[00:00:01]
[Call to Order ]
AND WELCOME TO THE SEPTEMBER 24TH, 2026 BOND OVERSIGHT MEETING.I'M THE CHAIR OF THE BOC, AND I WANNA WARMLY WELCOME ALL OF OUR MEMBERS, DISTRICT STAFF, AND MEMBERS OF THE PUBLIC.
[Chair’s Remarks ]
LEMME JUST READ TO YOU REAL QUICKLY, THE BOC MISSION, THE BOC CHARTER AND MEMO, MANUM MEMORANDUM OF UNDERSTANDING STATES THAT THE COMMITTEE HAS A SHARED VISION WITH THE DISTRICT IN BUILDING, MODERNIZING, AND MAINTAINING SCHOOLS THAT PROMOTE THE FULL DEVELOPMENT OF THE CHILD.OUR EDUCATIONALLY, ENVIRONMENTALLY SOUND ENHANCE THE NEIGHBORHOODS THROUGH DESIGN AND PROGRAMMING AT CENTERS OF THE COMMUNITY, AND REFLECT THE WISE AND EFFICIENT USE OF LIMITED LAND.
THE MOU ALSO STATES THAT THE BOC HAS A RESPONSIBILITY TO RECOMMEND AGAINST THE EXPENDITURE OF BOND FUNDS WHEN THE DISTRICT DOES NOT PROVIDE ADEQUATE INFORMATION OR EFFECTIVE OVERSIGHT, OR WHEN A PROJECT OR PROGRAM APPEARS TO BE IMPERMISSIBLE OR IMPRUDENT.
AND THANK YOU MY FOR THIS MEETING.
WE HAVE 10 MEMBERS ATTENDING IN PERSON HERE IN THE BOARDROOM.
WE HAVE NO MEMBERS ONLINE, NO ONE ONLINE.
UH, NONE ARE PARTICIPATING REMOTELY.
UM, IF THERE IS ANY MEMBER, OR EXCUSE ME.
OKAY, SO THEN WE DON'T HAVE ANY MEMBERS APPEARING ON ZOOM.
THEREFORE, I WANT TO THANK K-L-C-S-I-T-S AND SPANISH INTERPRETATION STAFF FOR THEIR SEAMLESS WORK IN BROADCASTING OUR MESSAGES BOTH TODAY AND THROUGHOUT THE YEAR.
YOU KNOW, I NEVER, UM, I JUST READ THAT AND SOMETIMES IT SEEMS ALMOST WE'RE JUST DOING SOMETHING TO, YOU KNOW, THANK ALL THE PEOPLE INVOLVED, BUT I'VE MET A FEW OF THE PEOPLE FROM KCLS AND, UH, THEY'RE REALLY GOOD PEOPLE AND ENGAGING.
SO, I WANNA SAY FROM ME PERSONALLY, I ALSO BELIEVE AND OFFER MY THANKS FOR YOUR GUYS' WORK.
I'D ALSO LIKE, UH, TO ASK A CHAIR, VICE CHAIR CAMPBELL, TO PROVIDE ADDITIONAL REMARKS.
THE BOC WEBSITE CAN BE FOUND@WWW.BOND OVERSIGHT.
A LIVE STREAM OF TODAY'S MEETING CAN BE FOUND ON THE WEBSITE UNDER THE TAB MEETING AGENDAS, UPCOMING MEETINGS.
THE WEB STREAM INCLUDES VERSIONS IN BOTH ENGLISH AND SPANISH.
THE BOC WEBSITE INCLUDES ALL MATERIALS FROM PREVIOUS MEETINGS, BOND MEASURES, AND OTHER INFORMATION RELEVANT TO THE DISTRICT'S BOND PROGRAM AND OUR OVERSIGHT ROLE.
THIS MEETING IS BEING CONDUCTED IN ACCORDANCE WITH THE REQUIREMENTS OF THE BROWN ACT.
FOR MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THE COMMITTEE REMOTELY, WE ASK THAT YOU REGISTER ON A GOOGLE FORM PROVIDED AS A HYPERLINK ON THE MEETING AGENDA.
IF THERE ARE ANY MEMBERS OF THE PUBLIC IN THE BOARDROOM WHO WISH TO SPEAK, YOU MAY ALSO SIGN UP TO THE RIGHT OF THE SPEAKER PODIUM.
MR. HAMNER, UH, THANK YOU AGAIN, MR. CAMPBELL.
UH, SO WE HAVE SOME ANNOUNCEMENTS.
UH, I'D LIKE TO INVITE MEMBERS TO ATTEND.
UM, THERE'S A, THERE'S FOUR OF 'EM, UH, FOUR RIBBON CUTTING CEREMONIES TO CELEBRATE THE COMPLETION OF SCHOOL CONSTRUCTION PROJECTS, UH, HERE THE REMAINDER OF SEPTEMBER AND SOME OCTOBER OF EIGHT.
UH, EVENT DATES TOMORROW AT BRIGHT ELEMENTARY SCHOOL OUTDOOR LEARNING ENVIRONMENT PROJECT.
THERE'S A RIBBON CUTTING AT 8:30 AM UH, IN THE MONTH OF OCTOBER, WE HAVE HAWAIIAN AVENUE, EEC, OUTDOOR CLASSROOM AND CAMPUS, UH, UPGRADE PROJECT RIBBON CUTTING, UH, FROM EIGHT, UH, AT ON OCTOBER 8TH AT 10:00 AM WE HAVE VINE STREET EARLY EDUCATION CENTER, OUTDOOR CLASSROOM AND CAMPUS UPGRADE PROJECT, A RIBBON CUTTING ON OCTOBER 12TH AT 9:30 AM AND FINALLY, WESTCHESTER AND RICH SCIENCES MAGNET ATHLETIC UPGRADE PROJECT GROUNDBREAKING ON OCTOBER 13TH AT 9:00 AM.
ANYBODY WHO'S, UH, INTERESTED, PLEASE CONTACT, UH, OUR BOC STAFF AND THEY WILL ASSIST YOU IN PARTICIPATING.
UH, ITEM TWO HERE, WE, THE BOC, UH, DID HEAR BACK FROM THE DISTRICT CFO REGARDING THE B C'S REQUEST TO BE PART OF THE BOND AUDIT ENTRANCE MEETING, AND TO RECEIVE A COPY OF THAT AUDIT WORK PLAN, THIS WAS REQUESTED IN BOC RESOLUTION 2026 DASH 16, ADOPTED IN MAY 28TH, 2026.
AND THIS IS SPEARHEADED A LOT BY MY COLLEAGUE AND COACH, UH, VICE-CHAIR, UH, MR. CAMPBELL.
AND SO WITH THAT, IS THERE ANYTHING YOU WANT TO ADD? UH, THANK YOU CHAIR HAMNER.
I, I JUST DO WANT TO ACKNOWLEDGE AND THANK, UM, UH, I UNDERSTAND ULTIMATELY THAT, UH, APPROVAL OF, OF THIS COMPONENT OF OUR REQUEST, UH, WAS RECEIVED FROM SUPERINTENDENT CH UH, AND, UH, WE'VE BEEN WORKING WITH CFO BRAVO KARIMI.
I, I DO WANT TO ACKNOWLEDGE, UM, AND THANK BOTH OF THEM FOR, UH, FOR THAT.
AND, AND I THINK, UM, AM HOPEFUL, UH, BASED ON OUR INTERACTIONS SO FAR THAT WE'RE STARTING A NEW CHAPTER, UH, OF MORE POSITIVE COLLABORATION AND, AND INFORMATION SHARING BETWEEN THE BOC AND THE DISTRICT.
SO, UM, LOOKING FORWARD TO, UH, SHARING INSIGHTS FROM THE COMMITTEE ON AREAS OF CONCERN AND RISK, UH, SINCE WE'RE PRIMARY ADDRESSES
[00:05:01]
OF THE BOND PERFORMANCE AUDIT, UM, AND, UH, AND, AND WE PERFORM A VITAL OVERSIGHT ROLE.SO, GLAD TO BE A PART OF THE PROCESS.
AND AGAIN, GRATEFUL TO THE STAFF FROM THE DISTRICT WHO, AND THE SUPERINTENDENT FOR, UH, FOR FACILITATING THAT AS SOMEONE WHO'S KIND OF PLAYED SECOND FIDDLE TO THIS, DUE TO MR. CAMPBELL'S, UM, KNOWLEDGE AND EXPERTISE IN THIS AREA, UM, IT IS REFRESHING AND WE APPRECIATE VERY MUCH, UM, SUPERINTENDENT'S OFFICE AND ADMINISTRATIVE STAFF, UH, FOR KIND OF TURNING THE CORNER HERE AND ALLOWING, UM, THIS TO MOVE FORWARD AS, AS DETERMINED BY OUR MOU.
UM, ITEM THREE HERE, BEFORE WE GET STARTED WITH THE AGENDA.
UH, MY LAST COMMENT, AS YOU KNOW, I ADDRESSED THE BOARD OF EDUCATION IN PERSON REGARDING THE BOC, NOT RECOMMENDING THE DISTRICT'S PROPOSED PURCHASE OF ELECTRIC BUSES WITH BOND FUNDS.
THE BOC FORWARDED A LETTER TO THE SUPERINTENDENT AND TO THE BOARD ON AUGUST, UH, 21ST, DETAILING THE MULTIPLE CONCERNS ABOUT THE PROPOSAL.
I THEN APPEARED AT THE BOARD MEETING ON SEPTEMBER 15TH, WHERE PURCHASE OF ELECTRIC BUSES WAS PROPOSED FOR THE BOND APPROVAL.
NOW, THERE WERE FIVE ITEMS THAT WE HIGHLIGHTED.
THE LETTER WAS FOUR PAGES LONG.
IT WAS VERY QUICK INTO THE DETAIL.
ONE OF THE PRIMARY ITEMS, WHICH I DIDN'T WANT TO ADDRESS, THAT WASN'T NOT THE PURPOSE.
IN FACT, MY, UH, PURPOSE FOR BEING AT THE BOARD MEETINGS WAS OUT OF RESPECT.
I THINK WE, I, UH, IDENTIFIED IN OUR FIRST MEETING AS WE STARTED THIS, UH, ACADEMIC YEAR BACK IN AUGUST, THAT WE REVIEWED 39 PROJECTS LAST YEAR, THE BOC.
AND WE'RE NOT, I'M NOT STATING THIS TO, FOR THE MISUNDERSTANDING THAT SOMEHOW WE'RE A RUBBER STAMP, BUT WE APPROVED 38 OUTTA 39 PROJECTS.
SO WE DENIED ONE PROJECT LAST YEAR.
DENIED MEAN, THAT'S NOT THE RIGHT WORD.
WE RECOMMENDED NOT TO MOVE FORWARD LIKE WE DID WITH THIS ITEM.
THE COLLECTIVE OF THE 15 MEMBERS OF THIS BOARD HAS AN INCREDIBLY UNIQUE PERSPECTIVE OF DIFFERENT, UM, WHAT WE DO IN OUR LIVES AND OUR EXPERTISE.
AND SO THESE DECISIONS COME TOGETHER IN, IN A VERY LARGE ECOLOGY OF OPINION AND KNOWLEDGE.
AND SO THE INFORMATION PROVIDED TO THEM WAS ME TO BE THERE OUTTA RESPECT TO SAY, I'M HERE TO ANSWER ANY OTHER CLARIFYING QUESTIONS.
WE ARE AN ADVISORY, UH, GROUP TO THE BOARD OF EDUCATION, THE ELECTED OFFICIALS WHO GO TO THE COMMUNITY AND ARE VOTED TO REPRESENT THE COMMUNITY.
WE'RE THAT PART OF THAT COMMUNITY, BUT WE'RE EXPERTS IN OUR AREA.
SO WHEN I APPROACHED THE BOARD, UM, IT WAS TO, IN MY OPINION, RESPECTFULLY BE THERE TO ASSIST THEM IN ANY CLARIFYING QUESTIONS THEY HAVE TO SHOW THE COMMUNITY THAT THIS IS HOW WE WORK, AND WE DON'T ALWAYS AGREE.
AND WHEN WE DON'T AGREE, HERE'S AN OPPORTUNITY TO GET MORE INFORMATION.
THEY DON'T KNOW THE COLLECTIVE DECISIONS AND COMMENTS THAT WERE MADE.
SO I'M THERE, AND THE LETTER'S NOT GONNA DO THAT.
AND I DIDN'T WANNA REPEAT THE LETTER, BUT I WAS DISMAYED AS I APPROACHED THE PODIUM AND, UH, WITNESSED THE DAIS.
AND, UH, THE, THE FACES JUST SHOWED THAT THERE WASN'T MUCH INTEREST FOR ME TO BE THERE.
SO I'M ACTUALLY COMPLETELY OFF SCRIPT WHAT I WAS SUPPOSED TO SAY TO YOU GUYS, SO I APOLOGIZE.
UM, THE POINT BEING IS, IS THAT I HAVEN'T EVEN WATCHED THE VIDEO.
I APPRECIATE THE COMMENTS THAT HAVE BEEN MADE.
I DON'T THINK I DID A, A, A GOOD ENOUGH JOB.
I WISHED I COULD HAVE CONNECTED.
I WILL SAY THIS, THIS NEEDS TO BE STATED.
THE INDIVIDUAL THAT I DID CONNECT WITH VISUALLY AND I FELT WAS LISTENING TO ME, WAS A GENTLEMAN THAT WAS SITTING HERE TO THE RIGHT OF PRESIDENT MERRISON.
AND THAT WAS SUPERINTENDENT SHA.
SO I APPRECIATE HIM IN TERMS OF HIS, SINCE HE'S COME ON BOARD, I'VE MET WITH HIM.
HE'S ADDRESSED THE BOARD SO FAR.
I REALLY APPRECIATE THE RESPECT THAT HE'S SHOWING TOWARDS US, AND I HOPE THAT CONTINUES.
BUT I DO REALLY APPRECIATE THAT.
UM, AS YOU KNOW, THERE WEREN'T ANY QUESTIONS ASKED OF ME AS I WAS THERE.
AND I DID ASK, AT THAT POINT IN TIME, I DIDN'T KNOW MUCH WHERE TO GO BECAUSE I DIDN'T FEEL I WAS COMMUNICATING.
UM, AND THEY RESPECTFULLY INDICATED THERE WASN'T.
BUT I DID HEAR, I SPENT A, A FEW MINUTES AFTER THE, MY ADDRESS IN THE BACK OF THE ROOM JUST TO HEAR, UH, WHAT WAS HAPPENING.
AND, UH, AFTER A WHILE I LEFT, I UNDERSTAND THERE WAS MUCH MORE DIALOGUE.
'CAUSE AT THE END OF THE DAY, I BELIEVE WHAT WE DO ISN'T ABOUT, UH, CHANGING THE WORLD ONE MOMENT AT A TIME, BUT IT'S SETTING THE TONE AND PLANTING SEEDS FOR LONG TERM, UM, RESULTS.
I HOPE THAT WOULD BE IN POSITIVE.
SO WITH THAT, UM, I THINK I WILL READ THIS ONE LAST COMMENT HERE.
I, UH, I THINK MY EXPERIENCE GOES TO THE QUESTION OF HOW THE BOC CAN BEST COMMUNICATE ITS FINDINGS AND EFFECTIVENESS OF VARIOUS APPROACHES.
[00:10:01]
THAT, IS THERE ANY COMMENTS FROM YES, I WOULD LIKE TO THANK YOU CHAIRPERSON HAMNER, FOR THE OUTSTANDING PRESENTATION YOU MADE TO THE BOARD OF EDUCATION CONCERNING THE PURCHASE OF ELECTRIC BUSES.YOU SUCCINCTLY EXPRESSED THE BOND OVERSIGHT COMMITTEE'S CONCERNS AND OUR UNANIMOUS DECISION TO NOT PURCHASE, OR, UM, WELL, TO NOT SUPPORT THE PURCHASE OF THESE BUSES USING TAX PAYER MONIES.
THE BOARD OF EDUCATION DID NOT LISTEN, BUT OUR POSITION WAS ON RECORD.
ANY OTHER COMMENTS FROM ANYONE OR OKAY WITH THAT? WELL, THANK YOU FOR THAT AND I APPRECIATE, UH, STAFF, THANK YOU FOR PUTTING THIS ON THE, UM, CARES REMARKS SO THAT I COULD, UH, TRY TO EXPLAIN MYSELF AND WIPE A LITTLE BIT OF, I DON'T KNOW WHY I FEEL I HAVE A MUTT ON MY FACE.
BUT ANY CASE, UH, YOU KNOW, JUST TO CLARIFY, YOU KNOW, HOW THINGS TRANSPIRED.
[1. Public Comment]
SO WITH THAT, UH, ITEM NUMBER ONE, WE HAVE PUBLIC COMMENT.SO ALL SPEAKERS HAVE UP TO THREE MINUTES.
IF YOU WISH TO ADDRESS MORE THAN ONE AGENDA ITEM, YOU'LL BE PROVIDED SIX MINUTES TOTAL.
UH, ARE THERE ANY SPEAKER? I KNOW WE HAVE TWO SPEAKERS TODAY.
SO WITH THAT, MS. ILE, PLEASE, UH, CAN YOU ANNOUNCE THE FIRST SPEAKER? YES.
OUR FIRST SPEAKER IS ONLINE AND THE SPEAKER.
UM, CAN YOU PLEASE UNMUTE YOURSELF? YOU HAVE SIX MINUTES.
IS THE SPEAKER ENDING IN 9 9 1 6? CAN YOU HEAR US? MS. PALMA? YOU WANNA COME BACK FOR IT? UH, YES.
UM, LET'S, UH, TAKE OUR, UH, OUR NEXT PUBLIC SPEAKER, MR. DAVID KOSKI.
AND WE'LL GO BACK TO MS. PALMER.
GOOD MORNING TO Y'ALL SYSTEM AND, AND THE EDUCATORS AND, AND THE BUILDINGS AND THE BOND MONEY.
AND, UH, THANK YOU ALSO TO THE INSPECTOR GENERAL WHO HAS STEPPED UP IN A NEW WAY TO BE PARTICIPATING IN, UH, THE SIMILAR OVERSIGHT OF THE DISTRICT.
AND TODAY'S REPORT SHOULD BE VERY INTRIGUING.
FIRST OF ALL, I AM SORRY I MISSED THE LAST MEETING AND WASN'T ABLE TO WRITE YOU ANYTHING.
BUT AGAIN, YOU CONTINUE TO NOT HAVE AN MOUI WENT AS A 14-YEAR-OLD FROM MY HOUSE, SPIKED UP TO PEPPERDINE TO SEE GERALD FORD AFTER THE RESIGNATION OF THE LEADER, UH, OF THIS COUNTRY.
AND, UH, I DIDN'T SEE ANY CHANGES.
IF YOU DON'T HAVE A NEW SIGNED MOU, JUST KNOW THAT THE SAME PEOPLE WHO WERE HOLDING UP THE SAME ONE ARE ADVISING TO HOLD IT UP AGAIN.
AND I APPRECIATE MR. HAMER'S PRO PROZAN VIEW OF THINGS, BUT I'M GONNA TELL YOU, IT'S THE SAME TEAM DOING THE SAME THING.
AND, AND MS. LURCHER MILLER COMPLIMENTED YOU, YOU WERE ABSOLUTELY IGNORED AT THE BOARD MEETING.
THERE WAS NO QUESTIONS, NO EXCHANGE, NO THANK YOU, NO NOTHING.
UH, SIMILARLY, TODAY WE'RE GOING OVER, UH, FRANKLIN HIGH SCHOOL, AND THE BOARD MEMBER FOR FRANKLIN HIGH SCHOOL COULD BE HERE TO BE PARTICIPATING IN IT.
SO THERE'S A LACK OF COORDINATION ON MANY AREAS.
UH, ALSO FROM LAST MEETING, YOU APPROVED $2.5 BILLION PATHWAY ON THESE SLAB BUILDINGS.
THE EARTHQUAKE UNSAFE THING THAT IS IN OVER 150 DISTRICTS IN THE, IN THE STATE.
THERE SHOULD BE A REMEDY AT THE STATE LEVEL RATHER THAN USING UP THE BOND MONEY.
IT'S SAFETY, BUT THERE SHOULD BE A LEGISLATIVE ATTEMPT TO MAKE THAT, UH, FOR GOVERNOR BESERA OR FOR NEWSOM AT THE END.
IT SHOULD BE TAKEN CARE OF FOR ALL DISTRICTS.
LA UNIFIED SHOULD NOT BE ON THE PATHWAY TO $2.5 BILLION OUT OF THE, UH, KEY WE NEED TO MAXIMIZE THE BOND MONEY.
UM, AGAIN, YOU MAY NOT BE AWARE OF THE COURT DECISION.
YOU GUYS WERE ON TARGET WHEN YOU OBJECTED TO THE LAST MINUTE PLACING OF THE BOND WITHOUT ANY DISCUSSION.
AND THAT, AGAIN, WAS THE SAME PEOPLE THAT ARE HOLDING UP THE MOU.
THE, THE COURT OF APPEALS FOUND THAT IT WAS DISINGENUOUS THE WAY IN WHICH THE BOND WAS PUT BEFORE THE BOARD, THE VOTERS.
BUT OF COURSE, UH, THE VOTERS HAVE ALREADY VOTED.
AND, UH, BUT, BUT YOUR COMPLAINTS WERE LEGITIMIZED BY A THREE JUDGE, THREE ZERO DECISION.
UH, UH, I, OH, I CAN'T SEE THE TIME.
[00:15:01]
WHERE I AM.UM, SO, UH, AND CONGRATULATIONS TO YOU, YOU, YOU'VE ALSO STIMULATED, YOU KNOW, THE LA TIMES, UH, WITH RESPECT TO THE DEMOGRAPHICS AND THE CLOSING OF BUILDINGS, AND WHAT, WHERE ARE YOU GONNA PLACE THINGS? AND SOME OF THIS IS THAT, BUT SOME OF IT IS ALSO MANAGEMENT ISSUES.
LET ME GIVE YOU, UH, SOME OF THE STORIES FROM, UH, ANNANDALE AND GLEN ALTA, WHICH WERE IN, IN, IN THE NEWSPAPER.
SOME OF THOSE ARE MANAGEMENT ERRORS.
SO YOU NEED TO LOOK AT NOT JUST CLOSING SCHOOLS OF 200 KIDS, WHICH HAVE THE HIGHEST ACADEMIC ACHIEVEMENT.
UH, UH, THEY'RE ALMOST AS CLOSE TO A ONE ROOM SCHOOLHOUSE THAT BUILT AMERICA.
IT'S THIS ELEMENTARY SCHOOLS OF EIGHT, NINE, AND A THOUSAND THAT NEED TO BE DISPERSED IN A, IN AN INTELLIGENT WAY, RESPECTING COMMUNITIES.
SO, AGAIN, UM, I, I THANK YOU, UH, FOR YOUR WORK.
UM, AND TODAY YOU INVITED PEOPLE TO GO TO EEC GROUNDBREAKINGS.
IF WE'RE GONNA HAVE ELEMENTARY SCHOOLS, WHY DO WE GONNA KEEP THESE EE CS SEPARATE AND NOT BUILD THEM FROM AGE THREE TO GRADE THREE, SOMETHING THAT'S MORE COHESIVE, RATHER THAN INVESTING IN THE EECS WHEN IN FACT, UH, THERE'LL BE SOME CHANGES THERE ALSO, UM, THE, UM, UM, TODAY YOU'RE GONNA, UH, AMEND THE, UM, THE, UH, APPROVE THE AMENDMENT OF THE INSPECTOR GENERAL'S WORK ON IT WITH RESPECT TO, UH, THE, UM, UM, UH, CYBERSECURITY.
NOW, YOU ALSO COMPLAINED WHEN COOPS WERE USED ON THE HEELS OF THE SAME COOPS THAT WERE USED FOR THE ELECTRIC BUSES.
IT IS NOT JUST THE PURCHASE OF ELECTRIC BUSES.
ALL OF THE COSTS THAT WERE INCORPORATED NEED TO BE INVESTIGATED, UM, BECAUSE A GOOD INTENTION TURNED OUT TO BE A BAD PROBLEM.
NOW, YOU'RE GONNA SEE AS WELL, HOPEFULLY IN THE IT REVIEW OF CYBERSECURITY.
'CAUSE THAT WAS LABOR DAY IN 2022, IN WHICH, UH, ALL SORTS OF CONTRACTS WENT OUT FOR CYBERSECURITY.
AND WE DON'T KNOW EXACTLY WHAT HAPPENED.
ALSO, TODAY, YOU WILL LOOK AT, UH, UM, THE, IT IS TOO BAD.
THE CONTRACTOR IS NOT HERE TODAY TO TALK AS WELL.
BUT YOU'LL HAVE DISTRICT FACILITIES AS WELL AS THE IG REPORT.
UM, THE, THE CONTRACTOR HAS WORKED ON A NUMBER OF PROJECTS IN THIS DISTRICT, INCLUDING, UH, EAGLE ROCK AUDITORIUM, UH, MARSHALL HIGH SCHOOL, WHERE I TAUGHT THE FIELD, UH, THERE HAS NOT BEEN ANY OBJECTIONS TO THE WORK THAT THAT CONTRACTOR AND IN FACT WAS A BEST VALUE PURCHASE.
UH, WHICH MEANS THAT FACILITIES KNEW THAT THIS CONTRACTOR WAS DOING, I WOULD INVITE CONTRACTORS IN LIKE THIS TO COME AND TALK TO YOU.
WERE THE DRAWINGS DONE? WELL, ARCHITECTURAL QUE, WHO IT DOESN'T SAY ON EITHER REPORT, IG OR THE DISTRICT FACILITIES, WHO WAS THE ARCHITECT, HOW WERE THE DRAWINGS? WHAT CAN BE IMPROVED ON A HISTORIC BUILDING OF 125 YEARS OLD? THE PRINCIPLE PUT SOME CHANGE ORDERS IN IT.
