(A) Incorporation. The preambles to the ordinance codified in this section are hereby adopted and incorporated by this reference as if fully set out in this section.
(B) Adoption. It shall be the policy of the village to establish and implement a construction change order policy in substantial conformance with the policy det forth in division (D) of this section.
(C) Amendment. The Village Administrator, in consultation with the Village President and the Finance Committee, is hereby granted authority to amend the construction change order policy and/or any forms created for the implementation thereof as deemed necessary, expedient and in the best interest of the village without further action by the Corporate Authorities. Any such amendment shall be made in writing and published by the Village Clerk as the official construction change order policy of the Village of Elwood.
(D) Policy.
(1) The Village President and Board of Trustees for the Village (the Corporate Authorities) have the authority and responsibility to approve all public projects, including construction projects (projects) within the village where the aggregate expense for the project shall exceed $20,000, pursuant to its Procurement Ordinance (Ordinance 853). From time to time, it becomes necessary to revise the scope or terms of those projects through the use of change orders. In some instances, the change order will reduce the total project cost to the village. More frequently, however, the change order will require additional public funding. This policy has been established in order to insure that the Corporate Authorities have the necessary information and sufficient funds to approve any changes to the project and the additional cost, if any.
(2) Once it is determined by the Village Engineer(s), Village Planner(s) or other staff that a change order is necessary, village staff shall notify the Village Treasurer in writing. The Treasurer will review the original project price and the expenses and encumbrances incurred to date. The Treasurer will then prepare a financial change order report (the report). The report shall include the following information:
(a) The funding status of the project;
(b) The revenue source for funding the project;
(c) A determination of whether the budgeted revenue source has funds sufficient to cover the proposed change order; and
(d) A conclusion that if the original funding source cannot meet the amount required for the proposed change order, then alternate funding options will be outlined in the report.
(3) Where approval of the change order does not require Village Board approval pursuant to Ordinance 853, the Village Administrator may approve the proposed funding method, execute the change order, and authorize appropriate changes to the financial statements and budget document. If the proposed change order requires Village Board approval the changes will be made only after formal action is taken by the Board.
(4) Periodically, a change in a project will necessitate emergency action and a change order may be executed in an expedited manner, provided that there is an urgent and immediate necessity to act. In such cases the foregoing procedures will be followed to determine the source of funding for the change order after its administrative authorization has been reported to the Village Board, in accordance with the requirements contained in Ordinance 853.
(5) In all cases, the Treasurer shall make the appropriate changes to the operating budget and financial statements after approval.
(Ord. 917, passed 6-18-2008)