Change orders rethought
July 28, 2016 at 4:25 p.m.
Just a week after the Warsaw School Board approved a resolution on change orders for the high school renovation project, that resolution has been deemed illegal.
So it's back to the drawing board.
At the May 16 meeting, the Warsaw School Board approved a motion to allow board member Dan Robinson and Warsaw Schools maintenance director Greg Schroeder to approve change orders up to $15,000. Any change orders over that amount must be brought before the full school board. Board member Deb Wiggins abstained. To date, the project has had - according to construction manager Marc Garrett - roughly 98 change orders.
Monday, Wiggins said the resolution approved by the school board May 16 had to be rescinded because it is in conflict with Indiana Code 36-1-12-18(a). "The resolution as adopted gives this board's fiduciary responsibility regarding change orders to two individuals and the state's statute clearly mandates that the approval and signing of change orders is the responsibility of the board."
She made a motion authorizing school board president Ron Yeiter and local legal counsel Max E. Reed to prepare for the board's review at the June meeting a policy or resolution for approving and signing change orders that follow state code. The process, according to her motion, must provide a process for the review of change orders between scheduled board meetings that "maintains the integrity of the board's fiduciary responsibility. It must allow for conditional approval on change orders, between board meetings, so that no unnecessary delay in the school building project is caused."
In addition, Wiggins' motion states that in order for the board to fulfill its responsibilities and to correct the errors noted in the recent audit report regarding change orders, Superintendent Dr. Dave McGuire must provide all school building project change orders not signed by the school board, accompanied by the approximate building contract section to which each change order applies. The board must receive, review, approve and sign all of the change orders not already approved by the school board at a special board meeting June 17.
Robinson provided the second to Wiggins' motion.
Cathy Folk, board member, voiced her displeasure of items being added to the agenda with no paperwork for board members to review in advance. She said it was the fourth time it's happened in five months.
Deb Wiggins said resolution approved May 16 was illegal. School board attorney Max Reed agreed, saying, "It is illegal in my opinion."
Wiggins said her motion will get the school corporation in compliance with the audit report and in the right direction.
According to an April 19 Times-Union story, a state audit of Warsaw Community Schools' finances raised questions about how the school corporation has been handling change orders for the high school construction project. State auditors said the change orders to that point had not been approved by the school board, as required by state law.
Sauders asked Wiggins to amend her motion to allow McGuire to also be a part of her motion to prepare the policy or resolution. "I have no problem with that," Wiggins said.
The change orders, she said, all reflect back to the contract. "We're going to have to become familiar with that contract in respect to change orders."
Wiggin's motion passed unanimously. [[In-content Ad]]
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Just a week after the Warsaw School Board approved a resolution on change orders for the high school renovation project, that resolution has been deemed illegal.
So it's back to the drawing board.
At the May 16 meeting, the Warsaw School Board approved a motion to allow board member Dan Robinson and Warsaw Schools maintenance director Greg Schroeder to approve change orders up to $15,000. Any change orders over that amount must be brought before the full school board. Board member Deb Wiggins abstained. To date, the project has had - according to construction manager Marc Garrett - roughly 98 change orders.
Monday, Wiggins said the resolution approved by the school board May 16 had to be rescinded because it is in conflict with Indiana Code 36-1-12-18(a). "The resolution as adopted gives this board's fiduciary responsibility regarding change orders to two individuals and the state's statute clearly mandates that the approval and signing of change orders is the responsibility of the board."
She made a motion authorizing school board president Ron Yeiter and local legal counsel Max E. Reed to prepare for the board's review at the June meeting a policy or resolution for approving and signing change orders that follow state code. The process, according to her motion, must provide a process for the review of change orders between scheduled board meetings that "maintains the integrity of the board's fiduciary responsibility. It must allow for conditional approval on change orders, between board meetings, so that no unnecessary delay in the school building project is caused."
In addition, Wiggins' motion states that in order for the board to fulfill its responsibilities and to correct the errors noted in the recent audit report regarding change orders, Superintendent Dr. Dave McGuire must provide all school building project change orders not signed by the school board, accompanied by the approximate building contract section to which each change order applies. The board must receive, review, approve and sign all of the change orders not already approved by the school board at a special board meeting June 17.
Robinson provided the second to Wiggins' motion.
Cathy Folk, board member, voiced her displeasure of items being added to the agenda with no paperwork for board members to review in advance. She said it was the fourth time it's happened in five months.
Deb Wiggins said resolution approved May 16 was illegal. School board attorney Max Reed agreed, saying, "It is illegal in my opinion."
Wiggins said her motion will get the school corporation in compliance with the audit report and in the right direction.
According to an April 19 Times-Union story, a state audit of Warsaw Community Schools' finances raised questions about how the school corporation has been handling change orders for the high school construction project. State auditors said the change orders to that point had not been approved by the school board, as required by state law.
Sauders asked Wiggins to amend her motion to allow McGuire to also be a part of her motion to prepare the policy or resolution. "I have no problem with that," Wiggins said.
The change orders, she said, all reflect back to the contract. "We're going to have to become familiar with that contract in respect to change orders."
Wiggin's motion passed unanimously. [[In-content Ad]]