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HomeMy WebLinkAbout04.h. Set public hearing to increase construction contract retention to 10 percent (2)Central Contra Costa Sanitary District f� ' BOARD OF DIRECTORS 1. POSITION PAPER Board Meeting Date: September 6, 2012 Subject: ESTABLISH SEPTEMBER 20, 2012, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING THE CONSTRUCTION CONTRACT RETENTION AMOUNT TO 10% FOR THE SEISMIC IMPROVEMENTS FOR HOB, DP 8226 Submitted By: Initiating Dept. /Div.: Nathan Hodges, Associate Engineer Engineering /Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: Q L N. Hodges P. Seitz A. Antkowiak K. Alm An—n-11f. Farrell General Manager ISSUE: The California Public Contract Code was amended to establish that the maximum a public agency may hold as the construction contract retention is 5 %. However, a public agency may find at a properly noticed and normally scheduled public hearing that a project is substantially complex to justify that a higher amount of retention should be withheld. RECOMMENDATION: Establish the Board's regularly scheduled meeting on September 20, 2012, as the date the Board holds a properly- noticed public hearing to find that DP 8226 is substantially complex to justify an increase to the construction contract retention to 10 %. FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: The Board may elect to not hold the hearing and keep the retention amount at 5 %. However, this is not recommended due to the substantial complexity of the project. BACKGROUND: In 2011, the Legislature changed the Public Contract Code to establish the maximum amount a public agency could withhold on a construction contract as 5 %. The new maximum retention amount became effective January 1, 2012. A public agency may increase the retention amount on a specific project upon finding that the project is sufficiently complex to justify the increased retention. Staff believes that DP 8226 is sufficiently complex to justify 10% retention. The planned seismic improvements require modification to the HOB's structural support system, including the use of temporary shoring. Other critical building systems will require modifications to accommodate the seismic work, including electrical, HVAC, and fire suppression. Staff anticipates that a number of sub - contractors and suppliers will be used by the general contractor. N: \PESUP \Position Pape rs \Hodges \8226 set 10% retention 9 -20 -12 Final.DOC Page 1 of 2 POSITION PAPER Board Meeting Date: September 6, 2012 Subject: ESTABLISH SEPTEMBER 20, 2012, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING THE CONSTRUCTION CONTRACT RETENTION AMOUNT TO 10% FOR THE SEISMIC IMPROVEMENTS FOR HOB, DP 8226 The seismic retrofit generally consists of welding in additional plates on each of the 9 columns. The new plates will run the full height of HOB. In addition, small braces will be welded on to nearly all beam - column connections. These braces will be installed at 64 of the total possible locations (112 total beam - column connections). There is a large amount of welding requiring various techniques, including full penetration, partial penetration, and fillet. New steel will have to be cut and welded around existing steel components, and some floor joist detailing will be modified to accommodate the new steel. The perimeter of HOB is supported by cantilevered beams. These beams will require temporary shoring during the welding work, because the cantilevered connection may weaken as the steel is heated during the welding process. The contractor will be responsible for designing the specific shoring system to accommodate the given loading. With the addition of the new structural steel, there will be several instances where building support systems will require permanent relocation. This will effect electrical, HVAC, and fire suppression systems, including relocation of fire sprinkler lines. These lines will have to be tested and approved by the fire marshal before HOB is re- opened. With the addition of new fittings, the fire system will have to be carefully analyzed and tested to assure fire suppression design parameters are satisfied. The general contractor, subcontractors, and suppliers will have to carefully coordinate the work to ensure the timely and safe completion of the project. In the event that claims arise from sub - contractors or suppliers, 10% retention will likely provide sufficient funds to address claims. Finally, it is critical that this project be completed on time, because most of the District's employees must be relocated to leased temporary offices. RECOMMENDED BOARD ACTION: Establish the Board's regularly scheduled meeting on September 20, 2012, as the date for a public hearing to receive comments on increasing the retention amount to 10% for the Seismic Improvements for HOB, DP 8226. NAPESUP \Position Papers \Hodges \8226 set 10% retention 9 -20 -12 Final.DOC Page 2 of 2