IT LOOKS LIKE THE PRINCIPLE'S BAD, BUT IN FACT, THE PRINCIPLE SAID, IF YOU'RE GONNA SPEND 10, $14 MILLION ON THIS, WHY CAN'T YOU CHANGE THESE SIMPLE THINGS TO MAKE IT AESTHETICALLY, UH, PLEASING? SO THAT RAISES THE QUESTION OF HOW MUCH ARE PRINCIPALS AND SCHOOL SITES INVOLVED IN THE FACILITIES? ARE THEY GIVEN ONE OR TWO MEETINGS? AND THAT'S IT.
AND SO FINALLY, I END WITH, UM, THE, UH, ERNST AND YOUNG REPORT, 600 PAGES.
YOU SHOULD BE LOOKING AT THAT BECAUSE THAT IS THE ROADMAP.
UH, THE REASON WHY YOU WERE NOT TALKED TO IS BECAUSE THE BOARD OF ED MET IN A ONE-WAY, UH, ZOOM IN WHICH THEY COULDN'T ANSWER QUESTIONS, BUT THEY WERE TOLD TO STAY AWAY FROM TALKING ABOUT THE ELECTRIC BUSES.
THAT IS A REAL QUESTIONABLE BROWN ACT ISSUE, UH, AS WELL AT TWO O'CLOCK TODAY.
YOU'RE NOT INVITED TO THE STRATEGIC PLAN ON WHAT WILL HAPPEN WITH ALL THE FACILITIES.
I, I DO WANNA STATE FOR THE RECORD IN THE OIG, YOU GUYS CAN CLARIFY THIS.
THE ARCHITECT ACTUALLY WAS STATED IN YOUR, YOUR REPORT.
WHO WAS IT THE ARCHITECT? WHO WAS IT? UH, I'LL LET THEM, 'CAUSE IT'S A, IT WAS A, IT'S A NAME THAT THEN CHANGED TO A, AN ACRONYM, UH, DURING THE PROJECT.
UH, WE HAVE THE SECOND, UH, SPEAKER.
AND, UM, LET'S TRY THIS AGAIN.
CAN YOU HEAR US? HELLO? CAN YOU HEAR ME? YES.
MY NAME IS MARIA LUISA ALMA, AND I'M HERE ONCE AGAIN TO APPRECIATE AND SAY THANK YOU TO CHAIR HAMNER AND TO THE MEMBERS OF THE BOND OVERSIGHT COMMITTEE FOR BRINGING THE ISSUE FORWARD TO THE FULL BOARD OF EDUCATION.
AND CLEARLY TO BE AVAILABLE TO ANSWER THEIR QUESTIONS, UM, ON THE ISSUE.
BUT OF COURSE, WE KNOW THAT THAT WAS NOT ENOUGH.
WE SAW CLEARLY THAT THE BOARD, AGAIN, DISREGARDED THIS COMMITTEE'S ADVICE.
WE ARE AWARE LEGALLY THAT IT'S ONLY
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ADVICE, BUT STILL DISHEARTENING TO SEE IT ON THIS QUESTION OF THE ELECTRIC SCHOOL BUSES.I FIND IT ESPECIALLY, UH, PROBLEMATIC THAT THERE WAS EVEN A QUESTIONABLE ISSUE OF THE STATUTE, WHETHER OR NOT THIS WAS EVEN A LEGAL PURCHASE SPECIFICALLY FOR THE ELECTRIC BUSES.
SO, AS A TAXPAYER, WHEN I READ THE FULL TEXT OF BALLOT MEASURE US, I FEEL MORE BETRAYED BECAUSE AS A LAYPERSON, I CAN SEE HOW GENERAL VOTERS WOULD CONCLUDE THAT THIS COULD NOT POSSIBLY HAPPEN.
THEY, HOW COULD THEY ENVISION THAT? THE BOARD WOULD ASK AGAINST YOUR RECOMMENDATIONS, YOUR CONCLUSIONS.
THE, THAT TEXT SAYS, INCLUDING ALL EXPENDITURES OF REVENUE GENERATED BY THIS MEASURE SHALL BE SUBJECT TO REVIEW AND OVERSIGHT BY AN INDEPENDENT CITIZENS OVERSIGHT COMMITTEE.
SO WHEN I HEAR REVIEW AND OVERSIGHT, PEOPLE THINK IT MEANS APPROVAL.
WE KNOW THAT THAT IS NOT LEGALLY WHAT IT MEANS.
BUT HOW IS IT THAT THE BOARD OF EDUCATION CONTINUES TO DISREGARD THE FEW TIMES THAT YOU DO NOT RECOMMEND A PROJECT FURTHER? THAT TEXT ALSO SAYS THE DISTRICT WILL PROVIDE THE COMMITTEE WITH SUFFICIENT RESOURCES TO PUBLICIZE THE COMMITTEE'S CONCLUSIONS.
AND THIS IS WHERE I FIND A BIG MISSING PIECE OF THIS.
NO ONE IN THE PUBLIC KNOWS ABOUT YOUR DISAGREEMENTS.
THEY DON'T EVEN KNOW THAT YOU EXIST.
THE PARENTS DON'T KNOW WHAT A BOND IS.
THEY DON'T KNOW WHAT WORK YOU DO.
SO IT'S A HUGE, UH, MISSED OPPORTUNITY TO BRING THAT TO LIGHT, TO THE TAXPAYERS, TO THE PARENTS OF THE DISTRICT.
UH, I WOULD LIKE TO SEE THAT HAPPEN WHEN I GO TO THE LAD'S WEBSITE, FOR EXAMPLE, ON LAD.ORG.
THERE'S NO DIRECT LINK TO THE BOND OVERSIGHT COMMITTEE AS FAR SOMEBODY WOULD HAVE TO KNOW, UH, TO LOOK FOR IT BEFORE THEY CAN SEE IT.
IT'S FURTHER EMBEDDED UNDER THE BOARD OF EDUCATION'S WEBSITE.
BUT WE CAN'T SEE THE DIRECT LINK ON THE TOP, UH, WEBSITE.
YOU KNOW THAT THERE IS A FAMILY NEWSLETTER THAT COMES OUT WEEKLY.
WHY NOT PUBLISH YOUR CONCLUSIONS AND DISAGREEMENTS IN THAT NEWSLETTER? UH, WE ALSO SEE THE MEDIA NEWSROOM.
WHY CAN'T YOU PROMINENTLY DISPLAY, ESPECIALLY NOT JUST YOUR DECISIONS, BUT YOUR DISAGREEMENTS.
UH, THESE THINGS SHOULD BE NEWSWORTHY.
THEY SHOULD BE BROUGHT FORTH TO THE TAXPAYERS.
NOW, OF COURSE, WE HAD MR. CHA HERE WHO VISITED WITH YOU ON SEPTEMBER 3RD, AND HE PROMISED A QUICK RESOLUTION ON THAT MOU.
I HOPE THAT THAT ACTUALLY HAPPENS AND THAT YOU ALSO GET, UH, NOT JUST LISTEN TO, BUT THAT THEY CONSIDER, AND THAT YOU GET SOME OF WHAT YOU'VE ASKED FOR THOSE HOLDUPS THAT HAPPENED, UH, TO CAUSE YOU TO HAVE THE MOU BE DRAGGED OUT THIS LONG.
I WOULD ALSO ADD INTO THAT MOU THAT YOU DEMAND, THAT THERE BE ADDITIONAL OUTREACH OPPORTUNITIES TO THE PARENTS.
WE'VE TALKED ABOUT THIS BEFORE, TO BRING YOU, UH, TO ADDRESS THE PARENT COMMITTEES.
UH, I WOULD LIKE TO SEE THAT YOUR PARTICIPATION BE INCLUDED IN THE NEW CAMPAIGN FOR STRONGER SCHOOLS TOGETHER.
RIGHT? THAT'S GOING TO BE A BIG DEAL.
IF YOU WATCH THE DISCUSSION THAT HAPPENED HERE, UH, LAST WEEK ON, I'M SORRY, THIS WEEK ON SEPTEMBER 22ND, ON TUESDAY, THE DISCUSSION AROUND THAT, UH, THERE WERE MANY QUESTIONS THAT WERE PUT OUT THERE ABOUT THE USE OF THE EXCESS FACILITIES.
I'M CONCERNED ABOUT MISSION CREEP.
UM, BUT THERE WERE QUESTIONS THERE THAT WERE PUT OUT ABOUT IF THE, THOSE PROPERTIES WERE CONVERTED INTO REVENUE OPPORTUNITIES FOR THE SCHOOL DISTRICT, WHERE WOULD THOSE COME IN? AND IT SOUNDED LIKE THE DISTRICT WOULD RATHER HAVE THAT REVENUE COME IN UNDER GENERAL FUND RATHER THAN UNDER CAPITAL IMPROVEMENT.
I WANTED TO GO BACK INTO FACILITIES DIRECTLY.
UH, SO I THINK YOU SHOULD BE INVOLVED IN THAT AND INCLUDE THAT ALSO INTO YOUR REVISED MOU.
SO I REPRESENT ADA, A NONPROFIT WITH A MISSION TO IMPROVE THE EDUCATION OF PARENTS, AND THEREFORE, TO INCREASE THEIR INVOLVEMENT WITH SCHOOL DISTRICTS.
I BELIEVE THAT THAT WILL DRIVE ACADEMIC EXCELLENCE WHEN PARENTS ARE INVOLVED.
BUT LIKE I SAID BEFORE, PARENTS IN GENERAL DON'T KNOW NOTHING ABOUT WHAT YOU DO.
THEY DON'T EVEN KNOW THE FIRST THING OF WHAT A BOND IS.
THEY DON'T KNOW THAT THE BOND FUNDS ARE RESTRICTED AND ARE SEPARATE FUNDS FROM THE GENERAL FUND.
THEY DON'T KNOW WHAT THE GENERAL FUND IS.
SO THERE ARE SO MANY MISSED OPPORTUNITIES HERE TO EDUCATE THE PUBLIC AND ESPECIALLY THE PARENTS THAT ARE THE MOST INVOLVED, UH, AND CARE AND ARE VOLUNTEERING JUST LIKE YOU ARE.
UM, AND YET EVEN IN THOSE COMMITTEES, THEIR RECOMMENDATIONS ARE ALSO IGNORED BY THE SCHOOL DISTRICT.
SO I WOULD HOPE THAT YOU CAN BRING YOUR INFORMATION TO THOSE COMMITTEES.
IT IS ESSENTIAL AS WE MOVE FORWARD.
AND AGAIN, THANK YOU FOR YOUR SERVICE.
THANK YOU FOR YOUR DETAILED AND, UM, COMMENTS AND THE TIME YOU'RE TAKING TO DO THIS.
YOU KNOW, KEEP, PLEASE STAY INVOLVED.
[2. Consent Calendar A. September 3,2026 Meeting Minutes ]
WITH THAT, WE HAVE ITEM NUMBER TWO, UH, CONSENT CALENDAR.[00:25:01]
SO WE'LL BE LOOKING AT THE SEPTEMBER 3RD, 2026 MEETING MINUTES.I WANT TO ACKNOWLEDGE, UH, THE WORK THAT MS. IDLE AND BOC STAFF IN WORKING WITH THE BOC SECRETARY, DR.
ROLL, IN PRODUCING THESE DETAILED MINUTES AND PRESENTATIONS AND THE BOC DISCUSSION, IT'S IMPORTANT PART OF OUR WORK.
AND TO DOCUMENT OUR, AS WE'VE BEEN TALKING ABOUT TODAY, THE IMPORTANCE OF OUR DELIBERATIONS.
UM, IS THERE ANY QUESTIONS FOR THE MINUTES? IS THERE A MOTION FOR THE MINUTES? I WAS GONNA GO WITH MS. MCDOWELL BECAUSE I HAVEN'T SEEN HER IN A LONG TIME.
SO, UH, MOTION BY MCDOWELL SECOND.
WITH THAT, UH, HOPE JOY, CAN WE CALL FOR THE ROLL? ROLL CALL? YES.
THIS OF THE VOTE ON AGENDA ITEM NUMBER TWO, ADOPTION OF THE CONSENT CALENDAR, THE MINUTES FROM SEPTEMBER 3RD, 2026, MS. CARLOS AYE.
MR. HAMNER AYE, CONSENT CALENDARS ADOPTED WITH 10 AFFIRMATIVE VOTES.
[3. Amendment to the FY2027 OIG Work Plan ]
YOU.UM, ITEM NUMBER THREE, AMENDMENT OF THE OFFICE OF THE INSPECTOR GENERAL FISCAL YEAR 27 WORK PLAN.
AND IT'S MY HONOR TO, UH, WELCOME THE DISTRICT INSPECTOR GENERAL TO THE BOC.
AND I UNDERSTAND YOU'LL NOT ONLY INTRODUCE YOURSELF, BUT, UH, YOU'LL TELL US A LITTLE BIT ABOUT YOUR EXPERIENCE.
UH, WE'RE GONNA GO THROUGH YOUR RESUME, UH, AND YOUR WORK PLAN AMENDMENT.
JUST WANNA SAY IT'S A PLEASURE TO MEET YOU IN PERSON NOW 'CAUSE I THINK WE'VE DONE THINGS ONLINE AND OTHERS.
IT REALLY IS, UH, SEEING ALL OF YOU IN LIVE REPRESENTATIONS OF WHO YOU REALLY ARE VERSUS THE DIGITAL VERSION IS A STARK DIFFERENCE.
AND I'M REALLY GLAD TO YEAH, YOU'RE A LOT TALLER THAN I THOUGHT YOU WERE
LET ME, LET ME FIRST, UH, START OFF WITH, UH, A LITTLE BIT ABOUT ME, UH, THAT I HAVE, THAT I MAY NOT HAVE ALREADY SHARED WITH YOU.
I, I'VE HAD SOME GREAT CONVERSATIONS WITH, UH, MR. CAMPBELL.
SO HE MAY HAVE HEARD SOME OF THIS ALREADY.
I APOLOGIZE IF I'M REHASHING IT.
UH, AND I ALSO WANT TO SAY MR. HAMNER, THAT, UH, YOUR, YOUR COMMUNICATIONS, UH, TO THE BOARD DURING, UH, BOARD MEETINGS, UM, UH, ARE HEARD.
UH, THEY'RE MOST CERTAINLY HEARD BY ME.
YOU, YOU MAY NOT HAVE NOTICED, BUT I, I SIT IN A VERY INCONSPICUOUS CORNER RIGHT THERE.
COULDN'T, I COULDN'T CONNECT WITH YOU
UH, SO, UH, A LITTLE BIT ABOUT ME.
I COME TO YOU WITH SERVICE, PRIOR SERVICE IN THE MARINE CORPS.
UM, DID NINE YEARS IN THE MARINES.
I FINISHED THAT SERVICE IN SAN FRANCISCO.
UH, I WAS A, UH, EMBASSY MARINE, UH, IN A COUPLE OF DIFFERENT COUNTRIES, PROBABLY WHERE I DID THE MOST GROWING UP.
AND THEN, UH, I WAS A RECRUITER IN THE BAY AREA IN SAN FRANCISCO FOR ALMOST THREE YEARS.
UH, HAD A GREAT EXPERIENCE, UH, THROUGHOUT THAT ENTIRE CAREER.
FROM THERE, I WENT ON TO COLLEGE AND GRAD SCHOOL, UH, DID MY TIME AT FLORIDA STATE, GO SEMINOLES.
UH, AND THEN, UH, SHORTLY THEREAFTER, I GOT PICKED UP BY THE US SECRET SERVICE AND ACCEPTED AN APPOINTMENT, UH, IN THE PHILADELPHIA FIELD OFFICE, WHICH WAS KIND OF MY HOMETOWN.
UM, SO I DID ABOUT FIVE YEARS THERE, UH, AND THEN GOT PICKED UP BY THE US SECRET SERVICES, UH, PRESIDENTIAL PROTECTIVE DETAIL, WHICH IS, THAT'S BY INVITATION ONLY TO GO WORK THE FRONT OFFICE, UM, UH, AS WELL AS THE VICE PRESIDENT.
BUT THE FRONT OFFICE IS, IS, UH, UH, YOU'RE, YOU'RE, YOU'RE IN THE MAJORS AT THAT POINT.
I DID MY TIME THERE AT YALE, UH, ON, UH, ONE OF THE DAUGHTERS, 43 PRESIDENT BUSH.
UH, I FINISHED UP MY CAREER IN THE SECRET SERVICE ON A FRIDAY AND WENT TO THE INSPECTOR GENERAL'S OFFICE FOR THE EPA ON MONDAY, WHERE I DID 13 YEARS, UH, INVESTIGATING, UH, BOTH CRIMINAL, CIVIL AND ADMINISTRATIVE ALLEGATIONS OF FRAUD, WASTE, AND ABUSE.
UH, DURING THAT TIME, ALL OF IT WAS AS A SPECIAL AGENT IN CHARGE, AND A LOT OF IT WAS ACTUALLY IN THE WEEDS CONDUCTING INVESTIGATIONS THAT I VOLUNTEERED TO CONDUCT ON MY OWN.
[00:30:01]
OF LANDMARK CASES, UH, IN MY, UH, RESUME, ONE OF WHICH IS THE FIRST COMPUTER SABOTAGE CASE IN US HISTORY, WHICH IS INTERESTING SINCE WE'RE TALKING ABOUT CYBERSECURITY.UH, SO I, I DO HAVE A LITTLE BIT OF HISTORY THERE, UH, THAT RESULTED IN THE FIRST, UH, WATERSHED MOMENT FOR THE TITLE 18 STATUTE AND A CONVICTION.
UH, THE NEXT ONE WAS A WORLDWIDE SUSPENSION OF A VENDOR, UH, WHO HAD, UH, BY ALL APPEARANCES ENGAGED IN POTENTIAL PROCUREMENT ACT OF VIOLATIONS.
THEY WEREN'T PROSECUTED FOR IT, BUT THEY WERE SUSPENDED WORLDWIDE FOR IT.
UH, AND, UH, I HELPED MY INVESTIGATIVE ACTIVITY HELPED, UH, RECOVER A SIZABLE AMOUNT OF MONEY, UH, FROM, UH, THE VENDOR BACK TO THE FEDERAL AGENCY THAT THEY HAD LOST.
UH, FROM THERE I WENT TO, UH, UCSD, UH, AGAIN ON A FRIDAY TO A MONDAY.
UH, AND, UH, AND I, I ACCEPTED THE ROLE OF DIRECTOR OF INVESTIGATIONS, UM, UNDER, UH, UH, THE CHIEF ETHICS AND COMPLIANCE OFFICER IN THE OFFICE OF ETHICS COMPLIANCE.
UH, AND I HAD ANOTHER WONDERFUL EXPERIENCE, UH, UH, UH, THAT CHIEF, UH, ETHICS COMPLIANCE OFFICER, UH, STUDIED AS A CLERK UNDER, UH, SUPREME COURT, JUSTICE CLARENCE THOMAS.
UH, SHE WALKED AWAY WITH SO MUCH EXPERIENCE AND TRAINING, AND THEN I ACTUALLY GOT TO SIT IN THE SAME ROOM WITH HER AND GLOM ON TO ALL OF THAT EXPERIENCE AND TRAINING IN THE CONDUCT OF INVESTIGATIONS AUDITS AND EVALUATIONS.
WELL, DON'T YOU KNOW, HERE I AM,
UH, SO THIS IS, UH, A VERY, UH, A SMOOTH TRANSITION FOR ME.
UH, I'VE BEEN HERE 93 DAYS TODAY, FRIDAY TO MONDAY.
IS THAT, UH, UH, SO, UH, NO, THERE WAS A TRANSITION BETWEEN, UH, UCSD WHERE I LEFT ON A FRIDAY AND HUNG OUT MY OWN SHINGLE, UH, IN MY OWN BUSINESS FOR A WHILE.
WANTED TO SEE WHAT THAT WAS LIKE.
I COME FROM A FAMILY OF ENTREPRENEURS, AND, UH, AND I THOUGHT, I MISS THE GUYS.
UH, I, I WANNA WORK, I WANNA GET IN THE TRENCHES.
UH, AS I MENTIONED A MOMENT AGO, A LOT OF MY WORK, I STILL DID INVESTIGATIONS.
WE STILL DID JOINT, UH, INVESTIGATIVE AND AUDIT ACTIVITIES.
I WANTED TO GO HOME AND TAKE A SHOWER AND DO IT AGAIN TOMORROW.
UH, AND, AND THAT IS WHAT MY CAREER AND MY RESUME LOOKS LIKE.
UH, SO THERE WAS A BRIEF PERIOD, UH, 18 MONTHS OR SO.
UH, AND THEN, UH, I GOT A PHONE CALL FROM, UH, UM, THE ASSOCIATION OF INSPECTOR GENERALS TO CONSIDER A POSITION THAT HAD BEEN POSTED.
AND, UH, SO I APPLIED, UH, WENT THROUGH THE PROCESS, PRETTY RIGOROUS.
UH, THE BOARD WAS, UH, REALLY, REALLY SUPER IMPRESSIVE AND, UH, WEEDING THROUGH THE PEOPLE THAT THEY WANTED AND WHY, UH, AND, UH, I THINK THEY MADE A GOOD CALL.
UH, SO, SO IT MAY BE PREMATURE TO SAY AT THIS POINT, BUT, UH, I, I HOPE TO CONTINUE SERVING, UH, THE BOARD, UH, AND YOU, UH, IN PROVIDING THE SERVICES THAT YOU EXPECT, UH, NOT JUST EXPECT FROM THE INSPECTOR GENERAL'S OFFICE, BUT HOPE TO SEE AND REALIZE FROM THE WORK THAT WE'RE DOING, UH, SO I CAN CONTINUE WITHOUT MISSING A BEAT, UNLESS THERE'S A QUESTION.
SO, UM, THE REASON WHY, UH, YOU HAVE THIS, UM, AMENDMENT, UH, I WANT TO GIVE YOU SOME HISTORY FIRST, UH, A SIMILAR MATTER WAS PRESENTED TO THE, UH, BOC IN 2020, UH, FOR A CYBERSECURITY ASSESSMENT THAT WAS INCLUDED IN THE 2020 OIG WORK PLAN, UH, PRESENTED TO THE BOC IN JUNE OF 2019, SO THAT, THAT REQUEST MET ALL OF THE STANDARDS AND THE TIMELINES, ET CETERA.
UH, THE COST OF THAT PEN TEST, WHICH WE DIDN'T KNOW AT THE TIME THAT WE REQUESTED, AND WE WON'T KNOW UNTIL AFTER WE, IF, IF, UH, THE, UH, FUNDING IS APPROVED.
WE WON'T KNOW WHAT THAT COST IS AGAIN, UNTIL AFTER WE FIND A CONTRACTOR, UH, WHO PROVIDES US WITH THE BEST, UH, BANG FOR THE BUCK ON THAT.
UM, THAT COST, HOWEVER, WAS $159,625.
SO THAT'S HOW MUCH IT COST FIVE YEARS AGO TO DO A PEN TEST, UH, UH, TO DO THE PEN.
AND, AND WHEN I SAY PEN TEST, I MEAN A PENETRATION ASSESSMENT, PEN PENETRATION, UH, TEST, ABBREVIATED PEN TEST.
SUBSEQUENT TO THE PEN TEST OF, UH, 2020, UH, THE AUDIT IDENTIFIED POSSIBLE BREACH WEAKNESSES IN
[00:35:01]
JANUARY OF 2021.AS YOU KNOW, UH, ON LABOR DAY AS MR. UH, TCHAIKOVSKY REPRESENTED ACCURATELY, UH, IN 2022, THE INSTITUTION SUFFERED A MAJOR BREACH, THE DATE OF THE AUDIT FOLLOW-UP REVIEW RELATED TO THE PRIOR MANAGEMENT CORRECTIVE ACTIONS.
SO, AS I SAID, THERE WAS AN, THERE WAS A, A PEN TEST THAT YOU HAD, UH, AGREED TO FUND.
THEN THE INSPECTOR GENERAL'S TEAM WENT IN AND DID AN AUDIT.
AND THEN FOLLOWING THAT AUDIT WHERE WEAKNESSES WERE IDENTIFIED, THERE WAS A BREACH.
UM, THE AUDIT DID A FOLLOW-UP REVIEW RELATED TO THAT BREACH IN AUGUST OF 2025.
AND AT THAT TIME, CONDUCTED A SECOND PEN TEST.
SO, UH, THAT, THAT'S SORT OF THE HISTORY.
UH, IF THERE ARE, I, I'LL JUST GIVE YOU VERY HIGH LEVEL WHAT A PEN, WHAT A PEN TEST IS.
UH, IT'S A PROACTIVE SECURITY MEASURE.
WE'RE, WE'RE GONNA GO OUT AND WE'RE GONNA FIND, BUT NOT ME, A CONTRACTOR.
AND THE CONTRACTOR WILL ATTEMPT TO SIMULATE A CYBER ATTACK ON THE SYSTEM, THE NETWORK, AND OR THE APPLICATION TO UNCOVER VULNERABILITIES BEFORE MALICIOUS ACTORS EXPLOIT THEM.
THESE TESTS HELP ORGANIZATIONS IDENTIFY WEAKNESSES IN THEIR CYBERSECURITY DEFENSES, ALLOWING THEM TO ADDRESS AND MITIGATE THEM BEFORE THEY BECOME THREATS BY TESTING THE RESILIENCE OF OUR SYSTEMS. PEN TESTING PROVIDES VALUABLE INSIGHTS INTO HOW ADEQUATE OUR EXISTING SECURITY CONTROLS ARE, AND WHAT STEPS NEED TO BE TAKEN TO IMPROVE.
UM, WHY ARE PEN TESTS IMPORTANT? BECAUSE THEY IDENTIFY VULNERABILITIES, FIRST AND FOREMOST.
THEY MITIGATE RISKS, WHICH IS KIND OF THE BREAD AND BUTTER OF THE INSPECTOR GENERAL'S OFFICE.
THEY ENHANCE SECURITY POSTURES.
UM, THEY ENSURE COMPLIANCE AND REGULATORY ADHERENCE.
UM, AND THEY HAVE AN OVERALL POSITIVE NET EFFECT ON THE RESULTS UNDER WHICH THE PEN TEST WAS ISSUED IN THE FIRST PLACE.
