Maverick County Financial Advisor Complains of Non-Payment and Threatens Resignation
By: Jose G. Landa, Copyright 2015, Eagle Pass Business Journal, Inc.
Maverick County’s financial and governance issues continue to mount as County Financial Advisor Roberto G. Rodriguez of Southwestern Capital Markets Inc. tendered a letter, dated January 12, 2015, via email to Maverick County Judge David R. Saucedo and Commissioners Roberto Ruiz, Jerry Morales, Jose Luis Rosales, and Rosy Cantu complaining of County Auditor Fidencio Ortiz’s alleged interference with payment of his monthly retainer fees since May 2014 which “had the effect of encouraging our firm to resign as Financial Advisor…”
Maverick County General Counsel Poncho Nevarez had requested County Auditor Ortiz to hold payment of Rodriguez’s monthly retainer fees until the parties had an opportunity to clarify some payment issues.
Rodriguez’s letter of possible resignation has caught the attention of both Maverick County Commissioners Court and the Maverick County Public Facility Corporation Board of Directors which have scheduled public meetings on Thursday, January 29, 2015, calling for an agenda item to discuss and take possible action regarding the Financial Advisor position to both entities.
“Due to the County Auditor’s continued interference with payment of our monthly retainer fees since May 2014, our firm has been effectively fired from its role as the County’s financial advisor because – similar to the logic articulated in the District Judges Order on November 21, 2014 – such action has the direct effect of causing our firm to perform all its duties as the County’s financial advisor without compensation which we cannot agree to do and cannot be compelled to do so,” states Rodriguez in his January 12, 2015 letter.
Rodriguez also alleges that Maverick County has failed to pay Southwestern Capital Markets, Inc.’s monthly retainer fees for the first three months of fiscal year ending September 30, 2015, for the first five months of fiscal year 2014, and for 7 months of fiscal year ending September 30, 2012, even though they were recognized as accounts payables by the County Auditor’s office on 9/17/12 which was two days before Fidencio Ortiz was appointed as County Auditor according to the District Judge’s order.
Rodriguez alleges that “our firm’s extensive work in 2012 occurred during the time when the previous auditor left and we were assisting the County Judge, Treasurer, and Auditor’s Office on a daily basis to avoid a financial collapse.”
Rodriguez also alleges that “Mr. Ortiz has interrupted all of these payments based on the delusion that anything prior to his arrival including work, events and payments by the previous County Auditor’s office can be erased from history if he chooses to look at things in an irrational way.”
Rodriguez advises Judge Saucedo and Commissioners Court that “we (Southwestern Capital Markets, Inc.) has exhausted their patience hoping that the issues would be resolved and for them to be allowed to continue working for Maverick County. If the county on the other hand no longer wants our firms services we ask Commissioners Court (as the only party authorized to do so) to terminate our duties as financial advisor to the County by providing our firm with the required advance notice. If the county on the other hand still wants our services, then we ask that that this be resolved immediately because contrary to the auditors preference we will not accept being treated as an indentured servant as punishment for doing its job.”
Rodriguez’s contract with Maverick County is on a year to year basis basis and it is renewed on October 1, 2014 as scripted in the original contract, which also specifies that if the contract is not terminated by either party that it would automatically renew itself on the same anniversary date the original contract of October 1, 2008.
Rodriguez’s contract provides that termination can be done by either party by notification in writing of at least 30 days in advance of the applicable anniversary date.
One has to be careful for what one wishes because you just might get your wish granted.
Maverick County Commissioners Court has scheduled a special meeting for January 29, 2015 in which they will be discussing three agenda items related to the County’s Financial Advisor Southern Capital Markets, Inc. and Roberto G. Rodriguez’s termination or resignation.
Agenda Item No.32 of Commissioners Court meeting calls for a discussion and possible action on the termination of the contract between Maverick County and Southwestern Capital Markets, Inc. (Roberto G. Rodriguez) and to give the required 30 days notice as specified in the original contract between the parties.
Agenda Item No.33 calls for discussion and possible action to waive the procurement period for the hiring of a Financial Advisor due to time constraints for issues with Maverick County and the Detention Center.
Agenda Item No. 34 calls for discussion and possible action to hire a Financial Advisor for Maverick County.
These three agenda items clearly show that Maverick County may cut ties with Roberto G. Rodriguez and Southwestern Capital Markets, Inc. pursuant to his request in the January 12th letter.
Rodriguez and Southwestern Capital Markets, Inc. also signed a contract with the Maverick County Public Facility Corporation on May 20, 2014 for financial advisory services when Maverick County took over the management of the Maverick County Detention Center after The Geo Group, Inc. left as the operator of the detention center.
The Maverick County Public Facility Corporation Board of Directors will be holding a special meeting on Thursday, January, 29, 2015 at the Maverick County Courthouse at 6:00pm. One of the agenda items to be discussed is the termination of the financial advisory services of Southwestern Capital Markets, Inc. effective February, 29, 2015.
Southwestern Capital Markets, Inc. began its financial advisor services to Maverick County in 2008 and its monthly retainer fees are $5,000 per month. Southwestern Capital Markets, Inc. contract with the Maverick County Public Facility Corporation is unknown but is believed to be significantly higher than the $5,000 per month with Maverick County.
These two financial advisor contracts may result in possible litigation between Roberto R. Rodriguez and Southwestern Capital Markets, Inc. and Maverick County and Maverick County Public Facility Corporation unless the parties reach an amicable agreement.
Meanwhile, Maverick County and the Maverick County Public Facility Corporation are in negotiations with the bondholders, trustee, and other investors regarding the payment of the monthly installments owed on the Maverick County Detention Center, as well as the monthly installments which were granted forbearance to allow Maverick County to take over the operation of the Maverick County Detention Center. Both Maverick County and Maverick County Public Facility Corporation have an urgent need to utilize the services of a financial advisor to assist them reach an amicable agreement regarding the payment of their multi-million dollar debts. The plot thickens. Stay tuned.
