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Briefs • Speakers Blast Board of Education

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Briefs • Speakers Blast Board of Education photos • CECI Soiree Under the Stars Page 10 briefs • Speakers blast Board of Education rudy cole • photos • 2nd and 3rd Generation for $1.5-million “investment” home purchase Page 2 Opinions, reflections Page 6 Beverly High Graduates Pages 8-9 ALSO ON THE WEB Beverly Hills www.bhweekly.com WeeklySERVING BEVERLY HILLS • BEVERLYWOOD • LOS ANGELES Issue 665 • June 28 - July 4, 2012 Summer Reading What are your neighbors reading? cover story • pages 10-11 City Council reasserts opposition to tunnel under Beverly High, hires special counsel Princeton Credit, LLC, one of three ven- really beneficial where we’re not spending briefs • Libow represented BHUSD rudy cole • New graduation photos • in “investment” home purchase Page 3 board debacle Page 6 Pages 8-9 dors to respond to the district’s request for money on interest, we’re spending money ALSO ON THE WEB Beverly Hills www.bhweekly.com proposal, will finance $1.6 million. on principal, which means we’re building President Brian Goldberg has said the equity.” briefs municipal financing the BHUSD is get- Based on his research, Goldberg said WeeklySERVING BEVERLY HILLS • BEVERLYWOOD • LOS ANGELES Issue 664 • June 21 - June 27, 2012 ting for the home purchase is favorable he believed the house would rent for Speakers blast Board of because it requires no money down. Prior approximately $4,500–$5,500 on the open Education for approving to Tuesday’s vote, the BHUSD made market. a $46,000 deposit, but Goldberg said When asked to comment that the district $11,000 monthly Princeton Credit would reimburse the is investing at a loss if rent collected is less expenditure for $1.5-million deposit to the general fund. than the monthly payment of approximately “investment” home The approximately $140,000-annual $11,000, Goldberg said, “I wouldn’t call it Local Leaders payments will come from the general a loss. You’re paying principal. As you’re Unite fund. building principal you have equity.” Mayor Willie Brien discusses After the meeting, Goldberg said the Goldberg said based on historic trends last week’s U.S. Conference of Mayors in Orlando board has not yet initiated rent negotiations in Beverly Hills, he anticipated the home with Woods. could increase in value to approximately cover story • pages 10-11 “Today was focused on getting the deal $2.64 million over 15 years, resulting in a done because until the approval happened net positive for the district. WHAT’S ON YOUR MIND? today, it didn’t seem very prudent to start Finance Committee member and former negotiations,” Goldberg said. Board of Education member Mel Spitz You can write us at: Goldberg said he had a target rent figure disagreed. 140 South Beverly Drive #201 220 N. Doheny Drive in mind but said he was not comfortable “I’m not at all certain that there will be a Beverly Hills, CA 90212 sharing it prior to the negotiations. net infusion of revenue for the district but I The Board of Education voted unanimously In Goldberg’s own cost-benefit analysis am certain that it’s a risk,” Spitz said. “I’ve You can fax us at: Tuesday night to approve the purchase of that he presented at Tuesday afternoon’s advised you of a number of risk factors and 310.887.0789 a $1.5-million home at 220 North Doheny study session with the BHUSD Finance I don’t think it’s appropriate.” email us at: Drive, which has been presented as both an Committee, Goldberg used a hypothetical Risks Spitz cited included loss of rental [email protected] investment opportunity and as a housing figure of $3,500 a month for rent. Goldberg revenue during periods of vacancy; costs option for Superintendent Gary Woods. said that wasn’t the figure he has in mind of utilities, security, cleaning and refur- The board has agreed to a 15-year for the rent, but “that’s the baseline in bishment between occupancies, and costs loan with an interest rate of 3.7 percent. terms of my thinking where it becomes of re-renting; earthquake and other dam- age not covered by insurance; potential Inside Beverly Hills—BHTV10 legal issues such as disputes and evictions; Inside Beverly Hills, moderated by columnist Rudy Cole, will next air on June 28 at and the possibility of flat or reduced mar- 8:30 p.m. and June 29 at 10 p.m. about Fine Art; June 29 at 6:30 p.m. with City Clerk ket value. SNAPSHOT Byron Pope; June 29 at 8 p.m. about Historic Preservation; and July 2 at 8 p.m. and “First, I believe it is not appropriate July 3 at 5:30 p.m. about the Metro Westside Extension. for the district to risk public funds gam- bling on gains or losses in the manner of WeBeverlye Hillskly Issue 665 • June 28 - July 4, 2012 Beverly Hills Weekly Inc. Founded: October 7, 1999 Published Thursdays Delivered in Beverly HilIs, Beverlywood, Los Angeles ISSN#1528-851X www.bhweekly.com 1 year Publisher & CEO subscriptions Josh E. Gross are available. Reporter Sent via US Mail Melanie Anderson $75 payable in Sports Editor advance Steven Herbert Contributing Editor Rudy Cole Adjudicated as a newspaper of gen- Advertising Representatives eral circulation for the Tiffany Majdipour County of Los Angeles. Saba Ayinehsazian Case # BS065841 of the Nataly Makabi Los Angeles Superior Court, on November 30, Legal Advertising Mike Saghian 2000. Eiman Matian 140 South Beverly Drive #201 Beverly Hills, CA 90212 310.887.0788 phone 310.887.0789 fax CNPA Member [email protected] All staff can be reached at: MAY I HAVE THIS DANCE? first name @bhweekly.com Unsolicited materials will not be returned. SELMA AVE. ©2012 Beverly Hills Weekly Inc. Earlier this month, Hawthorne fifth graders Jack Schmidt (left) and Celine Emein (right), helped Hawthorne’s Dancing Classroom Competition Team advance to the finals at a competition at Selma Avenue Elementary School in Los Angeles. The finals took place June 19 at the Historic Cocoanut Grove Theater. Page • Beverly Hills Weekly Board of Education expected to break promise to the voters not to raise taxes for Measure E income. open session without any discussion. The If the district were to rent the property transmittal, which incorrectly identified under market value to a non-employee in the property as 220 South Doheny Drive an agreement that was not open to public instead of North Doheny Drive, did not access, that could be considered a gift of indicate the possibility that it would be public funds. rented by the superintendent. The Board of Education went forward All five board members said Tuesday with the purchase against the advice of night they did not intend to hide anything Finance Committee members. Spitz and from the public and acknowledged they Martin Frank advised against the purchase, could have done a better job presenting Terry White advised against the district’s their plans to the public. continuing deficit-spending and said he “There were many discussions, many believed housing for the superintendent angles, many opportunities and many could be provided in a more cost-effec- deliberations about this that would not tive way, and Chair Herb Young said have been appropriate to occur in public, he regretted the board felt it had to vote because it would have denigrated the dis- Tuesday evening, “which doesn’t permit trict’s bargaining position and that is what any more discussion beyond this evening.” I understand the primary purpose of being Committee member Bob Sternshein did in closed session for real property negotia- not attend the study session. tions is to the Brown Act,” Vice President Young said the Finance Committee was Jake Manaster said. Alumni Association presents scholarships at Senior Awards generally supportive of providing Woods Board member Lisa Korbatov partici- with a housing allowance. pated in the evening meeting by phone Night Although the board said it started dis- from Edinburgh. She did not participate in The Beverly Hills High School Alumni Association presented scholarship awards to cussing the purchase of a home in closed the study session. graduating seniors June 20. Michael Libow (far left) and Lilly Lewis (far right) pre- session in February, Young said the com- Young said there was also confusion sented awards to (left to right) Jared Sleisenger (Harvard University), Andrew Schwab mittee did not learn about the district’s surrounding the purpose of the purchase. (UC Berkeley), Carly Stone (Vanderbilt University), Taylor Shaw (MIT–Dordick plans to purchase a home until it was “They should have put it on the agenda Family Scholarship), Donya Enayati (UCLA–Michael Libow Scholarship), Tina reported in Beverly Hills Weekly two at a regular Tuesday evening meeting Torbati (UCLA), and Tania Torbati (UCLA). Tina and Tania jointly received the Lisa weeks ago. and discussed the philosophy of what Harris Memorial Scholarship. For more on Sleisenger, see page 7. In Issue #663 the Weekly reported the they wanted to achieve,” Young said. “Is board voted on the purchase June 12 in briefs cont. on page 4 private investors,” Spitz said. “Second, I reserves. believe that any knowledgeable private The board directed Best, Best & Krieger investor would determine that the risks and attorney Dina Harris, who attended the costs outweigh the potential for profit, and study session and formal meeting, to look NOTICE OF PUBLIC HEARING would decline to make this investment. into the legality of including the real prop- Third, diverting the equivalent of a full- erty in the reserve. The Council of the City of Beverly Hills, at its regular meeting to be held on time teacher’s salary from funding of the Board member Noah Margo proposed Tuesday, July 3, 2012, at 7:00 p.m., in the Council Chambers of the City Hall, educational program at this time, when the an amendment to the resolution that was 455 N.
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