Resolution 2904-121
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RESOLUTION NO. 2904 -12
A RESOLUTION BY THE BOARD OF DIRECTORS
OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT
ESTABLISHING CRITERIA FOR DETERMINING WHETHER A
PUBLIC WORKS PROJECT IS "SUBSTANTIALLY COMPLEX"
WHEREAS, the South Tahoe Public Utility District's ( "District ") mission is to
furnish its customers with reliable water and wastewater services, and provide those
services safely, efficiently, and cost effectively;
WHEREAS, in order to provide reliable water and wastewater services in such a
manner the District desires to properly undertake high quality public works projects;
WHEREAS, Public Contract Code section 7201 limits the retention proceeds the
District may withhold from the original contractor, the original contractor may withhold
from any subcontractor, or a subcontractor may withhold from a subcontractor for any
public works project to 5 (five) percent of the contract price, except in the case that the
District's Board of Directors finds that the project is "substantially complex," and that the
nature of the project merits a higher retention amount; and
WHEREAS, in furtherance of the above, the Board of Directors believes it
reasonable to adopt criteria to assist in determining when a public works project is
"substantially complex" pursuant to Public Contract Code 7201(b)(4) and therefore
eligible for the withholding of retention proceeds in excess of 5 (five) percent.
NOW THEREFORE, be it resolved by the Board of Directors as follows:
1. That when bidding capital projects, the following criteria will be used by
the District to determine whether a capital project is substantially complex, pursuant to
Public Contract Code 7201(b)(4):
a. If the project's functionality or integrity will not or cannot be tested,
determined, or confirmed until the project is substantially complete;
and /or,
b. If the project involves instrumentation, controls, and /or mechanical
equipment of any type or complexity; and /or,
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c. If two or more different trades or subcontractors are anticipated to be
involved in the construction of the project; and /or,
d. If the project is subject to special regulations or requirements from other
regulatory agencies; and /or
e. If the project is located in an environmentally sensitive area; and /or
f. If the construction schedule is a significant concern because of the
compressed construction season within the Lake Tahoe Basin; and /or
g.
If the project is located in an area with steep terrain or near surface water;
and /or
h. If the project is located in close proximity to residences or commercial
buildings; and /or
i. If the project involves construction of any large underground structures or
facilities.
2. That the District, through its governing body, shall have the discretion to
determine whether a project is "substantially complex" pursuant to Public Contract Code
7201, and therefore eligible for the withholding of retention proceeds in excess of 5
(five) percent of the total contract amount.
3. That the District, through its governing body, shall have the discretion to
determine that the withholding of retention proceeds for a project shall be set in excess
of 5 (five) percent of the total contract amount.
WE, THE UNDERSIGNED, do hereby certify that the above and foregoing
resolution was duly and regularly adopted and passed by the Board of Directors of the
South Tahoe Public Utility District at a regular meeting duly held on the 2nd day of
February, 2012, by the following vote:
AYES: Oefalu, Jones, Sheehan, Schafer
NOES: None
ABSENT:
ATTEST:
Vogelgesang
%
esid
Ci.‘
Eric Schafer, B a rd ent
Kathy Sharp - rk of the B •!