The firing of the finance director at the San Diego Association of Governments (SANDAG) has brought attention to ongoing business practices within the regional planning agency. The director, Lauren Warrem, claims she was terminated after raising concerns about a faulty technology system that wrongly charged drivers for a toll road they did not use. This termination comes after auditors previously highlighted deficiencies in SANDAG’s management. Jeff McDonald reported
The recent firing of a senior finance officer at the San Diego Association of Governments (SANDAG) has brought attention to ongoing business practices within the regional planning agency that have been previously criticized by auditors. The finance director, Lauren Warrem, was terminated without a stated reason, leading her to file a retaliation lawsuit. According to the lawsuit, Warrem was fired after raising concerns about an audit that revealed SANDAG had paid millions of dollars for technology that did not work and wrongly charged drivers for a toll road they did not use.
Warrem, who had worked at SANDAG for over a decade, returned to the agency this summer as the director of accounting and finance with the expectation of eventually becoming the chief financial officer. During a meeting, she voiced concerns about flawed technology used for tolls on a section of state Route 125 known as the South Bay Expressway. Warrem and others had previously identified bugs in the technology that resulted in incorrect toll charges. Despite her concerns, an outgoing accounting director suggested not alerting auditors to the inaccuracies. Warrem refused and was subsequently excluded from important discussions and meetings.
In a meeting about the problematic software, Warrem’s supervisor shouted her down when she questioned whether the billing inaccuracies could be resolved. A week later, she received a text message from her supervisor, Andre Douzdjian, directing her to a meeting where she was abruptly dismissed from her position.
Warrem’s lawsuit accuses SANDAG of wrongful termination and retaliation. The agency has declined to comment on the pending litigation. However, many of the business practices highlighted in the lawsuit have been previously identified by auditors in reports issued last year and this year. SANDAG managers defended their practices in response to some audit findings but agreed with others and stated they were working to address the problems.
The auditors found deficiencies in SANDAG’s contracting and oversight practices, particularly in relation to vendors ETAN Tolling Technology and HNTB support consultancy. Despite knowing that the tolling system they provided was flawed, SANDAG continued to pay these vendors millions of dollars and even extended their contracts. SANDAG has now temporarily withheld payment from ETAN due to performance-related concerns.
The San Diego Association of Governments is a regional planning agency responsible for addressing transportation, air quality, and economic development in San Diego County. The agency’s current-year budget is $1.2 billion, making it one of the largest public agencies in the county. In response to the allegations raised in Warrem’s lawsuit, one board member has called for an independent review of the toll operations.
The auditors’ reports also highlighted other deficiencies in SANDAG’s contracting practices. They found missing or insufficient evaluation score sheets and bid notes, violations of federal standards and SANDAG policies. SANDAG also regularly failed to meet its own competitive bidding rules and issued sole-source contracts without proper justification. Additionally, the agency frequently extended task orders worth over $100,000 without informing the board.
These findings raise concerns about SANDAG’s business practices and the need for improved oversight and accountability within the agency. The ongoing litigation and calls for independent investigations indicate the seriousness of the issues at hand and the potential impact on the agency’s operations and reputation..