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Special Board Meeting
Pleasanton USD
July 02, 2019 5:30PM
District Office, Board Room 4665 Bernal Avenue, Pleasanton, CA 94566

1. OPENING CEREMONY - 5:30 p.m.
1.1. Call to Order
1.2. Pledge of Allegiance
1.3. Welcome by the Board President: Valerie Arkin Vice President: Steve Maher Members: Joan Laursen, Mark Miller and Jamie Yee
2. APPROVAL OF THE AGENDA
2.1. Approval of the Agenda
3. COMMUNITY - COMMENTS FROM THE AUDIENCE
4. CONSENT AGENDA
4.1. Approval of the New Job Description for District Career Readiness Specialist
Speaker:
David Haglund, Ed.D.
Rationale:

In an effort to provide a clear description of qualifications and responsibilities, the Human Resources Division will periodically update and/or develop job descriptions for district positions.

Attached is the new job description for District Career Readiness Specialist. This new job description reflects the responsibilities, functions and qualifications necessary to provide the services described.

This agenda item aligns with District Organizational Goal 4:

To build our Professional Learning Community through strengthening employee recruitment, development, and retention strategies to ensure continuity of a high-quality workforce, as evidenced by hiring data, professional development participation, and exit surveys.






 
Recommended Motion:

The Administration recommends that the Board of Trustees approve the attached new job description for District Career Readiness Specialist.



Financial Impact:

Per APT Certificated Salary Schedule. Funding from multiple sources. Breakdown is as follows:

  • LCAP (Local Control and Accountability Program) Supplemental Funding 0.3 FTE
  • CTEIG (Career Technical Education Incentive Grant) 0.2 FTE
  • AP Exam Fees 0.5 FTE



Comments:

Prepared by: Heather Pereira, Coordinator of Extended Day and Academic Intervention Programs

Reviewed by:  Odie J. Douglas, Ed.D., Assistant Superintendent, Educational Services

Reviewed by:  David Haglund, Ed.D., Superintendent




Attachments:
A. District Career Readiness Specialist
5. FACILITIES UPDATE BOARD WORKSHOP - 5:40 p.m.
5.1. Report, Discussion, and Possible Action to Approve the Lease-Leaseback Project Delivery
Speaker:
Nick Olsen
Rationale:

What is Lease-Leaseback?

The lease-leaseback project delivery method (LLB) has increased in popularity as an alternative option to deliver successful school construction projects in California. California’s Ed Code section 17406 says that:

  • A District may lease any real property that belongs to the District to a “person, firm, or corporation,” (the Builder) for $1.00 per year;
  • The agreement between the District and the Builder must provide for the construction of a building or improvement on the District’s property;  
  • Districts are authorized under California state law to enter into agreements with partners based on qualification and price to deliver facility improvements. Districts may consider “best value” proposals, similar to procedures associated with procuring other professional services contracts, and avoid the pitfalls associated with ‘low bid’ contracting methods (i.e., bid protests, increased cost of change orders and frequent litigation and associated costs). LLB agreements typically start with a pre-construction services agreement that allows the builder to work with the architect in a team environment during the pre-construction phase to develop an efficient and effective set of drawings for Division of the State Architect (DSA) approval.

What are the Benefits?

The LLB contracting method provides Districts with the same negotiating tools as private sector entities, meaning that the builder(s) may be selected on the basis of qualifications that are important to the District and its stakeholders, including references from other Districts, proven performance, etc. Some benefits of the LLB contracting method include: 

  • A level of flexibility and control not available in the traditional hard bid method, to ensure the public dollar is maximized. 
  • General contractor selection is based on best value to the district – quality, performance, and cost 
  • Project cost and timeline are negotiated, with costs of similar projects compared to ensure competitive pricing 
  • Opportunity to create a design-build partnership for construct-ability review and value engineering saves money and avoids problems during construction 
  • Ability to ensure local bond dollars stay local through participation by local trades 
  • Guaranteed maximum price means no surprises on cost 
  • General contractors have incentive to perform well to be selected for future projects

How is a general contractor selected?

