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Board hears primer on contracting options for Measure M bond work
Summary
Staff walked trustees through procurement thresholds, hard‑bid, CM multi‑prime, design‑build, progressive design‑build, and lease‑leaseback approaches, noting legal thresholds (Ed. Code and Public Contract Code), pros and cons, and next steps for matching methods to specific projects.
Trustees heard an extended presentation on project delivery methods and public contracting as the district prepares to implement Measure M bond projects.
The presenter reviewed California procurement thresholds under the Public Contract Code, noting an informal procurement cap (presented in the meeting as approximately $114,800) and a separate lower threshold for public projects (about $15,000 for public works versus maintenance). The presentation then described the major delivery options:
• Design–bid–build (hard bid): traditional low‑bid model; pros include clear competitive pricing for initial cost; cons include limited contractor collaboration and higher risk of change orders and schedule uncertainty.
• CM multi‑prime: the district acts as its own general contractor and awards separate trade contracts; pros include potential cost savings and transparency on trade costs; cons include increased owner responsibility, coordination burden and administrative costs.
• Design–build (Ed. Code 17250.10): allowed for projects over the specified threshold (presenter noted a $1 million minimum); district can use best‑value criteria rather than lowest bid; progressive design–build is commonly used for larger projects (statutorily referenced at $5 million in the presentation) and allows price lock later in design.
• Lease–leaseback (Ed. Code 17406): early contractor involvement with a lease mechanism to allow a contractor to build on district property and the district to acquire the improvement later; benefits include early contractor input and constructibility review, but presenters said lease–leaseback has been subject to legal challenges in other jurisdictions and may carry higher initial costs.
Board members asked how staff would match delivery methods to specific projects; staff said a July panel of architect and construction‑management candidates will help align project lists to appropriate delivery methods and that staff would return with recommendations as specific projects come forward. Several trustees expressed skepticism about lease–leaseback and emphasized the need for clear project‑level analysis and legal counsel support before proceeding with a method on a given project.
