James Sohn
Encyclopedia
James D. Sohn is an Executive Vice President with Seville Construction Services. A boutique firm specializing in the construction industry.
He is also the Ex-Chief of Facilities of the Los Angeles Unified School District
Facilities Division (LAUSD), having been appointed by the Superintendent Ramon C. Cortines
. LAUSD is the 2nd largest school district in the United States. The Facilities Services Division oversees all maintenance and operations, including the construction and modernization program. The bond program is the largest school construction program in the United States, with more than five voter approved bond measures totaling $20.6 billion coupled with billions in matching funds from the State of California.
at the LAUSD prior to becoming a Senior Project Manager for Robert F. Kennedy Community Learning Center. This is considered the largest, most expensive school ever built in the United States at a cost of over $578 million. This school is located on the site where Senator Robert F. Kennedy
was shot and killed in 1968. It can hold 4,200 students and includes a manicured public park, swimming pool and fine art murals. The construction of this school has been criticized for excessive costs while thousands of teachers have been laid off, academic year reduced and programs being slashed. It should be noted that the Bond funds used to build this facility are legally prevented from being used to pay teachers.
James Sohn would leave the LAUSD after having served from 2002–2005, where he would then work as a consultant for URS Corp.
as Program Manager for the Rio Hondo Community College and Los Angeles Community College District
(LACCD) $5.7 billion bond program.
He would return to the LAUSD in July 2009 as a Deputy Chief of Facilities, eventually replacing the previous Chief of Facilities, Guy Mehula. Guy Mehula was extensively and constantly criticized for the use of expensive consultants. Eventually, Guy Mehula was forced out by Superintendent Ramon Cortines.
At the helm of the largest school construction program in LAUSD, James Sohn has introduced numerous efforts at reforming the school construction program by consolidating numerous departments, laying off hundreds of consultants and district employees and slashing consultant rates by 20%. However, a “limited review” audit by LAUSD’s Office of Inspector General (OIG), prompted by whistle-blowers, found “irregularities in $65 million worth of consultant contracts.” This includes costs that exceed pre-approved amounts by 50% and additional contracts worth $31 million without school board approval. The OIG report showed, contrary to normal procedures, James Sohn’s office personally handled these consultant contracts instead of the Facilities Contract staff. It also alleges that James Sohn directed his staff to correct these errors but only after the OIG began it’s investigation. James Sohn’s declaration to decrease 20% consultant cost billing rates to the Board of Education were also shown to be disingenuous by the OIG audit report. The OIG report found James Sohn revised the consultant rate, adding back the 20% for many of the consultant companies. The report also found James Sohn misrepresented the consultant multiplier rate to the Board. The multiplier rate is used to determine “mark up” for consultant profit and overhead. The report noted some contracts had a higher rate even before the 20% reduction. In response to the OIG investigation (written before the OIG completed the review and attached in the final summary), James Sohn issued a memo to Superintendent Ramon Cortines, in which he acknowledges the contract amounts exceeded Board approval and ordered immediate correction. He did not address why his office took direct control of the consultant contracts and not let it customarily go through the Contract Branch. In his memo, he also acknowledges reversing his commitment to the Board regarding the consultant multiplier rate and 20% reduction. He claims the consultant companies stated they could not function with such a small multiplier and threaten to leave LAUSD and work for other projects. The OIG report criticized James Sohn’s statements by noting that in a prior memo to the Board, he had clearly stated that the proposed multiplier rate was the average and was approved by many consultant companies. The OIG investigators also believe the claim that consultant would work on other projects are not believable. As an example, consultants cited in the OIG report made between $185 to $215 an hour. The OIG report also showed a $40,000 “initiation fee” for one of the consultant contracts. James Sohn claims this is for office furniture. Additional significant issues were found by the OIG investigators. Following this report, Superintendent Cortines canceled $3.7 million in contracts cited in the OIG report, specifically the contract that included the “initiation fee” but left open the possibility the consultants may return.
Another audit, by the Los Angeles City Controller, Wendy Greuel, showed a lack of controls and conflict of interests regarding consultant use in LAUSD Facilities bond program, though it noted significant improvement has been introduced since 2006. However, this audit has been criticized for not releasing the names of the individuals cited as “conflict of interest”.
