HomeMy WebLinkAbout12.a. Conduct public hearing to consider adopting resolution to increase the construction contract retention from 5% to 10% for the Headworks Screening Upgrade, District project 7327 12.a.
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: October 5, 2015
Subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A
RESOLUTION TO INCREASE THE CONSTRUCTION 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 K9V lre7
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.
The finding to increase the construction contract retention amount must be made prior
to receiving bids for the project. If the Resolution is adopted by the Board, the increased
retention amount and resolution will be included in the project bid documents. This
project is currently advertised for public bid with an anticipated bid opening by late
October.
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 subcontractors 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 $5,250,000. 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.
Page 1 of 2
POSITION PAPER
Board Meeting Date: October 5, 2015
Subject-' CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A
RESOLUTION TO INCREASE THE CONSTRUCTION CONTRACT
RETENTION AMOUNT TO 10% FOR THE H EADWORKS SCREENING
UPGRADE, DISTRICT PROJECT 7327
The general contractor, its subcontractors, 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 subcontractors or vendors, a 10% retention is more likely to
provide for sufficient funds to help address potential claims.
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: The Engineering and Operations Committee
reviewed this subject at the September 22, 2015 meeting, and recommended adopting
the Resolution.
RECOMMENDED BOARD ACTION: Adopt a Resolution finding that, in accordance
with the California Public Contract Code Section 7201, the Headworks Screening
Upgrade, District Project 7327, is substantially complex to justify increasing the
construction contract retention amount from 5% to 10%.
Attached Supporting Documents:
1. Proposed Resolution
2. PowerPoint Presentation
Page 2of2
ATTACHMENT 1
RESOLUTION 2016-04f
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
INCREASING THE RETENTION AMOUNT TO 10% FOR THE HEADWORKS
SCREENING UPGRADE, DP 7327
WHEREAS, the Central Contra Costa Sanitary District's (District) Treatment Plant
Headworks Facilities are a part of the wastewater treatment process, and are critical
to the effective treatment of wastewater; and
WHEREAS, in 2011 the Legislature modified Public Contract Code Section 7201 to
set the maximum amount that could be withheld by a special district as retention on a
construction contract at 5% and that this retention amount-could only be increased if
the public agency found the specific project was sufficiently complex to warrant it;
and
WHEREAS, the Headworks Screening Upgrade, District Project (DP) 7327, will
improve the performance of the primary treatment process by upgrading equipment
and piping; and
WHEREAS, DP 7327 is a complex, critical Project for the District; and
WHEREAS, the project includes the replacement of the mechanical climber screens,
installing new equipment for raw wastewater screening conveyance and disposal,
electrical, mechanical, and controls, all of which needs to be coordinated in a 24-hour
operating facility; and
WHEREAS, the General Contractor, subcontractors, and suppliers will have to
coordinate a substantial amount of the work to ensure the timely and safe completion
of the project; and
WHEREAS, the nature of the proposed work increases the likelihood of prime
contractor and subcontractor claims; and
WHEREAS, the Board of Directors held a noticed public hearing on October 6, 2016,
to establish that the Headworks Screening Upgrade, DP 7327, is sufficiently complex
to require an increased retention amount of 10%.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Central
Contra Costa Sanitary District as follows:
1. That, after holding a noticed public hearing, the Board of Directors finds that in
accordance with Public Contract Code Section 7201, the Headworks
Screening Upgrade, DP 7327, is a complex project. Furthermore, that this
project's complexity necessitates a retention amount greater than 5%.
Central Contra Costa Sanitary District
Resolution No. 2016-0///
Page 2 of 2
2. That the Board of Directors finds that the retention amount for the Headworks
Screening Upgrade, DP 7327, shall be 10%.
PASSED AND ADOPTED this 6th day of October, 2016, by the Board of Directors of
the central Contra Costa Sanitary District by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Tad J. P i lecki
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra costa, State of California
COUNTERSIGNED:
Elaine R. Boehme, CMC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District