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HomeMy WebLinkAbout07.a. (Handout)za. (Handou� Item No. 7.a. Public Hearing to Increase the Construction Contract Retention for The Seismic Improvements for HOB District Project 8226 Andrew Antkowiak Provisional Capital Projects Division Manager September 20, 2012 Central Contra Costa Sanitary District Public Contract Code Amendment • In 2011 the Governor signed SB 293 modifying Public Contract Code Section 7201 to set the maximum retention on a construction contract at 5 %. • This requirement began January 1, 2012 and sunsets January 1, 2016. • The intent of the bill is to provide some financial relief to contractors and subcontractors during these challenging economic times by reducing retention from 10% to 56/6. • The retention amount may be increased for a specific project with a finding by the elected Board of Directors that the project is substantially complex to justify the increased retention. • The finding must be made at a properly noticed and scheduled public hearing prior to bidding the project. 1 Background On September 6, 2012, the Board established 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. Notice of the Hearing was advertised in the Contra Costa Times and San Ramon Valley Times on September 10, 2012 Substantially Complex Project Staff believes that the Seismic Improvements for HOB is a substantially complex project. • The seismic retrofit consists of welding additional plates and braces on each of the nine columns that run the full height of HOB. • The perimeter of HOB is supported by cantilevered beams which will require temporary shoring during the welding work. • With the addition of new structural steel, many critical building support systems will require permanent relocation. This will necessitate modifications of electrical, HVAC, and fire suppression systems. • Staff anticipates that a number of sub - contractors and suppliers will be used by the general contractor, and that the coordination of this work will be difficult. 2 Welding plates on the columns will impact all areas and floors of the building and associated electrical, mechanical, architectural and other improvements. Staff Recommendation • Find that in accordance with Public Contract Code Section 7201, the Seismic Improvements for HOB, District Project 8226, is substantially complex to justify increasing retention. • Adopt a resolution increasing the construction contract retention amount to 10 %. 3 Questions...?