Title
MOTION TO RATIFY THE CITY MANAGER'S APPROVAL OF CHANGE ORDERS TO THE CITY'S UTILITY FUNCTION SOURCING CONTRACTOR, OPERATIONS MANAGEMENT INTERNATIONAL, INC. (OMI), IN THE AMOUNT OF $77,473.74.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines CHANGE ORDER. Changes, due to unanticipated conditions or developments, made to an executory contract, which do not substantially alter the character of the work contracted for, and which do not vary so substantially from the original specifications as to constitute a new undertaking. The changes must reasonably and conscientiously be viewed as being in fulfillment of the original scope of the contract rather than as departing therefrom. Further, the changes, when viewed against the background of the work described in the contract and the language used in the specifications, must clearly be directed either to the achievement of a more satisfactory result or the elimination of work not necessary to the satisfactory completion of the contract.
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(B) states that "Notwithstanding the provisions of (A) above, the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission's approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000.
SUMMARY EXPLANATION AND BACKGROUND:
1. On April 15, 2020, the City Commission approved the amended and restated agreement with Operations Management International, Inc. (OMI) for the Operation, Maintenance, and Management of the City's Utility System in the amount of $8,387,652 for the first year with CPI increases for each year thereafter, until September 30, 2025.
2. Throughout the term of ...
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