2012/03/28 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 1 PROJECT TITLE: C8 P.0 -1(A0 Ordinance Relating to Public Consent COUNCIL BILL# Works Projects and Amending Action Originating Dept. Public Works/Legal Ordinance No.2761-04(EMC r? .3- First Reading Contact Person Tim Benedict 3.80.050)and Ordinance 2726- J,�f/.a, Second Reading Phone Number 425-257-8669 03 (EMC 3.84.030) Aar Third Reading FOR AGENDA OF Public Hearing Initialed by: Department Head CAA ARM Council President .m.ipp rip Location Preceding Action Attachments Department(s)Approval Adoption of Ordinance No.2761-04 and 2726-03 Draft Ordinance Public Works,Legal,Admin Amount Budgeted -0- Expenditure Required -0- Budget Remaining -0- Additional Required -0- DETAILED SUMMARY STATEMENT: The purpose of this ordinance is to fix four portions of the change order ordinance(EMC 3.80.050)and the bid protest ordinance(EMC Chapter 3.46.)that have proven ambiguous or difficult to implement. The first fix concerns the authority of the Mayor to sign change orders for projects with original contract value of $5 million or more. As currently written,the ordinance states that Council may adopt a specific resolution setting change order limits for each of those projects,but does not say what happens if Council does not adopt such a resolution,which is usually the case. The proposed ordinance amendment would,if City Council does not adopt a resolution setting change order limits,make the limits of the Mayor's change order authority for projects of$5 million or more subject to the same formula as applied to projects with original contract value between $1 million and$5 million. In other words,Mayor will be able to sign change orders that cumulatively total slightly more than 10%of the original contract value without Council approval. Once change orders on a project cumulatively exceed approximately 10%of original contract value,all subsequent change orders will require Council approval. The second fix concerns the change order authority of the Mayor to extend completion deadlines for projects. As currently written,the ordinance states that the Mayor may extend contract time"up to twenty working days or thirty calendar days without prior Council approval,"but the ordinance is ambiguous whether that limit is per change order or is a cumulative limit. The proposed ordinance would make the limit thirty working days or forty five calendar days per change order without Council approval,but would require prior Council approval for all time extensions once the time extensions in total exceed 50%of the original contract time. The third fix concerns change order authority for small works projects. The ordinance currently merely states that the ordinance does not apply to small works,without stating what change order authority for small works actually is. The proposed ordinance amendment clarifies that small works change orders are governed by the City's purchasing policy guidelines. The fourth fix concerns the bid protest procedures ordinance,which is the City's generic protest ordinance meant to cover almost all procurements. However,there are some procurements,particularly large public works projects of $5 million or more for which the City uses alternative public works contracting procedures under Chapter 39.10 RCW, where the generic protest procedures are difficult to apply or not appropriate. The proposed amendment would create an exception in the bid protest ordinance for such large projects that gives Council authority on a case-by-case basis to adopt by resolution substitute,custom protest procedures for the large project. RECOMMENDATION: Adopt An Ordinance Relating to Public Works Projects and Amending Ordinance No.2761-04(EMC 3.80.050)and Ordinance 2726-03 (EMC 3.84.030). 1