Item 5 - Ordinance Regarding Procedure for Approval of Change Orders to Construction Contracts il lib AGENDA REPORT®
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CITY OF POWAY
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TO: Honorable Mayor and Members of .e City Council
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FROM: James L. Baversox, City Manag• •'-
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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.
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ACTION: ����� for 3-25-86.
p6 Seibert, Deputy City Clerk
S.
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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.
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Attachment:
1) Ordinance
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2 of 4 MAR 18 1986 ITEM 5
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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:
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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