HomeMy WebLinkAbout09.a.1)b) General Manager Reportsq.a.\~b~
Central Contra Costa Sanitary District
August 3, 2010
File 8208.51.5.14
TO: HONORABLE BOARD MEMBERS
VIA: JAMES M. KELLY, GENERAL MANAGE ~ }~ J
ANN E. FARRELL, DIRECTOR OF ENGIN RING /~
TAD J. PILECKI, CAPITAL PROJECTSjDI~ISION MANAGER ~~
FROM: ALEX ROZUL, SENIOR ENGINEER C%"F---
SUBJECT: DELEGATION OF AUTHORITY TO APPROVE
SUBCONTRACTOR REPLACEMENT ON THE CSOD
ADMINISTRATION, CREW, AND WAREHOUSE FACILITY
PROJECT, DP 8208
The prime contractor for the construction of the CSOD Facility, Bobo
Construction, Inc. (BCI), has informed staff that one of their subcontractors,
Whiting/Stillwater Concrete Construction (WCC), can no longer perform their
subcontract work due to financial problems. BCI is hiring key WCC personnel
and will self-perform concrete construction that is on the current schedule critical
path. There is, however, future specialty concrete work that WCC was
scheduled to perform. At this time BCI does not know who will replace WCC as
the concrete work subcontractor. A position paper is attached for Board
consideration on August 5, 2010. The position paper requests authority for the
General Manager to approve a future subcontractor substitution for this specific
instance. Alternatives for Board delegation are listed below. For ease of
administration, staff requests the Board delegate authority to the General
Manager or acting general manager. However, any of the approaches would
work, subject to the availability of Board members.
Subcontractor substitution requests are not unusual on complex projects with
multiple subcontractors. When a subcontractor's work is scheduled on the
critical path, waiting for Board approval to substitute the subcontractor can result
in the prime contractor making a claim for delay against the District.
The Public Contract Code Section 4107 identifies specific situations where
consent far substitution is allowed. Staff believes it would be prudent to delegate
approval of a prime contractor's subcontractor substitution request when the
specific situation matches one described in Section 4107, and when such
authorization is needed between Board meetings to avoid delays. Staff has
N:\PESUP\CONST\District Projects18208\CSOD Whiting replacement r1 jmk.doc
Honorable Board Members
Page 2
August 3, 2010
developed alternatives for approval authority of subcontractor substitution for the
Board consideration:
Delegate to the General Manager the authority to approve a subcontractor
substitution request.
2. Delegate to the Board President and/or the Board President Pro Tem the
authority to approve a subcontractor substitution request.
3. Delegate to the Board's Capital Projects Committee members or the
Board's Finance Committee members the authority to approve a
subcontractor substitution request.
4. The Board could also direct staff to schedule a special Board meeting to
deal with the issue. Special Board meetings require 24 hours' notice to
the public.
In all cases where the subcontractor substitution is approved, a Board Report
would be provided at the next Board meeting detailing the background
information and justification for the special approval.
Staff is seeking Board input on how to proceed with addressing this issue in the
future. Any proposed solution will be brought back to the full Board as a position
paper/resolution for consideration.
AR/cb
N:\PESUP\CONST\District Projects\8208\CSOD Whiting replacement r1 jmk.doc