Board approves lease‑leaseback preconstruction deal for Inspire School after debate over contracting method

The Chico Unified School District Board of Education voted Oct. 16 to approve Modern Building Company as the lease‑leaseback entity to provide preconstruction services for the Inspire School of Arts and Sciences project at Fremont Street.

Julie Kle (facilities) told the board the district ran a competitive RFQ and received four proposals; Modern Building Company ranked highest. Staff said preconstruction services will review constructability, refine the schedule and assemble subcontractor bids, producing a guaranteed project cost before the district returns to the board for construction contracting.

Kle and staff said lease‑leaseback was recommended because the Inspire project relies on modular units and a tight 10‑week on‑site schedule over the summer to move and set buildings and to meet state grant and utility coordination deadlines. Staff also noted the delivery method helps ensure schedule and cost certainty for a program with limited funding.

Board members pressed staff on the choice of lease‑leaseback instead of a hard‑bid approach and on contract language requiring reporting on journeyperson participation. Staff explained the skilled‑and‑trained workforce requirement ties to journey‑person participation reporting (not apprentices per se), and that the contract has contractual remedies if the reporting shows noncompliance; the contract will return to the board for final review before construction.

During the roll call vote a board member said he supported Inspire's project but opposed the chosen contracting method; the motion passed 4–1 with Mr Tennis recorded as the lone dissenting vote.

Staff said next steps include returning the guaranteed project cost and the full contract to the board for final approval and noting that the district will shepherd utility and permitting coordination to keep the tight schedule.