The lease-leaseback (LLB) construction delivery method was presented to the board as part of the Report/Discussion Agenda on June 13, 2017.
The lease-leaseback construction delivery method was first approved by the board on June 8, 2010 for the construction of the Elings Center for Engineering Education at Dos Pueblos High School. Following this project, at the request of the Board, the district obtained a validation action judgement for the LLB HVAC Replacement project at Dos Pueblos High School. The validation judgement is when a district asks the Superior Court for a Validation, which is basically a preemptive suit by which the district askes the court to validate the delivery method. During the validation process there were no objections from any contractors or subcontractors concerning the action.
Following the successful delivery of the Engineering building construction project, the district transitioned from using the traditional design-bid-build method to the LLB method for a majority of construction projects. The plus side of the LLB method is that projects are:
- Completed on budget with a Guaranteed Maximum Price (GMP)
- Creation of an architect-contractor-owner partnership
- Savings on cost with value engineering as an integral part of the design process
- District receives best value based on qualifications
- Encourages participation of local sub-contractors
As reported to the Board at the last board meeting, the district stopped using this delivery method after the Harris v. Fresno Unified School District ruling. With recent legislation and current market factors, we will be recommending the use of this delivery method for numerous future projects. Legal counsel has developed the proposed Administrative Regulation using the California School Boards Association recommendations as a guide.