Southwestern College to Take Contractors to Court

Following release of the college’s own external audit, the Governing Board announced Wednesday evening the college district will file lawsuits against fired contractors.

After a closed session meeting Wednesday evening, the Southwestern College Governing Board announced plans to file suit against Seville Construction Services, BCA Architects, Echo Pacific and employees throughout as defendants.

Governing Board President Norma Hernandez said the board gave direction to legal council to initiate litigation.

“The substance of the litigation will include challenge to the procurement of contracts related to the corner lot project and conduct related thereto,” she said. “The vote was unanimous.”

Investigators raided the homes of SWC former trustees Yolanda Salcido and Jorge Dominguez March 20. One week later, former vice-president of business and financial affairs Nicholas Alioto and Dana Grimes, defense attorney for BCA Architect Paul Bunton appeared before Judge Michael Smyth March 26.

Charged with two felonies, perjury and filing false instrument and one misdemeanor of wrongful influence, Alioto plead not guilty to all charges.

If convicted on all charges, Alioto faces a maximum of four years and two months in prison and a $10,000 fine. He was booked and released April 1 and is scheduled for status report on May 18.

Grimes submitted a written admission of guilty to one misdemeanor charge of aiding in the commission of a misdemeanor. Awarded a $55 million contract in April 2010 for architectural services for SWC’s corner lot project, Bunton faces a maximum of six months in jail and fines up to $1,000. The court set a sentencing date of June 19.

Henry Amigable, former Gilbane/SGI employee in the SUHSD investigation, plea bargained his case and similarly plead guilty to a misdemeanor count avoiding felony charges of offering a bribe and obtaining a thing of value to influence a member of a legislative body. Amigable is due in court for sentencing June 22 and faces up to six month in jail and $1,000 in fines.

Hired as program director by Seville Construction Services, Inc. in March 2009, Amigable was the firm’s program manager when awarded a five-year, $2.75 million contract for program management services for the college’s corner lot project in November 2009.

In addition to evidence collected by the DA’s investigation leading to search warrants and charges, SWC’s current Governing Board approved the hire of independent forensic auditor Scott Seo of Seo Consulting, Inc.

In April 2011, to perform a focused special review involving the award of contracts related to Prop R and the activities of the Southwestern College Foundation. Governing Hernandez said the board is fully cooperating with the DA’s office and released its own internal audit on March 14.

Seo reported documentation stating selection of firms awarded contracts was inadequate and the price negotiation processes “took place in a vacuum and lacked transparency.” He stated there was not enough documentation to verify Seville’s contract and that the governing board did not have sufficient information provided to recommend the highest bid out of three finalists for program management.

In investigating the $4 million corner lot project awarded to Echo Pacific, Seo reported that the construction company had an unfair advantage in its revised cost proposal and there was no mention of the lower cost proposal of Barnhart Balfour-Beatty, who was awarded the construction management at risk contract for the college’s Central Plan/Field House.

Chris Rowe of Echo obtained a trip to Napa Valley by bidding $15,000 at the Southwestern College Foundation Gala “Havana Nights” held in March 2010.

Donated by BCA and advertised as “a weekend of golf and wine tasting in the beautiful Napa Valley” with Vice President Nicholas Alioto, Seo reported Rowe, Bunton, Alioto and Amigable went the weekend of June 25, 2010. This trip came immediately after initial RFP deadline and prior to revised proposals on June 30, 2010 and Echo’s corner lot contract.

With a new plan in place, Superintendent Dr. Melinda Nish announced the governing board postponed all corner-lot construction for one year to redevelop the college’s infrastructure before sending out new RFPs. Part of the plan is to complete the corner lot parcel 10 years earlier than the original plan.

“This is part of our commitment to ensure the public’s money is used appropriately,” she said.

Bob Temple, interim vice president of business and finance said the approximate $8 million spent is largely work completed and moving the project completion date earlier will bring a significant savings to the college.

