Palm Springs Municipal Code Ch. 7.06 Contract Changes

(1) Policy.

(a) Modifications to a contract through a city-issued written amendment documenting the changes to the contract may be utilized for purposes of: (1) adding and/or deleting quantity of items being purchased; (2) modifying unit prices; (3) modifying the scope of work or services to be provided; (4) changing the funding sources; (5) changing the performance schedule; or (6) any other change required by the city.

(b) Changes to the purchase order can also be issued through the city's Enterprise System to add contract amendment changes or to make needed changes to a previously issued purchase orders.

(2) Specific authority.

(a) The city staff or the city manager may approve amendments to contracts or changes to purchase order for supplies and services if the amendments or changes are within the signature authority. Contracts and purchase order values are aggregated over the life of the agreement and therefore cannot exceed the signature authority in aggregate. For example, if a contract was signed by the city manager up to the signature authority limit and an amendment is needed the amendment would need Council approval as the aggregate will be over the city manager's signature. If the contract was originally approved by the city council, staff or the city manager could sign amendments up to the signature authority limit and anything over the city manager's limit would then go to Council. Once Council approval has been obtained at any stage, the signature authority limit may be reapplied up to the aggregate of the amount that has not be approved by Council.

(b) The city council shall approve contract amendments or purchase order changes for supplies and services where the aggregated amounts exceed the signature authority.

(c) During the approval of a contract or purchase order by the city council, the city council may delegate specific signature authority to approve contract or purchase order amendments, specific to that contract or purchase order, based on either a percentage of the original contract or purchase order amount or a specific dollar amount. If no specific signature authority is given by the city council, the city manager may approve contract amendments or purchase order changes for a city council awarded contract or purchase order up to the signature authority otherwise allowed pursuant to this chapter.

(3) Procedure. Contracts may be amended or changed through the use of formal amendments or change order documents. Departments shall contact the procurement and contracting department and/or the city attorney's office for any assistance needed in preparing these documents. The city manager may approve amendments and change orders if the amendments or change orders aggregated with the original contract do not to exceed the signature authority established by the city council, currently $150,000 for supplies and services (non-public projects) and $220,000 for construction projects. The city council may delegate specific signature authority to approve amendments or change orders, specific to that contract, based on either a percentage of the original contract amount or a specific dollar amount.

(Ord. 2108, 1/23/2025)

(1) Policy. Modifications to a contract for a public works construction project through a City-issued change order documenting the changes to the contract may be utilized for purposes of: (a) adding and/or deleting quantity of items being constructed; (b) modifying unit prices; (c) modifying the scope of work of the public project; (d) changing the funding sources; (e) changing the performance schedule; or (f) any other change required by the city.

(2) Specific authority.

(a) The city manager may approve change orders for public projects if the amount of the change orders aggregated with the original contract does not exceed the amount identified by Public Contract Code Section 22032(b),

(b) The city council shall approve change orders for public projects where the amount of the change orders aggregated with the original contract exceeds the amount identified by Public Contract Code Section 22032(b) currently $220,000. During the approval of a contract for a public project by the city council, the city council may delegate specific signature authority to approve change orders, specific to that public project, based on either a percentage of the original contract amount or a specific dollar amount. If no specific signature authority is given by the city council, the city manager may approve change orders for a city council awarded contract up to the amount identified by Public Contract Code Section 22032(b) currently $220,000, subject to an unencumbered appropriation in the funds against which such expenditure is to be charged.

(3) Exception. Change orders in excess of the city manager's signature authority or the amount identified by Public Contract Code Section 22032(b) currently $220,000 may be approved by the city manager and submitted to the city council for ratification at its next available regular meeting under the following circumstances:

(a) The failure to immediately issue a change order may result in significant cost increases or an unacceptable delay due to work stoppage or other inefficiencies;

(b) A regularly scheduled meeting of the city council is not available within a reasonable period of time to sufficiently remedy the issue presented with the proposed change order; and

(c) Funding for the change order is currently available within the appropriated budget for the public project.

(Ord. 2108, 1/23/2025)