Largest U.S. Community College District Cracks Down on Contractors

LOS ANGELES — The Los Angeles Community College District is instating new contract requirements that could eliminate the agreement between the district and Turner Construction Co. — part of an effort to reform a $6 billion building program that a state audit earlier this year reported as flawed.

Turner serves as the college program manager and oversees all building program construction activity at West Los Angeles College in Culver City, one of the nine colleges in the nation’s largest community college district.

The district’s Building Program is a 14-year, $6 billion program to build new and renovate existing academic facilities, sports areas, arts complexes and administrative buildings, among other projects. It is funded mostly by taxpayer-approved bonds and supplemented by additional funding from the state of California.

The district reports that $3 billion has already been spent on hundreds of separate projects, with hundreds more in the planning or construction stages. The district will meet with Turner at a hearing next month when the company will have a chance to respond, according to the district.

A Los Angeles Times investigation of the program alleged that $5.7 billion had been mismanaged due to poor planning, a newly built science complex in need of extensive repairs and generous pay to contractors.

A letter sent to Turner — the third of its kind sent this month — states that Turner permitted contractors to perform work at West Los Angeles College without submitting written bids, written contracts, or payment or performance bonds.

The district also alleges that Turner allowed contractors to work without enrolling in the district’s insurance program or providing certified payroll records or other proof of compliance with prevailing wage laws. On Oct. 17, the District sent similar letters to FTR International Inc. and Gateway Science and Engineering Inc.

“By informing Turner of our intent to terminate its college program management contract, we are making it clear that no waste or mismanagement in our Building Program will be tolerated,” said Chancellor Daniel LaVista. “If anyone thought that the letters to FTR and Gateway were our only dramatic actions to improve accountability, they were mistaken.”

Turner Construction issued a statement in response to the letter.

"As we have for the past nine years, we will continue to provide our services for the benefit of the College,” said Chris McFadden, spokesman for Turner Construction Co. “ We are confident that we will resolve our contractual issues and the College and its students will continue to benefit from the facilities that have successfully been delivered."

Miguel Santiago, president of the district’s Board of Trustees, said the board is aggressively rooting out waste and mismanagement in the building program.

“We will not tolerate shoddy work or underperforming firms at LACCD,” he said. “Today’s actions are another step in our efforts to reform the building program. We are committed to taking whatever steps are necessary to protect the taxpayers of Los Angeles, including terminating multi-million-dollar contracts.”

LaVista said that as due process requires, each contractor will have an opportunity to explain its actions prior to a decision by the Board of Trustees.

“At the same time, at the direction of the Board, we will continue to reform the Building Program and take whatever steps are necessary to protect taxpayer dollars and deliver results,” he said.

The district covers nearly 900 square miles and serves 25 million students annually in more than 36 cities in Los Angeles County.