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Board adopts lease-leaseback resolution to broaden procurement options for Measure K projects

Board of Trustees, South Whittier School District · October 15, 2024
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Summary

The South Whittier School District Board unanimously approved Resolution No. 24-25-009 to authorize lease-leaseback (LLB) contracting options for Measure K and other projects after a presentation by F3 Law explaining statutory requirements and trade-offs.

The South Whittier School District Board of Trustees voted unanimously Oct. 15 to adopt Resolution No. 24-25-009 and related administrative regulations to permit lease-leaseback (LLB) project delivery for Measure K and non-bond projects. Trustee Elias Alvarado moved the measure, and Trustee Francisco Santana seconded; all five trustees voted yes.

Legal consultants from F3 Law told the Board that under Education Code section 17400 et seq. a district may lease land to a contractor for a term that permits the contractor to construct buildings on district property. The presenters outlined the LLB process, statutory requirements and procurement considerations and said they could advise the district on whether LLB is an appropriate delivery method for Measure K projects. The presenter stated that "their hourly rate is $310 an hour, per presenter." Superintendent Dr. Gary Gonzales and Associate Superintendent Aubrey Craig said the approach would give the district more options for delivering projects.

Board members asked procedural and timing questions. Trustee Elias Alvarado asked whether the district had ample time to consider the LLB option; Dr. Gonzales and Mr. Craig both indicated the method expands the district's options for project delivery. Board President Sylvia Macias asked about fees and the presenter described the firm's advisory role and rate.

The resolution and accompanying administrative regulation AR 3311.2 now permit staff to proceed with an RFP and other procurement steps consistent with the LLB framework. The Board did not adopt specific construction contracts at this meeting; next steps include staff developing procurement documents and, if appropriate, returning with particular contract awards for Board approval.