James Sohn has also introduced a new contract type, called Agency Construction Manager (Agency CM) which claim to offer many benefits, including maximizing consultant services, lower costs, increase productivity and increase small business competition (see Construction Management
). Agency CM is an attempt to replace the old consultant model of billing for an hourly rate in favor of a “lump sum task order”. Task orders (Job Order Contracting
) are designed to provide payment for completion of a particular task, regardless of the amount of hours worked. Criticisms with this include the lack of adequate tracking of consultant employees. Comparing district to consultant
staffing would not be accurate. These contracts were also cited in the confidential OIG report as “vague” in detail.
James Sohn has also been criticized for his attempt to purge all non-legally required documents in each employee computer system. After Teamsters
union complaints, LAUSD halted this practice. James Sohn claimed this is a customary process done by construction programs. He did not provide any evidence to support this claim.
James Sohn’s tenure has been relentlessly pursued by Teamsters
union officials. Teamsters officials have complained about layoffs within Facilities that have unfairly targeted district employees, resulting in massive demotions, displacements and layoff separations. Teamsters Representative, Connie Oser, has alleged that district staff have been removed while consultant contracts are continuing to be approved by the Board, consultant employees shuffled between companies, and the use of Agency CM, which causes the tracking of consultants to be difficult. Superintendent Ramon Cortines and Chief of Facilities James Sohn have both claimed consultants have been reduced in far greater numbers then district staff. This claim cannot be verified since the use of Agency CM contracts. A notable protest by Teamsters, was held on February 9, 2010, in reference to Board of Education Report - 253 - 09/10, which include 40 consultant contracts which were approved by the Board, totaling $65 million worth of bond funds. Teamsters complained district employees, many of whom perform similar or same work responsibilities, were being laid off rather than consultants. Teamsters claim this is in violation of California Education code 45308, which state “classified employees shall be subject to layoff for lack of work or lack of funds.” Teamsters allege that approving consultant contracts, which include other contracts in different Board Reports, constitute a violation of California Law, since adequate funds and work remain. Teamsters also allege this is an attempt by the Board, Superintendent Cortines and Chief Facilities James Sohn to privatize the construction program illegally. The Board, Superintendent Cortines and Chief Facilities James Sohn have not denied this. During the Board meeting to discuss BOE-253 - 09/10, Superintendent Cortines was shown to rush through approval of the consultant contracts, against the wishes of Board member Yolie Flores, who wanted more time to discuss. Board members who approved BOE-253 - 09/10 were Monica Garcia, Richard Vladovic, Tamar Galatzan and Nury Martinez. Board members who voted no were Steve Zimmer. Board member Yolie Flores abstained and Marguerite LaMotte was absent.
Allegations have also surfaced against James Sohn’s management staff. Many of his Executive level staff have been prior consultants or have serious allegations of unethical behavior. The Director of Facilities Program Management, Margaret Brown, has a pending lawsuit alleging sexual harassment and retaliation in San Ramon Unified, of which three of four cases have been settled.A former employee, Bassam Raslan, employed before James Sohn’s tenure as Chief but who remained until 2010, was arrested and indicted by a Grand Jury for conflict of interest charges. Bassam pled guilty to once count of conflict of interest.
On January 25, 2011, the Facilities Services Division under James Sohn, released $531 million in additional funds due to savings from decreased construction costs as a result of the downward economy and from reserve funds that were previously locked away. Some questions were raised as to the priorities of the projects funded but many long identified but unfunded projects were ultimately approved via the board action on January 25, 2010. Union officials continue to protest as to why bond district employees were laid off when additional funding is currently available.
One of James Sohn’s highest priorities is the use of renewable energy. On February 10, 2011, LAUSD officials gathered at Canoga Park High School to celebrate the activation of a 273 kilowatt (kW), 896 solar panel system on the school’s rooftops. James Sohn’s goal is to achieve 21 megawatts of power in the next three years installing solar panels in various schools. Officials claim this will save approximately $112 million in utility costs over a 20 years.
