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Meeting Date:
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12/14/2022 - 4:00 PM
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Category:
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Action Items
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Type:
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Action
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Subject:
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16.6 BUSINESS: Settlement of Matter Between Rancho Pacific Electric, Inc. and Perris Union High School District (funded through Various Facilities Funds in the amount of $675,000, not the General Fund)
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Strategic Plan:
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Enclosure
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File Attachment:
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Summary:
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Following a competitive bid process, on or about March 8, 2019, the District and Rancho Pacific Electric, Inc. (“RPE”) entered into a Construction Services Agreement in the amount of $20,730,000 to perform the electrical scope of work for the multi-prime Liberty High School Project (“Project”). Throughout the Project, the District acknowledges that there were delays caused by the steel contractor, COVID-19 and weather related delays.
Despite the District’s Project team’s best efforts to mitigate these delays, on or about May 2, 2021, RPE submitted its initial claim for damages to the District. RPE submitted multiple updates to its claim with the final claim begin submitted in or about December 2021, in the total amount of $1,528,186.75.
Following multiple informal settlement communications, the parties were unable to resolve RPE’s claim. Thereafter, on or about November 15, 2022, the parties proceed to mediation before James A. Roberts, Esq. wherein the parties were able to successfully reach a settlement in this matter.
The District and RPE, in order to fully and forever settle the Dispute, and any and all matters arising out of and/or related to the Dispute have entered into a Settlement Agreement. This case was discussed by the Board of Trustees pursuant to Government Code Section 54956.9(d)(2) on February 16, 2022, along with settlement parameters and settlement authorization being provided to Candace Reines, Deputy Superintendent of Business Services and the District’s legal counsel, Fagen, Friedman & Fulfrost, LLP.
The Agreement was executed on December 1, 2022 and provides that, the District shall pay to RPE the sum of six hundred seventy five thousand dollars and zero cents ($675,000.00), which includes the cost of actual work performed, in exchange for the full settlement and release of any and all claims related to the Dispute between the parties.
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Funding:
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The cost for this item is included in the 2022-23 operating budget funded through Various Facilities Funds, not the General Fund.
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Recommendation:
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It is recommended that the Board of Trustees ratify the Settlement of Matter between Rancho Pacific, Electric, Inc. and Perris Union High School District.
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Approvals:
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Recommended By:
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Signed By:
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Candace Reines - Deputy Superintendent
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Signed By:
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Grant Bennett - Superintendent
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Vote Results:
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| Original Motion | | Member David Nelissen Moved, Member Edward Garcia, Jr. seconded to approve the Original motion 'It is recommended that the Board of Trustees ratify the Settlement of Matter between Rancho Pacific, Electric, Inc. and Perris Union High School District.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0. | | The motion Carried 5 - 0 | | | | | Edward Garcia, Jr. | Yes | | Elizabeth Vallejo | Yes | | David Nelissen | Yes | | Anthony T. Stafford, Sr. | Yes | | Steve Campos | Yes | |
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