“I believe that to the extent that the projects are being completed sooner, any cost that have been spent to date will be recuperated with the dollars that will be saved by expediting the project,” he said. “Only the corner lot has been stopped. The work on the central plant and field house and other projects are still going forward.”

http://imperialbeach.patch.com/articles/southwestern-college-district-taking-proposition-r-contractors-to-court

Alioto Central Character In Foundation Investigation

Alioto Central Character In Foundation Investigation

By: Albert Fulcher, Senior Staff Writer

Published: Thursday, March 22nd, 2012 at 11:16 pm

An independent investigation of the Southwestern College Educational Foundation has lifted the curtains on two years of secretive operations by a former vice president, including a mysterious 2010 that mixed fund raising for scholarships with multimillion dollar construction contracts, extravagant gifts and campaign contributions while banning all news media and cameras.

 

Forensic auditor Scott Seo compiled a 33-page report released to the public by the governing board this week. Much of the carefully-worded report centers on the activities of Nicholas Alioto, SWC’s former vice president of business affairs. Alioto was cited for “inappropriate” activities during his involvement in the planning and management of the 2010 “Havana Nights” gala at the Loews Coronado Resort, including multiple instances of conflict of interest. Alioto solicited sizable donations from future Proposition R contractors and other construction firms who had made bids for contracts.

“It was inappropriate for the Vice President of Business and Financial Affairs to serve in such a direct fundraising capacity for the 2010 Gala, especially considering his responsibilities in the Proposition R contractor selection process,” wrote Seo. “Some of the maximum sponsorships and significant auction prizes were awarded by Proposition R contractors who were already or would eventually be awarded contracts.”

Seo’s investigation had a long list of “concerns” and “inappropriate” behaviors related to Alioto. Among them: nearly $15,000 in uncollected pledges, poor accounting practices, appearances of possible influence peddling, conflicts of interest, lax internal controls, inappropriate involvement of companies bidding for construction and architectural contracts, overpayment of vendors and use of Proposition R funds to pay for Foundation activities.

“It is not unreasonable to suggest that a potential donor could have been compelled to make a donation based on a solicitation from Mr. Alioto if his/her firm was currently or could potentially be considered for a contract that was under control of Mr. Alioto and his responsibility as the Vice President of Business and Financial Affairs,” read the report.

Alioto was able to insinuate his way into Foundation affairs follow a spring 2008 reorganization of the college by former superintendent Raj K. Chopra and approved by a previous governing board. Chopra fired or transferred Foundation staff, including its director, and transferred control of the Foundation to his office. Gutted, the Foundation lay dormant for nearly two years. Chopra cancelled two of the organization’s annual galas and conducted little visible fund raising.

In 2010, with Proposition R contracts out to bid and a contentious governing board election looming in November, Chopra ordered the gala resurrected. The March event at the Loews Coronado was attended by several contractors involved in the San Diego Country District Attorney investigation, including Seville Construction, Echo Pacific and BCA Architects. Other contractors also bidding for Proposition R funds were solicited for contributions by Alioto. Echo Pacific was the winning bidder for a weekend of wine tasting and golf with Alioto at a Napa resort hotel. Representatives of Echo Pacific joined Alioto on the getaway and three weeks later were awarded a $4 million contract from Alioto which was approved by the board. Incumbent board members Terry Valladolid and Yolanda Salcido later received large campaign contributions from Echo Pacific. Valladolid and Salcido were staunch supporters of Chopra and Alioto.

Alioto’s home was raided by the San Diego County District Attorney in December along with those of Echo Pacific’s Henry Amigable, former SWC director of facilities John Wilson, and four Sweetwater Union High School District trustees. Amigable and three of the trustees have been charged with multiple felonies for bribery and influence peddling. Alioto and Wilson have yet to be charged. Investigators reported they were unable to find Chopra, who may have fled the country. The U.S. State Department has a mutual legal assistance agreement in place with India, Chopra’s native country. San Diego County District Attorney spokespersons were asked if Chopra could face extradition if charged with felonies, but they did not reply before deadline.

Seo, in his report, said he examined several aspects of Alioto’s involvement with the Foundation, including:

Uncollected pledges in excess of $15,000. When an independent auditor requested documents in an attempt to reconcile the discrepancy, Alioto was uncooperative and took nearly four months to respond. Seo wrote that there were also $3,000 in uncollected sponsorships and a $1,047 overpayment to one unidentified vendor.

Fellow Circle sponsorships. Seo wrote that “many of the firms who were awarded Proposition R contracts also contributed…maximum sponsorships” of $15,000. In total, Seo reported, more than $190,000 was pledged for these sponsorships. “To the extent that contributions were made in response to aggressive solicitations made by SWC officials who were in positions of awarding Proposition R contracts would have been inappropriate,” Seo concluded.