A special Los Angeles Times report documenting waste, corruption, nepotism and other issues was released on February 27, 2011. Numerous individuals were named in the report including Sylvia Scott-Hayes, LACCD trustee, who currently has two family members, niece Monica Ramirez and nephew Rick Ramirez working for the bond program. Mona Field, trustee and former president of the Board, who worried about potential fallout from hiring Capstone auditors due to their extensive experience. Capstone was hired November 4, 2009. To date, Mona Field will not release the audit findings, only the March 2010 recommendations. She would also hire former LAUSD employee Christine Marez to run the whistle-blower protection program, who has no prior experience as an investigator or auditor. Larry Eisenberg
, Executive Director of Facilities for LACCD, who advocated for quick payment for contractors who failed quality control checks, argued against suing and had urged transfers of inspectors who would documented construction flaws against the contractors.
One particular contractor, FTR International of Irvine, would cause the district to spend an additional $3.5 million to fix sub-quality work due to incorrect temperatures in laboratories, missing exit signs, hanging pipes, crooked cabinet’s and other issues at LA Valley College. Instead of withholding money to force FTR to repair the work, Larry Eisenberg and James Sohn released most of the funds. James Sohn would send a letter to FTR citing “Job well done” even though inspectors had issued over 368 citations. This project would win the Western Council of Construction Consumers 2009 Distinguished Project Award. Afterwards, FTR would be awarded a larger contract totaling $113 million. Many of these new FTR contracts were for design-build
projects where the district does not have to select the lowest bidder.
James Sohn would employ numerous staff through SASM Consulting for LACCD. This company is owned by Michael Kuehn, a longtime colleague of James Sohn. Kuehn and Sohn would work together in numerous projects from Seattle Transit, Continental Airlines and LAUSD. They also invested in property together in Cerritos in 2000 before Kuehn would transfer his share to Sohn in 2001. LACCD would hire over 17 individuals from SASM with Sohn personally approving 5 of them. This has cost LACCD over $8 million for their services but payroll only accounted for $3 million. $5 million went to SASM and URS for profit and overhead. LA Times noted that the corporate address of SASM is a store full of mailboxes. The SASM mailbox there cost $54 for three months to rent.
He is also the Ex-Chief of Facilities of the Los Angeles Unified School District
Los Angeles Unified School District
Los Angeles Unified School District is the largest public school system in California. It is the 2nd largest public school district in the United States. Only the New York City Department of Education has a larger student population...
Facilities Division (LAUSD), having been appointed by the Superintendent Ramon C. Cortines
Ramon C. Cortines
Ramon Curtis Cortines is a retired American educator who was the Superintendent of the Los Angeles Unified School District in Los Angeles, California from January 1, 2009 to April 16, 2011....
. LAUSD is the 2nd largest school district in the United States. The Facilities Services Division oversees all maintenance and operations, including the construction and modernization program. The bond program is the largest school construction program in the United States, with more than five voter approved bond measures totaling $20.6 billion coupled with billions in matching funds from the State of California.
Education
James Sohn holds a Bachelor of Arts degree from the University of California, Berkeley; a Master of Business Administration from University of Phoenix, and a Master of Arts from Kings College in London. He is a LEED accredited professional, licensed general contractor in the state of California and a member of the London-based think tank, International Institute of Strategic Studies.Tenure at Los Angeles Unified School District
James Sohn initially worked as a consultantConsultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...
at the LAUSD prior to becoming a Senior Project Manager for Robert F. Kennedy Community Learning Center. This is considered the largest, most expensive school ever built in the United States at a cost of over $578 million. This school is located on the site where Senator Robert F. Kennedy
Robert F. Kennedy
Robert Francis "Bobby" Kennedy , also referred to by his initials RFK, was an American politician, a Democratic senator from New York, and a noted civil rights activist. An icon of modern American liberalism and member of the Kennedy family, he was a younger brother of President John F...
was shot and killed in 1968. It can hold 4,200 students and includes a manicured public park, swimming pool and fine art murals. The construction of this school has been criticized for excessive costs while thousands of teachers have been laid off, academic year reduced and programs being slashed. It should be noted that the Bond funds used to build this facility are legally prevented from being used to pay teachers.
James Sohn would leave the LAUSD after having served from 2002–2005, where he would then work as a consultant for URS Corp.
URS Corp.
