048-21 - Resolution - Amending Section 7 Procurement PoliciesRESOLUTION NO.048-21
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON,
TEMPORARILY AMENDING SECTION 7 OF THE CITY OF PORT
ORCHARD'S PROCUREMENT POLICIES FOR THE SIDNEY AVENUE
SEWER REPAIR CONSTRUCTION PROJECT PERTAINING TO
CHANGE ORDERS.
WHEREAS, in early 2021, the City Council authorized the Sidney Avenue Sewer Repair
Construction Project to make time -sensitive repairs to the sewer infrastructure and sidewalk
and pavement repairs from Dekalb to Kitsap; and
WHEREAS, in April 2021, the City Council authorized a contract with ACI Construction
for the Project in the amount of $358,358; and
WHEREAS, changes in conditions for the Project have led to additional Work and
Change Orders for the Project, which are also time -sensitive and delaying the additional Work
would cause increased Project costs and delayed completion; and
WHEREAS, by the City's Procurement Policies, adopted by Resolution No. 042-20, the
City Council delegated signatory authority for Change Orders for large public works projects to
the Department Director (with a maximum delegated authority of $50,000) and to the Mayor
(with a maximum delegated authority of $100,000), so long as the particular Change Order did
not exceed 10% of either the Council -authorized budget for the project or the original contract
amount authorized by Council; and
WHEREAS, for smaller projects such as this Project, the 10% threshold can
unintentionally lower the $50,000 and $100,000 caps, requiring staff to return to Council for
certain Change Orders that are still under these caps; and
WHEREAS, staff requests the Council waive the 10% threshold, but not the $50,000 and
$100,000 caps, for this Project to ensure the Project moves forward without delay and still
consistent with the City Council's direction; and
WHEREAS, due to anticipated cost overruns, staff also requests an increase in the
delegated authority to $85,000 for the Department Director and $135,000 for the Mayor, to
avoid unnecessary delays in returning to Council for intermittent approvals; and
WHEREAS, the City Council finds that a temporary waiver is in the best interests of the
City and its residents by avoiding unnecessary delays and associated cost increases for this
critical Project; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
Resolution No. 048-21
Page 2 of 2
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The City Council modifies Section 7.0 of the City's Procurement Policies and
Procedures for this Project for its duration as follows:
Upon recommendation of the department director, and demonstration that a Change
Order is necessary and reasonable, the department director is authorized to approve
any and all Change Orders that do not exceed $85,000. The Mayor is authorized to
approve any and all Change Orders that do not exceed $135,000. A completed Change
Order form, attached as Exhibit 6, must be filed with the contract.
THAT: The Resolution shall take full force and effect upon passage and signatures
hereon and shall be automatically rescinded without further action of the City Council
upon completion of the Sidney Avenue Sewer Repair Construction Project.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 20th day of July 2021.
ATTEST:
_ -- - M i V
Brandy Rinearson, MMC, City Clerk
Robert Putaansuu, Mayor
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