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School board approves five-year full-service leases with Triad for three LANL complexes

3516913 · May 22, 2025
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Summary

The Los Alamos Public Schools board approved five-year, full-service leases with Triad National Security for the Canyon, Pajarito and Mesa complexes, shifting utilities, custodial and operating costs to the district and making final approval contingent on the New Mexico State Board of Finance.

The Los Alamos Public Schools board voted to approve five-year, full-service leases with Triad National Security for three Los Alamos National Laboratory (LANL) office complexes, a change that moves utilities, custodial services and other operating costs onto the district and must be approved by the New Mexico State Board of Finance.

Board members approved the agreements after a presentation explaining that the new leases convert the district’s prior cost-sharing arrangement into a single “full service” rent that combines base rent and operating costs. Tyra Thornton, who presented the leases to the board, said the leases reflect Department of Energy preferences and an appraisal-based operating-cost figure of about $8.50 per square foot.

The leases cover the Canyon Complex (an annual full-service rate presented as $935,005.77), the Pajarito Complex (presented as about $1,073,754, which was shown as a base rate near $759,000 plus operating costs of roughly $314,754) and the smaller Mesa Complex (an annual full-service rate presented as $297,054, with a base of $203,537 and operating costs of $93,517). Each lease term is five years with no automatic renewals, the board was told.

“I respectfully request that you approve the leases as stated,” Thornton said during the presentation, noting the district would be responsible for custodial, maintenance and utilities under the full-service structure.

Board members asked how the district would staff custodial coverage at the Triad sites and how annual cost increases were calculated. Staff said custodial staffing will be managed from the district’s existing pool, with a plan to hire modestly above required minimums to reduce scramble risks. The leases establish a maximum annual escalation tied to CPI-U and specifically cap increases on the operating-cost portion at 3 percent per year; the appraisal-based operating-cost assumption used in negotiation was $8.50 per square foot.

A board motion to approve the lease agreements passed; one member abstained citing employment with Triad. The board’s approval is contingent on the New Mexico State Board of Finance granting final approval of the lease resolutions.

The district noted that because the new arrangement places operating responsibility with LOS ALAMOS PUBLIC SCHOOLS, the change may increase the district’s custodial staffing needs and operational workload at these sites. Staff said they ran multiple cost models and factored staffing and custodial salary increases into the projections before recommending approval.

The board also heard that the state review process and the required submission to the state Board of Finance are next steps; the leases will not take effect until the state board completes its review and signs off.