URS Corporation is an engineering design firm and a U.S. federal government contractor. Headquartered in San Francisco, California, URS is a full-service, global organization with offices located in the Americas, Europe and Asia-Pacific.-History:...
as Program Manager for the Rio Hondo Community College and Los Angeles Community College District
Los Angeles Community College District
The Los Angeles Community College District is the community college district serving Los Angeles, California and some of its neighboring cities. In addition to typical college aged students, the LACCD also serves adults of all ages. Indeed, over half of all LACCD students are older than 25 years...
(LACCD) $5.7 billion bond program.
He would return to the LAUSD in July 2009 as a Deputy Chief of Facilities, eventually replacing the previous Chief of Facilities, Guy Mehula. Guy Mehula was extensively and constantly criticized for the use of expensive consultants. Eventually, Guy Mehula was forced out by Superintendent Ramon Cortines.
At the helm of the largest school construction program in LAUSD, James Sohn has introduced numerous efforts at reforming the school construction program by consolidating numerous departments, laying off hundreds of consultants and district employees and slashing consultant rates by 20%. However, a “limited review” audit by LAUSD’s Office of Inspector General (OIG), prompted by whistle-blowers, found “irregularities in $65 million worth of consultant contracts.” This includes costs that exceed pre-approved amounts by 50% and additional contracts worth $31 million without school board approval. The OIG report showed, contrary to normal procedures, James Sohn’s office personally handled these consultant contracts instead of the Facilities Contract staff. It also alleges that James Sohn directed his staff to correct these errors but only after the OIG began it’s investigation. James Sohn’s declaration to decrease 20% consultant cost billing rates to the Board of Education were also shown to be disingenuous by the OIG audit report. The OIG report found James Sohn revised the consultant rate, adding back the 20% for many of the consultant companies. The report also found James Sohn misrepresented the consultant multiplier rate to the Board. The multiplier rate is used to determine “mark up” for consultant profit and overhead. The report noted some contracts had a higher rate even before the 20% reduction. In response to the OIG investigation (written before the OIG completed the review and attached in the final summary), James Sohn issued a memo to Superintendent Ramon Cortines, in which he acknowledges the contract amounts exceeded Board approval and ordered immediate correction. He did not address why his office took direct control of the consultant contracts and not let it customarily go through the Contract Branch. In his memo, he also acknowledges reversing his commitment to the Board regarding the consultant multiplier rate and 20% reduction. He claims the consultant companies stated they could not function with such a small multiplier and threaten to leave LAUSD and work for other projects. The OIG report criticized James Sohn’s statements by noting that in a prior memo to the Board, he had clearly stated that the proposed multiplier rate was the average and was approved by many consultant companies. The OIG investigators also believe the claim that consultant would work on other projects are not believable. As an example, consultants cited in the OIG report made between $185 to $215 an hour. The OIG report also showed a $40,000 “initiation fee” for one of the consultant contracts. James Sohn claims this is for office furniture. Additional significant issues were found by the OIG investigators. Following this report, Superintendent Cortines canceled $3.7 million in contracts cited in the OIG report, specifically the contract that included the “initiation fee” but left open the possibility the consultants may return.
Another audit, by the Los Angeles City Controller, Wendy Greuel, showed a lack of controls and conflict of interests regarding consultant use in LAUSD Facilities bond program, though it noted significant improvement has been introduced since 2006. However, this audit has been criticized for not releasing the names of the individuals cited as “conflict of interest”.
James Sohn has also introduced a new contract type, called Agency Construction Manager (Agency CM) which claim to offer many benefits, including maximizing consultant services, lower costs, increase productivity and increase small business competition (see Construction Management
Construction management
Construction Project Management is the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be complete mingement is project management that applies...
). Agency CM is an attempt to replace the old consultant model of billing for an hourly rate in favor of a “lump sum task order”. Task orders (Job Order Contracting
Job order contracting
Job order contracting is a way for organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts...
) are designed to provide payment for completion of a particular task, regardless of the amount of hours worked. Criticisms with this include the lack of adequate tracking of consultant employees. Comparing district to consultant
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...
staffing would not be accurate. These contracts were also cited in the confidential OIG report as “vague” in detail.
