Maverick County Commissioners Court appoints new Board of Directors to Maverick County Public Facility Corporation

By:  Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.

The Maverick County Commissioners Court held a special meeting on Thursday, April 3, 2014, at the Commissioners Courtroom in the Maverick County Courthouse Annex Building, located at 500 Quarry Street, in Eagle Pass, Texas, approving new Board of Directors to the Maverick County Public Facility Corporation, which operates the Maverick County Detention Center.

Certified Public Accountant Milo Martinez of Martinez, Rosario LLP of San Antonio, Texas, advised Maverick County Commissioners Court during a March 24, 2014, Workshop of his 2012 Audit of the County’s Financial Statements that the Maverick County Public Facility Corporation’s corporate charter with the Texas Secretary of State was in non-compliance with the lack of filing annual Board of Directors and Registered Agent reports and they needed to be updated before having its corporate charter forfeited.  Martinez noted that the Maverick County Public Facility Corporation was incorporated in 2007 under the administration of former County Judge Jose A. Aranda, Jr. and its corporate Board of Directors and Registered Agent annual reports had not been filed since the original ones in 2007 when it had been incorporated.

The Maverick County Public Facility Corporation was incorporated by Maverick County Commissioners Court in 2007 as a separate non-profit corporation in order to create a legal entity to construct and operate the Maverick County Detention Center and to issue over $40 Million in Bonds for the construction of the over 625 bed prison facility.  Maverick County contracted with a private prison management company, The Geo Group, Inc., to operate the Maverick County Detention Center, since its opening but The Geo Group, Inc. withdrew from managing the prison facility on October 31, 2013 at 12 Midnight, forcing Maverick County to request the Maverick County Sheriff’s Department to take over management of the prison facility.  Maverick County Sheriff Tom Schmerber appointed Guillermo De Los Santos as the Warden of the Maverick County Detention Center.

Maverick County General Counsel Poncho Nevarez advised Commissioners Court that they needed to appoint a new Board of Directors and a Registered Agent of the Maverick County Public Facility Corporation for filing with the Texas Secretary of State Corporation Division to remain in compliance with state corporation law.

Commissioners Court made a motion and a second to appoint all current Commissioners, including Roberto Ruiz, Jerry Morales, Asalia Casares, and Jose Luis Rosales as Board of Directors, as well as County Judge David R. Saucedo, Maverick County Sheriff Tom Schmerber, and Maverick County Human Resources Director Jesus Sanchez.  After a brief discussion, Commissioners  Court unanimously approved the appointment of themselves plus County Judge Saucedo, Sheriff Schmerber, and Human Resources Director Sanchez to the Board of Directors of the Maverick County Public Facility Corporation. County Judge Saucedo was re-appointed to the Board of Directors as he was already a Board member since its founding in 2007 as a former County Commissioner of Precinct 3.  A total of seven Board of Directors serve on the Maverick County Public Facility Corporation’s Board of Directors.

Commissioners Court also approved to hold a Public Meeting of the Maverick County Public Facility Corporation Board of Directors on Monday, April 7, 2014, at 5 P.M. at the Commissioners Courtroom in the Maverick County Courthouse, located at 500 Quarry Street, in Eagle Pass.

A Notice of Public Meeting of the Maverick County Public Facility Corporation Board of Directors giving notice of a Board of Directors Meeting on Monday, April 7, 2014, at 5 P.M. at Commissioners Courtroom in the Maverick County Courthouse, located at 500 Quarry Street, in Eagle Pass, was posted on Friday, April 4th, including an Agenda of the following items: to discuss and take possible action regarding the ratification of the Maverick County Commissioners Court’s appointment of the new seven Board of Directors; election of Officers of the Maverick County Public Facility Corporation Board of Directors; authorization to retain professional firms to represent the Maverick County Public Facility Corporation’s interests and execute appropriate agreements and/or engagement letters for a General Counsel (Nevarez Law Group, P.C.) and Financial Advisor (Roberto Rodriguez of Southwestern Capital Markets, Inc.); authorization of General Counsel to review and address any administrative issues of the Corporation with the State; and authorization of General Counsel to work with the Financial Advisor on official correspondence from the Maverick County Public Facility Corporation with Bondholders and/or Trustees pertaining to the Bond payments.

Currently, there are Bond payments due to the $42 Million Bondholders by Maverick County which need to be renegotiated, extended, and/or rescheduled to avoid default and/or foreclosure on the prison facility.

The Maverick County Public Facility Corporation Board of Directors meeting on Monday, April 7th at 5 P.M. at Commissioners Courtroom in the Maverick County Courthouse is open to the public.