HomeMy WebLinkAbout12/4/2018 Item 13, Mattingly ��� � �:c�ur�ci� N��mc�r�r�dum
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DATE: December 4, 2018
TO: City Council
FROM: Carrie Mattingly, Utilities Director
David H�, Deputy Director- Wastewater
VIA: Derek Johnson, City Manager��
SUBJECT: Council Agenda Correspondence—December 4, 2018 Item# 13
There was a question posed related to the do]]ar amount of a Utilities Director's authority to
approve change orders and whether there were other examples of such authority being granted.
The Los Osos Valley Road oveipass project change order policy granted a proportionate amount
to the Public Works Project Manager and City Engineer respectively, albeit this project was
about 20% the size of the WRRF project. The intent of the policy change is to minimize proj ect
delays and costs related to City process. With the goal of reducing costs and delay, each change
order is vetted through construction and project management staff and other City staff to ensure
accuracy and fulfill project scope. On a project such as the WRRF, much of the infrastructure is
buried, the risk for unidentified underground conflicts during construction has been identified as
one of the highest risks on the project's risk register. Working with existing site features such as
structures, electrical,piping, and process equipment introduce project risk which also lnay
require change orders to address project needs. These conflicts and conditions have the potential
costly and impact the schedule if not addressed in a timely fashion.
Council could choose to change the proposed policy to the following or any other combination of
personnel/authority levels:
Up to $100,000—Utilities WRRF Project Manager
Above $100,000 to $1 million—Utilities Director
Over $1 million—Finance Director
Upon reaching 75% of the total contingency budget, the City Manager, Utilities Director,
Finance Director, City Engineer, WRRF Project Manager, and the budget review committee will
meet to discuss the City's plan to deliver the project on budget and notify the Council that the
project has hit this financial milestone.
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