(A) Monitoring of change orders. It is the policy of the city to monitor change orders as revisions to municipal contracts on a timely basis and report such change orders so that any required budgetary revisions can be effected and so that funding can be made available before invoices are processed.
(B) Approval of change orders for public works contracts. Change orders for public works contracts shall be approved only as follows:
(1) The Department Head or Consulting Engineer supervising the public works contract shall submit the change order, together with an explanation of the reason for the change order, to the City Administrator for review.
(2) The City Administrator may approve increases in public works construction and engineering contracts due to change orders, not to exceed in total 10% of the awarded contract amount without City Council approval subject to the following conditions:
(a) No single change order may exceed $10,000 without City Council approval, and any single change order which exceeds $10,000 shall be approved only after a written determination that: (i) the circumstances said to necessitate the change were not reasonably foreseeable at the time the contract was signed; or (ii) the change is germane to the original contract as signed; or (iii) the change order is in the best interest of the city and is authorized by law. The written change order and the written determination shall be preserved in the contract file, which shall be open to the public for inspection.
(b) Any series of change orders, which authorizes an increase in the cost of the public works contract by a total of $10,000 or more shall be approved only after the City Administrator makes a determination in writing as provided in division (B)(2)(a) of this section. The written change order and the written determination shall be preserved in the contract file, which shall be open to the public for inspection.
(3) All change orders resulting in increases in public works contracts, which exceed a total of 10% of the awarded contract amount, shall be submitted by the City Administrator to the City Council for approval.
(4) Any proposed change orders resulting in increases in public works contracts, which would exceed a total of 50% of the original awarded contract price if approved, are not allowed. That portion of the proposed change to me original awarded contract work must be re-bid according to the bidding procedures set forth in this subchapter.
(C) Requirement to report change orders to public works contracts. Regardless of the amount, the City Administrator shall report all approvals of change orders, which increase the cost of public works construction and engineering contracts to the City Council, in writing, at the earliest possible time but in any event not later than the next regularly scheduled City Council meeting.
(Ord. 01-01, passed 5-22-01; Am. Ord. 05-40, passed 1-24-06; Am. Ord. 08-2, passed 5-13-08; Am. Ord. 14-16, passed 4-8-14)