HomeMy WebLinkAbout2015 10_City Manager to Approve Change Orders_2015.05.19CITY OF OWASSO, OKLAHOMA
RESOLUTION 2015 -10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO APPROVE CHANGE ORDERS UP
TO TWENTY -FIVE THOUSAND DOLLARS ($25,000) PER OCCURRENCE OR TEN PERCENT
(10 %) OF ANY CONTRACT, WHICHEVER IS LESS, SUBJECT TO THE LIMITATIONS OF THE
PUBLIC COMPETITIVE BIDDING ACT OF 1974,
WHEREAS, The Oklahoma Public Competitive Bidding Act of 1974, O.S. 61 § 121,
authorizes the governing body of a municipality to delegate approval of change orders up to
forty thousand dollars ($40,000) or ten percent (10 %) of any contract, whichever is less, to the
chief administrative officer of the municipality or their designee, with any approved change
orders reported to the governing body at the next regularly scheduled meeting; and
WHEREAS, The Charter of the City of Owasso, Section 4 -2, authorizes the City Manager to
contract and purchase for all departments and agencies of the City subject to regulations and
ordinances which the Council may adopt; and
WHEREAS, The Code of Ordinances of the City of Owasso, Section 7 -102, establishes
twenty -five thousand dollars ($25,000) as the limit of the City Manager's purchase or contract
approval authority.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, THAT:
Subject to the limitations of the Public Competitive Bidding Act of 1974, the City Manager or
designee is authorized to approve change orders up to twenty -five thousand dollars ($25,000)
per occurrence or ten percent (10 %) of any contract, whichever is less, with any approved
change orders reported to the City Council at the next regularly scheduled meeting.
APPROVED AND ADOPTED this 19th day of May, 2015 by the City Council of the City of
Owasso, Oklahoma.
cj.\\•( OF O Iz- *Jeberly, Mayor
7 )
oFrcrnL o ATTES �6M
SEAL
Sherry BisholkCity Clerk
ak�AHOMP
APPR ED AS TQ FORM
Juli Lombardi, City Attorney
Oklahoma Statutes Citationized
'Title 61. Public Buildings and Public Works
EAPublic Competitive Bidding Act of 1974
MSection 121 - Change Orders or Addenda
;ite as: O.S. §,
N. Change orders or addenda to public construction contracts of One Million Dollars ($1,000,000.00) or less shall not exceed a fifteen
)ercent (15 %) cumulative increase in the original contract amount.
3. Change orders or addenda to public construction contracts of over One Million Dollars ($1,000,000.00) shall not exceed the greater
if One Hundred Fifty Thousand Dollars ($150,000.00) or a ten percent (10 %) cumulative increase in the original contract amount.
Change orders or cumulative change orders which exceed the limits of subsection A or B of this section shall require a
-eadvertising for bids on the incomplete portions of the contract.
D. If the awarding public agency does not have a governing body, the chief administrative officer of the awarding public agency shall
approve change orders. The State Construction Administrator of the Construction and Properties Division of the Office of Management
and Enterprise Services, or the Administrator's designee, shall sign and execute all contracts and change orders, as they relate to
atate agencies.
E. If the awarding public agency has a governing body, all change orders shall be formally approved by the governing body of the
awarding public agency and the reasons for approval recorded in the permanent records of the governing body. The governing body
if a municipality or technology center may delegate approval of change orders up to Forty Thousand Dollars ($40,000.00) or ten
)ercent (10 %) of any contract, whichever is less, to the chief administrative officer of the municipality or technology center or their
iesignee, with any approved change orders reported to the governing body at the next regularly scheduled meeting.
_. The governing body of the Oklahoma Tourism and Recreation Department is authorized, upon approval of a majority of all of the
nembers of the Oklahoma Tourism and Recreation Commission, to delegate to the Director of the agency the authority to approve
:hange orders on a construction contract provided that the individual change order does not exceed Twenty -five Thousand Dollars
;$25,000.00) in expenditure and complies with the limits established by this section. The Administrator of the Division shall sign and
axecute all contracts and change orders.
3. The Transportation Commission may, by rule, authorize the Director of the Department of Transportation to approve change orders
n an amount of not to exceed Five Hundred Thousand Dollars ($500,000.00). Change orders approved by the Director shall be
)resented to the Transportation Commission during the next regular meeting and the reasons therefor recorded in the permanent
ecords. The Oklahoma Turnpike Authority may authorize the Director of the Authority to approve change orders in an amount not to
axceed Two Hundred Fifty Thousand Dollars ($250,000.00). Change orders approved by the Director of the Authority shall be
)resented to the Authority during the next regular meeting and the reasons for the orders recorded in permanent records.
