I RP Pre se nta tio n Ro b e rt L a ug hto n Dire c to r-E nviro - PowerPoint PPT Presentation

I RP Pre se nta tio n Ro b e rt L a ug hto n Dire c to r-E nviro nme nta l He a lth a nd Sa fe ty L o s Ang e le s Unifie d Sc ho o l Distric t

Outline  I ntro duc tio n  I ndire c t c o sts  F e e e stima tio n  Co nflic t o f I nte re st  Billing I ssue s  E xa mple s  28 th St  Aza le a Ac a de mie s  E xide  Clo sing

I ntro duc tio n  L AUSD is the se c o nd la rg e st sc ho o l distric t in the na tio n.  We a re c urre ntly fina lizing the la rg e st sc ho o l c o nstruc tio n pro g ra m in the na tio ns histo ry, ha ving b uilt a nd o pe ne d 132 b ra nd ne w sc ho o ls.  During the c o urse o f the ne w c o nstruc tio n pro g ra m, we c le a ne d up o ve r 600 a c re s o f b ro wnfie lds.  We c urre ntly o pe ra te 79 millio n sq ua re fe e t o f b uilding spa c e o n 6657 a c re s o f la nd.  We a re in the b e g inning sta g e s o f a $9 b illio n c o mpre he nsive mo de rniza tio n pro g ra m o f e xisting c a mpuse s.

F e e s to DT SC during the Ne w • Sc ho o l Co nstruc tio n Pro g ra m e xc e e de d $17 millio n. Histo ric E xpe nditure s

I ndire c t Co sts  DT SC b illing pra c tic e s inc lude “indire c t c o sts”. DT SC utilize s He a lth a nd Sa fe ty Co de 25269.4 a s justific a tio n, a nd b ills L AUSD e xa c tly 154 % indire c t ra te fo r a ll invo ic e s, o r 61% o f e ve ry invo ic e g o e s to indire c t.  Ba se d o n the e xpe nditure s during the Ne w Sc ho o l Co nstruc tio n Pro g ra m, (c urre nt indire c t ra te s), $10,370,000 we nt to o ve rhe a d. Ro ug hly 61%  I ndire c t c o sts a re fo r suppo rt func tio ns, typic a lly a s de sc rib e d in the Ca lifo rnia Sc ho o l Ac c o unting Ma nua l:  I ndire c t c o sts are ag e nc y-wide , g e ne ral manag e me nt c o sts (i.e ., ac tivitie s fo r the dire c tio n and c o ntro l o f the ag e nc y as a who le ). Ge ne ral manag e me nt c o sts c o nsist o f administrative ac tivitie s ne c e ssary fo r the g e ne ral o pe ratio n o f the ag e nc y, suc h as ac c o unting , b udg e ting , payro ll pre paratio n, pe rso nne l se rvic e s, purc hasing , and c e ntralize d data pro c e ssing  update s the rate a sc ho o l distric t c an use annually in the a wa rd T he USDE and CDE a nd ma na g e me nt o f fe de ra l (a nd sta te ) c o ntra c ts, g ra nts, a nd o the r a ssista nc e a rra ng e me nts g o ve rne d b y Offic e o f Ma na g e me nt a nd Budg e t. Altho ug h this isn’ t dire c tly re la te d, it do e s g ive a n e xa mple o f a ppro pria te indire c t fe e s, a nd the struc ture tha t is in pla c e so tha t ina ppro pria te c ha rg e s a re no t le vie d. Spe c ific g uida nc e is pro vide d a nnua lly to e a c h L E A fo r the a ppro pria te indire c t ra te fo r the ye a r. T he a mo unt ra ng e fro m 0% to 23.61%, with L AUSD b e ing a t 3.47% fo r fisc a l ye a r 16/ 17

E stima ting F e e s  In the o ry, He a lth a nd Sa fe ty Co de 25269.4 so unds like g o o d pra c tic e . E ng a g e DT SC a nd ne g o tia te up fro nt the ne c e ssa ry fe e s. Ho we ve r, this is o fte n ina c c ura te o r no t do ne in a time ly fa shio n.  F urthe r, this is no t tie d to a n a c c ura te le ve l o f e ffo rt. Ho w muc h inspe c tio n is invo lve d a ppe a rs to b e up to e a c h DT SC e mplo ye e , a nd do e s no t a ppe a r to b e tie d to a ny spe c ific mile sto ne s.  DT SC fie ld pe rso nne l sho uld b e limite d to inspe c tio n/ c o nfirma tio n, no t pro je c t ma na g e me nt.  A ne w mo de l sho uld b e imple me nte d, tha t tie s inspe c tio n to c o difie d mile sto ne s, a nd a n upfro nt pe rc e nta g e b a se d fe e .  T he fe e mo de l c urre ntly e mb e dde d in T itle 24, a dministe re d b y the Sta te Arc hite c t wo uld g re a tly stre a mline this pro c e ss, a nd c re a te c la rity fo r the pro pe rty de ve lo pe rs in the sta te , whe the r the y a re o the r g o ve rnme nta l a g e nc ie s, o r priva te de ve lo pe rs.