SO, BLACK HATS ARE THE NEFARIOUS ACTORS TRYING TO CRASH IN AND TAKE ADVANTAGE OF WEAKNESSES IN THE SYSTEM.
PEN TEST ACTORS ARE THE WHITE HATS.
THEY'RE GONNA COME IN, THEY'RE GOING TO INTENTIONALLY TRY TO BREAK IN, AND WE WANT THEM TO, WE WANT THEM TO FIND WHERE THE WEAKNESSES ARE, AND THEN WE WANT OUR CSO TO GO IN BASED ON THOSE RESULTS AND CLOSE THOSE GAPS, OR REINFORCE ANY POTENTIAL WEAKNESSES THAT COULD ARISE FROM AN ATTACK.
AND FINALLY, TO CREATE AN EVEN STRONGER SYSTEM.
SO THAT, THAT IS, UM, THAT'S THE BASIS FOR THE REQUEST.
UH, THIS IS APPARENTLY, I'M TOLD THE FIRST TIME AN ADDENDUM HAS EVER BEEN WRITTEN.
SO WE INVENTED THE WHEEL, UH, ON THIS ADDENDUM.
UH, ASKING FOR A FOLLOW UP, UH, ASKING FOR AN AMENDMENT AND A FOLLOW UP REQUEST POST AN ANNUAL, A PLAN THAT HAS BEEN SUBMITTED AND APPROVED.
I, I DON'T, I HOPE I NEVER DO THIS AGAIN.
UH, BUT I, I THINK, UH, IN, IN, UM, IN THE CONDITIONS WE FIND OURSELVES IN RELATIVE TO TECHNOLOGY, THESE SHOULD PROBABLY BE DONE AT LEAST ANNUALLY.
ANNUALLY, WE SHOULD BE, UH, SECURING AND ENSURING OUR SYSTEMS ARE SECURE AND WE'RE NOT AT RISK OF BEING BREACHED BY, UH, THAT NEFARIOUS ACTOR I MENTIONED A MOMENT AGO.
SO, WITH THAT, ANY QUESTIONS ON MY REQUEST OR BRIEF? THANK YOU FOR THE, THE PRESENTATION.
UM, AUDIT PLANS, I THINK BY THEIR NATURE, ARE LIVING DOCUMENTS AND, AND THEY SHOULD CONTEMPLATE CHANGES.
AND SO I'M GRATEFUL THAT YOU'RE BRINGING ONE FORWARD.
UM, WHEN YOU TALK ABOUT THE QUADRANTS OF EFFECTIVENESS, WHERE WE CAN BE, THIS IS SORT OF THE UPPER RIGHT ONE, RIGHT? WE'RE, WE'RE PREVENTING SOMETHING, IT'S LIKE CHANGING A $50 BELT TO AVOID A $10,000 ENGINE REPLACEMENT.
I, I THINK THESE ARE SOMETHING THAT SHOULD BE INSTITUTIONALIZED.
ONE, ONE QUESTION FOR CLARIFICATION.
THIS IS, UM, I TAKE IT, THIS IS ADDITIONAL FUNDING ABOVE WHAT WAS APPROVED BECAUSE WE'RE HAVING AN OUTSIDE CONTRACTOR TO DO THIS.
WE'RE NOT REPROGRAMMING RESOURCES FROM WITHIN THE IG, UH, OFF OF ANOTHER PROJECT TO DO THIS WORK.
IS THAT ACCURATE? IT'S ADDITIONAL FUNDING, BUT IT'S ADDITIONAL FUNDING BECAUSE IT WASN'T PROJECTED IN, IN, UH, IN THE PLAN.
I, I WASN'T HERE, UH, UH, TO ASSESS THAT PLAN WHEN IT WENT OUT.
NOT THAT I WOULD'VE CAUGHT IT OUT OF, OUT OF HAND, BUT I, I, I HAVE SOME EXPERIENCE WITH THIS.
UH, SO, UH, THIS IS SOMETHING THAT WE WILL EXAMINE ANNUALLY, UH, WITH OUR PARTNERS, UH, IN THE DISTRICT.
I, I THINK IT'S AN EXTREMELY HIGH RISK AREA.
[00:40:01]
AND, AND IT'S MONEY WELL SPENT.AND I'LL, I'LL STEP BACK FROM THE POSITION OF BOC MEMBER AND SAY, JUST AS A LIFELONG TAXPAYER IN THE DISTRICT AND PRODUCT OF L-A-U-S-D AND NOW CONSUMER, AS A PARENT OF L-A-U-S-D, I AM VERY HEARTENED THAT THE DISTRICT WAS ABLE TO SOMEHOW FINAGLE SOMEONE WITH YOUR CREDENTIALS INTO THIS POSITION.
UH, I THINK YOU'RE GOING TO BRING TREMENDOUS VALUE TO THE DISTRICT AND ALL OF THE PEOPLE THAT ARE TRYING TO DO A GOOD JOB HERE.
UH, AND, AND I THINK THEY'RE GONNA BENEFIT TREMENDOUSLY FROM THE WORK THAT YOU AND YOUR TEAM DO.
I WAS GONNA SENSE THE BRO DEVELOPING HERE.
RESPECTFULLY THOUGH, BECAUSE OF YOUR, YOUR, BOTH, YOUR BACKGROUNDS, MR. SULLIVAN, UH, MR. ANO, I, I PRETTY MUCH ECHO AND ECHO WHAT VICE CHAIR CAMPBELL SAID.
UM, YOUR RESUME IS INCREDIBLY IMPRESSIVE AND WE'RE LUCKY TO HAVE YOU HERE.
UM, IN ALL HONESTY, I, UH, I FEEL WITH THE DEVELOPMENTS WE'RE HAVING WITH AI TECHNOLOGY AND HOW THAT'S PLAYING INTO THE EVER CHANGING LANDSCAPE OF CYBERSECURITY, THAT I AGREE WITH YOU A HUNDRED PERCENT A YEARLY ASSESSMENTS PROBABLY NEEDED.
UM, I GUESS MY QUESTION HERE IS, IS YOU MENTIONED THAT THERE WAS A PEN TEST CONDUCTED IN 2025, IS THAT CORRECT? THAT'S CORRECT.
AND WERE THERE ANY RESULTS FROM THAT THAT WERE, THAT PLAYED INTO WHY WE THINK THAT WE NEED TO NOW DO ANOTHER ONE FOLLOWING? OR IS, IS THERE ANY KINDA CORRELATION BETWEEN THE TWO? THERE'S NO CORRELATION BETWEEN THE TWO.
UH, AS YOU SAID, THERE'S A STRONG, THERE'S STRONG EVIDENCE THROUGHOUT THE INDUSTRY THAT PEN TESTS MORE LIKELY THAN NOT, SHOULD BE CONDUCTED ANNUALLY REGARDLESS OF WHAT WAS FOUND LAST YEAR.
AND THAT'S BECAUSE TECHNOLOGY CHANGES, SYSTEMS CHANGE SCRIPT AND CODE CHANGES.
AND THERE'S SOMEBODY OUT THERE WHO ACTUALLY JUST FOUND A WAY TO BREAK IN AND WE SHOULD TRY TO CURE THAT BEFORE IT'S A REALITY.
SO I, I GUESS MAYBE THE, THE ROOT OF MY QUESTION IS KIND OF, UH, THIS IS THE FIRST AMENDMENT I'VE SEEN.
I HAVEN'T BEEN HERE THAT LONG, BUT I GUESS YOU JUST SAID IT'S ONE OF THE FIRST THAT'S BEEN DONE.
UH, I GUESS I'M TRYING TO GET THROUGH WHY WAS THIS AMENDMENT PUT FORWARD? WAS THERE SOME SORT OF INCIDENT THAT OCCURRED, SOME SORT OF BREACH THAT'S BEEN DISCOVERED, OR IS THIS JUST YOU, YOU COMING IN AND BEING NEW AND SAYING, HEY, THIS IS MY RECOMMENDATION.
IS THERE, I'M JUST KINDA TRYING TO GET THROUGH RID OF THE CAUSE FOR THE AMENDMENT.
WHAT, WHAT LED TO IT? NO, THAT'S A BRILLIANT QUESTION.
UH, THIS IS ABOUT EVERY DAY IS A SUPER BOWL FOR OUR CISO.
EVERY DAY THEY HAVE TO WIN THAT GAME EVERY SINGLE DAY.
PEN TESTS ARE TOO EXPENSIVE AND ARE INADEQUATE IF THEY'RE NOT CONDUCTED PROPERLY.
SO THEY SHOULD BE LOOKING AT, WE SHOULD BE LOOKING AT THE APPROPRIATE VENDOR TO PERFORM THOSE SERVICES AND THOSE SERVICES AND ADD-ON SERVICES THEREAFTER.
THAT CAN BE DONE INTERNALLY, SHOULD BE ONGOING TO SECURE AND MAINTAIN THE SECURITY OF THE SYSTEM.
ONE HASN'T BEEN DONE SINCE 2025.
UM, WHEN I DISCUSSED THIS, UH, WITH ANOTHER PARTNER IN THE DISTRICT, WE AGREED THIS NEEDS TO BE DONE RIGHT AWAY.
WE ARE, WE, WE ARE ACTUALLY BEHIND THE CURVE HERE YET AGAIN.
UH, AND THOSE DISCUSSIONS ABOUT FUTURE PEN TESTS THAT WE, THAT I WOULD RECOMMEND SHOULD HAPPEN ANNUALLY, I THINK WILL BECOME A PART OF SOMEONE'S ANNUAL BUDGET MOVING FORWARD, WHERE AN ADDENDUM DOES NOT HAVE TO BE FILED, UH, TO OVERCOME THAT PROBLEM.
UM, JUST A CLARIFICATION QUESTION IN, IN MY MIND, HOW LONG DO THESE PEN TESTS TAKE TO CONDUCT? AND THEN ONCE YOU HAVE THE RESULTS, HOW LONG DOES IT TAKE TO ACTUALLY IMPLEMENT THE RECOMMENDATIONS? SO I DON'T KNOW THE LENGTH OF TIME FOR A PEN TEST.
MY EXPERIENCE WITH PEN TESTS TYPICALLY, UH, IS THEY ARE BETWEEN THREE AND NINE WEEKS.
UH, THEY CAN BE LONGER, DEPENDING UPON THE COMPLEXITY OF THE SYSTEM UNDER REVIEW AND THE EXAMINATION BEING CONDUCTED.
IF WE'RE ONLY LOOKING AT ONE DUMP TRUCK COULD BE A WEEK.
IF WE'RE LOOKING AT A FLEET OF DUMP TRUCKS, IT COULD BE SEVERAL WEEKS.
IF WE'RE LOOKING AT A FLEET THAT'S LOCATED NATIONWIDE IN DIFFERENT, IN IN DIFFERENT LOCATIONS, COULD TAKE A LITTLE BIT LONGER.
AS FOR WHEN THE REPORT COMES BACK, HOW LONG IT TAKES FOR US TO ACTUALLY ACT ON THAT? MY EXPERIENCE, I HAVE, I HAVEN'T HAD THAT EXPERIENCE HERE, BUT MY EXPERIENCE IS THOSE ACTIONS ARE AND MOST LIKELY SHOULD BE OCCURRING IMMEDIATELY.
DID IT HAPPEN IN 2022? I I THINK WE SAW THAT.
ANYTHING ELSE? OH, THAT WAS ALL.
AM I SUPPOSED TO INTRODUCE THE NEXT SPEAKER? YEAH.
I THOUGHT YOU WERE GONNA INTRODUCE YOUR TEAM.
SO JOINING ME TODAY IS AMY LONG JB, WHO PARTICIPATED AND CONDUCTED THE, UH, EVALUATION.
[00:45:01]
AND THEY WILL BE SPEAKING TO YOU ON THESE POINTS TODAY.THE VOTE RIGHT? WE DO NEED TO VOTE ON THE AMENDMENT FIRST.
WE APPROVE THE, UH, AMENDMENT REQUESTED.
SO A MOTION BY MEMBER CAMPBELL.
MR. POPE JOY, CAN YOU CALL, ROLL CALL? YES.
MEMBER, THIS IS THE VOTE ON AGENDA ITEM NUMBER THREE TO ADOPT THE RESOLUTION.
RECOMMENDING THE AMENDMENT TO THE FY 27 OIG WORK PLAN.
MR. HAMNER? AYE, THE RESOLUTION IS ADOPTED WITH 10 AFFIRMATIVE VOTES.
[4. Technical Evaluation of PCN3, Inc. and the Benjamin Franklin Senior High School Auditorium Seismic Retrofit Project (Information Only) ]
I APOLOGIZE.I THINK I GOT CAUGHT UP IN JUST THE CHARACTERS INVOLVED IN THE PRESENTATION.
I'M, I'M STILL, I'M STILL, UH, SYNTHESIZING ALL THAT.
SO THESE ARE TWO SEPARATE ITEMS. SO NOW WE HAVE ITEM NUMBER FOUR.
IF YOU DON'T MIND, I'LL GO AHEAD AND JUST MAKE THIS MORE FORMALIZED.
UH, ITEM NUMBER FOUR IS OUR TECHNICAL EVALUATION OF PCN THREE AND THE FRANKLIN HIGH SCHOOL AUDITORIUM SEISMIC RETROFIT PROJECT.
AND WITH THAT, I'D LIKE TO INTRODUCE MS. AMY LONG
UH, AND BY THE WAY, THIS IS A NON-VOTING ITEM, BUT AFTER PRESENTATION WE'LL SEE IF WE HAVE, I'M SURE WE WILL.
GOOD MORNING, COMMITTEE CHAIR HAMNER, VICE CHAIR CAMPBELL AND MEMBERS OF THE BOND OVERSIGHT COMMITTEE.
MY NAME IS AMY LONG, ASSISTANT INSPECTOR GENERAL OF SPECIAL SERVICES.
BEFORE I PRESENT THIS TECHNICAL EVALUATION, I WOULD LIKE TO GIVE A BRIEF OVERVIEW OF THE SPECIAL SERVICES UNIT.
CURRENTLY WITHIN THE OFFICE OF THE INSPECTOR GENERAL, THERE ARE THREE DIRECTORATES.
THERE'S, THERE'S AUDITS, INVESTIGATIONS, AND SPECIAL SERVICES.
THERE ARE FOUR AREAS OR, OR TEAMS, IF YOU WILL.
UH, DATA ANALYTICS, DUE DILIGENCE, SPECIAL REVIEWS, WHICH THE BOC HAS ALSO REQUESTED A PRESENTATION ON A SPECIAL REVIEWS PROJECT.
AND WE INTEND TO DO SO AT NEXT MONTH'S BOC MEETING ON OCTOBER 29TH.
AND LASTLY, UM, THE FOURTH SPECIAL SERVICES AREA IS TECHNICAL EVALUATIONS, WHICH IS WHY WE'RE HERE TODAY.
DOES IT CLICK OR NOT WORK? YES, PLEASE.
THIS IS OUR TECHNICAL EVALUATION OF PCN THREE AND THE AUDITORIUM SEISMIC RETROFIT PROJECT AT BENJAMIN FRANKLIN SENIOR HIGH SCHOOL.
A PROJECT THAT HAD AN ORIGINAL CONSTRUCTION CONTRACT VALUE AND DURATION OF APPROXIMATELY $6 MILLION AND 609 DAYS RESPECTIVELY.
THE OIG SELECTED THIS PROJECT FOR AN EVALUATION FOR MULTIPLE REASONS.
FIRST, PCN THREE HAD NOT YET BEEN EVALUATED BY OUR TECHNICAL EVALUATION TEAM.
SECOND, PCN THREE RECEIVED A LOW CONTRACTOR PERFORMANCE EVALUATION SCORE ON THIS PROJECT, 133 OUT OF A POSSIBLE 250 POINTS.
THIRD, ABOUT TWO YEARS AGO, THE OIG AUDIT UNIT COMPLETED AN INCURRED COST AUDIT ON THIS CONTRACT, AND AT THAT TIME FOUND A CHANGE, A CO, A CHANGE ORDER RATE OF 40%.
YOU'LL SOON HERE FROM OUR TECHNICAL EVALUATION MANAGER, MR. JB KIM, HOW THAT CHANGE ORDER RATE MORE THAN DOUBLED BY THE TIME THE PROJECT REACHED SUBSTANTIAL COMPLETION.
LASTLY, THIS WAS SELECTED BECAUSE OF ITS UNIQUENESS IN BEING A SEISMIC MODERNIZATION PROJECT.
THANKS FOR ALL TECHNICAL EVALUATIONS CONDUCTED BY THE OFFICE AND INSPECTOR GENERAL.
WE FOCUS ON THESE FIVE KEY AREAS.
UH, WE HOPE TO ADDRESS QUESTIONS SUCH AS, WAS THIS CONSTRUCTION PROJECT COMPLETED ON TIME? IF NOT, THEN HOW MANY DAYS WAS IT DELAYED AND WHY? WE ALSO TRY TO ANSWER QUESTIONS LIKE, WAS THE CONSTRUCTION PROJECT COMPLETED WITHIN BUDGET? IF NOT, THEN BY HOW MUCH DID EXCEED BUDGET AND DID THE CHANGE ORDERS HAVE MERIT? BEFORE I HAND THIS OVER TO MR. JB KIM TO GO OVER THE FINDINGS AND CONCLUSION OF THIS TECH EVALUATION, WE UNDERSTAND THAT FACILITY SERVICES DIVISION ALSO HAS AN OPPORTUNITY TO PRESENT ON THIS PROJECT.
[00:50:01]
IF WE HEAR ANY INFORMATION THAT'S INCONSISTENT WITH OUR TECHNICAL EVALUATION, WE WELCOME THE OPPORTUNITY TO RE-APPROACH THE PODIUM TO SPEAK.I WILL CONTINUE WITH THE RESULT OF OUR TECHNICAL EVALUATION.
UH, WE IDENTIFIED NINE, UH, FINDINGS, UH, FROM OUR EVALUATIONS, UH, FOR OUR FOUR, UH, FINDINGS, UH, CONCERNED A ONE YEAR PROJECT SCHEDULE DELAY AND A HIGH, UH, CHANGE RATE OVER 100% AND HIGH ERRORS AND REMISSION CHANGE RATE OVER 27%.
AND WE IDENTIFIED SIX QUESTION CHANGE ORDERS TOTAL TOTALING $88,000.
THE REMAINING FINDINGS ADDRESSED THE DEFECTIVE PVC UH, UH, MEMBRANE INSTALLATION AT THE AUDITORIUM ROOF.
WE ALSO IDENTIFIED PC THREE'S NON-COMPLIANCE WITH PROJECT MANAGEMENT STEPPING REQUIREMENT.
WE ALSO FOUND OUR PERFORMANCE GAPS IN PCN THREE'S, PROJECT MANAGEMENT AND ADMINISTRATIVE, UH, PRACTICES.
WE IDENTIFIED, UH, THE DISTRICT IN ADEQUATE, UH, OVERSIGHT AND PREPARATION OF FAIR COST ESTIMATE FOR OVER 2020 $5,000.
AND OUR LAST FINDING IS THE OMISSION OF OUR ROOF WORK, UH, FROM THE 10 MONTHS WARRANTY INSPECTION.
SO NOW THAT I PROVIDED AN OVERVIEW OF THE NINE FINDINGS, AND I'LL NOW, UH, WALK YOU THROUGH EACH FINDING IN DETAIL, STARTING WITH OUR FINDING.
NUMBER ONE, THE PROJECT APPROACH.
UH, THE PROJECT ACHIEVED SUBSTATION COMPLETION ONE YEAR AFTER THE ORIGINAL SUBSTATION COMPLETION DATE DUE TO MULTIPLE FACTORS, INCLUDING LATE STAGE AND USER REQUEST, ADDITIONAL FIELD CONDITION CHANGES AND INSUFFICIENT PCN THREE IS, UH, INSUFFICIENT LABOR FORCE.
SO OF THESE FACTORS, UH, THE SEVEN LATE STAGE END USER REQUEST HAD THE GREATEST IMPACT ON THE PROJECT SCHEDULE.
SO THAT, UH, SEVEN EORS TOTALED $1.67 MILLION, UH, REPRESENTING 27% OF THE ORIGINAL CONTRACT AMOUNT.
NOTABLY, THE SCHOOL PRINCIPAL, UH, SUBMITTED ALL THE SEVEN END USER REQUEST, UH, IN MAY, 2023, JUST A FEW MONTHS BEFORE THE PLANNED SUCCESSION COMPLETION DATE.
AND THE DISTRICT DID NOT FORMALLY ISSUE THE RELATED CHANGES UNTIL AUGUST, 2023.
THE SECOND FINDING IS THE HIGH CHANGE RATE OF OVER 100%.
SO IN OUR EVALUATION, WE NOTICED THAT A TOTAL OF 423 CHANGE ORDERS WERE ISSUED, UH, TOTALING APPROXIMATELY $6.1 MILLION.
THEY'RE PRESENTING 100.16% OF THE ORIGINAL CONTRACT AMOUNT.
SO THIS RATE IS SIGNIFICANTLY HIGHER THAN THE INDUSTRY AVERAGE.
CHANGE THE RATE OVER EIGHT TO 14% AS WELL AS THE DISTRICT OVERALL CHANGE THE RATE OF 13.25%.
SO AS YOU CAN SEE IN THIS PIE CHART, THE PRIMARY DRIVERS WERE, UH, UNFORESEEN CONDITIONS, 31% AND END USER SCOPE CHANGES 29% AND DESIGN DEFICIENCIES SPECIFICALLY ERROR AND OMISSIONS.
CAN I ASK YOU A QUESTION ON YES, JUST A CLARIFYING QUESTION IF YOU DON'T MIND.
VER OR CLARIFY FOR ME? OWNER INITIATED VERSUS END USER.
THE OWNER END USER IS REQUEST FROM THE SCHOOL PRINCIPAL.
YEAH, THAT'S END USERS AND OWNER WOULD BE FACILITIES OWNER IS LIKE THE FACILITIES AND OWNER'S REP.
SO DESIGN DEFICIENCIES ARE 27%, SO TOGETHER ACCOUNTING FOR 87% OF THE TOTAL CHANGE OF THE COST.
WE ALSO IDENTIFIED, UH, HIGH ERRORS IN OMISSION CHANGE OF THE RATE OVER 27%.
UH, IN OUR CHANGE OF THE REVIEW, WE IDENTIFIED 149 ERROR IN OMISSION CHANGE ORDERS TOTALING $1.65 MILLION.
THEY'RE PRESENTING 27% OF THE ORIGINAL CONTRACT AMOUNT.
THIS RATE IS ALSO SIGNIFICANTLY HIGHER THAN THE INDUSTRY NORM 5% FOR DESIGN PROFESSIONALS.
AS SHOWN IN THE AT, IN THE TABLE, THE LARGEST CONTRIBUTOR WAS OMISSION OR UNCLEAR IDENTIFICATION OF THE DEMOLITION AND REINSTALLATION WORK REQUIRED FOR A STRUCTURAL UPGRADE, UH, WHICH ACCOUNT FOR A 61%.
AND THE SECOND LARGEST CONTRIBUTOR WAS THE DESIGN DISCREPANCIES WITH THE ACTUAL FIELD CONDITIONS.
[00:55:01]
FINDING NUMBER FOUR, WE IDENTIFIED SIX QUESTION CHANGE ORDERS TOTALING $88,000.SO WE DETERMINED THAT THE FIRST FIVE CHANGE ORDERS SHOWN AT THE TOP OF THE TABLE LACK MERIT AND SHOULD BE VOIDED BECAUSE THEY ALREADY INCLUDED IN THE ORIGINAL CONTRACT OR DUPLICATED UNDER ANOTHER CHANGE ORDER.
WE ALSO PARTIALLY QUESTIONED ONE CHANGE ORDER T NINE, UH, UH, T NINE 10 BECAUSE THE CONTRACTOR, UH, CHARGED THE DISTRICT A FULL-TIME PROJECT ENGINEER.
HOWEVER, THE PROJECT RECORD SHOW THAT ONLY 25% OF PROJECT, UH, ENGINEER TIME WAS PROVIDED TO THE PROJECT.
SO FSD AGREED TO RECOVER THE FULL COST OF THE FIVE QUESTION CHANGE ORDERS AND ALSO OPENED NEGOTIATIONS WITH PCN THREE.
SO AS A RESULT, THE, THE DISTRICT RECOVERED, UH, $66,725 FROM PCN THREE.
UH, FINDING NUMBER FIVE ADDRESSED DEFECTIVE, UH, PVC, OUR MEMBRANE INSTALLATION ON THE ROOF.
SO DURING OUR SITE WIDGET, WE IDENTIFIED SEVERAL WORKMANSHIP, UH, DEFICIENCIES ON THE ROOF, PVC MEMBRANE INSTALLATION, UH, INCLUDING MULTIPLE BLISTERS WINERS BUBBLES AND NAIL PUNCTURE ON PROPER WALLS AND UNEVEN ROOF SURFACES.
SO IN RESPONSE TO OUR FINDINGS AND RECOMMENDATION, PCND REPAIRED THE ROOF, UH, THE NAIL PUNCTURES ON THE T WALLS AND THE LIFTED SHOOTING, THE REMAINING CONDITION WILL BE MONITORED, UH, DURING THE FIVE YEARS OF WARRANTY PERIOD.
IF, IF I CAN INTERRUPT YOU ONE MORE TIME READING THIS PART FROM ME, AND MAYBE IT'S BETTER, I CAN ASK FACILITIES THE QUESTION POSSIBLY TOO.
