Agenda Item
Meeting Date: 7/14/2020 - 7:00 PM
Category: Other Action Items
Type: Info/Action
Subject: (Item OAI-5) Approval of the Board of Education of Amendment #1 to Facilities Lease between Lodi Unified School District (“District”) and Meehleis Modular Building Inc. (“MMB”) for construction of the Lodi High School Classroom Modular Project Increment 2 Installation of Modular and/or Prefabricated Classroom Building (“Project”), located at 3 S. Pacific Ave., Lodi, CA 95240 (“Site”) (Mr. Kahn)
:
Enclosure: First Amendment to Facilities Lease
Facilities Lease - Exhibit C
Meehleis Modular Buildings Inc. GMP Documents
File Attachment:
CORRECTED_First Amendment to Facilities Lease - LHS Inc. 2_3521350_1(DMS).ada.pdf
First Amendment to Facilities Lease - LHS Inc. 2_3521350_1(DMS).ada.pdf
Meehleis Modular Pricing and Contingency.ada.pdf
Facilities Lease Ex C (GMP) - Lodi HS Incr 2 _3449779_2(DMS).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 MMB as the developer on April 2, 2019, via the adoption of Resolution 2019-37 “Authorization to Award the Lodi High School Modular Project Increment 2 Installation of Modular &/or Prefabricated Classroom Building (Project No. 0906-8206)”.

Following the execution of the Agreements, the District and MMB negotiated the Guaranteed Maximum Price for Increment 2 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 MMB. 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 2 of the Project can proceed once Amendment 1 to the Facilities Lease for the Project is approved and MMB 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 $42,972,365 (corrected: $47,972,365)
Funding: This project is funded by Measure U.
Recommendation: Approve Amendment #1 to the Facilities Lease for construction of Increment 2 of the Project.
Approvals:
Recommended By:
Signed By:
Vickie Brum - Planning Analyst II
Signed By:
Leonard Kahn - Chief Business Officer
Signed By:
Cathy Washer - Superintendent