Ord 0146 06/2007ORDINANCE NO. 146
AN ORDINANCE OF THE VALLECITOS WATER DISTRICT ESTABLISHING RULES
FOR THE EXECUTION AND APPROVAL OF CONSTRUCTION CHANGE ORDERS
BE IT ORDAINED by the Board of Directors of the Vallecitos Water District as follows:
SECTION 1: The Board of Directors finds and determines that the following facts
are true and correct:
Section 1.1: The Vallecitos Water District has the Authority to construct
projects in accordance with sections 31005 and 31110 of the Water Code.
Section 1.2: The Vallecitos Water District Board of Directors authorizes
and awards construction contracts based upon project specific designs and responsive
bids received from licensed contractors.
SECTION 2: During the course of work, changes in the scope of work may occur
because of a variety of reasons resulting in the addition, deletion or modification of the
work. These changes may result in adjustments in the contract value and contract
duration. The contract change may be initiated by either the District or the contractor.
Section 2.1: Delays in approval of contract changes may result in
additional costs and delays that can materially impact the project and project schedule,
as well as environmental deadlines and regulatory permit conditions.
SECTION 3: The District Board of Directors desires to establish a policy that
provides the General Manager and Staff with direction on Construction Change Orders
and approval authority.
SECTION 4: The following limits have been developed for Construction Change
Orders that may be executed by the General Manager or his designee. Staff will
evaluate the need for the contract change and negotiate the proposed contract value
change as well as contract duration. All supporting documentation shall be attached to
the proposed change order and be maintained in the project file. Funding for the
allowable Construction Change Order limits defined below shall be included as a
specific line item within the project approval by the Board of Directors when the contract
is awarded for construction
Section 4.1: Contracts under $1,000,000 total value:
Section 4.1.1:
contract value.
Total changes orders shall not exceed 10 % of the
Section 4.2: Contracts with a total value of between $1,000,000 and
$5,000,000.
Section 4.2.1:
contract value.
Total Change Orders shall not exceed 7.5% of the
Ordinance No. 146
Page 2
Section 4.3: Contracts with a total value of between $5,000,000 and
$10,000,000.
Section 4.3.1:
contract value.
Total Change Orders shall not exceed 5% of the
Projects in excess of $10,000,000 shall be evaluated by staff with a recommendation by
the Engineering/Equipment Committee prior to Board award for determination of an
acceptable Construction Change Order value.
SECTION 5: Construction Change Orders exceeding the limits identified in
Section 4 shall be presented to the Engineering/Equipment Committee for review,
consideration and recommendation to the full Board of Directors for action. The
General Manager or his designee shall present a full and complete explanation and
justification supporting staff recommendation, which shall include a fiscal analysis by the
District Finance Department of the proposed change order on the project funding and
make a determination of the availability of additional funds for the project.
Construction Change Orders decreasing the contract value or no -cost Construction
Change Orders are not subject to the limits in Section 4 and may be executed by the
General Manager or his designee without Board action.
SECTION 6: The General Manager or his designee will provide quarterly
updates to the Engineering/Equipment Committee of all Capital projects under
construction with current contract values including all executed contract change orders.
All other Ordinances, Articles or Sections of Ordinances, or Amendments in conflict
herewith are hereby repealed.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Vallecitos Water District at the regular Board meeting held on this 6th day of June 2007,
by the following roll call vote:
AYES: FERGUSON, GENTRY, HANNAN, POLTL, SHELL
NOES:
ABSTAIN:
ABSENT:
ATTEST:
William W. Rucker, Secretary
Board of Directors
Vallecitos Water District
Darrell Gentry, President
Board of Directors
Vallecitos Water District