HomeMy WebLinkAboutMINUTES - 06051990 - 1.73 1_073
TO: BOARD OF SUPERVISORS SEL Contra
c
FROM: Costa
Phil Batchelor, County Administrator
County
DATE: May 29, 1990 ' Ceto) �`'
SUBJECT: LEGISLATION: AB 4165 (Eastin & Hannigan)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Indicate that the Board of Supervisors continues to OPPOSE 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 45 days, limit the amounts that could be withheld and
require disputed matters to be submitted to binding arbitration
if the dispute is not otherwise settled.
BACKGROUND:
On May 1, 1990 the Board of Supervisors voted to oppose AB 4165
as introduced. On May 14 , 1990 the bill was amended.
Existing law generally regulates contract payments on local
public works projects.
Assemblywoman Eastin and Assemblyman Hannigan have introduced AB
4165 which, as amended May 14, 1990, 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 45 days.
CONTINUED ON ATTACHMENTYeS YESSIGNATURE: % zlo'zz
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
_'V_APPROVE OTHER
SIGNATURE(S): &a.J e Z/6W
ACTION OF BOARD ON Ti i n 51 19Q o APPROVED AS RECOMMENDED 4- 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
PHIL BAT ELOR,CLERK OF fHE BOARD OF
Please see Page 2 . SUPERVISORS AND COUNTY ADMINISTRATOR
BY �f�16�'C �iL C/l DEPUTY
M382 (10/88)
2. Require the local agency to withhold no more than 1250 of
the disputed amount during the dispute.
3 . If the contractor disputes the local agency' s response,
allows the contractor to respond within 15 days, noting the
contractor' s reasons for disputing the local agency' s
response, and requesting the initiation of arbitration
within 45 days.
4. Prior to commencing arbitration, requires the local agency
to schedule an informal conference to meet and confer for
settlement of the issues in dispute. At the option of
either party the matters remaining in dispute can be
submitted to a mediation and settlement conference.
5. Require that the disputed matter be submitted to binding
arbitration if not settled through the above process.
6. Allows the arbitrator or arbitration panel to identify the
party. responsible for the costs of arbitration based on the
merits of the claim.
We have no particular problem with responding to written claims
and disputes within 45 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 continuing opposition to AB 4165 .
AB 4165 passed the Assembly Committee on Governmental Efficiency
and Consumer Protection on April 18, 1990 by a vote of 10: 0. The
bill is now in the Assembly Ways and Means Committee.
cc: Assemblyman Hannigan
Assemblywoman Eastin
County Administrator
Director of General Services
County Counsel
Larry Naake, Executive Director, CSAC
Les Spahnn, SRJ. Jackson, Barish & Associates