First, a list of pre-approved general contractors is determined to be qualified all facets of LLB services. Thereafter, a competitive Request for Qualifications (RFQ) and/or Proposal (RFP) process is used whereby multiple general contractors from the approved list may be invited to submit their qualifications and/or proposals for the specific project. In the case of an RFQ, firm qualifications are reviewed by a panel and the general contractor is selected based on experience with similar projects, quality results, performance and responsiveness, financial resources and stability, ability and willingness to work with local subcontractors and suppliers, fee, and other factors. Depending on the project, a general contractor may be selected from the approved list early on in the design process to work with the architect and provide pre-construction services. Some projects do not require pre-construction services and the proposal is for construction only.

Why are the District’s payments to the contractors structured as lease payments?

A significant advantage of LLB agreements is that they offer school districts flexible financing. As the developer pays for the construction and recoups the cost through the facilities lease, the school district does not have to pay the construction costs at the start or even during the construction phase – the costs are paid through lease payments that extend over several years. As the school district pays for the construction in relatively small increments through lease payments, the district can spread available funds over a variety of projects at one time. In addition, the use of lease-leaseback agreements makes it possible for the District to proceed despite the current, temporary interruption in payment of State school modernization matching funds.

Is competitive bidding and subcontractor participation similar?

Subcontractor bidding is similar for LLB as with hard bid projects – the work is advertised and competitively bid by the general contractor. The value of the subcontractor work typically represents up to 90% of the total guaranteed maximum price.

What is the difference between LLB and traditional hard bid?

Under LLB, the district is allowed to select a general contractor based on factors in addition to cost. Identification of the general contractor is based on a variety of criteria, the most important of which are quality, performance and cost. The general contractor competitively bids the subcontractor work, and this cost is part of the general contractor’s proposal. Through negotiation between the district and the general contractor, a guaranteed maximum price for the project is established and recommended to the Board for approval. This process provides additional flexibility and control for the district in ensuring quality projects at a competitive price. In the traditional hard bid environment, the district is required to award the project to the lowest responsive, responsible bidder, without regard to quality and performance.

Does the district have the legal authority to use LLB?

Yes. Lease-leaseback is authorized by Education Code section 17406.

What role does the Board of Education have in LLB?

The Board is required to approve a resolution adopting best value procedures and guidelines. The Board is also required to approve the LLB  construction agreements for each project.

Resource: Click here for resource

The LLB Presentation to the Board is included in Attachment A.

The Resolution adopting the Best Value Procedure (Resolution 2019-2020.01) is included in Attachment B.

The LLB Procurement for School Districts is included in Attachment C.

The Project Delivery Comparison for LLB and Traditional is included in Attachment D.

Organizational Goal for 2018-2019: 4. To build our Professional Learning Community through strengthening employee recruitment, development, and retention strategies to ensure continuity of a high-quality workforce, as evidenced by hiring data, professional development participation, and exit surveys.


 
Recommended Motion:
The Administration recommends the Approval of Lease-Leaseback Project Delivery.
Quick Summary / Abstract:



Financial Impact:
This Board Item has no Financial Impact to the District.
Comments:
Prepared by: Nick Olsen, Director of Facilities and Construction
Reviewed by: David Haglund, Ed.D., Superintendent
Attachments:
A. LLB Board Presentation-070219
B. Best Value Procedure Board Resolution 2019-2020.01
C. LLB Procurement for School Districts 2019
D. Project Delivery Comparison - LLB & Traditional
6. ADJOURNMENT
Disability Information:
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Superintendent's Office at (925) 426-4333. Notification by Friday noon preceding the meeting will enable the District to make reasonable arrangements to ensure accessibility to this meeting.

Published: June 28, 2019, 7:31 PM

The resubmit was successful.