-I. All change orders for the Department of Transportation or the Authority shall contain a unit price and total for each of the following
tems:
1. All materials with cost per item;
2. Itemization of all labor with number of hours per operation and cost per hour;
3. Itemization of all equipment with the type of equipment, number of each type, cost per hour for each type, and number of hours of
actual operation for each type;
A. Itemization of insurance cost, bond cost, social security, taxes, workers' compensation, employee fringe benefits and overhead cost
and
3. Profit for the contractor.
. 1. If a construction contract contains unit pricing, and the change order pertains to the unit price, the change order will not be
aubject to subsection A or B of this section,
2. When the unit price change does not exceed Twenty Thousand Dollars ($20,000.00), the unit price change order computation may
)e based on an acceptable unit price basis in lieu of cost itemization as required in paragraphs 1, 2, 3, 4 and 5 of subsection H of thi,
>ection.
3. When the unit price change exceeds Twenty Thousand Dollars ($20,000.00), any unit price for a new item established at or below
:he average eighteen- month -price history for the new item may be used in lieu of cost itemization as required in paragraphs 1, 2, 3, 4
and 5 of subsection H of this section.
J. Alternates or add items bid with the original bid and contained in the awarded contract as options of the awarding public agency
>hall not be construed as change orders under the provisions of the Public Competitive Bidding Act of 1974.
Historical Data
-aws 1974, HB 1665, c. 298, § 21, emerg. eff. August 1, 1974; Amended by Laws 1975, HB 1251, c. 266, § 9, emerg. eff. June 5,
1975; Amended by Laws 1989, HB 1257, c. 164, § 1, emerg. eff. May 8, 1989; Amended by Laws 1993, SB 414, c. 293, § 2, emerg.
aff. June 3, 1993; Amended by Laws 1995, SB 250, c. 200, § 3, emerg. eff. May 19, 1995; Amended by Laws 1997, HB 1745, c. 72,
1, eff. November 1, 1997 (superseded document available); Amended by Laws 1998, HB 2267, c. 118, § 1, emerg. eff. July 1, 199E
. 3 superseded document available); Amended by Laws 2000, SB 1172, c. 363, § 11, emerg. eff. June 6, 2000 (superseded document
available); Amended by Laws 2002, HB 2874, c. 294, § 22, eff. November 1, 2002 (superseded document available); Amended by
_aws 2004, HB 1695, c. 328, § 2, emerg. eff. July 1, 2004 (superseded document available); Amended by Laws 2006, SB 558, c.
271, § 23, emerg. eff. July 1, 2006 (superseded document available); Amended by Laws 2009, HB 1753, c. 257, § 3, eff. November
1, 2009 (superseded document available); Amended by Laws 2011, SB 426, c. 112, § 1, eff. November 1, 2011 (superseded
9ocument available); Amended by Laws 2012, HB 3074, c. 304, § 315 (superseded document available); Amended by Laws 2013,
-IB 1081, c. 170, § 1, eff. November 1, 2013 (superseded document available).
The City Wit ouf Lim i fs.
APPROVED BY COUNCIL
TO: The Honorable Mayor and City Council
City of Owasso t ,r+l 9 LUIJ
FROM: Sherry Bishop
Assistant City Manager
SUBJECT: Change Order Approval Authority
Resolution 2015 -10
DATE: May 15, 2015
BACKGROUND:
The Public Competitive Bidding Act of 1974 (Act) establishes requirements for public construction
contracts exceeding $50,000 for all public agencies in Oklahoma. The Act includes specific
requirements for the bidding and contracting process including authorization for change orders.
Section 121 of the Act covers change orders or addenda to public construction contracts.
Change orders are limited to 10% of the original contract amount or up to 15% if the contract is
less than one million dollars.
Prior to 2009, all change orders required governing body approval. Legislation in 2009 authorized
the City Council to delegate approval of change orders up to $40,000 or 10% of the contract,
whichever is less, to the city manager or designee with any approved change orders reported
at the next regularly scheduled meeting.
Many change orders are not time sensitive and waiting for the next City Council meeting would
not cause a project delay. However, there are times when that delay could create a concern.
Change order approval by the city manager would expedite the project.
The Owasso Code of Ordinances establishes the city manager's spending authority at $25,000.
This proposed resolution would extend that same spending authority to change order approval
within the statutory restrictions of the Public Competitive Bidding Act.
RESOLUTION 2015 -10:
The resolution would authorize the city manager to approve change orders up to $25,000 per
occurrence or 10% of the contract whichever is less. Approved change orders would be
reported to the City Council at the next regular meeting.
RECOMMENDATION:
Staff recommends approval of Resolution 2015 -10 authorizing the approval of change orders.
ATTACHMENTS:
Resolution 2015 -10
O.S. 61 § 121 Change Orders or Addenda