Every contract modification, change order, or contract price adjustment in an amount less than five percent (5%) of the original contract amount may be approved by the department director and Purchasing Agent. Every contract modification, change order, or contract price adjustment in an amount of five percent (5%) or more than the original contract amount is subject to prior written certification by the head of the department responsible for the project or the contract, or other official responsible for monitoring and reporting upon the status of the costs of the total project budget or contract budget, as to the effect of the contract modification, change order, or adjustment in contract price on the total project budget or the total contract budget. In the event that the certification discloses a resulting increase in the total project budget and/or the total contract budget, the purchasing agent shall not execute or make such contract modification, change order, or adjustment in contract price unless sufficient funds have been appropriated therefor, or the scope of the project or contract is adjusted so as to permit the degree of completion that is feasible within the total project budget and/or total contract budget as it existed prior to the contract modification, change order, or adjustment in contract price under consideration; provided, however, that with respect to the validity, as to the contractor, of any executed contract modification, change order, or adjustment in contract price which the contractor has reasonably relied upon, it shall be presumed that there has been compliance with the provisions of this section.
Notwithstanding the above, every contract modification, change order, or contract price adjustment in excess of more than 5% of the contract price shall require prior approval of the City Council unless the delay necessitated by such prior approval would: endanger public health, welfare, or safety; endanger property; cause or prolong disruption of public utility service, or result in increased costs to the City. If prior council approval is not obtained, such approval shall be requested within thirty (30) days of approval by the department director.
(Amended by Ordinance No. 9831, effective 08-25-2021)