Alioto’s involvement. Seo said that Alioto’s active participation in the gala “could have the appearance of a potential conflict.” Seville Construction also participated in the planning of the gala and the 2010 Foundation golf tournament “with the full knowledge and possible direction of Alioto,” Seo concluded. “To the extent that Seville was compensated for these activities from Proposition R funds under their contract with SWC would be inappropriate,” wrote Seo.

Insufficient internal control. Seo agreed with the Foundations auditor that internal controls were lax following Chopra’s dismissal and reassignment of Foundation staff. Governing board member Dr. Jean Roesch, a staunch Chopra supporter, was the board’s liaison to the Foundation in 2010.

Angela Amigable. Seo expressed concern that Alioto hired Henry Amigable’s wife, Angela, to work on the gala and paid her $3,000 without a contract or agreement between her and the Foundation.

Seo concluded that Foundation operations improved substantially for the 2011 gala. Chopra resigned following the November 2010 election. The new board majority of Norma Hernandez, Tim Nader and Nick Aguilar directed Interim Superintendent Denise Whittaker to restore Foundation staff and remove Alioto from Foundation affairs. Alioto resigned in February 2011. Hernandez became the board’s Foundation liaison. Seo said the 2011 gala corrected the problems and was “well-organized and well-managed.”

http://www.theswcsun.com/2012/03/22/alioto-central-character-in-foundation-investigation/

Unsigned: College Needs To Remain Transparent

Carlos Magana/Artist

By: Sun Editorial Board

Published: Tuesday, February 28th, 2012 at 3:13 am

Southwestern College’s season in Hell is over, but the door of Hades has been left cracked open. Three new trustees are working feverishly to close it once and for all.
Norma Hernandez, Tim Nader and Humberto Peraza have the courage and vision to end SWC’s suffering and steer the college into an age of rebirth. Part of their wisdom is their understanding that the college has to come clean and put all of the misdeeds of the past out into the light before SWC can really be free.
Our college suffered on all levels – academically, administratively, publicly and politically – when SWC’s previous administration chose to erect walls of secrecy and chicanery. Backed by a dysfunctional 4-1 governing board majority, the prior administration’s lack of transparency and blatant secrecy from 2007 – 2010 disgusted the entire community, leading to a toxic atmosphere that has proved epically destructive.
Raj K. Chopra, Nicholas Alioto and the board led by Yolanda Salcido brought the college to the brink of being shut down by its accreditation body. Little did we know they would also lead us into the biggest corruption scandal in San Diego County history.
Captured by Chopra, SWC’s annual golf tournament and Educational Foundation fundraisers became vehicles for money laundering and influence peddling. Instead of filling scholarship funds, these once-cherished events filled campaign warchests. With no regard for the Brown Act or the American value of open government, the board and administration hid documents and punished inquisitive faculty. “Transparency” and “openness” vanished from the college’s vocabulary.
This clampdown left people questioning the closed-door actions of the administration and board, forcing the public and the media into antagonistic positions to uncover the truth. Increasingly desperate efforts to hide that truth led to the incumbents’ defeat at the ballot box and the resignation of more than a dozen administrators.
Hernandez, Nader and Peraza brought a passion for education that the former governing board sadly lacked. They have also been champions of transparency and openness. They meet often and keep the public, students and press informed.
This house-cleaning board majority will need to consistently remind nervous employees that the old way of doing business is over. There will be none of the reflexive administrative circling of the wagons or other defensive behavior. Record requests will be honored. Investigations will be made public. Questions will be answered forthrightly. Administrators will treat faculty, students and media as allies and stakeholders, not enemies to deflect and deceive.
People who act guilty in this time of search warrants and indictments will be presumed guilty and part of the problem rather than part of the solution. It is important for all college trustees and employees to remember that we are being closely watched, and that our behaviors and actions will have heightened meaning. Stay on the side of the angels.
Right now, the district attorney is in the middle of a huge investigation into past and present board members of the Sweetwater Union High School District and its former superintendent. Three are connected to our college. Arlie Ricasa, SWC’s director of student development and health services, is currently on administrative leave. Greg Sandoval, the former acting superintendent/president, and Henry Amigable, who oversaw Proposition R construction in 2009 and 2010, have been charged with multiple felonies.
Questions abound. “Who’s next?” Former V.P. Alioto and former facilities director John Wilson are likely candidates. Other contenders for headlines are Salcido, former SWC superintendent Chopra, and Dan Hom, president of Focuscom, a PR firm in league with Alioto, Wilson and Amigable.
San Diego County District Attorney Bonnie Dumanis released the dogs on Sweetwater and she has a few more in the pen, warming up for Southwestern College.
When it came to the D.A.’s 2011 investigation, the new governing board had three choices: work with the D.A.’s office, work against it, or to simply let the investigation happen by taking as little action as possible. Hernandez, Nader, Peraza and former trustee Nick Aguilar opted smartly to work with them, opening SWC’s doors and books, and promising them the first results of an internal review of the college’s finances that has been underway for most of a year. This is the high road, and it sends a powerful message to the community that this college will no longer hide misdeeds and unethical activities.
It is up to the courts to determine guilt or innocence, but the evidence collected so far is shocking. Voters who tossed out two ineffective trustees at Southwestern in 2010 are getting out their brooms to sweep out Sweetwater corruption this November.
For our new leaders, this is the point of no return. It falls upon them to make certain that the promises of truth and openness are actually reflected by the actions and deeds of the administration. It also falls upon them to not let the fear of bad press and shocking headlines overshadow the promise made to be fully transparent.
Nelson Mandela knew that South Africa had to come clean before it could heal. Southwestern College is in the same place. Hernandez, Nader and Peraza understand that. Here’s hoping our new administrators get it, too.