James Sohn has also been criticized for his attempt to purge all non-legally required documents in each employee computer system. After Teamsters
Teamsters
The International Brotherhood of Teamsters is a labor union in the United States and Canada. Formed in 1903 by the merger of several local and regional locals of teamsters, the union now represents a diverse membership of blue-collar and professional workers in both the public and private sectors....
union complaints, LAUSD halted this practice. James Sohn claimed this is a customary process done by construction programs. He did not provide any evidence to support this claim.
James Sohn’s tenure has been relentlessly pursued by Teamsters
Teamsters
The International Brotherhood of Teamsters is a labor union in the United States and Canada. Formed in 1903 by the merger of several local and regional locals of teamsters, the union now represents a diverse membership of blue-collar and professional workers in both the public and private sectors....
union officials. Teamsters officials have complained about layoffs within Facilities that have unfairly targeted district employees, resulting in massive demotions, displacements and layoff separations. Teamsters Representative, Connie Oser, has alleged that district staff have been removed while consultant contracts are continuing to be approved by the Board, consultant employees shuffled between companies, and the use of Agency CM, which causes the tracking of consultants to be difficult. Superintendent Ramon Cortines and Chief of Facilities James Sohn have both claimed consultants have been reduced in far greater numbers then district staff. This claim cannot be verified since the use of Agency CM contracts. A notable protest by Teamsters, was held on February 9, 2010, in reference to Board of Education Report - 253 - 09/10, which include 40 consultant contracts which were approved by the Board, totaling $65 million worth of bond funds. Teamsters complained district employees, many of whom perform similar or same work responsibilities, were being laid off rather than consultants. Teamsters claim this is in violation of California Education code 45308, which state “classified employees shall be subject to layoff for lack of work or lack of funds.” Teamsters allege that approving consultant contracts, which include other contracts in different Board Reports, constitute a violation of California Law, since adequate funds and work remain. Teamsters also allege this is an attempt by the Board, Superintendent Cortines and Chief Facilities James Sohn to privatize the construction program illegally. The Board, Superintendent Cortines and Chief Facilities James Sohn have not denied this. During the Board meeting to discuss BOE-253 - 09/10, Superintendent Cortines was shown to rush through approval of the consultant contracts, against the wishes of Board member Yolie Flores, who wanted more time to discuss. Board members who approved BOE-253 - 09/10 were Monica Garcia, Richard Vladovic, Tamar Galatzan and Nury Martinez. Board members who voted no were Steve Zimmer. Board member Yolie Flores abstained and Marguerite LaMotte was absent.
Allegations have also surfaced against James Sohn’s management staff. Many of his Executive level staff have been prior consultants or have serious allegations of unethical behavior. The Director of Facilities Program Management, Margaret Brown, has a pending lawsuit alleging sexual harassment and retaliation in San Ramon Unified, of which three of four cases have been settled.A former employee, Bassam Raslan, employed before James Sohn’s tenure as Chief but who remained until 2010, was arrested and indicted by a Grand Jury for conflict of interest charges. Bassam pled guilty to once count of conflict of interest.
On January 25, 2011, the Facilities Services Division under James Sohn, released $531 million in additional funds due to savings from decreased construction costs as a result of the downward economy and from reserve funds that were previously locked away. Some questions were raised as to the priorities of the projects funded but many long identified but unfunded projects were ultimately approved via the board action on January 25, 2010. Union officials continue to protest as to why bond district employees were laid off when additional funding is currently available.
One of James Sohn’s highest priorities is the use of renewable energy. On February 10, 2011, LAUSD officials gathered at Canoga Park High School to celebrate the activation of a 273 kilowatt (kW), 896 solar panel system on the school’s rooftops. James Sohn’s goal is to achieve 21 megawatts of power in the next three years installing solar panels in various schools. Officials claim this will save approximately $112 million in utility costs over a 20 years.
