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HomeMy WebLinkAboutMINUTES - 08212012 - C.36RECOMMENDATION(S): 1. FIND that satisfactory progress has been made on the trade contract with Guarantee Glass Inc. for Trade Bid Package 3B, consisting of curtain wall, for the above project. 2. AUTHORIZE the reduction of contract retention to 2.5% of the trade contract amount, as provided in Public Contract Code Section 9203. FISCAL IMPACT: There is no fiscal impact from the reduction of contract retention, since the reduced retention is adequate to cover the remaining trade contract work. Funding for the West County Health Center project in the amount of $12 million is from a federal Health Resources and Services Administration (“HRSA”) grant, provided under the American Recovery and Reinvestment Act of 2009. The remaining balance of $33 million is being provided through bond financing and dedicated revenue within the Hospital Enterprise Fund. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/21/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Julie Bueren, (925) 313-2201 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 21, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: Carrie Del Bonta, Deputy cc: C. 36 To:Board of Supervisors From:Julia R. Bueren, Public Works Director Date:August 21, 2012 Contra Costa County Subject:AUTHORIZE reduction of contract retention for trade contract with Guarantee Glass Inc. for Trade Bid Package 3B for West Co Health Center Project BACKGROUND: On July 26, 2011, the Board awarded a $779,179 construction trade contract to Guarantee Glass Inc. for Trade Bid Package 3B, consisting of curtain wall for the West County Health Center project. Since that time, most of the contract work has been properly completed according to the contract requirements and schedule. At present, approximately 5% of the contract work remains to be completed. Recently, Guarantee Glass pulled off the project site and evidently has filed bankruptcy. In order to complete the small amount of remaining work for the scheduled September 4, 2012 grand opening celebration, it is essential that the County make payment as soon as possible to unpaid suppliers and subcontractors of Guarantee Glass that otherwise may not be willing to continue supplying supplies and work to the project. The proposed reduction of contract retention from 10% to 2.5% would facilitate such payment by making additional contract funds available for payment. Public Contract Code Section 9203 authorizes the reduction of contract retention at any time after 50% of the contract work has been completed, if the Board finds that satisfactory progress is being made. The Public Works Director recommends that the Board find satisfactory progress has been made on the trade contract with Guarantee Glass and that the Board authorize reduction of the contract retention to 2.5% to facilitate payment to unpaid suppliers and subcontractors of Guarantee Glass. CONSEQUENCE OF NEGATIVE ACTION: If the contract retention is not reduced as recommended, the County may not have enough contract funds available for prompt payment to suppliers and subcontractors necessary for completion of the trade contract work in time for the September 4, 2012 grand opening celebration. CHILDREN'S IMPACT STATEMENT: Not Applicable.