HomeMy WebLinkAboutSB 802 (Oppose)Ron Everett
Mayor
Carol Herrera
Mayor Pro Tem
Wen P. Chang
Council Member
Jack Tanaka
Council Member
Steve Tye
Council Member
Recycled paper
OUPLU rioer 8, 2009
21825 Copley Drive • Diamond Bar, CA 91765-4178
(909) 839-7000 - Fax (909) 861-3117
www.CityofDiamondBar.com
The Honorable Senator Mark Leno
State Capitol, Room 4061
Sacramento, CA 95814
Dear Senator Leno:
The City Council of Diamond Bar respectfully opposes SB 802, which
removes the authority of public agencies to determine the appropriate
amount of retention in public works contracts. SB 802 requires that
contract retention proceeds do not exceed five percent of all payments
between the original contractor and all subcontractors.
Flexible retention rates are used by public agencies to ensure the
public's money is spent wisely and that contractors complete projects
in a timely and budget -conscious manner. Eliminating the ability to set
flexible rates removes safeguards designed to protect the interests of
the public.
Attempts to pass similar measures have failed repeatedly over the
years, either vetoed by the Governor or held in the legislature. This
pattern shows that the current ten percent retention standard is
appropriate, and a reduction continues to be unnecessary.
For these reasons, the City of Diamond Bar is opposed to SB 802.
Should you have questions, please contact me at 909-839-7010.
Sincerely,
Ron Everett
Mayor, City of Diamond Bar
CC: League of CA Cities
Joe A. Gonsalves & Son