Lawsuit Challenges Community College Foundation

A suit alleging unlawful action by the San Diego Community College District for forming and operating a foundation bearing its name was filed Friday in San Diego Superior Court by attorney Michael J. Aguirre on behalf of several professors and unidentified county taxpayers.

Named as defendants are members of the board of trustees of the college district, the members of the foundation’s board of directors, and Garland Peed, chancellor of the college district, which oversees programs at Mesa, Miramar and City colleges as well as continuing-education classes throughout the city.

The suit asks for an injunction prohibiting the San Diego Community College District Foundation from spending any more money before a trial, and asks for $15,000 in damages each on several counts as well as repayment of $8 million alleged to have been illegally diverted from the district.

The suit is the latest in a series of disagreements between some professors and the district over whether the foundation has illegally used revenue properly belonging to the district, whether it has illegally made expenditures on educational projects in competition with courses taught by district professors, whether meetings of directors have been held in secret in violation of state law, and whether politicians have received cash payments as part of illegal lobbying.

All of these allegations are contained in the suit, on which Aguirre declined comment Friday.

Peed and district trustees have consistently denied the allegations, saying that county counsel reviewed all actions before they were taken.

The foundation was formed to raise money to support college and continuing-education programs. Peed, who was instrumental in founding the organization, will retire this summer and become chief executive officer of the foundation.

The San Diego County Grand Jury last year reported that the foundation should have specific guidelines to assure the public that there is no favoritism toward politicians selected for honorariums.

The grand jury also recommended that the district make clearer distinctions between itself and the foundation, and take steps to protect the existing community college functions.