THERE WAS A RESOLUTION THAT, AND YOU CAN SEE THERE WAS ACTUALLY SOME REMEDIATION TO THE ROOF, RIGHT? HOW DO NAIL PENETRATIONS OCCUR? WAS THERE ANY DETERMINATION ON YOUR PART OF THE REVIEW THAT WHAT ACTIVITY OR SO FORTH OCCURRED THAT OCCURRED THAT ALLOWED THAT TO HAPPEN? SECONDLY, I THINK YOUR THIRD PICTURE IS VERY TELLING AS WELL, IS HOW DO YOU DETERMINE THE SUBSTRATE WHEN YOU DIDN'T TAKE THE MATERIAL OFF TO DETERMINE WHAT THE ISSUES ARE THAT COULD BE POSSIBLY CAUSING? AND AGAIN, I, I KNOW FACILITIES MAY HAVE SOME ANSWERS TO THIS, BUT I JUST THOUGHT MAYBE I'D CHECK WITH YOU FIRST.
IT'S VERY HARD TO DETERMINE WHY THAT HAPPENED, BUT BECAUSE THE ROOF MEMBRANE CONTRACT AND EXPAND, SO LOTS OF DEFICIENCIES CAN OCCUR, YOU KNOW, AFTER, LIKE SEVERAL MONTHS AFTER THE COMPLETION DATE.
OKAY, WE'LL, WE'LL LET FACILITIES POSSIBLY.
AND THE NEXT FINDING IS PC THREE'S NONCOMPLIANCE WITH FULL-TIME PROJECT MANAGEMENT STEPPING REQUIREMENT.
SO DURING THE COURSE OF CONSTRUCTION OF PCN THREE DID NOT CONSISTENTLY PROVIDE, UH, THE CONTRACT REQUIRED FULL-TIME PROJECT MANAGEMENT.
SO AS YOU CAN SEE, UH, IN THE TIMELINE, PCN THREE DID NOT PROVIDE, UH, PROJECT SUPERINTENDENT FOR THREE MONTHS AT THE BEGINNING OF A PROJECT.
AND THEY ALSO LACK A FULL-TIME ONSITE PROJECT ENGINEER FOR THE FIRST SIX MONTHS, AND AGAIN, FOR ABOUT ONE YEAR NEAR THE END OF A PROJECT.
AND IN ADDITION, THE PATIENT THREE, UH, ASSIGNED A NEW PROJECT SUPERINTENDENT WITHOUT THE DISTRICT REVIEW AND APPROVAL.
AND MOST IMPORTANTLY, THE P THREE'S REPLACEMENT PROJECT MANAGER, HE HAS VERY LIMITED ONSITE PRESENCE AND REDUCED EFFECTIVENESS.
SO OVERALL, THIS STEPPING GAP ADVERSELY AFFECTED, UH, PC THREE'S, UH, PERFORMANCE AND REQUIRED ADDITIONAL OVERSIGHT FROM THE DISTRICT.
NUMBER SEVEN, WE ALSO IDENTIFIED PERFORMANCE GAPS IN PC THREE'S, PROJECT MANAGEMENT AND ADMINISTRATIVE PRACTICES, WHICH INCLUDED, UH, INSUFFICIENT LABOR AND TRADE COORDINATION AND UNSUPERVISED SUBCONTRACTOR WORK.
AND THE LANDSCAPING CONTRACT WAS NOT INCLUDED IN THE SUBCONTRACT LISTING.
AND MOST IMPORTANTLY, PCN THREE SUBMITTED LATE OR INCOMPLETE CHANGE OF THE PROPOSAL RESULTING IN 84 UNILATERAL CHANGE ORDERS ISSUED BY THE DISTRICT.
SO THIS LATE AND INCOMPLETE CHANGE OF THE PROPOSAL DELAYED THE CHANGE OF THE PROCESS AND REQUIRED, UH, FSDS REPEATED REVIEW AND REQUIRED, ALSO REQUIRED, UH, ADDITIONAL WORK, UH, ADMINISTRATIVE WORKLOAD, UH, FOR THE DISTRICT.
IN ADDITION, PC THREE UH, SUBMITTED TWO OF THE THREE REQUIRED, UH, SAFETY INSTRUMENT REPORT TWO DAYS LATE,
[01:00:02]
UH, FINDING NUMBER EIGHT, UH, A DISTRICT IN ADEQUATE OVERSIGHT AND PREPARATION OF A FAIR COST ESTIMATE FOR EXCEEDING $25,000.SO UNDER DISTRICT POLICY, UH, FC IS FOR OVER $50,000 MUST BE PREPARED BY A P ESTIMATOR OR THE ESTIMATING UNIT FULL AMOUNT BETWEEN 25 TO $50,000.
THE SAME RESOURCES ARE RECOMMENDED OR A QUALIFIED OAR MAY PREPARE A FAIR COST ESTIMATE WITH UPPER MANAGEMENT APPROVAL.
HOWEVER, DURING OUR EVALUATION, WE NOTICED THAT, UH, THE ASSOCIATE PROJECT ENGINEER WITH THE PROJECT OR SUPPORT STEP PREPARED 23 FAIR COST ESTIMATE WITHIN THAT RANGE FROM 25 TO 50 K.
UH, AND ALSO IN ADDITION, WE NOTICED THAT, UH, 16 OF THOSE, UH, WERE WITHIN PLUS MINUS 5% OF THE CONTRACTORS, UH, COP INCLUDING SEVEN WITHIN PLUS MINUS 1% OF CONTRACTOR PROPOSAL.
AND NOTABLY THREE, UH, FAIR COST ESTIMATE WERE ALMOST IDENTICAL, UH, TO, UH, THE CONTEXT COST PROPOSAL IN TERMS OF THE COST AND ALSO DETAILED LINE ITEMS. SO THIS CLOSE ALIGNMENT, UH, COMBINED WITH THE ABSENCE OF A STANDARDIZED COST ESTIMATING METHOD RAISE CONCERN ABOUT THE INDEPENDENCE OF A FAIR COST ESTIMATE AND WEAKENED THE DISTRICT, UH, DISTRICT COST CONTROL OVER CHANGE ORDERS AS REFLECTED IN THE SIX QUESTION CHANGE ORDERS WE IDENTIFIED.
OUR FINAL FINDING IS REGARDING GROUP WORK WAS NOT, NOT INCLUDED IN THE 10 MONTH WARRANTY INSPECTION.
THE INSPECTION TEAM PERFORMED A WARRANTY INSPECTION IN AUGUST, 2025.
HOWEVER, THE ROOF WORK WAS NOT INCLUDED IN THE WARRANTY INSPECTION BECAUSE THE REPLACEMENT IOR WAS ASSIGNED AFTER THE SUCCESSION COMPLETION DID NOT HAVE THE FULL UNDERSTANDING OF THE PROJECT SCOPE AND JUST RELY ON THE SCHOOL'S PLAN MANAGER WHEN VERIFY THE SCOPE.
SO AFTER WE FIND, AFTER WE FOUND, UH, THE ROOF MEMBRANE ISSUES, OUR ROOF INSPECTION WAS PERFORMED BY THE IOR AND THE ROOFING SPECIAL INSPECTOR AND THE ROOM, THE ROOF MEMBRANE ISSUES WERE ADDED TO THE COLLECTIVE LIST.
SO A COMPLETE WARRANTY INSPECTION IS CRUCIAL TO IDENTIFY, UH, POST-CONSTRUCTION DEFICIENCIES AND, UH, PREVENT FUTURE REPAIR COST TO THE DISTRICT.
SO IN CONCLUSION, THE PROJECT DELIVERED THE REQUIRED SEIC UPGRADE, UH, TO THE AUDITORIUM BUILDING.
HOWEVER, UH, THIS ONE YEAR DELAY AND COST ANCE WITH HIGH CHANGE RATE AND QUALITY CONCERN WITH ROOT MEMBRANE DEFICIENCIES, DEFICIENCIES AND CONTRACT PERFORMANCE ISSUE AND DISTRICT OVERSIGHT OVERSIGHT GAP REDUCED THE OVERALL EFFECTIVENESS OF THE PROJECT.
REGARDING OUR STAKEHOLDER RESPONSES, BOTH FACILITIES AND PCN THREE HAD AN OPPORTUNITY TO REVIEW AND RESPOND TO OUR TECHNICAL EVA REPORT.
AND FSD AGREED OR GENERALLY, GENERALLY AGREED WITH MULTIPLE FINDINGS AND RECOMMENDATION AND, UH, REPORTED COLLECTIVE ACTIONS, WHICH INCLUDE CREDIT REPAIRED, UH, ENHANCED REVIEWS AND PROCEDURE UPDATE.
PCN THREE DISAGREE WITH PORTIONS OF SEVERAL FINDINGS RECOMMENDATION, BUT STATE THAT, UH, THEY, THEY WOULD MEET, UH, THE CONTRACTUAL AND WARRANTY OBLIGATION.
SO AFTER WE REVIEW THE PCN THREE'S RESPONSE, WE RETAINED, UH, OUR REPORT CONCLUSION BECAUSE PC N THREE DID NOT, NOT PROVIDE, UH, SUFFICIENT EVIDENCE TO SUPPORT ITS DIS DISAGREEMENT.
SO THIS CONCLUDE, UH, OUR PRESENTATION.
THANK YOU FOR YOUR TIME AND YOUR ATTENTION.
YOU KNOW, I'M CONSIDERING, I DON'T KNOW HOW THE REST OF THE BOARD FEELS.
DO YOU WANT TO, UM, HEAR FROM FACILITIES FIRST BEFORE WE GET INTO THE WEEDS OF QUESTIONS, IF THAT'S FAIR, PLEASE.
UH, AND FOR CONTEXT OF HOW I LOOK AT, UH, THE, THIS AND ALL OF OUR PROJECTS, I'M AN ARCHITECT.
ACTUALLY, I HAVE A RETIRED LICENSE NOW, AND I'VE ALSO BEEN A CONSTRUCTION MANAGER HERE AT THE DISTRICT.
I CAME IN AS AN OWNER'S AUTHORIZED REPRESENTATIVE AND, UH, OVERSAW DESIGN THROUGH ASSET MANAGEMENT AND NOW OVERSEE ALL OF FACILITIES.
OF COURSE, I REPORT TO CHRISTINA TOS, WHO REALLY
[01:05:01]
OVERSEES ALL OF, BUT ON A DAY-TO-DAY BASIS, THAT'S WHAT I DO.SO I'M GONNA WALK THROUGH THIS AND, UM, WE'LL ANSWER A LOT OF QUESTIONS.
SO IS THIS NOT WORKING? MAYBE I'M NOT POINTING AT THE RIGHT THING.
IS THIS WORKING HERE? GO AHEAD.
SO IS THIS WORKING? THEY'RE BOTH WORKING.
[5. Response to: Technical Evaluation of PCN3, Inc. and the Benjamin Franklin Senior High School Auditorium Seismic Retrofit Project (information Only) ]
SO NOTE THE PHOTOS, UH, ONE IS COMPLETE AND ONE IS DURING CONSTRUCTION.SO THIS PROJECT, UM, WAS APPROVED TO ADDRESS THE SEISMIC VULNERABILITIES.
AS YOU KNOW, WE'VE TALKED TO YOU BEFORE.
UH, THIS PROJECT, THIS BUILDING WAS ON THE AB 300 LIST, AND WE'VE DISCUSSED RECENTLY WITH YOU OUR LIFT SLABS.
THE AB 300 LIST DOES NOT TELL YOU WHAT TO DO.
THE AB 300 LISTS SAYS THAT THE DISTRICT MUST STUDY THE VULNERABILITIES OF EACH OF THE BUILDINGS.
AND, UH, WE'VE ADDED THIS LIFT SLAB BUILDINGS TO, UH, THE WORK WE NEED TO UNDERTAKE.
SO, THE CHALLENGES IN THIS BUILDING START WITH THE FACT THAT IT WAS BUILT IN 1924.
IT'S A GREAT EXAMPLE OF CHALLENGES, AND I SHOULD NOTE THAT WE ARE NOT DOING THIS KIND OF WORK ANYMORE, AND THAT'S BECAUSE CODES HAVE CHANGED, AND I'LL TALK ABOUT THAT.
YOU'LL ALSO NOTE IN THE THIRD BULLET THAT THIS BUILDING WAS, THERE WERE IMPROVEMENTS MADE STRUCTURALLY TO THE BUILDING IN 1968 OF SIGNIFICANCES, THAT SYLMAR EARTHQUAKE IN 1971.
AND THEN OF COURSE, THE SUBSEQUENT EARTHQUAKE IN 1994 BOTH CHANGED THE CODES DRAMATICALLY.
SO THE FACT THAT SOMEONE STRENGTHENED THIS IN 1968, THOSE WE, WE CALL THEM, UH, PRE-MODERN CODES AND MODERN CHANGES EVERY TIME YOU HAVE AN EARTHQUAKE.
AND THE OTHER CHALLENGE IS WHEN YOU HAVE A HUNDRED YEAR OLD BUILDING, PEOPLE HAVE DONE WORK THROUGH IT ALL THE TIME.
YOUR AS-BUILTS ARE NOT NECESSARILY COMPLETE OR RELIABLE.
AND YOU'VE PROBABLY HEARD THAT FROM US BEFORE TOO, OF SIGNIFICANCE IN THESE FIVE OR SIX SLIDES IS, I'M NOT REALLY GONNA ADDRESS EACH OF THESE ON THESE SLIDES BECAUSE I'M GONNA TALK TO THEM INDIVIDUALLY.
WHAT'S IMPORTANT HERE IS WE REALLY DO NOT FUNDAMENTALLY AGREE WITH THE FINDINGS AND RECOMMENDATIONS.
THOSE ARE, THERE'S, THERE'S ONE THING WE QUIBBLED ON INTERNALLY.
I FIND IT KIND OF HUMOROUS LOOKING AT IT, AND I'LL TALK TO YOU ABOUT THAT.
THE OTHER THING IS, ON THE RIGHT HAND, UH, SIDE OF EACH OF THESE, YOU'LL SEE EITHER WE'VE COMPLETED OR IT'S AN ONGOING TASK THAT WE HAVE TO DO, OR, UH, WE'RE BRINGING SOMETHING LIKE HERE, ERRORS AND EMISSIONS.
UM, WE HAVE A, UH, LESSONS LEARNED THAT WE'RE SUPPOSED TO COMPLETE THIS QUARTER.
AND AS A MATTER OF FACT, UM, IN OCTOBER, THE WEEK OF THE 19TH OR THE FOLLOWING WEEK, UH, WE'LL BE, UH, UTILIZING THAT, UM, THOSE LESSONS TO SHARE ACTUALLY WITH A DIFFERENT KIND OF PROJECT, WHICH ARE THE LARGE HVAC PROJECTS.
AND WE'LL BE DOING, UM, TAKING LESSONS LEARNED FROM THIS AND SHARING IT THERE.
SO YOU CAN SEE ALMOST EVERYTHING'S COMPLETED OR ONGOING.
SO WHAT IS, UM, UNUSUAL ABOUT THE PROJECT IS THE AMOUNT OF CHANGE, WHICH WE DO NOT SEE THIS.
SO LET'S, WHAT WAS ALSO CONCERNING TO ME WAS LIKE YOU REALLY LITERALLY HAD ONE THIRD ERRORS IN EMISSIONS AND ONE THIRD UNFORESEEN
[01:10:01]
AND ONE THIRD END USER.UM, AND, AND I DON'T MIND DISCUSSING END USER AND WHETHER OR NOT THE PRINCIPAL OR SOMEONE ON THE TEAM SAYS, WE SHOULD REDO THIS.
SO, UNFORESEENS, BESIDES A 1924 BUILDING, THE TWO STORMS, UM, IN 2022 AND THE HURRICANE IN 2023 BOTH DAMAGED THE EXISTING BUILDING.
AND WE HAD WATER THROUGHOUT THIS BUILDING FROM TOP TO BOTTOM.
AND SO WE ALSO LOST THE CEILING PANELS, QUITE A BIT OF DAMAGE IN THE AUDITORIUM AND ELSEWHERE.
THERE WAS A LOT OF WORK IN THE RESTROOMS. UH, IF YOU LOOKED AT, UH, THE DETAILS, THERE'S A LOT OF WORK IN THE BOYS RESTROOMS. UM, WE HAD TO REPAINT AND REFINISH.
AND SO THERE WAS A LOT OF WORK THAT CAME OUT OF THOSE STORMS. AND THEN WHEN THOSE STORM, THAT WORK GETS DOCUMENTED AND GIVEN, UH, TO THE CONTRACTOR, SOMETIMES THERE'S MORE UNFORESEEN AND MORE ERRORS IN EMISSIONS.
IT'S KIND OF LIKE A UNFORTUNATE RIPPLE EFFECT.
I THINK THE SIGNIFICANT THING IS OF THE 366 DAYS, 241 OF THEM WERE COMPENSABLE JUST BECAUSE OF THE STORMS. IN OTHER WORDS, THEY JUST ELONGATED THE PROJECT.
UM, WE REP, WE ALWAYS HAD SOME ROOFING IN THE PROJECT.
WE ALWAYS HAD SOME CEILING TILE WORK, BUT BECAUSE OF THE RAIN, WE HAD MUCH MORE EXTENSIVE WORK AND REPLACED THE ROOFS AT THE TOP ABOVE THE AUDITORIUM.
AND THE LOWER ROOFS ALSO REGARDING THE FLOORING REPLACEMENT.
UH, YOU KNOW, WE, I THINK WE NOW HAVE ONLY AN END USER REQUEST.
I THINK WE ONLY HAVE ONE FORM.
AND THAT'S BECAUSE THE GENERATION OF WHETHER OR NOT THE PRINCIPAL OR SOMEONE AT THE, UH, SCHOOL SITE ASKS FOR SOMETHING, WE DOCUMENT IN THE END USER REQUEST.
'CAUSE THE M AND O IS AN END USER ALSO.
AND SOMETIMES THEY THINK ABOUT THEIR THINGS DIFFERENTLY.
UM, BUT AS WORK NEAR COMPLETION, THE WORK IN THE FLOOR, THE WORK OF THE FLOORING AND THE LOBBY WAS ADDED.
UM, AND YOU'LL, YOU'LL ALSO SEE THE, UH, AISLE LIGHTING AND THE AUDITORIUM WAS ADDED.
SO IN TERMS OF, UM, HOW DO WE DO A BETTER JOB? IT STARTS WITH THE SCOPING.
HOW DO WE SCOPE THE PROJECT? SO THAT'S WHERE I THINK WE REALLY HAVE FOCUSED IN THE LAST FEW YEARS, LEARNING SINCE 2012 AND 13, ON ALL OF THESE LARGE COMPREHENSIVE PROJECTS, MOST OF WHICH HAVE MULTIPLE BUILDINGS WE EITHER REPLACED OR RETROFITTED BECAUSE THEY WERE HISTORIC.
ONE OF THE THINGS THAT'S IMPORTANT TO UNDERSTAND IS THE WAY CRITICAL REPLACEMENT PROJECTS WERE CONCEIVED OF THIS, THE MIDDLE OF THE SLIDE IS, I HAVE TO REPLACE A SYSTEM, AN HVAC SYSTEM, OR IN THIS CASE, UH, I HAVE A SEISMIC PROJECT.
AND WHEN YOU DON'T HAVE ENOUGH MONEY TO REPAIR AND YOU'RE RELYING ON THE BOND, YOU'RE TRYING TO USE EVERY DOLLAR, UM, EFFICIENTLY.
SO THE MINDSET WAS, I'M GOING OUT TO DO HVAC, I'M GOING OUT TO DO SEISMIC.
AND IN REALITY, SEISMIC WORK STARTS TOUCHING OTHER THINGS.
AND YOU CAN SEE THAT IN THIS PROJECT.
WE DON'T APPROACH THOSE PROJECTS THAT WAY.
IN FACT, UM, PROJECTS GENERALLY OVER 5 MILLION OR SEISMIC PROJECTS OR THIS TYPE OF COMPLEX PROJECTS NOW ARE NOT WITHIN THE M AND O AE SERVICES, BUT ARE OVERSEEN BY ASSET MANAGEMENT.
AND THEY'VE BEEN DOING THOSE LARGE PROJECTS THAT YOU'VE SEEN FOR YEARS.
AND THAT'S IMPORTANT TO UNDERSTAND.
I THINK IN THE INITIAL SCOPING, THEY PRO THE, THE, THE, THE OUTLOOK SHOULD HAVE BEEN EXPANDED ON WHAT ARE WE REALLY GONNA TOUCH? AND THAT'S WHY YOU HAVE EITHER UNFORESEEN OR ERRORS IN EMISSIONS ALONG THE WAY.
I THINK THE OTHER THING IS, UM, DUE DILIGENCE.
AND I THINK I HAVE A BETTER SLIDE ON THAT, THE NEXT ONE.
SO UNDER THE COMPREHENSIVE MODERNIZATION AND THE LARGER PROJECTS YOU'VE SEEN, WE INCLUDED UNDER THOSE PROJECTS A SIGNIFICANT AMOUNT OF PRE-WORK AND SITE INVESTIGATION.
NOT JUST BY INTERNAL RESOURCES, BUT BY THE ARCHITECTS AND ENGINEERS.
WE WERE HIRING TO GO OUT AND FIND OUT WHAT, WHAT CAN WE FIND OUT ABOUT WHAT'S REALLY OUT THERE AS MUCH AS WE COULD.
NOW WE'VE EVEN EXPANDED THAT OVER THE LAST FEW YEARS TO DO EVEN MORE.
[01:15:01]
THE OTHER THING IS WE DIDN'T USE DESTRUCTIVE TESTING.SO DESTRUCTIVE TESTING IS GOING INTO AN EXISTING BUILDING AND SAYING, WELL, I BETTER SEE WHAT'S REALLY BEHIND THAT WALL, OR I REALLY WANNA LOOK AT THIS COLUMN HERE.
WHAT'S WHAT'S BEHIND THERE? RIGHT? SO WE DIDN'T DO ANY OF THAT FOR A LONG TIME UNTIL RECENTLY BECAUSE SOMETIMES YOU END UP IMPACTING CLASSROOMS OR MULTIPLE CLASSROOMS AND THEN YOU CAN'T USE THEM BECAUSE YOU MIGHT HAVE A HAZARDOUS MATERIAL.
UM, NOW WE TRY VERY, VERY IMPORTANTLY TO WEIGH HOW MUCH DESTRUCTIVE TESTING MIGHT WE USE ON EACH INDIVIDUAL PROJECT.
AND SINCE WE'RE DEALING WITH BUILDINGS FROM A HUNDRED YEARS AGO TO 70 YEARS AGO TO 1980, THEY'RE ALL BUILT A LITTLE DIFFERENTLY, BUT THEY'RE, THEY'RE NOT THAT DIFFERENT.
SO WE CAN REALLY KIND OF BALANCE WITH THE, WITH THE BACKLOG OF HOW MANY PROJECTS.
I DON'T KNOW IF YOU KNOW, BUT IN THE BOND PROGRAM, SINCE ITS INCEPTION, THERE ARE 24,000 PROJECTS.
AND ALMOST EVERY YEAR WE'RE MANAGING ABOUT 300 PROJECTS AT A TIME, ROLLING THROUGH.
SO WE'VE LEARNED A LOT ABOUT DIFFERENT, UM, APPROACHES TO BUILDING OVER THE YEARS.
SO WE DO USE, IT TOOK DESTRUCTIVE TESTING, WE'RE CAREFUL HOW WE USE IT.
AND AS YOU CAN IMAGINE ON A 1924 BUILDING, YOU COULD DO A LOT OF DESTRUCTIVE TESTING AND STILL NOT UNDER UNDERCUT.
SEE EVERYTHING YOU NEED TO SEE.
SO YOU'RE ALWAYS GONNA HAVE SOME UNFORESEENS.
SO THE 5% IS, I THINK I BETCHA HAVING WORKED ALMOST 50 YEARS.
I THINK THAT 5% WAS THE RULE OF THUMB WE USED BACK THEN WHEN I STARTED WORKING.
RIGHT? AND AS AN ARCHITECT, I USED TO HAVE TO ALWAYS EXAMINE, YOU KNOW, AS, AS, AS A LEADING A TEAM, DID WE EVER CROSS 5%? SO I'VE GONE THROUGH THAT AND THERE'S NO WAY, AND THIS IS THE QUIBBLING PART,
SO INTERNALLY WE HAD THAT CONVERSATION AND JB AND I HAVE HAD THAT CONVERSATION ON OTHER PROJECTS.
THE PROJECT EXECUTION TEAM, THE TEAM THAT'S MANAGING THE CONSTRUCTION JUST DETERMINES IS IT AN ERROR IN OMISSION OR WHAT IS THE ROOT CAUSE OF THIS CHANGE? AND INTERNALLY, WE OFTEN DEBATE, SOMETIMES OUR ARCHITECTS HAVE NO IDEA THAT WE'VE MARKED THINGS, ERRORS AND EMISSIONS.
I THINK THE IMPORTANT THING HERE IS WE ARE HAVING THIS DISCUSSION INTERNALLY, AND IT'S LIKE, YOU'RE NOT GETTING 5%.
IF WE ARGUED ABOUT IT, MAYBE IT GOES DOWN TO 26%.
IF YOU LOOK AT THIS STUDY, UM, JB AND HIS VERY THOROUGH TERM ACTUALLY LOOKED AT THE CLASSIFICATION OF EVERY SINGLE, UM, CHANGE ORDER.
AND IN SOME CASES SAID, WELL, THAT REALLY SHOULD HAVE BEEN AN UNFORESEEN INSTEAD OF, YOU KNOW, E AND O AND, AND VICE VERSA.
BUT MORE IMPORTANTLY IS YOU SHOULDN'T HAVE 27% CHANGE ORDERS.
UM, JAMES HEIMER WAS THE ARCHITECT.
HE SOLD IT TO T AND I, UM, THEY ARE NOT CURRENTLY DOING WORKING WORK WITH US.
AND I AM FAMILIAR WITH THAT FIRM BECAUSE I HAD A DIFFERENT ROLE, UM, OVERSEEING ASSET MANAGEMENT.
AND I THINK AT THIS TIME, THIS WAS WHEN HE WAS SELLING THE PRACTICE AND LOT SOME STAFF, I DIDN'T GO BACK, SO I AM SPECULATING IT'S NOT A FACT.
