HomeMy WebLinkAboutMINUTES - 05011990 - 1.51 (2) 1®®51
TO: BOARD OF SUPERVISORS Contra
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FROM: Ott:!• ' ~\ COSta
Phil Batchelor, County Administrator ,os
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DATE: .'s q�'du^�`�,Cf
April 25, 1990
SUBJECT:
LEGISLATION: AB 4165 (Eastin & Hannigan)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECONIlUKNDATION
Adopt a position in OPPOSITION TO AB 4165 by Assemblywoman Eastin
and Assemblyman Hannigan which would require local agencies to
respond to all written claims and disputes arising out of local
public works construction contracts within 90 days, limit the
amounts that could be withheld and require disputed matters to be
submitted to binding arbitration if. not settled within 120 days.
BACKGROUND:
Existing law generally regulates contract payments on local
public works projects.
Assemblywoman Eastin and Assemblyman Hannigan have introduced AB
4165 which would do all of the following:
1. Require the local agency to respond to all written claims
and disputes arising out of the contract on any project
within 90 days.
2. Require the local agency to withhold no more than 1250 of
the disputed amount during the dispute.
3 . Require that the disputed matter be submitted to binding
arbitration if not settled within 120 days.
CONTINUED ON ATTACHMENT:YQL_YES SIGNATURE:
ZRECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
12
SIGNATURES:
ACTION OF BOARD ON May 1, 1990 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED
Please See Page 2 . PHIL BATCHELOR,CL �RKOFT����
SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88) BY DEPUTY
We have no particular problem with responding to written claims
and disputes within 90 days nor with the 1250 limitation.
However, the Director of General Services and County Counsel have
recommended that the Board of Supervisors oppose AB 4165 because
of the requirement for binding arbitration. Such a requirement
precludes court review of erroneous or unfair decisions by
arbitrators. ' In County Counsel' s view, contractors are often
awarded more money for claims through arbitration than they would
receive through court action.
It is therefore recommended that the Board of Supervisors
indicate its opposition to AB 4165 .
cc: Assemblyman Hannigan
Assemblywoman Eastin
County Administrator
Director of General Services
County Counsel
Larry Naake, Executive Director, CSAC
Les Spahnn, SRJ. Jackson, Barish & Associates