approve such change orders at the next scheduled Council meeting. Section 2: RENUMBERING OF EXISTING SECTION 2.08.070(L): Existing Section 2.08.070(L) shall be renumbered to Section 2.08.070(M). Section 3: POLICY RESCINDED: CityCouncil Policy Number 3, "Execution of change orders to construction projects" adopted by the Poway City Council is hereby rescinded and of no further force and effect. 3 of 4 MAR 18 1986 ITEM 5 410 410 Ordinance No. Page 2 EFFECTIVE DATE: This ordinance shall take effect and be in force thirty (30) days after the date of its passage; and before the expiration of fifteen (15) days after its passage, it shall be published once with the names and members voting for and against the same in the ;Panay News Chieftain, a newspaper of general circulation published in the City of Poway. Introduced and first read at a regular meeting of the City Council of the City of Panay held the day of , 1986, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held the - day of , 1986, by the following roll call vote: II AYES: COUNCIIMEMBERS: • NOES: COUNCIIMEMBERS: ABSENT: COUNCIIMEMBERS: Carl R. Kruse, Mayor Marjorie K. Wahlsten, City Clerk 6/0/Changel-Change2 4 of 4 MAR 18 1986 ITEM 5