DATE: Thursday, October 16, 1997            TAG: 9710160528

SECTION: LOCAL                   PAGE: B6   EDITION: FINAL 

SOURCE: BY TOM HOLDEN, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   74 lines

SERVICES BOARD CONSIDERS OPTIONS WITHIN ORIGINAL SPENDING LIMITS

The Community Services Board agreed Wednesday to consider a revised plan for moving its operations to a site on Bonney Road that may keep the price at the original $14.2 million.

The proposal would have the board back off its more ambitious plan to consolidate operations at one location and instead choose an option that would leave many administrative offices in leased space in the Pembroke Office Park.

In going this route, the board could have new space for its most pressing services, such as providing care for the mentally ill and mentally retarded or those with substance abuse problems, and could consolidate its transportation services at the Bonney Road property. The board provides services to about 8,000 Virginia Beach residents annually.

In addition, the plan would forgo planned efforts to seek additional money through the sale of municipal bonds, which it would have to pay back but which also would require City Council approval.

Donald V. Jellig, the board's chairman, said that while planning for the building project had been flawed, the basic facts that led the board to consider a new facility have not changed.

``Demand for services will continue to rise. We are spread out over several locations and there is duplication of functions,'' Jellig said. ``Yes, we have had problems, but the facts that led us to this point are still with us.''

Last December, under the leadership of former Executive Director Dennis I. Wool, the board convinced the City Council to appropriate $12 million to buy three buildings - renovating two while demolishing one - and move all board operations to a site on Bonney Road.

The plan had many advocates - and still does - because it would relieve the board of paying rent, would provide space to expand, and over time would give the city an asset through ownership of land and buildings. The plan also has not encountered any opposition from residents surrounding the site.

But problems developed after the city agreed to buy the property and renovate the buildings. First, it was learned the city would need $2 million more to cover contingencies. Then it was disclosed that the $12 million that Wool had sought was based on inaccurate information supplied by an architect who had conducted only a cursory evaluation of the renovation costs.

When a final plan was developed, the project's total cost had ballooned to $19 million. The board edged it down to $17.2 million by agreeing to demolish the buildings - including a six-story Days Inn hotel and retail furniture store - and start over.

The additional money would have come from a contingency fund the board had set aside and the issuance of lease-revenue bonds to pay for the rest. Upon learning of the potential cost overrun, the City Council complained. Wool lost his job, and the board went back to conduct a ``bottom up'' review of the year-old project.

On Wednesday, the board considered a number of new alternatives, all of which involved spending only the $14.2 million already appropriated.

The meeting involved the board's executive and building committees and did not involve a formal vote. Its purpose was to follow up on recommendations made by the building committee on how the organization should proceed in the wake of the controversy.

``We focused on the $14.2 million because that's what we were asked to do by the building committee,'' said Terry Jenkins, director of mental health services and the interim executive director.

``At this point, we need to do our job in providing them as much information as possible and then go on from there.''

The three programs under consideration for consolidation onto Bonney Road are:

Skillquest, a day program for mentally retarded adults, which is currently located on Investors Place near Mount Trashmore.

Beach House, a training and support program for mentally ill adults on Magic Hollow Drive off Lynnhaven Parkway.

Detox Center, a detoxification program for alcoholics and substance abusers located in temporary buildings at the Open Door Chapel on Virginia Beach Boulevard.

The board's Wildwood operation, a medical clinic for older mentally ill people, would be moved to the Pembroke Office, Park where the board currently leases the majority of its space.

Send Suggestions or Comments to webmaster@scholar.lib.vt.edu