HomeMy WebLinkAbout04.d. Set public hearing to increase contract retention to 10%Central Contra Costa Sanitary District BOARD OF DIRECTORS % POSITION PAPER Board Meeting Date: January 24, 2013 Subject: ESTABLISH FEBRUARY 7, 2013, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING THE CONTRACT RETENTION AMOUNT TO 10% FOR THE PRIMARY TREATMENT RENOVATIONS, DP 7285 Submitted By: Initiating Dept. /Div.: Nathaniel Morales, Associate Engineer Engineering /Capital Projects REVIEW D AND RECOMMENDED FOR BOARD ACTION: A A - "ws%4 ci,, N. Morales R Seitz A. Antkowiak K. Alm Curtis W. Swanson Interim General Manager ISSUE: The California Public Contract Code was amended to establish that the maximum a public agency may hold as 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 February 7, 2013, as the date the Board holds a properly- noticed public hearing to find that Primary Treatment Renovations, DP 7285, is substantially complex to justify an increase to the 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 Section 7201 to establish the maximum amount a public agency could withhold on a 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 Primary Treatment Renovations, DP 7285, is sufficiently complex to justify 10% retention. The planned improvements require modifications to the primary process' mechanical, electrical, controls and 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. N: \PESUP \Position Papers \Morales \7285 - PP Set 10% Hearing.DOC Page 1 of 2 POSITION PAPER Board Meeting Date: January 24, 2013 Subject: ESTABLISH FEBRUARY 7, 2013, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING THE CONTRACT RETENTION AMOUNT TO 10% FOR THE PRIMARY TREATMENT RENOVATIONS, DP 7285 Two of the four primary sedimentation tanks were constructed in the mid 60s and the final two tanks were constructed in the mid 70s as part of the 5A expansion project. Most of the piping and components in the primary treatment area are more than 35 years ago, with some approximately 50 years old. Piping and process components have been observed to be corroding, requiring more maintenance, or otherwise are nearing the end of their respective service life. This project will renovate or replace the scum collection system and the water and air pipelines at the primary sedimentation tanks. In addition, the project will include renovation of concrete, hand railing, lighting, and electrical upgrades to the motor control center that provides power to the primary treatment facilities. The project will also include installation of a scum thickening unit on the third floor of the Solids Conditioning Building, construction of a new grit handling facility, a PE pump VFD and the upgrade of a PE pump. The project is expected to require a minimum of 18 months to complete due to complexity of work, long equipment lead times and wet weather construction restrictions. 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 is more likely to provide sufficient funds to address claims. RECOMMENDED BOARD ACTION: Establish the Board's regularly scheduled meeting on February 7, 2013, as the date for a public hearing to receive comments on increasing the retention amount to 10% for the Primary Treatment Renovations, DP 7285. NAPESUP \Position Papers \Morales \7285 - PP Set 10% Hearing.DOC Page 2 of 2