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HomeMy WebLinkAboutResolution - 4151 - Authoize City Manager-Approve Routine Contract Change Orders, G&S Contracts - 05_13_1993Resolution No. 4151 May 13, 1993 Item #43 RESOLUTION WHEREAS, the Local Government Code of the State of Texas provides at Sec. 252.048(c) that the governing body of municipalities may grant general authority to approve change orders to an administrative official within the amounts specified; and WHEREAS, the Charter of the City of Lubbock provides at Ch. 1, Art. X, Sec. 4(f) that the City Manager may perform such duties as are assigned to him by the City Council; and WHEREAS, the City Council deems it to be in the best interest of the citizens of the City of Lubbock to expedite the performance of City business by granting to the City Manager authority to approve change orders as specified by the Local Government Code; and WHEREAS, the City Council also deems it to be in the best interest of the citizens of the City of Lubbock to grant general authority to the City Manager to approve routine contracts for goods and services on approved City contract forms that do not require the expenditure of more than $10,000; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Manager of the City of Lubbock is hereby authorized and directed to approve routine contract change orders involving an increase or a decrease of $15,000 or less, or such other amount as may be specified by applicable provisions of state law hereafter. SECTION 2. THAT the City Manager of the City of Lubbock is hereby authorized and directed to appro rou 'ne contracts for goods and services involving an expenditure of $10 000 or le that are executed on standard City contract forms or in a for approved the 1.y orney. Passed by the City Council this th ayJof y 1993. 11 ATTEST: Betty M'. Jolt�i on, City Secretary APPROVED AS TO CONTENT: 9-ob Cass, Acting City Manager APPROVED AS TO FORM: 1&A A ToWil d G. Van fiver, First Assistan ;�� City Attorney DGV:dw/agenda-D2/Change0r.re9 rev. March 24, 1993 Verbatim Transcript May 13, 1993 Item #43 Resolution #4151 Consider a resolution authorizing_ the City Manager to approve routine contract change orders and routine contracts for goods and services. Massengale: Mayor, this item involves two separate authorizations for the staff. I consider this to be classified as a housekeeping item. The first one would allow change orders to be approved by the City Manager up to $15,000, which is allowed by state law. Currently, our policy only allows the City Manager to make change orders on construction contracts up to $5,000. This would make our policy consistent with that of state law. The second item is a ratification of the authority that we have assumed for years, and that is that anything up to $10,000 we did. The City Attorney felt like under certain circumstances that the City Council needs to give us authority to do that in an official way. We have always assumed that authority to handle purchases and contracts up to $10,000. Cooke: The first item, Robert, when it was set at $5,000, that was to make it coincide with state law. State law has changed; we're just changing with it. Massengale: That is correct. Neugebauer: There has been a bill introduced, I think, to increase that authority to $25,000. Cass: I believe last time the Governor vetoed it, so there is a probability that he will do that again. Massengale: I'm not sure that applied to change orders. Neugebauer: I would move that we approve Item #43. Patterson: I will second that, Mr. Mayor. Langston: I have a motion and a second. I had a request earlier by Ms. Ward to make comments on this issue. Mikel Ward: I guess our concern with the possibility, and maybe it's more in the form of a question that anything else, on the part dealing with change orders. Would this be the sum total in a project? I can see several change orders going in to a single project that could add up to quite a bit more cost overruns than had originally been intended, and of course ultimately it is up to the Council to decide these things anyway, but we just felt like it might be in the best interests to have at least have a little bit of a review process if several change orders were going in at one 10 Verbatim Transcript Resolution #4151 May 13, 1993 Page 2 time. Of course, currently we are at $5,000 on that, and it seems like a pretty steep increase. It may be standard procedure. I don't have any problem with the rest of that on the routine purchases over $10,000... because of the repetitive nature of those, I think they're fine. But, if anyone can answer that.... Massengale: Mayor, this would not authorize us to split a change order. The law would not allow us to split a change order into two smaller parts so that we could circumvent the law. Mayor: I think the question is, let's assume that you have a project for $100,000 and you get two or three change orders that are $15,000, you're up to $45,000 pretty quick in cost overruns. What's the situation in that regard? Ross: You have 25% limitation by state statute. Change orders cannot exceed 25% of the project. Change orders can go either way; they can go up or down. If they go down, you have to get concurrence of the contractor. Massengale: In addition to that, the City Council has a set budget and the staff could not exceed that; this does not allow staff to exceed the budget. It allows you to work within the budget. Mayor: I see. Patterson: There are some checks and balances, Mayor. Call for the question, Mr. Mayor. Mayor: Question has been called. All in favor respond by saying "aye." Any opposed by "nay." Passes 5-0. Verbatim Transcript May 13, 1993 Item #43 Resolution #4151 Consider a resolution authorizing the City Manager to approve routine contract change orders and routine contracts for goods and services. Massengale: Mayor, this item involves two separate authorizations for the staff. I consider this to be classified as a housekeeping item. The first one would allow change orders to be approved by the City Manager up to $15,000, which is allowed by state law. Currently, our policy only allows the City Manager to make change orders on construction contracts up to $5,000. This would make our policy consistent with that of state law. The second item is a ratification of the authority that we have assumed for years, and that is that anything up to $10,000 we did. The City Attorney felt like under certain circumstances that the City Council needs to give us authority to do that in an official way. We have always assumed that authority to handle purchases and contracts up to $10,000. Cooke: The first item, Robert, when it was set at $5,000, that was to make it coincide with state law. State law has changed; we're just changing with it. Massengale: That is correct. Neugebauer: There has been a bill introduced, I think, to increase that authority to $25,000. Cass: I believe last time the Governor vetoed it, so there is a probability that he will do that again. Massengale: I'm not sure that applied to change orders. Neugebauer: I would move that we approve Item #43. Patterson: I will second that, Mr. Mayor. Langston: I have a motion and a second. I had a request earlier by Ms. Ward to make comments on this issue. Mikel Ward: I guess our concern with the possibility, and maybe it's more in the form of a question that anything else, on the part dealing with change orders. Would this be the sum total in a project? I can see several change orders going in to a single project that could add up to quite a bit more cost overruns than had originally been intended, and of course ultimately it is up to the Council to decide these things anyway, but we just felt like it might be in the best interests to have at least have a little bit of a review process if several change orders were going in at one time. Of Verbatim Transcript Resolution #4151 May 13, 1993 Page 2 course, currently we are at $5,000 on that, and it seems like a pretty steep increase. It may be standard procedure. I don't have any problem with the rest of that on the routine purchases over $10,000... because of the repetitive nature of those, I think they're fine. But, if anyone can answer that.... Massengale: Mayor, this would not authorize us to split a change order. The law would not allow us to split a change order into two smaller parts so that we could circumvent the law. Mayor: I think the question is, let's assume that you have a project for $100,000 and you get two or three change orders that are $15,000, you're up to $45,000 pretty quick in cost overruns. What's the situation in that regard? Ross: You have 25% limitation by state statute. Change orders cannot exceed 25% of the project. Change orders can go either way; they can go up or down. If they go down, you have to get concurrence of the contractor. Massengale: In addition to that, the City Council has a set budget and the staff could not exceed that; this does not allow staff to exceed the budget. It allows you to work within the budget. Mayor: I see. Patterson: There are some checks and balances, Mayor. Call for the question, Mr. Mayor. Mayor: Question has been called. All in favor respond by saying "aye." Any opposed by "nay." Passes 5-0.