The California Supreme Court has blown the legal whistle on schemes by school officials to evade competitive bidding on school construction projects.in a very complex – but very important – case that had been percolating for more than a decade, dealing with how local school officials evade competitive bidding on construction projects.
“Lease-leaseback” arrangements have been common for years, providing a way for school systems to build new facilities without borrowing money themselves. Typically the “leaseback” runs for several decades, after which the district becomes the owner. The case has reverberated in other ways. The superintendent who approved the contract, Michael Hanson,after the suit was filed. Critics cited Hanson’s close personal relationship with Harris Construction’s president, Michael Spencer, including the firm’s sponsorship of a gala event to honor Hanson, and the hiring of Harris as a consultant before the contract was awarded.