BUT, UH, IF I WAS A BETTING PERSON, I'D PUT A DIME ON THAT
SO ERRORS IN REMISSIONS ARE WHEN THE ARCHITECT AND OR THE ENGINEERS MAKE A MISTAKE THAT IS A GENUINE MISTAKE, THAT UNDER THEIR LICENSES AND UNDER THEIR PRACTICES, THEY SHOULD HAVE KNOWN BETTER.
AND THAT'S HUMAN ERROR IS HUMAN ERROR.
AND NOT EVERYONE KNOWS EVERYTHING.
SO 5% IS THE NUMBER YOU USE TO MEASURE WHETHER OR NOT THEY DID AN ADEQUATE JOB.
THAT'S REALLY ONE WAY TO MEASURE THEIR, WHETHER OR NOT THEY DID AN ADEQUATE JOB.
SO WE CONTINUE INTERNALLY TO TRAIN OUR PROJECT EXECUTION TEAM MEMBERS OR O ABOUT HOW TO LOOK AT, UH, CHANGES.
THEY DON'T USUALLY COME, MANY OF THEM DON'T COME WITH AN ARCHITECTURE BACKGROUND.
SOME OF THEM COME WITH AN ENGINEERING BACKGROUND.
AND WE DO INTERNALLY DISCUSS, YOU KNOW, IF IT'S
[01:20:01]
A BIG E AND O, WHAT SHOULD WE DO WITH IT? SHOULD WE GO AND BACK AND TALK TO THE ARCHITECT? SHOULD WE GO BACK AND NOT TALK TO THE ARCHITECT, TALK TO THE DESIGN MANAGER? SO THAT IS AN ONGOING CONVERSATION.DO WE, DO WE GET THAT RIGHT? IN THIS CASE, THERE'S NO RIGHT.
WHAT'S THE DIFFERENCE BETWEEN 27 AND 24%? IT'S TOO MANY ERRORS IN EMISSIONS CHANGE ORDER MANAGEMENT.
UM, THERE'S NOT A LOT TO TALK ABOUT HERE.
UH, IN THE END, UM, THE OVERPAYMENT WAS REDUCED TO 42,000.
UH, WE WORKED CLOSELY, OUR TEAM WORKED CLOSELY, UM, WITH JB AND HIS TEAM CAME TO CONCLUSIONS REDUCED THAT AMOUNT.
AND, UM, THOSE, THOSE MONIES HAVE BEEN BROUGHT BACK TO THE DISTRICT IN TERMS OF, UM, CHANGE ORDER, MERIT AND CHANGE ORDER REVIEW.
UM, WE TRANSLATE THESE TYPES OF FINDINGS INTO, TO RETRAINING AND TRAINING.
AND THE BRANCH DIRECTOR, I THINK SHOULD REALLY KNOW WHEN YOU HAVE CHANGES.
THEY, WE DO HAVE COST ESTIMATORS, UH, THAT WE HIRE WHO DO INDEPENDENT WITHIN THE DISTRICT FOR THE OAR IF THEY'RE OVER THE 25 AND 50,000.
UH, WE RIGHT NOW HAVE FOUR DIFFERENT FIRMS PROVIDING, UM, UNDER THE BOND, UH, COST ESTIMATING, UH, SUPPORT BECAUSE OF COURSE WE HAVE A LOT OF PROJECTS AND THEY ALL HAVE SOME CHANGES.
THE BRANCH DIRECTORS, UM, THE REGIONAL DIRECTORS AND THE BRANCH DIRECTORS ALSO LOOK AT, UH, CHANGES AS THEY COME THROUGH THE SYSTEM.
THE BRANCH DIRECTOR, THE HEAD OF PROJECT EXECUTION LOOKS AT ALL OF THEM AS THEY GO TO THE BOARD FOR RATIFICATION.
SO THEY ARE LOOKED AT AT VARIOUS STAGES.
AND IN THIS CASE OF THE AUDIT, THEY WERE LOOKED AT VERY CLOSELY.
AND THAT'S HOW THEY GENERATE LESSONS LEARNED.
UM, I DON'T THINK THERE'S A LOT TO DEBATE ABOUT THE CONTRACTOR PERFORMANCE.
I THINK THE QUESTION IS WHAT DO WE DO WHEN WE HAVE CONTRACTOR PERFORMANCE ISSUES THERE? THERE'S A LOT OF WORK IN THIS TOWN.
IS THERE ENOUGH TALENT ACROSS THE BOARD TO DO ALL OF THIS WORK? THERE ARE SHORTCOMINGS WITHIN ARCHITECTS, THE NUMBER OF ARCHITECTS, THE NUMBER OF ENGINEERS.
I MEAN, THAT'S JUST THE REALITY.
THERE'S SO MUCH WORK IN LOS ANGELES.
UM, TALENTED FOLKS ARE WORTH EVERYTHING.
AND, YOU KNOW, WE WATCH WITHIN WHAT'S GOING ON, HOW FOLKS MOVE WITHIN AE FIRMS AND WITHIN CONTRACTOR FIRMS. WE KNOW OUR FOLKS WELL, WE KNOW THE ARCHITECTS THAT WORK WITH US.
SO WHAT DO WE DO WHEN WE HAVE AN ISSUE? SO IT AGAIN, GOES THROUGH THE ESCALATION I'M TALKING ABOUT RIGHT NOW, THE CONTRACTORS.
CAN THE OAR GET THE MESSAGE ACROSS? CAN HE PAPER IT? DOES HE HAVE TO ELEVATE IT? I CAN TELL YOU RIGHT NOW, OUR BRANCH DIRECTOR IS REALLY QUITE INVOLVED.
DO YOU HAVE ENOUGH PEOPLE ON THE JOB? DO YOU HAVE ENOUGH LABOR? ARE YOU MANAGING YOUR SUBS PROPERLY? ARE YOU EFFICIENT? UM, THERE'S MORE THAN ONE PROJECT THAT THERE'S QUITE A BIT OF TIME SPENT ON THAT DIALOGUE.
AGAIN, IT GOES BACK TO TALENT CAPABILITY, BUT WE DO ACTIVELY WORK ON THAT.
AND HONESTLY, THAT HAPPENS WITH THE ARCHITECTS TOO.
SO THE ARCHITECTS KNOW WHEN I'VE HAD ENOUGH COMPLAINTS AND ALEX WANTS TO HAVE A MEETING, THAT'S NOT GOOD.
SO WE ARE ACTIVELY MONITORING HOW OUR MANY VENDORS, CONTRACTORS AND PROFESSIONAL DESIGN, PROFESSIONAL PROFESSIONAL DESIGN FIRMS WORK WITH US.
AND WHETHER OR NOT THEY GIVE US GOOD SERVICE, WE TALK TO EACH OTHER.
WE ARE WHITE, VERY WELL AWARE OF WHO'S DOING WELL AND WHO HAS TALENT ON WHICH TEAM.
AND I'LL TELL YOU THE OTHER THING, DESIGN BID BUILD VERSUS DESIGN BUILD DOES BURDEN AN OWNER MORE THAN DESIGN BUILD MUCH OF THE RESPONSIBILITY TO MANAGE THE OVERALL PRODUCT UNDER A DESIGN BUILD CONTRACT
[01:25:01]
FALLS WITHIN THE CONTRACTOR'S RESPONSIBILITY.AND, AND YOU KNOW, MANY FOLKS SEE THAT AS US PASSING ON RISK, YES, WE ARE PASSING ON SOME RISK, BUT WE STILL RETAIN RISK AS AN OWNER.
AS A MATTER OF FACT, THE BIGGEST RE RISK THAT DESIGN BUILDER BUILDERS TAKE ON IS THEY TAKE ON THE DSA RISK AND THEY TAKE ON THE UTILITY RISK BECAUSE IT'S NOW ON THEM TO DO ALL THE COORDINATION UNDER A DESIGN BID BUILD.
IF L-A-D-W-P IS SLOW OR DSA IS SLOW, AND I'M, I'M NOT CRITICIZING ANYONE, I'M SAYING IF THEY ARE NOT WITHIN THEIR MARGINS OF EXPECTATION, THAT'S ON THE OWNER TO PAY FOR THAT, THAT THEIR OUR BURDEN.
SO
IT WAS A CURIOUS THING THAT, UM, THE INSPECTOR TALKED TO A PLANT MANAGER WHO DIDN'T KNOW THERE WAS ROOFING.
SO WHAT DID WE DO ABOUT IT? WELL, WE DID GO BACK AND MAKE REPAIRS AND, UM, THERE WERE NO LEAKS IN THIS BIG RAIN.
UM, AND IT IS STILL UNDER WARRANTY.
SO WE WILL WATCH IT CAREFULLY THROUGH THIS EL NINO YEAR.
SO THIS SAYS, LOOKING AHEAD AND I, WE'VE, WELL, IN MANY FORMS I TALKED ABOUT THIS.
WE'VE UPDATED OUR SPECIFICATIONS.
WE'RE ALWAYS UPDATING POLICIES AND PROCEDURES.
OUR METRIC METRICS MONITORING IS VERY DETAILED.
UM, BUT I WANTED TO REALLY TALK ABOUT HOW AUDITS AND THESE EVALUATIONS HELP US AND WHAT DO WE DO WITH THEM ASIDE FROM, YOU KNOW, OCCASIONALLY COMING TO TALK TO YOU ABOUT THEM.
EVERY SINGLE ONE OF THESE COMES THROUGH MY OFFICE.
EVERY SINGLE ONE OF THESE, I REVIEW THE FINDINGS.
EVERY SINGLE ONE I REVIEW THE RECOMMENDATIONS.
I HAVE MULTIPLE MEETINGS WITH PROJECT EXECUTION, MAINTENANCE AND OPERATIONS, ASSET MANAGEMENT, THE DESIGN MANAGERS.
AND WE WORK TOGETHER AND TALK THROUGH IT AND USE IT AS A LESSONS LEARNED.
AND I ASK A LOT OF QUESTIONS AND WE FIGURE OUT, SO THERE'S FINGER POINTING,
A LOT OF PEOPLE SAY, OH, WE HAVE A LOT.
AND I SAY WE HAVE A LOT 'CAUSE THEY ALL COME THROUGH ME.
WE DISCUSS IF WE HAVE A DIFFERENT VIEWPOINT.
BUT THESE ARE BENEFICIAL, HELPFUL TOOLS THAT WE'VE BEEN USE USING.
AND I ALSO WANT YOU TO KNOW, THESE PROJECTS JUST DON'T SPRING UP LIKE THE SEISMIC, UM, LIFTS, LAB BUILDINGS YOU'VE BEEN SEEING COME TO THE BOARD.
EVERY SINGLE ONE OF THOSE PROJECTS COMES AND IS REVIEWED WITH THE TEAM, WITH BOTH CHRISTINA AND I MULTIPLE TIMES BEFORE IT GOES TO A SB, LOOKING AT THE SCOPE OF WORK, LOOKING AT WHAT ARE WE DOING, LOOK AT WHAT THE RECOMMENDATIONS OF THE TEAM ARE MAKING, LOOKING AT THE ENROLLMENT PROJECTIONS.
SO THERE'S, THERE IS A CONTINUUM AND THESE TYPES OF AUDITS AND TECHNICAL EVALUATIONS ARE PART OF THE EVALU, THE, THE, THE RE-LOOK AS WE GO THROUGH ALL THESE PROJECTS.
SO I JUST WANT YOU TO KNOW, SOMETIMES PEOPLE ARE UPSET ABOUT THEM AND THEY SHOULDN'T BE.
THESE ARE TOOLS THAT WE USE AND WE USE IT POSITIVELY AND WE USE THEM CONSISTENTLY TO MAKE OURSELVES BETTER.
WE DON'T DO THESE KINDS OF PROJECTS ANYMORE BECAUSE THE CODES HAVE CHANGED.
NOW, IF YOU HAD TO DO THAT KIND OF WORK, THE STATE WOULD NOT ALLOW YOU THE PRETESTING REQUIREMENTS OF THE STATE CHANGED AFTER THIS PROJECT WAS BOARD APPROVED.
SO, UM, AND VERY SMARTLY, WE INTERNALLY, UM, UNLESS A BUILDING WAS HISTORIC, LOOK VERY CAREFULLY AT WHETHER OR NOT WE WOULD ROT, RETROFIT AND MODERNIZE.
AND BY THE WAY, THE TERM SHOULD BE RETROFIT AND MODERNIZE.
'CAUSE TYPICALLY, MOST OF OUR PROJECTS, WE DON'T JUST RETROFIT, WE MODERNIZE.
YOU'RE GOING TO GO IN THERE AND YOU'RE GOING TO MAKE IT BETTER.
SO WHAT ARE THE INSTRUCTIONAL AREAS THAT YOU'RE LOOKING AT THAT YOU CAN ALSO IMPROVE? THAT'S THE DIFFERENCE BETWEEN THE COMPREHENSIVE MODERNIZATIONS IN A PROJECT LIKE THIS, WHICH
[01:30:01]
WAS SEISMIC RETROFIT.OH, YOU'RE READY FOR QUESTIONS? OH, I'M READY.
LET'S, UM, I I WANTED TO MAKE A QUICK, UH, OVERALL, UH, COMMENT BECAUSE I'M OCD THAT WAY AND I KNOW I'LL FORGET EVERYTHING AFTERWARD, UH, AS OTHERS SPEAK.
'CAUSE THEY ALL ARE GONNA SAY SOME VERY ARTICULATE AND BRING UP SOME GOOD POINTS.
I, I THINK MY OVERARCHING, UM, TAKE ON THIS, AND I DIDN'T GO THROUGH THE ENTIRE REPORT, BUT I DID GET DEEP ENOUGH LAST NIGHT PAST THE EXECUTIVE SUMMARY.
AND I REALLY FELT THE TENOR OF THE OIG REPORT WAS EXTREMELY PROFESSIONAL AND MM-HMM
THE, UH, THE WAY IT WAS PRESENTED AND WRITTEN IS, IT'S FANTASTIC.
I DON'T THINK I'VE SAID THAT TOO MANY TIMES.
I THOUGHT YOUR RESPONSES FROM FROM FACILITIES WAS ALSO VERY, VERY GOOD.
THEY DIDN'T FEEL ANY TENSION HERE.
THERE WAS, LIKE YOU STATED, I FELT THERE'S A COUPLE PARTS WHERE, HEY, WHY YOU DISAGREE A LITTLE BIT OR WHATEVER WE HAVE.
AND THAT BRINGS ME TO A COUPLE OF QUESTIONS.
IF I COULD, YOU KNOW, WHEN YOU FIRST HEAR ABOUT THIS ON THE STREET, OH, THE FRANKLIN PROJECT, GOD, YOU DOUBLED IN PRICE.
OH MY GOD, CAN YOU BELIEVE WHAT'S GOING ON? HOW IS THIS, HOW COULD THIS BE MANAGED THIS WAY? AND WE ALL GET INTO THE EMOTION TO IT.
BUT FOR THOSE THAT CAN UNDERSTAND THE WEEDS, YOU KNOW, AND THE DIFFERENCES BETWEEN THEM, YOU KNOW, YOU START TO UNDERSTAND AND BREAK THAT DOWN.
SO IF, IF A COUPLE THINGS THAT YOU STATED THAT I WANTED TO LIKE, THROW OUT TO THE REST OF THE, THE COMMITTEE, UM, THE PERCENTAGES, YOU KNOW, BEING WHAT THEY ARE, BUT IN THE RIGHT CONTEXT.
SO I I SAW END USER, END USER
THAT'S SOMETHING THAT I THINK MAYBE COULD BE MORE ON YOUR SIDE.
THAT AND, AND WHEN A PRINCIPLE AND, AND WE MAY NOT UNDERSTAND OR KNOW THAT THE PRINCIPLE MAY HAVE CHANGED HERE AS WELL.
SO THE END USER, SEE NOW I'VE GOT SOMEBODY WHO, YOU KNOW, AN EXPERT IN THIS AREA AND HOW MUCH INFLUENCE AND INPUT THEY HAVE WHEN THEY'RE THERE FOR A, A PERIOD OF TIME.
SOMETIMES THAT HAS AN OVER AN EFFECT LONG TERM OF THESE BUILDINGS LONGEVITY AND THE WORK WE'RE DOING.
UH, I, I KNOW YOU'VE GOT THINGS TO SAY, BUT I'LL, I SWEAR TO GOD I'LL FORGET EVERYTHING.
I HAVE TO REMEMBER EVERYTHING YOU'RE SAYING TO ME,
WELL, THAT'S A GOOD POINT TOO.
UM, YOU KNOW, THE BUILDING ALSO, I DON'T KNOW IF IT'S IDENTIFIED ON THE NATIONAL, BUT IT'S A HISTORIC BUILDING IN TERMS OF AGE.
AND I CAN'T ANSWER THAT TO TELL YOU THE TRUTH.
BUT, BUT WE CAN STILL REST ON THE FACT THAT THIS IS A HUNDRED PLUS YEAR OLD BUILDING.
AND YOU KNOW, EVEN WITH DEALING WITH DOCUMENTATION.
'CAUSE IT TAKES ME TO A POINT WHERE I THINK, WHERE'S THE ERRORS IN OMISSIONS? YOU KNOW, AS I READ FROM THE REPORT, THERE ARE SOME, I THINK SOME POINTS THERE, WHICH LIKE, OOH, YOU KNOW, BUT NOT UNDERSTANDING WHEN YOUR STRUCTURAL SYSTEM AS IT'S DESIGNED, IT'S IMPACTS ON SPECIFIC AREAS.
AND THEN AS YOU, YOU STATED THIS TONIGHT, UH, TODAY, JUST TONIGHT, IT'S NOT EVEN MORNING YET,
AND DID THE ARCHITECT AND THE ENGINEERING FIRM, UH, TEAM CATCH THAT AND THEN DOCUMENT IT AS SOON AS A CONTRACTOR COMES IN? NOT HIS FAULT.
IT'S NOT JUST DISCOVERY HERE, IT'S NOW I HAVE TO IMPLEMENT THIS DESIGN FROM THE STRUCTURAL SIDE, BUT IT'S IMPACTING THIS, THIS, AND THIS.
THAT THE ARCHITECT'S NOT IDENTIFYING HOW MUCH OF THAT SHOULD BE PLACED ON THEM.
IS IT STILL A GOOD QUESTION? AND HOW MUCH, YOU KNOW, DOES THAT GO INTO MAYBE A LITTLE BIT OF THE DISCOVERY, WHICH I THINK YOU WERE KIND OF ALLUDING TO, TO A MOMENT AGO.
AND THAT'S THE OTHER BIG AREA.
30% OF DISCOVERY, 30% TO END USER AND OWNER U UM, UH, INPUT.
THAT'S 60, THAT'S 600 THOU OR 600,000.
WAIT, WAIT, SORRY, THAT'S 6 MILLION.
UH, YOU KNOW, 60% OF THAT RIGHT? MATH HAS GONE OUTTA MY HEAD.
SO THAT'S A BIG IMPACT ON THAT DI DI THE DELTA THAT WE'RE CONCERNED ABOUT IN TERMS OF DOUBLING.
I DO BELIEVE, AND I DEAL WITH THIS TOO, AND IT'S SO FRUSTRATING READING IT, IT JUST MADE THE HAIR ON MY NECK, YOU KNOW, STAND UP WHEN YOU DON'T HAVE ADEQUATE SUPERVISION.
SO FIRST OF ALL, YOU KNOW, READING THIS, YOU, YOU MENTIONED THE EMOTIONAL RESPONSE AND HOW COULD THIS BE? THAT'S EXACTLY HOW I REACTED.
I'M LIKE, OH, I WASN'T AWARE OF THIS PROJECT 'CAUSE I WASN'T IN THE ROLE THAT I WAS WHEN THIS WAS HAPPENING.
I WASN'T IN THIS CURRENT ROLE.
SO I GET THIS, I'M LIKE, OH MY GOD, I REACTED EMOTIONALLY.
WHAT AM I GONNA DO ABOUT THIS
WELL, THOSE ARE ACTUALLY THE APPROPRIATE WAYS.
MAYBE I'M SHOULDN'T BE ADMIT TO EMOTIONAL REACTIONS, BUT THEN I, YOU KNOW, YOU HAVE TO STEP BACK AND SAY, OKAY, WHAT REALLY HAPPENED HERE? BUT THE, YOU KNOW, HERE'S THE THING ABOUT THIS.
[01:35:01]
DELAY IS A FACT.WHETHER OR NOT IT'S 26 OR 27% CHANGER IS A FACT.
THAT'S THE BEAUTY OF A VERY DETAILED, WELL, VERY WELL DONE REPORT.
SO THE WAY I USE THESE IS, LAST YEAR THERE WAS A PROJECT, UH, THAT CAME THROUGH AND, UM, I HAD A REACTION TO IT.
AND WHAT WAS THE BENEFIT? THERE WAS EVERY PARTY IN OUR ORGANIZATION, THE EXECUTION TEAM, THE MAINTENANCE AND OPERATIONS TEAM, UM, ASSET MANAGEMENT TEAM, ALL ALL HAD A CONTRIBUTING, UM, ISSUE THAT NEEDED TO BE ADDRESSED.
BUT THAT'S THE BENEFIT OF WORKING TOGETHER, WORKING COLLABORATIVELY, LOOKING AT EACH ONE'S ROLE.
HOW COULD YOU DO BETTER? HOW DID THAT HAPPEN BETWEEN YOU TWO? WHAT CAN YOU DO? IN OTHER WORDS, THESE ARE, EVERY ONCE IN A WHILE YOU HAVE AN OUTLIER LIKE THIS, OR THE ONE I HAD LAST YEAR.
YOU JUST USE IT TO DRIVE LEARNING PERSPECTIVE.
I, I THINK, UH, I HAVE KNOWLEDGE OVER, UM, THIS PARTICULAR ARCHITECT'S, UM, WORK.
THEY DID HAVE HIGH ERRORS IN EMISSIONS ON AT LEAST THE LAST COUPLE OF PROJECTS THAT THEY DID, UM, WITH THE DISTRICT.
I GOT THREE LAST COMMENTS AND OPEN UP FOR EVERYBODY ELSE.
UM, NUMBER ONE, THE, THE RAIN EVENTS, WHICH, YOU KNOW, IS A CONTRIBUTOR TO THIS.
WHAT DID THE CONTRACTOR DO TO PROTECT THE, AND YOU KNOW, AT, AT THIS TIME THEY OWNED THIS PROPERTY, RIGHT? YEAH.
THEY, SO WE LOOKED INTO THAT BEFORE I WOULD COME UP HERE.
UM, AND UH, THAT, THAT WAS NOT AN ISSUE.
AND WE DO HAVE, YOU KNOW, PROTECTION ISSUES, SUBCONTRACTORS, EVEN OUR BEST CONTRACTORS SOMETIMES HAVE AN ISSUE WITH RING PROTECTION.
UM, BUT THAT WAS NOT AN ISSUE IN THIS CASE.
THEY DID, UH, NOT FAIL TO PROTECT THE BUILDING.
AND IN FACT, THERE WAS A BUILDER'S RISK.
SO WAS IT MORE THE DELAY VERSUS DAMAGE? I KIND OF SENSE THERE MIGHT HAVE BEEN DAMAGE.
OH NO, IT WAS, THE DAMAGE WAS EXTREME AND THEN, UH, THE DAMAGE WAS EXTREME.
AND THEN YOU HAVE THE ROOF, YOU HAVE THE CEILINGS, THEN LIKE IN THE BOYS' RESTROOM, UM, THEY HAD DAMAGE.
THEY REMOVED THE TILE, THEN THEY SEE WITHIN THE WALL, THEN THEY HAVE CORRODED PIPES.
AND THEN NOW, SO HERE, HERE'S SOMETHING THAT NOW GOES FROM UNFORESEEN TO THE OWNER SAYS, NOT THE PRINCIPAL, I'M SURE.
IT DIDN'T HAVE A CLEAN OUT, IT DIDN'T HAVE A VENT.
SO WE'RE IN THERE DOING THAT WORK.
WE'RE GONNA DO THAT KIND OF WORK BECAUSE IT'S EASIER TO MAINTAIN IT IF WE DID THAT.
AND IT FUNCTIONS BETTER, BETTER IF YOU DO THAT WORK.
SO DID WE HAVE TO DO THAT WORK? NO, IT'S NOT AN ERROR IN OUR REMISSION.
IT'S A, IT'S A, A STRING OF UNFORESEENS STARTING WITH WATER DAMAGE.
I, I, THAT'S, THAT'S KIND OF WHAT I WANTED TO BE ABLE TO CLARIFY.
THERE COULD BE A GRAY AREA IN THE 30% MM-HMM
BETWEEN THE TWO, THAT KIND OF, RIGHT.
BUT STILL, YOU MAY, IT'S STILL HUGE.
WELL EVEN ON THE ARIZONA OMISSION SIDE, YOU KNOW, YOU'RE PROBABLY OVER WHAT'S WE CONSIDER A NORM.
I, I, I THINK, I GUESS THE, YOU KNOW WHAT I SAID, I HAD THREE AND SEE WHAT HAPPENED.
I ALREADY FORGOT WHAT THE, I'VE ALREADY FORGOTTEN TWO.
AND EVERYBODY ELSE, SOMEBODY MAY MAYBE STIMULATE SOMETHING HERE.
UM, UH, AT, I GUESS AT THE END OF THE DAY, I, I WANTED TO FOCUS REAL QUICKLY ON THIS LACK OF SUPERVISION DEAL.
'CAUSE THAT'S WHERE WE, YOU STARTED TO ANSWER THE OTHER QUESTIONS.
THAT IS FOREMOST AND PARAMOUNT TO ME MM-HMM
AND YOU DON'T HAVE THE PEOPLE ON SITE AND ISSUES THEN DETERIORATE.
AND I THINK THERE WAS SOME, SOME, UH, IN, UH, REFERENCE THAT MAYBE EVEN FACILITIES HAD A LITTLE BIT OF LACK OF, OF OVERSIGHT IN TERMS OF PROJECT MANAGEMENT ONTO THE CONTRACTOR.
I, I NO, ON THE, THAT WAS SPECIFIC TO THE, UM, CHANGE ORDER.
