Agenda Item
Meeting Date: 12/11/2013 - 7:30 PM
Category: Business/Action Item
Type: Action
Subject: 18.18 Award of Lease-Leaseback Agreement to Kenridge Builders, Inc. Construction of New Aquatics Center at Northgate High School
LCAP (Local Control Accountability Plan) Goal:
Strategic Initiative 5.3 Optimal Operations and Infrastructure
Ensure that our facilities and infrastructure support and enhance student learning and safety.
Policy:
Enclosure:
File Attachment:
1-1643 RFQ RFP LLB-Site Lease-NHS Aquatic Center .pdf
Kenridge Insurance.pdf
2-1643 RFQ RFP LLB-Facilities Lease with exhibits NHS Aquatic Center.pdf
Summary: On September 25, 2013 the Board approved the Preliminary Services Agreement (PSA) to Kenridge Builders, Inc. for the management, coordination, constructability review, value engineering and recommendations related to the Aquatic Center at Northgate High School in the amount of $0. Under this agreement Kenridge was to work in conjunction with staff and the architect, Arch Pac, in preparing value engineering items as well as constructability review items. Approval from the Division of the State Architect was received on September 11, 2013.

As a result of the PSA process along with the approval of the plans and specifications, staff has completed negotiations as well as value-engineering with Kenridge Builders, Inc. Staff is recommending that the District enter into a lease-leaseback agreement with Kenridge Builders, Inc. for a Guaranteed Maximum Price of $6,538,528.00 for the completion of all specified work per approved plans and specifications for the Aquatic Center at Northgate High School.

The lease- leaseback project delivery method is authorized by California Education Code 17406, and authorizes the governing board, without advertising for bids, to enter into a lease with a builder for the purpose of construction, including remodeling and permanent improvements, upon property. Under a lease- leaseback, the District leases property under a "site lease" to a builder for $1. That builder constructs the facility, completes the renovation and then leases the facility back to the District under a "facilities lease." The District makes "tenant improvement payments" during construction and "lease payments" after construction. Titles to facility vests in the District as lease payments are made. The District has the option to make an early payment to the builder to buy out the facilities lease. In addition, the District determines all plans and specifications and uses its own.

The scope of work includes, but is not limited to: provide all tools, materials, labor and equipment necessary to complete the construction of the New Aquatics Center at Northgate High School. Work includes, but is not limited to; demolition, grading, concrete, new swimming pool, new sports medicine classroom building, new restroom building, underground utilities and other miscellaneous items as it relates to the drawings and specifications.
Funding: $6,037,500.00 2010 Measure C
$501,028.00 Northgate Community Pride Foundation
Fiscal Impact $6,037,500.00 2010 Measure C
$501,028.00 Northgate Community Pride Foundation
Recommendation: Award Lease/Leaseback agreement to Kenridge Builders, Inc. as presented.
Approvals:
Recommended By:
Signed By:
Mitchell Stark - Program Manager
Signed By:
Tim Cody - Program Manager
Signed By:
Dr. Nellie Meyer - Superintendent
Vote Results:

New Motion
Member Linda Mayo Moved, Member Lynne Dennler seconded to approve the New motion 'Approve Lease/Leaseback agreement with Kenridge Builders, Inc., for construction of the new Aquatics Center at Northgate High School.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0.
The motion Carried 5 - 0
   
Linda Mayo     Yes
Lynne Dennler     Yes
Cheryl Hansen     Yes
Brian Lawrence     Yes
Barbara Oaks     Yes