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G-95-12-14-12C - 12/14/1995ORDINANCE NO. - -5-- I a - Jae., AN ORDINANCE AMENDING CHAPTER ONE, SECTION 1.1104(2), CODE OF ORDINANCES, (1995 EDITION), CITY OF ROUND ROCK, TEXAS TO INCREASE THE AUTHORITY OF THE CITY MANAGER TO APPROVE CHANGE ORDERS FROM $15,000 TO $25,000; PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS BE IN ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS THAT: I. Chapter One, Section 1.1104(2), Code of Ordinances (1995 Edition) of the City of Round Rock, Texas is hereby amended to read as follows: (2) Contract Change Order The city manager or his designee may approve change orders under the following conditions: (a) Any change involving a decrease or increase in cost of twenty-five thousand dollars ($25,000.00) or less, and (b) Provided, however, that the original contract price may not be increased by more than twenty five (25) percent or decreased more than twenty five (25) percent without the consent of the contractor to such decrease. II. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. C:\WPDOCS\ORDINANC\OR51214C.2WP/sls ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER ONE, SECTION 1.1104(2), CODE OF ORDINANCES, (1995 EDITION), CITY OF ROUND ROCK, TEXAS TO INCREASE THE AUTHORITY OF THE CITY MANAGER TO APPROVE CHANGE ORDERS FROM $15,000 TO $25,000; PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS BE IN ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS THAT: I . Chapter One, Section 1.1104(2), Code of Ordinances (1995 Edition) of the City of Round Rock, Texas is hereby amended to read as follows: (2) Contract Change Order The city manager or his designee may approve change orders under the following conditions: (a) Any change of fiftccn involving a decrease or increase in cost thousand dollars ($15,000.00 or less, and (b) Provided, however, that the original contract price may not be increased by more than twenty five (25) percent or decreased more than twenty five (25) percent without the consent of the contractor to such decrease. II. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. C:\WPDOCS\ORDINANC\OR51214C.WPD/s1s DATE: SUBJECT: ITEM: December 12, 1995 City Council Meeting, December 14, 1995 12. C. Consider an ordinance amending Section 1.1104 of the Code of Ordinances to give the City Manager the authority to approve change orders up to $25,000. (First Reading) STAFF RESOURCE PERSON: David Kautz This ordinance would incorporate changes in state law regarding contracts for public works projects or the purchase of materials into the City's Code of Ordinances. If a change order involves a decrease or an increase of $25,000 or less, state law now permits the City Council to grant general authority to the City Manager to approve the change orders with the following restrictions: a. Change orders which increase the total contract price are permitted only if additional money for the increased costs has been appropriated for that purpose. b. The original contract price may not be increased (under this section of the Local Government Code) by more than 25 percent. The original contract price may not be decreased (under this section of the Local Government Code) by more than 25 percent without the consent of the contractor. [reference: Section 252.048 LGC] Currently, the City Code of Ordinances reflects the old state law and limits the City Manager's change order approval authority to $15,000 or Tess. In consideration of the time saved in approving contract changes, meeting construction timetables and and in consideration of the safeguards discussed above, staff recommends approval of this ordinance.