AND, AND AGAIN, WE COULD DEBATE, DID THE OAR LOOK AT, UH, BUT MR. CAMPBELL BROUGHT THIS ISSUE OF WHEN YOU DON'T HAVE ADEQUATE, YOU BROUGHT THIS UP AT THE AGENDA SETTING WHEN YOU DON'T HAVE ADEQUATE, UM, SUPERVISION FROM THE CONTRACTOR.
WHAT IS THAT RIPPLE EFFECT? THERE'S A RIPPLE EFFECT.
SO PROJECT EXECUTION STAFF, YOU KNOW, WE DIDN'T ADD STAFF.
DID THEY HAVE TO WORK HARDER? DID THEY HAVE TO WORK LONGER? DID THEY HAVE TO GO UP THE CHAIN AND INVOLVE AT A SENIOR LEVEL OR GENERAL LEVEL? MORE EFFORT, PROBABLY, YES.
SO THERE IS A RIPPLE EFFECT WHEN A PARTY DOES NOT PERFORM.
I, BUT YOU CAN'T DO THEIR JOB FOR THEM.
I MEAN, CONTRACTUALLY THEY'RE OBLIGATED.
YOU CAN DO, THAT'S, THAT'S RIGHT.
YOU KNOW, YOU CAN'T TAKE, I MEAN, IN WAYS, I GUESS SOMETIMES YOU DO,
[01:40:01]
YOU HAVE TO, BUT YOU CAN'T TAKE OVER THE CONTRACTUAL OBLIGATION WANTS TO START WITH QUESTIONS.SORRY, BUT WHO WANTS TO START? SHE GOT HER HAND UP.
I, I ALWAYS, BUT EVERY ONCE IN A WHILE, I LIKE GOING TO MY LEFT SIDE.
THANK YOU SO MUCH, UH, FOR THE PRESENTATION, UM, FROM BOTH OFFICES.
UM, MY QUESTION IS, DO YOU KNOW WHAT THE ESTIMATED DOLLAR AMOUNT OF, OF THAT PIE THAT WE'RE LOOKING AT, UM, WOULD BE ATTRIBUTED TO THE RAIN EVENTS, THE CHAIN OF UNFORESEEN CONDITIONS OR, YOU KNOW, E AND O FROM THAT? I THINK IT'S ON, ON YOUR SLIDE.
IF YOU LOOK AT THE ROOF, THE, THE NUMBERS FOR THE ROOF, THE NUMBERS FOR THE, UM, CEILING CHANGES.
WELL, IT'S NOT A HUNDRED PERCENT OF ALL THAT.
UM, I, I MEAN, I CAN SLICE AND DICE IT, YOU KNOW, APPROXIMATELY 8% OF THE 6 MILLION WAS THE COMPENSABLE DELAY, THE 241 DAYS.
BUT, BUT JUST TO, TO CLARIFY THAT, SO, SO THERE WAS, BECAUSE THE PROJECT WAS IN PROGRESS AND THE BUILDING ENVELOPE WAS NOT WEATHER TIGHT AND THERE WAS A SIGNIFICANT RAIN EVENT THAT RESULTED IN DAMAGE THAT THEN YES.
AND HOW DOES THAT SQUARE AND, AND NOT BECAUSE YES.
WELL, HOW DOES THAT SQUARE WITH THEM HAVING TAKEN PREVENTATIVE MEASURES TO SECURE THE SITE? IT WAS FOUND THAT THEY TOOK PREVENTATIVE.
THE FAILURES WERE THE OLD ROOF.
SO, OKAY, SO HERE'S AN EXAMPLE.
A COMPREHENSIVE MODERNIZATION PROJECT THAT TAKES ON FOUR OR FIVE BUILDINGS AT THE EXISTING BUILDING.
THE ANALYSIS, THE SITE INVESTIGATION WOULD SAY, OKAY, I'VE GOT A SEISMIC RETROFIT.
IT WOULD WRAP ALL THOSE INTO A COMPREHENSIVE PROJECT.
AND THE, IN THIS CASE, THE TEAM SAID, I'M DOING A SEISMIC RETROFIT.
THEY HAVE A SEPARATE POT OF MONEY FOR ROOFING.
THEY HAVE A SEPARATE POT OF MONEY FOR PLUMBING.
SO IN THIS CASE, IDEALLY THEY WOULD'VE RECOGNIZED THAT THE ROOF IS IN PA, POOR CONDITION.
WE'RE HERE, LET'S HAVE A SEISMIC IZATION PROJECT WITH THE ROOFING PROJECT.
THEY ACTUALLY DID HAVE SOME ROOFING IN THE ORIGINAL SCOPE.
WHEN THOSE STORMS CAME, THE ROOF DID NOT PERFORM, BUT IT WAS NOT FOUND TO BE THE CONTRACTORS, UH, UH, ISSUE.
AND THERE WAS A BUILDER'S RISK ASSESSMENT ON THAT.
SO I'M GONNA TRUST THAT ASSESSMENT.
IT WAS AN OLD ROOF AND WHERE YOU FIND THE LEAKS MAKES SENSE.
SO WHERE THE LOWER ROOF HIT THE EXISTING BUILDING, IT CAME THROUGH THERE.
PROBABLY DETERIORATED FLASHING.
UH, JUST A FOLLOW UP QUESTION ON THAT.
UM, OR MAYBE IT'S MORE OF A STATEMENT.
UM, I DO JUST WANTED TO NOTE THAT, UM, I THINK THAT I UNDERSTAND THAT TECHNICALLY THAT MIGHT FALL INTO THE UNFORESEEN CONDITIONS CATEGORY MM-HMM
UM, BUT I THINK SOMETHING ABOUT, UM, HAVING THOSE BE KIND OF CLEANLY TUCKED AWAY IN THOSE CATEGORIES, IT FEELS LIKE THE, THE RAIN EVENTS IS, UM, FEEL LIKE THEIR OWN KINDA SEPARATE CATEGORY.
A CATEGORY YOU WERE JUST TO LOOK AT, KIND OF, YOU KNOW, INITIALLY FOR, FROM MYSELF REVIEWING THE REPORT, UM, IT DIDN'T, IT FELT LIKE A, I MIGHT USE THE WORD MISCHARACTERIZATION TO, TO BUNDLE THOSE INTO, YOU KNOW, JUST UNFORESEEN CONDITIONS.
'CAUSE THE TAKEAWAY, RIGHT? YOU, YOU KNOW, YOU DO MORE OF THE SELECTIVE DEMO, YOU UNDERSTAND BETTER.
YOU DON'T HAVE THOSE AS-BUILTS, UM, OR THAT, UM, YOU KNOW, THE, THE E AND O RIGHT? THAT OR THE END USER, UH, THE, THE NEW ADDITIONS TO THE SCOPE.
IT JUST, IT FEELS LIKE IT'S, IT'S A, A VERY DIFFERENT WAY TO CATEGORIES THAT SCOPE, THE ADDITIONAL SCOPE TO THE PROJECT, THOSE ADDITIONAL CHARGES.
SO, AND, AND THAT'S WHAT I'M, THAT'S ACTUALLY KIND OF WHAT I'M SAYING.
IN OTHER WORDS, WE COULD GO BACK THROUGH THIS LIST.
AND, AND SOME OF THE FOLKS ON MY TEAM WERE DOING THAT AND SAYING, WELL, THIS REALLY WASN'T AN ERRORS AND ADMISSION, IT WAS REALLY THIS.
AND I'M LIKE, WAIT A SECOND, WAIT A SECOND.
SO LET'S GO BACK TO THIS UNFORESEEN.
SO YOU HAVE THE UNFORESEEN, YOU HAVE TWO DIFFERENT RAIN EVENTS, BOTH WITH DIFFERENT DAMAGE AT DIFFERENT TIMES, TWO YEAR, A YEAR APART.
BUT YOU ALSO HAVE UNFORESEEN THAT YOU WOULDN'T EXPECT.
SO, UH, AT THE SOUTH SHORES PROJECT WE DISCUSSED LAST YEAR, WHICH WAS AN OIG REPORT THEY BROUGHT TO YOU, AND I DON'T, I THINK I PREPARED THE REPORT, BUT CHRISTINA PROBABLY DELIVERED IT TO YOU.
UM, WE WERE WORKING IN THE EXISTING AUDITORIUM AND
[01:45:01]
UH, I CAN, UH, REMEMBER WHAT HAPPENED, BUT WE HAD TO GO UP INTO THE ATTIC.WE HAD NO WORK IN THE ATTIC PER SE.
SOMEBODY HAD TO GO UP IN THE ATTIC AND THEY FOUND CRACKED STRUCTURAL MEMBERS.
WELL, YOU CAN'T JUST WALK AWAY FROM THAT, RIGHT? I MEAN, YOU'RE AN OWNER.
WE GOT CRACKED STRUCTURAL MEMBERS, WE GOTTA DEAL WITH IT.
WELL, IN LOOKING AT THAT ISSUE, WE ALSO FOUND OUT THAT THE ONES THAT WEREN'T CRACKED, THEY WERE ALL NOT THE CORRECT GRADE OF LUMBER THAT SHOULD HAVE BEEN UTILIZED.
AND THE DRAWINGS SAID THEY WERE SOME INSPECTOR 50, 60 YEARS AGO.
THEY DIDN'T BUILD IT WITH THE RIGHT GRADE OF TRUMP, OF, OF LUMBER.
SO IT'S NOT GONNA STRUCTURALLY PERFORM.
IN ESSENCE, IT'S GONNA DEFLECT.
SO WE HAD TO A, WE HAD TO ADD ALL THAT WORK, EVEN THOUGH I, I'M NOT, I DON'T REMEMBER WHY WE'RE OPEN THAT ADDICT, BUT THAT GOT ADDED TO THE PROJECT, CAN'T WALK AWAY.
SO THAT'S AN UNFORESEEN, AND WE DO FIND THAT, WE DO FIND, I TELL PROBABLY WRITE A BOOK ON THEM, UM, WHERE WE GO IN AND FIND THAT THINGS ARE NOT AS THEY WERE DESIGNED.
OH, AND YOU KNOW, WHAT'S A CLASSIC? ALL THE SEWER LINES, THE SEWER LINES ARE NEVER, NEVER WHERE THEY, THE DRAWING SAYS IT IS.
AND THEY'RE ALMOST ALWAYS NOT THE RIGHT SIZE.
AND THEN WE'RE LIKE, OH, NOW WE'RE REPLACING A SINGLE LINE SULLIVAN.
OH, OH, OH, YOU, YOU TOLD ME TO STAY ON THE RIGHT SIDE.
I'LL JUST SAY I, MY BACKGROUND IS IN PROPERTY MANAGEMENT AND OPERATIONS.
STORES ARE NEVER WHERE THEY'RE SUPPOSED TO BE IN.
UM, THAT BEING SAID, I, I DO WANNA LOOK KIND OF FORWARD AND I THIS'S KIND OF BEEN THE SOURCE OF MY QUESTIONING.
I KNOW MS. TOS HAS ANSWERED THIS ONE FOR ME AT LEAST TWICE.
BUT, UH, AROUND, YOU KNOW, WHY WE'RE NOT, THAT WE'RE NOT TAKING ON THE IDEA OR NOT TAKING ON COMP MODS ANYMORE.
UM, AND IT SOUNDS TO ME IN A LOT OF WAYS, WHAT YOU'RE SAYING HERE, ONE OF THE ERRORS HERE IS THAT IT WASN'T A COMP MOD.
SO I'M KIND OF LOOKING FORWARD INTO THE FUTURE AND SAYING, HEY, IF WE'RE NOT DOING COMP MODS ANYMORE AND PROJECTS LIKE THIS SHOULD POSSIBLY HAVE BEEN MORE COMPREHENSIVE THAN THEY WERE, WHAT WOULD THIS AND LOOKING FOR, WHAT WOULD THIS PROJECT LOOK LIKE IF IT WAS DONE TODAY? AND THAT'S WHERE I WANNA STAY FORWARD.
THAT'S A REALLY GOOD QUESTION.
SO, FIRST OF ALL, I WANNA JUST EXPLAIN COMPREHENSIVE MODERNIZATIONS WERE DRIVEN BY NINE, I THINK IT WAS NINE DIFFERENT FACTORS, ONE OF WHICH WAS SEISMIC AND DOMINATED, WHICH IS WHY YOU HAD SO MUCH WORK IN THOSE AND WHY THEY WERE DRIVEN TO SITES WHERE YOU'D HAVE FIVE OR SIX BUILDINGS YOU'D HAVE TO ADDRESS.
WE DO DO COMPREHENSIVE MODERNIZATION, BUT WE DON'T DO THOSE KINDS OF PROJECTS.
SO NOW WHEN WE GO TO A SITE WHERE WE, WE'VE GOT SMALLER PROJECTS BECAUSE COMPREHENSIVE MODERNIZATION PROJECTS WE'RE JUST TOO MUCH FOR THE STUDENTS.
TOO MUCH FOR AN OPERATING CAMPUS TOOK MANY, MANY YEARS.
YOU'RE DOING FIVE DIFFERENT BUILDINGS.
YOU'RE REPLACING ALL THE UNDERGROUND SYSTEMS. UM, YOU'RE UPGRADING THE POWER.
WE MOVED AWAY FROM THOSE BECAUSE OF THE BURDEN THEY WERE TO EVERYBODY'S BRAIN POWER.
THE RISK TO THE CONTRACTORS, FIVE, SIX YEARS OF CONSTRUCTION, UM, WHEN THEY WERE BIDDING THAT IT'S VERY HARD IF, YOU KNOW, UM, WE'VE HAD EXTREME FLUCTUATIONS IN ESCALATION.
39%, WELL, I'M GONNA FORGET WHAT YEARS THAT IS.
BUT I THINK FROM 2020 TO NEVERMIND, INFLATION IS OUT OF CONTROL AND HAS BEEN IN THE CONSTRUCTION ARENA IN LOS ANGELES.
BUT HERE WE DO DO COMPREHENSIVE PROJECTS.
NOW WOULD WE DO THIS BUILDING WOULD, IF WE HAD ANOTHER 1924 BUILDING THAT CAME UP TO BE ADDRESSED UNDER THE WAY THE STATE NOW REQUIRES US TO ANALYZE, YOU'D HAVE TO BUILD, YOU'D HAVE TO BRING THAT BUILDING TO TODAY'S CODES, WHICH WOULD MEAN THAT BUILDING WOULD HAVE TO SURVIVE A 7.8 EARTHQUAKE.
THAT AIN'T HAPPENING AT A REASONABLE AMOUNT OF TAXPAYER DOLLARS.
YOU KNOW, SO WHEN WE LOOKED AT THE LIFT SLABS AND ALL THOSE BUILDINGS, UM, WE REALLY CAREFULLY, AND WE THEN PEER REVIEWED, I THINK YOU'VE ASKED ME THAT QUESTION, MICHAEL.
UM, WE PEER REVIEWED THOSE DECISIONS TO REMOVE
[01:50:01]
AND REPLACE BECAUSE ONE FOR TWO REASONS.DO YOU GET A GOOD BUILDING THE INSTRUCTIONAL SPACE IN THOSE 1960S BUILDINGS, THE, I'M, I'M JUST LUMPING THEM ALL TOGETHER, LIKE 1958 TO 62, THOSE WERE NOT GOOD BUILDINGS.
THAT'S NOT HOW WE BUILD CLASSROOMS ANYMORE.
AND THE COST TO RETROFIT OR MAKE IT AN EQUITABLE LEARNING SPACE, WHEN YOU HAVE OVER HERE NEW BUILDINGS FROM THE NEW CONSTRUCTION PHASE, YOU, YOU WANT TO PROVIDE THE BEST CLASSROOMS YOU CAN WITH THE SMARTEST DOLLARS.
AND THE STATE DOESN'T LET US INVEST MORE THAN 50%.
IF IT'S 50%, THEN BUILD THE THING NEW.
IT'S A VERY GOOD WAY TO APPROACH IT.
SO YES, IF THIS WAS A 1990S BUILDING AND WE WENT INTO RETROFIT, WE WOULD MODERNIZE IT.
IF IT'S A 1924 BUILDING, IT DOESN'T HAPPEN ANYMORE.
AND I GUESS ONE LAST FOLLOW UP, IF YOU COULD BALLPARK, AND MAYBE YOU CAN'T, BUT WHAT WOULD A NEW BUILDING HAVE COST IN THIS CASE VERSUS WHAT WAS SPENT? WELL, YOU KNOW WHAT, IT'S AN AUDITORIUM.
SO THAT'S A DIFFERENT ANIMAL THAN CLASSROOMS. A LOT MORE THAN $12 MILLION.
AND BY THE WAY, I, I WANNA GET PARTIAL CREDIT FOR THE BRILLIANT QUESTION.
'CAUSE THAT WAS ONE OF THE ONES I FORGOT TO ASK
I SAT IN THAT AUDITORIUM IN ASSEMBLIES.
I PERFORMED ON THE STAGE, LORD KNOWS THEN THAT I DIDN'T KNOW THEN WHAT I DON'T KNOW.
WHO VETTED PC N THREE TO DO THIS? WHAT WAS THE VETTING PROCESS? I DON'T KNOW.
UM, SO HOW WE SELECT CONTRACTORS IS, IS THE BEST VALUE, WHICH MEANS YOU DON'T JUST SELECT ON LOW PRICE.
WE CALL THAT FORMAL LOW PRICE BEST VALUE INCLUDES.
THEY, WE OPEN TO THE COMMUNITY OF CONTRACTORS.
YOU HAVE THIS PROJECT, SUBMIT YOUR, UH, SO QS STATEMENT OF QUALIFICATIONS, YOUR FIRM QUALIFICATIONS, THE INDIVIDUALS WHO WILL WORK ON THE TEAM IN CERTAIN CATEGORIES.
SO YOUR PROJECT MANAGER, YOUR SUPERINTENDENT, YOUR, UH, SAFETY, UH, SAFETY, AND THEN YOUR QUALITY AND INSURANCE.
AND THERE'S PROBABLY SOME OTHERS.
UM, SO THOSE PEOPLE AND THE FIRM ARE EVALUATED.
AND WHAT WE DO FOR BEST VALUE IS WE HAVE, UM, WHAT WE CALL, AND I DON'T KNOW IF THIS WAS DONE THEN, BUT WE HAVE WHAT WE CALL A PROJECT ANATOMY.
SO WHEN YOU GET TO A SHORT LIST, MAYBE YOU GET 10 STATEMENTS OF QUALS.
UM, A TEAM EVALUATES WITH PROCUREMENT ALL OF THE QUALIFICATIONS, AND THEY SCORE, AND THEY TYPICALLY PICK THREE TO FOUR CONTRACTORS TO COMPETE AT THE NEXT LEVEL.
SO THEN WE ASK FOR A REQUEST FOR PROPOSAL.
BUT BEFORE WE DO THAT, WE HAVE WHAT'S CALLED A PROJECT ANATOMY.
SO THE FOLKS THAT WORK ON THE PROJECT, THE CO DESIGN MANAGERS, THE ARCHITECTS AND ENGINEERS, AND THE PROJECT EXECUTION TEAM THAT'S ASSIGNED TO THE PROJECT, DESCRIBE THE PROJECT TO EACH OF THE FIRMS THAT'S GONNA COMPETE SO THAT THEY HAVE KNOWLEDGE AND THEY HAVE, UM, A WAY TO AN AND THAT'S COLLECTIVE, RIGHT? AND THEY HAVE A WAY TO ANSWER QUESTIONS.
AND THEN THEY GO TO THE REQUEST FOR PROPOSAL STAGE.
WE MAKE A REQUEST FOR PROPOSAL, AND THEY PUT IN THEIR PROPOSALS.
AND THEIR PROPOSALS, UM, ARE HOW THEY'RE GONNA DO THE WORK, THE LOGISTICS, HOW THEY'RE GOING TO WORK ON THE SITE, UH, WHERE ARE THEY GONNA PUT IN INTERIM HOUSING IF YOU NEED IT.
UM, AND THEN OF COURSE A PRICE.
BUT THEY GO THROUGH THAT WHOLE PROCESS.
EVERYBODY SCORED, AND THEN THAT'S PUT IN AN ENVELOPE AND THEN, AND PUT ASIDE.
AND THEN THE PROCUREMENT OFFICE RECEIVES THE BIDS AND ALL OF THAT.
AND DEPENDING ON THE KIND OF PROJECT, WE HAVE DIFFERENT FORMULAS FOR, FOR HOW YOU WEIGHT THE PROJECT.
IN OTHER WORDS, HOW MUCH OF A PERCENTAGE IS THE COST CAN CHANGE FROM A DESIGN BUILD TO A DESIGN BID BILL.
[01:55:01]
IN THE OIGS REPORT, IT WAS NOTED THAT THEY RECEIVED A SCORE OF 1 33 OUT OF TWO 50.IT SOUNDS LIKE A BAD SCORE, BUT I, I DON'T KNOW IF THAT'S WELL, I KNOW, I KNOW THIS AND I DON'T KNOW WHY, AND I DON'T KNOW ANY DETAIL.
AND OF COURSE, I'M NOT SURE THAT ANYONE ON THIS OIG G TEAM, BUT I DO KNOW THAT WHEN, UM, WHEN THE AWARD WAS GIVEN, THERE WAS A FOUR MONTH DELAY AND THE OIGS OFFICE WAS LOOKING AT IT.
I DON'T KNOW WHY YOU, YOU, WHEN YOU SAY YOU DON'T KNOW, JUST TO FOLLOW UP ON THAT, I MEAN, WE RETAIN, AS A MATTER OF COURSE OF BUSINESS, CORRECT? COMPREHENSIVE DOCUMENTS THAT SUPPORT OUR PROCUREMENT SELECTION DECISIONS.
OH, SO REVIEW DOCUMENTS AND EVERYTHING.
SO, SO WE SHOULD KNOW PRECISELY WHERE THEY SCORED RELATIVE TO ANY OTHER VENDORS THAT MADE A PROPOSAL ON THIS.
AND WHO MADE THE DETERMINATION UP TO PICK THEM? OH NO, THAT'S A SCORING SYSTEM AND IT GOES TO THE OFFICE OF PROCUREMENT THAT KEEPS ALL OF THAT.
SO WERE THEY THE HIGHEST SCORED? NO, WHAT I'M SAYING IS, I DON'T KNOW WHY THE OIG LOOKED AT IT AFTER THE PROCUREMENT.
THAT'S, WERE THEY THE HIGHEST SCORED PROPOSER FOR THIS PROJECT? OH GOD, HELP US, I WOULD ASSUME, BUT, OH, SO THERE'S A VERY GOOD QUESTION, MR. CAMPBELL.
I CAN'T ANSWER THAT QUESTION ON THIS.
IT DOESN'T MEAN I CAN'T LOOK IT UP.
SO WHEN, WHEN A PROJECT HAS GONE THROUGH A BEST, WELL, LET'S USE A FORMAL LOW BID AS A BETTER WAY TO DO IT OR, OR A, UH, OR A BEST VALUE.
UM, THE PROJECT TEAM MAKES A RECOMMENDATION TO PROCUREMENT WHO HAS TO AGREE WITH US.
UH, ARE WE GOING TO GO FOR LOW TWO OR LOW THREE? SO THAT, AND THE REASON WE DO THAT IS BECAUSE YOU COULD SAY, OKAY, ALL THREE OF THESE BIDDERS OUT OF THE 10 ARE LEGITIMATE AND THEY HAVE DIFFERENT SCORES.
AND THEN PROCUREMENT HAS TO MAKE SURE AND DOT EVERY I AND CROSS EVERY T THAT THEY MEET, EVERY LITTLE QUALIFICATION.
SO PROCUREMENT IS OVERSEEING THAT OVER FAC FACILITIES SEPARATELY.
BUT WHY IT WENT TO THE OIGI HAVE NO IDEA.
I HAVE A FOLLOW UP ON PC N THREE.
YOU THINK THESE GUYS ARE GONNA GET ANOTHER JOB? I DON'T EVEN KNOW IF THEY HAVE ANOTHER JOB RIGHT NOW, BUT I DON'T THINK THEY DO.
YOU THINK THEY'RE GONNA GET ANOTHER JOB BECAUSE OF THIS? UH, WELL, OKAY, SO HERE, THAT'S A REALLY GOOD QUESTION.
IF WE WERE TO, UH, DOES THE PAST TAKE INTO, OKAY, EVERYONE IS THE PAST, IS THE PAST TAKEN INTO ACCOUNT, I GUESS IS WHAT I'M SAYING? YES.
HOWEVER, I'M JUST GONNA SAY WE NEED AS MANY BIDDERS AS WE CAN.
SO LET'S JUST SAY THAT PC THREE, PCN THREE FIRM GETS A BETTER SUPERINTENDENT AND A MORE HIGHLY QUALIFIED PROJECT ENGINEER, IT STILL MEANS THEY MIGHT BE ABLE TO COMPETE LEGITIMATELY.
I'M JUST SAYING SPECULATIVELY.
THAT'S HOW I WOULD ANSWER THE QUESTION.
THAT DOESN'T MEAN THEY, THEY MIGHT NOT GET THROUGH THE STATEMENT OF CLAUSE REVIEW.
WHAT HAPPENS IF THE ROOF LEAKS NOW, EVEN THOUGH IT PASSES, IT'S UNDER WARRANTY SO WE CAN GO BACK AND GET IT CORRECTLY.
SO WE DON'T NEED TO WORRY ABOUT HAVING TO GO THROUGH ALL OF NO, WE HAVE A WARRANTY ON IT.
UM, YOU KIND OF TOOK THE THUNDER OUT OF MY QUESTIONS ON SOME OF THEM
AND, AND WHICH IS GREAT BECAUSE IT DOES GO BACK TO LESSONS LEARNED IN TERMS OF WHAT WE, WE LOOK AT IN THE FUTURE.
UM, SO, BUT WHEN WE'RE HERE MAKING DECISIONS OR, OR GIVING, UM, RECOMMENDATIONS AS TO WHAT WE NEED TO FUND NEXT, AND THE POT OF MONEY IS THIS LIMITED POT OF MONEY, UM, YOU KNOW, WE WANNA MAKE SURE THAT WHATEVER WE SAY OKAY, TO DOESN'T TURN INTO THIS PROJECT IN THE FUTURE.