Southwestern College Reception Welcomes Superintendent Dr. Melinda Nish

A reception for Southwestern College’s new superintendent drew a crowd of more than 100 people from the college and local community. Student musicians entertained the party as the college’s culinary students catered the event. Dr. Melinda Nish came to Southwestern on January 2, with more than 20 years of educational experience from Orange Coast College after an extensive search resulting in 34 candidates.

Governing Board President Norma Hernandez said the search began in February 2011 with the establishment of a process that was open and inclusive. She said a 19-member committee consisting of faculty, students, staff, administrators and community members had specific values in searching for a replacement.

Hernandez said specific qualities necessary to take the college to the next level of academic success identified were the ability to be consensus builder and problem solver and a collegial and collaborative leader that is accessible and listens. A supporter of the teaching and learning environment, a strong advocate for college constituents and values partnerships with other segments of education, business and community based organizations also factored into the hiring selection.

“We found a leader with all of these qualities in Dr. Melinda Nish,” said Hernandez.

Nish said she had never encountered such a warm welcome as she has in the college and its community.

“It truly is a very special place and I am honored to have become a member,” she said. “Indeed I hope an adopted daughter of Southwestern College and the South Bay community.”

As Investigations Continue, Southwestern College Ends Prop R Contracts

The school’s Governing Board took action against current contracts in response to the District Attorney’s investigation into Sweetwater Unified High School District and Southwestern College and an alleged “pay to play” culture.

Southwestern College’s voter approved $389 million Proposition R corner lot project is back to the drawing board.

In closed session more than two hours, the governing board announced Wenesday evening it directed legal counsel and staff to sever the contractual relationship with Seville Construction Services, Inc. and BCA Architects.

Board President Norma Hernandez said this action is in the best interest in serving all rights of the college.

“The board also directed the staff to initiate a Request For Proposal related to replacement of program manager and architectural services,” Hernandez said. “The board directed counsel and staff to continue full cooperation with the District Attorney’s investigation and continue to evaluate the college’s legal options.”

On Nov. 18, 2009, the college’s governing board approved at $2.7 million contract with Seville Construction as program management services.

Approved in April 2010, BCA was awarded a $55 million contract. Former Governing Board Member Nick Aguilar walked out of the meeting refusing to vote, saying the process lacked transparency and violated the board’s ethics policy.

These actions follow on the heels of the San Diego County District Attorney’s ongoing investigation into questionable relationship between board members, administrators and contractors at Sweetwater Union High School District and Southwestern College.

The board’s decision revolves around both the DA’s investigation and its own internal investigation of Prop. R contracts and the college’s Education Foundation, which initiated in April 2011. The board hired an independent forensic auditor to conduct the investigation.