E stima ting F e e s  E mb e dde d in T itle 24 is the fe e struc ture , a nd a dministra tive g uide line s a n a g e nc y/ de ve lo pe r pa ys in o rde r to sub mit a nd g e t DSA a ppro va l o f a pro je c t.  Struc tura l Sa fe ty Re vie w F e e s-0.6-0.7%  F ire & L ife Sa fe ty Re vie w F e e s-0.01-0.3%  Ac c e ss Co mplia nc e Re vie w F e e s-0.04-0.5%  F o r full pro je c t re vie w, this wo uld b e so me whe re in the ra ng e o f .74%-1.5%  I nspe c tio n is c o nduc te d b y DSA c e rtifie d inspe c to r, a nd c urre ntly a t L AUSD runs b e twe e n 3%-5% o f c o nstruc tio n c o st.  I mple me nting this type o f syste m fo r DT SC wo uld e limina te b illing a lmo st e ntire ly, pro vide c la rity a nd c o nsiste nc y to the de ve lo pme nt c o mmunity, a nd re q uire DT SC to live within the ir b udg e t.

Co nflic t o f I nte re st  I n o rde r to e ng a g e DT SC fo r a pro po se d c le a n up a c tivity a n a g e nc y/ de ve lo pe r is re q uire d to e nte r into a VCA (Vo lunta ry Cle a n-up Ag re e me nt).  T his ha s se t up a c o nflic t if the “pa ying pa rty’ s” c o nta mina tio n e xte nds b e yo nd the pro pe rty line . T he DT SC a ppe a rs to g ra nt c o nside ra tio n to the e ntity tha t is pa rty to the VCA.  T his is a lso c o mpo unde d if the pro pe rtie s in q ue stio n a re g o ve rne d b y two diffe re nt DT SC o ffic e s, e .g ., Bro wnfie lds a nd Sc ho o ls tha t ha ve diffe re nt c le a ra nc e le ve ls a nd diffe ring c ulture s.

Billing I ssue s  No c le a r de finitio n o f e mplo ye e s tha t a re dire c t a nd tho se tha t a re indire c t. I t a ppe a rs to c ha ng e during the c o urse o f pro je c ts.  L AUSD ha s ha d multiple insta nc e s o f b e ing dire c t b ille d fo r e mplo ye e s tha t a re o ffic e b a se d, a nd sho uld b e indire c t.  No c le a r dispo sitio n o f indire c t fe e struc ture .  Unc le a r a s to wha t ro le DT SC fie ld pe rso nne l sho uld ho ld (Pro je c t Ma na g e r/ Re g ula to r/ I nspe c to r).

28 th Stre e t E le me nta ry Sc ho o l Be g inning in 2004, a se rie s o f inve stig a tio ns we re c o nduc te d a t 28 th Stre e t E  le me nta ry Sc ho o l to e va lua te impa c ts fro m a n o ff-site so urc e , Pa la c e Pla ting , whic h wa s a me ta l finishing pla nt tha t o pe ra te d fro m 1962 to 2011.  T e tra c hlo ro e thyle ne (PCE ), o rig ina ting fro m Pa la c e Pla ting , wa s ide ntifie d in 7 b ung a lo ws (12 c la ssro o ms) a t le ve ls e xc e e ding DT SC a c tio n le ve ls.  T he Distric t imple me nte d mitig a tio n me a sure s a t the b ung a lo ws a s a re sult o f the PCE .  T he Distric t c o nduc ts q ua rte rly syste m c he c ks o f the HVAC, CSV, a nd a ir purific a tio n units to c o nfirm tha t mitig a tio n me a sure s a re func tio ning pro pe rly. I n a dditio n, indo o r a ir sa mpling fo r PCE is c o nduc te d o n a n a nnua l b a sis.  I n 2008, DT SC issue d a n I mmine nt a nd Sub sta ntia l E nda ng e rme nt Orde r to inve stig a te a nd re me dia te re le a se s a t Pa la c e Pla ting . I n 2011, the L o s Ang e le s City Atto rne y’ s E nviro nme nta l Justic e a nd Pro te c tio n Unit a ppro ve d a se ttle me nt with Pa la c e Pla ting . Pursua nt to the se ttle me nt a g re e me nt a nd a mo ng o the r re q uire me nts, Pa la c e Pla ting wa s to re me dia te a ll c o nta mina tio n.  I n the nine ye a rs sinc e the I mmine nt a nd Sub sta ntia l E nda ng e rme nt Orde r wa s issue d to Pa la c e Pla ting , no re me dia tio n ha s o c c urre d.  I n the mo st re c e nt DT SC re vie ws o f Pa la c e Pla ting ha ve indic a te d tha t the sc ho o l is a so urc e de spite the Distric t e xpe nding sig nific a nt funds to inve stig a te a nd dispro ve this the o ry.  12 ye a rs a fte r disc o ve ry o f the issue , a nd 6 ye a rs a fte r a n a ppro ve d se ttle me nt, c le a n up ha s still no t o c c urre d, a nd the distric t c o ntinue s to e xpe nd the se ttle me nt do lla rs.