SO WHAT WOULD BE THE SAFEGUARDS? I MEAN, I KNOW YOU GUYS HAVE, UH, YOU'RE TALKING ABOUT THE EXTENDED SCOPE, AND I UNDERSTAND THAT WHEN YOU OPEN, UH, WHEN YOU START A PROJECT, KNOWING IN MY OWN HOUSE THAT'S ALMOST A HUNDRED YEARS OLD, WHEN YOU, YOU KNOW, WANNA MOVE A WALL, YOU DON'T KNOW WHAT YOU'RE GONNA FIND BEHIND IT.
UM, SO THINGS TAKE LONGER AND THEY, THEY GO INTO THESE, UH, COSTS THAT YOU DIDN'T QUITE FORESEE OR, OR MAYBE YOU DIDN'T ESTIMATE WELL ENOUGH TO BEGIN WITH.
SO I UNDERSTAND ALL OF THOSE THINGS, BUT AT THE END OF THE DAY, IN TERMS OF RECOUPING FUNDS, THAT LOOKED LIKE THERE WAS ONLY 66,000 THAT CAME BACK OUT OF 17 MILLION.
[02:00:01]
THERE OTHER THINGS THAT WE CAN DO TO GET SOME MONEY BACK? OR ARE THERE THINGS THAT WE CAN DO SAFEGUARDING MOVING FORWARD SO THAT WE'RE NOT IN THIS POSITION AGAIN? WELL, WHAT WE PAID FOR IS SOMETHING WE GOT SOMETHING FOR.SO, UH, YOU CAN'T PUNISH THEM BY TAKING MONEY FROM THEM BECAUSE YOU DIDN'T EXPECT IT IN THE FIRST PLACE.
SO IN OTHER WORDS, AND AS A PUBLIC ENTITY UNDER, UNLESS IT'S A VOLUNTEER, UH, EFFORT OR A DONATION, YOU CAN'T NOT PAY FOR THE WORK THAT'S PERFORMED.
NO, I'M NOT, I'M NOT SUGGESTING THAT AT ALL.
SO, SO THE WORK, THE WORK GOT BIGGER AND WE HAD TO PAY FOR THE WORK ALONG THE WAY.
SO I GUESS THE CLARIFICATION IS, SO DID WE, UM, I KNOW WE GOT SOMETHING FOR WHAT WE PAID FOR, OBVIOUSLY.
WE GOT NEW FLOORING THAT WE DIDN'T EXPECT TO.
SO, UM, I GUESS MY QUESTION WOULD BE THEN, DID WE, UM, HAD WE BID THIS PROPERLY OR HAD WE BUDGETED FOR IT PROPERLY, KNOWING WHAT WE KNOW NOW, WOULD IT, HAVE WE GOT WHAT WE PAID FOR? TO SOME DEGREE, I UNDERSTAND THAT.
UM, BUT DID WE FIND ANYTHING AT THE END OF THE DAY BETWEEN THE INSPECTOR GENERAL'S REPORT YOUR OWN ANALYSIS? WAS THERE ANYTHING THERE THAT WAS AN ISSUE? IT DOESN'T SOUND LIKE IT, IT JUST SEEMS LIKE IT JUST BECAME SOMETHING THAT GREW BIGGER AND SNOWBALLED.
IT GREW BIGGER, BUT THE WHOLE, THE WHOLE CONVERSATION ABOUT MONITORING THE CHANGE ORDERS AND MAKING SURE YOU HAVE A FAIR COST ESTIMATE, THAT WHOLE PROCESS AND HAVING AN OUTSIDE, UM, ESTIMATING TEAM AS OPPOSED TO A PROJECT ENGINEER OR AN OAR AND MANY OF THE OORS ARE QUALIFIED TO DO THAT FOR THE SMALLER CHANGE ORDERS.
THAT THOSE ARE THE PROTECTIONS THAT YOU'RE PAYING FOR FAIRLY, YOU'RE PAYING FAIRLY AND YOU'RE NOT OVERPAYING.
THAT WHOLE REVIEW OF INDIVIDUAL PAYMENTS WITH MANY PEOPLE THERE BEHIND THE SCENES TO LOOK AT THE BIG ONES.
AND ALSO, UH, THE SCHEDULE, THOSE ARE, UH, OVERSEEN.
THOSE ARE CALLED TIME IMPACT ANALYSIS.
UM, ON, I DON'T KNOW, ON THIS PROJECT, UH, MANY OF THOSE, WE GO OUT TO OUTSIDE CONSULTANTS TO REVIEW INDEPENDENT OF THE TEAM, NO MATTER HOW THEY FEEL ABOUT ANYTHING.
YOU TAKE THOSE FACTS AND YOU GIVE THAT DOCUMENTATION FROM THE CONTRACTOR AND FROM THE PROJECT EXECUTION TEAM, AND YOU GIVE ALL THOSE FACTS TO AN OUTSIDE PARTY TO LOOK AT IT FAIRLY AND ANALYZE THE TIME IMPACT, WHICH IS HOW THE 241 BECAME COMPENSABLE DELAY.
IN OTHER WORDS, THERE WAS AN ANALYSIS, WE'RE NOT GONNA PAY FOR 240 DAYS, AND WE'RE, IF 241 COMES THROUGH THE ANALYSIS, THAT'S THE COMPENSABLE DELAY.
I I HO I DON'T KNOW THAT I'M ALWAYS ANSWERING YOUR QUESTIONS.
UM, MR. CAMPBELL, I'M NOT SURE I ANSWERED YOUR QUESTION.
HE'S GONNA FOLLOW UP WITH A QUESTION OH, OF COURSE IN A MINUTE.
BUT, BUT WE'RE GONNA, WE'RE GONNA GO TO MS. CARLOS FIRST, BUT OKAY.
I, I WANT TO CLARIFY WHAT MS. PERLA IS GOING INTO A G GOOD AREA.
I DON'T, I, THERE WAS A, THE OIG WELL DOCUMENTED THIS, THE, UH, CHANGE ORDER FOR EXTENDED TIME.
UM, WHAT WASN'T REALLY CLEAR WAS SOME OF THE TIME MAY HAVE BEEN HIS FAULT OF WEATHER, AND I DIDN'T REALLY READ THAT, BUT I DIDN'T READ THE ENTIRE DOCUMENT.
SO, BUT THERE WAS CONTENTION THAT SOME OF THE TIME, EX EXPENSE AND, AND DELAYS WERE BECAUSE OF LACK OF SUPERVISION.
SO THE 241 WAS FOUND BY DETAILED ANALYSIS TO BE A FAIR COMPENSABLE DELAY THAT THE OWNER, THAT THE CONTRACTOR WAS IMPACTED BY WEATHER.
AND THERE WAS A, WAS IT 306 OR WHAT WAS IT? 366 IS THE TOTAL NUMBER OF DAYS THAT THE PROJECT, UH, OVERSHOT THE ORIGINAL.
OH, UM, THE LAST DATE OF COMPLETION, I WANTED TO GO BACK TO MS. MS. LURTON.
'CAUSE I THINK SHE'S, IT'S, IT, IT'S HARD TO ACCEPT IF SOMEONE PERFORMS THE WAY THEY DID AND SHOWED THAT THEY, AND YOU KNOW, IT IS THIS IDEA OF THIS IS NOT THEIR FIRST RODEO MM-HMM
AND THEY DIDN'T HAVE THE RIGHT PEOPLE IN PLACE.
AND YOU KNOW WHAT? THEY GOT CAUGHT BECAUSE THEY'RE USING THAT SUPERINTENDENT AND THEY'RE PUTTING HIM ON MULTIPLE PROJECTS AND THEY BILLED FOR HIM TO BE ON OUR PROJECT.
WHY DO WE WANT TO INVITE THEM AGAIN? BUT, BUT, BUT, BUT I, I THINK YOU'RE, YOU, YOU MAY HAVE, I'M, I'M KIND OF SAYING THAT'S NOT MY JOB TO ANALYZE THAT.
YOU WERE, YOU WERE BEING, IN OTHER WORDS,
[02:05:01]
I'M, I'M SAYING THERE ARE OTHER PEOPLE WHO SHOULD BE EVALUATING THAT.UM, WILL THEY, HAVE THEY READ THE, THERE'S DEFINITELY AN ARGUMENT TO TALK ABOUT, AND THIS GOES BACK TO A BIGGER PROBLEM THAT I THOUGHT THAT I BROUGHT UP BACK WHEN WE WERE LOOKING AT BOND US.
THERE'S ONLY SO MUCH OF A LABOR POOL IN LOS ANGELES, AND YOU REALLY SPENT A MOMENT ON TALKING ABOUT THE DIFFICULTIES WITH MULTIPLE PROJECTS, NOT JUST L-A-U-S-D, NOT JUST SCHOOL DISTRICTS, BUT JUST THE CONSTRUCTION ECOLOGY ALTOGETHER.
AND WHERE DO YOU FIND THE RIGHT, YOU KNOW, SOURCES AND PEOPLE THAT CAN BID THESE PROJECTS.
AND YOU DON'T WANNA BRING IN DOGS, NO OFFENSE, THAT'S NOT MEAN.
CONSTRUCTION COMPANY, YOU WANNA BRING LEGITIMATE CONTRACTORS TO BID AGAINST EACH OTHER.
SO IT'S A, A COMPETITIVE ENVIRONMENT OF GOOD PEOPLE.
UM, AND SO THAT'S, THAT'S A DIFFICULTY THAT WE HAVE.
AND I STILL TO THIS DAY SAY WE CAN GO AND ASK FOR MORE BOND MONEY, BUT WE CAN'T PRODUCE MORE WORK A YEAR THAN THE LABOR FORCES ALLOW US TO BE ABLE TO DO IN A GOOD WAY, IN AN EFFICIENT WAY, AND USING OUR FUNDS IN A MOST APPROPRIATE WAY.
SO YES, WHEN YOU SEE, SEE A PROJECT LIKE THAT, EVERYBODY SHOULD BE CONCERNED.
WHEN YOU LOOK AT THE OVERALL, THE SYSTEMS REALLY ARE IN PLACE, THE LESSONS LEARNED, KEEP GOING.
THERE ARE, YOU KNOW, UH, FACILITIES DOESN'T CONTROL EVERY LITTLE ASPECT OF IT.
THERE IS AN OIG, UM, THERE ARE ATTORNEYS, AND SO THERE IS QUITE A BIT OF DETAILED OVERSIGHT.
YOU, YOU STATED FOR THE PUBLIC.
NOT, AND THERE'S YOU GUYS TOO.
SO IT'S, IT'S ABOUT THE CRITICAL OIG RECOMMENDATION FOR EARLY STAKEHOLDER ENGAGEMENT.
AND I JUST WANNA REITERATE THAT LIMITED EARLY STAKEHOLDER ENGAGEMENT NOT ONLY RESULTS IN A PROJECT THAT DOESN'T ADEQUATELY ADDRESS END USERS NEEDS AND PERSPECTIVES, BUT IT CAN RESULT IN A SIGNIFICANT FINANCIAL IMPLICATION AS WE'RE SEEING WITH THIS PROJECT.
AND SO I JUST THINK IT'S ALWAYS SO IMPERATIVE THAT STAKEHOLDER ENGAGEMENT TAKE PLACE EARLY IN THE PROCESS, NOT AFTER A PROJECT HAS BEEN DESIGNED, NOT AFTER IT'S BEEN PERMITTED, NOT AFTER CONSTRUCTION HAS BEGUN.
UM, BECAUSE ONLY THEN CAN THE FEEDBACK SUBSTAN SUBSTANTIVELY IMPACT A PROJECT.
AND I JUST THINK THIS HAS TO BE SYSTEMIC FOR ALL LARGE PROJECTS.
AND I KNOW THAT THAT'S PART OF THE COMMUNITY ENGAGEMENT PROCESS FOR FSD, BUT I THINK OFTENTIMES WE'RE JUST SEEING IT'S, IT'S NOT HAPPENING.
AND THEN IT RESULTS IN SITUATIONS.
ON THE LARGER PROJECTS, THERE'S A VERY, VERY, UM, DETAILED PROCESS.
SO HERE, THIS IS AN EXAMPLE OF WHAT I WAS SAYING ABOUT A CRITICAL REPLACEMENT PROJECT THAT WAS NARROWLY LOOKED AT, RIGHT? THAT DOESN'T HAPPEN ANYMORE.
THESE KINDS OF PROJECTS ARE UNDERSTOOD TO BE, UH, COMPLEX.
AND THEY HAVE, THEY, THEY ARE NOW DONE UNDER ASSET MANAGEMENT WHO LOOKS AT IT IN A BROADER SENSE.
UM, THAT'S NOT SAYING THAT ANYONE IN, YOU KNOW, SHOULD HAVE DONE THIS DIFFERENTLY.
THAT'S HOW WE WERE SET UP AT THE TIME, UM, TO DO PROJECTS.
AND WHAT DID WE LEARN? YOU NEED TO LOOK AT IT DIFFERENTLY.
AND SO HERE'S THE OTHER THING, UH, ABOUT TALKING TO PRINCIPALS AND STAFF WHEN YOU START A PROJECT, CRITICAL REPLACEMENT WAS A CRITICAL REPLACEMENT.
IT, IT WASN'T DESIGNED TO ADDRESS OTHER ISSUES OR TO ADDRESS WISHLISTS.
ALL PRINCIPALS AND RIGHTFULLY SO, ARE THE VOICE OF THEIR COMMUNITY.
AND THAT DOESN'T MEAN THEY CAN ALWAYS GET WHAT THEY WOULD LIKE, RIGHT? SO IT'S, IT'S A BALANCE ON EVERY, AND IT DEPENDS ON THE KIND OF PROJECTS WE'RE TALKING ABOUT.
SO AS THIS WAS CONCEIVED AS A REPLACEMENT PROJECT, AND YOU CAN SEE SOMEONE SAID IT HERE, YOU KNOW, OH, WE'RE GONNA OPEN IT.
AND THIS NEW AUDITORIUM NOW HAS ALL NEW FLOOR AND NEW CEILING BECAUSE IT ALL GOT WET.
WELL, WE'RE GONNA WALK INTO THIS A HUNDRED YEAR OLD BUILDING WITH THIS OLD FLOOR THAT'S PROBABLY 60 YEARS OLD.
I DON'T REALLY KNOW HOW OLD IT WAS.
I THINK, UM, IT COULD BE THAT THE PRINCIPAL SAID IT, BUT SOMEBODY, THE ON THE PLANT SIDE OR THE CPM, YOU KNOW, THE PEOPLE ON THE MAINTENANCE SIDE SAID, GET THAT OUTTA HERE.
OTHERWISE WE'RE GONNA HAVE TO DO IT IN TWO YEARS AND DO IT NOW.
SO IT, EVERYTHING'S A BALANCING ACT.
THIS, THIS DOESN'T SOUND LIKE A BALANCING ACT.
SO IT SOUNDS TO ME, AND MR. CAMPBELL HAS A QUESTION, IS THAT YES, WE'RE, WHAT WE'RE LESS THE BIG LESSONS WE'RE GONNA LEARN HERE.
NUMBER ONE, YOU BROUGHT IT UP AND I WAS A LITTLE SURPRISED THAT THIS DIDN'T HAPPEN, ESPECIALLY FOR THIS AGE OF A BUILDING.
DESTRUCTIVE TESTING TO SOME LEVEL, TO BE AWARE.
NUMBER TWO, BETTER PROGRAM SCOPING IN THE BEGINNING TO REALLY UNDERSTAND WITH STAKEHOLDERS ACROSS THE BOARD AT EARLY ON,
[02:10:01]
RIGHT? SO MM-HMMSO I, I, I WANNA GO BACK AND UNDERSTAND IN A LITTLE BIT MORE DETAIL, BECAUSE I, I AGREE.
YOU KNOW, MR. HANNER SORT OF ZEROED IN ON SUPERVISION OF THE PROJECT.
UM, I GUESS TO THAT POINT, FOR A PROJECT OF THIS NATURE, FOR THIS PROJECT SPECIFICALLY, WHAT IS THE DISTRICT'S PROCESS? THE DISTRICT'S PROCESS FOR PROVIDING ONSITE MANAGEMENT OF THE DAY-TO-DAY ACTIVITIES OF THE CONTRACTOR? IS THERE, IS THERE AN ASSIGNED RESPONSIBLE PERSON WHO IS THE LEAD AT A PROJECT LIKE THIS? YES.
THE OWNER'S AUTHORIZED REPRESENTATIVE IN THE CONTRACTS HAS SPECIFIC ROLES FOR BOTH THE D THE ARCHITECT AND FOR THE CONTRACTOR.
THE OWNER'S AUTHORIZED REPRESENTATIVE HAS STAFF THAT SUPPORTS HIM IN THE FIELD, PROJECT ENGINEERS, ASSISTANT PROJECT ENGINEERS, SOMETIMES ASSISTANT PROJECT ENGINEERS TOO.
THERE'S, YOU KNOW, A WHOLE LEVEL OF FOLKS, AND THEY HAVE COST ESTIMATING SUPPORT TYPICALLY OUTSIDE THAT, THAT TRAILER ON THE SITE.
SO THE OWNER'S AUTHORIZED REPRESENTATIVE WORKS FOR A SENIOR.
AND SO THAT OWNER'S AUTHORIZED REPRESENTATIVE, IF A PROJECT LIKE THIS, HE'S GOT ONE ASSIGNMENT.
AND I SAID HE, BUT I, YOU KNOW, OBVIOUSLY THEY'RE WOMEN.
UM, BUT, BUT THAT SENIOR THAT HE REPORTS TO TYPICALLY HAS A NUMBER OF PROJECTS.
THEY, THEY HAVE A WHOLE SCALE, HOW MANY PROJECTS, HOW MANY DOLLARS, UH, REGIONAL AREAS.
SO YOU'RE NOT DRIVING ACROSS THIS WHOLE, RIGHT.
SO THERE'S EFFICIENCY BETWEEN THEIR PROJECTS.
AND THEN THAT SENIOR, A NUMBER OF SENIORS REPORT TO WHAT'S CALLED A REGIONAL, A REGIONAL, UM, I'M GONNA FORGET, RPA REGIONAL MANAGER WITHIN PROJECT EXECUTION.
CURRENTLY, THERE ARE FOUR OF THOSE.
AND THEN THE, THOSE REGIONS REPORT TO A DEPUTY DIRECTOR WHO REPORTS IT TO A DIRECTOR.
THEN THERE'S ANOTHER DEPUTY DIRECTOR WHO, WHO TAKES ON A, UH, DIFFERENT KINDS OF PROJECTS AND DIFFERENT MANAGEMENT OF DIFFERENT, UH, OPERATIONS.
SO YOU'VE GOT A DIRECTOR, TWO DEPUTIES, AND THEN UNDER, UNDER THAT DEPUTY OVERSEEING THESE CONSTRUCTION.
YOU'RE DIVIDED BY REGIONS, BY SENIORS INTO OORS WITH TEAMS ON THE SITES.
AND THERE, AND, AND A LARGER PROJECT, $140 MILLION PROJECT WOULD HAVE A BIGGER STAFF.
AND SO HOW MANY DIFFERENT OORS WERE THERE FOR THIS PROJECT OVER THE LIFE OF IT? I WOULD HAVE TO FIND THAT OUT MORE THAN ONE OR TWO.
UNLESS SOMEONE LEFT THE DISTRICT AND WENT TO ANOTHER, YOU KNOW, RETIRED OR WENT SOMEWHERE.
SO, SO AT WHAT POINT, I GUESS, AND, AND, AND I, I WOULD LIKE TO ASK IF, YOU KNOW, OIG CAN COME BACK UP TO RESPOND WHEN, WHEN I'M DONE WITH MY QUESTIONS, BUT NOT ONLY TO WHAT I'VE ASKED, BUT I I GUESS TO ANY STATEMENTS YOU'VE MADE AT, AT WHAT POINT IS THE OAR RESPONSIBLE FOR, YOU KNOW, UH, SO, SO FOR EXAMPLE, WE HAD THE CONTRACTOR WHERE THERE WERE PERIODS BASED ON THE REPORT WHERE, UH, THEY DID NOT HAVE PEOPLE THAT ONSITE THAT THEY WERE REQUIRED TO FOR AN EXTENSIVE PERIOD OF TIME.
AND, AND I DON'T KNOW, I'M NOT IN THE TRADES, BUT, UM, YOU KNOW, MONITORING, WHICH IT SOUNDS LIKE IS A LOT OF WHAT THE OAR IS DOING.
RIGHT? I MEAN, MONITORING WOULD, WOULD, AND ESPECIALLY IF YOU ARE ON SITE, RIGHT? YOU WOULD NOTICE IF THE HUMAN BEING THAT WE WERE PAYING TO BE THERE AND WERE BEING BILLED FOR BEING THERE WAS ACTUALLY THERE, ESPECIALLY IF THEY WEREN'T FOR AN EXTENDED PERIOD OF TIME.
SO, SO AT WHAT POINT DO WE HAVE SOME CULPABILITY AT THAT LEVEL OF THE OAR OR THEIR STAFF FOR NOT ONLY NOT IDENTIFYING THAT, BUT NOT RAISING THAT AS AN ISSUE SUBSEQUENTLY WHEN INVOICES WERE SUBMITTED AND WE WOUND UP PAYING FOR PEOPLE WHO WEREN'T THERE? UM, BECAUSE IT GOES TO A LARGER QUESTION, AND IT'S NOT JUST ABOUT PERSONNEL.
I'VE SEEN THIS IN, YOU KNOW, I, I'VE HAD OCCASION, UH, UH, TO VISIT, UH, SOME CAMPUSES, UH, ONE FOR EXAMPLE, THAT WAS CONSTRUCTED WITHIN THE LAST 15 YEARS WITH BOND DOLLARS CLOSE TO THE OCEAN.
UM, AND, AND I SEE THINGS THERE NOW.
I SEE, YOU KNOW, DECAYING METAL WORK ON THE OUTSIDE AND THINGS LIKE THAT WHERE IT DOESN'T LOOK LIKE THE RIGHT MATERIALS.
WERE SPECKED FOR AN ENVIRONMENT THAT'S A THOUSAND FEET FROM THE OCEAN.
HOPEFULLY THAT WOULD'VE BEEN SOMETHING THAT WOULD'VE BEEN CAUGHT WHEN THE MATERIALS WERE DELIVERED, RIGHT? SO YOU SAY, OH GOSH, THIS ISN'T THE DOUBLE GALVANIZED, YOU KNOW, STUFF.
AND, AND NOW IT'S ROTTING AWAY AND, AND WE HAVE TO PAY TO FIX IT, I'M SURE.
UM, BUT ALL OF THOSE DIFFERENT THINGS SEEM TO COME DOWN TO
[02:15:01]
SOMEBODY ON SITE WHO'S REPRESENTING THE DISTRICT'S INTEREST.AND SO I'M JUST LIKE, WHAT, WAS THERE A GAP THERE? WAS THERE A BREAKDOWN IN THAT PROCESS? WAS THERE SOME CULPABILITY FOR THE OAR ON THIS PROJECT? AND, AND HOW DO WE, UM, HOW DO WE MANAGE THEIR EFFECTIVENESS AND THE QUALITY OF THE SERVICE THEY'RE DELIVERING? SO THEY ARE, THEY ARE MANAGED.
SO FOR ME TO ANSWER THIS SPECIFIC TO THIS PROJECT, I CAN'T.
BUT I DO KNOW, YOU KNOW, OWNERS AUTHORIZED REPRESENTATIVES DO GO THROUGH TRAINING.
THERE ARE SOME THAT ARE STRONGER THAN OTHERS.
THEY SHOULD BE ASSIGNED PROPERLY TO THE RIGHT SCALE JOB.
WE DON'T, I DO NOT KNOW, I'D HAVE TO GO BACK AND ASK THAT OWNER'S AUTHORIZED REPRESENTATIVE DOCUMENTED THAT THE PERSON WASN'T THERE.
DID HE CALL THE OWNER? WAS OF THE PC N THREE? DID HE COMPLAIN TO PCN THREE? AND THEY IGNORED HIM? I MEAN, THEY COULD HAVE, RIGHT? IN OTHER WORDS, WE'D HAVE TO FIND THAT OUT SPECIFICALLY.
UM, BUT THE OWNER'S AUTHORIZED REPRESENTATIVE HAS A CHAIN OF COMMAND TO RAISE ISSUES TO.
SO IN GENERAL, THAT'S WHAT HAPPENS THROUGH THE PROCESS.
SO ON THIS CASE, DO I KNOW IF THERE WAS A BREAKDOWN AT THE OAR OR AT THE SENIOR, OR IF THE PCN THREE PEOPLE WERE, IT, IT APPEARS TO ME THEY WERE DOCUMENTED, RIGHT? THAT THEY WEREN'T PROVIDING.
DID THEY IGNORE IT? THAT'S EVEN WORSE, RIGHT? THAT'S WHY THE PIECE, THAT'S WHY THE PERFORMANCE EVALUATION IS AS LOW AS IT IS.
BUT I THINK YOU, YOU ALSO RAISE ANOTHER QUESTION, WHICH IS, UM, YOU KNOW, HOW DID THE INVOICES GO THROUGH IF THE FOLKS WEREN'T ON THE SITE? BUT THE INVOICE IS FOR WORK IN PLACE, BY AND LARGE, MOST OF THE MONEY IS FOR WORK IN PLACE, WHETHER OR NOT YOU POURED THE CONCRETE, WHETHER OR NOT, RIGHT.
AND THE GC, UM, REQUIREMENTS, GENERAL CONDITION REQUIREMENTS IN GENERAL, THAT IS A DIFFERENT LINE ITEM AND IS TYPICALLY A PERCENTAGE FOR EACH TIED TO THE, UH, RELATIONSHIP OF WORKING PLACE, WORKING PLACE.
