Administrators depart amid charges

PHOTO COURTESY OF CITY CURRENTS

By Fleur Bailey
News EditorTwo City College administrators facing charges regarding the alleged misuse of public funds and making illegal campaign contributions have resigned.Former chief administrative services officer Stephen Herman, who has worked for City College since 1972, has been on paid administrative leave since July, when charges were filed by San Francisco District Attorney Kamala Harris.Herman will officially retire as he had planned, after sick leave and vacation allowances, in January 2010."After 38 years with the district, I am happy and grateful to the board that I was allowed the dignity to retire when I wanted," Herman said.According to a press release from the district attorney's office, Herman and former City College Chancellor Philip Day are each charged with one count of conspiracy, one count of misappropriation of public funds, one count of concealing an account of public money, one count of grand theft, three counts of using City College funds to support a political campaign and one count of making a political contribution in the name of another.

Day is charged with a fourth count of using City College funds to support a political campaign.

James Blomquist, former associate vice chancellor of Building and Facilities, is charged with one count of using City College funds to support a political campaign and one count of making a political contribution in the name of another.

Board of trustees member John Rizzo said it has been hard for other employees at City College who have been picking up extra work due to Herman's and Blomquist's absence since July."This is cleaner and best for everyone involved at the college," Rizzo said.Blomquist's resignation, however, had come earlier than intended, according to Rizzo. Findings from a performance audit covering the period from July 1, 2007 to June 30, 2008 have disclosed what Rizzo called "costly mistakes" from Blomquist in the facilities department.

There were costs to building projects, such as the Chinatown campus and the new soccer field, which, according to Rizzo, Blomquist's office had started to build before state approval, resulting in delay of the project.

"There is nothing to suggest it was misappropriating or illegal," Rizzo said. "But it is best he retired before we had to start asking about the mistakes, which would have been awkward."Rizzo, fellow trustee Steve Ngo and board of trustees President Milton Marks III have all stated the findings of the performance audit are not related to the criminal charges brought against Blomquist. Marks said, however, the board has a responsibility to talk to the district attorney if it is revealed the law was broken."The criminal charges against Phil Day, Jim Blomquist and Stephen Herman were for actions involving expenditure of public funds without approval from the board," trustee Steve Ngo said. "The charges were brought before the performance audit was done and are totally different than the findings in the audit."Rizzo and Marks both said that while there were financial audits done at the college, there were no performance audits done until a resolution was passed in 2007 to implement them. Performance audits are conducted to check for mistakes not in accordance with best practice, why those mistakes are made and how they can prevent them.

Former Chancellor Day refused to conduct performance audits, although state law requires it under Proposition 9, according to Rizzo and Marks.
The MGT of America Inc. performance audit of City College states that proposition 9 is "to allow communities to issue general obligation bonds for improvements to school and community college districts, if they are approved by 55 percent of voters.

Districts issuing these bonds must undergo an annual independent performance audit to ensure  they expend funds only on the specific projects included in the bond measure and approved by their board of trustees. Further, the performance audit must validate that the district is not using funds for salaries or other operating expenses."

"There were not enough votes on the board to enforce authority," Marks said. "It was a legal and political issue."

A date to schedule a hearing for the Day, Herman and Blomquist case will take place on Dec. 10 at The Hall of Justice, San Francisco."I'm hoping the district attorney will review the information fairly and accurately and come to a reasonable conclusion," Herman said.