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