20 - ORDINANCE NO. 92 MODIFYING GENERAL MANAGERS CHANGE ORDER AUTHORITYItem 20
COST
A 9YESA SAT.A2T(DrsTRrc2'
... an Independent Speciaf District
Memorandum
To: The Board of Directors
From: District Counsel
Date: August 20, 2012
Subject: Adopt an Ordinance Modifying the General Manager's Change
Order Authority
Summary
The proposed ordinance would give the General Manager the authority to approve
change orders up to $15,000 or 10% of the original contract, whichever is greater.
Staff Recommendation
That the Board of Directors adopts Ordinance No. 92
Analysis
The General Manager currently has authority to approve change orders up to the
cumulative amount of 10% of the original contract and must receive Board approval for
change orders over 10% of the original contract amount, even when the change order
amount is as little as $500. This has become a cumbersome process when the original
contract was of low dollar value, and the change order even lower, but above the 10%
threshold.
It is recommended that the Board adopt the proposed ordinance giving the General
Manager authority to approve change orders up to $15,000 or 10% of the original
contract, whichever is greater. This will save staff and Board time on routine and low
dollar contract change
Strategic Plan Element & Goal
This item complies with the objective and strategy of Strategic Element 5.0,
Administrative Management, which states:
Protecting our community's health andthe environment by providing sofdwaste andsewer coffection services.
www. crosdca.gov
Board of Directors
August 20, 2012
Page 2 of 2
"Objective: To create, maintain and implement policies and procedures to ensure
sound management of the District. "
"Strategy: We will conduct periodic reviews, refine and implement policies and
procedures, and assure the General Manager has the direction and tools necessary
for successful District operations. "
Legal Review
The Associate District Counsel prepared this agenda item and the attached Ordinance
No. 92.
Financial Review
No costs have been identified to the District by implementing this ordinance.
Committee Recommendation
Not applicable.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for
the August 20, 2012 Board of Directors meeting at District Headquarters and on
District website.
Alternative Actions
1. Do not adopt the ordinance.
Attachment A: Ordinance No. 92
Attachment A
ORDINANCE NO. 92
AN ORDINANCE OF THE COSTA MESA SANITARY
DISTRICT REVISING THE GENERAL MANAGER'S
CHANGE ORDER APPROVAL AUTHORITY
WHEREAS, the Costa Mesa Sanitary District Operations Code provides that the
General Manager has authority to approve change orders up to the cumulative amount
of ten percent of the original contract; and
WHEREAS, the Board desires to provide the General Manager with authority to
approve change orders up to $15,000 without prior Board approval;
NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District
does hereby ORDAIN as follows:
Section 1. That subsection (e) of Section 4.04.060 of the Costa Mesa Sanitary
District Operations Code is hereby amended to read as follows:
"(e) Change Orders. The general manager shall have the
authority to approve change orders up to the cumulative amount of ten
percent of the original contract or fifteen thousand dollars ($15,000),
whichever is greater. The Board of Directors shall have the authority to
approve any change order exceeding that amount."
Section 2. Should any part, clause or section of this Ordinance be declared by any Court
of competent jurisdiction to be invalid, the remaining provisions of this Ordinance shall
nevertheless be and remain in full force and effect and the Board of Directors of the Costa
Mesa Sanitary District of Orange County, California, hereby declares that each and every
section, clause, provision or part of this Ordinance would have been adopted and made a
part of this Ordinance without the adoption of any portion thereof and that the invalidity of
any part or provision hereof shall not in any way affect the validity or enforcement of the
remaining provisions of this Ordinance that may stand on their own.
Section 3. Pursuant to Health and Safety Code Sections 6490 and 6491.3, the District
Clerk shall cause this ordinance or a summary thereof to be published in a newspaper of
general circulation printed and published in the District according to law.
PASSED and ADOPTED this day of , 2012.
Secretary
President
General Manager Change Order Authority Ordinance
Page 2of2
APPROVED AS TO FORM
District Counsel