71 AGENDA ITEM BACKGROUND TO: GOVERNING BOARD DATE FROM: PRESIDENT November 7, 2011 SUBJECT: Ratification of Settlement: Arts Education Complex (AEC) Bond Project Litigation—Contractors, Architects and Construction Management REASON FOR BOARD CONSIDERATION ACTION ITEM NUMBER ENCLOSURE(S) Page 1 of 1 C.4 BACKGROUND: The Arts Education Classrooms project consists of five buildings totaling 122,300 square feet located at the intersection of Soquel Drive and Cabrillo College Drive. The final buildings of the complex were completed and occupied in 2009. Some aspects of the construction contracts between the trade contractors and the District were disputed by the parties which resulted in mediation. The mediation process resulted in a settlement of outstanding issues. The settlement was reached in March 2011 and finalized in August, 2011. FISCAL IMPACT: $1,600,000 in net payments to the district RECOMMENDATION: It is recommended that the Governing Board accept the terms and ratify the Art Education Complex settlement as outlined above. Administrator Initiating Item: Joe Nugent Victoria Lewis Academic and Professional Matter If yes, Faculty Senate Agreement Senate President Signature Yes No Yes No Final Disposition Approved