By Scott Wong
Santa Clara County District Attorney’s Office is currently in the process of evaluating allegations that the Cupertino Union School District misused over $25 million in public construction funds, according to a top offical in the county district attorney’s office.
Special Assistant District Attorney Bill Larsen said he received a written complaint against the school district Thursday, but will not be able to determine if a preliminary review or investigation is necessary until the end of the week.
“At this point I can’t speak with any kind of intellingence about this matter,” said Larsen, who also heads the DA’s government integrity unit. “I haven’t reviewed the material.”
Larsen would not disclose the identity of the party who filed the complaint, which alleges the school district violated a state public construction law prohibiting public entities from awarding contracts to construction service providers without a competitive selection process.
A spokesperson from CUSD, which is home to approximately 700 Los Altos students and serves more than 15,200 students in 20 elementary schools and four middle schools in six cities, denied all allegations.
The complaint cites district violations of a provision in the 2000 Fair Competition and Taxpayer Bond Proposal and Savings Act, which states that all architectural and engineering services, including construction project management services, “shall be procured through a fair, competitive selection process … which shall require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities.”
The district’s board named Kitchell CEM on Oct. 22 as the management firm to head the construction of a new middle school at the L. P. Collins Elementary School site without any consideration for a competitive selection process, according to the complaint.
Over a year before, the Sacramento-based firm made over $10,000 in political contributions to a 2001 Measure C campaign committee, composed of district employees and all board members who served in various committee co-directorship capacities. The $80 million bond proposal, $26 million of which has been earmarked for the Collins project, was approved by voters June 5, 2001.
Rick Hausman, CUSD director of business services, said the district followed a specific set of criteria and selected the firm from four respondents, who were deemed by a district panel to be “sufficiently qualified” for a follow-up interview.
Each firm made a presentation and was awarded a score by panel members.
“The selection of the construction management firm is based on a process that was merit-orientated,” Hausman said.
Political contributions made by contracting firms to bond measure supporters is a “customary” practice that occurs throughout the state, Hausman said.
“Contractors are all interested in seeing bonds pass because there is then the potential for work,” Hausman said.
Kitchell could receive nearly $4 million, or 15 percent of construction costs as mandated by state law, for their management services on the Collins project.
