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Trustees approve lease‑leaseback delivery method for Jefferson UTK Early Education facility
Summary
After consultant presentations and discussion of OPSC funding timing, the Cloverdale Unified board approved a lease‑leaseback delivery method for the Jefferson UTK Early Education project to limit upfront district risk while pursuing state funding.
The Cloverdale Unified School District board voted to approve a lease‑leaseback delivery method for the Jefferson UTK Early Education facility after hearing presentations from Van Pelt and a construction team about funding timing and risk mitigation.
Consultants and the project manager explained that the project already has Division of the State Architect (DSA) approvals for the modular buildings and that the Office of Public School Construction (OPSC) will not release funds until the district is under contract for roughly 90% of the project. The consultants said a lease‑leaseback approach allows the district to bring a contractor on for a relatively small preconstruction fee and make the guaranteed maximum price (GMP) contingent on receipt of OPSC funding, reducing the district’s near‑term cash exposure.
"The lease‑leaseback on this project works out really well because it allows us to bring on that contractor low at risk," the project manager said, explaining that preconstruction fees can be small and that contract language can make the agreement contingent on funding. Board members asked about timeline impacts (staff estimated the district is about two months behind original plans) and the consequences if the project is not completed within state deadlines; consultants said the state’s timeline is three years measured from the funding submission date and that contractors are commonly engaged on similar school projects.
After questions about cost exposure, who would perform site work, and contingency language tying contracts to funding, Trustee Lopez White moved to approve the lease‑leaseback delivery method; Trustee Garrison seconded and the motion passed by voice vote.
The board instructed staff to return with contract language that makes any work contingent on funding, to present the selected contractor’s GMP when available, and to continue coordination with measure consultants and the OPSC.
Vote and action: Motion to approve lease‑leaseback delivery method for the Jefferson UTK Early Education facility was moved by Trustee Lopez White and seconded by Trustee Garrison; motion carried by voice vote.
