Committee begins review of Chapter 103 change-order authority; staff to return in 30 days

The Finance & Economic Development Committee opened a review of proposed revisions to Chapter 103 (purchasing and change-order procedures) at its Aug. 11 meeting and asked staff to return with refinements in about 30 days.

Staff provided a draft that would clarify definitions for change orders and field orders, set dollar-authority thresholds tied to the state competitive-bid amount, and add the capital projects manager and public service director as authorized signers for certain change orders to speed field decisions. Staff said the amount used in the draft is the state competitive-bid figure for the year (discussed in the meeting as $77,002.50), and that the city’s purchasing chapter should reference that figure while recognizing the city's charter allows council to set local parameters.

The law director cautioned that distinguishing field orders and change orders is important because construction work often requires immediate field approvals for quantity adjustments to keep crews working; the draft treats field orders similarly to change orders for the purpose of authorization thresholds. Committee members discussed whether to use a flat dollar threshold or a percentage-based authority for change orders and emphasized the need to limit large unbudgeted increases through comprehensive project scoping and clearer controls.

The committee did not vote on ordinance language at the meeting. Members asked staff to take about 30 days to coordinate with the law director and capital projects manager and return with recommended draft language and an implementation plan. The committee indicated a likely path toward recommending council consideration after staff and legal review.