Governing Board A. CALL TO ORDER (5:30 p.m. ... - Chaffey College
Governing Board A. CALL TO ORDER (5:30 p.m. ... - Chaffey College
Governing Board A. CALL TO ORDER (5:30 p.m. ... - Chaffey College
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AGENDA ITEM<br />
<strong>Chaffey</strong> Community <strong>College</strong> District<br />
GOVERNING BOARD<br />
<strong>TO</strong>PIC APPROVAL: PARTIAL RELEASE OF RETENTION,<br />
CHAFFEY COLLEGE CHINO MAIN INSTRUCTIONAL BUILDING<br />
Communication No. IV.F.3.b<br />
SUPPORTS BOARD ENDS STATEMENT/POLICY<br />
Supports and complies with policies 1.4.2 Conflict of Interest/Principles, 6.2.6 Purchasing,<br />
6.2.7 Contracts, 6.3.4 Capital Construction, and 8.3.1 <strong>College</strong> Facilities.<br />
PROPOSAL<br />
June 26, 2008<br />
<strong>Board</strong> MeetingDate<br />
To authorize the district to issue and execute all necessary documents for the <strong>Chaffey</strong> <strong>College</strong> Chino Main<br />
Instructional Building Project to reduce the amount of retention withheld from 10 percent to 5 percent, in<br />
accordance with the terms and conditions of Contract No. 06P98 with Bernards Bros., Inc. (“Bernards”), of San<br />
Fernando, California, for the reasons set forth below.<br />
BACKGROUND<br />
On July 11, 2006, the <strong>Governing</strong> <strong>Board</strong> authorized the letting of Contract 06P98 to Bernards for the<br />
construction of the <strong>Chaffey</strong> <strong>College</strong> Chino Main Instructional Building Project.<br />
The architect, MDA Johnson Favaro, LLP, duly inspected the work and determined that the construction of the<br />
new facility and all other major building systems were fully operational, commissioned, and functioning per the<br />
contract requirements on April 22, 2008, the date of substantial completion.<br />
Contract 06P98 requires the district to withhold 10 percent retention. Per the contract general conditions, with<br />
the <strong>Governing</strong> <strong>Board</strong>’s approval, the district may reduce retention from 10 percent to 5 percent, provided that<br />
substantial completion with an approved punchlist has been achieved. California Public Contract Code<br />
Section 9203 provides that the district’s <strong>Governing</strong> <strong>Board</strong> has the discretion to approve such a reduction in the<br />
amount of retention withheld if it finds that the project is more than 50 percent complete and satisfactory<br />
progress is being made. Section 9203 requires the district to withhold all remaining retention until final<br />
completion and acceptance of the project by the <strong>Governing</strong> <strong>Board</strong>.<br />
The district recommends that the <strong>Governing</strong> <strong>Board</strong> authorize the district to execute all necessary documents<br />
with Bernards to reduce the percent of retention withheld from 10 percent to 5 percent for the following<br />
reasons: (1) the project is over 50 percent complete and satisfactory progress has been and is being made<br />
towards final completion; (2) within the 5 percent in retention funds proposed to remain withheld, the district will<br />
withhold 125 percent of the value of any unprocessed or unpaid change order amounts, any outstanding<br />
punchlist work, and disputed items, if any, which will ensure sufficient funds remain to complete the project and<br />
a notice of completion filed; and (3) final completion and acceptance of the project, including all punchlist work<br />
and outstanding items, is subject to the <strong>Governing</strong> <strong>Board</strong>’s approval.<br />
BUDGET IMPLICATIONS<br />
Funding Source – Measure L bond funds, Project 8.4. Total project budget is $37,100,818.<br />
Status of Funds – Retention funds are available and set aside in an escrow account.<br />
Future Implications – N/A.<br />
21 6/26/08 Regular <strong>Board</strong> Meeting