Anaheim Contracts Questioned in San Diego Convention Center Audit

The former head of the San Diego Convention Center authorized $150,000 worth of questionable expenses, including consulting contracts for several of his industry acquaintances from Anaheim Stadium, without proper bids or adequate documentation, San Diego auditors announced Tuesday.

The yearlong audit resulted in two separate documents, one of which was forwarded to the San Diego County district attorney’s office for further investigation into possible criminal action on the part of Tom Liegler, the center’s general manager from 1985 until April, 1991, when he resigned.

Although city officials said the document was not made public because it is still being refined as a “working document,� it was said to contain information about several parties that Liegler arranged that included friends and family members.

Disclosure in newspaper accounts about those parties, which cost the center at least $12,000, triggered a request by San Diego Mayor Maureen O’Connor and the City Council to conduct the audit.

Liegler, 63, referred all questions Wednesday to his attorney, Peter Hughes, who specializes in criminal defense.

“I’m absolutely convinced that when (the district attorney’s office) takes a look at this, they won’t be doing anything,� Hughes said. “This is all going to be put into perspective, which is that Tom Liegler’s marching orders were to make this an absolutely world-class operation similar to a luxury resort. That’s what he did.�

Among other findings, the audit revealed that Liegler approved $92,308--all in increments less than $5,000, which did not require board approval--for a variety of questionable consultant contracts.

Some included current or former employees of the Anaheim Convention Center and Anaheim Stadium, where Liegler was general manager before coming to San Diego.

For example, Liegler paid the former crowd control supervisor at Anaheim Convention Center $9,766 for “crowd control consulting� between November, 1989, and April, 1990. The only documentation was a two-page report describing the former supervisor’s Feb. 28, 1990, visit.

A former Anaheim Stadium maintenance manager was paid $7,500 for four months of “housekeeping consulting,� after which he produced two reports, totaling seven pages, that included critiques “on the appearance of carpeting, stainless steel railing, paint, etc.� at the Convention Center.

The center’s former executive housekeeper said the consultant did not provide anything of value and questioned why he was paid.

The former food and beverage director at Anaheim Convention Center was paid $6,402 over four months to provide expertise to the San Diego center’s operations. The only documentation was five pages of typed notes covering a four-day visit in January, 1990.

The audit revealed that the current grounds supervisor at the Anaheim Convention Center and Anaheim Stadium was paid $3,037 for landscaping consulting services over nine months. Various memos discussing the need for fertilizers, trees and valves represented the only documentation.

Liegler, however, was simply “bringing in help from people who knew what they were doing,� his attorney said. “When you are trying to develop the best facility possible, you bring in the expertise you can trust. I sure as hell would want to get people who demonstrated expertise,� Hughes said.

Auditors labeled eight events held at the Convention Center as “expensive uses� of corporation funds, including a $3,396 dinner in October, 1990, to express appreciation for the work of 46 former and current board members, and a $1,768 food and beverage tab for 80 people, including board members and Convention Center staff members at the home of former board president, Morgan Dene Oliver in March, 1991.

Board members also attended “think tank meetings� in August, 1990, that cost the center $1,006.

Hughes said Liegler can hardly be blamed for any expenses associated with events attended by board members, who gave tacit approval by their appearance.

Nor can he be held responsible for spending $13,535 for a Thanksgiving dinner for 500 employees, who were rushing to finish the Convention Center by the end of November, 1989, Hughes said. The Thanksgiving dinner was well publicized in local newspapers and should not have been a surprise to any city official, he said.

A company picnic in August, 1990, cost $3,577, an employee Christmas party in December, 1990, cost $200 and a retirement party for a city purchasing agent cost $646, auditors found.

“It’s easy for a numbers cruncher to say, ‘Hey, this outing cost $20 a person,’ � Hughes said. “But what about employee esprit de corps ? Nobody thinks about that.�

The 29-page audit included criticisms that Liegler hired consultants to interview employees without checking to see if the consultants were necessary, paid out money beyond the terms of the contracts, spent too much for out-of-town travel and in-house meals and did not follow proper accounting procedures for the center’s reserve fund.

In addition, Liegler was provided too much life insurance and should be required to reimburse the Convention Center $16,164, according to the audit. Hughes said the Convention Center corporation agreed to the extra coverage and should have to pay for it.

Patricia McQuater, the president of the corporation that runs the Convention Center, said the board of directors was disturbed by the disclosures.

“All the directors were surprised to note that some of these things had occurred,� said McQuater, a board member since July, 1989. “We felt there were policies in place that assured accountability to the board, but you live and learn.