Agenda Item
Meeting Date: 11/17/2020 - 7:00 PM
Category: Individual Action on Items Pulled from Consent Agenda A - Routine Business
Type: Action
Subject: (Item A-15) Approval of the Board of Education of Amendment #1 to Facilities Lease between Lodi Unified School District (“District”) and Meehleis Modular Buildings, Inc. (“MMB”) for the construction of the Needham Elementary School Modular Classroom Project Increment 2 (“Project”) located at located at 420 S. Pleasant Avenue. Lodi, CA 95240 (“Project Site”). (Mr. Kahn)
:
Enclosure: First Amendment to Facilities Lease - Needham CR Inc. 2 Base Bid
Exhibit C - Facilities Lease - Neeham CR Inc. 2 Base Bid
First Amendment to Facilities Lease - Needham CR Inc. 2 Base plus Alt 1 Bid
Exhibit C - Facilities Lease - Needham CR Inc. 2 Base plus Alt 1 Bid
First Amendment to Facilities Lease - Needham CR Inc. 2 Base plus Alt 2 Bid
Exhibit C - Facilities Lease - Needham CR Inc. 2 Base plus Alt 2 Bid
File Attachment:
Facilities Lease Ex C (GMP) - Needham CR Inc 2 Base plus Alt 2.ada.pdf
Facilities Lease Ex C(GMP) Needham CR Inc 2 Base.ada.pdf
Facilities Lease Ex C (GMP) - Needham CR Inc 2 Base plus Alt 1.ada.pdf
First Amendment to Facilities Lease - Needham CR Inc 2 Base plus Alt 1.ada.pdf
First Amendmt to Facilities Lease - Needham CR Inc 2 Base.ada.pdf
First Amendmt to Facilities Lease - Needham CR Inc 2 Base plus Alt2.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 Meeleis Modular, Inc. as the developer on January 14, 2020, via the adoption of Resolution 2020-02 “Authorization to Award the Needham Elementary School Modular Project Increment 2 Installation of Modular Classroom Building (Project No. 0917-8217-5)”.

Following the execution of the Agreements, the District and Meehleis Modular Buildings, Inc. 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 Meehleis Modular Buildings, Inc. 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 two (2) Amendment 1 to the Facilities Lease which incorporates a Base Bid term and a Base Bid plus Alternate 2 term. 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 Meehleis Modular Buildings, Inc. 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.

Base Bid GMP of $3,549,838.00
Base Bid Plus Alternate 2 GMP of $5,360,579
Funding: This project is funded by Measure U.
Recommendation: Approve First Amendment to the Facilities Lease - Needham Classroom Increment 2 Base plus Alternate 2 Bid.
Approvals:
Recommended By:
Signed By:
Vickie Brum - Planning Analyst II
Signed By:
Leonard Kahn - Chief Business Officer
Signed By:
Cathy Washer - Superintendent