Construction Safety
James Sohn would work to increase the speed of DSA approved projects. On September 14, 2010 the Board of Education approved a Memorandum of Understanding (MOU) with the Division of State Architect (DSA) that would provide up to $8 Million dollars to fund a DSA Certification Pilot Program that sought to relieve the backlog of DSA Certification files backlog that has developed over the last 12 years of construction. Even with this pilot program approved, construction delay, quality and safety would continue to plague LAUSD. A few months after the MOU, The Division of State Architect warned the district that excessive cutbacks made to Inspector positions at LAUSD construction cites could affect "safety and quality" of schools and the district would be held liable. The district had laid off 37 out of 112 state-certificated inspectors in December of 2010.. The layoffs was based on projections that would later be deemed incorrect. Teamsters would cite this information as further evidence that the Board of Education violated California Education Code, knowingly laid off district employees for the purpose of privatizing construction, and used the district general fund deficit as cover for bond fund reductions.Resignation
James Sohn would expectingly resign on March 2011. No official reason was given by the Board but in an internal email sent by Sohn, would state that he would be pursuing a job offer from a company based in San Fransisco that is not affiliated with LAUSD. Coincidently, his resignation would come days after the Los Angeles Times would release a full investigative report on the Los Angeles Community College bond program that detailed widespread waste and abuse of government funds. He would eventually be hired as Executive Vice President of Seville Construction Services, Inc., which has done business with LAUSD and other government organizations. Other staff listed on Seville Construction Services, Inc. would also be former LAUSD consultants.Tenure at Los Angeles Community College District
After James Sohn’s tenure at LACCD, an audit by Capstone Advisory Group LLC, showed misuse of bond funds and other irregularities. It called for a whistle-blower protection program and new stringent financial controls. The recommendations were released, but not the full report, after he had left LACCD for LAUSD, but referenced the years during James Sohn’s tenure in charge of the LACCD’s BuildLACCD construction program(2007–2009).A special Los Angeles Times report documenting waste, corruption, nepotism and other issues was released on February 27, 2011. Numerous individuals were named in the report including Sylvia Scott-Hayes, LACCD trustee, who currently has two family members, niece Monica Ramirez and nephew Rick Ramirez working for the bond program. Mona Field, trustee and former president of the Board, who worried about potential fallout from hiring Capstone auditors due to their extensive experience. Capstone was hired November 4, 2009. To date, Mona Field will not release the audit findings, only the March 2010 recommendations. She would also hire former LAUSD employee Christine Marez to run the whistle-blower protection program, who has no prior experience as an investigator or auditor. Larry Eisenberg
Larry Eisenberg
Lawrence Eisenberg is a science fiction writer. He is best known for his short story "What Happened to Auguste Clarot?," published in Harlan Ellison's groundbreaking anthology Dangerous Visions...
, Executive Director of Facilities for LACCD, who advocated for quick payment for contractors who failed quality control checks, argued against suing and had urged transfers of inspectors who would documented construction flaws against the contractors.
One particular contractor, FTR International of Irvine, would cause the district to spend an additional $3.5 million to fix sub-quality work due to incorrect temperatures in laboratories, missing exit signs, hanging pipes, crooked cabinet’s and other issues at LA Valley College. Instead of withholding money to force FTR to repair the work, Larry Eisenberg and James Sohn released most of the funds. James Sohn would send a letter to FTR citing “Job well done” even though inspectors had issued over 368 citations. This project would win the Western Council of Construction Consumers 2009 Distinguished Project Award. Afterwards, FTR would be awarded a larger contract totaling $113 million. Many of these new FTR contracts were for design-build
Design-Build
Design-build is a project delivery system used in the construction industry. It is a method to deliver a project in which the design and construction services are contracted by a single entity known as the design–builder or design–build contractor...
projects where the district does not have to select the lowest bidder.
James Sohn would employ numerous staff through SASM Consulting for LACCD. This company is owned by Michael Kuehn, a longtime colleague of James Sohn. Kuehn and Sohn would work together in numerous projects from Seattle Transit, Continental Airlines and LAUSD. They also invested in property together in Cerritos in 2000 before Kuehn would transfer his share to Sohn in 2001. LACCD would hire over 17 individuals from SASM with Sohn personally approving 5 of them. This has cost LACCD over $8 million for their services but payroll only accounted for $3 million. $5 million went to SASM and URS for profit and overhead. LA Times noted that the corporate address of SASM is a store full of mailboxes. The SASM mailbox there cost $54 for three months to rent.