HomeMy WebLinkAbout5F - City Purchasing Change Orders
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
POLICY
DISCUSSION:
SEPTEMBER 21, 1~
SF (V:
FRANK BOYLES J.. "-
CONSIDER APPRO OF AMENDMENT TO CITY PURCHASING
REGARDING CHANGE ORDERS
Historv
The City Council has adopted Purchasing Policy Guidelines in an effort to assure
adherence with state purchasing laws and generally accepted purchasing
practices, On September 8 the City Council conducted a workshop for the
purpose of providing staff direction regarding its policy with respect to change
orders,
Current Circumstances
The City Council directed that the staff make a number of changes to the policy
including:
1, Integrate the language of the new policy with the existing policy so it is not
duplicative.
2. Address change orders which result in cost savings,
3. Address cumulative change order reporting.
4, Clarify public safety and health change orders as distinct from other types,
Conclusion
The Council's directions have been incorporated into the attached policy
language and a copy of the revised policy was included in last week's update for
Council review.
FISCAL IMP ACT: Change orders are to be minimized. In some cases they cannot be avoided, In
such circumstances it is important for the Council and staff to have clear
guidelines so unnecessary and potential expensive project delays do not take
place,
AL TERNA TIVES: 1. Adopt the proposed policy language as part of the consent agenda,
2. Adopt a policy with revisions as the Council desires,
3, Defer action pending receipt of additional information,
RECOMMENDATION:
Alternative 1,
PROPOSED MOTION:
Motion and second as part of the consent agenda to adopt the revised purchasing
policy related to change items.
162QQ.~&;reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Contract Chanees
A contract approved by the City Council for construction/professional services may be increased
or decreased by written change order up to $25,000 provided such modification does not exceed
25% of the original contract amount in the aggregate, Any change order exceeding $25,000 must
be approved in advance by the City Council. The City Manager may approve a change order not
exceeding $25,000 if one of the following circumstances exists provided the contractor/vendor
apprises the staff of the necessary changes, an estimate of the costs and reasons for the changes
prior to actually conducting the work:
1. If additional work becomes necessary due to special circumstances or conditions arising that
could not be anticipated.
2, A delay in obtaining prior City Council approval will impede the progress of the project.
3. A delay in obtaining prior City Council approval may, subject to the contract documents,
result in a claim by the contractor for additional costs caused by the delay.
4. Where the public health and safety are in jeopardy, the City Manager may authorize a
change order in excess of $25,000, In such a case, the City Manager shall endeavor to
contact as many members of the City Council as practical under the circumstances. The
Open Meeting Law prohibits the City Manager from disclosing to any Councilmember his or
her discussion with another Councilmember.
5. In cases where approving the change order will result in a savings to the City,
The staff will schedule each change order for City Council consideration as soon as practicable.
The Change Order request shall include a staff report identifying the pertinent facts surrounding
the change order, the original contract amount, amount of the change order and cumulative
change order amount in dollars and percentage terms.