New Lease-Leaseback Opportunity: Pre-RFP Authorization for Career Technical Building

This authorization specifically targets the construction of a new Career Technical Education (CTE) building at Redondo Union High School.

What is Lease-Leaseback? The resolution authorizes the use of Lease-Leaseback (LLB), a construction delivery method commonly utilized by California school districts to modernize or construct new educational facilities.

Under this structure, the District leases its property to a developer or contractor for a nominal fee. The contractor then constructs the facility on that site. Once the project is complete, the District leases the improved property back from the developer, typically under a financing arrangement, until the title vests back in the District.

According to District staff, this method allows for greater collaboration between the District, the contractor, and the architect. This teamwork is intended to result in more efficient project delivery while strictly complying with public contracting laws.

The Selection Process: "Best Value" Unlike traditional bidding where a contract is often awarded solely to the lowest bidder, the Lease-Leaseback method allows the District to select a contractor based on "best value".

The resolution establishes that the District will select a contractor through a competitive process using specific, published evaluation and scoring criteria. This ensures the selection is conducted in a fair and impartial manner. The Superintendent or a designee has been authorized to issue the RFP, evaluate proposals, and rank the proposers from highest to lowest value.

Scope of Services The authorization covers two distinct phases of agreement with the potential contractor:

1. Pre-Construction Services: The selected contractor will act as a consultant during the design phase. Their duties will include reviewing plans and specifications to identify inconsistencies, performing constructability reviews, estimating costs, and developing a "Guaranteed Maximum Price" (GMP) for the project.
2. Construction Services: This phase covers the actual labor, materials, and management required to build the facility. The agreement requires "open book accounting," meaning the District will have access to review actual costs and financial transactions related to the project.

Timeline and Next Steps While the December 16 vote authorized the process to find a contractor, it did not award the final contract yet.

• Current Status: The District is authorized to issue the RFP and begin scoring proposals.
• Future Action: The successful contractor will be recommended to the Board at a future meeting. The Board must approve the final contract with the selected firm, which is expected to happen in the "coming months".

Analogy To understand why the District is using Pre-Construction services under this model, imagine hiring a chef to help you write the recipe and shop for ingredients before they start cooking. Instead of handing a finished recipe to a cook who might find ingredients missing or steps unclear, the chef (contractor) works with you (the District) and the recipe creator (the architect) early on. This ensures that once the "cooking" (construction) begins, the price is set, the ingredients are ready, and there are no surprises in the kitchen.