Maverick County Hospital District Board’s Lease Offer rejected by County Judge
By: Jose G. Landa
Copyright 2013 Eagle Pass Business Journal, Inc.
The Maverick County Hospital District Board of Trustees held a special meeting on Tuesday, November 12, 2013, at 12 Noon at the Second Floor Conference Room of 3406 Bob Rogers Drive in Eagle Pass, Texas to discuss two agenda items, including the possible sale or lease of the Bibb Street property to the County of Maverick or any other party and the 2013-2014 Maverick County Hospital District Employees Retirement Plan with the Texas County & District Retirement System.
Agenda Item II-A was the discussion and possible action regarding the sale or lease of the Bibb Street property to the County of Maverick or any other third party. Maverick County Hospital District Chief Executive Officer Elcira Bares reported that she had retained the services of a professional real estate appraiser from Laredo, Texas to appraise the fair market value of the Bibb Street property owned by the local hospital district. Bares stated the real estate appraisal should be completed by this week. Bares also advised the MCHD Board of Trustees that she had ordered the “For Sale or Lease” sign to be placed on the property. Bares also advised the MCHD Board of Trustees that she had met with Maverick County Judge David Saucedo again to discuss the County’s interest in continuing to lease the Bibb Street property. Bares recommended to the MCHD Board of Trustees to consider continuing to lease the Bibb Street property to Maverick County on a month to month lease basis until a buyer or tenant for the property is found by the hospital district in order to save $600 a month in utilities and maintenance fees if the property were vacant. Even the MCHD General Counsel, Celeste Lira of Brin & Brin of San Antonio, Texas, opined that if the Board wanted to balance its budget and save money that a month-to-month lease with Maverick County would save the hospital district some money. CEO Bares told the MCHD Board of Trustees that County Judge David Saucedo was interested in leasing it from the hospital district.
Board of Trustee Humberto Duran stated that the hospital district’s Finance Committee, comprised of himself, Trustee Joaquin L. Rodrigues, CEO Elcira Bares, and Finance Director Terri Contreras, had met and come up with a discounted monthly lease proposal for Maverick County to only pay $500 per month rent plus the costs to maintain the property. Trustee Joaquin L. Rodriguez then asked County Judge David Saucedo, who was in attendance at the meeting together with County Commissioner Jerry Morales of Precinct 1, if Maverick County was willing to pay the sum of $500 per month plus the maintenance expenses of the Bibb Street property, and County Judge David Saucedo surprised everyone at the meeting by stating that the County was not willing to pay a $500 a month lease payment because three years ago he had decided that the County not pay any rent for its offices to outside landlords in order to save money. Trustee Rodriguez asked County Judge Saucedo what could the County pay the hospital district for rent, and County Judge David Saucedo answered to continue the current lease agreement of $1 per year plus maintenance costs. Board of Trustee Ricardo E. Calderon noted that the hospital district’s Finance Committee proposal of $500 per month plus expenses was very generous and only a measly sum compared to the fair market value. Trustee Calderon advised County Judge Saucedo that the hospital district had already been very generous to Maverick County by leasing it the Bibb Street property for $1 per year for the past six years and had granted the County a six-month lease extension from June 2013 to December 2013 to allow the County more time to come up with a possible solution to purchasing the property or leasing it. Trustee Duran advised County Judge David Saucedo that the Board was trying to balance the hospital district’s budget after losing monies several years. Trustee Calderon noted that in real estate, it is important to have the real property immediately available for possession to a prospective buyer or lessee. In light of Maverick County’s position to not be able to offer any monthly rent, including the $500 per month proposal by the hospital district, Trustee Calderon made a motion to reaffirm the MCHD previous decision to place the Bibb Street property for sale or lease in the real estate market. Board Chairman Juan Manuel “Chuco” Farias called for a second to Trustee Calderon’s motion, but the motion failed for a lack of a second. However, the MCHD Board of Trustees had previously voted to place the Bibb Street property for sale or lease so the net effect was to continue with the process and allow Maverick County to vacate the leased premises by December 31, 2013.
Currently, the Maverick County Commissioner of Precinct 1, the Justice of the Peace for Precinct 1, the Wintergarden Women’s Shelter, and other non-profit organizations whom Maverick County had sub-leased space to occupy the Bibb Street property. These tenants will now have to vacate the Bibb Street property and find other suitable office space.
The Bibb Street property has 3,800 square feet. Currently, office space leases in Maverick County from $1 per square foot to $1.50 per square foot. If one multiplies the 3,800 square feet times the rates of $1 and $1.50 per square foot, the total fair market value monthly rent of the Bibb Street property is between $3,800 to $5,700. The MCHD’s $500 per month plus expenses proposal was indeed very generous to Maverick County. Trustee Calderon requested CEO Bares and General Counsel Celeste Lira to research the legal process for MCHD to be able to sell or lease the Bibb Street property according to state law.
Another agenda item discussed was II-B regarding the Maverick County Hospital District’s Employee Retirement Plan with the Texas County & District Retirement System for 2013-2014. MCHD CEO Elcira Bares recommended to the Board of Trustees to decrease or lower the employee benefits with their retirement system. Bares recommended that the MCHD decrease the employees retirement benefits from 7 percent to 6 percent and to decrease the MCHD’s contribution from 250 percent to 200 percent. Trustee Calderon asked Bares if she had met with the employees to discuss their retirement benefits and Bares replied that she did not meet with them because they were not going to be happy with her recommendation and as CEO she had the authority to make this recommendation to the Board. Trustee Rodriguez stated that when he was Mayor of the City of Eagle Pass, he would never consult with the employees when determining their retirement benefits. Trustee Calderon stated that the most important asset at the MCHD was its experienced professional and non-professional employees, including physicians, nurses, managers, and others. Calderon stated that employee compensation and benefits is always important for recruiting and retaining valuable and experienced employees. Calderon added that any reduction or decrease of employee compensation or benefits may cause the loss of valuable, experienced employees such as physicians and non-physicians and that in the long run it would be more costly to hire and train new employees without experience. Trustee Calderon asked Bares just how much money was she saving the MCHD by reducing the employees retirement benefits, and Bares replied $80,000. The MCHD Board of Trustees voted to reduce their employees retirement benefits as recommended by CEO Bares with Chairman Juan Manuel Farias, Vice-Chairman Rito Valdez, III, Trustee Humberto Duran, and Trustee Joaquin L. Rodriguez voting in favor, while Trustee Ricardo E. Calderon voted against.
