Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Doug Koenig, Interim Director of Project Development Unit
Subject: Delegation of the Hearing Functions Provided by Public Contract Code Sections 4100 et. seq. (the “Subletting and Subcontracting Fair Practices Act”) to the County Manager or his/her Designee
RECOMMENDATION:
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Adopt a resolution delegating the hearing functions provided by California Public Contract Code Division 2, Part 1, Chapter 4 (Sections 4100 et. seq.) to the County Manager or his/her designee.
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BACKGROUND:
Contractors who have entered into public works contracts with the County are subject to Division 2, Part 1, Chapter 4 of the California Public Contract Code (Sections 4100-4114), which is known as the Subletting and Subcontracting Fair Practices Act (the “Act”). The Legislature intended that the Act would prevent bid shopping and bid peddling, and part of the Act requires identification in a general contractor’s bid of subcontractors performing significant amounts of work under a public work contract and limits substitution of those subcontractors following an award of a public works contract.
When a general contractor seeks to substitute a subcontractor for a subcontractor originally identified in the general contractor’s bid and the original subcontractor objects to such substitution, Section 4107 provides that the Board, as the awarding authority, must holding a public hearing and make findings regarding the substitution.
Section 4110, in turn, provides that where a general contractor violates any provisions of the Act regarding subcontracting, the Board may cancel the contract or assess a monetary penalty up to 10% of the amount of the subcontract involved. In the course of either cancelling the contract or imposing a penalty under Section 4110, however, the Board must provide the contractor with a public hearing.
Section 4114 allows the Board to delegate its hearing functions under Sections 4107 and 4110 to a designated officer of its choice.
DISCUSSION:
Delegation of the Board’s hearing functions as permitted by Section 4114 would allow resolution of subcontracting disputes in an expeditious manner, which will help to ensure that projects managed by the Project Development Unit and Department of Public Works projects remain on schedule. In the absence of such a delegation, resolving issues related to compliance with the Act could require a public hearing before the Board at either a regular or specially-called meeting, which could delay delivery of construction projects. With the delegation, the authorized hearing officer will conduct the hearing, make findings and report back to your Board with a written recommendation for action. Your Board may adopt the hearing officer’s recommendations without further notice or hearing as its final action, or, alternatively, may set the matter for a new, full re-hearing before your Board.
County Counsel has reviewed and approved the resolution as to form.
Approval of this resolution contributes to the Shared Vision 2025 outcome of a Collaborative Community by ensuring efficient use of County resources and timely provision of exceptional service to the community.
FISCAL IMPACT:
There is no impact to the General Fund.