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HomeMy WebLinkAbout1995-02-21; Municipal Water District; 270; Officer for Substitution of SubcontractorsCARLSBAD M”uICIPAL WATER DISTRICr - -‘%ENDA BILL &+a b AB # 23 0 TITLE: MTG. 02/21 I95 DEPT. CMWD ADOPTION OF BOARD OF DIRECTORS POLICY APPOINTING THE GENERAL MANAGER AS OFFICER FOR SUBSTITUTION OF SUBCONTRACTORS RECOMMENDED ACTION: Board of Directors’ adopt, by minute motion, Board of Directors Policy No. 1 designating the General Manager as the Board of Directors’ “duly appointed officer” for the purposes of approval of substitution of subcontractors on public works contracts. ITEM EXPLANATION: Public Contract Code Section 4107 states that, after award of contract, the “awarding authority or its duly appointed officer may approve the substitution of subcontractors in any public works contract. Section 4107.5 outlines the situations under which subcontractors may be substituted by the prime contractor. Since the Board does not have an appointed official, staff is required to bring requests for substitutions of subcontractors to the Board of Directors for approval. Staff is recommending that the Board of Directors adopt Board of Directors Policy No. 1 appointing the General Manager as its “duly appointed officer” for the purposes of approving substitutions of subcontractors. Giving the General Manager authority to approve these substitutions may prevent delays in capital project construction by shortening the processing time of substitution approvals. FISCAL IMPACT: There is no direct fiscal impact to implementing this action. Adoption of the Board of Directors’ Policy could prevent delays in construction of capital projects; therefore, may result in some cost savings. EXHIBITS: 1. Board of Directors’ Policy No. 1 Subcontractor Substitutions. / c Carlsbad Municipal Water District BOARD OF DIRECTORS STATEMENT Policy No. 1 Date Issued , 1995 Effective Date Cancellation Date General Subject: Public Works Contracts Supersedes No. dated Specific Subject: Subcontractor substitution Copies to: Board of Directors, Executive Manager, General Counsel, Department and Division Heads, Employee Bulletin Boards, Press, File PURPOSE: To designate the General Manager as the Board of Director’s “duly authorized officer” for the purposes of approval of the substitution of subcontractors on public works contracts in the Carlsbad Municipal Water District, POLICY: 1. It is the policy of the Board of Directors that: In all public works contracts that the Carlsbad Municipal Water District entered into pursuant to Chapter 3.28 of the Carlsbad Municipal Code and/or the California Public Contract Code that the substitution of subcontractors, when authorized under the law, be handled in the most expeditious manner at the administrative lever, rather than requiring a Board of Directors’ public hearing. 2. For the purposes of Public Contract Code sections 4107 and 4107.5 relating to substitution of subcontractors on public works contracts, the General Manager is hereby designated as the Board of Directors’ “duly authorized officer” and is empowered to consent to substitutions of subcontractors, give notices, and conduct public hearings, if required, in accordance with and as authorized by those contract code provisions. The General Manager shall consult with the General Counsel prior to consenting to substitution of a subcontractor. 3. The General Manager is not authorized to approve substitutions prohibited by law. The General Manager shall notify the parties in writing of the decision to grant or refuse consent within five (5) days of conducting a public hearing required by Section 4107 and/or 4107.5. The decision shall be final ten (10) days after mailing, unless as affected party files a written appeal with the Secretary within those ten (10) days. The appeal fee shall be set at $250.00; thereafter to be established by resolution. The Appellant shall specify therein the manner in which the General Manager’s decision erred, and serve the appeal on all affected parties. The Secretary shall give notice of a public hearing thereon by mail to the Appellant and all affected parties, for the next Board of Director’ meeting which will result in at least five (5) days notice. The “next meeting” shall be interpreted to mean the next meeting for which the required public noticing of the agenda can be accomplished. 4. Where the amount of the subcontract in controversy exceeds $250,000, the public hearing, if required, shall be conducted by the Board of Directors. d