Los Alamitos Unified School District reported on June 18 that judge Randell L. Wilkinson issued a ruling vindicating them in the use of a significant planning tool, Lease-Leaseback, to ensure that they may enter into construction contracts where the contractor guarantees a maximum price and ensures that projects are delivered “on time” and “on budget.”
As a fiduciary of public funds, the district and its staff have always guardedly and carefully studied the best and most efficient way to ensure that public money is spent to bring the best possible facilities to the district’s students. Using the Lease-Leaseback method has allowed the district to complete multiple projects in a short time, which also garnered the district millions of dollars in available State Matching Funds, the district said in a release.
Over the past five years, the district has utilized the Lease-Leaseback method of contracting, a design-build methodology that prevents unnecessary litigation and provides a guaranteed maximum price to complete construction projects at McGaugh Elementary School, McAuliffe Middle School, Los Alamitos Elementary School, Hopkinson Elementary School, Roosmoor Elementary School, Lee Elementary School and Los Alamitos High School Gymnasium.
The district carefully designed each of these projects and worked collaboratively with the design team by bringing in the contractor well ahead of the construction project to ensure that the contractor has the opportunity to visualize, model and comment on the design. “We are truly proud of each and every school that has been renovated and the athletic facilities that have been built using the Lease-Leaseback contracting method,” said Deputy Superintendent, Patricia Meyer. “This is a different method of construction than the traditional bid build methodology where an architect designs a building or renovation and an advertisement for bids is utilized to bring a contractor to the district. In each of the projects, the Lease-Leaseback method has allowed us to incorporate features and amenities that would not have been affordable through a traditional bid methodology that often includes costly change-orders after the bid has been awarded.”
While the District is highly disappointed that it spent educational dollars to defend this case, the Honorable Randell L. Wilkinson vindicated the district’s appropriate use of the long-standing legal process of Lease-Leaseback and handed down the following ruling:
“The Court …finds that Plaintiff Howard [Contracting] did not submit any evidence to support its assertion that there is an appearance of a conflict of interest here… It also did not dispute Plaintiff District’s evidence that Byrom-Davey has not made any campaign contributions or given gifts, directly or indirectly, to any of the District’s board members who approved the subject Resolution… Defendant Howard has not demonstrated how Plaintiff District’s agreement with Byrom-Davey is unconstitutional, unconscionable, unlawful, a theft of public funds or a travesty of justice. It did not cite to a single constitutional provision that is allegedly violated by Plaintiff District…. Lastly, Defendant Howard did not provide any evidence of theft of public funds.”
Superintendent Dr. Sherry Kropp stated, “Speaking on behalf of the Board of Education, we have strived to bring the finest places for learning to our kids and worked collaboratively with each school to bring cutting edge classroom facilities to enhance the learning environment. We take our obligation and commitment to taxpayers to provide the best work at the best price seriously and thank them for authorizing this work when they passed Measure K in 2008.”