With his home raided in the DA’s warrant sweep last December, former vice-president of business and financial affairs Nicholas Alioto recommended both Seville and BCA as the project’s most qualified bidders.

Alioto resigned last February after a contentious election that overturned the former governing board, with the “pay to play” scandals surfacing in news media throughout the county.

Alioto’s recommendation and board’s of Echo Pacific’s $4 million corner lot construction came after a conspicuous trip to Napa Valley. Echo Pacific was released of its contract in a mutual agreement with the college’s governing board in October last year. Facing two felony counts of perjury and up to seven years in prison, Henry Amigable, former Gilbane employee for the SUHSD was hired by Echo Pacific to work with the corner lot project shortly after he quit Gilbane.

At last night’s meeting, Hernandez said that the college, now under the leadership of its new Superintendent/President Dr. Melinda Nish is dedicated to being as transparent as it can about the results of its internal investigation.

Board members Humberto Peraza and Tim Nader both requested that Nish have staff provide more detailed information in future agendas concerning the process of selection of contracts. They also requested training for governing board members and public on the current process being used to qualify a bidder or award a contract.

Nish said this board training will be included in the February or March governing board workshop.

“It is important for the community to know that the college’s current board did not make these decisions and that the new board doesn’t work that way,” Peraza said.

http://imperialbeach.patch.com/articles/southwestern-college-ends-prop-r-contracts

Southwestern College Official Placed on Administrative Leave

The Southwestern College Governing Board responds to the district attorney’s South Bay investigation.

Southwestern College placed Arlie Ricasa, director of student development, on non-disciplinary paid administrative leave Thursday, pending the college’s own internal investigation.

Ricasa faces four felony and two misdemeanor charges after District Attorney Bonnie Dumanis filed charges on Wednesday morning in the ongoing South Bay corruption case involving the Sweetwater Union High School District and Southwestern College. Charges include perjury, filing false instrument and wrongful influence.

Ricasa was elected to the Sweetwater board of trustees in 1998, began working at Southwestern in 1990 and became director of student development in 2001.

On Wednesday, after three hours in closed session, Southwestern College Governing Board President Norma Hernandez said the governing board was continuing to cooperate and share information with the District Attorney’s Office.

Following a contentious 2010 election when two long-term incumbents, Yolanda Salcido and Jorge Dominguez, were voted out of office, the new board requested the college hold its own internal investigation at an open session in April 2011. It hired an external forensic audit to review prior Proposition R contracts and related fiscal issues.

This came after numerous complaints from the college community about the actions of college administrators and board members in their handling of the Corner Lot Project funded by voter-approved, $389 million Proposition R. Other complaints included large amounts of money collected by incumbents for campaigns and the several “pay to play” accusations reported by the college community and county, local and college news media.

“Our own internal investigation is ongoing,” said Hernandez. “And to protect the integrity of the process the findings will be shared with the public only upon completion.”

Hernandez said that the governing board acknowledges that the recent events from the DA’s office had a profound impact on the college community and raised many questions about the construction contracts at the college.

“These questions will be answered in the days and weeks ahead as more information becomes available and the board can make legally sound decisions based on accurate evidence,” said Hernandez. “We acknowledge that the events of the past two weeks have been unsettling and distracting.”

In public comment, Derrick Roach, a Chula Vista resident, brought several documents to present to the board and said he was concerned about the recent investigations and charges involving SUHSD and Southwestern College.

Roach said he knew some of the board members, administrators and faculty at the college and had a great respect for their continued good efforts in providing higher education to students in the area.

“I know that they are good people and their hearts are in the right place,” he said. “But there is a cloud hanging over the college right now. A cloud of suspicion, accusations of corruption and I call on the board to take action.”

Roach said that he was concerned that Ricasa was still currently working as director of student development at Southwestern College at a time when she now faces several felony criminal charges.

“Ms. Ricasa, in the past, has been the subject of investigations with the Fair Political Practices Commission in which she has claimed all the allegations were baseless. But she was found to be guilty and fined,” he said.

Roach said he is a concerned parent with children soon to be at the community college level and asked the board to investigate these charges. He said he believed in this governing board to do the right thing.