WIP IS WHAT THE, WHAT'S ACTUALLY PUT IN THE GROUND OR PUT ON THE BUILDING WHEN YOU RAISE THE ISSUE OF, I'M VERY AWARE OF THE PROJECT YOU JUST REFERENCED, UM, WITH THE, UH, METAL.
SO WE HAD TO CHANGE OUR SPECS.
I THINK WE'VE ACTUALLY ADDRESSED THIS.
AND I KNOW CHRISTINA HAD ACTUALLY MENTIONED YOU GUYS HAVE BEEN UPDATING YOUR BASIS OF DESIGN.
SO I I WE KNOW THAT'S, YEAH, WE ALWAYS ARE.
SO, LAST, STARTING IN 2024, WE STARTED WITH MECHANICAL ELECTRICAL.
WE DID, UM, EMS SYSTEMS. WE DID A LOT OF THE ARCHITECTURAL SYSTEMS, UM, PRODUCTS IN THE MARKETPLACE, CHANGE REGULATIONS FOR MECHANICAL AND ELECTRICAL.
UM, WE'RE DOING A, I MENTIONED THIS BEFORE, UM, THE THIRD OR FOURTH WEEK OF OCTOBER, I'LL BE CHAIRING, UH, LESSONS LEARNED ON HVAC PROJECTS.
WE STILL HAVE SOME LARGE HVAC PROJECTS THAT WERE IN DESIGN.
I LOOKED AT THEM IN JULY AND I SAID, HEY, WE REALLY WANNA, LESSONS LEARNED.
THERE WAS A, YOU KNOW, JUST LIKE THE, YOU KNOW, A HUNDRED YEAR OLD BUILDING ON THIS PART OF THE SITE, A 50-YEAR-OLD.
AND SO WE'RE, I'M PUTTING A WORKSHOP TOGETHER, PROBABLY BE A TWO STEP WORKSHOP TO GATHER EVERYTHING WE LEARN FROM THE GUY IN THE FIELD, TO THE GUY WHO HAS TO CLEAN GUY WHO, YOU KNOW, GETTING EVERYONE WHO WORKS ON DESIGN, DESIGN MANAGEMENT, UH, TOGETHER TO SHARE OUR COLLECTIVE INFORMATION ON HOW TO DO BETTER ON HVAC.
WE'VE GOT ONE QUESTION FROM MR. SORRY, MIKE GOING ON TOO.
I WANNA GIVE HIM A CHANCE, PETERSON.
AND, AND I'M GONNA TRY TO KEEP IT SHORT AND SWEET 'CAUSE YOU'VE ANSWERED HALF HOUR'S WORTH OF QUESTIONS.
I DON'T THINK IT SHOULD BE ON THE DISTRICT TO COVER THOSE COSTS BECAUSE OF DAMAGES THAT A CONTRACTOR FAILED TO DO.
SO, LOOKING AT THE CHANGE ORDER AMOUNT THAT IS IN TWO DIFFERENT CATEGORIES OF REPLACING CEILING AND WALL TILE AND THE TECTUM CEILING PANELS, YOU'RE LOOKING AT ROUGHLY $900,000 WORTH OF WORK.
SO, AND THAT, IF YOU COULD ANSWER JUST SO IS THAT THE RESULT OF THE RING? YES.
THE LIMITED, THE, THE ROOFING WORK INCLUDED IN HIS CONTRACTUAL OBLIGATION
[02:20:02]
WAS LIMITED WHERE HE DID SEISMIC RETROFIT AND POSSIBLY HAD TO PENETRATE THE ROOF.A ROOF THAT'S 40 YEARS OLD THAT HAS FLASHING, THAT'S DECAYING, IS NOT IN HIS CONTRACT.
SO HE WAS NOT FOUND TO BE AT FAULT.
IN OTHER WORDS, THAT WAS LOOKED AT.
SO OTHER, OTHER FOLKS, INDEPENDENT OF FACILITIES, INDEPENDENT OF THE DISTRICT EVALUATED WHETHER OR NOT HE WAS, UH, WHETHER OR NOT HE DESERVED SOME COMPENSATION TOO FOR WHAT HAPPENED TO, HI.
SO ANYWAY, IT WAS ALL RE EVALUATED AND HE WAS NOT FOUND TO HAVE AN ISSUE WITH, UM, NOT PROTECTING THE AREAS OF WORK THAT HE WAS OBLIGATED.
IT WAS FOUND THAT THE, THE ROOFING WAS TOO OLD AND SHOULD BE REPLACED AND THEREFORE WAS ADDED TO THE PROJECT.
I THINK, I THINK ALONG THE LINES OF THAT THOUGH TOO, I MEAN, THE ORIGINAL PROJECT TIMELINE, AS I UNDERSTAND IT, HAD FINAL DELIVERY IN OCTOBER OF 23.
SO THIS RAIN EVENT OCCURRED IN MID AUGUST OF 23.
SO WHEN, WHEN UNDER THE ORIGINAL TIMELINE, THE PROJECT WOULD'VE PROBABLY BEEN SUBSTANTIALLY COMPLETE, WHATEVER WORK WAS BEING DONE ON THE ROOF WOULD'VE BEEN WEATHERED IN AND EVERYTHING ELSE.
SO, I MEAN, THE DELAYS THEMSELVES ALSO CONTRIBUTED, WELL, THE UNFORESEENS PROBABLY HAD PUSHED ALREADY.
GOING, GOING BACK TO, TO, YOU KNOW, SO, SO WE HAVE THESE CONTRACTOR ISSUES.
WE HAVE THEM APPARENTLY INVOICING US FOR PERSONNEL WHO WEREN'T THERE OR, OR FOR A LEVEL MAKING CHANGES AT THE UNILATERALLY WITHOUT GOING THROUGH THE REQUIRED APPROVAL PROCESS OF THE DISTRICT.
I MEAN, AT WHAT POINT DO WE ENGAGE COUNSEL AND SAY, YOU KNOW, THIS CONTRACTOR IS NOT REALLY BEING RESPONSIBLE TO THE TERMS OF THEIR CONTRACT, AND WE NEED TO CONSIDER THEM FOR DEBARMENT SO THAT WE CAN PROTECT NOT ONLY L-A-U-S-D, BUT OTHER PUBLIC ENTITIES WHO WOULD HAVE ACCESS TO THAT DEBARMENT INFORMATION FROM ENGAGING WITH, WITH SOMEBODY WHO'S CONDUCTING THEMSELVES IN THIS WAY.
I MEAN, OBVIOUSLY THAT'S SITUATIONAL AND HAS TO, YOU KNOW, FALL WITHIN PARAMETERS THAT, THAT YOU WOULD KNOW MORE ABOUT.
'CAUSE I'M NOT IN YOUR TRADE MM-HMM
BUT AT, AT, AT WHAT POINT DO WE, DO WE MAKE A, A DEBARMENT RECOMMENDATION? THAT'S A LEGAL DETERMINATION WHEN WE BRING IT TO THEM.
RIGHT? BUT IT HAS TO ARISE FROM AN OPERATIONAL CONSIDERATION, RIGHT? YES.
WELL, THERE ARE, I DON'T KNOW THAT WE USE DEBARMENT.
WE USE, UM, PERFORMANCE DOESN'T EVALUATION DEBARMENT MECHANISM.
I, I DON'T KNOW THAT WE USED DEBARMENT.
BUT WE DO USE, WE DO USE, UM, AT EVERY, UH, BID AND EVALUATION IN A, IN EVALUATION.
I GUESS THE LAST QUESTION TOO, WE TALKED A LOT ABOUT THE CONTRACTOR.
IS THERE ANY, IS THERE ANY ISSUE, IS THERE ANY CULPABILITY HERE IN TERMS OF THE, THE MAGNITUDE OF THE CHANGES AND UNFORESEEN ISSUES THAT MAYBE SHOULD HAVE BEEN WITH THE ARCHITECT? IS, IS THAT ALSO A COMPONENT? OH, YEAH.
THOSE ERRORS AND OMISSIONS ARE AN ISSUE.
THAT'S WHAT I WAS SAYING, YOU KNOW, UM, INTERNALLY, PEOPLE WERE SAYING TO ME, WELL, THIS REALLY ISN'T AN ERROR IN OMISSION, BUT YOU'RE NOT GETTING DOWN TO 5%.
YOU'RE NOT GETTING DOWN THERE.
SO, BUT THE ENTITY THAT DID THE WORK DOES NOT EXIST.
SO THERE'S NO WAY TO GO BACK AND SAY, UH, YOU KNOW, ERRORS AND EMISSIONS, WE'D LIKE YOU TO PAY US BACK, DOESN'T EXIST.
WELL, I SEE STILL, IT'S STILL IN PROGRESS BASED ON THE RE THE REPORT THAT YOU GUYS ARE STILL IN PROGRESS ON THAT MATTER WORKING.
YEAH, BUT THERE'S NO, THE ENTITY DOESN'T EXIST.
THE, THE, THE ENTITY THAT WE HAD A CONTRACT WITH DOES NOT EXIST.
I, I, I THINK, I MEAN, I, I KNOW WE'VE BEEN ON THIS QUITE A WHILE.
IT, IT, YOU KNOW, IF AT LEAST EXTEND THE OFFER TO IG, MAYBE IF, IF THERE'S ANYTHING WELL, I, YOU JUST, WE NEED MY MIND.
YOU, THANK YOU FOR YOUR TIME AND SURE.
I'M GONNA SIT RIGHT OVER HERE.
WE KNOW WHERE NO, I DON'T MIND.
WE KNOW, WE, WE KNOW WHERE TO FIND YOU.
AND, AND, AND I THINK IF THE TAKEAWAY SHOULD BE, UM, YEAH, I DIDN'T LIKE ANY OF THIS EITHER.
AND, UH, I HAVE TO TRANSLATE IT INTO, UH, LESSONS LEARNED.
AND, AND THE REASON I, I BROUGHT UP THE, THE OAR AND THE POTENTIAL CULPABILITY AT THAT LEVEL.
'CAUSE I THINK, I MEAN, YOU GAVE, AND I WANNA THANK YOU.
YOU GAVE ME VERBALLY A CLEARER UNDERSTANDING OF AN ORGANIZATION CHART FOR PART OF THE DISTRICT THAN THEY HAVEN'T, THAN I HAVE BEEN ABLE TO LOCATE ONLINE EVER.
BECAUSE I DON'T THINK THERE'S ONE OUT THERE AT LEAST AVAILABLE TO THE PUBLIC.
WELL, THERE IS SOME, BUT, UM, SO I APPRECIATE THAT.
BUT THAT'S SUCH A CRI, IT SEEMS LIKE SUCH A CRITICAL POSITION, RIGHT? I MEAN, THAT'S, THAT'S THE LAST ONSITE DISTRICT PERSON MM-HMM
WHO'S, WHO'S PRIMARILY ON THE JOB SITE MM-HMM
AND, UM, AND SO IF THERE ARE ANY, YOU KNOW, OPPORTUNITIES TO IMPROVE THE, THE SYSTEM OF ACCOUNTABILITY AND CONTROLS THAT, THAT DISTRICT MANAGEMENT HAS OVER THAT FUNCTION TO MAKE SURE THAT, YOU KNOW, THEY ARE THERE WHENEVER THEY'RE SUPPOSED TO BE.
[02:25:01]
THEY HAVE A CLEAR PATHWAY FOR ESCALATION.AND, YOU KNOW, 'CAUSE GOSH, THAT WOULD BE HORRIBLE IF THEY SAID TO THE CONTRACTOR, HEY, YOU'RE NOT DOING SOMETHING.
YOU'RE BILLING US FOR STUFF THAT'S NOT HERE.
YOU GOT SOMEBODY THAT'S MISSING AND THEY'RE, YEAH, THEY'RE, AND THEY'RE JUST LIKE, OH YEAH, TOUGH LUCK.
WHOA, NO, THAT PERSON WOULD NOT HAVE THAT JOB VERY LONG.
THERE'S A LOT OF SCRUTINY ON O THANK YOU.
BUT I ALSO WANNA SAY OUR FACILITY'S WEBSITE'S BEEN UPDATED.
I'M NOT SURE THAT THE LATEST ORG CHART IS THERE, BUT OKAY.
UH, MR. HOFFMAN, WE, WE, WE GIVE YOU AN OPPORTUNITY TO, IF THERE YOU OR MS. LONG.
UH, COMMITTEE CHAIR, HAMNER, I TOO PLAY SECOND FIDDLE, UM, TO JB 'CAUSE HE'S OUR EXPERT WITHIN OUR OFFICE.
WHEN HEAR YOU, IT COMES TO CONSTRUCTION PROJECTS.
BUT THERE IS A FEW THINGS I WANT TO COMMENT.
EARLIER ON, I SHARED AND GAVE AN OVERVIEW OF, OF MY PARTICULAR UNIT.
AND WE ALSO DO DUE DILIGENCE REVIEWS, WHICH, UM, MIX, UH, MS. O'BRIEN MENTIONED EARLIER, AND I HAD SOME TIME TO DIG THROUGH MY, MY FILES.
SO BACK IN NOVEMBER, 2021, PROCUREMENT DID COME TO THE OFFICE OF THE INSPECTOR GENERAL FOR DUE DILIGENCE, DUE DILIGENCE REVIEW ON PCN THREE.
AND AT THAT TIME, WE FOUND SIGNIFICANT ISSUES AND WE COMMUNICATED THAT TO PROCUREMENT.
SO OUR OFFICE, WE CANNOT MAKE BUSINESS DECISIONS.
WE'RE NOT HERE TO MAKE MANAGEMENT DECISIONS BECAUSE WE'RE AN INDEPENDENT OVERSIGHT BODY.
WE CAN'T SAY PROCUREMENT OR FACILITIES.
BECAUSE ANYTIME IN THE FUTURE WE MAY AUDIT THAT, RIGHT? SO WE GATHER THE FACTS, WE SHARE THE FACTS, AND THE BUSINESS UNIT HAS TO MAKE THAT DECISION.
SO WHEN WE FOUND OUT THAT THE NOTICE, UH, TO AWARD WENT TO PCN THREE, OF COURSE, THAT CONTRACT CONTRACTOR ENDED UP ON OUR RISKLESS.
HENCE THE INCURRED COST AUDIT.
HENCE THE TECHNICAL EVALUATION.
ANY QUESTIONS, MR. SULLIVAN? UH, SO JUST TO TOUCHING ON THE OWNER AUTHORIZED REPRESENTATIVE, WHICH LEMME THROW OUT THERE.
I, I AM ONE OF THOSE IN A LOT OF CASES, NOT FOR THE DISTRICT, BUT, UM, IS THERE ANY RECOMMENDATIONS OIG HAS MADE IN REGARDS TO, UM, YOU KNOW, MAKING SURE THAT THE, UH, REPRESENTATIVES ARE BETTER, UH, THERE'S BETTER OVERSIGHT OVER THEM, BETTER MANAGERIAL OVERSIGHT OVER THESE PROJECTS.
WERE THERE ANY RECOMMENDATIONS THAT WERE MADE IN THAT REGARD? SO, IN MY OPINION, THE OIR, THE OWNER'S AUTHORIZED REPRESENTATIVE HAS SEVERAL METHOD, UH, TO HAVE THE CONTRACT COMPLY WITH THE CONTRACTUAL REQUIREMENT.
SO THAT INCLUDE THE CONSTRUCTION DIRECTIVE SO THAT WITH THE ISSUING THE DIRECTIVE, UH, THE, THE OAR OR THE DISTRICT FACILITIES, YOU KNOW, GIVE LIKE CONTRACTORS, LIKE WARNING, HEY, YOU HAVE TO COMPLY, UH, THIS REQUIREMENT UNTIL THIS DATE.
OTHERWISE WE MAY, YOU KNOW, SUSPEND THE CONTRACTOR'S PAYMENT DUPLICATION ON SUCH DATE.
SO O HAVE SEVERAL METHOD TO, UH, MANAGE, UH, THE PRODUCT IN THE RIGHT WAY.
I, I GUESS FOLLOW UP, BUT, BUT NOTHING, NO RECOMMENDATIONS ARE MADE AS FAR AS THE DISTRICT STAFF BETTER OVERSEEING THEIR OAR AT THAT SITE.
RECOMMENDED IN A TRAINING AT THE SAME, AT THE SAME TIME, BETTER OVERSIGHT FROM THE SENIOR PROJECT MANAGER WHO OVERSEE O AND HIS STAFF.
FAR YOU HAD A QUESTION? NO, I JUST AS A FOLLOW UP, I THINK THE QUESTION REALLY WENT TO, JUST LIKE YOU HAD YOUR FINDINGS AND RECOMMENDATIONS WITH REGARD TO THE CONTRACTOR, WITH REGARD TO THE ARCHITECT, WITH REGARD TO THE SITE ITSELF AND SO ON.
WAS THERE SOMETHING SIMILAR WITH REGARDS TO THE DISTRICT AND, AND THE OAR? I THINK THAT'S PROBABLY THE, THE DIRECT QUESTION HERE.
UH, AS PART OF OUR FINDINGS AND RECOMMENDATION, WE FOUND SEVERAL GAPS, UH, IN, UH, DISTRICT, UH, OVERSIGHT.
THAT INCLUDED THE PREPARATION OF A FAIR COST ESTIMATE THAT WAS PREPARED BY, UH, PROJECT ENGINEER.
SO UNDER THE DISTRICT POLICY, ONLY QUALIFIED OAR CAN PREPARE FAIR COST ESTIMATE FOR, UH, CHANGE ORDERS BETWEEN 25 TO 50 K.
BUT THE PROJECT ENGINEER PREPARED, UH, THAT FAIR COST ESTIMATE.
AND IN ADDITION TO THAT, WE NOTICED THAT THE PROJECT ENGINEER, HE PREPARED FAIR COST ESTIMATE THREE OF THE SIX, UH, QUESTION CHANGE ORDERS.
SO I THINK BETTER OVERSIGHT COULD BE EXERCISED BY THE PROJECT MANAGEMENT TEAM.
ANYTHING ELSE FOR ANYBODY? YES, MS. CARLOS? A QUICK QUESTION.
UM, DOES YOUR OFFICE PREPARE A CUMULATIVE REPORT OF ALL PROJECTS THAT YOU REVIEW AND AUDIT SO THAT THERE'S A, UM, TO SHOW KIND OF LIKE THE OVERALL IMPACT FIN, FINANCIALLY AND OTHERWISE
[02:30:01]
OF FINDINGS? UM, THE OIG, WE DO HAVE AN ANNUAL REPORT, UM, AND OUR LATEST ONE IS POSTED ON OUR, OUR WEBSITE, UH, OIG.LSD.ORG.UM, MR. HOFFMAN, YOU AND YOUR TEAM, MS. LONG, GREAT JOB.
UH, I FEEL EMPOWERED, SO THANK YOU, UM, FOR YOUR, YOUR EFFORTS.
I, I, UNFORTUNATELY, I GOT EIGHT MORE MONTHS LEFT IN MY TENURE, BUT I, YOU KNOW, I, I I, I'M, I'M HAPPY THAT YOU GUYS ARE A PART OF THE, THE COLLECTIVE.
I IMAGINE SOMEONE'S GONNA BE COMING TO PUBLIC COMMENT, HAVE TO UNLE WITH DAVID
UM, AND WITH THAT, UM, WE APPRECIATE YOUR WORK.
I DO HAVE, UH, SOME OLD BUSINESS THAT THAT'S COMING BACK UP, YOU KNOW, FROM OUR BEGINNING OF THE MEETING.
[6. Discussion of Non-Agenda Matters ]
UH, EVEN THOUGH, UM, THIS WAS THE END OF ITEM NUMBER FIVE AND ITEM NUMBER SIX WOULD BE NON AGENDIZED ITEMS. BUT WE DO HAVE, UM, A SPEAKER, UH, FROM THAT WAS NOT HERE, UH, DURING PUBLIC SPEAKING ITEM ONE.SO I'D LIKE TO INVITE, UH, MR. UH, HERNANDEZ.
AND WHILE MR. HERNANDEZ IS COMING UP, I DO WANNA SHARE WITH YOU ON THE DAIS, YOU RECEIVED A, AN EMAIL, UH, FROM, UH, MS. SONYA RE AND, UH, IT WAS ADDRESSED IN RELATIONSHIP TO THE, UH, MY REPRESENTATION OF THE BOC AT THE BOE UH, PRESENTATION.
I JUST WANTED TO BRING IT TO YOUR ATTENTION THAT'S ON YOUR DAIS.
UH, AND I DID WRITE BACK MS. RYDER AND THANK HER FOR HER FOR TIME AND EFFORT.
SO JUST, UM, LETTING YOU GUYS KNOW, HOPEFULLY THAT'S NOT A, A A NO-NO.
HEY, UH, YOU KNOW, IT'S, UH, THANK YOU FOR YOUR PATIENCE.
THE INFORMATION I'M GONNA GIVE YOU IS SHOCKING AND, BUT IT'S TRUTHFUL.
I'M ADDRESSING THE BOND, UH, OVERSIGHT COMMITTEE TO EXPOSE AND BRING AWARENESS OF THE COST OF BONDS.
ONCE YOU GO THROUGH AND YOU DO SO MUCH WORK TO PREPARE THE BOND TO SUBMIT TO THE BOARD OF SUPERVISORS, THE BOARD OF SUPERVISORS APPROVE THE BOND UNKNOWNS TO YOU AND THE SUPERVISORS.
IT GOES THROUGH A PROCESS FOR BANKING, THROUGH BANKING.
AND THE BANKING HAS A PROGRAM CALLED THE AMORTIZATION SCHEDULE.
THE COST OF YOUR BOND, THE AMOUNT OF YOUR BOND IS EQUAL TO THE AMOUNT OF INTEREST THEY CHARGE YOU.
AND IT COMES OUT TO EVEN MORE THAN JUST THE AMOUNT OF THE BOND.
I WAS A, UH, I WAS, I MANAGED, UH, BANK OF AMERICA SEVEN BRANCHES.
I DID ALL KINDS OF THINGS FOR THE BANKS.
AND THIS COMPLETELY SHOCKED ME BECAUSE I WAS WORKING WITH, WITH PEOPLE THAT I WAS TRYING TO GET FINANCED, BUT COULDN'T GET FINANCED 'CAUSE THEY DIDN'T HAVE ANY EQUITY.
THEN I TURNED MY ATTENTION TO SCHOOLS BECAUSE OF THE COST.
AND THE WORK THAT YOU DO IS AMAZING, BUT OUTTA YOUR HANDS, ONCE IT GOES TO THE BOARD OF SUPERVISORS, AND THEY'RE NOT AWARE OF THIS BECAUSE THEY KEEP ADDING OR PROCEEDING WITH THE COST OF THE BONDS.
AND FOR INSTANCE, AND I WILL GIVE YOU A JUST REAL QUICKLY ONE, I HAVE, UH, SEVEN ITEMS, UH, BONITA, BURBANK, CERRITOS, EL CAMINO, LITTLE LAKE CITY LONG BEACH.
I, UH, I CAN TAKE ANY ONE OF THOSE THINGS AND I CAN GIVE YOU THE EXACT NUMBERS.
FOR INSTANCE, UM, FOR THE TOTAL COST FOR ALL THOSE BONDS, THERE WERE SEVEN BONDS, WAS $920 MILLION.
THE COST OF INTEREST THAT THEY CHARGE YOU THE BANKS THROUGH THEORIZATION PROCESS IS 1,000,000,031 $31,120,000.
THAT'S ABOUT A HUNDRED AND SOME ODD PERCENT MORE THAN THE COST OF THE BOND.
UM, AFTER ONLY FIVE YEARS, L-A-U-S-D CAN DEDUCT 72 MONTHLY PAYMENTS OF $4,647,668 AND SAVING $334 MILLION, ET CETERA.
ET ALTHOUGH I WON'T PUT ALL THE NUMBERS DOWN, WHICH IS A SAVING OF 35% OF THE TOTAL AMOUNT OF THE BOND, 35% OF THE TOTAL AMOUNT OF THE BOND, WHICH IS A LOT OF MONEY, WHICH THE, THE, THE, YOU CAN DO.
[02:35:01]
WITH US, THOSE AMOUNT OF MONIES IN FIVE YEARS, YOU CAN SAVE 72 MONTHS.IN FIVE YEARS, YOU SAVE SIX YEARS OF NON HAVING TO MAKE THOSE PAYMENTS BECAUSE WE ELIMINATED THE LARGEST COST, WHICH WAS THE INTEREST.
AND AS YOU DO AN EVALUATION, AS A BANK OFFICER, WE HAVE TO ADJUST THOSE PAYMENTS TO WHAT IS THE BALANCE.
WELL, IF YOU DEDUCT A LOT OF MONEY UP FRONT, A LOT OF MONEY GETS DEDUCTED.
AND I THINK I'VE MET YOU, I THINK YOU'VE ADDRESSED US BEFORE.
UNFORTUNATELY, WE'RE OUT OF TIME.
BUT, UH, BUT VERY INTERESTING, SOMETHING GOOD FOOD FOR THOUGHT I NEED TO PRESENT.
UH, NEXT WEEK I'M GONNA BE PRESENTING THIS EXACT INFORMATION TO THE BOARD OF SUPERVISORS.
IT'S VERY HARD TO CONDENSE ALL THIS INFORMATION.
WELL, WE GAVE YOU THREE, SO WE'RE BETTER.
BUT I, BUT AWARENESS AND KNOWLEDGE IS A TOOL THAT YOU CAN USE TO IMPLEMENT, TO SAVE YOURSELVES.
AND IF YOU HAVE A MORE COMPREHENSIVE WRITTEN DOCUMENT YES, I SENT IT TO YOU.
THAT, THAT CAN BECOME PART OF THE RECORD.
EVEN IF YOU DON'T HAVE TIME TO GO THROUGH ALL OF IT.
IF YOU PRESENT IT TO THE CLERK, LIKE AT THE BOARD, THAT'S GET A WRITTEN, I THINK.
ANY OTHER ITEMS FROM THE BOARD COMMITTEE? WE'RE ALL GOOD.
WE'RE, YOU KNOW, I, I SCREWED THIS UP LAST TIME.
LET ME ADJOURN IT TO THE RIGHT MONTH.