HomeMy WebLinkAbout05.b. Set public hearing on 10-6-16 to increase construction contract retention to 10% for the Headworks Screening Upgrade, District Project 7327 5. b.
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 15, 2016
Subject: SET PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING
THE CONTRACT RETENTION AMOUNT TO 10% FOR THE
HEADWORKS SCREENING UPGRADE, DISTRICT PROJECT 7327
Submitted By. Initiating Dept./Div.:
Craig Mizutani Engineering and Technical Services/
Senior Enginineer Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
E. Lopez—Capital Projects Division Manager yo�!:
JM. Petit— Director of Engineering and Technical Kent Alm Roger S.Bailey
Services Counsel for the District General Manager
ISSUE: California Public Contract Code Section 7201 states that the maximum a
public agency may hold as contract retention is 5%, unless a public agency finds 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.
BACKGROUND: 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 the Headworks Screening Upgrade Project, District Project 7327, is
sufficiently complex and includes critical plant equipment used to convey raw sewage
into the plant. The planned construction includes replacement of the Headworks
mechanical screens, new screening conveyance and disposal equipment, modifications
to the process mechanical, electrical, and control systems. Staff anticipates that a
number of sub-contractors and suppliers will be used by the general contractor, and
that the coordination efforts will be critical.
The current engineer's estimate for construction is $6,250,000. A significant portion of
the construction costs is related to procuring equipment and supplies. The project is
expected to require almost 18 months to complete due to the complexity of the work,
equipment lead times and wet weather construction restrictions.
The general contractor, its sub-contractors, and vendors will have to carefully
coordinate the work to ensure the timely and safe completion of the project. In the event
that stop notices or claims arise from sub-contractors or vendors, a 10% retention is
more likely to provide for sufficient funds to help address potential claims.
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POSITION PAPER
Board Meeting Date: September 15, 2016
Subject: SET PUBLIC HEARING TO RECEIVE COMMENTS ON INCREASING THE
CONTRACT RETENTION AMOUNT TO 10% FOR THE HEADWORKS
SCREENING UPGRADE, DISTRICT PROJECT 7327
ALTERNATIVES/CONSIDERATIONS: The Board may elect to not hold the public
hearing and keep the retention amount at 5%. However, this is not recommended due
to the substantial complexity of the project.
FINANCIAL IMPACTS: No District financial impact related to this action.
COMMITTEE RECOMMENDATION: This matter of setting a public hearing was not
reviewed by a Board Committee.
RECOMMENDED BOARD ACTION: Set October 6, 2016 at 1:30 p.m. as the date and
time for a public hearing to receive comments on increasing the retention amount to
10% for the Headworks Screening Upgrade, District Project 7327.
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