Los Alamitos Unified etc. v. Howard ContractingAnnotate this Case
Los Alamitos Unified School District (the District) filed an action to validate its lease-leaseback agreement with a contractor performing improvements on the track and athletic field of the District's high school. Another contractor, Howard Contracting, Inc. (Howard), filed an answer, claiming the lease-leaseback agreement was unconstitutional, illegal, and invalid because the District did not obtain competitive bids for the project. The primary issue presented by this appeal was legal: did Education Code section 17406 exempt school districts from obtaining competitive bids when entering into what are known as "lease-leaseback" agreements to improve school property? After review, the Court of Appeal concluded the answer was yes. "More than 40 years ago, the California Attorney General concluded the language of the statute is plain, unambiguous, and explicit, and does not impose bid requirements on school districts. We agree, and nothing has occurred in the interim that would change our conclusion."