Southwestern College Education Association President Andrew MacNeill said he commended the board on the way they have met this challenge so far, and the faculty, staff and community that spoke out over a year ago about the questionable activities in contract negotiations between contractors and college administrators.

“I do not disagree with Mr. Roach,” he said. “I think that this should also extend to those who do business with Southwestern College. This community has waited 50 years for the corner lot to be built and they deserve us to do a thorough job in finding out what things are unethical, immoral and possibly illegal before we proceed.”

Hernandez said the board appreciates the patience of the college community, faculty staff and students.

“On Monday we will resume our important mission to educate and elevate our community with all of the talent, energy and commitment that Southwestern College has been known for since 1961.”

http://imperialbeach.patch.com/articles/southwestern-college-releases-internal-investigation-to-da-s-office-arlie-ricasa-placed-on-administrative-leave

Southwestern College Off Probation, Regains Accreditation Status

Southwestern College Off Probation, Regains Accreditation Status

The ruling lifts a cloud of uncertainty about Southwestern’s ability to function that has lingered over the college since Feb. 2010.

By Albert Fulcher | Email the author | June 30, 2011

After two years of a tumultuous campus climate, declining reputation and a complete overhaul of top administrators, Southwestern College, the South Bay’s only public institution of higher learning, leaped forward much faster than anticipated and regained full accreditation.

On Wednesday the Accrediting Commission for Community and Junior Colleges (AACJC) announced the removal of all ten sanctions against the college after a visit to the campus in March.

None of the ten deficiencies that put Southwestern, in Chula Vista, on probation in February 2010 related to the college’s ability to teach or student’s ability to learn, but pointed directly towards the operation of the school’s Governing Board and program review.

Imperial Beach and Coronado are home to many Southwestern College students, faculty and staff. Elizabeth Smith, a professor in the School of Language and Literature who lives in Imperial Beach, said it’s inspiring to see all of the hard work pay off.

“We’re lucky and grateful that Tim Nader, Norma Hernandez and Denise Whittaker stepped forward when we needed them,” she said.
“We have all kinds of knowledgeable and hardworking people at Southwestern. They made it possible for us to do what we’ve always been able to do. It’s a relief to be able to get back to just focusing on doing our jobs,” Smith said.

She said it was tempting to give up in the face of the former board who were entrenched, powerful and financially well-equipped.

Then, she said, it was common to see efforts to solve the college’s problems undermined and disrespected, but once those people were out of the way, others worked diligently and collaborated to address the accreditation issues.

Interim Superintendent Denise Whittaker said after the AACJC’s visit earlier this year that she was confident Southwestern would met all requirements.

She thought the college should regain its accreditation status, but would not have been surprised if the commission decided to keep the college on probation until after the October 2011 site visit and follow-up evaluation in January 2012.

On June 10, Whittaker personally met with the accreditation team to plead for the college’s probationary status and didn’t expect a decision until July 5. The early announcement surprised the college community.

“I am excited to report that the Commission has taken action to remove probation and reaffirm accreditation,” she said, noting that the college community’s hard work and efforts merited this “grand accomplishment.”

Governing Board Member Nick Aguilar said regaining accreditation was a tremendous feat for the college and that hiring Whittaker was the most important decision they made.

He said her leadership style brought back a standard of respect and collegiality to Southwestern. He said the “highest degree” of effort from all college constituents was a testament to the college community as a whole and proved the foundation of teaching and learning had always remained, even in adverse conditions under the prior administration.

“Whittaker contributed her leadership skills generously to get the job done in a credible, sensible way, backed up with evidence,” he said.
In the AACJC letter to Whittaker, President Barbara A. Beno said the Commission expects the Midterm Report due Oct. 15, 2012 to provide evidence that the college has sustained its program review, planning activities and new Governing Board policies. It noted, “Southwestern College has made many recent improvements to institutional practices to resolve accreditation deficiencies.”

The commission Follow-up Team Report said, “The team was encouraged by the significant progress the college has made on (their) recommendations.”

Fully accredited since 1964, Southwestern provides more than 300 associate degrees and certificate programs.

The deadline for new students to register for fall 2011 classes is July 11.

To read the AACJC’s letter and 10 recommendations, see the media box.

Has the probationary status of Southwestern College affected your trust in the institution? Have you avoided Southwestern for this reason? Do you work or attend Southwestern? Tell us in the comments.