Memorandum #202 Purchases and Contracts Requiring Specific Board Authorization

Revised: October 18, 2017
Date of Issue: June 4, 1969

The Board of Trustees assumes the ultimate responsibility for the operation of the College, the prudent use of its resources, and for maintaining productive and supportive relations with regulatory and funding agencies. In exercising its responsibility to the public and private sources which annually provide the College with its operating and capital budget revenues, the Board of Trustees approves the annual budget prior to the start of each fiscal year. In addition to approving the aggregate budget plan, the Board will specifically approve certain types of expenditures and contractual relationships. These specific approvals may occur either as a part of the annual budget adoption process or as individual items brought to the Board during the course of the fiscal year through the Board of Trustees Business Affairs Committee.

The following financial transactions require specific Board approval:

• Development of New or Modified Facilities - Any program for the development or modification of a college facility and associated equipment with a total project value of one hundred thousand dollars ($100,000) or greater.
• Construction Change Orders - Any construction change order with a unit value of one hundred thousand dollars ($100,000) or greater. Normally the construction change order should be approved by the Board before it is authorized by the College's construction manager. If a postponement in approving a change order would seriously delay an essential project or create an exposure to contractor claims for delay of project, and if the change order can be accommodated within available construction dollars, then the President after consulting with and receiving approval from the Chair of the Business Affairs Committee, may authorize proceeding with the change order with the understanding that the change order will be presented to the Business Affairs committee at its next scheduled meeting.
• Capital Purchases or Leases - Any single item or combination of complementary capital items with an annual cost of one hundred thousand dollars ($100,000). This includes both property leases and capital purchases with the exception of personal computers that are in included in the College’s budgeted refresh plan.
• Capital Write-Offs - Disposal of capital equipment and other real property with an original acquisition price of fifty thousand dollars ($50,000) or greater.
• Real Estate Acquisition - All acquisition of real estate including land and buildings. Potential real estate gifts to the College must be formally accepted by the Board before title to the property is transferred.
• Debt Obligations - Any agreements to borrow funds on behalf of the College. This includes both long-term debt such as bonds and mortgages as well as short-term borrowing for operating purposes.
• Accounts Receivable Write-Offs - Payments from any one source due to the College with a book value of twenty-five thousand dollars ($25,000) or greater for which staff believe there is no basis to expect payment.
• Professional and Other Services - Engagement of professional and any other service, regardless of type, with an expected annual expense or revenue volume of one-hundred thousand dollars ($100,000) or greater, requires Board approval. Purchase of other services with an expected value less than $100,000 whose costs are contained within the approved college budget may be authorized by the President or his or her designee. 
• Renewals, Extensions and Change Orders for Professional and Other Services
  • Contract renewal options, if presented to the Board at the time of initial award with a stated dollar value, do not require a subsequent Board approval.
  • Contract extensions of a twelve-month duration or less do not require Board approval unless the annualized value of the extension exceeds 110% of the annual value of the expiring contract. No more than two (2) twelve-month extensions are permitted without approval by the Board of Trustees.
  • Change orders to contracts for professional or other services that cause the value of a contract to exceed $100,000 require that the modified contract be approved by the Board of Trustees. If a postponement in approving a change order would seriously delay an essential project, then the President may authorize proceeding with the change order, after consulting with and receiving approval from the Chair of the Business Affairs Committee, with the understanding that the modified contract will be presented to the Business Affairs committee at its next scheduled meeting.

Date Effective: September 7, 2017