No Decision on Kellerman After 4-Hour Closed Session

Trustees of the North Orange County Community College District emerged from a 4-hour closed-door session over the fate of district Chancellor James S. Kellerman to say only that no decision was reached Thursday night.

Board President Otto Lacayo had said before the meeting that district officials hoped to make a public statement about the reasons for Kellerman’s sudden suspension earlier this month. Lacayo said the board would seek legal advice from district counsel Spencer Covert during its closed-door session on Thursday night. After the meeting, however, Lacayo said Covert had advised all board members not to comment about the district’s internal investigation or Kellerman’s suspension as chancellor.

Lacayo declined to elaborate, saying only, “We took no action.”

He said the board will issue a statement to district employees this morning, but he declined to release the contents of that statement. However, it was described by one source as “innocuous . . . a fluff piece.”

Board member Chris Loumakis, who had called for a criminal investigation into allegations of misconduct by Kellerman, said after Thursday’s session that the board had made “no change” in Kellerman’s suspended status.

Kellerman, 54, was placed on paid administrative leave from his $97,000-a-year job April 12 after an internal investigation substantiated allegations of misconduct, board members have said.

In a brief telephone interview earlier Thursday, Kellerman said, “I’m not yet making any comment.” He said he did not know when he would comment and that he did not plan to attend the special board meeting.

Deputy Dist. Atty. Wallace J. Wade said Wednesday that his office had opened a preliminary inquiry into the allegations.

An internal investigation has focused on allegations that Kellerman misused district resources and sought personal favors from those who worked for him, according to board members. Among those charges are the following:

- Kellerman allegedly “borrowed” from a fund used primarily for advance travel expenses, according to Loumakis. All expenditures from that account are supposed to be approved in advance by the board of trustees, but Loumakis said that such has apparently not been the case. A district spokeswoman denied that any unauthorized withdrawals or borrowing had taken place.

District records show that Kellerman repaid one advance for two trips on April 13, the day after his suspension. The check for $477 reimbursed the district for advances Kellerman received for two 1986 trips that were canceled.

- Kellerman allegedly sought personal loans from top employees, according to Loumakis. The board has received reports that at least one employee supplied a loan “in the 5-figure range,” Loumakis said.

- The district was billed $3,120 for repairs for damage from an accident last year involving Kellerman’s district-owned car.

An examination of district travel records showed no record of a business trip by Kellerman on that date. If Kellerman was not on district business at the time of the accident, the district should not be liable for repair charges, Loumakis said.

- The district was billed $2,000 for a computer that allegedly was installed in Kellerman’s home.

- Kellerman allegedly coerced district employees into hosting Tupperware-style home decorating parties given by Kellerman’s wife, according to a source close to the investigation. One district official who was the hostess of such a party said she did so voluntarily.

The board also has investigated unspecified allegations against Unisys Corp., which has been involved in negotiations with Kellerman and other district executives over the purchase of $455,000 in computer equipment. A scheduled vote to seek bids on the computer system upgrade was postponed in February after allegations of misconduct involving Kellerman first were reported to the trustees by Lacayo and board member Nilane Lee. A Unisys spokesman declined comment.

Kellerman, a former vice chancellor for the district, was named chancellor in February, 1986. His contract with the district expires in June, 1992.

Berdette (Bert) Cofer, 61, was named interim chancellor after the board decided to place Kellerman on administrative leave. The district includes Fullerton College and Cypress College, and serves 31,000 students in credit courses.