DLR Group’s contract renewal for work at Beverly Hills High School was tabled during the board’s meeting Tuesday. (photo by Cameron Kiszla)
A budget shortfall in its construction program has led the Beverly Hills Unified School District Board of Education to rethink how it wants to move forward in implementing the master plan the board approved in 2012.
Following presentations by the district’s bond manager Team Concept Development Services Inc. in which the company expressed concern about the program’s budget, the board voted to table a contract renewal with DLR Group, the architectural and engineering firm modernizing Beverly Hills High School’s south site.
Given the budget shortfall identified by TCDS, the district should “take a break” and “see what’s going to happen,” President Rachelle Marcus said. Superintendent of Schools Michael Bregy said the district typically approves such items “expeditiously,” but he wasn’t aware of any deadline for board action.
“I would like to make sure that we’re finishing up what we’ve started … but I personally cannot vote for this,” Marcus said.
During a board study session in October and a Facilities and Construction Committee meeting last week, TCDS representatives cited several factors that have led to the district’s need for an additional $130 million to finish its remaining projects.
Much has changed since 2017, when the board contracted with TCDS. The company’s program manager, Pam Johnson, said project alterations, market prices, subway construction and unforeseen dilemmas, such as the fire service line rupture at the former Venoco facility at BHHS that flooded the area, have impacted the program.
Perhaps most notably, construction costs have increased approximately 22% since 2018, and they are expected to increase another 20% over the next two years, Johnson said.
“We’re just now in a market that none of us has seen in our careers,” she added.
As of October, the district had several projects ongoing. Contractors are modernizing El Rodeo Elementary School. Two buildings on the BHHS campus – B3 and B4 – are also being modernized. Some other projects, such as proposed work to the BHHS’ south site, have been submitted to the Division of State Architect for review.
According to the DLR Group contract proposal, the updated scope of work at BHHS includes the design of the baseball/softball fields, the track/football field and the demolition of the Konheim Gym, as well as the design of the grand lawn and perimeter fencing on the campus’ eastside.
“When I look at the scope of this work, it seems pretty extensive,” Vice President Mary Wells said. “And given the last update that we had on the budget and the master plan – we spoke about how now would be a good time to take a pause to determine what is the best way to move forward with the construction program. I wouldn’t want to impede the progress of the projects that we already have in place.”
She suggested that the board discuss the item again at a future meeting. In the interim, she suggested reaching out to the district’s facilities department to discuss “how to move forward on that bigger picture.”
4 Comments
I am really disturbed to learn that Team Concept Development Services, Inc. (TCDS) has not been licensed as a contractor the past 20 years but was appointed by BHUSD’s Board of Education to manage a $385 million dollar series of public school construction projects in Beverly Hills, California. At 2.5% of the bond revenue, they apparently made about $10M. If they were not licensed and needed to be, it seems the money needs to be returned with interest to the Beverly Hills Unified School District. If TCDS was not the school’s contractor who was?
How could this have happened?
As the article mentions, the Beverly Hills school district’s outside law firm (through Terry Tao) represented both the district and bond manager in the same deal. This conflict seems insurmountable and unwaivable. The commission earned by the bond manager is many millions of dollars.
Why did the district’s outside law firm apparently sit on both sides of the table negotiating a multi million dollar contract for the “bond manager” while representing the district? Did any of the bond holders or taxpayers know about this? Was a conflict waiver signed by BHUSD allowing this dual representation? If so, make it public. It would also be of interest to see TCDS’s legal engagement agreement with the district’s legal counsel.
Perhaps an arms length contract negotiation by the school district with TCDS and Mr. Blake would have resulted in him negotiating fixed costs for labor and materials so the $130 million dollar budget project shortfall wouldn’t be upon us now. Next up is a request by the BHUSD school board for tax payers to make up the shortfall. Taxpayers should object.
Don Blake, the owner of Team Concept Development Services, Inc. is so chummy with the school district that he is even listed on it as a staff member on BHUSD’s web site (under construction and facilities staff).
See:
https://www.bhusd.org/apps/pages/index.jsp?uREC_ID=41863&type=d&pREC_ID=staff
It probably is helpful that Team Concepts Development Services, the DLR Group and the outside law firm mentioned in the article also are major “contributors” of at least $25,000 annually to the Beverly Hills Education Foundation. It causes the school board to be disinclined to exercise proper oversight and ask any tough questions of anyone connected to the school bonds and construction.
See:
https://www.bhef.org/apps/pages/levels
https://www.bhef.org/apps/pages/business-sponsors
The bond funds of almost $385 million have almost been used up. The high school construction has moved at a snails pace as has El Rodeo. Honestly, I have only witnessed 1 or 2 workers at a time laying down tarps or moving mounds of dirt around at BHHS.
I also want to mention the $15 million in legal fees paid to outside law firms and lobbyists to fight the subway under the high school from school bond fund money earmarked for construction was foolish and never mentioned to city taxpayers ahead of time when they were asked to pass the proposition for school bonds. It also is nowhere to be found in the bond offering documents. Lets see supposed 2 legal opinions which found the use of $15 million paid to fight subway construction was a permissible use of school bond money meant for school construction.
Again, Beverly Press gets it wrong. DLR contract was not up for renewal. The DLR contract was up for increased scope, design change amendment #34 to tge tune of $6 million to change scope to a project district and community have no funding for. Board did the absolutely correct thing to table it. Don Blake has no budget limitations and no ceiling. The more he changes, the more is spent, the more he earns. Don Blake and TCDS are equal to smash and grab robberies. At least those guys do it full frontal and in your face. Blake and his cohorts do it under color of night. Bregy should be ashamed of himself supporting this highway robbery. Good for those on the board who are thoughtful, and are not merely approving contracts fir the establishment old boys club.
Just reread Mr. Simmons’ comment. The school boards of yore are responsible for this clear abrogation of duty opening the district up to the grift. The common denominator from the past to the present is Noah Margo. Chew on that folks.
Ms. Gold – you are correct in that Noah Margo is the only current member of the BHUSD school board who was around when this whole debacle was put in place. I would add Dr. Michael Bregy, Superintendant, to the list of folks who was around when school construction and the spending of construction funds got underway.
Mary Wells and Rachelle Marcus seem to be asking some real questions. It does seem they care about cleaning up the mess created for them and this city………..