Agenda Item
Meeting Date: 3/3/2020 - 7:00 PM
Category: Consent Agenda A - Routine Business
Type: Action
Subject: (Item A-6) Approval of the Board of Education of Amendment #1 to Facilities Lease between Lodi Unified School District (“District”) and A. M. Stephens Construction Co., Inc. (“AMS”) for Construction of the Lodi High School Modular Project Increment 1 Site Work (“Project”), Located at 3 S. Pacific Ave. Lodi, CA 95242 (“Site”) (Mr. Kahn)
Enclosure: Amendment 1 to the Facilities Lease
File Attachment:
First Amendment to Facilities Lease - LHS Inc. 1_3521350_1(DMS).ada.pdf
3- Facilities Lease Ex. C (GMP) - Lodi HS Incr 1_3384071_2(DMS).ada.pdf
AM Stephens GMP Documents LHS Inc. 1. ada.pdf
Summary: California Education Code section 17406 (“Section 17406”), as amended effective January 1, 2017, permits the governing board of a school district to lease property to a developer, who constructs tenant improvements on the property and leases back the completed improvements to the school district. In accordance with the Section 17406, the Board previously approved the Facilities Lease and Site Lease for the construction of the Project (“Agreements”) with AMS as the developer on April 2, 2019, via the adoption of Resolution 2019-36 “Authorization to Award the Lodi High School Modular Project Increment 1 Site Work (Project No. 0906-8206)”.
Following the execution of the Agreements, the District and AMS negotiated the Guaranteed Maximum Price for Increment 1 of the Project (“GMP”) and Construction Schedule.

As noted above, District staff and consultants negotiated the terms of the proposed GMP and Construction Schedule with AMS. Amendment 1 to the Facilities Lease amends the Facilities Lease to replace Exhibit C (GMP) and Exhibit F (Project Schedule) from the Facilities Lease previously approved, with amended exhibits incorporating the GMP and Construction Schedule, respectively.
The Board is now presented with Amendment 1 to the Facilities Lease which incorporates these terms. All other terms and conditions of the Facilities Lease remain in full force and effect.
Construction on Increment 1 of the Project can proceed once Amendment 1 to the Facilities Lease for the Project is approved and AMS provides its bonds and other paperwork. The Facilities Lease may further amend the GMP and Construction Schedule after DSA approves the submitted plans and specifications.

GMP of $14,530,126
Funding: This project is funded by Measure U.
Recommendation: Approve Amendment #1 to the Facilities Lease for construction of Increment 1 of the Project.
Recommended By:
Signed By:
Leonard Kahn - Chief Business Officer
Signed By:
Cathy Washer - Superintendent